Redondo Beach City Council
November 12, 2024

206
H.7., File # 24-1806 Meeting Date: 11/12/2024
In accordance with State law pertaining to business improvement districts, the RVBID Advisory Board prepared its annual report and presented the report to City Council on November 5, 2024. The Report identifies improvements, activities, and associated costs proposed within the RVBID for Calendar Year 2025 (January 1, 2025 - December 31, 2025) and includes highlights and accomplishments to date for Calendar Year 2024. The Advisory Board recommends the method and basis for levying assessments be increased for Calendar Year 2025. The proposed assessments within the BID have remained unchanged since 2005, despite significant increases in inflation and increased costs associated with managing the parklet program in response to the COVID-19 pandemic.

The proposed assessment would be implemented as follows: Each business license holder would pay a base fee of $125, plus a fee of $34 per employee, per year for a maximum assessment of $1,400. This is an increase from the existing rate which includes a base fee of $100, plus a fee of $29 per employee, for a maximum assessment of $1,000 per year. Those licensees who are property owners, and are assessed on a per unit basis, would pay BID fees of $125, plus $34 per rental unit, per year for a maximum assessment of $1,400. This is an increase from the existing rate which includes a base fee of $100, plus a fee of $29 per rental unit, for a maximum assessment of $1,000 per year. As examples, a licensee with 10 employees would pay a total annual assessment of $465, and a licensee with no employees would pay a total annual assessment of $125. A licensed property owner with four rental units would pay an annual assessment of $261. The assessment increase is expected to raise annual revenue from $79,000 to an estimated $106,000 in 2025.

On November 5, 2024, the proposed Ordinance to increase the assessment levy was approved for first reading and is now ready for second reading and adoption.

COORDINATION
The Riviera Village BID renewal is coordinated by the Waterfront and Economic Development Department, with assistance from the City Manager’s Office, City Attorney’s Office, and the Financial Services Department. The Financial Services Department provides assistance with the BID assessment, processing applicable assessments, and the receipt of payments.

FISCAL IMPACT
The proposed assessment increase is expected to raise annual BID revenue from $79,000 to an estimated $106,000 in 2025. The BID uses these funds to enhance spaces in the public right-of-way and provides supplemental services in common areas that would otherwise fall to the City to maintain. BID assessments are restricted for use exclusively by the BID and must be reported to the City Council annually. It is anticipated that the BID’s annual activities encourage activity and retail growth in the area and result in additional sales tax revenue for the City.

APPROVED BY:

Mike Witzansky, City Manager

ATTACHMENTS
· Ord - No 3284-24 to Increase the Assessment Amount Levied Against Businesses within the Riviera Village Business Improvement District

207
ORDINANCE NO. 3284-24
AMEND EXHIBIT B TO ORDINANCE NO. 2922-03 TO INCREASE THE ASSESSMENT LEVIED AGAINST

BUSINESSES WITHIN THE RIVIERA VILLAGE BUSINESS IMPROVEMENT DISTRICT PAGE NO. #1
ORDINANCE NO. 3284-24

AN ORDINANCE OF THE CITY OF REDONDO BEACH,

CALIFORNIA, AMENDING REDONDO BEACH ORDINANCE
NO. 2922-03 TO INCREASE THE ASSESSMENT AMOUNT

LEVIED AGAINST BUSINESSES WITHIN THE RIVIERA

VILLAGE BUSINESS IMPROVEMENT DISTRICT
WHEREAS, the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code Sections 36500 et seq. (the “Act”), authorizes the City Council of the City of Redondo Beach to establish a business improvement district and to levy an assessment against businesses within such business improvement district which is in addition to any assessments, fees, charges, or taxes imposed by the City; and
WHEREAS, on December 2, 2003 through Ordinance No. 2922-03, the City Council established the Riviera Village Business Improvement District (“District”); and WHEREAS, the City Council approved the annual assessments to be levied against all non-exempt businesses within the District to pay for all the activities and improvements to be provided to the businesses within the District; and
WHEREAS, Exhibit B attached to Ordinance No. 2922-03 set forth the method and basis of levying the assessment; and
WHEREAS, the City Council desires to increase the assessment amount levied against the businesses in the District; and
WHEREAS, the City Council determined that the businesses and the property within the Riviera Village Business Improvement District will be benefited by the activities and improvements to be funded by the assessments. The goal of such improvements and activities is to enhance the area image, prevent economic and physical deterioration, promote vitality of the District and draw more consumers to the District who will patronize District businesses.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. RECITALS. The above recitals are true and correct, and are incorporated herein by this reference as if set forth in full.

SECTION 2. INTENT. That the City Council hereby declares its intention, in addition to any assessments, fees, charges or taxes imposed by the City, to levy and collect an increased assessment against businesses within the District for Fiscal Year 2025 (January 1, 2025 to December 31, 2025) and annually thereafter.
208
ORDINANCE NO. 3284-24
AMEND EXHIBIT B TO ORDINANCE NO. 2922-03 TO INCREASE THE ASSESSMENT LEVIED AGAINST

BUSINESSES WITHIN THE RIVIERA VILLAGE BUSINESS IMPROVEMENT DISTRICT PAGE NO. #2
SECTION 3. AMENDMENT. Exhibit B, entitled “Assessment Formula (Method and Basis of Assessment)” which is attached to Ordinance No. 2922-03, entitled “An Ordinance of the City Council of the City of Redondo Beach, California, Establishing the Riviera Village Business Improvement District in the City of Redondo Beach and Levying an Assessment” is amended as follows: (NOTE: Additions are noted as underlined and deletions are noted in strikeout):
“The proposed method and basis of levying the assessment for funding the improvements and activities of the Riviera Village Business Improvement District shall be that all license holders (with the exception of non-profit organizations who elect not to participate in the BID) will annually be assessed a base of $100 $125 plus a fee of $29 $34 per employee per year to a maximum assessment of $1,000 $1,400 per year. Those licensees who are property owners and are assessed on their business license fees on a per unit basis shall pay BID assessments of $100 $125 plus $29 $34 per rental unit per year with a maximum assessment of $1,000 $1,400 per year. For purposes of this assessment the number of employees will be that reported on City Business Licenses.” SECTION 4. INCONSISTENT PROVISIONS. Any provisions of the Redondo Beach Municipal Code, or appendices thereto, or any other Ordinances of the City inconsistent herewith, to the extent of such inconsistencies and no further, are hereby repealed.

SECTION 5. SEVERANCE. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance. The City Council shall declare that it would have passed this ordinance and each section, subsection, sentence, clause, and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid or unconstitutional.

SECTION 6. This Ordinance shall be published in the official newspaper of said City, and same shall go into effect and be in full force and operation from and after thirty (30) days after its final passage and adoption.

PASSED, APPROVED AND ADOPTED this 12th day of November, 2024. ____________________________
James A. Light, Mayor
APPROVED AS TO FORM: ATTEST:
____________________________ ____________________________ Michael W. Webb, City Attorney Eleanor Manzano, CMC, City Clerk 209
ORDINANCE NO. 3284-24
AMEND EXHIBIT B TO ORDINANCE NO. 2922-03 TO INCREASE THE ASSESSMENT LEVIED AGAINST

BUSINESSES WITHIN THE RIVIERA VILLAGE BUSINESS IMPROVEMENT DISTRICT PAGE NO. #3

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss

CITY OF REDONDO BEACH )
I, Eleanor Manzano, City Clerk of the City of Redondo Beach, California, do hereby certify that Ordinance No. 3284-24 was introduced at a regular meeting of the City Council held on the 5 th
day of November, 2024, and approved and adopted by the City Council of the City of Redondo Beach, California, at a regular meeting of said City Council held on the 12th day of November , 2024, and thereafter signed and approved by the Mayor and attested by the City Clerk, and that said Ordinance was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_______________________
Eleanor Manzano, CMC
City Clerk
210
Administrative
Report
J.1., File # 24-1784 Meeting Date: 11/12/2024
TITLE
For eComments and Emails Received from the Public

211
Administrative
Report
N.1., File # 24-1808 Meeting Date: 11/12/2024
To: MAYOR AND CITY COUNCIL
From: ELIZABETH HAUSE, COMMUNITY SERVICES DIRECTOR
TITLE
DISCUSSION AND POSSIBLE ACTION ON THE CITY’S DRAFT CANNABIS REGULATORY

ORDINANCE

PROVIDE DIRECTION ON THE APPLICATION SCORING AND SELECTION PROCESS

SECTIONS OF THE ORDINANCE

EXECUTIVE SUMMARY
On September 6, 2022, the City Council adopted cannabis regulatory ordinances for both inland and coastal areas of Redondo Beach, permitting no more than two storefront commercial cannabis retailers to operate within the City. The Inland Ordinance became effective 30 days after adoption, while the Coastal Ordinance took effect upon certification by the California Coastal Commission on March 9, 2023.

At its December 19, 2023 meeting, the City Council directed staff to engage Tierra West Advisors, Inc. (TWA) to review the final cannabis regulatory ordinances, draft Commercial Cannabis Business (CCB) permitting guidelines, and assist with application processing. TWA’s recommended revisions to the City’s regulatory ordinances were presented at the May 14, 2024 and September 17, 2024 Council meetings, at which time the Council provided guidance on several key aspects of the Ordinance. At the September meeting, the Council specifically instructed staff to review the retail permit application scoring and evaluation criteria and determine which items should be evaluated on a pass/fail basis and which should be graded on a range. At the October 8, 2024 City Council meeting, the Council reviewed Sections 1 through 3, and Section 7 of the draft criteria, and provided direction to staff.

Attached to this report is an updated table of evaluation criteria, incorporating Council’s September 17 comments, as well as guidance provided by Council at the October 8 meeting. Following Council review and final direction, the revised language will be included in the draft Ordinance.

Since the October 8 meeting, City Council and staff have received communications from cannabis business operators. Included below is an analysis of their feedback.

This item offers the City Council an opportunity to review the draft retail permit application scoring and evaluation criteria, specifically Sections 4 through 6, and direct staff to make additional modifications, as desired.

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N.1., File # 24-1808 Meeting Date: 11/12/2024

BACKGROUND
The identification of cannabis regulations most appropriate for Redondo Beach began in 2018 with the appointment of a Cannabis Steering Committee. Following Planning Commission consideration and several City Council discussions on the topic, the current Cannabis Regulatory Ordinances were adopted on September 6, 2022. The Ordinances allow no more than two storefront commercial cannabis retailers to operate in the City.

At the December 19, 2023 City Council meeting, portions of the regulatory ordinances and the permit application process were identified as needing further review. At that time, the City Council provided direction to engage TWA to review the City’s existing cannabis regulatory Ordinances and assist with development and review of the cannabis permit application process.

At the May 14, 2024 and September 17, 2024 City Council meetings, TWA presented its recommended changes to the Ordinances, and the Council provided direction in several areas, including:
· Business Types Permitted by Ordinance
o The Ordinance will allow only retail storefront and delivery services, excluding all other types of cannabis businesses
· Business Relocation After Permit Issuance
o Business relocation will require City Council approval, contingent upon compliance with location and zoning requirements
· Permit Selection and Appeals Process
o Update current process so that applications are reviewed, and Permittees are selected by an application evaluation committee appointed by the Permit Administrator.

Applications will be evaluated on a scoring matrix composed of pass/fail criteria, as well as qualitative criteria scored on a well-defined range. Any appeal to the Committee’s selection of Permittee(s) will be made to the City Council · Permit Term Length
o A 5-year permit term will be established with the option to renew for two additional 2- year terms (done by the Permit Administrator); permits that are extended twice administratively may request an extension of up to five years by application to the City Council
· Community Benefit Plan in the Application Process
o A Community Benefit Plan will not be part of the application process, but applicants will be required to provide a history of Community Benefit Plan compliance in other cities in which they operate
· Retail Cannabis Sales Tax Rate
o The sales tax rate will be changed from 3% to either 4% or 5% · Site Selection Requirement
o Applicants must secure a property as part of the permit application process Following the September 17 discussion, staff has focused on refining the retail permit application scoring and evaluation criteria sections of the Ordinance. At the October 8, 2024 City Council meeting, the Council provided guidance to staff on Sections 1 through 3 and Section 7 of the drafted

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N.1., File # 24-1808 Meeting Date: 11/12/2024
criteria. This direction has been included in the attached updated evaluation criteria matrix.

Following the October 8 discussion, City Council and staff received communications from cannabis business operators providing feedback on the scoring criteria. Below are the primary themes gathered from the operators that Council may want to discuss when considering the proposed scoring criteria:

1. Revenue as a Performance Metric
Feedback: Several operators expressed concerns about using gross revenue as a metric for evaluating operators. The argument is that revenue can be heavily influenced by location dynamics (e.g., market saturation) and may not accurately reflect operational quality.

Possible Amendment: Council may consider adjusting the scoring for revenue metrics to instead more heavily score criteria related to operational sustainability and effective management practices. These criteria could include profitability, inventory management quality, or evidence of stable business practices.

Potential Drawbacks: By moving away from revenue metrics, the City may miss aspects of assessing an applicant's financial viability and business stability. Revenue often serves as a basic indicator of demand and operational success, and removing it entirely may open the door for less financially stable applicants.

Mitigation: Council may keep revenue as a performance metric, and, instead, expand the criteria to a) allow any business operations within the last 5 years, and b) to allow sales information from other operations the Owners are part of, rather than restricting it to a current location owned by the same set of partners applying for a permit in Redondo Beach.

2. Audited Financials Requirement
Feedback: Operators indicated that audited financials can be a costly and limiting requirement, especially for smaller operators, and may not be an accessible option for all applicants. They suggested using tax receipts or proof of tax compliance instead.

Possible Amendment: Allow applicants to provide tax receipts or other documentation showing tax compliance history in lieu of full audited financials. This could create a more accessible application process while still allowing applicants to demonstrate financial responsibility.

Potential Drawbacks: Tax receipts provide only limited insight into the applicant’s overall financial health, since they lack the comprehensive details typically found in audited financial statements, such as balance sheet information or cash flow stability.

Mitigation: Specify that applicants should provide additional financial documentation alongside tax receipts, such as profit and loss statements, sales reports, or a third-party review, to maintain a robust assessment of financial health.

3. Experience Requirements
Feedback: Operators suggested that limiting experience criteria to California operations could exclude capable operators with experience in other regulated markets. Some operators requested recognition for cannabis experience from other states.

Possible Amendment: Expand experience criteria to include regulated cannabis markets outside California, focusing on indicators of successful and compliant operations in these regions.

Potential Drawbacks: Expanding experience to include other states could allow operators unfamiliar with California’s specific regulatory environment to apply. Each state has unique requirements, and regulatory familiarity is crucial to compliance and risk management.

Mitigation: Include a requirement for applicants to demonstrate familiarity with CaliforniaPage 3 of 5 214
N.1., File # 24-1808 Meeting Date: 11/12/2024
Mitigation: Include a requirement for applicants to demonstrate familiarity with Californiaspecific cannabis regulations as part of their application. This could be done through a written explanation of how the applicant would address California’s compliance requirements based on their prior experience or by showing a documented track record of adapting to statespecific regulatory standards in their operations.

4. Insurance Requirements
Feedback: Operators suggested allowing new entities to submit a letter of intent from a licensed broker rather than requiring active insurance policies.

Possible Amendment: Expand insurance criteria to include a commitment letter from a licensed broker.

Potential Drawbacks: Accepting a letter of intent in place of active insurance coverage could risk having applicants who cannot secure full coverage upon obtaining the license, potentially exposing the business and local community to liability.

Mitigation: Require the letter of intent to specify coverage details and an anticipated effective date upon licensing. The City may also request a formal commitment from an insurance broker to ensure applicants have legitimate coverage plans. As a failsafe, applicants awarded a Permit may have their Permit rescinded if they are unable to obtain appropriate insurance.

This report offers the City Council an opportunity to review the draft retail permit application scoring and evaluation criteria, specifically Sections 4 through 6, consider feedback received from cannabis business operators, and identify and provide any desired revisions to the draft Ordinance. Once finalized and approved by Council, staff will work with the City Attorney’s Office to incorporate the criteria into the Ordinance using typical formatting.

COORDINATION
This agenda item was prepared by the Community Services Department in coordination with the City Attorney’s Office, City Manager’s Office, and the Fire, Police, Finance and Community Development Departments. The Ordinance was drafted by TWA, updated by staff, and will be prepared by the City Attorney’s Office in final form for Council consideration.

FISCAL IMPACT
It is estimated that each licensed site in Redondo Beach could provide $150,000 to $300,000 in additional annual General Fund cannabis business tax revenue, provided the City moves forward with the adoption of a regulatory ordinance and a tax rate of 3%. A 4% tax rate could provide $200,000 to $400,000 in General Fund revenue per site, and a 5% rate would provide approximately $250,000 to $500,000 in General Fund revenue. It is difficult to determine at this time what impact taxing cannabis delivery will have on General Fund revenue.

The fiscal impact to the City for CCB application processing and management is unknown at this time. A fee study to determine these costs will be completed soon. The application fees are expected to provide full City cost recovery for the processing of all license applications, including any related consulting services costs. Preliminary estimates indicate an application fee between $12,000 and $16,000 per applicant. An annual regulatory fee is anticipated to be within the same range for each CCB permittee doing business in the City. These estimates are expected to change depending on final staff resource allocation.

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APPROVED BY:

Mike Witzansky, City Manager

ATTACHMENTS
· Revised Evaluation Criteria (for comparative purpose, the Red Headings Represent the Existing Criteria and the Green Headings Illustrate the Proposed Updates) · Cannabis Business Operator Feedback/Communications
· September 17, 2024 - Draft Cannabis Regulatory Ordinance (with the previous retail permit application scoring and evaluation criteria section highlighted)

216
Section 1: Qualifications of the Applicant’s Owners and Managers 120 TOTAL
Criteria # Criteria Maximum
Points Scoring Method Notes from 10/8
Meeting
0: No evidence provided of cannabis retailer operations with taxable gross sales of at least $3,000,000/year.
20: Evidence of cannabis retailer operations with taxable gross sales of at least $3,000,000/year. 0: No compliance record provided or insufficient information to assess compliance. 4: Compliance record provided, but contains significant issues such as repeated or severe violations.

The response lacks clarity on corrective actions taken. 8: Compliance record provided, but includes several minor violations or past disciplinary actions, with some explanation of corrective measures. The response suggests improvement but does not fully reassure regulatory adherence. Lack of clarity on how applicant would prevent reoccurrence in a Redondo location.
12: Compliance record with isolated minor violations, all of which have been resolved appropriately.

The response demonstrates a willingness to correct issues and improve practices. Application clearly demonstrates safeguards from reoccurrence in Redondo location. 16: Strong compliance record with very few minor infractions, all of which have been swiftly and appropriately addressed. The response demonstrates a strong commitment to adhering to regulations. Application clearly demonstrates safeguards from infractions occurring in Redondo location.
20: Exemplary compliance record with no violations or disciplinary actions. The response provides a thorough and transparent history, demonstrating a consistent and proactive approach to regulatory adherence. Application clearly demonstrates controls to ensure exemplary performance in Redondo location.
0: No qualifications provided. No letter of commitment for manager included. 4: Minimal experience or qualifications in related fields, lacking detail and depth. The response does not demonstrate an understanding of the cannabis industry or relevant operations. 8: Some relevant experience noted, but the response lacks specific examples or clarity regarding roles and achievements. The qualifications do not provide a clear picture of capability in managing cannabis operations.
12: Adequate qualifications provided, covering most relevant areas. The response includes some specifics about experience but may lack depth in certain critical areas, making it difficult to fully assess readiness for managing operations.
16: Strong qualifications presented, showcasing significant experience in cannabis or related fields.

Only minor details may be missing, but overall, the response effectively conveys capability and preparedness for leadership roles.
20: Exceptional qualifications demonstrating extensive relevant experience in cannabis operations or related professional fields. The response is comprehensive, providing in-depth insights into past roles, achievements, and how these experiences will contribute to operational success. 0: No gross sales provided.
1: $3,000,000 gross sales.
2: $4,000,000 gross sales.
3: $5,000,000 gross sales.
4: $6,000,000 gross sales.
...
20: $22,000,000 gross sales or above.

OK, 3-1-1
OK, 4-0-1, ensure,
somewhere in our
criteria, that we
reference visibility into
their inventory using
track and trace
OK, 4-0-1
OK 3-1-1
Applicant must provide a record of compliance
with local, state, and federal regulations, including
any disciplinary actions or violations. For any
violations or disciplinary actions describe the
corrective actions and evidence of their
effectiveness. Demonstrate how applicant will
avoid these issues in this application.
20 Scoreable Criteria
Applicant must demonstrate cannabis retailer
operations and ownership in California, with
taxable gross sales of $3,000,000/year generated
by at least one retail, storefront location.
20 Applicant must provide a detailed description of
owners’ and managers’ qualifications, including
experience in cannabis operations or relevant
professional fields. Applicant must include Letter
of Commitment from proposed shop manager to
remain in the management role at the proposed
location for at least one year.
20 Applicant must provide the total taxable gross sales for their highest-grossing retail location in
California. Scale of taxable gross sales for this
single location will be scored progressively
($3,000,000 and above), with additional points
awarded for every $1 million demonstrated, up to
a maximum of 20 points.
20 Section 1: Qualifications of the Applicant’s Owners and Managers - Potential Scoring Criteria 1 2
3 4
217
Section 1: Qualifications of the Applicant’s Owners and Managers Criteria # Criteria Maximum
Points Scoring Method Notes from 10/8
Meeting
0: No information provided regarding local experience or community involvement. Insufficient evidence of compliance with Community Benefit Plans in other operating locations. Evidence supplied demonstrates lack of compliance with Community Benefits Plans in other operation locations. Independently obtained information by City of Redondo on Community Benefit Plan compliance in other operating locations demonstrates lack of compliance. 4: Minimal ties to the community; lacks evidence of fulfilling commitments made in other cities. The response does not convey a genuine connection or contribution to the local area. Evidence of compliance with Community Benefits Plans in other operating locations is unverifiable. 8: Some community engagement noted, but the response lacks specific examples or evidence of fulfilling prior commitments. The qualifications presented do not adequately demonstrate the applicant’s dedication to community involvement.
12: Moderate community involvement demonstrated, with some evidence of fulfillment of commitments made in other cities. The response covers relevant experiences but lacks detail in terms of specific contributions or impacts on the community. 16: Strong community ties established, with clear evidence of fulfilling all commitments from previous Community Benefit Plans. The response provides substantial insights into community engagement and demonstrates a proactive approach to local involvement. 20: Comprehensive description of local experience and community involvement, showcasing extensive connections and significant contributions to the local community. The response provides detailed examples of civic engagement and a proven track record of fulfilling commitments from previous Community Benefit Plans.
0: Gross revenue and gross profit not supplied in sufficient detail to analyze. Operating losses for first three years and/or in Year 3.
5: Submission is detailed enough to analyze. Show net positive profit in Year 2. 7: Submission demonstrates net operating profit in Year 1. 10: Submission is a balance sheet from an independent auditor demonstrating net profits in years 2 and 3.
15: Submission is a balance sheet from an independent auditor demonstrating net profits in years 1, 2 and 3.
17: Submission is a balance sheet from an independent auditor demonstrating net profits in years 1, 2 and 3 with average profit between 3% and 5%..
20: Submission is a balance sheet from an independent auditor demonstrating net profits in years 1, 2 and 3 with average profit greater than 5%.
0: No current D&B rating or DUNS Number. D&B Financial Strength Rating of less than 2A. Risk rating of less than 2.
5: D&B Financial Strength of 2A or more. Risk rating of 2 10: D&B Financial Strength of 3A or more. Risk rating of 1.

OK 4-0-1
Eliminate
OK 4-0-1
Applicant must provide a description of their local
experience and community involvement,
highlighting their connections to the local
community and any prior civic engagement. This
shall include evidence of how the applicant has
have fulfilled the commitments outlined in
Community Benefit Plans submitted to other cities.
20 Scoreable Criteria (cont'd)
5 Dun and Bradstreet rating. Applicant shall supply
DUNS number in application. 7 10
Applicant shall provide the total taxable gross sales
and net profit for their first three years of
operation at their highest revenue location.
6 20
218
Section 2: Plans, Renderings, and Overall Location
70 TOTAL POINTS
Criteria # Criteria Maximum
Points Scoring Method Notes from 10/8 Meeting
0: No premises diagram submitted.
10: Diagram provided in compliance with regulations.
4-0-1, change from Pass/Fail
to 0 or 10
Section 2: Plans, Renderings, and Overall Location - Potential Scoring Criteria 1 Pass/Fail Criteria
Applicant must provide a premises diagram in
accordance with Section 5006 of Division 42 of Title 16 of 10 219
Section 2: Plans, Renderings, and Overall Location
Criteria # Criteria Maximum
Points Scoring Method Notes from 10/8 Meeting
0: No site development plan provided.
2: Basic site information provided, but the plan lacks detail and clarity. Photos may be minimal or poorly presented, and key features such as landscaping or adjacent properties may not be fully considered.
4: General overview provided, but missing several key photographs and contextual details, leading to gaps in understanding how the site fits within its surroundings. 6: Adequate information provided, covering most elements. However, some details such as comprehensive landscaping or parking solutions are missing or unclear, and the quality of the photos or visual presentation may be subpar.
8: Detailed site development plan provided, with clear photos and well-documented elements. Minor clarifications may be needed in areas such as trash enclosures or adjacent property context. Overall quality is strong, but a few areas could be improved for thoroughness.
10: Comprehensive and high-quality site development plan that is visually well-presented.

All elements, including clear and context-rich photographs, parking areas, landscaping, and adjacent properties, are articulated thoroughly. The plan shows a deep understanding of site integration, spatial planning, and overall project vision. Fully complies with Chapter XX of Redondo Beach Municipal Code.
0: No floor plan provided.
2: Basic layout provided, but it lacks functionality, is unclear, or does not make effective use of the space. There may be significant inefficiencies in flow or design. 4: General layout provided, but it is inefficient, with poor use of available space. Key areas are not optimized, and the plan lacks creative solutions for maximizing usability. 6: Adequate layout with most key features included, but minor details are missing or certain areas feel underutilized. The design is functional but lacks innovative or creative elements.
8: Well-designed floor plan that effectively meets usability requirements, showing strong consideration of space and flow. Minor improvements in efficiency or creative design elements may be possible, but the overall layout is effective. 10: Exceptional floor plan that maximizes the usability of every area, incorporating creativity and efficiency. The design reflects innovative use of space, promotes smooth operational flow, and enhances both functionality and aesthetics. No significant improvements are needed. Fully complies with Chapter XX of Redondo Beach Municipal Code.
0: No elevations provided.
2: Basic elevations provided with little detail. The proposed improvements lack clarity, depth, and attention to the quality of materials or finishes. 4: General overview of proposed improvements provided, but missing several key elements such as detailed materials, finishes, or architectural enhancements. The design lacks aesthetic depth and visual appeal.
6: Adequate elevations with most features covered. The design demonstrates some attention to materials and finishes, though there are gaps in detail or quality. The aesthetic appeal is present but lacks sophistication.
8: Detailed elevations provided with clear attention to materials, finishes, and overall design. Some minor clarifications may be needed, but the plan presents a strong visual and functional improvement. The aesthetic choices enhance the building significantly. 10: Comprehensive elevations showcasing all proposed improvements, with a focus on high-quality materials and finishes. The design reflects a well-considered aesthetic vision and demonstrates a clear commitment to architectural excellence both inside and outside the building. The improvements are visually striking and well-integrated. Fully complies with Chapter XX of Redondo Beach Municipal Code.
0: Conceptual landscape plan not provided.
3: Plan provided with necessary details. Does not comply with City landscaping requirements
5: Plan provided with necessary details. Fully complies with City landscaping requirements.
7: Plan provided with necessary details. Fully complies with City landscaping requirements. Landscaping avoids creating security issues. 10: Plan provided with necessary details. Fully complies with City landscaping requirements. Landscaping avoids creating security issues. Landscaping significantly contributes to overall attractiveness of premises. Fully complies with Chapter XX of Redondo Beach Municipal Code. If landscape plan is unfeasible due to property limitations, applicant will automatically receive a score of 10. 4-0-1, move "complies with
Chapter XX of RBMC" to
highest score, remove it
from Criteria column.

Applicants with properties
without landscape options
or ability will be given a
score of 10.
2 3
4 4-0-1, move "complies with
Chapter XX of RBMC" to
highest score, remove it
from Criteria column.
4-0-1, move "complies with
Chapter XX of RBMC" to
highest score, remove it
from Criteria column.
4-0-1, move "complies with
Chapter XX of RBMC" to
highest score, remove it
from Criteria column.

Applicant must provide quality building elevations that demonstrate aesthetic improvements, including highquality materials and finishes both inside and outside the building.
10 Applicant must provide a detailed site development plan that includes exterior photographs of existing structures, existing parking areas, landscaping, trash enclosures,
signage, and adjacent properties for context.
10 Applicant must provide a well-designed floor plan that maximizes the usability of the space and incorporates
creative, efficient layouts.
10 Scoreable Criteria
5 Applicant must provide a conceptual landscape plan,
including the percentage of landscaping in the parking
lot, setback areas, and details on tree size and species. 10 220
Section 2: Plans, Renderings, and Overall Location
Criteria # Criteria Maximum
Points Scoring Method Notes from 10/8 Meeting
0: Renderings not provided.
2: Basic renderings provided with little detail. The proposed improvements lack clarity, depth, and attention to the quality of materials or finishes. 4: General renderings provided, but missing several key elements such as detailed materials, finishes, or architectural enhancements. The design lacks aesthetic depth and visual appeal.
6: Adequate renderings with most features covered. The design demonstrates some attention to materials and finishes, though there are gaps in detail or quality. The aesthetic appeal is present but lacks sophistication.
8: Detailed renderings provided with clear attention to materials, finishes, and overall design. Some minor clarifications may be needed, but the plan presents a strong visual and functional improvement. The aesthetic choices enhance the building significantly. 10: Comprehensive renderings showcasing all proposed improvements, with a focus on high-quality materials and finishes. The design reflects a well-considered aesthetic vision and demonstrates a clear commitment to architectural excellence. The improvements are visually striking and well-integrated. Fully complies with Chapter XX of Redondo Beach Municipal Code.
0: Traffic/transportation analysis not provided. No transportation procedures provided. 2: Traffic analysis lacks sufficient information to assess traffic impacts, capacity, safety, and delivery. Basic transportation information provided, lacking detail on logistics and compliance with local regulations.
4: Traffic analysis fails to accommodate/address capacity, mitigate safety and traffic impacts, and/or delivery impacts on traffic and surrounding properties. General overview provided but missing key procedures related to delivery scheduling and route planning to minimize disruption.
6: Traffic analysis is complete and demonstrates attempts to address capacity, traffic flow, safety, traffic impacts due to volume and vehicular ingress/egress, and details delivery to minimize traffic and noise impacts on surrounding properties. Adequate procedures with most key elements covered; however, minor details missing on potential disruptions and mitigation strategies.
8: Traffic analysis is complete, accommodates volume, includes safe vehicular ingress and egress, includes a solid delivery solution that minimizes traffic and noise impacts on surrounding properties, and mitigates traffic impacts to the extent practical for the site as determined by assigned Public Works evaluators. Detailed procedures provided but minor clarification needed on compliance with neighborhood compatibility and fire lane regulations.
10: Traffic analysis is complete, accommodates peak volume, includes safe vehicular ingress and egress, includes a solid delivery solution that minimizes traffic and noise impacts on surrounding properties, and mitigates all traffic impacts. Comprehensive transportation procedures with all elements clearly articulated; ensures minimal disruption to traffic flow and alignment with community standards, showing foresight in operational planning. Fully complies with Chapter XX of Redondo Beach Municipal Code. 4-0-1, move "complies with
Chapter XX of RBMC" to
highest score, remove it
from Criteria column.
3-1-1, move "complies with
Chapter XX of RBMC" to
highest score, remove it
from Criteria column. Fold
in transportation criteria
from Section 3.
7 Applicant must provide a traffic/transportation analysis that addresses ingress, egress, and delivery of products to the store. Applicant must provide a detailed
description of transportation, loading and unloading,
distribution, and delivery procedures. This should
include plans to ensure that delivery operations do not disrupt traffic flow, align with the neighborhood
compatibility plan, and do not obstruct fire lanes.
10 6
Applicant must provide colored interior and exterior
renderings, including existing and/or proposed
improvements.
10 Scoreable Criteria (cont'd)
221
Section 3: Business and Operations Plan
100 TOTAL POINTS
Criteria # Criteria Maximum
Points Scoring Method Notes from 10/8 Meeting
0: No financial statements provided.
10: Financial statements provided.
0: No product description provided.
5: Product description provided.
0: Information not provided.
10: Information provided.

Section 3: Business and Operations Plan - Potential Scoring Criteria 1 Applicant must provide a description of the
type of products to be sold and the
estimated quantity and value of product(s)
to be sold.
5 Applicant must provide audited financial
statements for at least three (3) years of
operation.
10 Pass/Fail Criteria
3 Applicant must provide financial
projections, including costs of products and
operations, other business expenses,
expected profits and projected city
revenues based on the description of type
and quantity of products to be sold.
10 2
3-1-1, change from
Pass/Fail to 0 or 10
3-1-1, change from
Pass/Fail to 0 or 5
4-0-1, change from
Pass/Fail to 0 or 10
222
Section 3: Business and Operations Plan
Criteria # Criteria Maximum
Points Scoring Method Notes from 10/8 Meeting
0: No description provided.
1: Basic information provided but lacks detail about total square footage and specific proposed uses, making it difficult to gauge feasibility.
2: General description with limited estimates and some proposed uses mentioned but insufficient for understanding overall functionality.
3: Adequate description with most estimates provided; some detail on proposed uses but lacks clarity on space utilization for operations.
4: Detailed description with all estimates provided; clearly articulates proposed uses and demonstrates understanding of spatial needs, though may require minor clarifications. 5: Comprehensive description with all details and estimates clearly articulated; demonstrates a thorough understanding of how each area contributes to overall operations and efficiency, including potential future needs.
0: No budget provided.
1: Budget provided but lacks detail; essential categories missing and unclear assumptions limit viability assessment.
2: Basic budget outline present but several key categories are absent; vague assumptions affect overall reliability.
3: Adequate budget that covers most categories; minor details missing; demonstrates awareness of costs but lacks thorough justification for estimates. 4: Detailed budget covering all major categories; shows solid understanding of financial requirements but may need minor clarifications.
5: Comprehensive budget with detailed costs for all operational aspects; provides clear justifications for each cost and showcases robust financial planning and understanding of sustainable business operations.
0: No description provided.
1: Basic information on sources provided but lacks detail on uses, making it hard to evaluate feasibility.
2: General description provided but missing key details on sources or uses; lack of clarity undermines confidence in financial planning.
3: Adequate description with most sources and uses covered; some details missing; demonstrates understanding of capital flow but may require additional justification. 4: Detailed description with clear sources and uses articulated; shows good understanding but minor clarification needed.
5: Comprehensive description detailing both sources and uses of capital; demonstrates sound financial planning and clarity on fund allocation and strategic alignment with business objectives; provides evidence of cmmitment from funding sources. 0: No inventory control procedures provided.
1: Basic procedures provided but lacking critical details on systems, processes, and how they will be implemented, making it difficult to assess the effectiveness of inventory control. 2: General overview provided, but significant elements are missing (e.g. point-of-sale systems).

Limited description of inventory management practices or compliance procedures is provided, affecting overall understanding.
3: Adequate procedures with most key elements covered, including some identification of systems. However, there are missing details, such as how inventory is received, stored, or audited, and lack of clarity on loss prevention measures or compliance with regulations. 4: Detailed procedures provided, including most required elements such as the type of POS and track and trace systems. However, minor clarifications are needed regarding integration, user training, or specific practices for inventory management and compliance. 5: Comprehensive inventory control procedures with all systems and software clearly identified. The description includes specific types of point-of-sale and track and trace software, how they integrate, training provided for users, and thorough inventory management practices.

Details on receiving procedures, storage methods, inventory audits, loss prevention measures, compliance with regulations, documentation processes, and feedback mechanisms are all articulated.
10 Applicant must provide a description of the
sources(s) of capital and use(s) of capital. 5
Applicant must provide a description of
inventory control procedures, including
identification of point-of-sale systems and
track and trace software.
5 Applicant must provide a budget for
construction, operation, maintenance,
compensation of employees, equipment
costs, utility costs, and other operating
costs.

Applicant must provide a written
description of the total square footage of
the facility with estimated square footage
of proposed uses.
4 5
5 6
7 Scoreable Criteria
OK, 4-0-1
OK, 4-0-1, increase to 10
points
OK, 4-0-1, highest scoring
applicants would include
evidence of commitment.

OK, 4-0-1, split this into two
Criteria: proposed
inventory control
procedures (5 points) and
evidence of prior,
successful inventory
control procedures (10
points)
223
Section 3: Business and Operations Plan
Criteria # Criteria Maximum
Points Scoring Method Notes from 10/8 Meeting
0: No prior experience with inventory control procedures is provided. 1: Minimal prior experience with inventory control, lacking a clear description of the applicant's role and effectiveness in using relevant systems.
2: General overview provided, but significant elements are missing (e.g. point-of-sale systems).

Limited description of inventory management practices or compliance procedures is provided, affecting overall understanding.
3: General overview of prior experience, but key details on systems used and outcomes, such as compliance and loss prevention, are missing or unclear. 4: Detailed description of prior experience with strong evidence of success using inventory control systems, including compliance with regulations and minimizing losses. Minor clarifications needed regarding the extent of the applicant's direct involvement. 5: Comprehensive and detailed description of significant prior experience with inventory control systems. Demonstrates a proven track record of effectively managing inventory, maintaining compliance with regulations, preventing losses, and achieving strong audit results.

Clear evidence of consistent and impactful outcomes is provided. 0: No marketing procedures provided.
1: Basic marketing information provided, but lacks detail on target audience, channels, and clear tactics. No indication of how minors will be excluded from marketing efforts. 2: General overview provided but missing key tactics for engagement and outreach effectiveness, including insufficient consideration of measures to avoid marketing to minors. 3: Adequate procedures with most key elements covered; however, minor details missing regarding implementation, measurement, and adaptability of strategies. Some details missing regarding how marketing avoids minors or lacks clarity on implementation. 4: Detailed marketing procedures provided, including responsible audience targeting and a clear commitment to avoiding marketing to minors. Some slight clarifications needed on the effectiveness of certain strategies or channels.
5: Comprehensive marketing procedures with all elements clearly articulated. Demonstrates a strategic and responsible approach to outreach, clearly outlining measures to prevent marketing to minors, alongside strong engagement, compliance with regulations, and plans for assessment and adjustment.
0: No tax payment management plan provided.
1: Basic information provided, lacking detail on processes, accountability, and tracking mechanisms.
2: General overview provided but missing key procedures for compliance and clarity on financial management.
3: Adequate plan with most elements covered; minor details missing on reporting, payment and transparency measures.
4: Detailed plan provided but minor clarification needed on implementation and compliance monitoring.
5: Comprehensive tax payment management plan with all details clearly articulated; ensures compliance with City regulations and demonstrates transparency and accountability in financial management.
0: No compliance plan provided.
1: Basic compliance information provided, lacking detail on processes, monitoring, and accountability.
2: General overview provided but missing specific compliance elements, timelines, and reporting obligations.
3: Adequate plan with most elements covered; however, minor details missing on updates, audits, and compliance checks.
4: Detailed plan provided but minor clarification needed on implementation strategies and compliance monitoring.
5: Comprehensive compliance plan with all details clearly articulated; ensures adherence to all applicable laws and regulations, demonstrating a proactive approach to compliance and risk management.
0: No schedule provided.
1: Schedule lacks sufficient detail to evaluate or is clearly unrealistic based on other submittals; or is unreasonably long time to occupancy and operations based on other submittals. 3: Schedule has some detail but not in all areas. Creates question as to whether the schedule is realistic and reasonable based on other submittals.
5: Schedule is detailed, realistic, and demonstrates occupancy and operations in a reasonable period of time based on amount of work to be done.
5 8
Applicant must demonstrate a plan for
maintaining ongoing compliance with all
applicable cannabis laws, including
licensing requirements and reporting
obligations.
5 Applicant must provide a description of
marketing procedures and tactics, with a
focus on ensuring responsible marketing
that avoids targeting minors. The
description should demonstrate clear
strategies for compliance with regulations
and responsible audience engagement.

Applicant must provide a description of
previous experience and effectiveness in
using inventory control procedures,
including the identification of point-of-sale
systems, track and trace software, and
other relevant systems. The description
should demonstrate successful past
outcomes, compliance with regulations,
and loss prevention measures.
10 9
10 Scoreable Criteria (cont'd)
5 Applicant must provide a description of the
City tax payment management
plan/procedures, ensuring no cash is
managed by the City.
10 11
12 Applicant must provide a schedule for
beginning operations, including a timeline
for construction completion.

OK, 4-0-1, update criteria to
ensure no marketing to
minors.

OK, 5-0, ensure this is
memorialized in permit.

OK, 5-0
OK, 5-0
This is the recommended
additional criteria, evidence
of prior, successful
inventory control
procedures (10 points)
224
Section 3: Business and Operations Plan
Criteria # Criteria Maximum
Points Scoring Method Notes from 10/8 Meeting
0: No description of hours and procedures provided.

1. Hours of operation provided, opening procedures too vague to evaluate.

2. Hours of operation not respectful of adjacent properties, and/or opening procedures pose security or operational risks.

3. Hours of operation respectful of adjacent uses; opening procedures lack detail or include fixable exposure to security and operational risks.
5: Hours of operation respectful of adjacent uses; and opening procedures address and demonstrate clear understanding of security and operational risks. 0: No cash handling procedures provided.
1: Basic information provided but in insufficient detail to fully evaluate.

2. Sufficient information provided for evaluation however procedures do not instill confidence that cash is properly recorded, any discrepancies are always detected and traceable or that cash is handled securely.

3. Procedures are in adequate detail and generally instill confidence that cash will be properly reported, that discrepancies are detected, and that cash is handled securely. Any procedural gaps are minor and easily fixable.
5: Detailed procedures provided and procedures instill confidence that cash will be properly reported, discrepancies are always detected and traceable, and that cash will be handled securely.
0: No description of operations provided.
1: Basic information provided but lacks detail to assess compliance with state and local laws and/or that the operations are consistent with industry back practices.

3. Operations description generally demonstrates compliance with state and local laws and with industry best practices. Any gaps are fixable.
5: Operations description is in sufficient detail that clearly demonstrates compliance with state and local laws and that the operations are consistent with industry best practices. 15 Applicant must provide a description of dayto-day operations that acknowledges both state and local laws and is consistent with
industry best practices.
5 13
Applicant must provide a description of
hours of operation and opening
procedures.
5 14 Applicant must provide a description of
cash handling procedures. 5
Scoreable Criteria (cont'd)
OK, 5-0
OK, 4-0-1
OK, 5-0
225
Section 4: Security Plan
150 TOTAL
Criteria # Item Points
1 Up to 30
2 Up to 20
3 Up to 50
4 Up to 25
5 Up to 25
Section 4: Security Plan - Current Scoring Criteria
A description of the services of on-site security guards to include the (1) number of security guards; (2) the hours security guards will be on-site; (3) locations where security will be positioned; and (4) security guard responsibilities.

A description of the intrusion alarm and monitoring system including the name and contact information for the monitoring company.

A description of access control, inventory control, cash handling, and other security procedures and security equipment demonstrating compliance with the security requirements under this Chapter 6xxx.

A premises security diagram.

The security plan shall be prepared by a professional security consultant. 226
Section 4: Security Plan
95 TOTAL
Criteria
#
Criteria Maximum
Points Scoring Method
0: Applicant did not provide a Security Plan or Security Plan was not prepared by a professional security consultant.
5: Applicant provided a Security Plan prepared by a professional security consultant.
0: Security plan did not provide a description of the panic button installation, locations are inadequate for security.
5: Security plan provided a description of the panic button installation, locations are adequate for security purposes..
0: Security plan did not provide evidence of sensor installation or locations are insufficient to detect entry and exit from all secure areas.
5: Security plan provided evidence of sensor installation, locations sufficient to detect entry and exit from all secure areas. 0: Security Plan did not describe how the business remains secure during a power outage.
5: Security Plan described how the business remains secure during a power outage.
0: Security Plan did not provide proof of insurance coverage. 5: Security Plan provided proof of compliant insurance coverage. 0: Security Plan did not provide a description of the security camera system or system does not meet requirements.
5: Security Plan provided a description of a security camera system that meets requirements.
0: Security Plan did not describe the battery backup system, or back up system insufficient.
5: Security Plan described a battery backup system that meets requirements.
0: Security Plan did not provide proof of a surveillance system failure notification system.
5: Security Plan provided proof of a surveillance system failure notification system.
0: Security Plan did not describe an adequate procedure for storing and retaining surveillance recordings.
5: Security Plan described an adequate procedure for storing and retaining surveillance recordings.
0: Security Plan did not provide a description of an adequate alarm system.
5: Security Plan provided a description of an adequate alarm system. 0: Security Plan did not provide proof of coverage by a licensed security guard.
5: Security Plan provided proof of coverage by a licensed security guard.
0: Security Plan did not describe an adequate record-keeping process for maintaining security-related records.
5: Security Plan described an adequate record-keeping process for maintaining security-related records.
10 11
12 5
6 7
8 9
Applicant must provide a Security Plan prepared by a
professional security consultant. 5
Applicant must provide a description of the Panic Button installation, showing where the panic buttons are located in the facility.
5 Applicant must describe how the business remains secure during a Power Outage, ensuring access doors are not solely controlled by electronic access panels.
5 Applicant must describe the procedure for storing and retaining Surveillance Recordings for a minimum of 90 days, in a format that ensures no alteration of the recorded image.
5 Section 4: Security Plan - Potential Scoring Criteria 1 2
3 4
Applicant must provide evidence of Sensor installation to detect entry and exit from all secure areas of the premises. 5 Pass/Fail Criteria
5 Applicant must describe the Battery Backup system for surveillance equipment, ensuring a minimum of four hours of backup recording in the event of a power outage.
5 Applicant must provide proof that the Surveillance System has a failure notification system that alerts the permittee and Police Department of any system interruptions.
5 Applicant must provide proof of General Liability Coverage with a minimum coverage of $2,000,000 and Workers'
Compensation Insurance with a minimum coverage of
$1,000,000.
5 Applicant must provide a description of the Alarm System, including monitoring company and schematic of security zones. 5 Applicant must demonstrate that at least one licensed Security Guard is present at all times the premises is open to the public or employees.
5 Applicant must describe the record-keeping process for maintaining records related to surveillance, alarm systems, and track-and-trace systems for inspection by law enforcement. 5 Applicant must provide a description of the Security Camera System, including camera placement and 24/7 monitoring
capabilities.
227
Section 4: Security Plan
Criteria
#
Criteria Maximum
Points Scoring Method
0: No information provided.
1: Information provided, but lacks detail or clear connection to cannabis industry standards. Consultant appears inexperienced, with no mention of prior relevant projects.
2: Basic qualifications and methodology provided, but lacks depth or evidence of having worked in high-risk industries. The plan uses generic approaches to security that could apply to any business. 3: Qualifications and methodology are clear, with some experience relevant to high-risk industries. However, the plan lacks tailored features that specifically address the unique needs of cannabis retailers. 4: Solid experience with high-risk industries, and methodologies that show thoughtful planning for cannabis retail operations, though lacking in some innovative features or specific best practices. 5: Extensive experience in cannabis or other high-risk industries.

Methodology is detailed, innovative, and incorporates best practices from similar operations. Demonstrates a proactive approach to challenges unique to cannabis retail (e.g., theft, compliance). 0: No information provided.
1: The description lacks reasoning, or no specific measures are provided for preventing unauthorized access. Controls appear generic or minimal. 2: Basic system described with limited access areas, but the design lacks layers of protection or advanced features.
3: A functional system is described, with appropriate access controls and limited access areas, though there are gaps in covering all potential vulnerabilities.
4: Strong system with multi-layer controls, clear access zones for personnel, and a reasonable approach to securing high-risk areas (e.g., vaults or product areas). Some consideration given to employee movement and customer flow.
5: Comprehensive system with automated controls, multi-layered protection, and proactive measures to address potential vulnerabilities.

The system integrates employee monitoring, customer access, and emergency protocols seamlessly.
0: No information provided.
1: Limited detail on the surveillance system, unclear coverage, or insufficient monitoring hours (less than 24/7). No mention of fps or low frame rate below 24 fps.
2: Basic camera coverage with gaps, standard HD quality (720p), but frame rate is below 24 fps. Limited effectiveness in capturing clear footage in all conditions.
3: Functional system with HD coverage (720p) at 24 fps in most areas, but there are blind spots or frame rate limitations in high-risk zones. 4: Extensive HD coverage (1080p) with 24 fps or higher, minimal gaps, providing clear image quality in all monitored areas.
5: Advanced system with full HD coverage (1080p or higher), at least 24 fps or higher with no blind spots. Ultra-HD (4K) available in key areas, with smart features like motion tracking, remote monitoring, and optimized performance in low-light conditions.

Security Plan must provide a description of the Surveillance System, including camera coverage, operational hours, and how the system meets 24/7 monitoring requirements. Highdefinition (HD) is defined as a minimum resolution of 720p or higher, with clear image quality in varying lighting conditions. 5 13
14 15
Security Plan must provide a description of the Security System Design, demonstrating how the system prevents unauthorized individuals from remaining on the premises and establishes limited access areas for authorized personnel only.
5 Scoreable Criteria
Applicant must provide a detailed description of the
consultant’s or architect’s qualifications and the methodologies used in preparing the Security Plan.
5 228
Section 4: Security Plan
0: No information provided.
1: The system is incompatible or requires extensive manual effort to extract footage for law enforcement use.
2: Limited compatibility, requiring manual extraction and some workarounds to provide footage to law enforcement.
3: Mostly compatible, but requires effort in sharing or integrating with City systems, including manual file transfers or significant delay in sharing.
4: Fully compatible with City systems, with streamlined sharing processes for law enforcement that allow easy access to footage as needed.
5: Real-time remote access for law enforcement, offering seamless integration with City systems and advanced features like automated alerts for incidents. The system is designed to be both easy to use and highly responsive to law enforcement needs.
0: No information provided.
1: Little to no information provided about the maintenance plan, with vague references to system upkeep.
2: Basic description of a maintenance plan, but no evidence of a structured process or regular logs for servicing the equipment. 3: A functional maintenance plan with regular upkeep and basic records provided, though the depth of record-keeping may be minimal. 4: Well-documented maintenance plan with regular servicing schedules and detailed logs. The plan includes preventive measures to avoid downtime or security risks.
5: Comprehensive preventive maintenance plan with detailed logs of all service activities, including advanced monitoring systems that notify administrators when maintenance is required. The plan ensures maximum operational reliability with minimal downtime.
0: No information provided.
1: Minimal information on the alarm system, with no clear monitoring strategy or backup plans in place.
2: Basic system described, covering primary entry points but leaving some vulnerabilities, with no advanced features like motion detection or zoning.
3: Good alarm system covering all critical access points, reliable but without advanced integration with other security systems. 4: High-quality alarm system with zoning for different areas of the business. Comprehensive monitoring and reliable response protocols in place.
5: Top-tier alarm system with advanced sensors, full integration with surveillance and security systems, and automatic notifications to law enforcement or monitoring services.
0: No information provided or guards don't meet minimum qualifications.
1: Guards have minimal training and licensing, with no evidence of cannabis-specific experience or experience in high-risk industries. 2: Basic guard training and licensing provided, but no specialized training relevant to cannabis businesses or high-risk industries. 3: Guards are well-trained with some relevant experience, though their qualifications may be more general rather than cannabis-focused. 4: Guards have extensive experience in high-risk industries and relevant training specific to the cannabis industry, demonstrating an ability to handle cannabis-specific risks.
5: Guards are highly trained specialists in cannabis security, with continuous education and advanced qualifications that include scenariobased training and proactive response protocols tailored to the unique risks of cannabis businesses.

Applicant must provide a description of the Alarm System, including alarm system type and alarm monitoring methods. 5 Applicant must provide description of Security Guard Training and Experience, including guard licensing, industry-specific training, and qualifications relevant to cannabis business security.
5 Applicant must provide details on Surveillance Footage Compatibility, including how the footage is accessible to law enforcement and compatible with City systems.
5 Applicant must describe the Surveillance Equipment
Maintenance Plan, including records of maintenance activity, service logs, and procedures for ensuring the system’s
operational reliability.
19 16
17 18
5 Scoreable Criteria (cont'd)
229
Section 5: Safety Plan
100 TOTAL
Criteria # Item Points
1 Up to 20
2 Up to 10
3 Up to 50
4 Up to 10
5 Up to 10
Section 5: Safety Plan - Current Scoring Criteria
The safety plan shall be prepared by a professional fire prevention and suppression consultant.

A premises safety diagram to include (1) a description/illustration of evacuation routes and (2) location of fire extinguishers and other fire suppression equipment.

A description of safety procedures, training for emergency situations, and safety equipment demonstrating compliance with the safety requirements under this Chapter 6xxx.

Identify all gases, pesticides, and chemicals to be used and their storage locations.

A description of the firm alarm and monitoring system including the name and contact information for the monitoring company.
230
Section 5: Safety Plan
35 TOTAL
Criteria
#
Criteria Maximum
Points Scoring Method
0: Applicant did not provide a description of access/egress that meets code requirements.
5: Applicant provided a complete description of access/egress that meets building and fire code requirements.
0: Applicant did not provide a premises safety diagram. 5: Applicant provided a complete premises safety diagram with required elements. 0: Applicant did not identify gases, pesticides, or chemicals and their storage locations.
5: Applicant provided a complete identification of all gases, pesticides, and chemicals, including their storage locations.
0: Applicant did not provide a description of the fire alarm and monitoring system. 5: Applicant provided a complete description of the fire alarm and monitoring system with contact information.
5 5 Applicant must provide a description of Access/Egress into the facility that meets building and fire code requirements. 3 4
Applicant must identify all gases, pesticides, and chemicals to be used, along with their storage locations. 5
Applicant must provide a description of the fire alarm and monitoring system, including the name and contact information for the monitoring company.

Section 5: Safety Plan - Potential Scoring Criteria
1 2
Applicant must provide a premises safety diagram that includes evacuation routes and locations of fire extinguishers and other fire suppression equipment.
5 Pass/Fail Criteria
231
Section 5: Safety Plan
Criteria
#
Criteria Maximum
Points Scoring Method
0: No information provided.
1: Information provided but lacks detail on either safety procedures or training. The applicant includes some mention of safety procedures or training, but the submission is vague and lacks substance. No direct reference is made to specific safety standards or codes like the CFC, Section 406. The response may only provide high-level concepts with no actionable plans or procedures.
2: Basic information provided, including safety procedures or training, but not both.

The applicant addresses either safety procedures or employee training but fails to address both areas sufficiently. There may be limited reference to safety requirements but with no concrete detail about implementation or compliance with the CFC. Missing key elements such as detailed descriptions of emergency responses or protocols for hazardous situations.
3: General overview provided of safety procedures and training, but lacks specific compliance details, including reference to Chapter 4 of the CFC. The applicant outlines both safety procedures and employee training but offers only a high-level view. Some elements of safety compliance are mentioned but lack specific references to Chapter 4 of the CFC or detailed safety requirements. Emergency response procedures may be described in broad terms without specific steps or training schedules.
4: Detailed information provided on procedures and training, referencing Chapter 4 of the CFC, but missing minor elements of compliance. The applicant provides detailed safety procedures and employee training protocols, making specific reference to Chapter 4 of the California Fire Code (CFC), Section 406. The information is mostly complete, covering essential elements of emergency procedures and safety compliance. Minor areas may be incomplete or lack depth, such as missing updates on safety equipment or partial training timelines, but overall compliance is largely demonstrated.
5: Comprehensive information provided, including thorough details on safety procedures, training, compliance with Chapter 4 of the CFC, and response procedures in emergency situations. The applicant submits a fully developed and thorough plan addressing all aspects of safety, including, but not limited to 1) Clear, step-by-step safety procedures for various scenarios, 2)Complete employee training programs, 3) Explicit reference to compliance with Chapter 4 of the CFC, Section 406, and other relevant safety codes, 4) Demonstrated use of required safety equipment and technologies that comply with state requirements, 5) Detailed emergency response procedures tailored to potential risks at the dispensary, and 6) Continuous improvement processes to ensure ongoing compliance and readiness. 5 Applicant must provide a description of safety procedures, employee training for emergency situations, and safety equipment demonstrating compliance with safety requirements, including, but not limited to, Chapter 4 of the California Fire Code (CFC), Section 406, regarding Employee Training and Response Procedures. 5 Scoreable Criteria
232
Section 5: Safety Plan
0: No information provided.
1: Minimal details that make it difficult to assess confidence is the safe day-to-day operations of the business.
2: Processes ands procedures are mentioned but lack depth making it difficult to assess confidence in safe day-to-day operations of the business. 3: Adequate qualifications and methodologies described, but lacking specific examples or context, including educational background or certifications. 4: Detailed and effective processes and procedures provided; clear application of industry best practices evidenced; some minor elements could be improved or clarified. Overall, leads to confidence in the safe day-to-day operation of the business.
5: Comprehensive and detailed processes and procedures clearly described with clearly defined roles and responsibilities of onsite staff. Clearly integrates specific industry experience and best practices. Leads to high confidence in the safe day-today operation of the business. 0: No information provided.
1: Author's qualifications submitted, but it is unclear if author meets requirements. 3: Author is clearly qualified, but no apparent experience with cannabis dispensaries. 5: Author is clearly qualified and has demonstrated experience with cannabis dispensaries, operations, and unique safety risks and concerns. 7 Credentials of Safety Plan author: professional fire prevention and suppression consultant or architect required. 5
Scoreable Criteria (cont'd)
6 Applicant must provide a detailed description of the processes, procedures, and practices included in the Safety Plan. The comprehensive Safety Plan will include, but is not limited to, the following:
1) A systematic assessment of risks associated with the specific cannabis retail environment and processes and procedures to mitigate those risks.
2) Integration of relevant regulations and standards, including local, state, and federal guidelines as well as industry best practices. 3) Development of clear procedures for emergency response and safety training.
4) Continuous improvement processes that would update the Safety Plan based on new information or incidents.
5 233
Section 6: Neighborhood Compatibility Plan
150 TOTAL
Criteria # Item Points
1 Up to 75
2 Up to 25
3 Up to 25
4 Up to 25 A description of efforts at sustainability/environmental impact mitigation.

A description of a waste management plan that includes waste disposal locations within the proposed premises and the applicant’s security measures and methods of rendering waste unusable and unrecognizable.

A description of odor mitigation practices to include: (1) identifying potential sources of odor; (2) a description of odor control devices and techniques employed to ensure that odors from cannabis are not detectable beyond the permitted premises; and (3) all proposed staff odor training and system maintenance.

A “Good Neighbor Policy” that (1) includes policies and measures in place to protect adjacent uses from any potential impacts (e.g., noise, light, odor, traffic, etc.) related to the proposed cannabis retailer, including addressing parking and traffic impacts and (2) describes how the cannabis retailer and its operating characteristics will be proactively managed so the business is not detrimental to the public health, safety, convenience, or welfare of persons residing, working, visiting, or recreating in the surrounding area and will not result in the creation of a nuisance.

Section 6: Neighborhood Compatibility Plan - Current Scoring 234
Section 6: Neighborhood Compatibility Plan
45 TOTAL
Criteria # Criteria Maximum
Points Scoring Method
0: The applicant did not provide an odor mitigation description. 5: The applicant provided a description of odor mitigation practices. 0: The applicant did not provide a waste management plan. 5: The applicant provided a waste management plan.
0: The applicant did not provide a description of sustainability efforts. 5: The applicant provided a description of sustainability efforts.

Applicant must describe efforts at
sustainability/environmental impact mitigation. 5
Section 6: Neighborhood Compatibility Plan - Potential Scoring Criteria 1 2
3 Pass/Fail Criteria
Applicant must provide a description of odor mitigation practices, including identifying potential sources of 5 Applicant must provide a waste management plan,
detailing waste disposal locations and methods to 5
235
Section 6: Neighborhood Compatibility Plan
Criteria # Criteria Maximum
Points Scoring Method
0: No information provided on Community Engagement.
2: Basic information provided, with minimal engagement strategies mentioned, lacking clarity and depth.
4: General description of Community Engagement, mentioning some strategies but lacking specific details on execution and impact.
6: Adequate information on Community Engagement strategies, demonstrating some understanding of community needs, but missing details on responsiveness and follow-up actions.
8: Detailed information on Community Engagement strategies, including multiple methods of engagement, response plans to community concerns, and a commitment to regular updates, but missing some minor elements or specifics. 10: Comprehensive information provided, demonstrating a proactive approach to community engagement with clear, actionable plans, detailed methods of engagement, and a well-defined feedback loop to ensure responsiveness to community concerns.
0: No information provided on Traffic Management.
2: Basic information provided, with vague references to traffic management, lacking any specific strategies.
4: General description of Traffic Management, including some strategies for customer flow and parking, but missing comprehensive measures for congestion reduction and specifics on implementation.
6: Adequate information on Traffic Management, presenting a coherent plan for customer flow and parking solutions, but lacking details on effectiveness, congestion mitigation strategies, and potential impacts on the surrounding area. 8: Detailed information on Traffic Management, outlining clear strategies for customer flow, parking solutions, and congestion reduction, with some evidence of potential effectiveness but missing minor elements or full evaluation criteria. 10: Comprehensive information provided, including a thorough Traffic Management plan developed by a qualified traffic engineer, with specific, evidence-based strategies for optimizing customer flow, innovative parking solutions, and effective congestion reduction measures, along with metrics for evaluating success and community impact.
0: The applicant did not provide a Good Neighbor Policy that clearly addresses all requirements.
1: Good Neighbor Policy includes all required items, but includes significant gaps that lead to questions on whether business will generate substantive complaints from surrounding businesses and residential neighborhood. 5: Good Neighbor Policy is complete and thorough and leads to high confidence that the business will be maintained to minimize substantive concerns of abutting businesses and nearby residential neighborhood.
10: Good Neighbor Policy exceeds minimum requirements and leads to high confidence that the business will be maintained to minimize substantive concerns of abutting businesses and nearby residential neighborhood. 6 Applicant must provide a "Good Neighbor Policy" that
includes measures to protect adjacent uses from
potential impacts related to the cannabis retailer,
including but not limited to: facility, parking lot and landscaping cleanliness and upkeep; controlling noise
exterior to the facility; ensuring no loitering or on site product use; practices to ensure minors are not
attracted or served including by a surrogate; and
ensuring the exterior building is not gaudy and blends in surrounding community and is free from product
advertisements.
10 Scoreable Criteria
Applicant must provide a comprehensive description of
their Community Engagement strategies, including how
they plan to engage with the community and respond to
concerns.
4 10
5 Applicant must provide a detailed description of their Traffic Management plan, addressing customer flow,
parking solutions, and congestion reduction.
10 236
Section 7: Labor and Employment Plan
20 TOTAL
Criteria # Criteria Maximum
Points Scoring Method Notes from 10/8
Meeting
0: No organizational chart provided.
1: Overall organizational chart clearly meets
requirement. Operational Daily/shift organization
missing or unclear.
3: All organizational charts complete. Shows clear
chain of command during daily and shift operations.
5: All organizational charts complete. Shows robust
control of staff and operations throughout operating
hours.
0: No description of roles provided.
2: Description addresses required items. Allocation of
roles and responsibilities between owner and manager
unclear, overlap heavily, and/or includes obvious gaps. 5: Clear and thorough description differentiates
operational roles and authorities without significant
gaps or overlaps.
0: No description provided or description does not
clearly address all requirements.
1: Description addresses all required items but lacks
detail or is unclear in one or more of the required
areas.
3: Description clearly covers all requirements but
responses indicate correctable issues such as
understaffing on a shift, too junior a staffing mix,
unclear or inadequate description of roles,
responsibilities and authorities.
5:Description clearly addresses all requirements and
leads to high confidence in daily operations and
compliance with all permit requirements and local and
state laws.
0: No description provided.
1: Description addresses all required items.
3: Description clearly describes how the applicant will prioritize local hires and/or that the applicant utilizes and independent service for background checks.
5: Description clearly outlines robust processes that
ensure attraction and prioritization of local hires,
independent background checks and criteria for
avoiding candidates with a history of drug or legal
problems; and ensuring that employees remain free of
illicit drug and criminal activities.

OK, 4-0-1
OK, 4-0-1
OK, 4-0-1
OK to keep, split on
points allotted
2 Applicant must provide a description of the owner's and manager's roles in day-to-day operations and decisions. 5 5 Applicant must provide a description of the number of employees, title/position, and their respective
responsibilities.
3 4
Applicant must provide a description of hiring and
employment practices included any local hire policy and practices, background checks (if any), other processes of vetting potential employees.
5 Scorable Criteria
1 Applicant must provide an organizational chart showing owners, managers, and employees, including operational
daily/shift organization.
5 Section 7: Labor and Employment Plan - Scoring Criteria 237
Sweet Flower
10000 Culver Blvd.

Culver City, CA 90232
October 10, 2024
Redondo Beach City Council
415 Diamond Street
Redondo Beach, CA 90277
Setting the Standards for Cannabis Retail in Redondo Beach Dear Members of the Redondo Beach City Council:

Sweet Flower commends the City of Redondo Beach for establishing the City’s legal cannabis retail program and for the diligence of City staff and council members in pursuing an optimal process.

We understand the City is committed to a program and process that reflects Redondo Beach’s values of trust, transparency, and community well-being, and provides meaningful revenue generation for the City, creating opportunities for local employment, local business partnerships and local development.

Well-run legal cannabis retailers provide significant community benefits, deepen community engagement in the communities they serve, force out illegal or grey-market cannabis and hemp operators, and improve security, public safety, neighborhood awareness and quality of life in the localities in which they operate.

As a deeply involved and engaged owner, operator and developer in the Southern California legal cannabis retail industry since the advent of legal cannabis, I have witnessed and helped create these positive community impacts firsthand.

As CEO and owner of Sweet Flower, I am proud of the work that Sweet Flower has done in the communities we serve across California, the trust we have established as a partner with the cities, communities and regulators with whom we work daily, at both a state and local level, and of our reputation for operational excellence and deep community engagement. And I have personally attended and participated in multiple community events in Redondo Beach and several council hearings on this matter. I have also provided public comment on this topic on multiple occasions in the past and welcome the Mayor’s invitation to provide deeper feedback on the process today.

Sweet Flower has successfully navigated complex merit-based applications across California, in Pasadena, Culver City, Chico, and Fresno, in addition to directly owning and operating multiple retail licenses in the City of Los Angeles, without incident or complaint. Sweet Flower hires locally and we give back to our communities meaningfully. Since our inception, we have contributed over $300,000 to over two dozen local charities in the communities we serve, supporting causes related to under housing, food insecurity, and improving local quality of life, in addition to tens of millions of sales, excise and local tax dollars.

Having been successful in the most competitive, stringent and complex merit based processes in the state, and now being a valued partner to cities and regulators across the state, we are happy to share for your consideration some perspectives and recommendations on how best to build a merit-based application process to further the goals and objectives of the City of Redondo Beach.

We concur with Councilmember Loewenstein’s comment last Tuesday night – “Past is Prologue.” 238
2 To achieve these goals, we believe it is critical to evaluate applicants based on their track record of actual ownership and hands-on operations (and not aspirations) in other cities where they operate, on demonstrable accountability, both corporate and personal, and on their ability to uphold the City’s values and operate as responsible, engaged members of the community.

Accordingly, the recommendations below are split into three sections: (1) a restatement of key values that we believe the City of Redondo Beach should look towards, (2) a detailed proposed scoring matrix, including proposed weightings, and (3) a section of other considerations and comments, for review.

This is provided for your consideration with one objective in mind - to ensure that selected operators demonstrate the highest standards of integrity, operational excellence, compliance, financial responsibility, community alignment and neighborhood compatibility to the City and broader community of Redondo Beach.

Section 1 - Key Values Redondo Beach Should Prioritize:

1. Trust and Transparency in Operations
The cannabis industry is one of the most highly regulated industry sectors in California. Operators who prioritize trust and transparency are more likely to conduct business in a manner that upholds public confidence and promotes safe, compliant operations. Trust and transparency manifest through open communication with local and state regulators, accurate record-keeping, adherence to all applicable regulations, and honest interactions with the community.

Why This Matters:

Trustworthy operators minimize the risk of violations, support public safety, and build positive relationships with the community and regulatory authorities. A transparent business is better equipped to address concerns and operate in a manner that is consistent with the expectations of Redondo Beach residents and stakeholders.

What to Look For:
• A proven track record of compliance with local and state regulations. • Detailed and transparent operational plans that outline procedures for ensuring compliance, risk management, and ethical business practices.
• A history of proactive communication and engagement with regulators, demonstrating a commitment to operating openly and honestly.

2. Accountability at the Ownership Level
The ultimate responsibility for the business’s operations, compliance, and impact on the community rests with its individual Owners. When Owners are directly involved in the business, they can be held accountable for decisions, operations, and community relations. Accountability means having individuals at the ownership level who are responsible, engaged, and committed to ensuring the business’s success aligns with the community’s values and expectations. Legal cannabis retail is the type of business that requires active Owners who are hands-on, who live or work close to the business, and who are accountable to all the constituents they serve (neighbors, customers, city staff, and regulators); legal cannabis retail does not work well when Owners are passive, are geographically remote, or are not accountable or accessible.

Why This Matters:
239
3 Direct involvement from Owners reduces the likelihood of absentee management or passive investment strategies that can lead to non-compliance or unethical business practices. When Owners are actively engaged, they can respond swiftly to any issues, ensuring that the business remains a positive force in the community.

What to Look For:
• Owners who are named on the licenses they claim to hold and for the businesses they claim to be engaged in, and who are actively involved in the business and in day-to-day operations. • Ownership structures that are straightforward, clear, transparent and non-opaque, and reflect a commitment to long-term investment in the business.
• Owners with a history of positive engagement in their own business’s operations, regulatory adherence, and community involvement.
• Owners who are geographically proximate to the location, are personally committed to the success of the business, and have a track record of accountability.

3. A History of Strong and Compliant Operations
Compliance with regulations starts “at the top,” and is not just about avoiding penalties—it is a direct reflection of the Owners’ and the business’s commitment to operating ethically and responsibly. A strong compliance record indicates that the Owners and the business have the personal and institutional knowledge and systems in place to adhere to complex regulatory requirements, ensuring that they operate safely and within the bounds of the law.

Why This Matters:

A business with a demonstrated history of compliance reduces the likelihood of enforcement actions that could disrupt operations and negatively impact the community. Redondo Beach should prioritize applicants who have demonstrated their ability to operate under current legal frameworks, showing a consistent commitment to high standards and ethical practices.

What to Look For:
• A compliance record free of serious violations, infractions, or unresolved issues. • Evidence of corrective actions taken promptly in response to any compliance issues. • A commitment to maintaining high standards of compliance through regular training, participation in industry best practices, thorough and detailed Standard Operating Procedures and proactive risk management.

4. A Shared Commitment to the Community of Redondo Beach Cannabis businesses should not only comply with regulations but also actively contribute to the communities in which they operate. A shared commitment to the community means engaging with local residents and businesses, supporting local initiatives, and contributing to the social and economic fabric of the City of Redondo Beach. A positive presence in the community helps build trust, reduce stigma, and create a mutually beneficial relationship between the business and its neighbors.

Why This Matters:

A business that prioritizes community engagement is more likely to be viewed as a positive addition to the neighborhood, supporting local needs and addressing concerns proactively. This type of engagement fosters a sense of partnership between the business and the community, leading to a more harmonious relationship and reducing the risk of community opposition. 240
4 What to Look For:
• Active participation in local events, charitable contributions, and support for community programs.
• A well-developed Neighborhood Compatibility Plan that outlines how the business will engage with and support Redondo Beach residents and businesses. • A commitment to maintaining open communication and being responsive to community concerns and needs.
• A detailed Community Benefits Plan, demonstrating effective integration into the local community and awareness of the issues and concerns of that community. • A prior track record of “doing,” over aspirational statements or just “saying.” To that end, has the business followed through on its commitments to the communities it serves elsewhere, or were past commitments made with qualifiers? For example, when an operator pledges to give back a percentage of its sales to the communities it serves, was that pledge satisfied by actual dollars donated, or merely by “in kind” contributions of employee volunteer hours?

5. Effective Business Operations and Revenue Generation A cannabis business that incorporates trust, transparency, accountability, and community engagement is not just a good community partner—it is also a successful financial enterprise. Effective business operations and revenue generation are indicators that the business is well-managed, stable, and capable of contributing positively to the local economy. Financial success, when coupled with responsible business practices, supports long-term sustainability and provides economic benefits to the community.

Why This Matters:

Financially successful businesses are better able to contribute to the community, support their employees, and invest in compliance and operational excellence. Redondo Beach should select businesses that have a track record of operational success, the wherewithal to launch and sustain their business in Redondo Beach, and a well-defined plan for achieving sustained growth and profitability.

What to Look For:
• A history of operational success that complies with regulatory requirements. • Financial stability and resources to support long-term business operations and investments in community initiatives.
• A clear, well-developed business plan that prioritizes both profitability and community engagement.

Section 2. Proposed Scoring Rubric
We set out below a proposed scoring rubric enumerating ten specific areas of review and assessment for potential cannabis retail operators in the City of Redondo Beach.

We believe this is tailored to the specific values, goals and objectives of the program as expressed directly to us by the many Redondo Beach residents we have meet with in numerous community meetings we have held in the City, and by the City of Redondo Beach council in the public discussions we have participated in since deliberations on this matter commenced.

For ease, the total scoring matrix is 1000 points, and we have focused each section on what we believe are the most important aspects of each section for review; we have tried to avoid being prescriptive in each section, leaving room for executive judgement and administrative discretion. 241
5 Section 1: Owner Qualifications and Experience (150 points) Description:

The individual Owners of a cannabis business bear the primary responsibility for ensuring compliance, fostering community engagement, and overseeing operations. This section evaluates the Owner-level experience in California’s regulated cannabis market, the number of successfully managed licensed locations, and the compliance history and track record of the business under these Owners.

The emphasis is on Owner applicants with a proven record of compliance, hands-on operations, accountability, demonstrated success and an understanding of the unique regulatory landscape since January 1, 2018, with the inception of legal cannabis retail in California under Medicinal and Adult Use Cannabis Regulation and Safety Act (MAUCRSA)1.

Criteria for Scoring:

1. Qualifications of Owners
Points are awarded based on Owner-level qualifications, including experience in cannabis retail operations since January 1, 2018, and in launching new cannabis retail or general retail stores, or in relevant professional fields, such as general management and operations, finance, retail marketing, retail operations, business, strategy, law, compliance or human resources. Points awarded also consider professional qualifications, degrees, and, where relevant, awards and recognition at a community or industry level.

2. Prior Experience as an Owner in the Legal Cannabis Retail Industry (Post-2018) Points are awarded based on the total years of Owner-level experience in the legal cannabis industry since January 1, 2018 AND on the level of engagement and depth of experience demonstrated during those years, with extra points for active and hands-on engagement in retail operations, compliance and business. Experience prior to this date should be disregarded or discounted (under prior pseudo-regulatory schemes no longer relevant). Experience in other fields, such as cannabis distribution, cultivation or manufacturing should also be discounted (not directly applicable to cannabis retail). Experience as a non-Owner (i.e. consultant, advisor or lobbyist) is either irrelevant or discounted – depending on circumstances, may be relevant in Section 2 – Non-Owner Management (next), but this Section is focused on the proposed Owner’s experience as an Owner.

3. Number of Licensed Retail Locations Operated (Including Past and Present) Points are awarded for the total number of licensed retail cannabis locations currently owned and operated by the Owner in California. California retail licenses where a proposed Owner claims an interest or a level of involvement but is not listed as an Owner by the Department of Cannabis Control, or as a director or officer of the direct ownership entity of the license, should be disregarded. Again, experience as a non-Owner (i.e. consultant, advisor or lobbyist) is either irrelevant or discounted.

4. Compliance Record of the Owner
1 “Owner” is defined in the Ordinance as: "Owner" means any of the following:
(a) All persons identified as an "owner" on any permit, license, or other authorization issued by a state agency or local government which authorizes the persons to establish and operate the cannabis facility.
(b) Any person identified or required to be identified as an "owner" on an application filed with any state agency and any local government, wherein the application requests the privilege to operate the cannabis facility.
(c) An Owner is further defined as follows:
(1) A person who has any ownership interest in the corporate entity, partnership, or other business entity applying for a permit or a permittee, regardless of percentage of ownership; unless the interest is solely a security, lien, or encumbrance.
(2) The chief executive officer of a nonprofit or other entity. (3) A member of the board of directors of a nonprofit.
(4) An individual who will be participating in the direction, control, or management of the person applying for a permit. 242
6 Evaluation based on the demonstrated compliance history of the businesses that the Owner owns/operates across all currently and previously operated cannabis businesses, including the number and severity of any violations and the promptness of corrective actions.

5. Community Engagement and Contributions
Assessed based on the Owner’s involvement in past local community initiatives, participation in social equity programs and in the cannabis industry as a whole and contributions to community well-being across the Owner’s other legal cannabis retail businesses in other cities and communities.

6. Owner’s level of accountability and engagement
Assessed based on the Owner’s operational commitment to the business, and their accountability and responsibility to the business. Level of involvement to date in Redondo Beach, geographic proximity to the business, and commitment to involvement at an operational level going forward.

Section 2: Management Team and Non-Owner Experience (100 points) Description:

Established cannabis retailers will have a non-Owner management team that contribute significantly to the business’s success; the management team’s qualifications and experience play a critical role in executing the Owner’s vision and maintaining the operational integrity of the business. This section evaluates the professional background and expertise of key non-Owner managers, such as compliance officers, buyers, marketing heads, controllers and HR leads. A strong management team should have a mix of industry-specific experience, professional certifications, and a history of successfully managing cannabis retail and other highly regulated and complex operations.

Criteria for Scoring:

1. Relevant Industry Experience and Expertise
Points are awarded based on the years of experience in relevant roles, such as compliance management, buying, inventory management, marketing, or other key operational areas within the legal cannabis industry.

2. Track Record of Success in Current and Previous Roles Evaluation of the management team’s record in successfully running cannabis businesses or other regulated enterprises.

3. Professional Qualifications and Certifications
Consideration of professional certifications (e.g., compliance certification, security training, or business management credentials) that demonstrate the management team’s capability to run a compliant and effective cannabis business.

4. Involvement in Community and Local Engagement
Consideration of the management team’s involvement in the legal cannabis industry, community engagement, and support for local programs and businesses.

Section 3: Community Engagement and Community Benefits (100 points) Description:

Cannabis retail operators should be active participants in the local community, fostering positive relationships and supporting local initiatives. This section evaluates the applicant’s history of supporting local initiatives, engaging with Redondo Beach residents and businesses, and their proposed plans for ongoing community contributions. Special consideration is given to applicants who 243
7 demonstrate a deep understanding of neighborhood and community dynamics and a proactive approach to being a good neighbor.

Criteria for Scoring:

1. Engagement with Redondo Beach Residents and Businesses Evaluate the applicant’s history of working with local stakeholders, support for local events, and contributions to civic initiatives.

2. Community Benefit Plans
Assess the applicant’s proposed contributions to the local economy, such as job creation, charitable donations, and support for other local businesses.

3. Neighborhood Compatibility Plan
Consider how the applicant plans to integrate into the neighborhood, including measures to minimize disruptions and ensure a positive relationship with nearby residents and businesses.

Section 4: Labor Plan (50 points)
Description:

A robust labor plan reflects the applicant’s commitment to providing quality employment opportunities and maintaining positive labor relations. Applicants with strong commitments to labor relations, employee benefits and local hiring, demonstrated by collective bargaining agreements (CBAs) in place, or by local hiring preferences in other cities should be awarded additional points, as these agreements and preferences indicate a higher level of employee support than applicants without.

Criteria for Scoring:

1. Labor Relations
Evidence that the applicant has a labor peace agreement in place, as required by state law for its proposed business in the City of Redondo Beach with more than 10 employees.

Award extra points for applicants who have established CBAs with recognized unions, demonstrating a higher level of commitment to fair labor practices.

2. Employee Benefits and Training Programs
Evaluate the applicant’s approach to employee benefits, including health insurance, professional development opportunities, retention and promotion, and training programs.

3. Employee Support and Engagement
Consider how the applicant supports their employees, addresses workplace concerns, and maintains a positive and productive work environment.

4. Local Hiring/Social Plan
Points awarded for commitment to a local hiring preference in the City of Redondo Beach, and for retaining and promoting from within. Further, points to be awarded based on the commitment to hire from socially or economically disadvantaged areas, and to hire veterans, long-term unemployed, seniors and from other disadvantaged groups traditionally overlooked by other employers.

5. Employee Screening and Safety
Points awarded for employee screening, background checks, for policies aimed at maintaining a drug-free workplace, and a safe working environment for all employees in accordance with applicable laws.
244
8 Section 5: Operational Plan and Business Strategy (150 points) Description:

A comprehensive operational plan is critical for the smooth operation of any cannabis retail business.

This section evaluates the applicant’s proposed day-to-day operations, compliance strategy, and business sustainability planning. An effective operational plan should detail how the business will manage key areas such as staffing, inventory control, cash handling, access protocols, and customer service. The plan should also demonstrate the business’s capacity to achieve the plan, and adapt to changes in regulations and market conditions, ensuring long-term stability and success.

Criteria for Scoring:

1. Detailed Description of Day-to-Day Operations
Assess the clarity and comprehensiveness of the applicant’s proposed daily operations, including opening and closing procedures, staff management, security protocols, youth access prevention, check in and check out, and customer service protocols.

2. Compliance Strategy and Regulatory Adherence
Consider the applicant’s approach to maintaining compliance with local and state regulations, managing risk, and preventing non-compliance issues. Points awarded for product selection strategy reflecting knowledge of Redondo Beach market, inventory management, cash management and METRC compliance.

3. Business Integrity and Continuity
Evaluate the applicant’s plan for managing unforeseen challenges, adapting to regulatory changes, and ensuring business continuity. Points should be awarded for transparent banking and insurance practices (i.e. where the bank or insurer is aware they are working with a cannabis operation), and for having secure cash processes and non-cash payment solutions available for both customers and other businesses (minimizing cash on hand).

Section 6: Financial Plan and Business Model (150 points) Description:

Financial stability is crucial for the successful launch and ongoing operations of a cannabis retail business. This section evaluates the applicant’s business model, and financial capacity to support capital expenditures for build-out, TI, initial staffing and inventory and initial operational expenditures per the business model. Applicants must show availability of funds to support either 24 months of total expenses or $2 million, whichever is greater. This ensures that the business has the resources needed to successfully launch and maintain operations. A track record of quickly opening stores is beneficial (some operators collect licenses without opening).

Criteria for Scoring:

1. Business Model - pre-launch through Year 3 Full
Detailed 3 year business model outlining dispensary construction, launch and operations from pre-build out (including license pursuit costs) to store launch, plus 3 years post-launch.

2. Availability of Funds for Initial Launch and Operations Applicants must demonstrate financial readiness by showing availability of funds to support either 24 months of TI, CapEx, build-out, and OpEx, or $2 million, whichever is greater.

3. Financial Statements and Documentation
Submission of financial statements, letters of credit, or other documentation that demonstrates the financial capacity to sustain ongoing operations and overall financial resources and 245
9 credibility. Documentation could come from corporate parent (balance sheet). Points awarded for completeness, transparency and indication of appropriate financial resources.

4. Business Plan Detailing Fund Allocation
The business plan should outline how funds will be allocated for the build-out, operational expenses, and ongoing business activities, demonstrating a clear strategy for managing financial resources.

5. Contingency Planning for Financial Challenges
Consider the applicant’s plans for managing unforeseen financial challenges or delays, ensuring that they have a clear strategy for maintaining operations even in the face of unexpected setbacks.

6. Track Record of Opening Retail Locations, Quickly
Points awarded for applicants with a proven track record of opening stores swiftly after being awarded a Conditional Use Permit (CUP). Applicants should submit their average time to opening after receiving a CUP to demonstrate their ability to meet project timelines and begin operations promptly, along with a deduction of points for prior licenses granted to the Owner group but not yet launched, unless adequately explained in each case (points awarded to encourage operators to open, not just collect and sit on licenses awarded).

Section 7: Building Plans and Site Improvements (100 points) Description:

The design and functionality of the proposed cannabis retail location play a significant role in community perception and overall business success. This section evaluates the applicant’s building plans, architectural design, and proposed site improvements. Plans and renderings should include details on interior and exterior design, accessibility, and integration with the surrounding environment.

High-quality, aesthetically pleasing design and thoughtful site improvements can enhance neighborhood compatibility and minimize any negative impacts.

Criteria for Scoring:

1. Architectural Design and Building Plans
Consider the quality of the proposed architectural design and building plans, focusing on how the location will fit within the existing neighborhood and contribute positively to the community’s aesthetic. Award extra points for lack of identifiable cannabis logos and motifs (eg.

Green crosses), other descriptive cannabis/dispensary terms, and lack of visibility from the street into the shopping area, and lack of product visibility and related signage from the street.

2. Site Improvements
Evaluate the applicant’s proposed site improvements, such as parking, landscaping, traffic flow, and accessibility, ensuring that the business is functional, accessible, and visually appealing.

Consider extra points for sites that upgrade or replace existing blight or nuisances (e.g. blighted buildings or “nuisance” businesses in Redondo Beach).

3. Integration with the Surrounding Environment
Assess the applicant’s plans for integrating and improving the retail location with the neighborhood, including measures to minimize disruptions, enhance visual appeal, and ensure compatibility with surrounding properties. Include renderings that demonstrate how the store will blend with the neighborhood, enhance local aesthetics, and contribute positively to the community through site maintenance and cleanliness.

4. Compliance with Local Building Codes and Community Standards Ensure that the building plans meet all local building codes and align with Redondo Beach’s community standards and expectations.
246
10 Section 8: Security Plan (100 points)
Description:

Given the sensitive nature of cannabis retail operations, a robust security plan is crucial for ensuring the safety of employees, customers, and the surrounding community. This section evaluates the applicant’s approach to premises security, surveillance, personnel training, and emergency response. The plan should outline measures to prevent theft, protect assets, and respond effectively to security incidents.

Criteria for Scoring:

1. Premises Security Measures
Assess the quality and comprehensiveness of the security plan, including surveillance camera placement, alarm systems, and access control. Points awarded for use of a security expert to prepare the security plan, and a consideration of the security expert’s qualifications, experience and credentials.

2. Security Training
Consider the qualifications and training protocols for security personnel and all staff, including their ability to respond to incidents and prevent unauthorized access.

3. Emergency Response Planning
Evaluate the applicant’s preparedness for emergency situations, such as power outages, security breaches, or natural disasters.

4. Use of Security Technology and Best Practices
Ensure that the security plan incorporates up-to-date technology and best practices in the cannabis industry, ensuring a high level of protection and incident prevention.

Section 9: Safety Plan (50 points)
Description:

The safety of employees, customers, and the public is paramount. A well-developed safety plan should cover everything from fire prevention and suppression to emergency evacuation procedures. This section evaluates the applicant’s approach to maintaining a safe environment, compliance with health and safety standards, and training programs for staff.

Criteria for Scoring:

1. Safety Procedures and Protocols
Assess the applicant’s procedures for maintaining a safe working environment, handling hazardous materials, and ensuring customer safety.

2. Training and Emergency Preparedness
Evaluate the comprehensiveness of training provided to staff, covering emergency response, fire safety, and health protocols.

3. Ongoing Safety Management
Consider the applicant’s plan for regularly reviewing and updating safety procedures to remain compliant and ensure continuous improvement.

4. Compliance with Health and Safety Regulations
Ensure that the safety plan meets all relevant health and safety regulations, including fire codes and occupational safety standards.

Section 10: Good Neighbor Policy and Community Engagement (50 points) 247
11 The Neighborhood Compatibility Plan assesses how well the business aligns with the expectations of the local Redondo Beach community in the site’s neighborhood. This section should include:

1. Good Neighbor Policy:

Assess commitment to positive relationships with neighbors, ongoing communication, and a clear feedback process. Establish a designated point of contact to handle concerns, and provide timely resolution of issues. Consider the applicant’s outreach efforts and outcomes

2. No Loitering, No Consumption Policy:

Evaluate effectiveness of measures prohibiting loitering and on-site cannabis consumption, supported by signage, trained personnel, and security measures to enforce compliance.

3. Light, Noise, and Odor Management:

Assess measures to prevent light spillover, reduce operational noise, and control odors using advanced HVAC systems. Regular maintenance and monitoring should be in place to ensure adherence to city standards.

4. Location Enforcement:

Evaluate security personnel or staff roles in monitoring and enforcing policies, preventing youth access, and managing on-site safety, including process for handling violations.

Section 3 – Other Considerations
This section outlines some other items for consideration in the consummation of the process, and discussion of other items that have arisen over the course of the last several council meetings.

1. Selection process – the current process states:
“The Permit Administrator, as a ministerial duty, shall have all applications rated 16 using the included standardized criteria to be used on each application. The top five (5) rated applicants will be invited to give a ten (10) -minute presentation before the City Council for consideration of award of Commercial Cannabis Retail Permit. The City Council will select up to two (2) of the top five (5) rated applicants for the award of a Commercial Cannabis Retail Permit.”
However, we would request adding an interim review step to the existing Commercial Cannabis Retail Permit selection process to ensure a more robust and balanced evaluation.

This step would involve a panel of three (3) City staff or outside experts interviewing the Owners and key team members from the top ten (10) applicants, or any applicant scoring above 90%, before a smaller group is then selected by the interview panel to advance to the City Council presentation. This additional layer of evaluation is in keeping with established best practices and offers enhanced scrutiny; review in an interview setting can provide specialized insights and reduce any potential biases in the initial scoring, ensuring that only the most qualified applicants are considered, and affords additional transparency, reinforcing the fairness and credibility of the process.

2. Revenue Tests – Revenue as an Unreliable Indicator of Success:

Revenue alone is not a comprehensive indicator of a cannabis business’s success or operational excellence. Several factors undermine the validity of revenue as a reliable metric:
248
12 Location and Market Dynamics: Revenue can be influenced by factors such as location, foot traffic, scarcity, encroachment by illegal operators, and general market conditions—factors that are often beyond an operator’s control and may not reflect the quality of operations or be repeatable.

Sustainability Concerns: High revenue does not always equate to sustainability. Many businesses have driven up revenue through aggressive pricing strategies, deep discounting, or excessive promotions, essentially “buying” revenue, often leading to short-term gains at the cost of long-term stability. This approach has led several cannabis operators into insolvency in the last 12 months.

Luck and Timing: Revenue can be as much a function of timing and market entry as it is of business acumen. Operators who launched earlier or secured prime locations may see higher revenue numbers, not because of operational excellence, but due to fortunate circumstances.

Given these limitations, as is indicated in our proposed scoring matrix, we recommend shifting the focus away from revenue as an indication of “good operations.” Instead, we submit evaluation should prioritize compliance, operational transparency, store longevity, community engagement, and a proven ability to navigate complex regulatory environments—factors that are more indicative of an operator’s capability and long-term viability.

Summary
The City of Redondo Beach’s foray into legal cannabis retail represents a monumental undertaking and commitment from the City, for which we are thankful. Having developed and burnished our local roots, Sweet Flower understands the community will be watching closely to see if the implementation is successful. Choosing an established, reputable operator with a strong track record ensures that the city is partnering with a business that can responsibly navigate this transition, minimize risks, and contribute positively to the community, and we hope the recommendations above will assist the City in that process.

We thank the City of Redondo Beach council, staff and the broader Redondo Beach community for its careful and diligent review and consideration, and we are happy to address these recommendations at the City’s convenience.

Sincerely,
Tim Dodd
CEO/Co-Founder
Sweet Flower
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October 13, 2024
Dear Council, City Manager and Staff, City Attorney and City Clerk, Per the Mayors request at the last council meeting, I am writing to address the proposed guidelines, specifically regarding the experience and qualifications of applicants for cannabis retail licenses.

Our company, Supreme Retail, is a newly formed partnership comprised primarily of principals with extensive experience in the cannabis retail industry. We have successfully owned and operated nine retail locations across California, eight of which were acquired by a publicly traded company in 2022. Additionally, one of our principals currently serves as the Founder and Chairman of the Board for Native Roots, one of Colorado's largest retail chains, overseeing 20 high-revenue stores. I myself was a partner and the Chief Operating Officer of our former California chain.

Our A team (our A-team) consists of operational experts with strong personal and business roots in and around Redondo Beach. My wife’s family, also partners in our new entity, has owned the property (our proposed location) at 1002 South Pacific Coast Highway for over 50 years and operated Supreme Paints, a family-owned business, for decades. Furthermore, we have partnered with other local community members, including the iconic Dennis Jarvis of Spyder Surfboards in Hermosa Beach, to ensure we meet the needs of Redondo Beach and the surrounding area.

These factors uniquely position us to contribute to the cannabis market and deeply understand the local community in Redondo Beach. However, the current application guidelines— specifically Section 1, Number 1 of Qualifications of Applicants’ Owners and Managers—and several other criteria effectively allow only larger chains with currently operating stores to compete. These guidelines present barriers to small entities and favor larger, established retail chains over newly formed independent operators like ourselves, who possess the same, if not more, experience and access to capital as larger chains. Supreme Retail is not the only company facing this issue.

SUGGESTED REVISIONS TO GUIDELINES
To create a more equitable application process that accommodates both established large retail chains and independent operators, we propose the following adjustments to the guidelines. We respectfully request the removal or revision of the following points to better reflect the capabilities of independent operators:

1. Section 1, Criteria 1
o Original: Applicant must demonstrate cannabis retailer operations and ownership in California, with taxable gross sales of $3,000,000/year generated by at least one retail, storefront location.
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o Proposed Revision: Applicant must demonstrate principals’ cannabis retailer operations and ownership within the past four years in California, and/or other states, with taxable gross sales of $3,000,000/year generated by at least one retail storefront location.

2. Section 1, Criteria 4
o Original: Applicant must provide the total taxable gross sales for their highest-grossing retail location in California. Scale of taxable gross sales for this single location will be scored progressively ($3,000,000 and above), with additional points awarded for every $1 million demonstrated, up to a maximum of 20 points.
o Proposed Revision: Remove this criterion, as revenue is not a sole indicator of a successful operator. Revenue is dependent on market conditions, including the size of the store, the number of licenses held, location, and demographics. There are operators who generate high gross revenue but may not manage their stores effectively. This criterion disadvantages smaller and emerging businesses, who qualify under your Criteria 3, and unfairly favors large operating chains.

3. Section 1, Criteria 5
o Original: Applicant must provide a description of their local experience and community involvement, highlighting their connections to the local community and any prior civic engagement. This shall include evidence of how the applicant has fulfilled the commitments outlined in Community Benefit Plans submitted to other cities. o Proposed Revision: The description should reflect past or present involvement of company’s principals’ stores in California or other states as well as demonstrate any recent or current community engagement within the City of Redondo Beach.

4. Section 1, Criteria 6
o Original: Applicant shall provide the total taxable gross sales and net profit for their first three years of operation at their highest revenue location. o Proposed Revision: Remove this criterion or revise it to: Applicant shall demonstrate principals ability to manage high-revenue locations through the submission of letters or testimonials, tax documentation, and/or sales reports from past or present stores of principals in California and/or or other states. Combining multiple forms of evidence will provide a robust and credible representation of the company's capabilities while allowing new entities with principals who met the criteria in other cannabis entities, past or present.

5. Section 3
o Original: Applicant must provide audited financial statements for at least three (3) years of operation.
o Proposed Revision: Eliminate the requirement for audited financial statements for the past three years of operation, as this criterion does not enhance the evaluation of owner qualifications and imposes unnecessary barriers on smaller, experienced operators.

6. Section 4, Criteria
o Original: Applicant must provide proof of General Liability Coverage with a minimum coverage of $2,000,000 and Workers' Compensation Insurance with a minimum coverage of $1,000,000.
o Proposed Revision: Applicants with new entities having no assets or employees yet cannot provide policies and coverage; allow applicant to submit a letter from a licensed insurance broker confirming that the necessary policies with this coverage amount will be obtained once assets and employees are in place.

By implementing these revisions, the application process will become more inclusive, allowing experienced independent operators to compete on a level playing field with established large retail chains.

The application process is competitive, every criterion is pivotal. Therefore, it is crucial that the 251
guidelines uphold fairness and equity for all participants. We appreciate your consideration of these suggestions and look forward to contributing to the successful cannabis community in Redondo Beach.

Sincerely,
Myles Peck
Founder/CEO
Supreme Retail
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1 Elizabeth Hause
From: Devon Julian
Sent: Tuesday, October 15, 2024 5:01 PM
To: James Light; Nils Nehrenheim; Todd Loewenstein; Paige Kaluderovic; Zein Obagi; Scott Behrendt; Mike Witzansky; Elizabeth Hause
Subject: Redondo Council Letter
CAUTION: Email is from an external source; Stop, Look, and Think before opening attachments or links.

Dear Honorable Mayor, City Council Members, City Manager Mr. Mike Witzansky, and Community Services Director Ms.

Elizabeth Hause,
Below are some comments about two issues and pitfalls in the latest draft of the application scoring process.

The bonus points section for each million dollars in revenue above $3 million up to $22 million dollars is not an objective criteria. This does not demonstrate how good an operator is,but instead how little competition there is around a store. A store in the City of Los Angeles will have revenues much lower than a store in Pomona as an example, because of the lack of legal cannabis access within many miles from the approved locations. However, a store who is able to operate profitably in the City of Los Angeles could very easily have a much stronger team because of the saturation of stores and the need to successfully compete. This does not protect the health and safety of the local Redondo community, but rather allow bonus points subjectively, nor guarantee the best operators.

There is a section about audited financials. Audited financials in the cannabis space require a niche CPA who will charge upwards of $20k to do an audit. Also, all CPA’s are not created equal. There might not even be enough CPA’s out there to audit all the applicant’s financials separately and objectively. Tax receipts, ability, and a history of paying local and state taxes is a much stronger criteria to show an operator’s success, and can easily be requested from local and state authorities.

Also, having an operator select one store to show, and prioritizing bloated revenue numbers does not tell the whole story. How profitable is that business? What is the corporate structure of that business and who is operating the store? Are they current with their local and state taxes? By selecting a store of an applicant’s choice, you are incentivizing the operator to show you what they want you to see, not what you are ultimately requesting as objective criteria.

While we appreciate all that you are doing and attention to detail, we ask that criteria remain as objective as possible.

Best,
Devon Julian
Culture Cannabis Club
Thanks,
M m m DEVON JULIAN
Chief Executive Officer
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2 M m m
Want to book time with me? Click here https://calendly.com/djulian/devon-30-minute-immediate-clone for a 30 minute virtual phone call. 254
1 Elizabeth Hause
From: Zein Obagi
Sent: Monday, October 14, 2024 5:42 PM
To: Elizabeth Hause
Subject: Fw: Hashery LLC Recommendations of Redondo Beach Cannabis Application Zein E. Obagi, Jr.

Council Member, District 4
City of Redondo Beach │ City Council
415 Diamond Street │ Redondo Beach, CA 90277
310.318.0693 │ 310.379.9268 fax
[email protected]│ www.redondo.org
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Please note that email correspondence with the City of Redondo Beach, along with attachments, may be subject to the California Public Records Act, and therefore may be subject to disclosure unless otherwise exempt. The City of Redondo Beach shall not be responsible for any claims, losses or damages resulting from the use of digital data that may be contained in this email.

From: Len Coleman
Sent: Monday, October 14, 2024 4:45:37 PM
To: James Light <[email protected]>; Scott Behrendt <[email protected]>; Nils Nehrenheim <[email protected]>; Paige Kaluderovic <[email protected]>; Zein Obagi <[email protected]>; Todd Loewenstein <[email protected]> Cc: Samuel Jurist Rob Merkelbach
Subject: Hashery LLC Recommendations of Redondo Beach Cannabis Application CAUTION: Email is from an external source; Stop, Look, and Think before opening attachments or links.

Dear City Council of Redondo,
Hashery LLC appreciates the opportunity to make a few comments about the ongoing retail cannabis application process. Between our various companies, most notably Hashery LLC and SHO Companies, we think we may be able to provide some helpfulness with our experience in many aspects of the cannabis industry.

With business operations that include retail, manufacturing, distribution, and an ancillary business, we have been able to observe various questions that are more relevant than others during many application processes.

There are a few points we would like to bring to the City Council’s attention.

It is not specific in the application, but it should be understood that likely all applicants will need to create a new entity for their retail operation within Redondo. This separates liability, investors, cannabis operations etc. from existing businesses under the same management/ownership umbrella. This new entity clearly would not have any history of operation. Section (1) does refer to Applicant’s Owners and Managers, and we would You don't often get email from [email protected]. Learn why this is important 255
2 assume all questions in other sections about financials, experience, etc. would extend to our current businesses we own and manage.

Section (1)a. Up to 100 points - demonstrates cannabis retailer operations and ownership in California, that has taxable gross sales of $10,000,000/year per store.

Hashery LLC finds this qualification as well as the points attached to it to be out of line with the intention of the City Council. The City Council is certainly trying to find qualified individuals who run a profitable retail cannabis business. They are also trying to find individuals that have experience running cannabis operations within the State of California. The specifications of requiring cannabis retail experience, the monetary sum, and that same business to be conducted in California, would exclude many businesses from the pool of applicants you are trying to reward. For example, we are currently a cannabis manufacturer, distributor, and ancillary company within the State of California. We previously have owned a cultivation business in California.

Currently, our retail dispensary Hashery in Hackensack, NJ has well over $10,000,000 in taxable gross sales a year. Our qualifications operating a retail dispensary and our involvement in the California cannabis industry our second to none. The fact that we can prove success as a retail operator, as well as our cannabis experience in California, should more than qualify us for all the points this section should offer. The way this is currently is written does not, retail experience in any state should qualify the intent.

Another pertinent point Section (1) does not address is length of ownership in the cannabis industry. Many people have come and gone, obviously some being more successful than others. Being able to show staying power within the industry should be of importance. You want to partner with someone that you know will be invested in the community/business for the long-haul.

Section (2)e. Up to 10 points – A conceptual landscape plan with the percentage of landscaping in the parking lot, setback areas, and tree size and species.

We find this qualification to be unneeded and not in the control of actual businesses. If leasing, this is something that the business cannot do anything about. One should not be docked points for whatever landscaping plan their landlord may have in place, or what they may have planned for the future.

Section (3)c. Up to 15 points – A budget for construction, operation, maintenance, compensation of employees, equipment costs, utility costs, and other operating costs.

There should be more points awarded to this. This is a great way to understand who has a real concept of what this project will entail. Groups that put time and effort into this point should stand out as people realistic and capable of completing this project.

Section (3)d. Up to 10 points – A description of the sources(s) of capital and use(s) of capital.

Companies should have to provide proof through banking means such as, letter of credit, bank statements from their operating businesses, private accounts. You do not want a capital raise holding up the opening of the Redondo retail business. Businesses should be able to prove funds that were set out in their budget/pro forma.

Section (3)e. Up to 10 points – Pro forma financial statements for at least three (3) years of operation.

This should be granted more points. Individuals who have experience in this field have thoughtful and realistic projections. They have a basis of which to plan around, and understand the cash flow needs to get through a couple of years in a new cannabis retail business. We would hope the City Council would add more points to thoughtful consideration of the business’s finances. Simply putting together a proforma with unrealistic projections should not qualify applying businesses.
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3 Section (6)a. Up to 75 points – A “Good Neighbor Policy” that (1) includes policies and measures in place to protect adjacent uses from any potential impacts (e.g., noise, light, odor, traffic, etc.) related to the proposed cannabis retailer, including addressing parking and traffic impacts
These are a lot of points for a traffic plan. Being involved in many applications, this is at times duplicated and redundant. We do find that no available parking, either public or a private lot, can be a detriment to certain individuals within a town. The plan should address this need, but a full traffic survey is usually not needed and the points given seem out of proportion with the rest of the application.

Thank you for taking the time to read some of our thoughts and insights. As individuals who have been in the cannabis business in California for a long time, we greatly look forward to the opportunity to apply for a retail operation in Redondo. We have been very selective about the projects and businesses we launch, and can’t be more excited about the community of Redondo and the individuals in it.

Thanks,
Hashery
Leonard Coleman
Sam Jurist
Robert Merkelbach
--
Len Coleman
Website: hasherynj.com
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1 Elizabeth Hause
From: Eleanor Manzano
Sent: Thursday, October 10, 2024 3:44 PM
To: Elizabeth Hause; Mike Witzansky
Cc: Lucie Colombo; Melissa Villa
Subject: Fwd: Comment For 10/15 City Council Meeting
See below email…
Sent from my iPhone
Begin forwarded message:

From: Tak Sato
Date: October 10, 2024 at 3:29:57 PM PDT
To: CityClerk <[email protected]>, Eleanor Manzano <[email protected]> Cc: "Stephanie L. Uy" <[email protected]>
Subject: Comment For 10/15 City Council Meeting

CAUTION: Email is from an external source; Stop, Look, and Think before opening attachments or links.

Dear Redondo Beach City Clerk,
Please see public comment below regarding City Council’s 10/15 discussion on the Cannabis Dispensary License Process to be included in the records:

Dear City of Redondo Beach,
Stiiizy has been actively engaged with the City of Redondo Beach and its constituents regarding cannabis the past 2 years. During the last City Council meeting discussion about cannabis, a few speakers expressed the opinion that an operator’s historical revenue numbers should not be taken into account in the scoring of an applicant. One speaker noted that high revenues could be from luck or having the right location.

I strongly disagree. While location does influence a cannabis store’s revenue, the key driver of a store’s revenue is its ability to attract and manage a large number of customers. Similar to any other industry, cannabis customers are more comfortable purchasing at brand stores that they trust and are familiar with. Second, customers also are more likely to shop at stores that are prepared to have a large number of customers with the proper amount of employees and large inventory levels so that customers can quickly complete their purchases for their desired products. At Stiiizy, our Downtown Los Angeles store and our Pomona store each exceeded $30 million dollars in sales the last two years. This is despite Downtown Los Angeles being the most saturated cannabis market in California with 11 licensed dispensaries and dozens of unlicensed dispensaries within 5 square miles.

I believe our brand’s popularity and our ability to provide the best customer experience even during the busiest periods are the two main reasons for the high revenue of our stores. Much like a Trader Joe’s or a Starbuck’s, customers come to our store because they trust our products and the customer experience they have become familiar with. In order to ensure Redondo Beach receives substantial amounts of cannabis tax revenue, picking operators with a history of operating high revenue stores is paramount. A company cannot be expected to have high revenue in Redondo Beach if they have not proven the ability Some people who received this message don't often get email from [email protected]. Learn why this is important 258
2 to do so in other cities. I therefore respectfully encourage the City to retain a scoring system where applicants are awarded points based on already operating high revenue stores.

Respectfully,
Tak Sato
President of STIIIZY

Tak Sato
President
STIIIZY Inc.

259
1 Elizabeth Hause
From: Devon Wardlow
Sent: Friday, October 25, 2024 2:14 PM
To: Elizabeth Hause
Subject: Embarc - Redondo Beach Follow up
Attachments: Embarc Overview Deck_2024-05-28[5][3][2].pdf; Embarc Community Advisory Board Overview[2][3] [2].pdf; Botvin_2023_10-02 (1)[2][2][3][2].pdf; App Procedure Guidelines Retail v1.1[1][3].pdf; AppProcedureGuidelinesReta[1][3].pdf
CAUTION: Email is from an external source; Stop, Look, and Think before opening attachments or links.

Hi Elizabeth,
I hope this finds you well! I appreciate all the hard worked you are doing to ensure Redondo Beach pursues the best approach to retail cannabis licensing. I know my CEO sent a leƩer to the City supporƟng Courtney Caron’s recommendaƟons to the most recent staff report changes.

As the City is contemplaƟng best pracƟces for retail cannabis licensing, I thought it may be helpful to share a few examples from ciƟes that are implemenƟng or have implemented merit-based processes.  City of Santee - Here is the City of Santee’s applicaƟon procedures and review criteria and here is the governing Ord. Santee’s process is City Council as the final decision maker. Santee just opened their RFP last month and we have just submiƩed our app in that community yesterday. Note the city has not passed a cannabis tax and has include the tax as their community benefit fee.
 AƩached you will find the City of Chico and the City of Redwood City App Procedures and Guidelines as well - which were processes that empowered the City Manager as final decision as opposed to Council.

The above processes provide examples of a City Council final decision maker process (Santee) and City Manager final decision maker process (Chico and Redwood City). If the council would prefer to consider an oral board or staff led board as the final decision maker, I am happy to discuss this and look into examples of ciƟes that have pursued this route as well.

Please let me know if you have some availability for an in person or zoom meeƟng someƟme in November or December or whenever would be the most appropriate Ɵme for your schedule.

Lastly, to provide a bit of background on who we are as a company, I have aƩached the following materials about Embarc:
 Overview of Embarc: Highlights store footprint, press clips, tesƟmonials, photos of storefronts, approach to community benefits, summary of benefits we have delivered in other communiƟes  Community Advisory Board 1 pager: Details role of Board members as serving on our local Community Advisory Board is in no way an endorsement of cannabis but rather an opportunity to ensure the financial benefits of legal cannabis are invested in the needs and prioriƟes of the community we seek to serve.  Botvin Youth Drug PrevenƟon: Overview of the accredited youth drug prevenƟon educaƟon curriculum we have launched with Boys and Girls Clubs and other youth servicing non-profits throughout the state.

Thank you very much for your Ɵme and consideraƟon, Elizabeth. I look forward to staying in touch and please feel free to reach out to me anyƟme.

You don't often get email from [email protected]. Learn why this is important 260
2 All the best,
Devon





Vice President of Public Affairs
CONFIDENTIALITY NOTICE: The contents of this email message and any attachments are intended solely for the addressee(s) and may contain confidential and/or privileged information and may be legally protected from disclosure. If you are not the intended recipient of this message or their agent, or if this message has been addressed to you in error, please immediately alert the sender by reply email and then delete this message and any attachments. If you are not the intended recipient, you are hereby notified that any use, dissemination, copying, or storage of this message or its attachments is strictly prohibited.
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City of Chico - Application Procedures & Guidelines for Cannabis Business Permit – Storefront Retail Only 1 City of Chico
City Manager’s Office – Cannabis
411 Main Street
Chico, CA 95927
P: 530.896-7210

APPLICATION PROCEDURES & GUIDELINES FOR A

CANNABIS BUSINESS PERMIT
Retail Store Front Only
Request for Proposal Deadlines
OPENS – June 2, 2021
CLOSES July 16, 2021 @ 4:00 PM
Information on the Cannabis Business Permit process will be available on-line at the city website at https://chico.ca.us/cannabis-information and may include the following:
▪ California state regulations and resources
▪ Chico Municipal Code Chapters 5.42, 5R.42 and
Title 19.75
▪ Commercial Cannabis Business License
Application
▪ Frequently Asked Questions
▪ Limitations on City’s liability waiver
▪ Background Check form and/or Live
Scan
To be considered for issuance of a Cannabis Business Permit, final applications and fees must be submitted to the Community Development Department located at the address listed on these procedures. This application process is adopted pursuant to Chico Municipal Code Chapters 5.42, 5R.42 and Title 19.75.

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 update clarification, or as authorized in writing by the City Manager or his/her designee.

During Phase I, City staff will conduct a preliminary evaluation of the applications for completeness and will reject any application that is missing a major component (i.e. Business Plan), notifying the applicant by email. Substantive evaluations of the applications will occur during Phase II. At that time, the City will notify applicants by email if their applications are found to be missing minor requirements (for example, signatures/dates on forms, proof of payment receipts or missing scanned pages in one of the scoring criteria documents). If this is the case Applicants may be granted five days from the date of the email to submit the required supplemental information. Furthermore, Applicants will be notified if their application is incomplete or if there is any other reason for which they will not be moving forward in the application process.

CITY’S RESERVATION OF RIGHTS
The City reserves the right to reject any and/or all proposals, with or without any cause or reason. The City may modify, postpone, or cancel the request for a Cannabis Business Permit application without 262
City of Chico - Application Procedures & Guidelines for Cannabis Business Permit – Storefront Retail Only 2 liability, obligation, or commitment to any party, firm, or organization. In addition, the City reserves the right to request and obtain additional information from any candidate submitting a proposal. Late proposals WILL BE REJECTED. Furthermore, a proposal RISKS BEING REJECTED for the following reasons:

1. It is not responsive to this request for a Cannabis Business Application and the Procedures & Guidelines.

2. The issuance of the Cannabis Business permit for the proposed location is inconsistent with State law, Title 19.75, Chapter 5.42, Chapter 5R.42 and other applicable City of Chico Municipal Codes.

In addition, it is anticipated that the City may be placing a Cannabis Tax Measure on the November 8, 2022 ballot for the voters to approve, or the City Council may establish a community benefit or operational fee agreement as authorized in CMC Section 5R.42.100 and 5.42.340. Therefore, every Applicant should be mindful that a community benefit fee or tax assessment be identified as a component of their Business Plan and failure to acknowledge or comply with this requirement may disqualify them from eligibility for a Cannabis Business Permit. We should note that any permit will not be fully operative until the successful applicant completes any other required process including but not limited to, State licensing, City Conditional Use Permit process, etc.

APPLICATION PROCESS
All applicants must do the following:
1) Review the information regarding the application process and which documents you will need. 2) Review your application in its entirety to ensure that it is complete and accurate. 3) Review the information regarding the Cannabis Business Permit application on the City webpage listed on page one.

The following procedures outline the application evaluation and selection process, required materials, and other information necessary to apply for a Cannabis Business permit to operate in the City of Chico.

CRIMINAL HISTORY CHECK
At the beginning of the application process, Each Owner must undergo a criminal history background check to demonstrate they do not provide “good cause” for denial per CMC Chapter 5R.42. This will consist of a provisional background check by means of an online portal available on the City’s website at https://hdlcompanies.formstack.com/forms/bc chico.

Upon completing the online background check form, each applicant will be required to print an online receipt which must be submitted with the application as proof of completion. Owners who do not meet the criminal history eligibility requirements of CMC Chapter 5R.42 will be disqualified.

In the final stages of the application process, each successful applicant selected by the City Manager will need to submit to a Live Scan prior to being issued a permit. This will involve submitting fingerprints to the Chico Police Department. Each Applicant’s primary contact will be notified by email with the instructions on how to schedule the Live Scan appointment when the City Manager determines which Applicants will be awarded a permit.

APPPLICATION SUBMITTAL REQUIREMENTS
Applicants must submit a complete comprehensive application package digitally in a PDF format. This can be done in person, FED EX, UPS or any other common carrier delivery service but must be 263
City of Chico - Application Procedures & Guidelines for Cannabis Business Permit – Storefront Retail Only 3 received by the deadline and a postmark will not be accepted as a timely submission. The City of Chico Cannabis Business Application Form, Indemnification Form, and Background Check Forms will be required in paper format with original signatures. The Application must respond to all requirements outlined in the “Application Procedures & Guidelines for a Cannabis Business.” The flash drive containing one complete comprehensive copy of the application, including the Application Form, and a signed copy of the application including attachments and the initial application fee must be received by the Community Development Department no later than July 16, 2021 at 4:00 PM.

Please Note: Responses to the Review Criteria (Sections 1-7 found in Appendix A of the Application Procedures Guidelines) shall be limited to 200 pages. Responses pertaining to Backgrounds, Proof of Capitalization, Zoning Verification Letter, and Property Owner Consent shall not be included in the 200- page limitation. Those responses should be saved in a PDF file that is separate from the Evaluation Criteria (see below). All materials must be submitted on a USB flash drive in a PDF format in the following files:
• PDF File #1 – CCB Initial Application with signatures • PDF File #2 – Review Criteria (Responses to Sections 1-7 of Appendix A limited to 200 pages) • PDF File #3 – Background Check documentation (All required documents for each owner, Board of Directors and person(s) who will control, direct or manage the operations of the facility) 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 (All bank statements, loan documents, promissory notes, financial and commitment letters)
• PDF File #5 – Zoning Verification Letter (City staff will include this upon completion) • PDF File #6 – A signed and notarized Property Owner Consent form, Lease Agreement, or a “Letter of Intention” to Lease.

FEES
All Retail Storefront applicants will be required to submit a non-refundable fee of $10,803 in which they will be charged for City staff and the Consultant’s time for reviewing applications and administrating the application process. There will also be additional cost in the process such as a Zoning Verification Letter fee of $156 per site which must be paid directly to the Community Development Department at the time of the request. In addition, a Provisional Background fee of $300 per person will need be paid on the background portal site. Finally, all the successful Applicants who are awarded a permit will subsequently be required to pay a $73 Live Scan fee at the Chico Police Department. Note: If zoning verification yields disqualification of location, application will be disqualified and the application fee only minus a $38 processing fee and $156 zoning fee will be refunded.

Payments must be made by a certified check, cashier’s check or money order made payable to the City of Chico. Please note the City will not accept cash or credit cards and application fees are nonrefundable.

APPLICATION EVALUATION PROCESS

SELECTION PROCESS
PHASE I: DETERMINATION OF ELIGIBILITY
Applications will be reviewed for completeness and compliance to meet the minimum submittal requirements. The determination of eligibility will be based on the criteria outlined in these procedures and as described in Appendix A. However, the criteria will be evaluated and scored in accordance with the process adopted in the Chapter 5R.42 as part of Phases II-A and Phase II-B.
264
City of Chico - Application Procedures & Guidelines for Cannabis Business Permit – Storefront Retail Only 4 PHASE II-A: CRITERIA EVALUATION AND SCORING (1,200 POINTS) During Phase II-A, the City Manager or his/her designee will review and score each application using a merit-based system. Applicants scoring a minimum of 80% or higher (960 points) in Phase II-A will advance to Phase II-B. Notice of the results of Phase II-A will be provided in writing via email to the primary contact listed on the application. See APPENDIX A for a description of the evaluation criteria to be scored in this phase.

A. Business Plan (400 Points)
B. Labor and Local Enterprise Plan (100 Points)
C. Safety Plan (300 Points)
D. Security Plan (400 Points)
PHASE II-B: FURTHER EVALUATION, INTERVIEWS AND SCORING (1,600 POINTS) During Phase II-B, the City Manager or his/her designee will review and score each application using a merit-based system, evaluating the following categories based on the written materials provided, as well as the applicants interview:

A. Business Plan (600 Points)
B. Labor and Local Enterprise Plan ((300 Points)
C. Neighborhood Compatibility (300 Points)
D. Community Benefits and Investments Plan (400 Points) Upon the completion of Phase II-B, the City Manager’s designees will tabulate the aggregate scores of all applicants from Phases II-A and II-B to create a final ranking which will form the basis of the recommendation to the City Manager.

PHASE III: CITY MANAGER’S HEARING
The City Manager shall receive the final scores and recommendations indicating the ranking of the applicants. The City Manager designee shall then conduct a public administrative hearing as required by CMC Section 5R.42.050 to determine the most suitable applications. Applicants advancing to Phase III will be invited to attend this hearing to answer questions from the City Manager and therefore should be prepared to attend the hearing and make a presentation. The City Manager shall then determine which applicants will advance to Phase IV.

Upon the completion of Phase II, the City Managers designee(s) or (Review Committee) will tabulate scores of all applicants from Phase I and Phase II to create a final ranking in which they will make a final recommendation to the City Manager.

Although the City Manager will recommend the most suitable applicants to be awarded a Cannabis Business Permit as allowed by CMC Section 5R.42.050, the City Council reserves the right to award a lesser number of Cannabis Business Permits than there are applicants, or to award no permits at all. In addition, only those applicants on the final list will be eligible to be issued a Cannabis Business Permit from the initial permit process.

After the City Manager recommends the Applicants who will potentially be granted a Cannabis Business Permit any Applicant wishing to appeal the City Manager’s final recommendation may submit an appeal to the City Council or an appointed hearing officer within ten (10) days from 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 Chico Municipal Code Section 5.42.160.

Phase IV: FINAL SELECTION BY CITY MANAGER
Prior to the City Manager’s final selection of permittees, the City reserves the right to request and obtain 265
additional information from any candidate who advanced to Phase IV. The City Manager will review the totality of the record and decide which applicants are to receive commercial cannabis permits. As part of the final selection process the top applicants or finalists should be prepared to attend a public hearing before the City Manager to address any additional questions before a final decision is rendered. The City Manager’s selection of the prevailing applicants shall be final. Unsuccessful applicants shall have the right to appeal pursuant to Section 5.42.160 of the Chico Municipal Code.

When the City Manager receives the final scores and recommendation, he/she will use this information to prepare a report to submit to the City Council on the final ranking and selection for pursuant to CMC Section 5R.42.050.

PLEASE NOTE – Applicants who have been awarded a license will be required to pay five (5) percent of gross receipts annually to a community benefits fund.

ZONING VERIFICATION LETTER (ZVL) – Applicants will be required to obtain a Zoning Verification Letter from the Community Development Department as part of the selection process. The letter will verify if the submitted site is eligible for cannabis retail as outlined in Title 19 of the Chico Municipal Code. All locations shall be subject to a ZVL to confirm that the proposed location is properly zoned and meets all the minimum sensitive buffer requirements. Please be advised that the City will only accept up to three Zoning Verification Letters (ZVL) per property. Once it receives the maximum number for each location it will no longer accept request to review them. When requesting a ZVL the Applicant will need to show that it either owns the property, signed a lease agreement, or received a letter of “Intention to Lease” from the property owner.

Zoning Verification Letters require a written request to the Community Development Department and will not be completed over the counter to allow for research and review. The review process typically takes approximately ten (10) working days. The ZVL will cost $156 and payment is due at the time of application submission.

Please note the issuance of a ZVL does not constitute written evidence of permission given by the City of Chico 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 Codes. Although a ZVL will be issued and added to the application, the identification of sensitive uses will continue up until the final issuance of a permit and Conditional Use Permit, and where a sensitive use in operation prior to the date of application is identified, the application will be deemed disqualified.

LAND USE & BUILDING PERMIT PROCESS
The final selected applicants with a Cannabis Business Permit are then required to submit for a Conditional Use Permit (CUP) which will be reviewed by the Planning Commission and may require a CEQA review. After land use entitlements are obtained, the Applicant may then submit for Building Permits for renovation or construction.

Furthermore, being awarded a Cannabis Business 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, planning permits or reviews, and any other permits, licenses, or reviews as may be required by the relevant departments or governmental entities in charge of said permits. Nor does it guarantee that the plans submitted via the application process meet the standards or requirements in Chapter 5.42, Title 19 or any other permit requirements from other City departments or agencies.

City of Chico g uidelines for Cannabis Business Permit – Storefront Retail Only 5 266
City of Chico - Application Procedures & Guidelines for Cannabis Business Permit – Storefront Retail Only 6

PROOF OF INSURANCE AND INDEMNITY
The Applicant shall provide proof of insurance in the form of a certificate of insurance with the appropriate minimum coverage specified in the City’s Cannabis License Application. All Applicants are required to sign the application, and by so doing they confirm their indemnification of the City and thereby release the City from liability for any claim arising from commercial cannabis activity generally, any repeal or amendment of the City Code regarding commercial cannabis activity, or any related violation of state or federal laws.

PAYMENT OF APPLICATION FEE
The applicant will provide the application and zoning verification fee at the time of the application submission.

CONTACT INFORMATION
If you have any questions or would like an update on the status of your application, please email [email protected].
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City of Chico - Application Procedures & Guidelines for Cannabis Business Permit – Storefront Retail Only 7 APPENDIX A: EVALUATION CRITERIA
While the following identify a standardized set of criteria for use in preparing applications, any and all provisions of Chico Municipal Code Chapters 5.42, 5R.42 and Title 19.75, other local codes and State laws and regulations serve as additional criteria for evaluating applications. Thus, it is the applicant’s responsibility to ensure a high-quality submission which addresses all relevant requirements for the specific Cannabis business type.

SECTION A: BUSINESS PLAN

1. Owners Experience – Resumes are not to exceed one (1) page per owner. The owners should provide any experience they have in operating a retail establishment, a regulatory business, or managing employees. If you have any experience operating a cannabis business please provide the location of such activity and a copy of any permits, licenses, or other written forms of permission for such activity by a local or state government entity. In addition, list all college degrees, certificates, or professional licenses that you have obtained which would demonstrate other technical knowledge that may guide you to successfully run a business organization.

2. Finances – 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.

A. Proof of capitalization, in the form of documentation of cash or other liquid assets on hand, Letters of Credit or other equivalent assets which can be verified by the City.

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.

3. Daily Operations – With as much detail as possible, the Business Plan should describe the dayto-day operations which meet industry best practices for a retail cannabis license. This should include at a minimum the following criteria.

A. Describe customer check-in procedures.

B. Identify location and procedures for receiving deliveries during business hours.

C. Identify the name of the Point-of-sale system to be used and the number of Point-of-Sale locations.

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

E. Describe the proposed product line to be sold and estimate the percentage of sales of flower and manufactured products.

F. If proposed, describe delivery service procedures, number of vehicles and product security during transportation.

4. How the Cannabis Business will conform to local and state laws. See CMC Title 19.75, and Sections 5.42 and 5R.42 as they pertain to retail establishments in the City of Chico.

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

Describe the Point of Sale system to be used and how it will interact with the state’s mandated track and trace system.

SECTION B: LABOR & LOCAL ENTERPRISE PLAN

1. The application should describe to what extent the Cannabis Business will adhere to heightened pay and benefits standards and practices, including recognition of the collective bargaining rights of employees.

2. Identify number of employees at initial opening and the maximum number of employees when the business is at full capacity.

3. Identify any social equity programs that will be developed as part of the business model to ensure employees are provided equal opportunities for development.

4. Identify all positions and their responsibilities.

5. Describe compensation to and opportunities for continuing education and training for employees. 268
City of Chico - Application Procedures & Guidelines for Cannabis Business Permit – Storefront Retail Only 8 SECTION C: SAFETY PLAN

1. The detailed Safety Plan shall be prepared by a California professional fire prevention and suppression consultant.

2. This plan will describe all fire prevention and suppression measures, fire extinguisher locations, evacuation routes and alarm systems the facility will have in place.

3. Accident and incident reporting procedures.

4. Waste management locations and procedures.

SECTION D: SECURITY PLAN

1. The security plan shall be prepared by a professional security consultant. (Security plans will not be made public) The plan should demonstrate how they wish to develop the floor plan and address other security issues on the property.

2. Premises Diagram: In addition to the site plans submitted for the Proposed Location, a Premises Diagram must be included with the Security Plan section of the application. The diagram must meet the requirement of the Bureau of Cannabis Control CCR Title 16, Division 42, §5006.

Premises Diagram.

A. The diagram shall show the boundaries of the property and the proposed location to be licensed, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, windows, and doorways, and shall include a brief statement or description of the principal activity to be conducted therein.

B. The diagram shall show and identify commercial cannabis activities that will take place in each area of the premises and identify all limited-access areas.

C. The diagram shall show where all cameras are located and assign a number to each camera for identification purposes.

D. The diagram should be accurate, dimensioned and to-scale (minimum scale of 1/4”).

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

3. Description of operational security, including but not limited to general security for access/visitor control, inventory control and cash handling procedures for internal controls and for removing it off the premises to financial institutions or armor carriers.

4. Description of perimeter security, on-site security guards, light, and parking.

5. Identify transportation techniques and security procedures.

6. Employee training and general security policies.

SECTION E: NEIGHBORHOOD COMPATIBILITY PLAN

1. Describe how the CCB will proactively address and respond to complaints related to noise, light, odor, vehicle, and pedestrian traffic.

2. Describe how the CCB will be managed to avoid becoming a nuisance or having impacts on its neighbors and the surrounding community.

3. Describe odor mitigation practices:

A. Identify potential sources of odor from any cannabis or cannabis products being sold.

B. Describe odor control devices and techniques employed to ensure that odors from cannabis are not detectable beyond the licensed premises.

C. Describe all proposed staff training, and system maintenance plans.

D. Describe the waste management plan. The plan shall include waste disposal locations, security measures, methods of rendering all waste unusable and unrecognizable, and the process or vendor in charge of disposal.

4. The application should include the following information on the proposed location:

A. Physical address and a detailed description of the proposed location, including the overall property, building and interior floor plan.
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City of Chico - Application Procedures & Guidelines for Cannabis Business Permit – Storefront Retail Only 9 B. Description of all known nearby State and local sensitive use areas. The cannabis business must have the appropriate zoning and meet all the locational requirements as described in CMC Title 19.75.

C. Proof of ownership, lease agreement, or a “Letter of Intent” to lease.

D. Vicinity map.

E. Photographs of existing site and buildings on the property.

F. Evidence that the location has access to public transportation for employees or customers.

G. Site diagram for each proposed location, including at a minimum:
1) Location and dimensions of all buildings and structures – including square footage. 2) Location of all parking areas and driveways and means of ingress and egress to the property.
3) Uses for all buildings and structures indicated on the site plan. 4) If any exterior alterations are proposed for the existing building(s), attach proposed site plans.

H. Floor diagram for each proposed location, including at a minimum:
1) Interior and exterior walls and partitions, entrances and exits, rooms, doorways, and windows.
2) Dimensions and square footage of all interior spaces. 3) Proposed use of all interior spaces.

SECTION F: COMMUNITY BENEFITS AND INVESTMENTS PLAN
The CCB Application should describe the benefits 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. Benefits may be in the form of volunteer services, monetary donations, financial support of City-sponsored activities or organizations, in-kind donations to the City or other charitable organizations and/or any other economic incentives to the City.
*Should an applicant wish the financial information to be treated as confidential, they should clearly identify it on each page as such. However, applicants should be aware that the information may be subject to disclosure under Government Code Section 6254. **Security Plans will not be made public pursuant to Government Code Section 6254(f). 270
City of Redwood City - Application Procedures & Guidelines for Cannabis Business Permit – Storefront Retail Only 1 Redwood City
Office of the City Manager
1017 Middlefield Road
Redwood City, CA 94063
P: (650) 780-7204

APPLICATION PROCEDURES & GUIDELINES FOR A
CANNABIS BUSINESS PERMIT
Storefront Retailer Only
APPLICATION PERIOD
OPENS – January 11, 2021
CLOSES February 25, 2021 @ 4:00 PM
Information on the Cannabis Business Permit (CBP) process is available on the Redwood City (City) website at www.redwoodcity.org/CBP and includes the following:
§ City Manager’s Rules, Regulations and Process
§ RCMC Chapter 32, Article V, Division 7, and RCZO Article 5 § Cannabis Business Permit Application
§ Financial Responsibility, Indemnity and Consent
to Inspection Terms Agreement
§ Agreement of Limitations of City Liability
The application period to apply for a Cannabis Business Permit to operate storefront retail in the City will open on January 11, 2021, and will close on February 25, 2021 at 4:00 p.m. To be considered for issuance of a Cannabis Business Permit (CBP), applications must be submitted to the Police Department Front Desk located at 1301 Maple Street, Redwood City, CA 94063 by February 25, 2021 at 4:00 p.m. Late applications will not be accepted.

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 any updates.

ORIENTATION MEETING
The City will hold a “Kick Off” virtual orientation meeting on January 13, 2021 from 1pm-3pm. Pre-registration for the orientation meeting is highly recommended. The registration link is available at:
www.redwoodcity.org/CBP.

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 an update clarification, or as authorized in writing by the City Manager or their designee.

LIMITATIONS
Applicants possessing an ownership interest of ten percent (10%) or more in any one storefront retail cannabis business permit applicant will be limited to submitting a maximum of one application during the current application period.
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City of Redwood City - Application Procedures & Guidelines for Cannabis Business Permit – Storefront Retail Only 2 CITY’S RESERVATION OF RIGHTS
The City reserves the right to reject or deny any and all applications in accordance with RCMC Chapter 32, Article V, Division 7, City Manager’s Regulations or these procedures and guidelines. The City may modify, postpone, or cancel the application period or review process without liability, obligation, or commitment to any party, firm, or organization. In addition, the City reserves the right to request and obtain additional information from any Applicant submitting an application in order to conduct a complete review of the application or an investigation into the truthfulness of the statements set forth in the application or provided at any stage of the application process.

APPLICATION PROCESS
This application process is adopted pursuant to RCMC Chapter 32, Article V, Division 7, and the City Manager’s Regulations. 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 the information regarding the Cannabis Business Permit application process for storefront retailers on the City webpage provided on page one.

The following procedures outline the application evaluation and selection process, required materials, and other information necessary to apply for a Cannabis Business Permit to operate storefront retail in the City of Redwood City.

APPPLICATION SUBMITTAL REQUIREMENTS
Applications must respond to all requirements outlined in the “Application Procedures & Guidelines for a Cannabis Business Permit.” Applicants must submit all required application materials together in one complete comprehensive application package. This can be done in person, FED EX, UPS or any other common carrier delivery service but must be received by the deadline and a postmark will not be accepted as a timely submission.

The application package must include all the following documents with original signatures for each document. (a) Cannabis Business Permit Application;
(b) Financial Responsibility, Indemnity and Consent to Inspection Terms Agreement; (c) Agreement on Limitations of City’s Liability and Indemnification to City; and (d) Application fee and Background Check fee(s)
In addition, all Applicants must submit a USB flash drive containing one complete copy of the application submittals requirements as outlined in the below format. The application package and application fee must be received by the Police Department Front Desk no later than February 25, 2021 at 4:00 PM.

Responses to the Evaluation Criteria (Sections A-H found in Appendix A of the Application Procedures & Guidelines) shall be limited to 200 pages. Responses pertaining to Backgrounds, Proof of Capitalization, Zoning Verification Letter, and Property Owner Consent/Lease Agreement/Letter of Intention and Property Owner/Landlord Affidavit shall not be included in the 200-page limitation. Those responses should be saved in PDF files that are separate from the Evaluation Criteria (see below). All materials must be submitted on a USB flash drive in a PDF format in the following files:
272
City of Redwood City - Application Procedures & Guidelines for Cannabis Business Permit – Storefront Retail Only 3 • PDF File #1 – Cannabis Business Permit Application (pages 1-3), Financial Responsibility, Indemnity and Consent to Inspection Terms Agreement (pages F1-F3,) and Agreement on Limitations of City Liability and Indemnification to City (pages F4-F6) with required signatures for all four documents. • PDF File #2 – Evaluation Criteria (Responses to Sections A-H of Appendix A limited to 200 pages) • PDF File #3 – Background Check documentation (All required documents for each owner). Upon submission of the online background application, Applicants will receive an email confirmation. This confirmation needs to be printed, scanned, and included within PDF File #3. • PDF File #4 – Proof of Capitalization (All bank statements, loan documents, promissory notes, financial and commitment letters)
• PDF File #5 – Zoning Verification Letter
• PDF File #6 – A signed and notarized Property Owner Consent form, Lease Agreement, or a “Letter of Intention” to Lease and Property Owner/Landlord Affidavit.

FEES
All Applicants will be required to submit an application fee of $22,604 in which they will be charged for City staff and the Consultant’s time for reviewing applications and administrating the application process. Furthermore, all Applicants will be required to pay a Background Check fee of $1,259 per owner which will need to be included as a separate check with their application.

Payments made by a certified check, cashier’s check or money order must be made payable to the City of Redwood City. Please note the City will not accept cash due to the COVID-19 pandemic. Application fees are nonrefundable.

BACKGROUND CHECK
At the beginning of the application process, each Owner must undergo a background check to demonstrate they do not provide “good cause” for denial per RCMC Section 32.161 (B). This will consist of a background check by means of an online portal available on the City’s website at hdlcompanies.formstack.com/forms/bc redwood city. As a further reminder, Applicants will not be paying the background fee online, but instead will submit a separate check from the application fee along with the application. However, Applicants can make one check for all background checks if more than one individual is being processed.

Upon completing the online background check form, each applicant will be required to print an online receipt which must be submitted with the application as proof of completion. Owners who do not meet the background eligibility requirements of RCMC Section 32.161 (B) will be disqualified.

In the final stages of the application process, each owner of each successful Applicant selected by the City Manager or their designee will need to submit to a Live Scan prior to being issued a Cannabis Business Permit.

This will involve submitting fingerprints to the Redwood City Police Department. Each Applicant’s primary contact will be notified by email with the instructions on how to schedule the Live Scan appointment when the City Manager determines which Applicants will be awarded a permit.

ZONING VERIFICATION LETTER (ZVL) AND PROPERTY OWNER/LANDLORD AFFIDAVIT Applicants will be required to obtain a ZVL from the Community Development and Transportation Department as part of the application process. The letter will verify if the submitted site is eligible for cannabis storefront retail as outlined in RCZO Article 59. All locations shall be subject to a ZVL to confirm that the proposed location is properly zoned and meets all the minimum sensitive buffer requirements. Please be advised that the City will only consider one applicant per property. In addition to the ZVL, Applicant must submit a notarized affidavit from property owner 273
City of Redwood City - Application Procedures & Guidelines for Cannabis Business Permit – Storefront Retail Only 4 or landlord confirming that there is only one lease agreement/letter of intention to lease for the subject parcel and that said lease agreement/letter of intention to lease is with the subject applicant. Should the City receive multiple applications for the same property, all applications involving the same property will be disqualified.

ZVL requires a Planning Application (Link) to the Community Development and Transportation Department and will not be completed over the counter to allow for research and review. The review process typically takes approximately ten (10) working days. The ZVL will cost $129 and payment is due at the time of the appointment.

Please note the issuance of a ZVL does not constitute written evidence of permission given by the City of Redwood 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 Codes.

The ZVL is based on current zoning details known to the City at the time of the ZVL request. The cannabis business must have the appropriate zoning and meet all the locational requirements as described in RCZO Article 59 at the time of Cannabis Business Permit issuance.

PROOF OF INSURANCE AND INDEMNITY
The Applicant shall provide proof of insurance in the form of a certificate of insurance with the appropriate minimum coverage or proof of insurability as specified in the City’s Cannabis Business Permit Application form.

All Applicants are required to sign the Agreement on Limitations of City Liability and Indemnification to City, and by so doing they confirm their indemnification of the City and thereby release the City from liability for any claim arising from commercial cannabis activity generally, any repeal or amendment of the City Codes regarding commercial cannabis activity, or any related violation of state or federal laws.

APPLICATION REVIEW, SCORING AND SELECTION PROCESS
APPLICATION PERIOD (January 11 – February 25, 2021)
PHASE I: DETERMINATION OF COMPLETENESS
During Phase I, designees will review applications for completeness based on the criteria outlined in these procedures and as described in Appendix A. The primary contact listed on the application will be notified by e-mail if the application is found to be missing requirements. Applicants will be granted five days from the date of the email notification to submit the required missing information. Any application that remains incomplete at the conclusion of the five-day period will be denied. Additionally, any application with a ZVL showing that the proposed location is not properly zoned and/or does not meet all the minimum sensitive buffer requirements will be denied. Written notice of the denial will be emailed to the Applicant. Complete applications with eligible proposed locations will advance to Phase II.

PHASE II: CRITERIA EVALUATION AND SCORING (1,200 POINTS) During Phase II, designees will review and score each application using a merit-based system, based on the written materials provided and using the following categories and weighting (points per category):

A. Business Plan (400 Points)
B. Labor, Diversity, Equity, and Inclusion Plan (200 Points) C. Safety Plan (200 Points)
D. Security Plan (400 Points)
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City of Redwood City - Application Procedures & Guidelines for Cannabis Business Permit – Storefront Retail Only 5 See APPENDIX A for a description of the evaluation criteria for the specific categories scored in this phase.

The top twelve (12) Applicants which score a minimum of 90% or higher (1080 points) in Phase II will advance to Phase III.

PHASE III: FURTHER EVALUATION, INTERVIEWS AND SCORING (2,000 POINTS) During Phase III, a Selection Committee designated by the City Manager will review and score each application using a merit-based system, based on the written materials provided and the Applicants’ interview and using the following categories and weighting:

A. Qualifications of Owners (600 Points)
B. Labor, Diversity, Equity and Inclusion Plan (300 Points) C. Neighborhood Compatibility (400 Points)
D. Community Benefits and Investments Plan (400 Points) E. Proposed Location (300 Points)
See APPENDIX A for a description of the evaluation criteria for the specific categories scored in this phase.

Upon the completion of Phase III, the Selection Committee will tabulate the aggregate scores of all applicants from Phases II and Phase III to create a final ranking. However, Applicants will be forcedranked against other applicants in Phase III. Therefore, a numerical score alone will not necessarily determine the final results. The purpose of the rankings is to produce an Eligibility List, which the City Manager will use to make the final selection of permittee(s) and establishing a list of other prospective permittees in the event that an Applicant awarded a permit is disqualified or is unable to continue in the process for any reason.

PHASE IV: CITY MANAGER FINAL SELECTION
The City Manager shall receive the final scores, ranking and recommendations. Prior to the City Manager’s final selection of permittee(s), the City reserves the right to request and obtain additional information from any Applicant who advanced to Phase IV 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. The City Manager will review the totality of the records and decide which Applicants are to receive Cannabis Business Permits.

The City Manager may award only as many Cannabis Business Permits for storefront retail as allowed by the Redwood City Municipal Code. However, the City Manager reserves the right to award a lesser number of Cannabis Business Permits, or to award no permits at all. In addition, only those applicants on the Eligibility List will be eligible to be issued a Cannabis Business Permit from the storefront retail permit process.

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

LAND USE & BUILDING PERMIT PROCESS
When a use permit pursuant to Article 42 of the Zoning Ordinance is required in order to operate the cannabis storefront retail, the final selected applicant must apply for and receive a use permit. After any required use 275
City of Redwood City - Application Procedures & Guidelines for Cannabis Business Permit – Storefront Retail Only 6 permit is obtained, the Applicant may then submit for Building Permits for renovation or construction. If a use permit is not required in order to operate the cannabis storefront retail, the final selected applicant may immediately submit for Building Permits for renovation or construction.

Furthermore, being awarded a Cannabis Business 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 which includes:
electrical, plumbing, fire, planning permits or reviews, and any other permits, licenses, or reviews as may be required by the relevant departments or governmental entities in charge of said permits. Nor does it guarantee that the plans submitted via the application process meet the standards or requirements in RCMC Chapter 32, Article V, Division 7, RCZO Article 59 or any other permit requirements from other City departments or agencies.

CONTACT INFORMATION
If you have any questions or would like an update on the status of your application, please contact Susan Barnes in the Office of the City Manager at (650) 780-7204 or by email at [email protected]. 276
City of Redwood City - Application Procedures & Guidelines for Cannabis Business Permit – Storefront Retail Only 7 APPENDIX A: EVALUATION CRITERIA
The City is a public agency subject to the California Public Records Act (“CPRA”). In the event a request for information under the CPRA seeks disclosure of application materials marked by Applicant as “Confidential information,” the City will make reasonable efforts to provide notice to 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 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.

SECTION A: BUSINESS PLAN- Criteria to be scored in Phase 2

1. Finances – Provide a budget addressing construction, start-up, operational costs, 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.

A. Provide proof of capitalization, in the form of documentation of cash or other liquid assets on hand, Letters of Credit or other equivalent assets which can be verified by the City.

B. Provide a pro forma for at least three years of operations.

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

2. Daily Operations –Provide a Business Plan describing, in as much detail as possible, the day-to-day operations which meet industry best practices for a retail cannabis license. This plan should include at a minimum the following criteria:

A. Description of customer check-in procedures.

B. Identification of location and procedures for receiving deliveries during business hours.

C. Identification of the name of the Point-of-Sale system to be used and the number of Point-of-Sale locations.

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

E. Description of the proposed product line to be sold and estimate of the percentage of sales of flower and manufactured products.

F. If proposed, description of delivery service procedures, number of vehicles and product security during transportation.

G. Fully describe cash handling procedures, opening, mid-day, and closing procedures, whether cash will be stored on or offsite; security measures for storing on the premise and during transportation.

3. Describe how the business will conform to local and state laws. See RCMC Chapter 32, Article V, Division 7, RCZO Article 59 and the City Manager’s Regulations as they pertain to retail establishments in the City of Redwood City.

4. Describe how cannabis and cannabis products will be tracked and monitored to prevent diversion.

Describe the Point-of-Sale system to be used and how it will interact with the state’s mandated track and trace system.

SECTION B: LABOR, DIVERSITY, EQUITY & INCLUSION PLAN-Criteria to be scored in Phase 2 & 3

1. Describe to what extent the business will adhere to living wage and benefits standards and practices, including recognition of the collective bargaining rights of employees.

2. Identify the number of employees at initial opening and the maximum number of employees when the 277
City of Redwood City - Application Procedures & Guidelines for Cannabis Business Permit – Storefront Retail Only 8 business is at full capacity.

3. Describe any diversity, equity and inclusion plans and programs that will be developed as part of the business model which will create a rich and diverse work force with a diverse set of perspectives, work and life experiences and will provide equal opportunities for employee development.

4. Describe how the business will have local ownership or local preference in its hiring practices and how they plan to achieve this goal.

5. Identify all positions and their responsibilities.

6. Describe compensation to employees and opportunities for employees to participate in continuing education and training.

SECTION C: SAFETY PLAN - Criteria to be scored in Phase 2

1. Provide a detailed Safety Plan prepared by a California professional fire prevention and suppression consultant. This plan must describe all fire prevention and suppression measures, fire extinguisher locations, evacuation routes and alarm systems the facility will have in place.

2. Describe the business’ accident and incident reporting procedures.

3. Describe the business’ waste management locations and procedures.

4. Describe the business’ safety procedures and training for all fire and medical emergencies.

SECTION D: SECURITY PLAN- Criteria to be scored in Phase 2

1. Provide a security plan that was prepared by a professional security consultant. The plan should demonstrate how Applicant wishes to develop the floor plan and address other security issues on the property.

2. Premises Diagram: In addition to the site plans submitted for the response to Section F - Proposed Location, provide a Premises Diagram with the response to this Security Plan section of the application.

The diagram must meet the requirements of 16 CCR § 5006.

A. The diagram shall show the boundaries of the property and the proposed location to be licensed, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, windows, and doorways, and shall include a brief statement or description of the principal activity to be conducted therein.

B. The diagram shall show and identify commercial cannabis activities that will take place in each area of the premises and identify all limited-access areas.

C. The diagram shall show where all cameras are located and assign a number to each camera for identification purposes.

D. The diagram should be accurate, dimensioned and to-scale (minimum scale of 1/4”).

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

3. Provide a description of operational security, including but not limited to general security for access/visitor control, inventory control and cash handling procedures.

4. Provide a description of perimeter security, on-site security guards, light, and parking.

5. Identify transportation techniques and security procedures.

6. Describe employee training and general security policies.

SECTION E: NEIGHBORHOOD COMPATIBILITY PLAN- Criteria to be scored in Phase 3

1. Describe how the business will proactively engage with the surrounding neighborhood and address and respond to complaints related to noise, light, odor, vehicle, and pedestrian traffic.

2. Describe how the business will be managed to avoid becoming a nuisance or having impacts on its neighbors and the surrounding community.

3. Describe odor mitigation practices, including:
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City of Redwood City - Application Procedures & Guidelines for Cannabis Business Permit – Storefront Retail Only 9 A. Identification of potential sources of odor;
B. Description of odor control devices and techniques employed to ensure that odors from cannabis are not detectable beyond the licensed premises;
C. Description of all proposed staff training, and system maintenance plans; and D. Description of the waste management plan. The plan shall include waste disposal locations, security measures, methods of rendering all waste unusable and unrecognizable, and the vendor in charge of disposal.

SECTION F: PROPOSED LOCATION - Criteria to be scored in Phase 3 In addition to the location related details submitted in other sections of the application, provide the physical address and a thorough description of the proposed location, including but not limited to the overall property, building and floor plan. Applicant must provide:

A. A description of all known nearby State and local sensitive use areas.

B. A vicinity map.

C. Photographs of the existing site and building (including the front (street facing) side of the building) and surrounding buildings. In the event the proposed location is undeveloped land, photographs shall depict the property from all vantage points of the property.

D. Evidence that the location has access to public transportation for employees or customers.

E. A Premises (Site) Diagram for the proposed location, including at a minimum: i) Location and dimensions of all buildings and structures – including square footage, ii) Location of all parking areas and driveways and means of ingress and egress to the property, iii) Uses for all buildings and structures indicated on the site plan, and iv) If any exterior alterations are proposed for the existing buildings, attach proposed site plans. The premise/site diagram should focuses on the overall property, building and floor plan. (Blueprints and engineering site plans are not required at this point of the application process). A Premise (Site) Diagram must be accurate, dimensioned and to-scale (minimum scale of ¼”). The diagram shall provide a detailed description of all available/shared parking spaces, driveway locations, and auxiliary buildings on the parcel.

F. A description of interior and exterior walls and partitions, entrances and exits, rooms, doorways, and windows, including dimensions and square footage of all interior spaces and proposed use of all interior spaces.

SECTION G: COMMUNITY BENEFITS AND INVESTMENTS PLAN- Criteria to be scored in Phase 3 Describe the benefits the business will provide to the local community to address the City Council’s priorities in the 2020 Redwood City Strategic Plan, which include Housing-Homeless, Transportation and Children/Youth programs. This can be done for example by directly aiding, participating in, or funding the work of local non-profits, community-based organizations, civic organizations, or social services organizations. Benefits may be in the form of volunteer services, monetary donations, financial support of City-sponsored activities or organizations, in-kind donations to the City or other charitable organizations and/or any other economic incentives to the City.
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City of Redwood City - Application Procedures & Guidelines for Cannabis Business Permit – Storefront Retail Only 10 SECTION H: QUALIFICATIONS OF OWNERS -Criteria to be scored by City staff during Phase 3

1. Owners Experience – Provide any experience owners have in operating a retail establishment, a regulatory business, or managing employees. If owners have any experience operating a cannabis business, please provide the location of such activity and a copy of any permits, licenses, or other written forms of permission for such activity by a local or state government entity. In addition, list all college degrees, certificates, or professional licenses that owners have obtained which would demonstrate other technical knowledge that may guide them to successfully run a business organization.

2. Cannabis Industry Knowledge- Describe owners’ overall knowledge of the cannabis industry, including identification of how the industry best practices and state regulations have been incorporated in existing/prior legal businesses.

3. Ownership Team - Describe the involvement of the ownership team in the day-to-day operation of the business.

4. For purposes of this section, Evaluation Criteria Section H – Qualification of Owners - Owner shall be anyone who meets the definition of owner in RCMC § 32.158(S) or the State definition of owner set forth in 16 CCR § 5003.
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1 CHAPTER 6 COMMERCIAL CANNABIS ACTIVITY FOR RETAIL STOREFRONT AND

RETAIL DELIVERY
xxxx Title. This Ordinance shall be known and may be cited as “The Redondo Beach Commercial Cannabis Activity for Retail Storefront and Retail Delivery Ordinance” (the “Ordinance”).
xxxxx. Purpose and Intent. The purpose and intent of this Ordinance is to accommodate the needs of medically-ill persons in need of cannabis for medicinal purposes, as advised and recommended by their health care provider(s), and adults over the age of twenty-one (21), and to implement State of California (“State”) law, which includes, but is not limited to the provisions of the Medicinal & Adult-Use Cannabis Regulation & Safety Act (hereinafter, “MAUCRSA”), as may be amended and augmented under State law, while imposing regulations on the conduct of business and use of land to protect the City of Redondo Beach (the “City”) neighborhoods, residents, and businesses from negative impacts. It is a further purpose and intent of this Ordinance to regulate the commercial cannabis activity for retail storefront and retail delivery in a manner which is responsible, which protects the health, safety, and welfare of the residents of the City, and which enforces rules and regulations consistent with State law. In part to meet these objectives, a retail cannabis business permit shall be required to own or to operate a cannabis retailer within the City. Further, this Ordinance’s requirement for a cannabis retailer to possess a retail cannabis business permit is in addition to any other permits, licenses, and approvals which may be required to conduct business in the City, and is in addition to any permits, licenses, and approvals required under State or County of Los Angeles (“County”) law.

XXXXX. Legal Authority. Pursuant to Section 7 of Article XI of the State Constitution, and the provisions of the MAUCRSA, as may be amended and augmented under State law and any subsequent State legislation regarding the same, the City is authorized to adopt ordinances that establish standards, requirements, and regulations for local licenses and permits for commercial cannabis activity for retail storefront and retail delivery. Except as otherwise provided in this Ordinance, any standards, requirements, and regulations regarding health and safety, security, and worker protections established by the State, or any of its departments or divisions, shall be the minimum standards applicable to the retail sale of cannabis and cannabis products in the City.
xxxxx. Commercial Cannabis Activities Prohibited Unless Specifically Authorized by this Chapter. Except as specifically authorized by this Chapter, microbusinesses, commercial cultivation, manufacturing, processing, storing, laboratory testing, labeling, delivery, distribution, or transportation, of cannabis or cannabis products is expressly prohibited in the City.
xxxxxxx. Chapter 6 (Licensing and Business Regulations) of the City Municipal Code is hereby amended by adding Chapter 6 (Commercial Cannabis Activity for Retail Storefront and Retail Delivery) to read as follows:
§ 6-6.01. Definitions.

The technical terms and phrases used in this chapter are defined in Redondo Beach Municipal Code Section 102.1626. (§ 3, Ord. 3240 c.s., eff. October 6, 2022) and are restated as follows:
"A-license" means a State license issued under this section for cannabis or cannabis products that are intended for adults 21 years of age and over and who do not possess physician's 310
2 recommendations.
"A-licensee" means any person holding a license under this section for cannabis or cannabis products that are intended for adults 21 years of age and over and who do not possess physician's recommendations.
"Act" shall mean the California Medicinal and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA"), as in Business and Professions Code Section 26000 et seq., as amended from time to time.
"Applicant" shall mean and refer to a person applying for a permit pursuant to this section. “Business License” means the required City Business License to operate in the City of Redondo Beach.
“Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this section, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the Health and Safety Code. For the purpose of this section "cannabis" and "marijuana" shall have the same meaning.
"Cannabis accessories" means any equipment, products or materials of any kind which are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, smoking, vaporizing, or containing cannabis, or for ingesting, inhaling, or otherwise introducing cannabis or cannabis products into the human body.
"Cannabis product" means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.
"Cannabis retailer" means a commercial cannabis business where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale, including an establishment that delivers, pursuant to express authorization, cannabis and cannabis products as part of a retail sale, and where the operator holds a valid commercial cannabis business permit from the City of Redondo Beach authorizing the operation of a retailer, and a valid State license as required by State law to operate as a retailer.
"Caregiver" or "primary caregiver" has the same meaning as the term is defined in Section 11362.7 of the State Health and Safety Code.
"City" means the City of Redondo Beach.
"City Council " or "Council" means the City Council of the City of Redondo Beach. "City Manager" means the City Manager of the City of Redondo Beach. 311
3 "Commercial cannabis activity" includes only storefront retail sale of cannabis and retail delivery of cannabis products; and excludes the cultivation, manufacturing, distribution, processing, storing, laboratory testing, labeling, transportation, distribution, and all activities that are not explicitly expressed in this Section 6.xxx
"Commercial Cannabis Retail Permit" means the permit issued by the City under RBMC Chapter 6-2. Note: RBMC Titles to be updated when Finalized "Conditional Use Permit" means the permit issued by the City under RBMC Section 10-5.2506. "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
"Cultivation site" means a location where cannabis is planted, grown, harvested, dried, cured, graded or trimmed, or a location where any combination of those activities occurs. "Customer" means a natural person 21 years of age or over or a natural person 18 years of age or older who possesses a physician's recommendation.
“Day Care Center” or “Childcare Facility” means a facility, other than a family day care home, serving infant, toddler, preschool, and school age children, licensed by the State Department of Social Services pursuant to Section 1596.951 of the State Health & Safety Code. Pursuant to the authority delegated by the State to the City under Section 26054(b) of the State Business & Professions Code, this definition of “Day Care Center” under this Chapter 6xx shall override the definition of “Day Care Center” in MAUCRSA at Section 26001 of the State Business & Professions Code.
"Delivery" means the commercial transfer of cannabis or cannabis products to a customer. "Delivery" also includes the use by a retailer of any technology platform owned and controlled by the retailer, or independently licensed under this section that enables customers to arrange for or facilitate the commercial transfer by a licensed retailer of cannabis or cannabis products (or a microbusiness engaging in retail sales). "Department" means the Department of Cannabis Control within the Department of Consumer Affairs, formerly named the Bureau of Cannabis Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Cannabis Regulation. "Dispensary" or "storefront retailer" means a location where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale, including an establishment that delivers cannabis and cannabis products.
"Distribution" means the procurement, sale, and transport of cannabis and cannabis products between licensees.
"Edible cannabis product" means cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Section 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section 109935 of the Health and Safety Code.
"Gross receipts" means, except as otherwise specifically provided herein, whether designated as a sales price, royalty, rent, commission, dividend, or other designation, the total amount (including all receipts, cash, credits, and property of any kind or nature) received or payable for sales of goods, wares, or merchandise without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor, or service costs, interest 312
4 paid or payable, losses, or any other expense whatsoever. However, the following shall be excluded from gross receipts:
(a) Cash discounts where allowed and taken on sales;
(b) tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;
(c) Such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts;
(d) Receipts derived from the occasional sale of used, obsolete, or surplus trade fixtures, machinery, or other equipment used by the taxpayer in the regular course of the taxpayer's business;
(e) Cash value of sales, trades, or transactions between departments or units of the same business;
(f) Whenever there are included within the gross receipts amounts which reflect sales for which credit is extended and such amount proved uncollectible in a given year, those amounts may be excluded from the gross receipts in the year they prove to be uncollectible; provided, however, if the whole or portion of such amounts excluded as uncollectible are subsequently collected, they shall be included in the amount of gross receipts for the period when they are recovered; and
(g) Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded when in excess of one dollar. "Hearing officer" means the Permit Administrator or designee, who shall preside over administrative hearings.
“Liquid Assets” means assets that can be readily converted into cash. “Liquid assets” include, but are not limited to, the following: funds in checking or savings accounts, certificates of deposit, money market accounts, mutual fund shares, publicly traded stocks, and United States savings bonds. “Liquid assets” does not mean household items, furniture and equipment, vehicles, cannabis or cannabis products, business inventory, or real property and improvements thereto.

Insert definition of M-license
"Manufacture" means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.
"Manufacturer" means a person that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or re- labels its container, that holds a State license pursuant to this section.
"Medicinal cannabis" means cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), California Health and Safety Code Section 11362.5, by a medicinal cannabis patient in California who possesses a physician's recommendation.
313
5 "Medicinal delivery" means the commercial transfer of medicinal cannabis to a customer that possesses a physician's recommendation. "Medicinal delivery" also includes the use by a retailer of any technology platform owned and controlled by the retailer, or independently licensed under this section that enables customers to arrange for or facilitate the commercial transfer by a licensed retailer of cannabis or cannabis products. "Nursery" means a license that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis. "Operation" means any act for which any State or local licensure is required under the provisions of this section or any commercial transfer of cannabis or cannabis products. "Owner" means any of the following:
(a) All persons identified as an "owner" on any permit, license, or other authorization issued by a state agency or local government which authorizes the persons to establish and operate the cannabis facility.
(b) Any person identified or required to be identified as an "owner" on an application filed with any state agency and any local government, wherein the application requests the privilege to operate the cannabis facility.
(c) An Owner is further defined as follows:
(1) A person who has any ownership interest in the corporate entity, partnership, or other business entity applying for a permit or a permittee, regardless of percentage of ownership; unless the interest is solely a security, lien, or encumbrance.
(2) The chief executive officer of a nonprofit or other entity. (3) A member of the board of directors of a nonprofit.
(4) An individual who will be participating in the direction, control, or management of the person applying for a permit. A member of the board of directors of a nonprofit. (5) An individual who will be participating in the direction, control, or management of the person applying for a permit.
"Package" means any container or receptacle used for holding cannabis or cannabis products. "Permit administrator" means the City Manager or his/her designee. "Permittee" means a person who has obtained a Commercial Cannabis Permit from the City to operate a cannabis business.
"Person" includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular. "Physician's recommendation" means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code. "Premises" means the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or licensee where the commercial cannabis activity will be or is conducted. "Private residence" means a house, an apartment unit, a mobile home, or other similar dwelling. “Public Park” means an outdoor premises containing existing or proposed parks, including 314
6 community parks, neighborhood parks, mini-parks, and urban parks that are currently or proposed to be owned or operated by the City or other governmental agency. “Public Park” shall not include any youth center.
"Purchaser" means the customer who is engaged in a transaction for purposes of obtaining cannabis or cannabis products.
"Qualified delivery service" is one that has been licensed pursuant to the requirements of California Business and Professions Code Section 26050, maintains at all times while operating in the City of Redondo Beach all necessary State licenses, and operates in compliance with State and local law.
“School” means as evidenced and licensed by the State Department of Education school directory, a public school instructing children in grades kindergarten through 12, as authorized by the State Department of Education, or a private school instructing children in grades kindergarten through 12 that has filed a verification of private school affidavit with the State Department of Education pursuant to Section 33190 of the State Education Code; excluding any private school in which education is primarily conducted in a private home. Pursuant to the authority delegated by the State to the City under Section 26054(b) of the State Business & Professions Code, this definition of “school” under this Chapter 6- xx shall override the definition of “school” used in MAUCRSA or Section 11362.768 of the Health & Safety Code.
"Sell," "sale," and "to sell" includes any transaction whereby, for any consideration, title to cannabis is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom such cannabis or cannabis product was purchased.
"State license" means a State license issued under this section, and includes both an A-license and an M-license, as well as a testing laboratory license. "State licensee" means any person holding a license under this section, regardless of whether the license held is an A-license or an M-license, and includes the holder of a testing laboratory license.
"State licensing authority" means the State agency responsible for the issuance, renewal, or reinstatement of the license, or the State agency authorized to take disciplinary action against the licensee.
"Testing laboratory" means a laboratory, facility, or entity in the State that offers or performs tests of cannabis or cannabis products and that is both of the following:
(a) Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the State.
(b) Licensed by the Department.
"Testing service" means a laboratory, facility, or entity in the State, that offers or performs tests of cannabis or cannabis products, including the equipment provided by such laboratory, facility, or entity, and that is both of the following:
(a) Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the State.
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7 (b) Registered with the State Department of Public Health. “Youth Center” means any facility that is operated by a public agency or nonprofit entity with the sole purpose of providing educational and/or recreational services to minors. “Youth Center” shall not include any a) private martial arts, yoga, ballet, music, or similar studio of this nature, or (b) any private athletic training facility, pizza parlor, restaurant, video arcade, dentist office, or doctor’s office primarily serving children. Pursuant to the authority delegated by the State to the City under Section 26054(b) of the State Business & Professions Code, this definition of “Youth Center” under this Chapter 6-xx shall override the definition of “Youth Center” in MAUCRSA at Section 26001 of the State Business & Professions Code.

§ 6-6.02. Commercial cannabis permit required to engage in commercial cannabis activity for retail storefront and retail delivery
No person may operate a commercial cannabis business or engage in commercial cannabis activity within the City of Redondo Beach, including retail storefront sales and retail delivery, unless the person (1) has a valid commercial cannabis retailer permit from the City of Redondo Beach; (2) has any and all valid State or local permits and licenses; and 3) is currently in compliance with all applicable State and local laws and regulations pertaining to the commercial cannabis business and the commercial cannabis activity, including holding the necessary State licenses to engage in commercial cannabis activity. (§ 3, Ord. 3240 c.s., eff.

October 6, 2022)
Section 6.xxxx Commercial cannabis retailer regulation
(a) Commercial Cannabis Retailer Permit required. A cannabis retailer must obtain and maintain at all times a valid Commercial Cannabis Permit as required pursuant to Redondo Beach Municipal Code Title 6, Chapter 6.
(b) Conditional Use Permit and Zoning.
(1) A Conditional Use Permit is required to establish a cannabis business or operate as a cannabis retailer subject to the standards contained in Municipal Code Section 10-2.2506. Cannabis retailers shall be required to comply with all zoning, land use, and development regulations applicable to the zoning district in which they are permitted to establish and operate such business as set forth in the Redondo Beach Municipal Code.
(2) The cannabis retailer is not required to obtain a Conditional Use Permit prior to applying for a Commercial Cannabis Permit.
(3) If a cannabis retailer is authorized by Conditional Use Permit to operate a cannabis business on a particular site and such operation is discontinued for a continuous period of 12 months, the Conditional Use Permit expires for discontinuance of use and thereafter is void.
(c) Number of retailers. No more than two (2) sites may be used for storefront commercial cannabis retailers at any time. Those sites may be concurrently licensed to provide commercial retail delivery.

Section 6..xxxx Location Zoning Requirements.
(a) Cannabis retailers shall be permitted only in commercial and industrial zones, 316
8 specifically limited to the C-1, C-2, C-2A, C-2B, C-2PD, C-3, C-3A, C-3B, C3PD, C-4, C-4A, C-4B, C-4PD, C-5A, CR, I-1, I-1A, I-1B, I-2, I-2A, and IC-1 zones. Cannabis retailers are prohibited in Coastal Commercial zones.

Cannabis retailers are prohibited in any public-institutional zones and zones where residential is permitted.
(b) No retailer shall be established or located within 1,000 feet, measured from the nearest property lines of each of the affected parcels, of any other cannabis retailer. (c) No retailer shall be established or located within 1,500 feet of any public or private high school or middle school, measured from the nearest property lines of each of the affected parcels. However, once a Permittee has been granted a valid commercial cannabis retailer permit by the City of Redondo Beach and is also in full compliance with the requirements of 6-6.02, the fact that any public or private high school or middle school opens within 1,500 feet of that Permittee’s existing commercial cannabis business will not require Permittee’s business to relocate as a result. (d) No retailer shall be established or located within 600 feet from California State Licensed public or private elementary schools, day care centers, and youth centers, measured from the nearest property lines of each of the affected parcels. However, once a Permittee has been granted a valid commercial cannabis retailer permit by the City of Redondo Beach and is also in full compliance with the requirements of 6-6.02, the fact that any California State Licensed public or private elementary schools, day care centers, or youth centers open within 1,500 feet of that Permittee’s existing commercial cannabis business will not require Permittee’s business to relocate as a result. (e) The distances specified in this Section 6-xxx shall be the horizontal distance measured in a straight line from the parcel line of the sensitive use to the closest parcel line of the lot on which the cannabis retailer is to be located without regard to intervening structures.
(f) Each Council District shall only have one (1) cannabis retail site. (g) No permitted cannabis retailer may operate from a location that has previously been enforced upon for illegal cannabis activities, for a minimum of five (5) years from the passing of this ordinance or from the date of the violation, whichever is later. 6xxxxx: Change in Location; Updated Application Information. (a) A permittee may change the business location specified in a retail cannabis business permit upon submission of a change in location to the Permit Administrator pursuant to regulations adopted under Chapter 6xxx and only after a minimum of three (3) years of operation at the business location specified in the retail cannabis business permit. The permittee shall pay a nonrefundable application fee established by resolution of the City Council to cover all costs incurred by the City in the review and processing of change in location applications. Upon submission of a change in location application by a permittee, the Permit Administrator shall, as a ministerial duty, complete processing of such change in location application. If a change in location application is incomplete or the proposed changed location contained therein does not comply with location and zoning requirements in Xxx 6xxxxx and this Xxxxxx, the Permit Administrator shall, as a ministerial duty, deny the change 317
9 in location application. If a change in location application is complete and the proposed changed location contained therein complies with location and zoning requirements in Xxxxxx 6xxxxx and this Xxxxxxxx, the Permit Administrator shall bring forth the application to the City Council to approve or deny the change in location application.
(b) In addition to the location and zoning requirements in Xxxxxx 6xxxx permittee may not change the business location specified in a retail cannabis business permit to any property located within 1,000 feet from any cannabis retailer permitted under this Chapter 6xxxxx; within 1,500 feet of any public or private high school or middle school; or within 600 feet from California State Licensed public or private elementary schools, day care centers, and youth centers. The distance specified in this shall be the horizontal distance measured in a straight line from the parcel line of the cannabis retailer permitted under this Chapter 6xxxxxxx to the closest parcel line of the lot on which the cannabis retailer is proposed to be located without regard to intervening structures. § 6-6.03. Application procedure.
a. The City may, in its sole discretion, approve and direct the issuance of a notice inviting applications, a request for applications, or similar solicitation inviting persons interested in operating commercial cannabis activities in the City.
b. Whether to issue a solicitation for applications, and whether to approve or deny any such application shall be subject to the sole and absolute discretion of the City Council. The manner of accepting applications, the manner of application review, shall be determined by the Permit Administrator or designee. The criteria utilized in evaluating or scoring any application shall be that specified in this chapter, elsewhere in the Redondo Beach Municipal Code, or in the solicitation for applications issued by the City Council. Subject to the discretion of the City Council, the solicitation may include provisions pertaining to: the information required to be submitted by applicants, including, but not limited to, the application information specified in the regulations for a license from the Department, the City's application review, vetting, and approval processes; the review and scoring criteria that will be utilized by the City in distinguishing among applicants; applicant background checks and verification requirements; conditions of approval; security features and requirements; operating guidelines, standards, limitations, and requirements; site improvement obligations; maintenance requirements; book, accounting, and record keeping requirements; and/or a Commercial Cannabis Retail Permit for Retail Cannabis.
c. A Commercial Cannabis Retail Permit for Retail Cannabis approved by the City Council is required before any person operates a retail site or retail delivery in the City. Said Commercial Cannabis Retail Permit shall set forth the terms and conditions under which the commercial cannabis activities may be undertaken, in addition to the terms and conditions otherwise set forth in this chapter. Subject to the 318
10 agreement of any State permittee and approval of the City Council, such additional terms and conditions of the Commercial Cannabis Retail Permit may include, but are not limited to, public outreach and education requirements, community service requirements, the payment of mutually agreeable fees and charges, development and operating plans (including site plan, floor plan, and elevations), security measures, operating standards and procedures, site location and design standards, and such other terms and conditions as may be agreed upon by a permittee and the City Council, as well as those that the City Council deems necessary to protect and promote the public health, safety, and welfare of the community.
d. No person or entity shall operate a retail site until a Conditional Use Permit has been approved by the Planning Commission or City Council. The application process for the Conditional Use Permit shall be the same as is generally applicable to Conditional Use Permits in the City. provided that a Commercial Cannabis Retail Permit between the permittee and the City shall be a condition precedent to approving a Conditional Use Permit.
e. Nothing in this chapter is intended or shall be construed as requiring the City Council to approve any commercial cannabis activities in the City. No application will be accepted except during the times specified by the City Council in a solicitation for applications. The City Council's solicitation for, review of, and approval of any application for a Commercial Cannabis Retail Permit is discretionary, and nothing in this chapter is intended or shall be interpreted as rendering commercial cannabis activities a "by-right" land use in the City. (§ 3, Ord. 3240 c.s., eff. October 6, 2022.
f. The Permit Administrator, pursuant to Section 6.xx, shall, as a ministerial duty, make available the necessary forms, adopt any necessary application rules for the submission, intake, review, and approval of retail cannabis business permit applications for retailers up to the number of retail cannabis business permits authorized in Section 6-xx.
g. The Permit Administrator shall, as a ministerial duty, cease acceptance of retail cannabis business permit applications sixty (60) days after making available the necessary forms and adopting any necessary application rules for the submission, intake, review, and approval of retail cannabis business permit applications for retailers. h. The Permit Administrator shall, as a ministerial duty, review timely submitted retailer applications for the following minimum requirements:
i. Payment of a non-refundable application fee established by resolution of the City Council;
ii. Sufficient evidence of the legal right to use the proposed property 319
11 for the proposed use, to include ownership, a lease, sublease, purchase agreement, assignment of purchase agreement, or lease or purchase option, in the name of the applicant, which may include nominal consideration and be contingent upon issuance of a retail cannabis business permit or other approvals. The City shall only consider one applicant per County Assessor’s Identification Number. In the event that more than one applicant applies for a retail cannabis business permit application at a given property address or a given County Assessor’s Identification Number, the Permit Administrator shall, as a ministerial duty, only accept the retail cannabis business permit application with the legal ability to control the site, including written approval by the fee owner of the land and building, landlord, and any lien holders of record on the property, that cannabis retail sales and retail delivery are permitted.
iii. Demonstration that the proposed property complies with location and zoning requirements described in the Application Guidelines and the Zoning Verification letter required as part of the Application, evidenced with a report created and produced by a licensed surveyor;
iv. Proof of funds showing that the Applicant has access and control of over $2,000,000.00 in liquid assets (which such liquid assets having been under possession for at least ninety (90) days prior to the date of the application submission under this Section), which may be shown via a binding legal agreement in the name of the Applicant such as a promissory note so long as said legal agreement is accompanied by a proof of funds in the name of a party to the agreement so long as that demonstrates access and control of over $2,000,000.00 in liquid assets under possession for at least ninety (90) days prior to the date of the application submission under this Section. Applicants and Permittees shall not be required to show that the Applicant or Permittee has access and control of over $2,000,000.00 in liquid assets except on initial application pursuant to this Section 6xxxxxxx.7, a change in location application pursuant to Section 6xxx, or an ownership transfer application pursuant to Section 6-xxx.
v. A set of plans, including a site development plan, floor plan(s), building elevations (all four (4) sides), and a conceptual landscape plan with the percentage of landscaping in the parking lot, setback areas, and tree size and species;
vi. Colored interior and elevation renderings;
vii. A completed background check application and receipt for each owner and manager of the Applicant pursuant to Section 6-xxx; and
viii. The following application components: (a) Qualifications of the Applicant’s owners and managers; (b) business and operations plan; (c) security plan; (d) safety plan; (e) neighborhood compatibility plan; and (f) labor and employment plan.
i. An applicant or permittee shall notify the Permit Administrator within fifteen (15) calendar days, and prior to the application window closing, of any material 320
12 change in the information provided in the applicant or permittee’s retail cannabis business permit application or any change in status of compliance with the provisions of this Chapter 6xxxxx including any change in the cannabis retailer ownership or management.
j. Within fifteen (15) calendar days, and prior to the application window closing, of any other change in the information provided in the updated application form or any change in status of compliance with the provisions of this chapter, including any change in the cannabis business ownership or management members, the applicant shall file an updated application form with the Permit Administrator for review along with an application amendment fee.
k. The Permit Administrator shall, as a ministerial duty, reject any retail cannabis business permit application that fails to meet the minimum requirements contained in this Chapter 6xxxx, and applicants shall not have the right to supplement or amend their retail cannabis business permit applications once the Permit Administrator has closed the window to submit an application.

6.xxxx Application Scoring and Selection Process
(a) An application evaluation committee composed of at a minimum three individuals with demonstrated experience in city government and with no business interests in the City of Redondo Beach shall be appointed by the Permit Administrator to review and score any complete applications pursuant to the following objective review criteria, according to the following quantitative evaluation scale that holds a total criteria value of 1,000 points. Each application will be independently scored by the evaluation committee members.
(1) Qualifications of the Applicant’s Owners and Managers – 200 points The 200 points awardable under this Subsection 1 shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
a. Up to 100 points - demonstrates cannabis retailer operations and ownership in California, that has taxable gross sales of $10,000,000/year per store.
b. Up to 50 points - demonstrates business operations and ownership in California providing services with annual gross revenue of $5,000,000/year.
c. Up to 50 points - A description of the Applicant’s owner(s) and manager(s) qualifications detailing any experience operating cannabis retailers in any jurisdiction where cannabis retailers are permitted or special business or professional qualifications or licenses of the applicant’s owner(s) and manager(s) that would add to the quality of services that the cannabis retailer would provide, including in areas related to cannabis, such as legal, finance, business ownership/administration, waste management, real estate development, scientific, or healthcare or wellness fields. (2) Plans, renderings, and overall location – 150 points 321
13 The City Council finds that the further a cannabis retailer is located away from youth centers, the better a cannabis retailer will carry out the purpose and intent of the Ordinance (in particular the use of land to protect the City’s neighborhoods, residents, and businesses from negative impacts) and that the sensitive use buffer for youth centers contained in Section 6.xxx is a minimum rather than an ideal distance to carry out the purpose and intent of the Ordinance. Accordingly, 75 of the 150 points available under this Subsection 2 will be awarded, as a ministerial duty, if the Applicant’s proposed cannabis retailer is located more than 1,500 feet from any youth centers, as identified and measured in accordance with the Location Zoning Requirements in Section 6-xxx and Section xx of the Ordinance, and confirmed by a report from a licensed surveyor included in the application.

The remaining 75 of the 150 points awardable under this Subsection 2 shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
a. Up to 10 points – A premise diagram in accordance with Section 5006 of Division 42 of Title 16 of the State Code of Regulations. b. Up to 10 points – A site development plan that provides information on existing conditions and proposed improvements to the site and how it meets or will meet the development standards outlined in Chapter xx of the City Municipal Code, including adequate parking. Information on existing conditions shall include:

1. Exterior photographs showing all sides of any existing structure(s);

2. Photographs of existing parking areas, landscaping, trash enclosure, and signage;

3. Information on existing use on the site, including the addresses, uses, and square footages.

4. Photographs of the existing site if the site is vacant; and

5. Photographs of adjacent properties for context.
c. Up to 15 points – A floor plan showing information on the existing layout and proposed layout of the building interior.
d. Up to 20 points – Building elevations that provide information on existing conditions and proposed improvements.
e. Up to 10 points – A conceptual landscape plan with the percentage of landscaping in the parking lot, setback areas, and tree size and species. f. Up to 10 points – Colored interior renderings and exterior elevation renderings (for both existing and/or proposed improvements). (3) Business and operations plan – 100 points
The 100 points awardable under this Subsection 3. shall be awarded, as a 322
14 ministerial duty, pursuant to the following objective criteria:
a. Up to 5 points – A written description of the total square footage of the facility with estimated square footage of proposed uses. b. Up to 10 points – A schedule for beginning operations, including a narrative outlining any proposed construction improvements and a timeline for completion.
c. Up to 15 points – A budget for construction, operation, maintenance, compensation of employees, equipment costs, utility costs, and other operating costs.
d. Up to 10 points – A description of the sources(s) of capital and use(s) of capital.
e. Up to 10 points – Pro forma financial statements for at least three (3) years of operation.
f. Up to 10 points – A description of the type of products to be sold and the estimated quantity and value of product(s) to be sold.
g. Up to 15 points – A description of marketing procedures and tactics. h. Up to 5 points – A description of day-to-day operations that should acknowledge both state and local laws and should be consistent with industry best practices.
i. Up to 5 points – A description of hours of operation and opening procedures.
j. Up to 5 points – A description of cash handling procedures. k. Up to 5 points – A description of inventory control procedures to include identification of point-of-sale systems, and track and trace software. l. Up to 5 points – A description of transportation, loading and unloading, distribution, or delivery procedures.
(4) Security plan – 150 points
The 100 points awardable under this Subsection 4. shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
a. Up to 30 points – The security plan shall be prepared by a professional security consultant.
b. Up to 20 points – A premises security diagram.
c. Up to 50 points – A description of access control, inventory control, cash handling, and other security procedures and security equipment demonstrating compliance with the security requirements under this Chapter 6xxx. 323
15 d. Up to 25 points – A description of the intrusion alarm and monitoring system including the name and contact information for the monitoring company. e. Up to 25 points – A description of the services of on-site security guards to include the (1) number of security guards; (2) the hours security guards will be on-site; (3) locations where security will be positioned; and (4) security guard responsibilities.
(5) Safety plan – 100 points
The 100 points awardable under this Subsection 5. shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
a. Up to 20 points – The safety plan shall be prepared by a professional fire prevention and suppression consultant.
b. Up to 10 points – A premises safety diagram to include (1) a description/illustration of evacuation routes and (2) location of fire extinguishers and other fire suppression equipment.
c. Up to 50 points – A description of safety procedures, training for emergency situations, and safety equipment demonstrating compliance with the safety requirements under this Chapter 6xxx.
d. Up to 10 points – Identify all gases, pesticides, and chemicals to be used and their storage locations.
e. Up to 10 points – A description of the firm alarm and monitoring system including the name and contact information for the monitoring company. (6) Neighborhood compatibility plan – 150 points
The 150 points awardable under this Subsection 6. shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
(a) Up to 75 points – A “Good Neighbor Policy” that (1) includes policies and measures in place to protect adjacent uses from any potential impacts (e.g., noise, light, odor, traffic, etc.) related to the proposed cannabis retailer, including addressing parking and traffic impacts and (2) describes how the cannabis retailer and its operating characteristics will be proactively managed so the business is not detrimental to the public health, safety, convenience, or welfare of persons residing, working, visiting, or recreating in the surrounding area and will not result in the creation of a nuisance. (b) Up to 25 points – A description of odor mitigation practices to include: (1) identifying potential sources of odor; (2) a description of odor control devices and techniques employed to ensure that odors from cannabis are not detectable beyond the permitted premises; and (3) all proposed staff odor training and system maintenance.
(c) Up to 25 points – A description of a waste management plan that includes waste disposal locations within the proposed premises and the 324
16 applicant’s security measures and methods of rendering waste unusable and unrecognizable.
(d) Up to 25 points – A description of efforts at sustainability/environmental impact mitigation.

7. Community Benefit Plan – 50 Points
The 50 points awardable under this Subsection 7. shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
(a) Up to 25 points – A description of a social responsibility plan to include identification of a community liaison and plans to aide and participate in the work of local non-profits, community-based organizations, civic organizations, or social service organizations.
(b) Up to 25 points – A description of a plan to develop a public health outreach and educational program that outlines the risks of youth use of cannabis and that identifies resources available to youth related to drugs and drug addiction.

8. Labor and employment plan – 100 points
The 100 points awardable under this Subsection 8. shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
(a) Up to 10 points – An organizational chart of showing owners, managers, and employees.
(b) Up to 10 points – A description of the owner’s and manager’s roles in day-to-day operations and decisions.
(c) Up to 10 points – A description of the number of employees, title/position, and their respective responsibilities
(d) Up to 20 points – A description of compensation to employees, opportunities for continuing education, and employee training. (e) Up to 20 points – A description of whether the cannabis retailer is committed to offering employees a living wage.
(f) Up to 20 points – A description of benefits provided to employees such as health care, vacation, and medical leave, to the degree they are offered as part of employment.
(g) Up to 10 points – A description of a plan to recruit employees from socially and economically disadvantaged backgrounds.
x Upon timely receipt of a retail cannabis business permit application, the Permit Administrator shall conduct background checks in accordance with Section 6.xxx. x The Permit Administrator, as a ministerial duty, shall have all applications rated 325
17 using the included standardized criteria in Section 6.xxxx to be used on each application. The top five (5) rated applicants will be invited to give a ten (10) -minute presentation before the City Council for consideration of award of Commercial Cannabis Retail Permit. The City Council will select up to two (2) of the top five (5) rated applicants for the award of a Commercial Cannabis Retail Permit. x Applicants not selected to present to City Council can appeal the preliminary rating to the Permit Administrator per Section XXXXXXX.
x The City Council selection of the issuance of up to two (2) permits will be binding.

Any appeal to this portion of the selection process will go through judicial review and remedies.
x In so issuing commercial retail cannabis business permits to applicants up to the number of retail cannabis business permits authorized in Section 6xxx at its sole discretion, the City Council shall have the absolute discretion to (1) award retail cannabis business permits in accordance with the ranking order of applicants or in accordance with its own determination following the presentations made by the applicants to the City Council and (2) issue the retail cannabis business permits. x However, the City Council shall not issue or will revoke a retail cannabis business permit to any applicant with an owner or manager that:
o Provided false or misleading information on the applicant’s retail cannabis business permit application;
o Has been convicted of (or pled no contest to) “an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made” as that term is defined in 26057(b)(4) of the State Business & Professions Code; or
Has been sanctioned by a licensing authority or a city, county, or state for unlicensed commercial cannabis activities or has had a license suspended or revoked under MAUCRSA in the three (3) years immediately preceding the date the application was submitted.
o In the event that the City Council is ordered to increase the number of retail cannabis business permits issued for retailers by a court of competent jurisdiction as a judicial remedy, the Permit Administrator shall, as a ministerial duty, reinstitute the application procedure under this Section 6-xxx, subject to the number of retail cannabis business permits for retailers authorized and available (not allocated to an active, lawfully operating retailer) for issuance. In the event that the number of active, operating retailers and issued retail cannabis business permits falls below the number of retail cannabis business permits for retailers authorized in Section 6.xxx, the City Council may, at its sole discretion, require the Permit Administrator, as a ministerial duty, to reinstitute the application procedure under this Section 6-xxx, subject to the number of retail cannabis business permits for retailers authorized and available (not allocated to an active, lawfully operating retailer) for issuance. For the purpose of this Section, a retailer shall be considered operating if (1) upon initial issuance of retail cannabis business permit (or approval of a change in location pursuant to Section 6.xxx), the retailer commences lawful operations within twelve (12) months (subject to the Permit Administrator providing extensions in his or her reasonable discretion if the permittee 326
18 can demonstrate that the delay was due to situations beyond its control and/or that significant progress towards establishing the use has been made) or (2) following initial commencement of lawful operations, the retailer does not cease or abandon operations for one-hundred twenty (120) consecutive or cumulative days in any one (1) year period. A retailer’s failure to commence lawful operations within twelve (12) months or following initial commencement of lawful operations, the retailer abandons operations for one-hundred twenty (120) consecutive or cumulative days in any one (1) year period shall be considered a material violation of this Chapter 6.xxx and terminated.

6.xxx: Retail Cannabis Business Permit Term.
a. Subject to this Section 6.xxx and Section 6.xxx, the term of each retail cannabis business permit shall be five (5) years, unless the permit is revoked by the City for any reason authorized by this Chapter 6.xx. Each permit may be extended for two (2) additional two-year terms twice administratively by the Permit Administrator. Permits that are extended twice administratively may request an extension of up to five (5) years by application to the City Council. The process for requesting such extensions shall be approved by the City Council by resolution prior to the expiration of the initial five (5) year term.
b. Upon the one (1) year anniversary of the date of issuance for each retail cannabis business permits and each year thereafter, the Permit Administrator shall conduct a performance review of the permittee to assess compliance with the requirements of this Chapter 6.xx. Within thirty (30) days of the conclusion of the annual performance review of the permittee, the Permit Administrator shall issue a letter of compliance or noncompliance outlining all items to be corrected to ensure full compliance. In the event of any noncompliance, the permittee shall have sixty (60) days to remedy such noncompliance. However, in the event such noncompliance items cannot be remedied within sixty (60) days, such noncompliance items shall not constitute a material violation of any law and/or any rule, regulation, and/or standard adopted pursuant to this Chapter 6.xxx subject to suspension or revocation under Section 6.xx if the permittee commences correction of such noncompliance items within sixty (60) days and thereafter diligently prosecutes correction of such noncompliance items to completion. The Permit Administrator shall have the final discretion and authority to determine whether a permittee is working diligently to correct all noncompliance items in a timely manner.
c. The permittee shall pay a non-refundable fee in an amount to be set by the City Council via resolution to cover the costs of conducting the performance review, together with any costs incurred by the City to administer the program created under this Chapter 6.xx.
§ 6-6.17. Suspension, revocation or modification of permits. (a) Commercial cannabis permits may be suspended, revoked or modified for any violation of any State or local law and/or any rule, regulation, and/or standard adopted pursuant to this chapter or in this Code, whether committed by the permittee or any employee or agent of the permittee.
(b) A decision of the City to suspend, revoke or modify a commercial cannabis permit is appealable to the Hearing Officer and any appeal must be filed with the Permit 327
19 Administrator per Section XXXXXX.
(1) The City Clerk shall not accept an appeal, and no hearing shall be held, unless the appellant has paid a filing fee, in an amount set by resolution of the City Council, to defray the cost of such appeal. Any appeal without the timely payment of fees shall be considered to be untimely and void.
(2) The scope of the appeal hearing pursuant to this section shall be limited to those issues raised by the appellant in the written appeal, as submitted pursuant to XXXXX. (3) Upon receipt of a timely filed appeal, the City Clerk shall set the matter for hearing before the Permit Administrator. The hearing shall be held not fewer than 15 calendar days and not more than 30 calendar days from the date of the appeal request. The hearing may be continued from time to time upon the mutual consent of the parties. (4) The appellant shall be provided with notice of the time and place of the appeal hearing, as well as a copy of all relevant materials at least 15 calendar days prior to the hearing. (5) An appeal shall stay all proceedings in furtherance of the appealed action. Following appeal, the decision of the hearing officer may be appealed to the City Council. A decision of the City Council shall be the final decision of the City. (c) Any premises, or portion of a premises, for which the cannabis public health permit has been suspended or revoked shall close, cease doing business, and remain closed until the cannabis Health Permit has been reinstated or reissued by the County Health Officer.
(d) Additionally, when there is an imminent threat to public health, safety or welfare, the Permit Administrator or designee, may take immediate action to temporarily suspend a commercial cannabis permit issued by the City, pending a hearing before the Permit Administrator or designee within 10 working days of suspension. The decision of the Permit Administrator may be appealed to the City Council, whose decision shall be final.
(§ 3, Ord. 3240 c.s., eff. October 6, 2022 )
e. If the State of California or its respective department or division reinstates or reissues the state license, the cannabis business may seek reinstatement of its cannabis business permit if the business can demonstrate that the grounds for revocation of the license by the state no longer exist or that the underlying deficiency has otherwise been cured. f. Abandonment of permit. If the cannabis business has not been in regular and continuous operation in the preceding four months at the permitted location, the cannabis business permit shall be considered abandoned, unless mitigating circumstance occur which was beyond the control of the permittee and an extension has been authorized by the Permit Administrator.
g. Suspension or revocation of a State license issued by the State or by any of its departments or divisions, corresponding to the retail cannabis business permit shall immediately result in the suspension of the associated retail cannabis business permit until the State, or its applicable department or division, reinstates the State license or otherwise lifts such suspension.
h. A permittee shall inform the Permit Administrator or designee(s) of any suspension, revocation, or termination of a State license corresponding to its retail cannabis business permit within five (5) business days of the suspension, revocation, or termination of the State license.
328
20 6.XXX Reapplying for a cannabis business permit.

If an applicant is denied a permit due to a disqualifying factor including, but not limited to, failing a background check or not complying with any state, or local jurisdictions regulatory requirements in which legal or administrative action has been taken, a new application may not be filed by the applicant for one year from the date of the denial.

This xxxxx shall not apply to an approved applicant that is not awarded a permit resulting from the City not selecting them in an application process with a finite number of available permits.
6XXXX Building permits and inspection.

Prior to commencing operations, a cannabis business permittee shall be subject to a mandatory building inspection and must obtain all required permits and approvals which would otherwise be required for any business of the same size and intensity operating in that zone. This includes but is not limited to obtaining any required building permit(s), Fire Department approvals, Police Department approval, Code Enforcement, Planning, and County Health Department approvals, and any other applicable zoning and land use permit(s) and approvals.
§ 6-6.04. Fees and charges.
(a) Each applicant or permittee shall timely and fully pay all fees set forth in this chapter. Failure of an applicant to pay the requisite fees is grounds for denial, and the failure of a permittee to pay the requisite fees shall constitute a breach and default of the Commercial Cannabis Retail Permit , and is grounds for revocation of the Conditional Use Permit. Except as otherwise provided herein, the amount of each fee shall be established by resolution of the City Council.
(1) Application fee to cover the City's costs incurred in the initial acceptance and review of an application for a Commercial Cannabis Retail Permit, due and payable in full at the time an application is submitted. (a) Processing fee(s) to cover the costs incurred in the review, investigation, scoring, and/or selection of an applicant for the award of a Commercial Cannabis Retail Permit shall be due and payable in full at the time an application is submitted. The City may charge a separate processing fee for each round of the application review and selection process. Such Agreement shall be granted in accordance with evaluation criteria specified by the City Council in a notice inviting applications, a request for proposal ("RFP"), or similar solicitation. (b) In addition to the fees specified in subsection (a), applicants and permittees shall timely pay all other applicable fees, including, but not limited to, fees associated with processing applications for Conditional Use Permits, Commercial Cannabis Retail Permit , building permits, and plan checks. (c) In addition to the fees set forth in this chapter, a Commercial Cannabis Retail Permit requires for a permittee to pay the City a fair share contribution towards the City's costs incurred. Such costs may include, without limitation, enforcing the provisions of this chapter, inspecting for and remediating any direct or secondary negative impacts of the commercial cannabis activities, and mitigating impacts to the City's existing public facilities caused by the commercial cannabis facility. If applicable, the remediation payments 329
21 described in this chapter shall be memorialized in an agreement, and paid by a permittee to the City in strict accordance with the terms thereof. (§ 3, Ord. 3240 c.s., eff. October 6, 2022 )
(d) No person may commence or continue any cannabis retail sales in the City without timely paying in full all fees and charges required for the operation of a cannabis retail sales. Fees and charges associated with the operation of such activity shall be established by resolution of the City Council which may be amended from time to time.
(e) All cannabis retailers authorized to operate under this Chapter 6xxxxxxx shall pay all sales, use, business and other applicable taxes, and all license, registration, and other fees required under federal, State, and local law.

Each cannabis retailer shall cooperate with City with respect to any reasonable request to audit the cannabis retailer’ books and records for the purpose of verifying compliance with this Section 6.xx, including, but not limited to, a verification of the amount of taxes required to be paid during any period.
(f) A tax of 3% of gross receipts is required of each Permit. Such tax may be increased up to 9% by City Council action at any time.
6XXXXX City business license certificate.

A. Prior to commencing operations, a cannabis business shall obtain a City of Redondo Beach business license certificate.
§ 6-6.05. Operating standards.
(a) Permittees, and the premises upon which commercial cannabis activities are operated, shall strictly comply with this chapter, the Development Agreement, the Conditional Use Permit, the Act, and anything else required by the Department or the State licensing authority. To the extent of a conflict among any of the foregoing, the more restrictive provision shall control unless a different intent is clear from context.
(b) All premises where commercial cannabis activities are operated shall comply with the following minimum development and operating standards:
(1) Commercial cannabis activities shall occur in a fully enclosed and permanent building, as described in this chapter.
(2) Persons under the age of 21 shall be prohibited from the premises at all times, other than as lawful customers permitted under State law in the case of medicinal cannabis retailers. If such retail establishment sells medicinal cannabis, persons under the age of 21 and over the age of 18 shall be permitted to enter the establishment only after verification that they possess a valid medical marijuana ID card.
(3) A premises shall notify patrons of the following through the posting of a sign outside the premises posted in a conspicuous location near the entrance of the building:
a. That patrons must immediately leave the site upon concluding the reason for their visit, and may not consume cannabis or cannabis 330
22 products on the premises.
b. That patrons may be subject to prosecution under Federal law. c. That the use of cannabis or cannabis products may impair a person's ability to drive a motor vehicle or operate machinery. (4) Permittees shall provide the name and phone number of an on-site staff person who shall be responsible for notification of any operational problems or emergencies associated with the premises or the operation thereof to the Police Department and Permit Administrator (5) All commercial cannabis businesses shall be operated within the specific part of the premises specified in the Development Agreement and/or Conditional Use Permit. No commercial cannabis activities shall take place in an area exceeding the square footage authorized in the controlling Agreement, Conditional Use Permit, or the licensee's license; whichever is most restrictive.
(6) All exterior windows, doors, loading and unloading docks or bays, and any points of ingress or egress to the premises where the commercial cannabis business will be operated, shall be secured from unauthorized entry by commercial grade, nonresidential locks, and in a manner specifically approved by the Police Department. The exterior of each of the foregoing areas shall be illuminated during twilight hours. (7) The ingress and egress points of any storage areas for cannabis or cannabis products shall be locked and secured at all times, and shall be under the control of and accessible only to the permittee's authorized personnel as disclosed to the City.
(8) Each permittee shall implement a track-and-trace system, compliant with the Act, to record the chain of supply of cannabis or cannabis products from "seed- to-sale." Each cannabis retailer shall have in place a point-ofsale or management inventory tracking system to track and report on all aspects of the cannabis retailer including, but not limited to, such matters as cannabis tracking, inventory data, gross sales (by weight and by sale), and other information which may be deemed necessary by the City. The cannabis retailer shall ensure that such information is compatible with the City’s record-keeping systems as well as the State Mandated Track and Trace requirements and systems. In addition, the system must have the capability to produce historical transactional data for review. Furthermore, any system selected must be approved and authorized by the Permit Administrator prior to being used by a permittee.
(9) The exterior appearance of the premises, including, but not limited to, the design, color, landscaping, screening, architectural treatments, signage, and other such aesthetic features of the premises shall comply with the standards applicable to the underlying zoning district, as may be modified or supplemented through the Agreement and/or Conditional Use Permit.

Except as modified herein, or in a Agreement or Conditional Use Permit, the premises shall comply with the development standards applicable to the underlying zoning district.
(10) Signage
331
23 x All exterior signage on the premises shall comply with city standards and Conditional Use Permit.
x In addition to the requirements otherwise set forth in this Section 6.xx, business identification signage for a cannabis retailer shall conform to the requirements of the City Municipal Code, including, but not limited to, seeking the issuance of a City sign permit.
x No signs placed on the premises of a cannabis retailer shall obstruct any entrance or exit to the building or any window.
x Each entrance to a cannabis retailer shall be visibly posted with a clear and legible notice indicating that smoking, ingesting, or otherwise consuming cannabis on the premises, or in the areas adjacent to the premises, is prohibited.
x The entrance to the cannabis retailer shall be clearly and legibly posted with a notice that no person under the age of twenty-one (21) years of age is permitted to enter upon the premises of the cannabis retailer, other than as lawful customers permitted under State law.
x No cannabis or cannabis products or graphics depicting cannabis or cannabis products shall be visible from the exterior of any property issued a retail cannabis business permit or on any of the vehicles owned or used as part of the cannabis retailer. No outdoor storage of cannabis or cannabis products is permitted at any time.
(11) The exterior of the premises shall comply with the City's generally applicable lighting standards including, without limitation, fixture type, wattage, illumination levels, shielding; and associated approvals and permits. The exterior appearance of the premises, including, but not limited to, the design, color, landscaping, screening, architectural treatments, signage, and other such aesthetic features of the premises shall comply with the standards applicable to the underlying zoning district, as may be modified or supplemented through the Conditional Use Permit. Except as modified herein, or by the Conditional Use Permit, the premises shall comply with the development standards applicable to the underlying zoning district.
(12) All waste generated by or resulting from commercial cannabis activities shall be disposed of as required by law, and pending disposal such waste shall be stored in a locked and secure area that is under the control of and accessible only to the permittee's authorized personnel. (13) On-site sales of alcohol or tobacco products, and consumption of food, alcohol, tobacco, cannabis, or cannabis products on the premises is strictly prohibited except that employees may eat in an area separate from the sales floor on their breaks.
(14) The premises shall provide an odor absorbing ventilation and exhaust system so that odor generated inside the structure where commercial cannabis activities are taking place cannot be detected outside the structure, anywhere on adjacent property, public rights-of-way, or within any other unit or structure on the premises where commercial cannabis activities are not taking place. Odor control devices and techniques shall 332
24 be incorporated in all cannabis retailers to ensure that odors from cannabis are not detectable off-site. Cannabis retailers shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the cannabis retailer that is distinctive to its operation is not detected outside of the facility, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building as the cannabis retailer. (15) Be provided with adequate electricity, sewerage, disposal, water, fire protection, and storm drainage facilities for the intended purpose. (16) Whether or not applicants have obtained a property for the purposes of their commercial cannabis business prior to their selection, shall have no bearing on their selection.
(17) The Permit Administrator shall have the power and authority to promulgate rules, regulations, and requirements consistent with the provisions of this chapter and other law in connection with the issuance of a registration certificate. The Permit Administrator may designate an employee of his or her department to make decisions and investigate and act pursuant to this chapter.
(§ 3, Ord. 3240 c.s., eff. October 6, 2022 )
x Permittees, and the premises upon which commercial cannabis activities are operated, shall strictly comply with this chapter, the Conditional Use Permit, the Act, and anything else required by the Department or the State licensing authority. To the extent of a conflict among any of the foregoing, the more restrictive provision shall control unless a different intent is clear from context. x Cannabis retailers may operate only during the hours specified in the retail cannabis business permit issued by the City and must comply with State law at all times.
x There shall not be a physician located in any cannabis retailer at any time for the purpose of evaluating patients for the issuance of a medicinal cannabis recommendations.
x A premises shall notify patrons of the following through the posting of a sign outside the premises posted in a conspicuous location near the entrance of the building:
a) That patrons must immediately leave the site upon concluding the reason for their visit, and may not consume cannabis or cannabis products on the premises.
b) That patrons may be subject to prosecution under Federal law. c) That the use of cannabis or cannabis products may impair a person's ability to drive a motor vehicle or operate machinery. x Permittees shall provide the name and phone number of an on-site staff person who shall be responsible for notification of any operational problems or emergencies associated with the premises or the operation 333
25 thereof to the Police Department and Permit Administrator. x All commercial cannabis businesses shall be operated within the specific part of the premises specified in the Conditional Use Permit. No commercial cannabis activities shall take place in an area exceeding the square footage authorized in the Conditional Use Permit, or the licensee's Commercial Cannabis Retail Permit; whichever is most restrictive.
x All exterior windows, doors, loading and unloading docks or bays, and any points of ingress or egress to the premises where the commercial cannabis business will be operated, shall be secured from unauthorized entry by commercial grade, nonresidential locks, and in a manner specifically approved by the Police Department. The exterior of each of the foregoing areas shall be illuminated during twilight hours.

A cannabis retailer shall notify the Permit Administrator within twenty-four (24) hours after discovering any of the following:

1. Significant discrepancies identified during inventory. The level of significance shall be determined by the regulations promulgated by the Permit Administrator.

2. Diversion, theft, loss, or any criminal activity involving the cannabis retailer or any agent or employee of the cannabis retailer.

3. The loss or unauthorized alteration of records related to cannabis and cannabis products or registering customers or employees and/or agents of the cannabis retailer.

4. Any other breach of security.

All cannabis and cannabis products sold and/or distributed shall be cultivated, manufactured, and distributed by licensed facilities that maintain operations in full conformance with the State and local regulations. The packaging and labeling of cannabis and cannabis products shall comply at all times with State law.

Other than as lawful customers permitted under State law in the case of retailers, individuals under the age of twenty-one (21) years shall not be allowed on the premises of a cannabis retailer and shall not be allowed to serve as a driver for a cannabis retailer. It shall be unlawful and a violation of this Chapter 6.xx for any person to employ any person at a cannabis retailer who is not at least twenty-one (21) years of age.

The original copy of the retail cannabis business permit issued by the City pursuant to this Chapter 6.xxx and the City issued business license shall be posted inside the cannabis retailer in a location readily visible to the public.

Maintain insurance at coverage limits, and with conditions thereon determined necessary and appropriate from time to time by the City Attorney. 6xxxx: Community Relations.
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26 a. Each cannabis retailer shall provide the name, telephone number, and email address of a community relations contact to whom notice of problems associated with the cannabis retailer can be provided. Each cannabis retailer shall also provide the above information to all businesses and residences, in the City, located within one hundred and fifty (150) feet of the cannabis retailer. Such community relations contact shall respond to any complaints within forty-eight (48) hours of receipt of such complaints. b. During the first year of operation pursuant to this Chapter 6xxxxxxx, the owner(s), manager(s), and community relations representative from each cannabis retailer holding a retail cannabis business permit issued pursuant to this Chapter 6xxxxxxx shall attend a quarterly meeting with the Permit Administrator and other interested parties as deemed appropriate by the Permit Administrator, to discuss costs, benefits, and other community issues arising as a result of implementation of this Chapter 6xxxxxxx. After the first year of operation, the owner(s), manager(s), and community relations representative from each such cannabis retailer shall meet with the Permit Administrator when and as requested by the Permit Administrator.
c. Cannabis retailers to which a retail cannabis business permit is issued pursuant to this Chapter 6xxxxxxx shall develop and make available to youth organizations and educational institutions a public education plan that outlines the risks of youth addiction to cannabis, and that identifies resources available to youth related to drugs and drug addiction. 6XXX Permissible delivery locations and customers.

A. Cannabis delivery businesses permitted to engage in delivery of cannabis and cannabis products inside the City of Redondo Beach are subject to the following requirements:

B. A permitted cannabis business shall not deliver cannabis goods to an address located on publicly owned land or any address on land or in a building leased by a public agency.

C. A permitted cannabis business shall comply with all requirements of state and local law pertaining to the cannabis business permit and all subsequent policies, procedures and regulations which may be amended by the Permit Administrator from time to in order to enforce this chapter.

D. Any kiosk, i-Pad, tablet, smartphone, fixed location or technology platform, whether manned or unmanned, other than a retail location permitted by the city, that facilitates, directs, or assists the retail sale or delivery of cannabis or cannabis products is prohibited and shall be a violation of this Chapter.
6XXXX Operating requirements for Out-of-City delivery services.

A. All cannabis businesses which conduct deliveries into or within the City of Redondo Beach shall be required to obtain a permit from the City of Redondo Beach in order to conduct retail sales regardless of whether they are located in the City or another local jurisdiction.

B. Prior to commencing operations, a cannabis out-of-City delivery service shall comply with the following requirements:

1. Obtain from the City a permit authorizing the delivery of cannabis and cannabis products within the City limits. A copy of this permit shall be retained by all drivers.
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27 2. The retail business operating the delivery service shall provide the Permit Administrator with evidence of a valid state and local license for a cannabis business on whose authorization the delivery service is performing the delivery function.

3. The retail business operating the delivery service shall furnish to the Permit Administrator the year, make, model, license plate number, and numerical Vehicle Identification Number (VIN) for any and all vehicles that will be used to deliver cannabis goods.

C. Operating hours of the out-of-City delivery service shall be limited to the hours of 9:00 a.m. through 9:00 p.m., seven days a week. § 6-6.06. No transfer or change in ownership
Permittees may not sell, transfer, pledge, assign, grant an option, or otherwise dispose of, in whole or in part, their rights under or interest in a Permit. It is strictly prohibited for any owner to sell, transfer, pledge, assign, grant an option, or otherwise dispose of, in whole or in part, their ownership interest in the licensed cannabis business for a minimum period of three (3) years from the start of operation. No permittee may allow for a separate entity to manage or operate their business or act as their agent in their place.

The permittee may only transfer ownership after the initial period of time and with prior discretionary approval of the City Council. Before approving any such request, the City may require the purchaser, assignee, or transferee to provide the same information and materials that are required of an initial applicant, including the payment of associated fees.

A. The owner of a cannabis business permit shall not transfer ownership or control of the permit to another person or entity unless and until the transferee obtains an amendment to the permit from the Permit Administrator stating that the transferee is now the permittee.

1. Such an amendment may be obtained only if the transferee files an application with the Permit Administrator in accordance with the provisions of this chapter (as though the transferee were applying for an original cannabis business permit).

2. The proposed transferee's application shall be accompanied by a transfer fee in an amount set by resolution of the City Council (or if not set, shall be the same amount as the application fee).

3. The transferee's application will be treated as a new application and will be evaluated according to procedures adopted by the Permit Administrator, pursuant to Chapter 6XXXXX.

B. Cannabis business permits issued through the grant of a transfer by the Permit Administrator shall be valid for a period of one year beginning on the day the Permit Administrator approves the transfer of the permit.

C. Before the transferee's permit expires, the transferee shall apply for a renewal permit and pay the appropriate fee in the manner required by this chapter.

D. A Cannabis business permit shall not be transferred when the City has notified the permittee in writing that the permit has been or may be suspended or revoked.

E. Any attempt to transfer a cannabis business permit either directly or indirectly in violation of this Section XXXXXXX is hereby declared a violation of the permit and this chapter. Such a purported transfer shall be deemed a ground for revocation 336
28 of the permit.

F. Permittees shall not have a common owner. (§ 3, Ord. 3240 c.s., eff. October 6, 2022
6XXX Location
(a) Before exercising any rights, permittees shall demonstrate proof of lawful possession of the premises where commercial cannabis activities are proposed to take place. Such evidence shall consist of properly executed deeds of trust, leases, licenses, or similar documents evidencing the permittee's right to possession and use of the premises. Subject to the criteria specified by the City Council in its solicitation for applications, at shall be awarded contingent upon an applicant's subsequent identification of a premises that is acceptable to the City; or, subject to an applicant's provision of an option, letter of intent, or similar instrument executed by the current owner of the proposed premises in favor of a permittee or applicant, authorizing commercial cannabis activities to be operated therein. (b) Commercial cannabis activities may only take place within the area, building, structure, and portion of the premises that is specifically described in a Conditional Use Permit. A permittee shall not relocate, move, or otherwise alter the location of its operations from the specific area so identified without obtaining prior approval from the City; regardless of any possessory interest or right to possession to such additional areas. No permittee shall add additional or contiguous units or areas, thereby altering the initially approved premises, without prior approval of the City Council.
(c) The permittee shall not sublet, transfer, or otherwise assign any portion of any approved premises for any purpose, unless the City Council grants prior approval of such amendment.
(d) The permittee shall not make any physical change, alternation, or modification to the approved premises that, in the opinion or discretion of the building official, materially or substantively alters the location or usage of the premises from the plans approved in the Commercial Cannabis Retail Permit and/or Conditional Use Permit, without the advanced approval of the City Council. For purposes of this subsection, the phrase "materially or substantively alters" means any physical change, alternation, or modification to the area of the premises identified in the Commercial Cannabis Retail Permit or Conditional Use Permit for the operation of commercial cannabis activities that either: (1) increases the capacity or scope of commercial cannabis activities by 5% or more; or (2) requires a building permit. (e) If the proposed location will be leased from the property owner, the applicant shall be required to provide a signed and notarized statement from the owner and all lien holders of the property, acknowledging that the property owner and all lien holders have read this chapter and consents to the operation of the retail cannabis business on the owner's property.
§ 6-6.07. Minimum security requirements.

Permittees shall comply with the security standards and requirements set forth in this chapter, the Commercial Cannabis Retail Permit, the Conditional Use Permit, and the 337
29 Act. If any of the foregoing are inconsistent, the most restrictive provision shall control unless a different intent is clear from context.
(a) Security standards are as follows:
(1) Owner shall establish a security system that prevents individuals from remaining on the premises of the commercial cannabis business if they are not engaging in an activity directly related to the permitted operations of the commercial cannabis business and establishing limited access areas accessible only to authorized commercial cannabis business personnel.
(2) Panic buttons shall be installed in all commercial cannabis businesses. (3) Sensors shall be installed to detect entry and exit from all secure areas. (4) Each commercial cannabis business shall have the capability to remain secure during a power outage and shall ensure that all access doors are not solely controlled by an electronic access panel to ensure that locks are not released during a power outage.
(5) All security personnel shall be vetted through and approved by the Police Department.
(b) All premises where commercial cannabis activities are operated and their personnel shall comply with the following minimum-security standards:
(1) Security cameras.
a. Security cameras shall be installed and maintained on the premises in a good working condition, and shall be capable of producing digitally recorded documentation in a format approved by the Police Department.
b. All security cameras on the premises shall be in use 24 hours per day, seven days per week. Permittees are responsible for ensuring that all surveillance equipment is properly functioning and maintained so that the playback quality is suitable for viewing and the surveillance equipment is capturing the identity of all individuals and activities in the monitored areas.
c. All video surveillance equipment shall have sufficient battery backup to support a minimum of four hours of recording in the event of a power outage.
d. The areas of the premises to be covered by the security cameras include, but are not limited to: (i) all storage areas for cannabis or cannabis products; (ii) all areas where commercial cannabis activities are operated;
(iii) each location where weighing, packaging, transport, preparation, or tagging activities occur; (iv) the interior and exterior of all points of ingress or egress to storage areas; (v) all doors and windows; (vi) loading and unloading bays, the interior and exterior of all points of ingress or
egress to the structure on the premises where commercial cannabis activities are operated; and (vii) all points of ingress or 338
30 egress to the premises.
e. Surveillance recording equipment must be housed in a designated, locked, and secured room or other enclosure with access limited to authorized employees or local law enforcement agencies for appropriate purposes.
f. All entrances and exits to the facility shall be recorded from both indoor and outdoor vantage points.
g. At least one camera shall be dedicated to recording the access points to the secured surveillance recording area.
h. Permittees shall keep a current list of all authorized employees and personnel who have access to the surveillance system and/or room on the premises.
i. Permittees shall keep a surveillance equipment maintenance activity log to record all service activity, including the identity of the individual performing the service, the service date and time, and the reason for service. Such records shall be maintained on the premises and shall be made available to the City upon request. j. The system shall be capable of recording all pre-determined surveillance areas in any lighting conditions.
k. Video surveillance equipment shall, at a minimum, consist of digital or network video recorders, cameras capable of meeting the requirements described in this chapter, video monitors, digital archiving devices, a color printer, and the capability to produce still color photograph from any camera image, live or recorded. The date and time shall be embedded on all surveillance recordings without significantly obscuring the picture. The time on the surveillance video is to be measured in accordance with the official United States time established by the National Institute of Standards and Technology and the U.S. Naval Observatory. l. Video surveillance systems must be equipped with a failure notification system that provides prompt notification of any prolonged surveillance interruption and/or the complete failure of the surveillance system to the permittee and Police Department. m. All surveillance recordings must be kept for a minimum of 90 days and be in a format that can be easily accessed for viewing. Video recordings must be archived in a format that ensures authentication of the recording as a legitimately captured video, and ensures no alteration of the recorded image has taken place.
n. After the 90-day surveillance video retention period has lapsed, surveillance video recordings must be erased or destroyed prior to being discarded or disposed of for any other purposes. Surveillance video recordings may not be destroyed if the permitee(s) knows, or should have known of a pending criminal, civil, or administrative investigation, or any other proceedings for which the recording may contain relevant information.
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31 o. Upon request, permittees shall make available to the Police Department or local law enforcement agency, for law enforcement purposes, all information related to security alarm systems, recordings, monitoring, and/or system activity.
p. Permittees may utilize off-site monitoring and video recording storage, or an independent third-party service, to satisfy the requirements of this chapter, provided the standards exercised at the remote location meet or exceed all standards for on-site monitoring set forth herein.
q. The cannabis business shall be responsible for ensuring that the security surveillance camera footage is compatible with the City's software and hardware and remotely accessible by the Chief of Police. Alarm systems shall send real time alerts directly to the Police Department.
(2) Alarm system.
a. The premises shall be equipped with a reliable, commercial alarm system that is operated and monitored by a security company or alarm business 24 hours a day, seven days a week, operating in full compliance with this chapter.
b. Permittees shall maintain on the premises up to date and current records and existing contracts with third party alarm system or security services providers that: (1) describe the location and operation of each security alarm system; (2) a schematic of security zones; (3) the name of the alarm company, and, if different from the name of the alarm company; (4) the name of any vendor monitoring the premises.
c. At a minimum, the alarm system shall monitor all exterior points of access into the structure on the premises where commercial cannabis activities are operated, including but not limited to windows and doors.
(3) Security guard. At all times a premises is open to the public, at least one security guard shall be present who is licensed, possesses a valid Department of Consumer Affairs' "security guard card."
(4) Records. All records applicable to the surveillance system, alarm system, and track-and-trace system shall be maintained on the premises, and available for inspection upon request by the Police Department or other local law enforcement personnel for law enforcement purposes or to ensure compliance with this chapter, the Act, or the regulations(§ 3, Ord. 3240 c.s., eff. October 6, 2022 ) § 6-6.08. County Health Permit.

The City shall work with the County of Los Angeles to adopt the County's Cannabis Compliance and Enforcement Program and require the City's cannabis permittees to obtain the County's Health Permit prior to operation.(§ 3, Ord. 3240 c.s., eff. October 6, 2022 )
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32 1) Any premises, or portion of a premises, for which the cannabis public health permit has been suspended or revoked shall close, cease doing business, and remain closed until the cannabis Health Permit has been reinstated or reissued by the County Health Officer.
6xxx: Permittee, owner, and property owner responsible for violations. a. Each permittee and each owner and each manager of the permittee (and each individual owner and each individual manager of an owner or manager of the permittee) shall be responsible for any and all violations of the laws of the State or of the regulations and/or the ordinances of the City occurring within the City or in or about the premises of the cannabis retailer, if committed by the permittee or any employee or agent of the permittee and whether or not said violations occur within the permittee, owner, or manager’s presence. b. No person may engage in any cannabis retail sales within the City unless the person is in compliance with the requirements of this Chapter 6xx. c. It shall be unlawful to rent, lease, or otherwise permit any cannabis retail sales at any location, structure, or vehicle in the City by a person (1) that does not have a valid retail cannabis business permit issued by the City; (2) that does not have a valid State license; (3) that does not have any other applicable approvals, including, but not limited to, a building permit and City business license; or (4) that is not currently in compliance with all applicable State and local laws and regulations pertaining to the cannabis retail sales. Property owners shall have strict liability for any cannabis retail sales at any location, structure, or vehicle in the City by a person (1) that does not have a valid retail cannabis business permit issued by the City or (2) that does not have a valid State license. 6-xxxx: Violations Declared a Public Nuisance.

1. Each and every material violation of the provisions of this Chapter 6xxx is hereby deemed unlawful and a public nuisance subject to all remedies and enforcement measures authorized by the City Municipal Code.
6xxxx: Each Violation a Separate Offense.
1) Each and every violation of this Chapter 6-xxx shall constitute a separate violation and shall be subject to all remedies and enforcement measures authorized by the City Municipal Code. Additionally, as a nuisance per se, any material violation of this Chapter 6-xxxx shall be subject to injunctive relief, any retail cannabis business permit issued pursuant to this Chapter 6xxx being deemed null and void, disgorgement, and payment to the City of any monies unlawfully obtained, costs of abatement, costs of investigation, attorney’s fees, and any other relief or remedy available at law or in equity. The City may also pursue any and all remedies and actions available and applicable under State and local laws for any violations committed by the cannabis retailer or persons related to, or associated with, the cannabis retail sales. Additionally, when there is determined to be an imminent threat to public health, safety or welfare, the Permit Administrator or designee(s), may take immediate action to temporarily suspend a retail cannabis business permit issued by the City, pending a public hearing before the City Council. 6xxxx: Remedies Cumulative and Not Exclusive.
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33 The remedies provided herein are not to be construed as exclusive remedies. The City is authorized to pursue any proceedings or remedies provided by law § 6-6.09. Criminal penalties.
(a) Any violation of any provision of this chapter shall be deemed a misdemeanor and shall be enforced pursuant to Title 1, Chapter 2 of Redondo Beach Municipal Code.
(b) Separate offenses for each day. Any person who violates any provision of this chapter shall be guilty of a separate offense for each and every day during any portion of which any such person commits, continues, permits, or causes a violation thereof, and shall be penalized accordingly. (c) Use or activity prohibited by State law. Nothing in this chapter shall be deemed to permit or authorize any use or activity which is otherwise prohibited by State law.
(§ 3, Ord. 3240 c.s., eff. October 6, 2022 )
(d) Each and every material violation of the provisions of this Chapter 6xxxx may be prosecuted as a misdemeanor and upon conviction be subject to a fine not to exceed five thousand dollars ($5,000.00) or imprisonment in the County jail for a period of not more than six (6) months, or by both such fine and imprisonment.

Each day a material violation is committed or permitted to continue shall constitute a separate offense.
§ 6-6.11. Audits.

No later than February 15 of every calendar year, each permittee shall file with the City one copy of an audit of its operations for the previous calendar year, completed and certified by an independent certified public accountant in accordance with generally accepted auditing and accounting principles. The audit shall include, but not be limited to, a discussion, analysis, and verification of each of the records required to be maintained pursuant to this chapter. (§ 3, Ord. 3240 c.s., eff. October 6, 2022 )
§ 6-6.12. Records.

Permittees shall maintain records at the premises accurately and truthfully documenting the following:

1. Each cannabis retailer shall maintain accurate books and records in an electronic format, which detail all revenues and expenses of the business, including, but not limited to, all of its assets and liabilities.

On no less than an annual basis (at the time of performance review of a retail cannabis business permit issued pursuant to this Chapter 6xxxxxxx), or at any time upon reasonable request of the City, each cannabis retailer shall file a sworn statement detailing the number of sales by the cannabis retailer during the previous 3-month period (or shorter period based upon the timing of the request) detailing sales for each month within such period in question. The statement shall also include gross sales for each month and all applicable taxes paid or due to be paid. On an annual basis, each cannabis retailer shall 342
34 submit to the City a financial audit of the business’s operations conducted by an independent certified public accountant. The City may perform its own annual independent financial audit and charge the retailer for such cost incurred by the City. Each permittee shall be subject to a regulatory compliance review and financial audit as determined by the Permit Administrator, subject to any applicable restrictions under the Health Insurance Portability & Accountability Act (“HIPAA”) regulations.

2. Each owner and operator of a commercial cannabis business shall maintain a current register of the names and the contact information (including the full names, address, and telephone number) of anyone owning, holding an interest in or managing the commercial cannabis business, and separately of all the officers, managers, employees, agents and volunteers currently employed or otherwise engaged by the commercial cannabis business. The register required by this paragraph shall be provided to the Permit Administrator or designee upon a reasonable request.

3. All receipts of the premises, including, but not limited to, all payments, purchases, contributions, reimbursements, and reasonable compensation, whether in cash or in kind, concerning commercial cannabis activities, whether among licensees or otherwise.

4. Commercial cannabis businesses must record all commercial cannabis activity in the track and trace system as required by State law.

5. Proof of compliance with the Act and regulations, including, but not limited to, the license issued by the Department authorizing a permittee to operate commercial cannabis activities on the premises.

6. Any other required documentation described in the Commercial Cannabis Retail Permit required to be maintained on the premises.

7. The foregoing records shall be maintained by permittees for a period of seven years and shall be made available by the permittee to the Police Department, other local law enforcement, or the Permit Administrator upon request. If such records are not produced as requested, the City may seek a search warrant, subpoena, or court order to compel access thereto. The records shall be stored at the premises in a manner capable of being reproduced promptly and accurately. Any loss, damage or destruction of the records shall be reported to the Police Department within 24 hours.

8. Based upon the approved City-wide cannabis business tax, it shall be the duty of every owner and operator of a commercial cannabis business to keep all records as may be necessary to determine the amount of tax due hereunder and shall preserve the same for a period of four years. The Finance Director shall have the right to inspect such records at all reasonable times. The Finance Director 343
35 shall determine the mode and method of recordkeeping required to assist the tax collector to perform the duties required of him or her under this section. At the time of permit renewal, each owner and operator shall submit to the City a financial audit of the business's operations conducted by an independent certified public accountant.

Each permittee shall be subject to a regulatory compliance review and financial audit as determined by the Finance Director. The Finance Director shall be authorized to engage a third-party to perform such audit(s).
(§ 3, Ord. 3240 c.s., eff. October 6, 2022 )
§ 6-6.13. Compliance with laws.

Nothing in this chapter shall be construed as authorizing any actions that violate State or local law with respect to the operation of a commercial cannabis business. It shall be the responsibility of the owners and operators of the commercial cannabis business to ensure that the commercial cannabis business is, at all times, operating in a manner compliant with all applicable State and local laws, any subsequently enacted State law or regulatory, licensing, or certification requirements, and any additional operating procedures or requirements which may be imposed as conditions of approval of the commercial cannabis permit. Nothing in this chapter shall be construed as authorizing any actions that violate State law regarding the operation of a commercial cannabis business. Except as otherwise provided herein, this chapter incorporates the requirements of the Act. In the event of any conflict between the provisions of this chapter and the provisions of the foregoing, the more restrictive provision shall control. (§ 3, Ord. 3240 c.s., eff. October 6, 2022 )
6XXX Persons prohibited from holding a permit or from employment with a cannabis business permittee.

Any person is prohibited from holding or maintaining a cannabis business permit, or from being employed at a cannabis business, if any of the following apply:

A. The applicant has been denied a cannabis license or permit, or has had a cannabis license or permit suspended or revoked by any city, county, city and county or any other state cannabis licensing authority;
B. The applicant was notified by the state, county, or city that it was conducting cannabis activity in violation of state law or City ordinances, codes, and requirements, and failed to cure the violation in a timely manner; or C. Evidence that the applicant is delinquent in payment of federal, state, or local taxes and/or fees, and took no steps to cure the delinquency when notified by the appropriate agencies.

D. Subxxxxxx A of this Xxxxx shall not apply to an approved applicant that is not awarded a permit resulting from a city, county, city and county or any other state cannabis licensing authority not selecting them in an application process with a finite number of available permits.
6xxxxxxx: Inspection and Enforcement.
a. The Permit Administrator or designee(s) charged with enforcing the provisions of the City Municipal Code, or any provision thereof, may enter the location of a cannabis retailer at any time, without notice, and inspect the location of any cannabis retailer as well as any 344
36 recordings and records required to be maintained pursuant to this Chapter 4-35 or under applicable provisions of State law.
b. It is unlawful for any person having responsibility over the operation of a cannabis retailer, to impede, obstruct, interfere with, or otherwise not to allow, the City to conduct an inspection, review or copy records, recordings, or other documents required to be maintained by a cannabis retailer under this Chapter 6xxxx or under State or local law. It is also unlawful for a person to conceal, destroy, deface, damage, or falsify any records, recordings or other documents required to be maintained by a cannabis retailer under this Chapter 6xxxx or under State or local law.
c. The Permit Administrator or designee(s) charged with enforcing the provisions of this Chapter 6xxxx5 may enter the location of a cannabis retailer at any time during business hours and without notice to obtain samples of the cannabis to test for public safety purposes.

Any samples obtained by the City shall be logged, recorded, and maintained in accordance with the City law enforcement standards for evidence.
6xxx: Concurrent Regulation with the State.

It is the stated intent of this Chapter 6xxx to regulate cannabis retail sales and cannabis retail delivery in the City concurrently with the State. § 6-6.14. Interpretation.

The provisions of this chapter shall be read to be consistent with all the provisions of State and local law, and their implementing regulations, as well as the other provisions of this chapter.
(§ 3, Ord. 3240 c.s., eff. October 6, 2022 )
§ 6-6.15. Severability.

Should any provision of this chapter, or its application to any persons or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable, or otherwise void, that determination shall have no effect on any other provision of this chapter or the application of this chapter to any other person or circumstance and, to that end, the provisions hereof are severable. (§ 3, Ord. 3240 c.s., eff. October 6, 2022 )
§ 6-6.16. Limitation of liability.
a) To the fullest extent permitted by law, the City shall not assume any liability whatsoever, with respect to receiving, reviewing, processing, denying, or approving any application to operate commercial cannabis activities under this chapter. b) As a condition of submitting an application for a Commercial Retail Cannabis Permit, and as a further condition of approval, each applicant or permittee, as applicable, shall:
(1) agree to indemnify the City and its elected and appointed officers, employees, and representatives, from and against any claims, damages, injuries, or liabilities of any kind relating to or arising from an application, the City's denial or approval of an application, or the operation of commercial cannabis activities; (2) waive any and all claims, damages, injuries, or liabilities of any kind against the City and its elected and appointed officers, employees, and representatives; (3) agree to defend, at its sole cost and expense, any action against the City and/or its elected and appointed officers, employees, and representatives, relating to or arising from an application, denial or 345
37 approval of an application, or the operation of a commercial cannabis activity; and (4) agree to reimburse the City for any court costs and attorneys' fees (with legal counsel of the City's choice) incurred in any legal challenge relating to an application, the denial or approval of any application, or the operation of a commercial cannabis activity. (§ 3, Ord. 3240 c.s., eff. October 6, 2022 )
6xxxxx: Promulgation of Regulations, Standards, and Other Legal Duties. l. Pursuant to Sections 11105(b)(11) and 13300(b)(11) of the State Penal Code, which authorizes City authorities to access State and local summary criminal history information for employment, licensing, or certification purposes; and authorizes access to federal level criminal history information by transmitting fingerprint images and related information to the Department of Justice to be transmitted to the Federal Bureau of Investigation, every person listed as an owner, manager, supervisor, employee, or volunteer of the cannabis retailer must submit fingerprints and other information deemed necessary by the Permit Administrator for a background check. Pursuant to Sections 11105(b)(11) and 13300(b)(11) of the State Penal Code, which requires that there be a requirement or exclusion from employment, licensing, or certification based on specific criminal conduct on the part of the subject of the record, no person shall be issued a retail cannabis business permit unless they have first cleared the background check, as determined by the Permit Administrator, as required by this Chapter 6xxxxxxx. A non-refundable fee for the cost of the background investigation, which shall be the actual cost to the City to conduct the background investigation as it deems necessary and appropriate, shall be paid at the time the application for a retail cannabis business permit is submitted.
a. Consistently with stated requirements of this Chapter 6xxxxxxx (and in particular not to repeal or constructively repeal this Chapter 6xxxxxxx), in addition to any regulations adopted under State law, the Permit Administrator is authorized to establish any additional rules, regulations, and standards governing the issuance, denial, or renewal of retail cannabis business permits, the ongoing operation of cannabis retailers, and the City’s oversight, or concerning any other subject determined to be necessary to carry out the purposes of this Chapter 6xxxxxxx.
b. Such regulations shall be published on the City’s website. c. Regulations promulgated by the Permit Administrator shall become effective upon date of publication. Cannabis retailers shall be required to comply with all State and local laws and regulations, including but not limited to any rules, regulations or standards adopted by the Permit Administrator.
6xxxxx. Sensitive Uses. The City Council finds that the definitions of the sensitive uses (licensed day care centers, public parks, schools, and youth centers) under the amendment to Xx 6xxxx of the City Municipal Code in this Ordinance are subject to some degree of interpretation. However, the City Council also finds that certainty regarding the identification of sensitive uses (day care centers, public parks, schools, and youth centers) under the amendments to Xxxxxs 6xxxx and 6xxxx of the City Municipal Code in this Ordinance is required to carry out the purpose and intent of this Ordinance so the that People, the City, and prospective applicants can clearly identify where and where not lawful cannabis retailers under this Ordinance may be located. Accordingly and pursuant to the authority delegated by the State to the City Council under Xxxx 26054(b) of the State Business & Professions Code and overriding the location and design requirements contained in Xxxxx 26054(b) of the State Business & Professions Code, the following sensitive uses (licensed day care 346
38 centers, public parks, schools, and youth centers) and only the following sensitive uses (licensed day care centers, public parks, schools, and youth centers) located on the following County Assessor’s Identification Numbers and only the following County Assessor’s Identification Numbers shall be considered under the amendment to 6xxxx of the City Municipal Code in this Ordinance for the purpose of the initial establishment of cannabis retailers pursuant to the initial iteration of the cannabis retailer application procedure under the amendment to 6xxxx of the City Municipal Code in this Ordinance (to include any review and scoring of any applications pursuant to the objective review criteria and quantitative evaluation scale under the amendment to 6xxxxxx of the City Municipal Code in this Ordinance). Only following the initial iteration of the cannabis retailer application procedure and the initial issuance of retail cannabis business permits under the amendment to 6xxxx of the City Municipal Code in this Ordinance, may the Permit Administrator (his or her designee(s)) reinterpret the following list of sensitive uses (licensed day care centers, public parks, schools, and youth centers) and County Assessor’s Identification Numbers for the purpose of subsequent iterations of the cannabis retailer application procedure under the amendment to 6xxxx of the City Municipal Code in this Ordinance and change in location applications under the amendment to 6xxxxx of the City Municipal Code in this Ordinance.

Name Sensitive Use
Type
County Assessor’s
Identification Number(s)

6.xxxxx Store Front Retail Delivery Requirements.

A. Prior to providing cannabis goods to a delivery customer, operators are required to verify the age and the necessary documentation of each customer. They must ensure that medical customers are at least eighteen (18) years of age and verify that the customer has a valid doctor's recommendation. In the case of adult-use customers, they must verify that the customer is at least twenty-one (21) years of age. Sales shall only be made to persons matching these criteria.

B. Retail delivery services shall be limited to the hours of 9:00 a.m. through 9:00 p.m., seven days a week.

C. Prior to commencing delivery operations, a cannabis Retailer shall provide the following information to the City:

1. Proof of ownership of the vehicle or a valid lease for any and all vehicles that will be used to deliver cannabis or cannabis products.

2. The year, make, model, color, license plate number, and numerical Vehicle Identification
Number (VIN) for any and all vehicles that will be used to deliver cannabis goods.

3. Proof of insurance as required in Section xxxxxx for any and all vehicles being used to deliver cannabis goods.

4. The permittee shall provide the City with the information required by this section in writing for any new vehicle that will be used to deliver cannabis goods prior to using the vehicle to deliver cannabis goods.

5. The permittee shall provide the City with any changes to the information required by this section in writing within thirty (30) calendar days. 6xxxxxx. Appeals. Appeals relating to a denial of an application; to revoke, suspend or 347
39 modify a permit; to deny renewal of an application for a permit; or to add conditions to a permit shall be conducted as prescribed in City of Redondo Beach Code of Ordinances 1-4 “Appeals”, recited below:
§ XXXXX Right to appeal. Except as otherwise specifically provided in this Code, any person excepting to the denial, suspension or revocation of a permit applied for or held by him pursuant to any of the provisions of this Code, or to any administrative decision made by any official of the City pursuant to any of the provisions of this Code, may appeal in writing to the Council by filing with the City Clerk a written notice of such appeal, setting forth the specific grounds thereof.
§ XXXXX Time within which an appeal must be filed. Such notice must be filed with the City Clerk within 14 days after receipt of written notice of such action appealed from, but in no event later than 30 days after the date of such action. § XXXXX Hearing: Notice. The City Clerk shall forthwith set said matter for hearing before the Council at a subsequent regular meeting and shall cause notice thereof to be given to the applicant not less than five days prior to such hearing, unless such notice is waived in writing by the applicant. At such hearing the appellant shall show cause on the grounds specified in the notice of appeal why the action excepted to should not be approved. The Council may continue the hearing from time to time, and its findings on the appeal shall be final and conclusive in the matter.
6xxxxxxx Contents of Appeal.

A. Within fourteen (14) days after service of the notice of the decision of the City:

1. To deny advancement to the final selection process; or

2. To revoke, suspend or modify a permit; or

3. To deny a renewed application for a permit; or

4. To add conditions to a permit
B. An applicant or permittee may appeal such action by filing a written appeal with the City Clerk setting forth the reason why the decision was not proper.

C. For appeals of a denial of an application prior to the final decision process, reasons shall be stated with specificity and shall address the issues outlined in Section xxxxxxxx
D. The Date of Service shall mean the date when a notice or written decision was personally
delivered to the applicant or permittee or the date when the notice was caused to be delivered by certified, first-class mail.

E. In cases in which the city can verify delivery of a notice to an applicant or in which an applicant is documented as refusing delivery, lack of receipt of the notice cannot form the basis for an appeal.

F. Notice of Appeal - The Notice of Appeal shall be in writing and signed by the person making
the appeal ("Appellant"), or their legal representative, and shall contain the following:

1. Name, address, and telephone number of the appellant. 348
40 2. Specify the decisions, actions, or a particular part thereof, made that are the subject of the appeal.

3. Include a true and correct copy of the notice issued by the City Manager for which the appellant is appealing.

4. State with specificity the reasons and grounds for making the appeal, including, but not limited to, a statement of facts upon which the appeal is based in sufficient detail to enable the Appointed Hearing Officer to understand the nature of the controversy, the basis of the appeal, and the relief requested.

5. All documents or other evidence pertinent to the appeal that the appellant requests the Appointed Hearing Officer to consider at the hearing.

6. An appeal fee as established by Resolution of the City Council.

G. Failure of the City Clerk to receive a timely appeal constitutes a waiver of the right to appeal the notice issued by the Permit Administrator. In this event, the Permit Administrator’s notice of revocation, non renewal, or suspension shall be final.

H. In the event a written Notice of Appeal is timely filed, the nonrenewal, suspension, or revocation shall not become effective until a final decision has been rendered and issued by the Appointed Hearing Officer. Notices of appeal not served in a timely manner or served by non-operational business shall not serve to allow such business to operate pending appeal.

I. If no appeal is timely filed in the event of a decision of nonrenewal, the Cannabis Businesses Permit shall expire at the conclusion of the term of the permit. If no appeal is timely filed in the event of a decision supporting suspension or revocation, the suspension or revocation shall become effective upon the expiration of the period for filing a written Notice of Appeal.

6.xxxxxx Appointment and Scope of Appointed Hearing Officer.

A. Denial of Application Prior to Final Decision Process. An Appointed Hearing Officer, as set
forth by City Council Resolution, will hear appeals that address the following issues:

1. Any deviation from the City's published Procedure Guidelines and Review Criteria that adversely affected the applicant by altering the outcome of the City's decision on the application. Examples of appealable deviations include, but are not limited to:
a. Failure on the part of the City to provide appropriate notification regarding changes to the application process via website postings and/or email to the applicant prior to the time the application was submitted; b. Failure on the part of the City to provide an applicant an equal opportunity to modify an application where that opportunity was provided to other applicants; or
c. Failure on the part of the City to correctly apply the Review Criteria, as established by City Council resolution, in reviewing the application.

2. Any appeal based upon this section must be supported by a preponderance of the evidence that the applicant presented the relevant information with completeness and in the appropriate section of the application. Information presented in the application that is incomplete in nature or that is relevant to a question posed by the City on the application form but appears in the incorrect section, even if complete, may be grounds for the dismissal of the appeal. 349
41 6.xxxx Appeal Hearing Process and Proceedings.

A. Review by City Council or Appointed Hearing Officer.

1. Appellants who file a timely written Notice of Appeal will be entitled to an administrative hearing before the Appointed Hearing Officer as set forth by the City Council by Resolution.

2. Upon receipt by the City Clerk of a timely-filed Notice of Appeal, the City Clerk shall
schedule a hearing within thirty (30) days. In the event such hearing cannot be heard within that time period or a mutually agreed upon time with the appellant, then the City Clerk shall schedule the appeal to be heard within forty-five (45) days or as reasonably possible.

3. The appellant(s) listed on the written Notice of Appeal shall be notified in writing of the date, time, and location of the hearing at least ten (10) days before the date of the hearing ("Notice of Appeal Hearing").

4. A request by an appellant or by the City to continue a hearing must be submitted to the City Clerk in writing no later than three (3) business days before the date scheduled for the hearing. The Appointed Hearing Officer may continue a hearing for good cause or on its own motion; however, in no event may the hearing be continued for more than thirty (30) calendar days, unless there is a stipulation by all parties to do so.

B. At the date, time and location set forth in the Notice of Appeal Hearing, the Appointed Hearing Officer shall hear and consider the testimony of the appellant(s), City staff, and/or their witnesses, as well as any documentary evidence properly submitted for consideration.

C. The following rules shall apply at the appeal hearing:

1. Appeal hearings are informal, and formal rules of evidence and discovery do not apply. However, rules of privilege shall be applicable to the extent they are permitted by law, and irrelevant, collateral, undue, and repetitious testimony may be excluded.

2. The City bears the burden of proof to establish the grounds for nonrenewal, suspension, revocation, modification of the permit, or adding conditions to the permit by a preponderance of evidence. Appellant(s) bear the burden of proof regarding denial of an application or denial of advancement to the final selection process established by the City Council.

3. The issuance of the City's notice constitutes prima facie evidence of grounds for the
denial, nonrenewal, suspension or revocation.

4. The Appointed Hearing Officer may accept and consider late evidence not submitted initially with the Notice of Appeal upon a showing by the appellant of good cause. The Appointed Hearing Officer shall determine whether a particular fact or set of facts amount to good cause on a case-by-case basis.

5. The appellant may bring a language interpreter to the hearing at their sole expense.

6. The City may, at its discretion, record the hearing by stenographer or court reporter,
audio recording, or video recording. If the appellant requests from the City that a court
350
42 reporter, stenographer, or videographer be used, appellant shall bear the costs of same and shall deposit such fees prior to commencement of the administrative hearing.

D. If the appellant, or their legal representative, fails to appear at, the appeal hearing, the Appointed Hearing Officer, may cancel the appeal hearing and send a notice thereof to the appellant by certified, first-class mail to the address(es) stated on the Notice of Appeal. A cancellation of a hearing due to non-appearance of the appellant shall constitute the appellant's waiver of the right to appeal and a failure to exhaust all administrative remedies. In such instances, the City's notice of decision is final and binding.

E. Final Decision. Following the conclusion of the hearing, the Appointed Hearing Officer shall issue a written decision within twenty (20) days which (i) determines if the action appealed from is affirmed or overturned and (ii) specifies the reasons for the decision.

F. The written decision of the Appointed Hearing Officer shall provide that it is final and conclusive and is subject to the time limits set forth in California Code of Civil Procedure Section 1094.6 for judicial review.

G. A copy of the written decision shall be served by certified, first-class mail. on the appellant. If the appellant is not the owner of the real property in which the Cannabis Business is located, or proposed to be located, a copy of the final decision may also be served on the property owner by first class mail to the address shown on the last equalized assessment roll. Failure of a person to receive a properly addressed final decision shall not invalidate any action or proceeding by the City pursuant to this Chapter.

6.xxxxx City's Reservation of Rights. The City reserves the right to reject any or all applications for a Cannabis Business Permit. Prior to permit issuance, the City may modify, postpone, or cancel any request for applications, at any time without liability, obligation, or commitment to any party, firm, or organization, to the extent permitted under California law. Persons submitting applications assume the risk that all or any part of the Cannabis Business Permit program, or any particular category of permit potentially authorized under this Chapter, may be cancelled at any time prior to permit issuance. The City further reserves the right to request and obtain additional information from any candidate submitting an application. In addition to a failure to comply with other requirements in this Chapter, an application may be rejected for any of the following reasons:

A. The application was received after the designated time and date of the deadline.

B. The application did not contain the required elements, exhibits, or was not organized in the
required format.

C. The application was considered not fully responsive to the request for a permit application,
i.e., was substantially incomplete.

6.xxxxx Effect of State License Suspension.

A. Suspension of a license issued by the State of California, or by any of its departments or divisions, shall immediately suspend the Cannabis Business Permit of 351
43 the Cannabis Business.

B. If the State of California or its respective department or division reinstates or reissues the
State license, the Cannabis Business may seek reinstatement of its Cannabis Business Permit
if the business can demonstrate that the grounds for revocation of the license by the state
no longer exist or that the underlying deficiency has otherwise been cured.

C. Any Cannabis Business Permittee shall inform the City of any suspension of a state license.

6.xxxxxx Effect of State License Revocation or Termination.

A. Revocation or termination of a license issued by the State of California, or by any of its departments or divisions, shall immediately revoke or terminate the Cannabis Business Permit of the Cannabis Business.

B. Any Cannabis Business Permittee shall inform the City of any revocation or termination of a state license.

C. A Cannabis Business Permittee may appeal the immediate revocation or termination of the Cannabis Business Permit pursuant to Section xxxxxxx but may not operate pending the decision of the appeal.

6.xxxxxxx Fees Deemed Debt to the City. The amount of any fee, cost or charge imposed pursuant to this Chapter shall be deemed a debt to the City that is recoverable via an authorized administrative process as set forth in the City ordinance or in any court of competent jurisdiction.

6.xxxxx Permit Holder Responsible for Violations. The person to whom a permit is issued pursuant to this Chapter shall be responsible for all violations of the laws of the State of California or of the regulations and/or the ordinances of the City, whether committed by the permittee or any employee or agent of the permittee, which violations occur in or about the premises of the Cannabis Business whether or not said violations occur within the permit holder's presence.

6.xxxxxx No Vested Rights. No person(s) (including any Applicant, Owner, and/or Permittee) shall have any vested rights to any permit, right, and/or interest under this chapter, regardless of whether such person(s) sold, distributed, and/or otherwise engaged in acts related to the use of Cannabis prior to the adoption of the ordinance codified in this Chapter.
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