04-29-24 Request for Amendment to CCP 2023-003 — Salinas City Council, June 18, 2024

cannacruz
CannaCruz
Commercial Cannabis Permit Amendment
Application
1228 S. Main Street, Salinas
Table of Contents
1 City of Salinas Commercial Cannabis Business Amendment Application Form. ...2
Commercial Cannabis Business and Mailing Address ... ....2 Businesses Operated by Applicant. ....2
Litigation.... ..2
Principal Background Information... ..2
Commercial Cannabis Business Organization Status. . 2
Commercial Cannabis Business Description and Location 3 Zoning Information Letter ..7
Signed Lease Agreement ..8
Site Plan ....9
Floor Plan ...10
Signage Plan. ..11
Vicinity Map ...12
Photos of the Site and Building.. ..13
2 Business Plan.. .. 17
Project Description ..17
Organizational Structure. ...19
Proposed Hours of Operation... ...19
Products.. ...19
Training ..20
Compliance With State and Local Regulations ....20
Pro Forma and Statement of Cash on Hand.. ...21
Standard Operating Procedures... ...22
Operational Manual ...29
Employee Handbook ...30
3 Neighborhood Compatibility Plan .. 31
Information To Be Posted at Facility ..31
Employee Policies ...32
Community Relations ...32
On Site Contact. ..32
Additional Policies .32
Customer Policies ....33
City of Salinas CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
Customer Education 33
Security Management 34
Facility Maintenance and Security.. 35
Compatibility With Surrounding Uses 36
4 Security Plan.... ...38
5 Essential Supplemental Information . 49
Enhanced Product Safety and Quality ..49
Environmental Benefits. 51
Labor and Employment 51
Community Benefits.. ...52
Local Enterprise. ..52
Technology and Innovation.. .52
City of Salinas ii CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
1 City of Salinas Commercial Cannabis Business
Amendment Application Form
Commercial Cannabis Business and Mailing Address
CannaCruz, Inc.
115 Limekiln St.

Santa Cruz, CA 95060
Businesses Operated by Applicant
CannaCruz, Inc.
115 Limekiln St
Santa Cruz, CA 95060
This location is a licensed manufacturing and retail facility.

CannaCruz LLC
115 Limekiln St
Santa Cruz, Ca 95060
This location is a licensed distribution facility.

CannaCruz, Inc.
11500 Dolan Road #7
Moss Landing, CA 95039
This location is a licensed manufacturing, distribution, and cultivation facility.

Litigation
None
Principal Background Information
Grant Palmer, Secretary/Director
Bradford Palmer, Chief Executive Officer/Chief Financial Officer/Director Commercial Cannabis Business Organization Status
Please see attached Articles of Incorporation for CannaCruz, Inc., which was originally organized as Non-Profit Cooperative Corporation, filed with the Secretary of State of California on August 24, 2010.

Pursuant to the attached Certificate of Amendment of the Articles of Incorporation, CannaCruz, Inc., which was filed on October 31, 2019, the entity was modified from a non- profit cooperative corporation to a domestic stock corporation.

City of Salinas 2 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
Commercial Cannabis Business Description and Location
Statement of Purpose/Project Description
CannaCruz, Inc. ("CannaCruz") currently holds a City of Salinas Commercial Cannabis Facility Permit (CCF 2021-003) for retail and distribution at 1156 Abbott Street. CannaCruz was awarded its permit in 2017 and commenced operations in 2019. CannaCruz has ceased the distribution side of the operation at the current site. The business has not had any compliance issues since the commencement of its operation.

CannaCruz also has a retail and non-volatile manufacturing facility in Santa Cruz that has been operating since 2010 and a distribution and non-volatile manufacturing facility in the Moss Landing industrial complex in unincorporated Monterey County. Both operations are in good standing with local and state licensing authorities. CannaCruz is proposing to relocate its existing retail facility at 1156 Abbott Street, Suite 1 to 1228 S Main Street in the City of Salinas and include distribution ancillary to the retail operation.

The retail and distribution operations will be integrated rather than separate operations.

Although requiring a separate state license, the distribution premises is established pursuant to state regulations for quality assurance and storage purposes. CannaCruz will be required to obtain the distribution license and maintain a separate distribution premises in order to have authorization to arrange quality assurance testing, which is required prior to retail sale and is authorized only with a distribution license. In addition, the distribution premises portion of the operation will be used for the storage of product (batches awaiting a certificate analysis as well as product that has already received a certificate of analysis and is ready for retail sale). Product that has passed the quality assurance testing will be sold at the proposed retail operation.

At this time, due to the current lack of market demand, CannaCruz does not propose delivery services to customers at the new location.

State licenses for storefront retail and distribution will be applied for upon City authorization. There are no other changes proposed to the operation.

Upon issuance of this permit amendment, CannaCruz proposes a cosmetic remodel of the existing 20,142 square foot building. The facility will be remodeled to create a lobby, dispensary floor, office area, storage area, packaging area, secured storage, and security measures. The retail sales area will comprise approximately 3,926 SF of the retail premises, which will include a large lobby/entrance area for the retail premises.

All interior, standard light fixtures would be replaced with LED bulbs to maximize use of renewable energy and energy efficiency.

The building currently has 39 parking spaces. Based on the sales volume and customer traffic at CannaCruz's other facilities, the amount of parking should be ample for the 3,926 SF of retail sales area. The remainder of the building would be used for internal purposes and City of Salinas 3 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
employees of the business. Although requiring a separate state license, the distribution portion of the operation will be integrated and will not create additional parking demand The proposed uses of the building are broken down as follows:

Retail Premises Lobby 1,349 SF
Sales 3,926 SF
Fulfllment (product storage) 6,604 SF
Distribution Premises Batch storage, sampling area, 4,846 SF packaging and dabeling, torie,
and unloading
Non-Cannabis Employee area 3,421 SF
Currently the building area fronting S. Main Street lacks the landscape treatments in keeping with adjacent properties. Landscaping of this segment is proposed in order to maintain the continuity of the landscape treatments along S. Main Street. If necessary, we propose to add landscaping along the existing buffer wall around the property to properly separate from the residential zones. In addition, in keeping with the storefront character of the surrounding uses, CannaCruz proposes to include non-cannabis merchandise as part of its storefront display.

Proposed Location of Business
The proposed business relocation is 1228 S Main Street in the City of Salinas.

Name of Address of Property Owner
Samuel Kobrinsky and Marguerite Kobrinsky Revocable Trust dated June 2, 1997 c/o Catherine Kobrinsky
235 Monterey Street, unit A
Salinas, CA 93901
Name and Address of Church Closest to Newly Proposed Location The closest churches are located adjacent to each other approximately 897 feet and 1,536 feet from the newly proposed location.

Saint Ansgars Lutheran Church
72 E San Joaquin Street
Please note that the hours of operation for the Saint Ansgars Lutheran Church are Sunday 8 AM to 1PM and Monday through Thursday 9AM to 4PM. This includes religious education at 9AM and worship service at 10AM on Sundays. The church offers various weekly events including bible study programs on Tuesdays from 12PM to 1PM and 6PM to 8PM. The City of Salinas 4 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
church is located on the opposite side of Main Street, which is a major thoroughfare.

Pedestrian and vehicle traffic between the church and proposed location is highly unlikely.

Name and Address of Existing Alcohol Related Establishment Closest to Newly Proposed Location
There are several alcohol related establishments located approximately within 1,000 feet from the newly proposed location. Additionally, the proposed site complies with the 600 foot radius per the State regulations. Most of the businesses within 1,000 feet of the proposed location identified as "alcohol related" are grocery stores and sit-down restaurants.

The Clout Nine Cigar and Vapor business is located adjacent to the Lucky grocery store in a separate shopping center located on the opposite side of Nissen Road separated by another shopping center and several buildings.

Please note that each of the alcohol related establishments is located in a different shopping center with separate access and parking.

Clout Nine Cigar and Vapor
1152 S Main Street
Salinas, Ca 93901
Elli's (Restaurant)
1250 S Main Street
Salinas, Ca 93901
Star Market (Grocery)
1275 S Main Street
Salinas, Ca 93901
Nob Hill (Grocery)
1320 S Main Street
Salinas, Ca 93901
Lucky (Grocery)
1150 S Main Street
Salinas, Ca 93901
Description of Neighborhood
The newly proposed project site is an existing 20,142-SF building located on a 1.1-acre site at 1228 S Main Street in the City of Salinas, on the west side of S. Main Street, north of Blanco Road. The site is south of downtown Salinas and west of US Highway 101. Main Street provides access to US Highway 101.

The project site is located in CR-FG-3 (Commercial Retail - South Main Street Focused Growth Overlay 3) Zoning District. Commercial cannabis retail is an allowed use in the CR district. The project site is surrounded by other commercial uses, such as retail, banks, dental offices, gas stations, hair salons, restaurants, and supermarkets.

City of Salinas CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
Main Street and Blanco Road are major thoroughfares in the City of Salinas. The site will be accessible and visible to existing automobile traffic while also providing 39 existing parking spaces for the 3,926 SF of proposed retail sales area.

The site is currently occupied by a retail furniture store, which is currently in the process of closing. No business would be displaced by the proposed cannabis retail operation.

Within a 1,000-foot radius of the new project site, there are no schools, colleges, universities, libraries, parks, card rooms, or other commercial cannabis dispensaries. Additionally, the proposed site complies with the 600 foot radius per the State regulations. A residential neighborhood backs up to the multiple retail centers on S. Main Street and is buffered by a block wall. Any sensitive uses would be buffered from the proposed operation by block walls, landscaping and other businesses and the proposed site complies with the 600 foot radius per the State regulations.

City of Salinas CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
Zoning Information Letter
City of Salinas 7 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
City of Salinas

COMMUNITY DEVELOPMENT DEPARTMENT
SALINAS 65 W. Alisal Street, 2nd Floor • Salinas, California 93901 (83 1) 758-7387 • (831) 775-4258 (Fax) • www.ci.salinas.ca.us RICH IN LAND | RICH IN VALUES
December 15, 2021
Grant Palmer
115 Limekiln Street
Santa Cruz, CA 95060
RE: ZONING INFORMATION FOR A COMMERCIAL CANNABIS
BUSINESS (CCB) LOCATED AT 1228 SOUTH MAIN STREET IN THE CR-FG-3 (COMMERCIAL RETAIL - SOUTH MAIN STREET FOCUSED
GROWTH OVERLAY 3) ZONING DISTRICT (APN: 016-161-052-000) (ZLTR 2021-011)
Dear Mr. Palmer:

On December 8, 2021 the Community Development Department received your request for zoning information for the above referenced site in connection with a Commercial Cannabis Business (CCB) consisting of:
1) Dispensary
The subject site is located in the CR-FG-3 (Commercial Retail - South Main Street Focused Growth Overlay 3) Zoning District (APN 016-161-052-000). The following provides an overview of the adjacent land uses and zoning districts to the site:

North: Residential/Commercial Retail - South Main Street Focused Growth Overlay 3 (CR-FG-3)
South: Restaurant/Commercial Retail - South Main Street Focused Growth Overlay 3 (CR-FG-3)
East: Shopping Center/Commercial Retail - South Main Street Focused Growth Overlay 3 (CR-FG-3)
West: Medical Office/Commercial Retail - South Main Street Focused Growth Overlay 3 (CR-FG-3)
Project case files applicable to the site are listed below. Copies are available in our office for review.

1. SP 2011-015 - Sign Permit 2011-015
Zoning Analysis of the proposed CCB.

1. Dispensary: Dispensary, which is most closely defined as Retail Sales per Zoning Code Section 37-10.420, is permissible in the underlying CR-FG-3 Zoning District through the Site Plan Review process per Zoning Code Section 37-30.200, Table 37-30.90.

Analysis of Sensitive Uses.

The CCB must not be within a 1,000-foot radius of schools, churches, libraries, colleges, smoke shops, hookah lounges or other sensitive uses as in described in S.M.C Section 16B-30.70, unless otherwise allowed per the Municipal Code. Per available records, City staff has determined that the proposed CCB is located within a 1,000-foot radius of several sensitive uses (measured from parcel to parcel), as follows:

1. 1152 S Main Street: retail sales - smoke and vape shop - Clout Nine Cigar and Vapor, 600 feet away

2. 72 E San Joaquin Street: religious assembly - Saint Ansgars Lutheran Church, 845 feet away

3. 1250 S Main Street: restaurant with liquor sales - Elli's - 20 feet away

4. 1275 S Main Street: food and beverage sales with liquor sold - Star Market - 438 feet away

5. 1320 S Main Street: food and beverage sales with liquor sold - Nob Hill Foods - 600 feet away

6. 1150 S Main Street: food and beverage sales with liquor sold - Lucky - 640 feet away
Note the issuance of a "Zoning Information Letter" does not mean the written evidence of permission given by the City of Salinas or any of its officials to operate a CCB nor does it not mean "permit" within the meaning of the Permit Streamlining Act, nor does it constitute an entitlement under the Zoning or Building Codes, and a regulatory permit for the purpose of regulating a CCB does not constitute a permit that runs with the land on which the CCB is established.

Zoning information may be accessed via the Internet at the following link (look for Chapter 37 Zoning at the bottom left side column:
http://library.municode.com/index.aspx?clientld=16597&stateld=5&stateName=Californ la
Information regarding Building Permits, Code Enforcement, and Certificates of Occupancy may be obtained from Permit and Inspection Services, located at 65 West Alisal Street, Salinas, CA 93901 (phone 831-758-7251).

Should you need additional information from the Community Development Department, please contact me at 831-758-7206.

Sincerely,
Adam Garrett
Assistant Planner
Enclosures: Map of Parcels Within 1,000 Feet of 1228S Main Street Portion of Sensitive Use Map for Subject Site
Property Report for 1228 S Main Street
I:\ComDev|Planning Share Space/Zoning Letters|2021\ZLTR 2021-018 - (1228 S Main St)\ZLTR 2021-011.doc Map of subject property with a 1000-foot buffer
San Mguel Ave
Stephanie Di
(0-6-.8)
_ originster cly of salinas Public Works Department Gi Dision origintor city of salinas, public Map of sensitive uses in area surrounding the subject property Subject Property CO of Monterey County. | Originstor: City Signed Lease Agreement
The signed lease agreement is being provided under separate cover.

City of Salinas 8 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
Site Plan
City of Salinas 9 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024

AMACENT DULCINC

PROPERTY LINE
ARCHITECT 05 40-64 0342-

CH COVE ENVIRONMENTS
- PROPERTY LINE SOUTH MAIN STREET
ARCHITECTURE & SOLAR SPACE HEATING SOTO RROYO GRANDE.

DETNO GURINO
- 1612003500
GREGORY D. BOX 13921 # C14960

PROPERTY LINE LIV-IN
Lic.

SOCAALK Angy est

ANDECARNO
50-
*N324730 W287-9-
B- _PROPERTY LINE

CA CONVERSA REBONNO

SITE AREA CALCULATIONS SITE PLAN NOTES SITE PLAN LEGEND DENEM LANOSCAPE ARCAS CONNECER ST: SANTA CRUZ, CA, 95060

DASE DECTRON, VALLT
22 7 - (A ( A (NO ONGES E WATER METER

ENRE SPRMLER ASTR
asar ENEW COLORED, TEXTURED PAVINC X BO VIN.

EJORIEX PLANTERE E SUSE PERAN FOR 115 LIMEKILN 31-420-3227 OCAS vETER E(N) TONTURCO CONCRETE PESESTRAM NOCESS 1/€" 5200C MAX

FELECTRICAL NETCA

MADA PARONC SPACE
CADA VAN UALORDNG 3/5/24
20 = PARONE BAR POMBED (22,300/300) 3) NASTE STORACE (SECUREO INDOORS) 3(N) 6' TALL FONCE ON PROPERTY UNC TIKE) CATCH BASIN 25 (E) FENCE TO RENAN

BOLAICE (C) PARKNO LOT PLANTER

EXO ADA RAND
170O 35ª VEMOLE OVERIANO (LANOSCAPINO)
T1C) LANOSCARE AREAS A1.0
Floor Plan
City of Salinas 10 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024

OTT STAND
81283/16
40-10 1/8"
17-412
1501 NOCA
HH
095 SOBST AREA CANNABIS RETAL + ANCILLARY DISTRIBUTION
(PROPOSED CHANGE OF USE) 19-11 UNIT A AREA 191322.

HAS SPACE AREA
14:0* 29-10° CA 93421

ARCHITECT
UNIT B AREA (10.49 57) (805) 481-1056

DED TAKE SANFUNG PASSEMAY UNT A ENVIRONMENTS GRANDE,
14:5 9,413 BF 19-0%

PURNITURE RETAL

NO CHANGE N USE PROPOSED ARCHITECTURE & SOLAR SPACE HEATING SOTO

PETAL NEE
* C349 ARROYO
A543 9r

RETAIL PULLMENT (DISTRBUTOR)
LIV - IN GREGORY D.

SAMPLE/BATON STORAGE -
18-5.
2,710 Sr
L
838 Bess

29.2 14:0 ASSAAY.

DREN TONSE 10-0° TOTAL DUPLOYEE/CMCC
6-00 5000 OSTROO
10-51/5 13-0 16-5.98 85-6132
21-8118
PROPOSED ROOR PRAN ANNEN ST. SANTA CRUZ, CA, 95060

PROJECT
NORTH
PROPOSED FLOOR PLAN DERMIT FORI RANT-PALMERPLIVE.COM

GENERAL NOTES
USE
Date 3/5/24

OLORS FROW DISTRUTON PRODUCT STORAGE DUSAL TO REATAL
EXOSTING USE OF BULDING : FURNITURE RETAL (UNIT A TO REMAIN) A21
Signage Plan
A City of Salinas sign permit issued pursuant to the Salinas Municipal Code shall be required.

Planning staff has indicated, in the comments regarding the CUP2022-048 permit application, that the sign is not a part of CUP2022-048 and that approval of a separate Sign Permit issued by the Community Development Department will be required for all exterior signs before installation of any signs visible from the outside.

As indicated in the CUP2022-048 permit application and staff report, the applicant proposes to use the existing freestanding sign located along the South Main Street frontage, pending City approval. Any signage would conform with the applicable provisions of the Salinas Municipal Code.

City of Salinas 11 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
Vicinity Map
City of Salinas 12 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
Vicinity Map 1128 S. Main Street Salinas, CA
osen Rd Smalley's Roundup
Solar Switch
Nissen Rd
-KFC
Doctors on Duty Nissen Rd *Chicken
Del Rey Cir
Sherman's VNA & Hospice
Apothecary Pharmacy ChargePointe
Charging Static
Mi Taqueria save on Cleaners
68 Del Mar Di Plaza Cir
Salinas Valley 1228S Main St,
Plastic Surgen Salinas, CA 93901
Salinas Ace Hardware
Hardware store
Ellis Great-nenes MeDonald's
Fast Food. S
AG Land Trust Papa Murphyis
Take N° Bake Pizza
W Blanco Rd Del Mar Dr Pazar's
Blanco Rd Monterey Bay Del Mar Dr
Orthodontics •Hair Unlimited:

Star Shopping Center
id asped Shopping mall
Chaucer Dr Star. Pharmacy & Gifts
Salinas Recycling Star Market
Evgo Charging Station
Blanco Rd E Blanco Rd
The UPS Store Shell
EBlanco Rd
Nob Hill Foods Indoor Restore
Guadalajara Grill Coinstar Kiosk
Mexican: E Bianc
Gonale
City of Salinas Commercial Cannabis Business Permit Amendment Application for Dispensary CannaCruz, Inc.

Photos of the Site and Building

DIEGACTEURNITURE
City of Salinas 13 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
City of Salinas 14 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
City of Salinas 15 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
LEGACE
City of Salinas 16 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
2 Business Plan
CannaCruz was originally formed as a mutual benefit non-profit by a group of qualified patienta recognizena need fore oned in it to the local media can rea stock corporation, with the shares of stock being split between the two principals, Brad Palmer and Grant Palmer.

As mentioned above, following the progression of State and local regulations, CannaCruz modified its internal corporate structure. CannaCruz has maintained compliance with State and local regulations and laws regarding it commercial cannabis operations.

We hope to achieve high levels of customer service based on exceeding expectations, requirements and regulations in each of the following areas:
• Employee, Dispensary, Customer and Neighborhood Safety • Sensitivity, Discretion and Confidentiality
• Availability and Dissemination of Valuable Information • Consistent Quality and Variety of Cannabis Goods
• Meaningful and Impactful Dispensary Involvement and Interaction with the surrounding neighborhood and community
Continuous Innovative Improvements
• Regulatory Compliance
Project Description
CannaCruz currently holds a City of Salinas Commercial Cannabis Facility Permit (CCF 2021-003) for retail and distribution at 1156 Abbott Street. CannaCruz was awarded its permit in 2017 and commenced operations in 2019. CannaCruz has ceased the distribution side of the operation at the current site. The business has not had any compliance issues since the commencement of its operation.

The retail and distribution operations will be integrated rather than separate operations.

Although requiring a separate state license, the distribution premises is established pursuant to state regulations for quality assurance and storage purposes. CannaCruz will be required to obtain the distribution license and maintain a separate distribution premises in order to have authorization to arrange quality assurance testing, which is required prior to retail sale and is authorized only with a distribution license. In addition, the distribution premises City of Salinas 17 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
portion of the operation will be used for the storage of product (batches awaiting a certificate analysis as well as product that has already received a certificate of analysis and is ready for retail sale). Product that has passed the quality assurance testing will be sold at the proposed retail operation.

At this time, due to the current lack of market demand, CannaCruz does not propose delivery services to customers at the new location.

State licenses for storefront retail and distribution will be applied for upon City authorization. There are no other changes proposed to the operation.

Upon issuance of this Amendment, CannaCruz proposes a cosmetic remodel of the existing 20,142 square foot building. The facility will be remodeled to create a lobby, dispensary floor, office area, storage area, packaging area, and secured storage, and security measures.

All interior, standard light fixtures would be replaced with LED bulbs to maximize use of renewable energy and energy efficiency.

The building currently has 39 parking spaces. Based on the sales volume and customer traffic The proposed uses of the building are broken down as follows:

Retail Premises Lobby 1,349 SF
Sales 3,926 SF
Fulfillment (product storage) 6,604 SF
Distribution Premises Batch storage, sampling area, 4,846 SF finished product storage,
packaging in abeling, loading.

Non-Cannabis Employee area 3,421 SF
Currently the building area fronting S. Main Street lacks the landscape treatments in keeping City of Salinas 18 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application • April 2024
CannaCruz has an existing, comprehensive operational manual that details policies and procedures for personnel and training. The operational manual includes policies and procedures for the purchasing and processing all products; regulatory compliance; quality control; inventory control; and staff descriptions. In addition, the employee handbook contains CannaCruz's employee policies and procedures as well as training guidelines.

Organizational Structure
CannaCruz was initially organized as a non-profit cooperative. The Articles of Incorporation were filed with the Secretary of State of California on August 24, 2010.

Pursuant to the Certificate of Amendment of the Articles of Incorporation, CannaCruz which was filed on October 31, 2019, the entity was modified from a non-profit cooperative corporation to a domestic stock corporation.

Grant Palmer and Brad Palmer are the only directors, officers, and shareholders of CannaCruz.

The Operations Plan which details the staffing plan for key personnel for its Salinas facility, including tites, job descripion pand desired experience and qualific riders has no need for nodification as the policies and
Grant Palmer is a local resident of Monterey County. CannaCruz is committed to retaining employees from the City of Salinas.

Proposed Hours of Operation
The hours of operation are 8:00 AM to 9:00 PM, seven (7) days a week. The facility will be open to the public between the hours of 8:30 AM and 9:00 PM.

The proposed new location would receive deliveries of products and supplies will occur between the hours of 10:00 AM and 3:00 PM.

Customers
CannaCruz anticipates that the number of customers will remain unchanged. We anticipate approximately 200 to 400 customers per day.

Products
CannaCruz will continue to offer a wide variety of cannabis products from its proposed dispensary facility in the City of Salinas. The products will include finished flowers, concentrates, edibles, and topical treatments. Products will be sourced from CannaCruz's other operations.

City of Salinas 19 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
Training
There are currently two (2) store leads at the current location who would be responsible for training employees at the Salinas operation. CannaCruz has an employee handbook that details the training provided.

Compliance With State and Local Regulations
• Company has comprehensive standard operating procedures (SOPs) that detail policies and procedures for personnel and training. The operational manual includes policies and procedures for the regulatory compliance; purchasing and processing all products; supplier qualification; inventory control; quality control; vehicle operation, security measures, safety procedures and staff descriptions. In addition, the employee handbook contains Applicant's employee policies and procedures as well as training guidelines. Staff will be trained in all aspects of the operation, including regulatory compliance, security and non-diversion procedures.

References to the Company include its employees and agents. The procedures local and State regulations and will be updated pursuant to those regulations. Applicant's standard operating procedures are detailed in its operational manual. Below are a few of Applicant's operational procedures.

City of Salinas CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
Pro Forma and Statement of Cash on Hand
City of Salinas 21 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
Standard Operating Procedures
CannaCruz has a comprehensive operational manual that details policies and procedures for personnel and training. The operational manual includes policies and procedures for the urchasing and processing all products; regulatory compliance; quality control; inventory control; and staff descriptions. This manual will be adopted and modified as may be necessary for the new location. In addition, the employee handbook contains CannaCruz's employee policies and procedures as well as training guidelines.

CannaCruz's standard operating procedures are detailed in its operational manual. Below are a few of CannaCruz's operating procedures.

Quality Control Procedures
Product Testing Prior to Distribution to Retailers
Cannabis products, except for immature cannabis plants and seeds, are subject to quality assurance and testing prior to sale at a retailer or microbusiness. As a licensed distributor, CannaCruz will be responsible for ensuring that product is tested prior to being distributed to retall. The licensed testing laboratories are SC Labs and 2River Labs.

Cannabis batches shall be stored in a designated batch storage area before testing and continuously until either of the following occurs:

1. The cannabis batch passes the testing requirements and is transported to a licensed retailer.

2. The cannabis batch fails the testing requirements pursuant to State regulations and is destroyed or transported to a manufacturer for remediation as allowed by the State licensing authority.

An employee of CannaCruz shall be physically present to observe the laboratory agent select le random samples and obtain the sample of cannabis goods for testing and ensure that th crements are taken from throughout the batch. The sampling shall occur on video with th batch number stated at the beginning of the video and a visible time and date indication on the video recording footage.

All cannabis batches awaiting test results are stored separately and distinctly from other cannabis.

Upon issuance of a certificate of analysis by the testing laboratory that the cannabis batch has passed the testing requirements pursuant to State regulations, Applicant shall conduct a quality assurance review before distribution to ensure the labeling and packaging of the cannabis and cannabis products conform to local and State regulations.

After testing, all cannabis and cannabis products fit for sale may be transported only from Applicant's premises to the premises of a retailer, microbusiness, or nonprofit licensed by the State of California.

City of Salinas 22 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
Cannabis or cannabis products shall not be sold pursuant to a license unless a representative sample of the cannabis or cannabis products has been tested by a licensed testing laboratory.

When the Company receives a certification of analysis stating that the sample meets specifications required by law, Company shall ensure the following before transport to one or more retailers:

1. The certificate of analysis received from the testing laboratory is the certificate of analysis that corresponds to the batch;

2. The label on the cannabis products is consistent with the certificate of analysis regarding cannabinoid content and contaminants required to be listed by law;

3. The packaging complies with applicable packaging laws including, but not limited to, Business and Professions Code section 26120;

4. The packaging is tamper evident. "Tamper evident" means a one-time-use seal is affixed to the opening of the package, allowing a person to recognize whether ot not the package has been opened;

5. The weight or count of the cannabis batch comports with that in the track and race system. Company shall use scales as required by the Act; and . All events up to this point have been entered into the track and trace system Acceptance of Product for Retail Sale
As a licensed retailer, CannaCruz shall inspect all inventory upon receipt for proper certificate of analysis, packaging, and labeling
Product Recall
CannaCruz maintains a recall plan which provides specific procedures, defines terms, and assigns roles and responsibilities when a safety or significant quality issue arises with a product or supplier. The Plan elements include:
• Recall responsibility assignments.
• Key personnel and external contact information
• Recall procedures including, trace forward process.
• Communication templates.

Disposal Procedures
Product identified as contaminated or excess product will be stored until it is returned to the vendor. CannaCruz purchases product based on demand, and, as a result, there is very little waste due to product that has not been sold.

Contaminated product, excess product and waste will be taken to designated waste area on site.

All trashcans are locked and remain indoors. All recycling and waste will remain in a locked trash can or dumpster indoors until it is picked up. A third-party garbage disposal service removes all cannabis waste material and all recycling and will then transport it directly to the City of Salinas 23 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
Local Salinas government and private disposal services will be utilized for waste removal.

This site will not be used as a production facility. No chemicals or fertilizers will be stored, handled, used, or disposed of on site.

Packaging and Labeling Criteria
All cannabis and cannabis products are packaged and labeled in accordance with the Fair Packaging and Labeling Act, Food and Nutrition Labeling guidelines, and CannaCruz health, safety and informational guidelines.

The combined guidelines require the following information:
• CannaCruz name and address
• Identification of Cannabis goods. This is done either by formula or strain • Statement of Net Contents. Weight in grams of flowers. Weight in grams of edible unit.
• Statement of Potency (available in report form by lot #) • Name of recommending physician (optional)
• Name of customer
• Date dispensed and warning statements "medical use only, not for resale or transfer to another person," "There may be health risk associated with ingestion or use of this product," etc. SEP
• The Food, Drug and Cosmetic Act define the conditions for the manufacturing, packaging, labeling, etc of drugs and food. sep • Food and Nutrition labeling guidelines for edible products include the following information:
• Identification of product, i.e., formula name, strain name, edible name, etc. • Statement of ingredients in order of magnitude, if more than just marijuana. • Nutritional information
• Expiration date ofsepCannaCruz Health, Safety and informational guidelines include:
• Bacterial Testing PASS (any items that fail are rejected) Pesticide Screening PASS (any items that fail are rejected) • Medical Cannabis Profile information (including the level of THC/CBD) Product will arrive at the facility pre-packaged in bulk by the vendor. CannaCruz will re- package product for dispensing.

Cannabis labels and packages will not be made to be attractive to children.

Cannabis product labels will include the following information:
a. Manufacture date and source.
b. The statement "SCHEDULE 1 CONTROLLED SUBSTANCE."
City of Salinas 24 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
C. The statement "KEEP OUT OF REACH OF CHILDREN AND
ANIMALS." in bold print.
d. The statement "FOR MEDICAL USE ONLY."
e. The statement "THE INTOXICATING EFFECTS OF THIS
PRODUCT MAY BE DELAYED BY UP TO TWO HOURS."
f. The statement "THIS PRODUCT MAY IMPAIR THE ABILITY
TO DRIVE OR OPERATE MACHINERY. PLEASE USE
EXTREME CAUTION."
Packages containing only dried flower, will have a net weight of the medical cannabis written on the package.
h. A warning if nuts or other known allergens are used to make the product.
i. List of pharmacologically active ingredients, including, but not, limited to, tetrahydrocannabinol, cannabidiol, and other cannabinoid content, the THC and other cannabinoid amount in milligrams per serving, servings per package, and the THC and other cannabinoid amount in milligrams for the package total.

Waste Procedures
Product identified as contaminated or excess product will be stored until it is returned to the vendor. CannaCruz purchases product based on demand, and, as a result, there is very little waste due to product that has not been sold.

Contaminated product, excess product and waste will be taken to designated waste area on site.

Local Salinas government and private disposal services will be utilized for waste removal.

This site will not be used as a production facility. No chemicals or fertilizers will be stored, handled, used, or disposed of on site.

Odor Management
The proposed facility is a dispensary selling finished, packaged product only, and no cultivation, manufacturing, or consumption will take place at the facility. Therefore; odor will be minimal.

Odor Control Devices and Techniques
• Odor absorbing ventilation and exhaust system by way of a Carbon Filtration System.

As well as a negative air pressure system to control the flow of air between the interior and exterior of the dispensary.

City of Salinas 25 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
• Vacuum Sealing of products, sealed containers, HEPA Filtration on HVAC system.

Inventory Control Procedures
All individual batches of products are separately vacuum sealed and labeled with their specific batch numbers (that correlate to the inventory/POS system) in a locked storage box within the locked vault that is under constant video surveillance.

Product will be weighed prior to and after the packaging and labeling process to ensure that the weight of the resulting amount does not differ from the weight of the product prior to packaging. If any discrepancies are discovered, the security camera videos from the packaging area and storage area will be reviewed to determine whether product has been diverted.

Each day before opening and after closing a manager will conduct a quality control and inventory check which will include verifying that all products have not exceeded their expiration, do not contain any contaminants, that all products are in a clean, organized environment, and that the quantity of each product is accounted for in correlation to our inventory/POS system to visually ensure the quality of each product.

Our sole purpose is to provide the highest quality of cannabis goods to only to legally verifiable customers. Any diversion of the cannabis goods to any non-verified, legal customer is to be prevented and avoided.

Transportation - Distribution
As indicated, the distribution license would be for the purpose of storage of product to be sold at the proposed location and therefore, mainly for quality assurance purposes. At such time that there may be a business advantage to adding delivery services, the following procedures would be followed.

Cannabis or cannabis products that are being transported for distribution to other licensees will meet the following requirements:

1. Applicant's transport employees shall only travel between licensees shipping or receiving cannabis goods and its own licensed premises when engaged in the transportation of cannabis goods. The transport employee may multiple shipments of cannabis goods at once in accordance with applicable laws.

2. During transportation, the transport employee shall maintain a copy of the facility's cannabis facility license and shall make it available upon request of agents or employees of the State, County of City requesting documentation.

Packages or containers holding cannabis goods shall not be tampered with, or opened, during transport.

4. Cannabis goods shall only be transported inside of a vehicle or trailer and shall not be visible or identifiable from outside of the vehicle or trailer.

5. Cannabis goods shall be locked in a box, container, or cage that is secured to the inside of the vehicle or trailer.

City of Salinas CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
Vehicle transporting Cannabis or Cannabis products will travel directly from the shipping licensee to the receiving licensee and its own licensed premises and will not make any unnecessary stops in between except to other facilities receiving product. The transport employee shall not leave a vehicle or trailer containing cannabis goods unattended in a residential area or parked overnight in a residential area.

Transportation - Retail Delivery
At this time, delivery is not proposed. At such time that there may be a business advantage to adding delivery services, the following procedures would be followed All deliveries of cannabis goods shall be made in person. A delivery of cannabis goods shall not be made through the use of an unmanned vehicle.

During transport, the transport employee shall carry the following:

1. A copy of the Applicant's current license, the employee's government-issued identification

2. A company identification badge.

All transports must be made to a physical address of a privately owned and/or leased property in the State of California (not owned ot leased by a public agency).

While making deliveries of cannabis goods, the transport employee shall only travel from the premises to the destination addresses of licensed premises; from one destination address to another destination address; or from a destination address back to the premises. A transport employee of the Applicant shall not deviate from the destination path described, except for necessary rest, fuel, or vehicle repair stops, or because road conditions make continued use of the route unsafe, impossible, or impracticable.

Sales Floor Processing/Dispensing Procedures
The track and trace system records all distributions broken down by product for auditing purposes. The seed to sale software tracks all inventory adjustments by date and time.

The inventory/POS software program will help ensure each individual customer does not receive more than the allocated amount of cannabis goods by being able to record each ransaction. The inventory/POS software program will report each transaction broken dow y catepories including but not limited: to weight of individual products by batch numbet gross revenue totals, customer personal data including but not limited to, birthdate and ID number.

Accounting and Recordkeeping Procedures
Accounting
CannaCruz has engaged a licensed CPA to handle its financial matters in addition to Bradford Palmer who serves as the CFO.

City of Salinas 27 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
In addition, CannaCruz has accounts with Santa Cruz Community Credit Union.

Financial Record Keeping
Financial record keeping is done daily and backed up at all times. This would include daily revenue numbers, customer count and sales tax received on a excel spreadsheet, as well as all vendor transactions organized in QuickBooks. Weekly backups of all hard drives will be done including all seed to sale information are done and stored in a water/fire resistant safe inside a vault room with limited personal access. All physical records of purchases, inventory logs, and daily receipts, are kept in a secured vault under video surveillance for 10 years.

We issue 1099s to all vendors, record dispensing permit information, and batch numbers.

Track and Trace Procedure
Our point-of-sale (POS) system records all distributions broken down by product for auditing purposes. The seed to sale software tracks all inventory adjustments by date and time.

Age Verification and Youth Access Restriction Procedures A security employee at the lobby entrance will be checking for valid California ID's to ensure the age of the potential customer prior to entering the lobby. After their age has been verified at the entrance, they will be admitted.

A verification specialist will then verify the potential customers ID card. Upon entering the customer's information into our point of sale system has safe guards in place to disallow a minor being entered into the computer.

City of Salinas 28 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
Operational Manual
The Operational Manual is being provided under separate cover.

City of Salinas 29 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
Employee Handbook
The Employee Handbook is being provided under separate cover.

City of Salinas 30 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
3 Neighborhood Compatibility Plan
CannaCruz's goal is to provide the purest organic, high-grade "cannabis goods" available, in a sate, comtortable and affordable environment. CannaCruz intends on being the preeminent dispensary for providing means of smokeless cannabis goods as well as leading scientific information to all customers.

We hope to achieve high levels of customer care and service based on exceeding expectations, requirements and regulations in each of the following areas:
• Employee, Dispensary, customer and Neighborhood Safety • Sensitivity, Discretion and Confidentiality
• Availability and Dissemination of Valuable Information Consistent Quality and Variety of Cannabis goods
• Meaningful and Impactful Dispensary Involvement and Interaction with the surrounding neighborhood and community
• Continuous Innovative Improvements
Regulatory Compliance
It is of utmost importance to CannaCruz and the industry as a whole for our facilities to be good neighbors. CannaCruz's Santa Cruz facility has demonstrated that it can be a good neighbor through good values and policies, and CannaCruz plans to implement the same policies at its Salinas facility.

The facility at 1228 S Main Street will be a dispensary, and no cultivation will take place on the premises.

CannaCruz staff will continue to train and educate all staff regarding CannaCruz's rules and expected conduct.

Information To Be Posted at Facility
The following general information will be displayed in the entry lobby in a large format:
• Hours of operation be 8:30 AM to 9:00 PM, 7 days a week. • CannaCruz will prohibit loitering by persons outside the establishment, either on the premises or within 50 feet of premises.
• CannaCruz will clearly post "No Smoking" signs inside, in front, and in the parking lots of the building.

No cannabis goods shall be smoked, vaporized, ingested or otherwise onsumed on the premises. Including the parking lot and surrounding publi rea and sidewalk. ANY PATIENT VIOLATING THIS RULE SHALI LOSE ALL FUTURE PRIVILEGES AT CannaCruz.

City of Salinas 31 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
• Double-parking by clients, visitors or delivery vehicles, will not be permitted at any time.

Employee Policies
As set forth in the operational plan regarding employee conduct (Section 3.8), CannaCruz staff and security personnel will always treat our neighbors and clientele with the utmost respect. As this is an environment for healing and wellness, aggressive or unkind behavior will not be tolerated at any level.

Community Relations
In order to mitigate any possible nuisances to neighboring businesses and establishments due to the proposed business, Applicant will also reach out to neighboring properties to ensure that neighbors' issues in relation to our facility are addressed promptly and that our facility is operated responsibly and with the least impact possible. We will take any comments or concerns very seriously.

CannaCruz will be committed to be a good neighbor in the area of the project site. We believe that the improvements to the building and site will provide immediate benefits to the neighborhood and the larger community once completed. Our overarching goal is to be professional, discrete and secure. We are confident we can control all security and operations to reduce nuisance potential to a minimum. We will constantly strive to have no impact on local law enforcement as well as on the neighborhood and the community as a whole. All public relations, when at all possible, will be performed in person.

On Site Contact
CannaCruz will provide the contact information of a community liaison to its neighbors and to the City so that any issues or concerns may be communicated directly to the company.

We will work with the community to resolve issues in a proactive manner.

CannaCruz will have a designated on-site contact for the facility 24 hours per day, 7 days per eek. We will encourage the neighbors to call our on-site contact if any questions, concerr t complaints arise. Every effort will be made to solve any operating issues that may b affecting the neighbors before any calls or complaints arise.

Additional Policies
Additional policies are set forth in the Operations Plan.

City of Salinas 32 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
Customer Policies
No littering, loitering, smoking, consumption of product or alcohol, or disruptive behavior anywhere on the premises will be allowed.

The following rules will be displayed in the entry room in a larger format and will also be initialed and signed by each customer:

Customers will not use cell phones inside the CannaCruz building. • All customers will pass through a metal detector upon entry or "wanded" by security personnel.
• Customers should leave all backpacks, bags or any other carrying device in given. CannaCruz will not be held responsible for lost or stolen articles. • Customers visiting CannaCruz will not be admitted if they have friends waiting in a car or loitering outside.
• All customers should keep all containers sealed and wait to consume their cannabis goods once at home. If this is not possible, safety and legality must be considered at all times.
• All customers are strictly prohibited from selling, trading or distributing cannabis goods they have acquired from CannaCruz or any other source. • No loitering is permitted on the premises or within 50 feet of the premises.

No computers or electronic tablets allowed inside CannaCruz. • Customers must be as discrete as possible whenever coming or going from CannaCruz.
• Customers found breaking these rules run the risk of being banned from this facility as well as others. CannaCruz can and will file a complaint with the card issuing organization and that organization can at its own discretion terminate the recommendation. CannaCruz security staff will also respond as trained if they witness any felonies in progress, such as illicit drug transactions or other crimes.
• If at any time a customer feels as though they were not treated in a respectful and compassionate manner, they should ask to see a manager. Disrespect will not be tolerated in any form.

Customer Education
CannaCruz is committed to educating its customers to be good neighbors.

CannaCruz will hand out educational material to all new customers, upon their first visit, hich will advise where and when to use their cannabis goods safely. Common dru teractions and forms of consumption will also be described to ensure the safest possib access and use.

City of Salinas 33 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
CannaCruz will also post these same "Good Neighbor" /"Safe Access and Use" guidelines in the entry room, in a large format.

Loitering will not be allowed in the CannaCruz private parking lot or surrounding areas.

No consumption, vaporization or ingestion of any kind are allowed anywhere on the CannaCruz premises or surrounding area.

Absolutely no trading, reselling of distributing of cannabis goods will be permitted.

CannaCruz security will respond as trained if they witness a felony in progress, such as an illegal drug transaction.

In the event that a customer fails to comply with CannaCruz's policies or posted conditions, misrepresents his/her qualifications for participation or is found to be misusing the CannaCruz services, the following procedure will be followed:
• CannaCruz staff/security will write a report as to the incident and attach it to the customer file in the Point of Sale System.
• CannaCruz staff will inform management immediately.
• The customer will then lose all privileges at CannaCruz. A complaint report will be sent to the applicable government agency. The issuing agency will be responsible for any further action.

Security Management
CannaCruz will have at least one (1) uniformed security presence at all times during business hours. If volume or enforcement demands it, additional uniformed personnel will be employed.

In the entry lobby of CannaCruz we will have one CannaCruz staff member who will greet and be verifying customer/Caregiver status and one uniformed Security personnel scrutinizing safety and security concerns.

Notification
If any activity is noticed that seems suspicious, or out of the ordinary, management and security patrol staff will be notified. They will determine a response that is appropriate for the situation, which may include notification of the employees, the community and local authorities. The safety of employees, customers and the community are the priority.

On Site and Community Relations Contacts
CannaCruz will provide the zoning administrator, the chief of police and all neighbors located within 50 feet of the establishment with the name, phone number and facsimile number of an on-site community relations staff person to whom one can provide notice if there are operating problems associated with CannaCruz. CannaCruz will make every good City of Salinas 34 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
faith effort to encourage neighbors to call this person if any questions, concerns or complaints arise and to try to solve operating problems, if any, before any calls or complaints are made to the police department or the zoning administrator. annaCruz will provide a 24-hour contact number to the local authorities. All incomir ills to CannaCruz atter hours will be routed to the 24-hour contact number. CannaCruz phone number will be affixed to all cannabis goods sold.

A policy of routine contact of all agencies as well as neighbors will be maintained to resolve any issues concerning operations, safety, security as well as a continued effort to educate our community to the need and benefits of cannabis.

It is CannaCruz's goal to be professional, discrete and secure. CannaCruz is confident we can control all security and nuisance potentials. We will constantly strive to have zero impact on local law enforcement as well as our community as a whole. All public relations, when at all possible, will be performed in person.

Mr. Grant Palmer is currently CannaCruz's public relations person as well as 24-hour contact Facility Maintenance and Security
We will have a well-maintained property and facility in order to ensure that all equipment is in good working condition and operating efficiently.

The retail portion of the facility will operate no more than 12 hours per day between the hours or 8:30 AM and 9:00 PM, seven (7) days a week.

Any exterior lighting of the parking area will be kept at a sufficient intensity so as to provide adequate lighting for patrons, while not disturbing surrounding commercial areas.

CannaCruz will meet any specific additional operating procedures and measures as may be required by the City permit in order to ensure that CannaCruz will be a good neighbor.

The facility shall be clean, neat and organized. Everything has its place. CannaCruz staff will provide litter removal services each day inside, in front of and around the property, parking lot and sidewalk area, each day of operation.

A pest control program will be in place. All doors shall remain closed. All areas will have adequate lighting and ventilation. All functional areas and equipment will be identified.

CannaCruz will have at least one uniformed security presence at all times during business hours. If volume or enforcement demands it, additional uniformed personnel will be employed.

City of Salinas 35 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
In the entry lobby of CannaCruz we will have one CannaCruz staff member who will greet and be verifying customer status and one uniformed Security personnel scrutinizing safety and security concerns.

The following additional security measures will be implemented at the facility:
• All exhaust fans directing air outside of the building will be at a diameter where the blades cannot be bent, not allowing anyone to pass through. • Garbage and green waste containers will be kept in a fully enclosed and locked area at all times.
• Security alarms for the building will include motion activation and manual activation capabilities.
• Exterior security lights will provide 360-degree coverage around the perimeter of the building while being downward facing and shielded. • Exterior security cameras will have recording capabilities and the recordings will be accessible to police within 24 hours.
• In conjunction with the exterior security cameras, cameras will be installed within the business itself and shall cover the doors, windows, and the dispensary counter area of the business.
• All doors and windows will be fortified
• All plants, shrubs, and trees will be trimmed to allow unobstructed visibility to the business storefront from the street.
• A trespass letter will be obtained from the Police Department to assist officers in addressing criminal behavior when it does occur on the premises after hours. CannaCruz will fill out a trespass letter, which permits Law Enforcement to arrest anyone unlawfully on their property. The trespass letter is valid for one year and will be renewed annually.

The employee who is classified, titled, or fulfills the role as "Security Chief," shall possess a valid guard card as required by the State of California Department of Consumer Affairs, Bureau of Security and Investigative Services. If a security chief is not maintained, a uniformed private security guard on the premises during business hours shall fulfill this requirement.

Compatibility With Surrounding Uses
The project site is located in CR-FG-3 (Commercial Retail - South Main Street Focused Gistrict. One plajest siln is Districted by otecial macis tas, such albertal use in the cal offices, gas stations, hair salons, restaurants, and supermarkets Main Street and Blanco Road are major thoroughfares in the City of Salinas. The site will be accessible and visible to existing automobile traffic while also providing 39 existing parking spaces for the 3,926 SF of proposed retail sales area
City of Salinas 36 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
The site is currently occupied by a retail furniture store, which is currently in the process of closing. No business would be displaced by the proposed cannabis retail operation. block wall. Any sensitive uses would be buffered from the proposed operation by block walls, landscaping and other businesses and the proposed site complies with the 600 foot radius per the State regulations.. If necessary, we propose to add landscaping along the existing buffer wall around the property to properly separate from the residential zones.

The closest churches are located adjacent to each other approximately 897 feet and 1,536 feet from the newly proposed location.

The Saint Ansgars Lutheran Church located at 72 E San Joaquin Street is within 1,000 feet of the proposed site. The hours of operation for the church are Sunday 8 AM to 1PM and Monday through Thursday 9AM to 4PM. This includes religious education at 9AM and worship service at 10AM on Sundays. The church offers various weekly events including bible study programs on Tuesdays from 12PM to 1PM and 6PM to 8PM. The church is located on the opposite side of Main Street, which is a major thoroughfare. Pedestrian and vehicle traffic between the church and proposed location is highly unlikely.

There are several alcohol related establishments located approximately within 1,000 feet from the newly proposed location. Most of the businesses within 1,000 feet of the proposed location identified as "alcohol related" are grocery stores and sit-down restaurants. The Clout Nine Cigar and Vapor business is located adjacent to the Lucky grocery store in a separate shopping center located on the opposite side of Nissen Road separated by another shopping center and several buildings.

The building currently has 39 parking spaces. Based on the sales volume and customer traffic at CannaCruz's other facilities, the amount of parking should be ample for the 3,926 SF of retail sales area. Although requiring a separate state license, the distribution portion of the operation will be integrated and will not create additional parking demand.

Currently the building area fronting S. Main Street lacks the landscape treatments in keeping with adjacent properties. Landscaping of this segment is proposed in order to maintain the continuity of the landscape treatments along S. Main Street. In addition, in keeping with the storefront character of the surrounding uses, CannaCruz proposes to include non-cannabis merchandise as part of its storefront display.

City of Salinas CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
4 Security Plan
Security is of paramount importance here at CannaCruz. Every aspect of the facility's operation and procedures has a strong emphasis on security and preventing the theft and diversion of cannabis. We are keenly aware of the unique security challenges that a business like ours faces and we have taken extensive measures to have professionally vetted policies, procedures and systems in place to provide comprehensive protection for our employees, customers and patients, while protecting and securing the facility and inventory. Our security measures meet or exceed the local and Department of Cannabis Control (DCC) regulations.

Our security plan ensures full compliance with local and DCC regulations. As the cannabis industry further develops in California, we recognize that cannabis regulations are likely to evolve. CannaCruz is committed to continually monitoring changes in the laws, rules and regulations, updating our security plan accordingly to keep current with all applicable requirements.

Perimeter Security
CannaCruz considers itself part of the community and, as such, always maintains and cleans our grounds to ensure good standing locally. To reduce theft, loss and diversion, all areas of the dispensary are to be maintained free of debris and kept clean and orderly. • Trash is properly removed from the secured storage room • Floors, walls, and ceilings are kept in good repair at all times • All onsite graffiti is removed within 24 hours of discovery A maintenance checklist is used to record any maintenance activity, cleaning, sanitization or aspection of any of these activities. These checklists are kept in the appropriate electroni le for a period of at least seven (7) years. The checklist is reviewed each week by senic management to identify and correct any concerns regarding maintenance.

CannaCruz ensures that all cannabis and cannabis products are never visible or accessible from outside of the premises.

The video surveillance system encompasses the entire perimeter and parking lot and records all activity 24/7. The outside perimeter of the dispensary is well-lit to accommodate video surveillance.

The premises will be monitored by the alarm system and company. The combination of notion detectors and glass break detectors ensure the perimeter always has armed alarm ideo analvtics services are utilized in the event of an alarm activation to sync the event wit persons and activity.

The company will trim all trees, bushes and other foliage around the dispensary on a regular basis to ensure that no one can conceal themselves from the security camera view.

City of Salinas 38 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
Loitering!
CannaCruz has a zero-tolerance policy regarding loitering. Customers will not be allowed to have anyone waiting for them in the parking lot. All visitors must enter the building and wait in the lobby.

Parking
Significantly increasing security, only our in-house distributor will serve the dispensary, at ecied interval, randomised times allowed omarked mics luring iheduled shit so th paring lot is fenced off sad will be monitored via live kiced 21 bours per day, 7 days per All parking areas are well lit and monitored via video surveillance systems. Upon request, any customer or employee will be walked to their vehicle by security. The company does not allow any loitering or use of cannabis on the premises. All customers who have completed their business at the dispensary are expected to exit the premises in a timely fashion.* Exterior Lighting
Statistics show that crimes are less likely to occur in well-lit areas because a well-lighted property is an excellent deterrent against criminals. Security lighting is one of the most practical and effective ways to prevent crime in or around commercial facilities.

The main objectives of the security lighting system at the dispensary are to illuminate dark and detect and recognize movement in the protected area. The best vision with outdoor lighting is obtained from downward directed and shielded security lighting that is constantly on and supplemented with instant-on lighting triggered by motion detectors.

CannaCruz will provide adequate interior and exterior lighting for safety and security as determined by the Police Chief or designee. All entrances and windows will be fully illuminated during the hours of darkness. All lighting is deflected away from adjacent properties and used to illuminate the dispensary premises. Lighting covers all entrances and exits, all possible points of intrusion, sidewalks and adjoining sidewalks, facades, parking lots, immediate surrounding areas and exterior walls of the dispensary. Automatically controlled lighting is checked and inspected regularly for proper operation prior to darkness.

Adequate emergency lighting is provided for indoor evacuation routes and goes into operation automatically when needed. The lighting system is designed and exact locations recorded so that repairs can be made more rapidly in an emergency. Switches and controls are properly located, waterproof and tamper resistant and centrally located. The lighting system is regularly inspected, and any failures are to be repaired within 24 hours. 1 City of Salinas municipal code Sec. 5-07-24 - Security measures (a)(1) - loitering 2 City of Salinas municipal code Sec. 5-07-24 - Security measures (a)(1) - Loitering 3 City of Salinas municipal code Sec. 5-07-24 - Security measures (a)(4) - 24-hour video surveillance 4 City of Salinas municipal code Sec. 5-07-24 - Security measures (a)(1) - loitering City of Salinas CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
Motion detecting flood lights will be installed around the perimeter of the building and parking lot. The lights will turn on automatically at dusk using light sensors.

Signage
There are posted signs informing individuals of the surveillance system in conspicuous locations inside the dispensary. The signs are a minimum of 12 inches in height and 12 inches in width in lettering no smaller than ½ inch in height:

NOTICE: VIDEO SURVEILLANCE IS IN USE ON THESE PREMISES.

AVISO: LA VIGILANCIA VÍDEO ESTÁ EN USO EN ESTOS LOCALES.

The company also conspicuously posts signs informing individuals that all safes have a time delay. Since time delays are effective at reducing robbery losses, this notice is intended to deter criminals from attempting an armed robbery.

The Dispensary Floor Sales Area has a sign posted in a conspicuous location stating:

SMOKING, INGESTING OR CONSUMING CANNABIS ON THIS
PROPERTY OR WITHIN 100 FEET OF THE BUSINESS IS PROHIBITED.

ESTÁ PROHIBIDO FUMAR, INGERIR O CONSUMIR CANNABIS EN ESTA PROPIEDAD O A 100 PIES DE LA EMPRESA
Finally, the company has posted a sign in all restricted access areas of the dispensary containing cannabis, including the secure storage room. The sign is a minimum of 12 inches in height and 12 inches in width and in lettering no smaller than ½ inch in height and unambiguously states in a conspicuous location:

DO NOT ENTER-RESTRICTED ACCESS AREA-ACCESS LIMITED TO
AUTHORIZED EMPLOYEES ONLY.

NO INGRESE-ÁREA DE ACCESO LIMITADO-ACCESO LIMITADO SÓLO

A LOS EMPLEADOS AUTORIZADOSS
Physical Security Measures
CannaCruz. has developed a comprehensive physical security measures plan. Our alarm system is monitored by First Alarm and is equipped with panic buttons, motion sensors, door and window sensors, and glass break sensors., Executive staff and law enforcement are notified by our alarm company of any security breach. We will maintain our state-of-the- ait plan, leveraging industry best practices and using the most up-to-date technology, ensuring that our dispensary facility operates at the highest level of security preparedness with monitoring of a live feed 24 hours per day, 7 days per week. We are confident that 5 City of Salinas municipal code Sec. 5-07-24 - Security measures (a)(2) - Limited access 6 City of Salinas municipal code Sec. 5-07.24 - Security measures, (a)(6) - panic buttons 7 City of Salinas municipal code Sec. 5-07-24 - Security measures (a)(4) - sensors 8 City of Salinas municipal code Sec. 5-07-24 - Security measures (a)(7) - alarm system City of Salinas 40 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
should there be any breach of security, our comprehensive response capabilities will ensure the incident is quickly detected, contained and resolved at the appropriate response level.

Proposed security improvements to the Salinas facility include the following:

Security Doors
The facility entrance will have a bullet proof from the exterior to the lobby of the building.

Entrance through the door may be granted only from the interior ("buzz door"). The public entrance into the lobby will have a metal detector. A second buzz door will separate the lobby from the dispensary area. This door will be opened (buzzed) only from the dispensary floor.

Alarm System'
A professionally monitored alarm system with glass breakage sensors and motion detectors alarm system will be installed at the new facility. First Alarm is utilized as an auxiliary service for alarm monitoring at the existing location as well as at its Santa Cruz facility.

Sensors10
The alarm system will include the provision of motion sensors installed in all rooms, doors and windows to detect entry and exit from all secure areas. Motion and vibration sensors will be added to all walls and windows. Upon detection of motion or vibration, an alert will be sent to the manager's mobile phone as well as to the camera monitoring station. Motion and vibration detection will trigger the video for the area of motion to be shown on the cameras at the monitoring station. If an intrusion is suspected, the Salinas Police Department will be notified immediately. Panic buttons will be installed in appropriate locations.' Windows
Bars will be added to the interior of all windows. In addition, bullet-proof security film will be added to the interior of all windows. The security film will be reflective from the exterior in order to block visibility from the exterior. All windows will have motion and vibration detectors that trigger the alarm system.!
Security Personnel'
CannaCruz employs its own guards to provide security.

CannaCruz employs at least four (4) uniformed security personnel during business hours.

The uniformed security personnel oversee the security plan and serve as a liaison with the 9 City of Salinas municipal code Sec. 5-07-24 - Security measures (a)(7) - alarm system 10 City of Salinas municipal code Sec. 5-07-24 - Security measures (a)(4) - sensors 11 City of Salinas municipal code Sec. 5-07.24 - Security measures, (a)(6) - panic buttons 12 City of Salinas municipal code Sec. 5-07-24 - Security measures (a)(4) - sensors 13 City of Salinas municipal code Sec. 5-07-24 - Security measures (a)(9) - security personnel City of Salinas 41 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
executive staff and have oversight responsibility to review and update the plan on a regular basis. The general manager also is a licensed security guard. survey the surrounding areas, control access into the building, and Video Surveillance System 4
Our video surveillance system is comprehensive. Camera locations are indicated on the site plan.

The security plan includes security camera monitoring of all site and facility entrances and access points, all spaces accessible by the public, all secured areas of the facility with restricted access, all interior spaces and rooms where Cannabis products are handled and processed, shipping and receiving areas, cash storage areas, and other areas necessary to protect the safety of employees and the public, and to ensure medical marijuana products are received, handled, stored, packaged, shipped, and distributed in compliance with applicable local and state laws and regulations.

CannaCruz implements a video surveillance system utilizing commercial grade equipment installed in a manner that prevents cameras and recordings from being readily obstructed, tampered with or disabled. This system is designed to detect diversion, theft or loss of cannabis or cannabis products and capture clear and certain identification of all persons in or around the dispensary.

Interior and exterior locations of the business property are monitored at all times by closed circuit and IP camera system for security purposes in the Security Office. Cameras record 24 hours a day, 7 days per week at a minimum of 20 frames per second (FPS) with adequate quality, color rendition and resolution to allow sufficient identification of any individual committing a crime on the location premises.

Live video feed is also remotely accessible for local law enforcement, the Director of Security and senior management, local and any California state agencies involved in regulating dispensaries, including the DCC. This live video feed allows emergency dispatchers to remotely access video, providing first responders better situational awareness when responding to emergencies.

Camera recordings will be secured and retained by First Alarm on the premises for a minimum of 90 calendar days. The Police Department will have unrestricted access to those recordings, and may make copies thereof, during normal business hours without the requirement of a search warrant.
14 City of Salinas municipal code Sec. 5-07-24 - Security measures (a)(4) - 24-hour video surveillance
City of Salinas 42 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
Safety and security purposes for the surveillance system include but are not limited to:
• Protection of individuals, including employees, visitors and customers • Protection of property, cannabis, building perimeter, entrances and exits, lobbies and corridors and receiving areas and storage areas
• Verification of alarms and electronic security systems • Video patrol of restricted areas
• Deterrence of criminal activity
• Investigation of criminal activity and disciplinary action The company uses a professionally monitored, sophisticated, high-definition video surveillance system that records all activity in images capable of clearly revealing details including:
• Employee and visitor ID badges
• Facial features and tattoos for identification
• Vehicle license plates
The company designates and trains an employees) to continuously monitor the security system and surveillance system at the dispensary. This monitoring employee on duty communicates to senior management any unusual occurrences.

Camera Placement
CannaCruz. will use line-of-sight camera placement at the dispensary, which is capable of clearly revealing facial detail and identifying all persons on the premises under not only normal, but all, lighting conditions in and around the following:
• All controlled access areas - Because all areas inside the dispensary have controlled access, the company has strategically positioned cameras in all legally-applicable rooms (cameras do not record the inside of restrooms for instance) to optimally record in coordination with the safety and security purposes of the surveillance system.
• The security storage area - This office houses sensitive security equipment, including but not limited to the stored surveillance recordings.
• All point of sale (POS) areas with fixed camera coverage capable of identifying activity occurring within a minimum of twenty (20) feet - Each point of sale location for the identification of each dispensary employee dispensing cannabis or cannabis products and any customer purchasing cannabis or cannabis products, as well as the sale, the individuals and the computer monitor used for the sale per DCC $15044(e) • Areas where cannabis goods are displayed for sale - This includes display cases on the Dispensary Floor Sales Area.
• The perimeter of the building, including parking areas • All areas involved with receiving cannabis
• The Secured Storage Room and safe
All cameras are installed at a height that provides an optimal vantage point to allow a clear image of all individuals and activities in and around the premises. This coverage includes all City of Salinas 43 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
entrances and exits from both indoor and outdoor points. The system operates under not only normal lighting, but all lighting conditions for each area. The surveillance system cameras can identify persons, license plates, vehicles and activities within any area of the premises and within twenty (20) feet of all entry and exit points to and from the premises.

The company maintains and updates a map of the camera and alarm locations, the direction of coverage, camera numbers, security equipment maintenance activity log, user authorization list and operating instructions for the camera equipment. This documentation and map are kept in a secure area and is updated whenever a camera's location is changed.

Video Management System
CannaCruz utilizes a multi-channel Internet Protocol (IP) embedded network video recorder (ENVR) which functions as the security system's central hub. The ENVR records video from multiple cameras in a digital format to a disk drive, USB flash drive, SD memory card or other mass storage device. The ENVR is remotely accessible at all times through a secure web portal for senior management, the DCC and local law enforcement. Surveillance recordings are kept in a manner that allows the DCC to view and obtain copies of the recordings at the licensed premises immediately upon request.

The ENVR is a transmission control protocol (TCP) capable of being accessed through the internet. The company can send, or otherwise provide, copies of the recordings upon request.

Remote accessibility permits senior management, the DCC and local law enforcement to view live footage and review security logs from the dispensary at any time. Direct feed and login capabilities have been provided to the DCC and local law enforcement to allow for real-time access and monitoring. This allows the DCC and local law enforcement to verify, at will, that the company is following all applicable security and procedural requirements.

Cameras in the main entrance record individuals every time they enter and leave the dispensary or warehouse, and the ENVR takes photos from these recordings so that up-to- date photos of employees, visitors and customers are maintained. The video system produces a clear color, still image in a digital format and clearly displays the time and date on the video. The date and time do not significantly obscure the picture and will synchronize in accordance with the official United States time established by the National Institute of Standards and Technology.

The ENVR allows the export of still clear color digital images in industry-standard image formats, including jpg, bmp, and gif. The company also utilizes a color printer capable of immediately printing clear color, still photos at a minimum of 9600 dpi from any camera image live or recorded. The ENVR automatically archives exported surveillance footage in a proprietary format that ensures authentication of the video and guarantees that no alteration of the recorded image has taken place. The exported footage is archived in an industry- standard file format that can be viewed on a standard computer operating system.

City of Salinas 44 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
Even though the ENVR automatically stores all recordings and electronic security logs, this information is also backed up and stored on a cloud-based server. The video surveillance system has the ability to record all images captured by each surveillance camera for a minimum of 90 days in a format that is easily accessible for investigative purposes.

Video storage is kept in a locked cabinet within the security office with access limited to authorized personnel, law enforcement agencies, security system service employees and the DCC. Security equipment such as the ENVR and hard drives for storage are secured in a fire-retardant rack.'
Video Surveillance Storage
The security system equipment will be installed in a secure area to prevent thett, loss, destruction or alterations. This secure area houses the following equipment: an ENVR, multiple 24" call-up monitors connected to the electronic recording security system at all times, a computer (one call-up monitor may double as the computer monitor), a color printer, video playback equipment, a master intercom, a phone, an alarm panic button and a lockable case for portable equipment.

Access to the security equipment is limited to employees that are essential to surveillance operations, law enforcement or security system service employees. Access to the security equipment and computer is password protected. All security system equipment and recordings are maintained in good working order.

At the dispensary, the company will always have a designated and trained employee to continuously monitor the security and surveillance systems. This monitoring employee on duty communicates to senior management any unusual occurrences.

The company acknowledges that local and DC authorities may request the recordings in connection with an investigation. If the company is aware of a pending criminal, civil or administrative investigation or legal process for which a surveillance video recording may contain relevant information, the company will retain an unaltered copy of the recording until the investigation or proceeding is closed or the entity conducting the investigation or proceeding notifies that it is no longer necessary to retain the video recording.

The company will make video recordings available to local and DC authorities upon request. The company is able to produce a digital video disk using an installed media perating system. After the surveillance video retention schedule has lapsed, surveillanc ideo recordings will be erased or destroyed prior to being discarded or disposed of for an other reason.
15 City of Salinas municipal code Sec. 5-07-24 - Security measures (a)(2) - limited access City of Salinas CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
Inspections and Repair
CannaCruz keeps all video surveillance, access control and alarm security systems in good working order 24 hours a day, 7 days a week. The security systems are to be inspected and all devices tested at least twice a year by a qualified security consultant. For inspection:
• The company conducts an internal maintenance inspection once a month and ensures that all necessary repairs, alterations, and upgrades are made for the proper operation of the systems.
• The company keeps a maintenance activity log which includes:
• The identity of the individual performing the service • The service date and time
• The reason for the service to the systems
• The company retains at the dispensary, for at least seven (7) years, a maintenance activity log of all inspections, services, alterations and upgrades performed on the system.

The maintenance activity records will be made available upon request to the local and DCC authorities.

The company has installed a failure notification system that provides an audible, text ot risual notification of any failure in the surveillance system or video surveillance-systen torage device. The failure notification system provides an alert to management within ! minutes of the failure either by telephone, email or text message In the event of a prolonged failure of the surveillance system, the company has taken steps to ensure theft and diversion techniques are mitigated by other means.

Back-up Power Source
To prepare for a power outage, the video surveillance system is equipped with an ninterruptible power supply (UPS) synchronized with a compatible high-output generatc provide a seamless transition from main power to auxiliary power in the event of a powe outage. In the event of a system failure, an immediate alert will be provided via email, phone and text message to senior management by the system."
Secure Storage
The company's storage policies are designed to ensure that all cannabis is secure and safe from theft and diversion. Cannabis, not located in display cases, is secured in the Secure Storage Room. Areas containing inventory of cannabis are restricted to employees who require access.

All cannabis, which includes quarantine and pending disposable cannabis is kept in secured storage. All cannabis that requires refrigeration is kept in a refrigerator unit inside the secured storage room.
16 City of Salinas municipal code Sec. 5-07-24 - Security measures (a)(10) - power City of Salinas 46 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
Secure Storage Room
The Secured Storage Room is a restricted access area exclusively available to owners and managers. Designed with a single entry and exit point, it features comprehensive surveillance camera coverage for enhanced security, and a single solid door." A two tier safe allows for cash drops without opening the entire safe. This level of security ensures that valuable assets, like cannabis products and cash, are protected from a wide array of potential threats and unauthorized access.

Display Cases
Cannabis products on the Dispensary Floor Sales Area are locked in display cases to provide visual representations to customers. Only approved dispensary employees have the display door key and remote-control release button to open the display case. 18 During normal business hours, cannabis that is ready to be sold is removed from the Secure Storage Room and secured in storage cabinets. Unsold cannabis is returned to secured storage at the end of the night.

Community Liaison
CannaCtuz recognizes the impact a cannabis dispensary can have on the surrounding community and businesses, and we have developed a plan to minimize any concerns. Our company is committed to collaborating with local law enforcement and fellow business owners. We will have a designated liaison to communicate with neighboring businesses and local law enforcement to meet with the police department regarding security measures and operational issues."
Notification
CannaCruz will notify the DCC and local authorities within twenty-four (24) hours of discovering any of the following?:

1. Significant discrepancies identified during inventory;

2. Diversion, theft, loss, or any criminal activity involving the facility or its operations, or any agent, officer, or employee of the business:

3. The loss or unauthorized alteration of records related to medical marijuana or employees or agents of the business; or

4. Any other breach of security.

Age Verification and Youth Access Restriction Procedures A security employee at the lobby entrance will be checking for valid government identification to ensure the age of the potential customer prior to entering the lobby. After the customer's age has been verified at the entrance, they will be admitted. 17 City of Salinas municipal code Sec. 5-07-24 - Security measures (a)(2) - limited access 18 City of Salinas municipal code Sec. 5-07-24 - Security measures (a)(2) - Limited access 19 City of Salinas municipal code Sec. 5-07-24 - Security measures (b) - liaison 20 City of Salinas municipal code Sec. 5-07-24 - Security measures (d) - notification City of Salinas 47 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
A verification specialist will then verify the potential customer's identification. Upon entering the customer's information into our point of sale system has safe guards in place to disallow a minor being entered into the computer.

City of Salinas 48 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024

OTY STAND
81-8.316
40-10 1/8° COLTA
120-2.
47-4112 5-8

WAKE RADO
HH HHH 1700 cE
CHAOY ARCA CANNABIS RETAL. + ANCILLARY DISTRIBUMION
(PROPOSED CHANGE OF USE) 18-1 UNIT A AREA (0,413 sn)

MANS SALES ARCA - FURNITURE RETAL

ECEPTICH DEEK

18.7 ARCHITECT
UNIT B AREA (10,742 sT)

UNIT A ENVIRONMENTS
146. 9,413 8F 18-0° * CARROT ARROY(05) 481-10803421

FURNITURE RETAIL NONCAMLASS, CURRENTLY UNOCCUPIED
(NO CHANGE IN USE PROPOSED: ARCHITECTURE & SOLAR SPACE HEATING SOTO STAL SETAT 8,343 55
14-5° ETAL FULLLMENT (DISTRIBUTOR) GREGORY D.

LIV-IN
19-5 A MASTE STRACE A P.O.

TOTAL RETAR FULFILLMENT 2,71855
(15:00
298-2. BASE RUMMENT
19-0° TOTAL DUPLOYEE/CMCC 1,400 Sr
cope
6-6% 0-0° 0000
SOSER RV. BRACE RK T
218118 10-5118 18-5 58 7-5 84-81/54
201610*

POISED FLOOR PLAN

PROJECT
NORTH ROPOSED FLOOR PLAN PERMIT FOR. [email protected]

GENERAL NOTES
Dia 3/5/24
EXISTING USE OF BUILDING : FURNITURE RETAIL (UNIT A TO REMAIN) 2227
A2.1
5 Essential Supplemental Information
Enhanced Product Safety and Quality
CannaCruz carefully inspects all of its products upon receipt. In addition, CannaCruz conducts daily quality control inspections of its inventory to ensure that its customers have access to the highest quality medicinal marijuana.

CannaCruz stores products in climate controlled environment. The entire store is kept to an optimal humidity and temperature in order to keep cannabis goods as fresh and clean as possible.

Products are organized by basic medicinal effects to ensure customers receive the type of cannabis goods that will provide the greatest health benefits to them as an individual.

Product Testing Prior to Distribution to Retailers
Cannabis products, except for immature cannabis plants and seeds, are subject to quality assurance and testing prior to sale at a retailer or microbusiness. As a licensed distributor, CannaCruz will be responsible for ensuring that product is tested prior to being distributed Cannabis batches shall be stored in a designated batch storage area before testing and continuously until either of the following occurs:

1. The cannabis batch passes the testing requirements and is transported to a licensed retailer.

2. The cannabis batch fails the testing requirements pursuant to State regulations and is destroyed or transported to a manufacturer for remediation as allowed by the State licensing authority.

An employee of CannaCruz shall be physically present to observe the laboratory agent select increments sales frontan the sate ate nad sampling or lineuand ensure that the batch number stated at the beginning of the video and a visible time and date indication or the video recording footage.

All cannabis batches awaiting test results are stored separately and distinctly from other cannabis.

Upon issuance of a certificate of analysis by the testing laboratory that the cannabis batch as passed the testing requirements pursuant to State regulations, Applicant shall conduct uality assurance review before distribution to ensure the labeling and packaging of t cannabis and cannabis products conform to local and State regulations.

City of Salinas 49 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
After testing, all cannabis and cannabis products fit for sale may be transported only from Applicant's premises to the premises of a retailer, microbusiness, or nonprofit licensed by the State of California.

Cannabis or cannabis products shall not be sold pursuant to a license unless a representative sample of the cannabis or cannabis products has been tested by a licensed testing laboratory.

When the Company receives a certification of analysis stating that the sample meets specifications required by law, Company shall ensure the following before transport to one or more retailers:

1. The certificate of analysis received from the testing laboratory is the certificate of analysis that corresponds to the batch;

2. The label on the cannabis products is consistent with the certificate of analysis regarding cannabinoid content and contaminants required to be listed by law;

3. The packaging complies with applicable packaging laws including, but not limited to, Business and Professions Code section 26120;

4. The packaging is tamper evident. "Tamper evident" means a one-time-use seal is affixed to the opening of the package, allowing a person to recognize whether or not the package has been opened;

5. The weight or count of the cannabis batch comports with that in the track and trace system. Company shall use scales as required by the Act; and

6. All events up to this point have been entered into the track and trace system.

Acceptance of Product for Retail Sale
As a licensed retailer, CannaCruz shall inspect all inventory upon receipt for proper certificate of analysis, packaging, and labeling.

Product Recall
CannaCruz maintains a recall plan which provides specific procedures, defines terms, and assigns roles and responsibilities when a safety or significant quality issue arises with a product or supplier. The Plan elements include:
• Recall responsibility assignments.
• Key personnel and external contact information
• Recall procedures including, trace forward process.

Communication templates.

Contaminated product, excess product and waste will be taken to designated waste area on site.

City of Salinas 50 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
All trashcans are locked and remain indoors. All recycling and waste will remain in a locked trash can or dumpster indoors until it is picked up. A third-party garbage disposal service removes all cannabis waste material and all recycling and will then transport it directly to the dump.

Local Salinas government and private disposal services will be utilized for waste removal.

Environmental Benefits
CannaCruz is committed to renewable energy and energy efficiency. CannaCruz will utilize LED lights to maximize use of energy resources.

There are a number of measures that can be undertaken by any type of business to increase energy efficiency and reduce energy consumption. Some examples of proposed energy efficiency measures are as follows:

Installation of new insulation in order to increase HVAC efficiency • Use of LED and/or low-wattage lighting
• Use of timers to control lighting and all other equipment requiring energy • Utilization of natural lighting through existing windows • Installation or utilization of natural ventilation features • Exploration of solar solutions
• Use of low-VOC emissions paints and materials in the proposed buildings • Scheduling of deliveries to reduce traffic impacts
• Low-flow plumbing fixtures
CannaCruz has a policy of cleaning up its parking lot as well as neighboring parking lots and property. CannaCruz is committed to being a good neighbor and to maintaining attractive surroundings for its customers.

In addition to cleaning up its property and surroundings, CannaCruz is committed to park and beach cleanups as well. CannaCruz has roots in Santa Cruz, where the environment is an asset, and caring for its beaches and environment is an important part of CannaCruz's vision.

Labor and Employment
CannaCruz is committed to providing a positive, respectful and supportive workplace.

CannaCruz plans to provide approximately 25 jobs paying $20 to $25 per hour. CannaCruz is committed to providing a living wage and fair compensation to all employees.

Through training outlined in its employee handbook, CannaCruz plans to provide job training and professional development for all of its employees.

City of Salinas 51 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024
•
Community Benefits
CannaCruz is a member of the Salinas Valley Chamber of Commerce and welcomes the opportunity to develop meaningful connections with local business owners and community members.

In addition, CannaCruz supports many local charitable programs. CannaCruz has contributed to Heroes of Salinas over the years and is committed to identifying other high- quality local causes to support.

Local Enterprise
Brad Palmer and Grant Palmer, brothers, are the founders of CannaCruz and are still the wo principals of the corporation. They hold the director, otticer and shareholder position of the corporation. As part of CannaCruz's key personnel, Grant Palmer, Director is resident of Monterey County.

CannaCruz intends to continue its practice of employing Salinas residents through local recruitment and preferential hiring practices.

All of the current staff at the existing location is local to the City of Salinas. CannaCruz fully intends to retain all staff at the new location and would seek additional staff using community bulletins, local job boards, and local staffing agencies to secure same.

Technology and Innovation
CannaCruz has the largest database of any dispensary in the world for terpene profiles of genotypes and phenotypes of cannabis. This allows us to provide more specific treatments for our customers.

CannaCruz has developed a non-psychoactive topical medication that is powerful anti- inflammatory effective on a wide variety of ailments from arthritis to pain relief. All cannabis products undergoing to regulatory testing.

CannaCruz's innovative compassion program which is customized to individual customers to make sure the very sick and poor have access to cannabis goods.

City of Salinas 52 CannaCruz, Inc.
1228 S. Main Street CCP2023-007 Commercial Cannabis Permit Amendment Application April 2024

Salinas City CouncilJune 18, 2024

Salinas City Council
June 18, 2024