NOTICE AND AGENDA
CITY OF UNION CITY
CITY COUNCIL /
SPECIAL MEETING
Thursday, January 12, 2023
5:30 PM
City Hall- Council Chamber
34009 Alvarado-Niles Road
Union City, CA 94587
Consistent with California State Assembly Bill 361, the City Council will be participating in public meetings via video conferencing only.
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1. CALL TO ORDER
1.a. Roll Call
2. ORAL COMMUNICATIONS - Comments limited to items on the Special Meeting Agenda
3. CITY MANAGER REPORTS
3.a. Adopt A Resolution Amending The Existing Process For Commercial Cannabis Permits To Modify The Application And Review Schedule
4. ADJOURNMENT
/s/ Carol Dutra-Vernaci
Carol Dutra Vernaci
Mayor
Agenda Item
DATE: 1/12/2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: Joan Malloy, City Manager
SUBJECT: ADOPT A RESOLUTION AMENDING THE EXISTING PROCESS FOR
COMMERCIAL CANNABIS PERMITS TO MODIFY THE APPLICATION
AND REVIEW SCHEDULE
Staff recommends that the City Council adopt a resolution amending the existing process for commercial cannabis permits to modify the application and review schedule.
STRATEGIC PLAN ALIGNMENT
This informational report is in alignment with the following City Council Priority:
Goal A: Financial Stability and Sustainability
Strategy 5: Implement the City’s cannabis program to attain the anticipated $1.4 million in new revenue with a commitment to adopting where necessary in light of evolving Statewide trends.
BACKGROUND
The City Council adopted Chapter 5.44 of the Union City Municipal Code (“UCMC”) on November 14, 2017, that established the regulatory framework for commercial cannabis operators within the City. The City Council concurrently adopted Resolution No. 5144-17, that set the number of permits that could be awarded for each type of cannabis business, that being:
Three cultivation permits
Three manufacturing permits
Three distribution permits
Three retail permits
Three testing permits
Two retail businesses have opened and are currently in operation since the adoption of the Cannabis Ordinance: Flor East Bay LLC located at 3100 Courthouse Drive, Union City, CA 94587 and Jiva UC LLC located at 30545 and 30547 Union City Boulevard, Union City, CA 94587.
On September 27, 2022, the City Council adopted Resolution No. 6006-22 authorizing the City to open the process for accepting commercialcannabis permits, effective October 27, 2022, and approving the procedures to govern the manner in which the City Council would determine the most qualified applicant(s) to receive the permit(s).
The application period was from October 27, 2022 through January 9, 2023. This application cycle is similar to the requirements specified by the City Council in prior cannabis application cycles. It consists of four phases in the application process:
Phase 1
Applicants must include the following in its application:
Prepay the $10,425 application fee, which includes four phases of review. Applicants that do not participate in all four phases of review will receive a partial refund for the phases in which they did not participate.
All partners must complete a background check and Live Scan with final evaluation by the Union City Police Department.
Proposed Location and Zoning Verification Letter
Executed Lease or Proof of Property Ownership for Site Location Business and Development Plan (kept confidential)
Labor and Employment Plan
Safety Plan
Security Plan (kept confidential)
Neighborhood Plan
Community Benefits Plan
Qualification of Owners
Location and Status of Each Cannabis Permit Held by Applicant HdL Companies reviews allapplications for completeness and background checks are conducted. Incomplete applications do not proceed to Phase 2.
Phase 2
HdL Companies will score each application by the following criteria for a total of 2,100 points:
Business and Development Plan – 600 points
Labor and Employment Plan – 300 points
Safety Plan – 100 points
Security Plan – 300 points
Neighborhood Plan – 300 points
Community Benefits Plan – 200 points
Qualifications of Owners – 300 points
Applicants must receive a score of 90% (percent) or higher to proceed to Phase 3.
Phase 3
The City Selection Committee, comprised of Senior City staff, representing the City Manager’s Office, Finance Department, Economic and Community Development, and Union City Police Department will conduct detailed interviews with all applicants that received a qualifying score from HdL Companies. After the applicant interviews, the City Selection Committee will make a recommendation to the City Manager on the most qualified applicant.
Phase 4
The City Manager reviews the recommendation from City staff and makes a recommendation to the City Council. The City Manager may also ask for additional information or implement additional application requirements as she sees fit for this phase of the application process.
City Council Action
The City Council will consider the City Manager’s recommendation at a public hearing and determine if the City Council should declare its intent to award a permit to the most qualified candidate subject to appropriate conditions.
If the City Council adopts a resolution declaring its intent to award a permit, staff will work with the applicant and prepare appropriate conditions of approval for award of the permit.
The City Council willconsider awarding the permit with appropriate conditions at a subsequent meeting.
DISCUSSION
On December 1, 2022, a prospective applicant applied for a Zoning Verification Letter. Pursuant to UCMC section 5.44.030(D)(6)(e), applicants are required to obtain a Zoning Verification Letter to ensure that the location proposed by the applicant complies with Title 18 of the UCMC prior to submitting the Commercial Cannabis permit application. The general guidance provided to all applicants is that the zoning review process typically takes approximately ten (10) working days.
On December 16, 2022, City staff verbally informed the prospective applicant that the site location/proposed property may not be permissible as a result of a potential inconsistency between the zoning and General Plan Designation. As a result of internal discussions, City staff later determined that the site location/proposed property was viable for commercial cannabis retail uses. City issued the Zoning Verification Letter on January 5, 2023.
Given the time that had lapsed from when the submittal of the Zoning Verification Letter application, as well as the information verbally conveyed regarding potential non-viability of the site, to when the final determination was made by the City, the prospective applicant requested an extension to the commercial cannabis permit application period.
Consistent with the previously adopted procedures, the commercial cannabis permit application period officially closed on January 9, 2023. Only the City Council can modify the application process including any revisions to the application and review schedule. In light of the lengthy review timeline for the prospective applicant, City staff recommends that the City Counciladopt a resolution amending the application calendar to reopen the process for accepting applications effective January 13, 2023 through February 6, 2023 and making concurrent extension to the timelines for other review phases.
Should City Council approve the amended application calendar, all applicants would be afforded an additional three (3) weeks with the extended deadline. Such action would allow the prospective applicant (and any other interested parties) additional time to apply. Those who have already submitted by the original deadline will also be permitted to revise or amend their applications as needed. No other changes would be made to the procedures or application requirements as previously approved except for revisions to the timeframes for other review phases as identified below.
The amended application calendar would be as follows (proposed dates for Phases 1-4 and City Council Action are tentative and subject to change):
Timeframe Business Days
Application Period January 13, 2023 to February 6, 2023 at 5:00 PM 16 Phase 1 February 7, 2023 to February 17, 2023 9
Phase 2 February 21, 2023 to March 24, 2023 24
Phase 3 March 27, 2023 to April 18, 2023 15
Phase 4 Dates Determined by the City Manager N/A
City Council Action May or June 2023 N/A
FISCAL IMPACT
There is no fiscal impact of City Council taking the recommended action.
RECOMMENDATION
Staff recommends that the City Council adopt a resolution amending the existing process for commercial cannabis permits to modify the application and review schedule.
Prepared by:
Jennifer Phan, Deputy City Manager
Submitted by:
Jennifer Phan, Deputy City Manager
ATTACHMENTS:
Description Type
Attachment 1 - Resolution Resolution
Exhibit A - Cannabis Application Procedures (dated January 13, 2023)
Exhibit
Presentation Attachment
RESOLUTION NO. XXXX-23
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY
AMENDING THE EXISTING PROCESS FOR COMMERCIAL CANNABIS
PERMITS TO MODIFY THE APPLICATION AND REVIEW SCHEDULE
WHEREAS, on November 14, 2017, the City Council adopted Ordinance No. 845-17 which, among other things, established a permitting process for approval of commercial cannabis operators in the City of Union City; and
WHEREAS, on November 14, 2017, the City Council adopted Resolution No. 5144-17, which allowed for up to three commercial cannabis permits in each of the following categories:
cultivation, manufacturing, distribution, testing, and medicinal retail; and WHEREAS, pursuant to Union City Municipal Code (“UCMC”) Section 5.44.030(D)(2), the City Council may, in its sole discretion, adopt a resolution to open the process for accepting applications for commercial cannabis permit(s) and adopt the procedures to govern the application process and the manner in which the City Council will determine the most qualified applicant to receive the permit(s); and
WHEREAS, on September 27, 2022, the City Council adopted Resolution No. 6006-22 to open the process, effective October 27, 2022 through January 9, 2023, for accepting applications for commercial cannabis permit(s) for the commercial cannabis types permitted pursuant to Resolution No. 5144-17, to the extent such permits are available, and adopted the procedures to govern the application process and the manner in which the City Council will determine the most qualified applicant to receive the permit(s); and
WHEREAS, the City has received a request from a prospective applicant for an extension to the commercial cannabis permit application period and staff believes that such extension is appropriate; and
WHEREAS, the City Council desires to amend the commercial cannabis permit application calendar and to reopen the process, effective January 13, 2023 through February 6, 2023, for accepting applications for commercial cannabis permit(s) for the commercial cannabis types permitted pursuant to Resolution No. 5144-17, to the extent such permits are available, and make concurrent revisions to the review timelines, without any other changes to the procedures to govern the application process and the manner in which the City Council will determine the most qualified applicant(s) to receive the permit(s) as previously identified in Exhibit A to this Resolution; and WHEREAS, operators desiring to obtain a commercial cannabis permit within the City are required to comply with the selection and award process identified in this Resolution; and WHEREAS, this Resolution does not require or obligate the City Council to award or issue any commercial cannabis permits following the application process even if the City Council determines that an applicant or applicants are qualified to receive the permit(s).
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Union City does hereby amend the commercial cannabis permit application calendar and reopens the process, effective January 13, 2023 through February 6, 2023, and makes concurrent reviews to the review timelines and provided in Exhibit A to this Resolution, for accepting applications for commercial cannabis permit(s) for the commercial cannabis types permitted pursuant to Resolution No. 5144-17, to the extent such permits are available.
BE IT FURTHER RESOLVED that the City Council will proceed without any other changes to the procedures to govern the application process and the manner in which the City Council will determine the most qualified applicant(s) to receive the permit(s) as provided in Exhibit A to this Resolution.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Union City at a regular meeting held on the 12th day of January 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
______________________________________
CAROL DUTRA-VERNACI
Mayor
ATTESTED: APPROVED AS TO FORM:
__________________________________ ______________________________________ ANNA M. BROWN KRISTOPHER J. KOKOTAYLO
City Clerk City Attorney
JANUARY 13, 2023
APPLICATION PROCEDURES TO OPERATE A
COMMERCIAL CANNABIS BUSINESS IN UNION CITY
The City of Union City is seeking qualified applicants to apply for commercial cannabis permits. Applicants must abide by requirements laid out in this procedure and in Union City Municipal Code (“UCMC”) Chapter 5.44, Cannabis, Chapter 3.24, Cannabis Business Tax, and applicable sections of Title 18, Zoning.
The City is seeking to award up to one permit for a retail store, three permits for cultivation, three permits for manufacturing, three permits for distribution, and three testing lab permits. Please be advised that the City Council has already awarded two retail store permits.
This will be a competitive, merit-based, application process. Only one license type may be sought per application.
Applicants who submitted a prior application for a commercial cannabis permit and were not awarded a permit by the City are invited to reapply.
Applicants should be prepared to address neighborhood concerns and plan accordingly on conducting early outreach to neighboring businesses in advance of the application submission.
The application process to obtain a permit to operate a Commercial Cannabis Use (“CCU”) in Union City will open on January 13, 2022.
BEFORE YOU APPLY
REVIEW ALL MATERIALS IN ADVANCE
Review the application materials in their entirety and Union City’s Cannabis Ordinance, UCMC Chapter 5.44, before filling out the application and submitting the required documentation.
Due to COVID-19 each applicant as part of Phase 1 will be required to pay the total fee of $10,425.00 for all four phases of the application process with the submittal of their application. For each phase in which the applicant does not participate the City will refund the balance to the applicant.
The City webpage, https://www.unioncity.org/402/Commercial-Cannabis-Regulationsand-Prog, includes the cannabis permit application and the following information:
1. Local regulations governing Union City CCU’s: UCMC Chapter 5.44.
2. Background Authorization Form
3. LiveScan Form
4. Zoning Verification Letter Application
City of Union City Cannabis Applications
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5. UCMC Chapter 18.117
6. Zoning Map identifying MS, ML, CC, CPA, CVR and CN Districts
7. Sensitive Use Map
OBTAIN A ZONING VERIFICATION LETTER
Pursuant to UCMC section 5.44.030(D)(6)(e), applicants are required to obtain a Zoning Verification Letter—Cannabis from the Economic & Community Development Department to ensure that the location proposed by the applicant complies with Title 18 of the UCMC prior to submitting the CCU application. Applicants requesting a Zoning Verification Letter are required to fill out and submit a Zoning Verification Letter Application. Include the address of the proposed business location and a check payable to the City of Union City in the amount of $310.00 with the written request for a Zoning Verification Letter. The zoning review process typically takes approximately ten (10) working days. Be sure to plan adequate time to obtain the Zoning Verification Letter prior to submitting the permit application form. Applications without a Zoning Verification Letter confirming that the proposed location complies with Title 18 of the UCMC will be rejected. Please note that the Zoning Verification Letter does not address proximity of sensitive uses, which is the responsibility of the applicant to determine. Zoning Verification Letter applications and required payment can be mailed to the address below or can be dropped off to the Planning Division during business hours Monday through Thursday from 9:00 am to 2:00 pm.
City of Union City
Attn. Planning Division
34009 Alvarado-Niles Road
Union City, Ca 94587
The issuance of a Zoning Verification Letter does not constitute permission from the City of Union City or any of its officials to operate a CCU, nor does it constitute a “permit” within the meaning of the Permit Streamlining Act, nor does it constitute an entitlement under the Zoning Ordinance or Building Code.
COMPLETE A BACKGROUND CHECK
Completion of both a Background Check and Live/Scan is required for each owner and investor named in the application.
The background application form and fee of $300 will be transmitted to HdL Companies via the Portal when the application is processed:
https://hdlcompanies.formstack.com/forms/bc_unioncity.
City of Union City Cannabis Applications
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Live Scan is not required for this application. The City reserves the right to require Live Scan at a future date for each owner, investor, and employee. The Live Scan fee, when charged in the future, will be $198.00 for each owner/investor, and employee.
Applicants that advance to Phase 3 may update or modify the names of the owners and investors listed in the original application. In addition, any new investor or owner will be required to complete a Background Check prior to the Phase 3 interview.
INDEMNIFICATION
To the maximum extent permitted by law, any selected operators shall be required to defend (with counsel acceptable to the City), indemnify and hold harmless the City and its respective officials, officers, employees, representatives, agents and volunteers from any liability, damages, actions, claims, demands, litigation, loss (direct or indirect), causes of action, proceedings, or judgment (including legal costs, attorneys’ fees, expert witness or consultant fees, City Attorney or staff time, expenses or costs) against the City to attack, set aside, void or annual, any cannabis-related approvals and actions and strictly comply with the conditions under which such permit is granted, if any. The City may elect, in its sole discretion, to participate in the defense of said action and the operator shall reimburse the City for its reasonable legal costs and attorneys’ fees.
REQUIRED MATERIALS AT THE TIME OF SUBMISSION
The application must be submitted via the City online application portal. The online application portal will be available January 13, 2023. You will first need to create an account with a unique email address and password. Please note that the email address listed for the 24/7 Primary Contact person will receive the email notification indicating that the application has been received.
The online application allows you to start, stop and save your work, allowing you to complete your application over days or weeks. Submissions will be accepted only from January 13, 2023 through February 6, 2023. Late applications will be rejected.
All components of the application shall be submitted through the online process. More detailed instructions for the submittal requirements are provided on the Application FAQs, which can be found at https://www.unioncity.org/402/Commercial-Cannabis-Regulationsand-Prog.
All application submissions for Phase 1 shall include the following at the time of submission:
1. Payment submitted for Phase 1, Phase 2, Phase 3, and Phase 4 review totaling $10,425.00.
City of Union City Cannabis Applications
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2. Zoning Verification Letter with proposed business location listed.
3. Complete the entire application form and submit documentation for the following:
a) Proposed Location
b) Business Plan
c) Development Plan
d) Labor and Employment Plan
e) Safety Plan
f) Security Plan
g) Neighborhood Plan
h) Community Benefits Plan
i) Qualification of Owners
j) List location and status of each cannabis permit held by applicant located in California. Include date each permit was awarded and the date the business opened for each permit.
k) Proof of property ownership or the Executed Lease signed by the property owner or authorized agent for the proposed business use.
All plans and descriptions submitted with the application must include information required by, and abide by, the UCMC including the requirements of UCMC
5.44.030(D)(6). Please note the criteria for plans and descriptions.
In order to move onto Phase 2, applicants must have achieved two requirements:
1. Submitted a fully completed application by the due date with all of the required materials.
2. All owners and investors named in the application have passed a background check by the Union City Police Department.
REQUIRED APPLICATION PLANS AND DESCRIPTIONS
PROPOSED LOCATION
Your application must include the address and a detailed description of the proposed location. The CCU must be located in an allowed zoning district, which includes Light Industrial (ML) and Special Industrial (MS). Click here for a link to the City’s Zoning Map.
Please note that the City is proposing to allow retail cannabis uses in the following commercial zoning districts including: Community Commercial (CC), Neighborhood Commercial (CN), Visitor and Recreational Commercial (CVR) and Professional and Administrative Commercial (CPA) through an amendment to the Zoning Ordinance. If a retail cannabis permit is proposed in these zoning districts prior to the effective date of the amendment, a conditional zoning verification letter will be issued subject to adoption City of Union City Cannabis Applications
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of the proposed Ordinance by the City Council and completion of the 30-day enactment period. It is anticipated that the City Council will adopt the Ordinance in late November, and it will be in effect in late December.
Proposed location shall meet all the distance requirements of UCMC Chapter
5.44.040(E)(3), UCMC Chapter 5.44.050(E), and UCMC Chapter 5.44.060(C) for sensitive uses. These sections require a minimum of 100-foot setback from sensitive uses, which include parks, library, K-12 schools, child-care facility and youth-oriented centers. See “Sensitive Uses” map for locations of these uses within the City. Please note that the City makes no warranty, representation or guaranty as to accuracy or completeness of the information provided. The map has been provided as a courtesy and it is recommended that the applicant also perform their own analysis regarding setbacks to sensitive uses.
The distance requirements may be waived or modified by the City Council when the applicant can show that an actual physical separation exists between land uses or parcels such that no off-site impacts could occur, unless otherwise prohibited under State law.
BUSINESS AND DEVELOPMENT PLAN
With as much detail as possible, the Business Plan should describe:
1. Owner qualifications. Resumes/CV are not to exceed one (1) page per owner.
2. A budget for construction, operation, and maintenance, compensation of employees.
3. Equipment costs, utility cost, and other operation costs.
4. Proof of capitalization.
5. A pro forma for at least three years of operation.
6. Fully describe hours of operation and opening and closing procedures.
7. Fully describe the day-to-day operations for each license type being sought.
Additional criteria for RETAIL applications only:
1. Describe customer check-in procedures.
2. Identify procedures for receiving deliveries during business hours.
3. Identify estimated number of customers to be served per hour/day.
4. Describe the proposed product line and estimate the percentage of sales of flower and manufactured products.
5. Describe delivery service procedures, number of vehicles and product security during transportation.
6. Fully describe inventory control procedures during business hours
7. Fully describe how all on-hand inventory in the Retail Area will be stored/secured during non-business. Preference given to applicants that secure all product during non-business hours.
8. Identify the point-of-sales and track and trace software. Include in your City of Union City Cannabis Applications
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response the number of sales terminals to be used when the business is at full capacity.
9. Fully describe cash handling procedures from the point of sales through the bank deposit.
10. Union City is seeking geographic diversity in retail locations. Preference provided to locations east of I-880.
11. Minimize impacts on neighboring uses.
12. Union City is seeking timely opening of the retail store.
Additional criteria for TESTING applications only:
1. Describe the sampling standard operating procedures.
2. Describe procedures for transporting cannabis field samples.
3. Describe the chain of custody for field samples.
4. Describe the quality control procedures.
5. Describe the Laboratory Supervisor/Manager responsibilities and qualifications.
6. Identify location and procedures for storing cannabis products.
7. Fully describe cash handling procedures.
Additional criteria for DISTRIBUTION applications only:
1. Identify the number of delivery drivers, hours of delivery and vehicles to be used.
2. Describe the transportation security procedures.
3. Describe how inventory will be received, processed, stored and secured on the licensed premises.
4. Describe the quality control procedures designed to ensure all cannabis is proper packaged, labeled and tested.
5. Fully describe cash handling procedures.
6. Minimize impacts on neighboring uses.
Additional criteria for MANUFACTURING applications only:
1. Identify all cannabis products manufactured within the licensed premises.
2. Describe quality control procedures.
3. Describe inventory control procedures.
4. Describe the extraction process, equipment and room in which extractions will be conducted.
5. Provide detail as to whether the extraction equipment has been reviewed and certified by a Professional Engineer or Certified Industrial Hygienist.
6. Describe the sanitation procedures.
7. Fully describe cash handling procedures.
8. Minimize impacts on neighboring uses.
Additional criteria for CULTIVATION applications only:
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1. Premises Diagram of the proposed licensed premises. Premises diagram requirements differ based on the license type. Each diagram must include information regarding specific areas listed on page #7 of the CDFA Annual Cannabis Cultivation Licenses, A Reference Guide for the Cultivation Plan.
2. Identify location and procedures for receiving deliveries of seedlings and immature plants.
3. Describe the planned square footage/acreage of the cultivation.
4. The estimated number of pounds produced per harvest, and number of anticipated harvests per year.
5. Describe whether the cultivation operation will use natural light, artificial light, or mixed light.
6. Identify how cultivation waste will be rendered unusable and unrecognizable, and how it will be stored and disposed of.
7. Describe the use of any gases used in the cultivation operation, such as CO2, including storage, location, and monitoring systems for employee safety.
8. Minimize impacts on neighboring uses.
Development Plan
Development Plans shall be submitted for the proposed location that address the provisions listed in UCMC 5.44.030(D)(6)(l-n). In addition, plans shall address how the site will be utilized, include any necessary improvements, address deferred site maintenance issues, and mitigate potential impacts on the surrounding community.
Development Plans shall be to scale and include: a vicinity map of the surrounding area; a dimensioned site plan that includes at a minimum: property lines, adjacent properties and businesses, parking and access layout, and all existing and proposed structures; and dimensioned floor plan. Describe in detail the timeframe for completing all improvements and the estimated cost for all improvements. Preference will be provided to applicants that demonstrate the ability to open the business in a timely manner.
LABOR AND EMPLOYMENT PLAN
1. Describe whether the Commercial Cannabis Business is committed to offering employees a Living Wage.
(“Living Wage” shall mean 150% of the minimum wage mandated by California. Refer to: https://livingwage.mit.edu/counties/06001).
2. Describe compensation to and opportunities for continuing education and employee training.
3. Describe the number of employees, title/position and their respected responsibilities.
4. Thoroughly describe employee policies and procedures (complete manuals are not required to be submitted).
5. If the Commercial Cannabis Business has twenty (20) or more non-supervisory employees, the applicant must attest that they are committed to or have entered into a labor peace agreement and will abide by its terms.
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6. Describe to what extent the business will be a locally managed enterprise whose Owners reside within Union City and/or the County of Alameda.
SAFETY PLAN
A thorough Safety Plan should consider all possible fire, medical and hazardous situations. (Complete policy/procedures manuals are not required at this point of the application process. Please only provide a detailed description for each criteria).
1. The Safety Plan shall be prepared by a professional fire prevention and suppression consultant (Qualified in-house consultants are acceptable. In order to received full points, the consultant’s qualifications must be included in the application.)
2. Identify all gases and/or chemicals to be used
3. Describe accident and incident reporting procedures
4. Describe evacuation routes
5. Describe procedures and training for all fire and medical emergencies
6. Describe and identify the location of all gas monitoring equipment To the extent the applicant intends to use any hazardous materials in its operations, this plan shall include information required pursuant to UCMC 5.44.030(D)(6)(i).
SECURITY PLAN
A detailed security plan should include:
1. The Security Plan shall be prepared by a professional security consultant (Qualified in-house consultants are acceptable. In order to receive full points, the consultant’s qualifications must be included in the application.)
2. A description and detailed schematic of the overall facility security. It should have details on operational security, including but not limited to general security policies for the facility, employee specific policies, training, sample written policies, transactional security, visitor security, third-party contractor security, and delivery security.
3. Discuss if on-site security guards will be utilized including number of guards, hours the guards will be on-site, locations guards will be posted, and roles and responsibilities of the guards.
4. Address ingress and egress access, perimeter security, product security (at all hours), internal security measures for access (area specific), types of security systems (alarms and cameras), and security personnel to be employed.
5. A floor plan showing the existing conditions. If changes are proposed as part of the project, then a proposed floor plan should also be submitted. The floor plan(s) should be accurate, dimensioned and to-scale.
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THE SECURITY PLAN MUST COMPLY WITH THE REQUIREMENTS OF UCMC SECTION 5.44.030(J). SECURITY PLANS WILL NOT BE MADE PUBLIC UNLESS REQUIRED UNDER APPLICABLE LAW.
NEIGHBORHOOD PLAN
1. Describe how the CCB will take proactive steps to avoid becoming a nuisance or having negative impacts on its neighbors or surrounding community. Additionally, describe how the business will react and respond to complaints specifically related to noise, light, odor, public consumption, loitering, littering, and vehicle and pedestrian traffic.
2. Describe the waste management, recycling plan, and composing of organic materials plan. Describe cannabis waste disposal security measures, methods of rendering all cannabis waste product, damaged product, and expired product unusable and unrecognizable, and method of disposal.
3. Describe any proposed “green” business practices relating to energy and climate, water conservation, greenhouse gas emissions pursuant to UCMC 5.44.030(D) (6)(h). Please note you may need separate authorization from Alameda County Water District and Union Sanitary District regarding adequate water supply and waste treatment for the proposed use pursuant to UCMC 5.44.030(D)(6)(j-k).
4. Describe Air Quality/Odor Mitigation practices including potential sources of odor and/or odor activities; and describe odor control devices and techniques to ensure that odors from cannabis are not detectable beyond the licensed premises (Please note: odor mitigation practices should be relative to the type of license being sought).
5. Describe odor control related to maintenance activities, frequency and role/titles of personnel performing such activities.
6. Describe administrative controls such as staff training procedures and record keeping systems and forms associated with odor control.
COMMUNITY BENEFITS PLAN
The application should describe all benefits the Commercial Cannabis Business and/or their owners and investors will provide to Union City annually after the City Council adopts a resolution awarding the permit. Benefits may be in the form of financial support of Union City sponsored activities, programs, and organizations identified by the City; and in-kind donations to Union City and non-profit organizations and/or programs identified by the City.
QUALIFICATIONS OF OWNERS
In addition to the one (1) page resume/CV per owner;/investor, all applicants, directors, managers and/or laboratory supervisors must provide details regarding any experience they have in operating a retail establishment, a regulated business, or managing City of Union City Cannabis Applications
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employees. If you have any experience operating a cannabis business, please provide the location of such activity and a copy of any permits, licenses, or other written forms of permission for such activity by a local or state government entity.
Has the Applicant or any of its owners been the subject of any administrative action, including but not limited to suspension, denial, or revocation of a cannabis business license at any time during the past five (5) years? If so, please list and explain.
APPLICATION CALENDAR AND APPLICATION REVIEW PROCESS
The application will be available online at https://www.unioncity.org/402/CommercialCannabis-Regulations-and-Prog.
Applications will be accepted only online between Friday, January 13, 2023 through Monday, February 6, 2023. The Application Due Date is Monday, February 6, 2023 at 5:00 P.M. Pacific Standard Time.
Proposed dates for Phases 1-4 and City Council Action are tentative and subject to change.
PHASE 1: EVALUATION OF APPLICATION FOR COMPLETENESS BY
THE CONSULTANT TEAM
Phase 1: February 7, 2023 through February 17, 2023 (nine business days) PHASE 2: EVALUATION AND RANKING BY CONSULTANT TEAM
Phase 2: February 21, 2023 through March 24, 2023 (twenty-four business days) Applicants who pass Phase 1 by submitting all necessary and required information with their application will be eligible to participate in Phase 2.
In this phase, applications will be evaluated by the following criteria for a total of 2,100 points:
1. Business and Development Plan – 600 points
2. Labor and Employment Plan – 300 points
3. Safety Plan – 100 points
4. Security Plan – 300 points
5. Neighborhood Plan – 300 points
6. Community Benefits Plan – 200 points
7. Qualifications of Owners – 300 points
City of Union City Cannabis Applications
January 13, 2023 – February 6, 2023
Page | 11
Those applicants who score a minimum of 90% by the consultant team will move on to Phase 3 to be evaluated by a City Selection Committee.
PHASE 3: EVALUATION AND RANKING BY CITY SELECTION
COMMITTEE
Phase 3: March 27, 2023 through April 18, 2023 (fifteen business days) All applicants who score at least 90% in Phase 2 will be forwarded to the City Selection Committee who will evaluate and rank the applicants based on the results of an interview process.
The City Selection Committee will conduct structured interviews using the same evaluation criteria considered in Phase 2 above.
Applicants may update owners and investors prior to the Phase 3 interview. All new owners and investors must complete a Live Scan and Background Check.
The City Selection Committee will forward the results of Phase 3 to the City Manager along with their recommendation on finalists.
PHASE 4: CITY MANAGER RECOMMENDATION, PUBLIC HEARING AND CITY COUNCIL’S INITIAL APPROVAL
Phase 4: Dates Determined by the City Manager
The City Manager reserves the right to ask for additional information or implement additional application requirements as he/she sees fit for this phase of the application process.
Applicants on the final list are the only businesses eligible for consideration to be issued a CCU permit.
The City Manager will present to the City Council his/her recommendation on any award(s). Finalists being recommended by the City Manager for consideration to the City Council are required to attend a public hearing before the City Council.
Applicants must have an executed lease to operate the cannabis business at the location listed in the application applied or show proof of ownership before the applicant can be forwarded to the City Council.
The City Council is the final authority on choosing whether or not to make the initial declaration to award a permit.
City of Union City Cannabis Applications
January 13, 2023 – February 6, 2023
Page | 12
Applicants who receive a Resolution of Intent to Award a Permit will have six months to secure a Resolution Awarding a Cannabis Permit. This process entails submittal of a Site Development Review or Administrative Site Development Review (depending on extent of proposed improvements) to the Planning Division for consideration by the City Council along with the Cannabis Permit. Fees for these applications can be found in the City’s Master Fee Schedule. Applicants who receive a permit will have one year to pull building permits to construct improvements required to activate the Cannabis Permit.
PAYMENT OF APPLICATION FEES
Payments must be made by a certified check, cashier’s check, money order payable to the City of Union City or credit card. There is a 2.25% convenience fee added to all credit card payments over $2,500.00.
Applicants are required to pay the application fees for all four phases totaling $10,425.00.
Applicants who do not advance to Phases 2, 3, or 4 will be provided refunds for the application fees for the phase(s) in which they did not participate as noted below. a. Phase 1: Preliminary determination of eligibility $4,529.00 b. Phase 2: Evaluation and ranking by consultant team $1,800.00 c. Phase 3: Evaluation and ranking by City Selection Committee $1,785.00 plus the Live/Scan Fee for each owner and investor.
d. Phase 4: City Manager evaluation and recommendation $2,311.00 In addition to the Phase 1-4 application fees, the following non-refundable fees will also need to be paid prior to submitting the application.
a. Criminal History Check, $300.00 paid to HdL Companies for each owner and investor listed in the application.
b. Live Scan Fee $198.00 per owner and investor listed in the application. The Live Scan is not required for this application, but the City reserves the right to require all owners, investors, partners, and employees in the future. c. Zoning Verification Letter $310.00
The individual designated as the CCU contact on the application will be notified by e-mail as to whether the application is advancing to Phase 2, Phase 3, and Phase 4.
City of Union City Cannabis Applications
January 13, 2023 – February 6, 2023
Page | 13
AMENDMENTS TO THE APPLICATION
Applicants will not be allowed to make amendments to their application or to supplement their application, except as otherwise specifically permitted in these procedures or as authorized in writing by the City Manager or his/her designee. During Phase 1, applicants will be notified if any of the Owners are ineligible and/or if their application is incomplete and will not move forward in the application process.
LAND USE ENTITLEMENTS
Please note that being awarded a CCU does not constitute a land use entitlement and does not waive or remove the requirements of applying for and receiving permits for all construction including electrical, plumbing, fire, planning permits or reviews, and any other permits, licenses, or reviews as may be necessary by the relevant departments or governmental entities in charge of said permits. Nor does it guarantee that the plans submitted via the CCU application process meet the standards or requirements in Title 18 and any other permit requirements from other city departments or agencies.
Furthermore, a commercial cannabis permit does not constitute a permit that runs with the land on which the CCU is established.
CEQA AND CONDITIONS OF OPERATIONS
Award of Cannabis Permit is subject to the California Environmental Quality Act (“CEQA”). Additional fees will apply for this review, which will be part of the ASD or SD review. Fee amount will depend on extent of CEQA review required.
THE CITY’S RESERVATION OF RIGHTS
The City reserves the right to reject any and/or all proposals, with or without any cause or reason. The City may also, modify, postpone, or cancel the request for permit applications without liability, obligation, or commitment to any party, firm, or organization.
In addition, the City reserves the right to request and obtain additional information from any candidate submitting a proposal. Late proposals WILL BE REJECTED. Furthermore, a proposal RISKS BEING REJECTED for any of the following reasons:
a. The application or documents submitted are incomplete, filed late, or not responsive to the requirements of this code.
b. The issuance of the permit or operation of the commercial cannabis business at the proposed location is inconsistent with State law, UCMC Chapter 5.44, or other applicable City of Union City Municipal Codes.
Item 3.a: Amending the Existing Process
for Commercial Cannabis Permits
January 12, 2023 City Council Special Meeting
2 Item 3.a:
Amending the Existing Process for Commercial Cannabis Permits Background• Chapter 5.44 of the Union City Municipal Code established regulatory framework for commercial cannabis operators
• Resolution No. 5144-17 established at three (3) permits in each category:
• To-date, two retail businesses have opened and are currently in operation.
Cultivation Distribution Manufacturing Testing Dispensary/ Retail 3 Item 3.a:
Amending the Existing Process for Commercial Cannabis Permits Current Permit Application Cycle• Resolution No. 6006-22 opened process for accepting commercial cannabis permits and approved procedures
• Application Period: October 27, 2022 through January 9, 2023 • Prospective applicant requested extension to commercial cannabis permit application period.
• Only City Council can modify application process including any revisions to application and review schedule.
4 Recommendatio
n
010203
All parties provided an
additional three (3) weeks with extended deadlineReceived submissions are permitted to revise or amend as needed No other changes to the procedures or application requirements To amend the application calendar to reopen the process for accepting applications effective January 13, 2023 through February 6, 2023 and making concurrent extension to the timelines for other review phases
Item 3.a:
Amending the Existing Process for Commercial Cannabis Permits 5 Item 3.a:
Amending the Existing Process for Commercial Cannabis Permits Timeframe Business Days
Application Period January 13, 2023 to February 6, 2023 at 5:00 PM 16 Phase 1 February 7, 2023 to February 17, 2023 9Phase 2 February 21, 2023 to March 24, 2023 24Phase 3 March 27, 2023 to April 18, 2023 15Phase 4 Dates Determined by the City Manager N/ACity Council Action May or June 2023 N/A Amended Application Cycle• Proposed dates for Phases 1-4 and City Council Action are tentative and subject to change:
6 City Council Action
Declare Intent to Award
Followed by Award of Permit
Phase 4
City Manager Review Finalist
and Recommendation
to City Council
Phase 3
Evaluation and Ranking by
City Selection Committee
Application PeriodProcess Opens for All Interested Parties Phase 1Evaluation of Application for Completeness by Consultant Team (HdL Companies) Phase 2Evaluation and Ranking by Consultant Team (HdL Companies) Item 3.a:
Amending the Existing Process for Commercial Cannabis Permits 7 RecommendationStaff recommends that the City Council adopt a resolutionamending the existing process for commercial cannabispermits to modify the application and review schedule.
Item 3.a:
Amending the Existing Process for Commercial Cannabis Permits