Wildomar City Council
November 13, 2024

For Office Use Only
-FILEDFile No.: 202460417960
Date Filed: 1/9/2024
817
51 3.3 Operating Agreement
1 OPERATING AGREEMENT
OF
Catt Road, LLC
(Member-Managed Corporation)
THIS OPERATING AGREEMENT (“Agreement”), is made and entered into as of this 5th day of March, 2024 by Catt Road, LLC a California Limited Liability Company (the “Company”), and its Members.

The Members hereby adopt this agreement as the “Operating Agreement” of the Company to set forth the rules, regulations, and provisions regarding the management and the business of the Company, the governance of the Company, the conduct of its business, and the rights and privileges of its Members.

NOW THEREFORE, the Members and the Company, intending to be legally bound, hereby agree as follows:

Agreement
Article I
Organizational Matters

1.1. Name. The Company shall conduct business under the name “Catt Road, LLC” If the majority of Members approve, the Company may also conduct business under a fictitious name filed with the county clerk of the county where the Company has its principal office.

1.2 Term. The company’s beginning date is the date that the Articles of Incorporation were filed. The term of the Company shall be perpetual unless dissolved as provided in this Agreement. The Members may unanimously to continue the Company as provided in Article 9.

1.3 Office and Agent. The Company shall continuously maintain an office and a registered agent within the State of California. The principal office of the company shall be at:

Catt Road, LLC
23825 Catt Road
Wildomar, CA 92595
Upon unanimous consent of the voting Members may choose additional or alternative offices as they deemed fit. As required, the Company shall file a Statement of Information with the California Secretary of State stating its registered agent for service of process.

1.4 Business of the company. The Company shall engage in the following business, and any activities necessary or appropriate to carry out that business, unless all the Members unanimously approve in writing a change or addition to the Company’s business: Business affairs, marketing, business development, and sales consulting. 








 



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Article 2
Capital Contributions

2.1 Additional Contributions. No Member shall be required or permitted to make any additional contributions to the Company without the unanimous consent of the other Member. If, at any time or times hereafter, the Members shall determine that additional capital is needed by the company, the Members shall determine the amount of such additional capital and the anticipated time such additional capital will be required; whether such additional capital shall be provided by the Members or a third party. If a Member contributes significant additional contributions, all Members must unanimously consent in writing to increase the contributing Member’s ownership interest to reflect the additional contribution.

Article 3
Members

3.1 Admission of Additional Members. Upon unanimous approval of the existing Members, additional members may be admitted into the Company on terms determined by the Members.

3.2 Withdrawals or Resignations. No Member may withdraw without the unanimous approval of the Members. However, if a Member’s interest is based on providing services to the Company, that Member shall be allowed to withdraw or resign as a Member at any time upon 30 days prior written notice to the Company. In the event of such withdrawal, such Member’s Membership Interest will be available for sale as described in Section 7.2. If it is not purchased, the withdrawing Member shall have only an economic interest in the Company after withdrawal. The Withdrawing Member shall the right to share in the Company’s income, gain, losses, deductions, credit or similar items, and to receive distributions from the Company, but not the right to access Company business information or to participate in the Company management, except as required by law. The Withdrawing Member shall not be entitled to a return of the Member’s capital, and may not withdraw contracts or personal guarantees that (s)he may have given.

3.3 Payments to Members. There will be no minimum or guaranteed payments to Members.

The Company shall reimburse the Members for the actual costs including organization expenses incurred to from the Company.

Article 4
Management and Control of the Company

4.1 Management and Powers. The intent of each Member is to actively engage in the Company management. Accordingly, each Member shall have full, complete and exclusive authority, power and discretion to manage and control the business, property and affairs of the Company, to make all decisions regarding those matters and to perform any and all other 








 



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acts or activities customary or incident to the management of the Company’s business property and affairs.

4.2 Duties of Members. Each Member must have a duty:

A. If a Member fails to do the Member’s duties for a period of (30) consecutive days, the Member will lose its Membership interest. The start date of failure must be documented.

B. If a Member fails to do its Member duties for a period of one hundred twenty (60) days out of two hundred thirty (120) days, the Member will lose its Membership interest in accordance with this article. The failure days must be documented.

C. If a Member disputes the completion of another Members duties and is attempting to take over the Members interest, it must do so in writing and certified delivery to the Members residential address listed in exhibit 1. If certified delivery is not available, hand delivery is acceptable by a third party.

D. Upon receipt of complaint, a Member in question of fulfilling the Members duties must remedy and fulfill the duties it has established within fourteen (14) days.

E. If Members become in dispute of what the Members duties are; if they are being fulfilled; and have gone through the dispute process outlined in section (a) through (d) of this article, the Members agree to enter into binding mediation or arbitration to decide if the Member’s duties are being performed in compliance with the outlined agreed duties of attachment 1. If there is failure to reach an agreement through arbitration or mediation of performed duties of Members, the Members in dispute agree to file a complaint in the appropriate Court to procure a decision by the appropriate Court as to the fulfillment of Members’ duties. Upon decision of the Court that a Member has or is failing to meet the duties it has been prescribed to fulfill, the Member will loose and assign its Membership interest to the other Member(s) still remaining. The assignment of the non-compliant Member’s membership interest will establish a debt owed by the LLC in accordance with ARTICLE 7.

F. A value of the non-compliant Member’s interest being transferred and assigned to the complaining Member must be made before the transfer can be completed. During the course of the transfer, the non-compliant Member will maintain complete powers of membership in the LLC.

G. In the event of a dispute of Member’s duties, Members may negotiate an exchange of Membership interests for a lesser amount of Member duties.

4.3 Limitations on Power of Members. Notwithstanding any other provisions of this Agreement, no debt or liability may be contracted on behalf of the Company without the approval of the majority of Membership Interests. The signature of Catt Road, LLC Members is required to sign contracts and obligations on behalf of the Company.

Additionally, the unanimous approval of the Members must be obtained prior to:









 



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A. The merger of the Company with another business entity.

B. The establishment of different Member classes.

C. A change in the authorized businesses of the Company (Section 1.4), D. Any act which would make it impossible to carry on the ordinary business of the Company
E. The confession of judgment against the Company
F. Any other transaction described in this Agreement which requires the approval, consent or vote of all of the Members.

G. The sale, exchange or other disposition of substantially all of the Company’s assets occurring as part of single or multiple transactions or plan.

4.4 Member Approval. The “vote” or “approval” of the Members shall mean approval by unanimous Membership Interest. Members shall vote or approve by their percentage interest as shown on Exhibit A of this Agreement. No annual or regular meetings of the Members are required. However, if such meetings are held, such meetings shall be noticed, held and conducted pursuant to the Act.

4.5 Deadlock of Members. The Members shall make best efforts to resolve differences within the Membership. In the event the Members are not able to agree on an appropriate resolution then the Members shall submit to a mandatory mediation. All costs associated with such mediation shall be split in accordance with each Member’s percentage interest.

4.4. Devotion of Time. The Members are not required to devote all of their time or business efforts to the Company. Each Member shall devote whatever time or effort he deems appropriate to carry out the Company’s business.

4.6 Noncompetition. Each Member agrees that he will not be employed, concerned or financially interested, either directly or indirectly in any other business entity that is engaged in the same or similar business as that conducted by the Company. However, Members may invest in any passive investment engaged in the same or similar business with unanimous consent of all Members, as long as that investment does not exceed 5% of the ownership of that entity.

4.7 Protection of Trade Secrets. Each Member acknowledges that the customer lists, trade secrets, processes, methods and technical information of the Company and any other matters designated by the majority of the Members are the Company’s assets. Each Member agrees not to disclose any of these assets to anyone outside the Company, except with written consent by the Company, even if the Member withdraws from the Company.

4.8 Transactions between the Company and the Members. Any Member may enter into a contract or transaction with the Company with the approval of all Members. If there is a potential conflict of interest, this approval must be in writing.

4.9 Voting. Except as otherwise provided or permitted by this Agreement, Voting Members shall in all cases, in their capacity as Members or Managers of the Company, act 








 



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collectively, and, unless otherwise specified or permitted by this Agreement, unanimously.

Except as otherwise provided or permitted by this Agreement, no Voting Member acting individually, in his capacity as a Member or Manager of the Company, shall have any power or authority to sign for, bind or act on behalf of the Company in any way, to pledge the Company's credit, or to render the Company liable for any purpose.

4.10 Voting Rights. The Company may issue and differentiate classes of membership in the Company. These membership classes shall, pursuant to this Agreement and as further defined in Section 6.9 of this Agreement, consist of Class A voting membership units held by Members with the ability to vote on Company matters ("Class A'' or "Voting"), and Class B non-voting membership units that are held by Members who cannot vote on Company matters and who shall not be responsible for the Capital Calls defined in Section

3.3(a) ("Class B" or ''Non-Voting"). Any further establishment and issuance of different membership classes may be accomplished pursuant to an amendment of this Agreement.

Any such amendment shall include provision(s) for any rights to priority distributions and change in the Percentage Interests, as defined below, of the initial members of the Company.

No dilution of the Members' Percentage Interests may be instituted without the affirmative vote of a Super Majority of the Voting Members (as defined in Section 6.9) with the exception of the Manager(s) complying with the requirements of Section 3.2.2. (a), when and if triggered. The Company is authorized to issue up to 50,000,000 Class B membership units. Each 1,000,000 Class B membership units are equal to one percent (1%) membership interest in the Company.

Article 5
Allocations of Net Profits and Net Losses and Distribution

5.1 Allocations of Net Loss and Quarterly Distributions A. Net Loss. Net loss for income tax purposes shall be allocated to Members in proportion to their Membership Interest. Loss allocations to a Member shall be made only to the extent that such loss allocations will not create a Capital Gain for that Member in the event of foreclosure of the Company’s assets.

B. Any loss not allocated to a Member because of the 5.1.A. shall be allocated to the other Members to the extent where it does not create a Capital Gain to another Member.

C. Quarterly Distribution of Available Cash. At the end of each calendar quarter, the available cash of the Company, if any, must be distributed to the Members, pro rata according to their percentage interest. Available cash means cash beyond what is required as reasonable working capital, as determined by the Members. The Members shall have the power to postpone the quarterly distribution upon unanimous vote in writing.

D. No Member has the right to demand and receive any distribution from the Company in any form other than money. No Member may be compelled to accept from the Company a distribution of any asset in kind in lieu of a proportionate distribution of money being made to other Members except on the dissolution and winding up of the Company. 








 



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5.2 Special allocations.

A. Minimum Gain Chargeback for Nonrecourse and Recourse Liabilities. The Company shall allocate income, loss and gain to comply with the minimum gain chargeback requirement contained in Treasury Regulations Section 1.704-2(f) and 1.704- 2(i)(5)). Nonrecourse Liability shall be allocated in accordance with Treasury Regulations Section 1.704-2(g)(2). Recourse Liability shall be allocated to Members in accordance with Treasury Regulations Section 1.704-2(i)(4).

B. Nonrecourse Deductions. Notwithstanding Section 5.2, any nonrecourse deductions (as defined in Treasury Regulations Section 1.704-2(b)(1)) for any fiscal year or other period shall be specially allocated to the Members in proportion to their Membership Interests.

C. Member Nonrecourse Deductions. Those items of Company loss, deduction or Code Section 705(a)(2)(B) expenditures which are attributable to Member Nonrecourse Debt shall be specially allocated to the Member who bears the economic risk of loss with respect to the Member Nonrecourse Debt according to Treasury Regulations Section

1.704-2(i).

D. Qualified Income Offset. Notwithstanding Section 5.2, if a Member unexpectedly receives any adjustments, allocations or distributions described in Treasury Regulations Section 1.704-1(b)(2)ii)(d)(4),(5) or (6), or any other event creates a deficit balance in such Member’s Capital Account in excess of such Member’s share of Company Minimum Gain, items of Company income and gain shall be specially allocated to such Member so that such excess deficit balance is eliminated as quickly as possible.

5.4 Code Section 704(c) Allocations. Notwithstanding any other provision in this Article VI, in accordance with Treasury Regulations Code Section 704(c), income, gain, loss and deduction with respect to any property contributed to the Company shall, solely for tax purposes, be allocated among the Members so as to take account of any variation between the adjusted basis of such property to the Company for federal income tax purposes and its fair market value on the date of contribution. This shall be solely for tax purposes and shall not affect a Member’s Capital Account, share of profits, losses or other items of distributions.

Article 6
Transfer and Assignment of Interests

6.1 Transfer and Assignment of Interests. With the exception of transfers between family members, stated in 6.3, Members who wish to transfer, assign, convey or sell their Membership Interest shall comply with the following:

A. First make a written offer to sell such interest to the other Member(s) at a price determined in writing. At this point exiting member may not make this intention publicly known. If such other Members decline or fail to elect such interest within sixty (60) days, the exiting member may advertise its membership interest for sale as it sees fit. 








 



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B. If a member has a buyer of members interest, the other current member(s) have first right of refusal to purchase the exiting members interest for the agreed purchase price. If there are more than one current remaining members, remaining members may combine funds to purchase the exiting members interest. Exiting member must show that potential purchaser has full certified funds, or the ability to get full certified funds before the first right of refusal period starts. Current members have 60 days to buy exiting members interest if they so desire.

C. Pursuant to the applicable law, current members may unanimously approve the sale of exiting members’ interests to grant full membership benefits and functionality to the new member. The current remaining members must unanimously approve the sale, or the purchaser or assignee will have no right to participate in the management of the business, affairs of the Company, or member voting rights. The purchaser or assignee shall only be entitled to receive the share of the profits or other compensation by way of income and the return of contributions to which that Member would otherwise be entitled. Exiting member must disclose to buyer or assignee if current members will not approve the sale

6.2 Substitution of Members. If unanimous written approval is received, the transferee shall:
(i) Execute an instrument satisfactory to the Members which accepts and adopts the terms and provisions of this Agreement.
(ii) Pay any reasonable expenses in connection with his or her admission as a new Member.

The admission of a new Member shall not release the Member who assigned the Membership Interest from any liability that Member may have to the Company.

6.3 Family Transfers. The Membership Interest of any Member may be transferred by inter vivos gift or by testamentary transfer to any spouse, parent, sibling, child or grandchild of the Member, or to a trust for the benefit of the Member or such spouse, parent, sibling, child or grandchild of the Member. If the transfer is to a revocable living trust, the transferring Member may also reacquire the Membership in whole or in part upon complying with Section 6.2.

6.4 Transfers in violation of this Agreement and Transfers of Partial Membership Interest.

Transfers violating this Article 6 shall only have an economic interest in the Company, with no right to participate in the Company management or exercise any rights of a Member.

Notwithstanding the proceeding sentence, if, in the determination of the Remaining Members, a transfer violating Article 6 would cause the termination of the Company under the Code, in the sole discretion of the Managers, the transfer shall be null and void. 








 



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Article 7
Consequences of Death, Dissolution, Retirement or Bankruptcy of Member

7.1 Dissolution Event. Upon the occurrence of the death, withdrawal, resignation, expulsion, bankruptcy or dissolution of any Member (“Dissolution Event”), the Company shall dissolve unless the Remaining Members who hold a majority of Remaining Membership Interest agree within ninety (90) days to continue the business of the Company. The Company and/or the Remaining Members may purchase the Former Member’s Membership Interest as provided in this Article.

7.2 Purchase Price. The purchase price for the Former Member’s interest shall be the fair market value of the Former Member’s Interest as determined by agreement of the former Member and the Purchasing Members. If the Former Member and the Purchasing Members cannot agree on the purchase price within 30 days after the Dissolution Event, the purchase price shall be determined by an independent appraiser. The Purchasing Members as a group, and the Former Member, shall each pay one-half of the cost of the appraisal. If the Dissolution Event results from a breach of this Agreement by the Former Member, the purchase price shall be reduced by an amount equal to the damages suffered by the Company or the Purchasing Members as a result of such breach.

7.3 Notice of Intent to Purchase. Within fifteen (15) days after a Dissolution Event, each Remaining Member shall notify the Members in writing of whether (s)he chooses to purchase a portion of the Former Member’s Interest. Each Purchasing Member shall be entitled to purchase a portion of the Former Member’s Interest in the same proportion as their Membership Interest compared with the percentage interest of all Purchasing Members.

If the Remaining Members fail to purchase the entire interest of the Former Member, the company shall purchase any remaining share of the Former Member’s Interest.

7.4 Payment of Purchase Price. The closing shall occur no later than 30 days following the determination of the purchase price. The Purchasing Members may pay all of the purchase in cash, or one fifth (1/5) at closing, with the remainder due in a negotiable promissory note, payable in four equal annual principal installments plus prevailing interest

7.5 Closing of Purchase of Former Member’s Interest. At the closing for the sale of a Former Member’s Interest, the Former Member shall provide a document conveying their interest and representing that the interest is free of encumbrances.

Article 8
Accounting, Records, Reporting by Members.

8.1 Books and Records. The Members shall maintain complete and accurate books of account of the Company's affairs at the Company's principal place of business or at another location agreeable by the Members. Such books shall be kept on such method of accounting as the Members shall select. The company's accounting period shall be the calendar year. 








 



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A. A current Members list showing their full name and last known business or residence, their capital contributions, Capital Account balance and Membership Interest; B. A copy of the Articles of Incorporation and any and all amendments C. Copies of the Company’s federal, state, and local income tax or information returns for the six (6) most recent taxable years;
D. A copy of this Operating Agreement and any and all amendments; E. The Company’s books and records as they relate to the internal affairs or the company for at least the current and past four (4) fiscal years.

8.2 Inspection of Books and Records. Each Member has the right, on reasonable request for purposes reasonably related to the interest of the person as a Member or a Manager, to: (a) inspect and copy during normal business hours any of the Company's records described in Section 7.1; and (b) obtain from the Company promptly after their becoming available a copy of the Company's federal, state and local income tax or information returns for each Fiscal Year.

8.2 Reports. By March 30th of each year, the Company shall prepare information necessary for the Members to prepare their annual federal and state income tax returns.

8.3 Bank Accounts. The Members shall maintain Company funds in one or more separate bank accounts in the name of the Company and shall not commingle the funds with any other person or entity. Any Member, acting alone, may endorse and deposit into the Company’s accounts any checks made payable to the Company. The Members shall authorize one or more of the Members to sign checks and drafts in the Company’s name.

8.4 Tax Matters for the Company. Upon unanimous vote of the Members, the Members shall designate an “Tax Matters Partner” (as defined in Code section 6231) to represent the Company (at the Company’s expense) in connection with all tax authorities. The Tax Matters Partner may spend Company funds for associated professional services and costs.

Article 9
Dissolution and Winding Up

9.1 Conditions of Dissolution: The company shall dissolve:

A. Automatically twenty-five (25) years after filing of the Articles of Incorporation, unless the Members unanimously vote to continue the company and file a Certificate of Continuation with the California Secretary of State;
B. If there is a judicial dissolution pursuant to Section 17351 of the Corporations Code; C. If the Members unanimously vote to dissolve the Company; D. If there is a Dissolution Event and the Remaining Members fail to agree to continue the business of the Company within ninety (90) days after the occurrence of such event or the Company or the Remaining Members fail to purchase the former Member’s Interest as provided in Article 7; or
E. Upon the sale of substantially all of the assets of the Company. 








 



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9.2 Winding Up. Upon the dissolution, the Company’s assets shall be disposed of and its affairs wound up. After determining that all the known debts and liabilities of the Company have been paid, the remaining assets shall be distributed to the Members according to their Capital Account balances, after taking into account income and loss allocations for the Company’s final taxable year.

9.3 Limitations on Payments Made In Dissolution. Except as otherwise specifically provided in this Agreement, each Member shall only be entitled to look solely at the assets of the Company for the return of his or her positive Capital Account balance and shall have no recourse against any other Member except as provided in Article 10.

Article 10
Indemnification

10.1 Indemnification. The Company shall indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding by reason that (s)he was a Member, officer, employee or other agent of the Company to the fullest extent permitted by applicable law. The standard of the fiduciary duty each member is to act in the highest good faith to the members and the Company. A member may not seek to obtain an advantage in the Company affairs by misconduct, misrepresentation, concealment, threat or adverse pressure.

10.2 Insurance. The Company shall have the power to purchase and maintain insurance on behalf of any Person who is or was a Member or an agent of the Company against any liability asserted against such Person and incurred by such Person in any such capacity, or arising out of such Person's status as a Member or an agent of the Company, whether or not the Company would have the power to indemnify such Person against such liability under Section 10.1 or under applicable law.

Article 11
Investment Representations
Each Member hereby represents and warrants to, and agrees with, the Members, the other Members and the company as follows:

11.1 Preexisting Relationship or Experience. (S)he has a preexisting personal or business relationship with the Company or one or more of its Members, or by reason of his or her business or financial experience (s)he is capable of evaluating the risks and merits of an investment in the Company and of protecting his or her own interests in connection with this investment.

11.2 No Advertising. (S)he has not seen, received, been presented with or been solicited by a leaflet, public promotional meeting, article or any other form of advertising with respect to the sale of the Membership Interest.









 



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11.3 Investment Intent. (S)he is acquiring the Membership Interest for investment purposes for his or her own account only and not with a view to or for. No other person will have any direct or indirect beneficial interest in or right to the Membership Interest.

Article 12
Miscellaneous

12.1 Complete Agreement. This Agreement and the Articles of Incorporation constitute the complete and exclusive statement of agreement among the Members and replace and supersede all prior written and oral agreements among the Members. To the extent that any provision of the Articles of Incorporation conflict with any provision of this agreement, the Articles of Incorporation shall control.

12.2 Binding Effect. Subject to the provisions of this Agreement relating to transferability, this Agreement will be binding upon and inure to the benefit of the Members and their respect successors and assigns.

12.3 Jurisdiction. Each Member hereby consents to the exclusive jurisdiction of the state and federal courts sitting in California in any action on a claim arising out of, under or in connection with this Agreement.

12.4 Severability. If any provision of this Agreement shall be held invalid, the remainder of this Agreement shall not be affected.

12.5 Notices. Except as otherwise expressly provided herein, any notice, consent, authorization or other communication to be given hereunder shall be in writing and shall be deemed duly given and received when delivered personally, when transmitted by facsimile if receipt is acknowledged by the addressee, one business day after being deposited for next-day delivery with a nationally recognized overnight delivery service, or three business days after being mailed by first class mail, charges and postage prepaid, properly addressed to the party to receive such notice at the address set forth in the Company’s records.

12.7 Amendments. All amendments to this Agreement will be in writing and signed by all the Members.

12.6 Multiple Counterparts. This agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which shall constitute one or the same instrument.

12.7 Mediation. Mediation proceedings shall be conducted in accordance with the Commercial Mediation Rules of the American Arbitration Association (the "AAA") in effect on the date the notice of mediation was served, other than as specifically modified herein, and shall be non- binding on the parties thereto.









 



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12.8 Attorney Fees. In the event that any dispute between the Company, the Members or among the Members should result in litigation or arbitration, the prevailing party in such a dispute shall be entitled to recover from the other party all reasonable fees, cost and expenses of enforcing any right of the prevailing party, including without limitation, reasonable attorneys’ fees and expenses.

12.9 Remedies Cumulative. The remedies under this Agreement are cumulative and shall not exclude any other remedies to which any person may be lawfully entitled.

All of the Members of Catt Road, LLC, a California Limited Liability Corporation, have executed this agreement, effective as of the date written above.

CERTIFICATION OF MEMBERS
The undersigned hereby agree, acknowledge and certify to adopt this Operating Agreement.

Signed this 5th day of March 2024.

Saad S. Pattah: ________________________
Title: Owner / President
Date: March 5, 2024









 



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Exhibit A
Membership Interest
Name Membership Type Membership Interest
Saad S. Pattah Class A 100%









 



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64 3.4 Catt Road, LLC Certificate of Good Standing
Secretary of State
Certificate of Status
I, SHIRLEY N. WEBER, PH.D., California Secretary of State, hereby certify:

The above referenced entity is active on the Secretary of State's records and is authorized to exercise all its powers, rights and privileges in California.

This certificate relates to the status of the entity on the Secretary of State’s records as of the date of this certificate and does not reflect documents that are pending review or other events that may impact status.

No information is available from this office regarding the financial condition, status of licenses, if any, business activities or practices of the entity.

Active
Entity Name:

Entity No.:

Registration Date:

Entity Type:
202460417960
01/09/2024
Limited Liability Company - CA
Status:

Formed In: CALIFORNIA
Catt Road, LLC
IN WITNESS WHEREOF, I execute this certificate and affix the Great Seal of the State of California this day of April 16, 2024.

SHIRLEY N. WEBER, PH.D.

Secretary of State
Certificate No.:

To verify the issuance of this Certificate, use the Certificate No. above with the Secretary of State Certification Verification Search available at bizfileOnline.sos.ca.gov. 200900011
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65 4. Property Owner Authorization
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66 5. Statement of Qualifications

5.1 Organizational Structure and Qualifying Experience
Catt Road, LLC is owned 100% by Saad S. Pattah. Being a 100% owner gives Mr. Pattah the power to sell equity to raise additional funds if necessary. Additionally, Mr. Pattah is the owner of Cake Enterprises, Inc., a company that owns seven (7) cannabis retail licenses throughout California. Mr. Pattah will be utilizing his compliance and operations team from Cake Enterprises to assist with the opening, hiring, and operations for the Catt Road, LLC location.

5.1.2 Saad S. Pattah – Owner Experience
Saad Pattah is a Owner and founder of Catt Road, LLC. He is a serial entrepreneur who has demonstrated success in the grocery, restaurant, and import and export industries.

Mr. Pattah began his professional career in his family’s business, Biva Market in Oceanside. He started as a cashier and slowly grew his experience and in 2008 became the General Manager overseeing operations and management of the facility. Under his leadership and with his dedicated work ethic, he grew the business more than 300% by drastically improving efficiencies and reducing costs. His keen eye for detail and commitment to customer service was imperative to the Biva’s success.

In 2011, Mr. Pattah purchased Smith NS Foods Inc which was a small company with a single location.

Under Mr. Pattah’s leadership, he developed a robust internally integrated distribution model which allowed the company to expand to multiple locations across Southern California exponentially increasing the market penetration and brand revenue.
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67 Given his proven entrepreneurial success, in 2012, Mr. Pattah saw a major opportunity to enter the restaurant industry with the growing sushi market. He founded Sushi Ventures Inc DBA Tabu Sushi. Mr.

Pattah opened the first keystone restaurant, Tabu Sushi and proved that his evaluation of the demographic and opportunity was accurate.

Given the success of the first restaurant, Mr. Pattah has continued to expand Sushi Ventures Inc across multiple locations in California. His industry intuition has been imperative to the success of the vertically integrated restaurant chain. Tabu Sushi continues to grow every year and expand into new markets across California.

In 2016, Mr. Pattah founded Sky & Lana Group Inc, which is a successful import and export business that is still currently operating.

In this venture, Mr. Pattah uses his knowledge of international business and strategic business development to diversify the company portfolio to increase revenue. Mr. Pattah’s ability to negotiate international business transactions and manage the logistical challenges, is why Sky & Lana Group has continued to outpace growth faster than the industry standards.

Additionally, Mr. Pattah has since opened seven (7) commercial cannabis retail locations throughout California. These cannabis retail locations known as “The Cake House” have been very successful financially while also supporting the needs of the local community and providing substantial tax revenue for the cities and counties they are located in.

Furthermore, Mr. Pattah opened Currently Veterans Wildomar South, LLC DBA The Cake House here in the City of Wildomar and has received nothing but positive feedback from the city and community.

Customers appreciate this Wildomar location as a safe and secure place to purchase cannabis while appealing to all demographics.
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68 5.2 Cannabis Licenses Currently Held
As shown above, Mr. Pattah possesses a wealth of cannabis business experience. As the principal owner, he brings the knowledge of commercial cannabis business operations and legal compliance so the city can rest assured that his team will create a sustainable and trustworthy cannabis operation within the city of Wildomar.

To further demonstrate the knowledge and experience Mr. Pattah’s team possesses, the Catt Road, LLC has provided state licenses in which they are currently affiliated with as an owner for the City to review.

Catt Road, LLC has local license approvals that are in various stages of development but those are not far enough along to earn a state license.

1. Riverside County Dispensary and Delivery DBA The Cake House License #: C10-0000769-LIC

2. Currnt Veterans of Wildomar South, LLC DBA The Cake House License #: C10-0000859-LIC

3. Golden Hights, Inc DBA The Cake House
License #: C10-0001082-LIC

4. Stony Point Wellness, LLC DBA The Cake House
License #: C10-0001322-LIC

5. Community of Veterans of Rivco, LLC DBA The Cake House License #: C10-0001422-LIC

6. Humanity Encinitas 4, Inc. – DBA The Cake House
License #: C10-0001424-LIC

7. Community Veterans of Rivco, LLC DBA The Cake House
License #: C10-0001437-LIC
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69 5.3 Financial Resources
Catt Road, LLC currently has $1,233,237.42 in liquidated capital dedicated to this cannabis retail project in Wildomar. If more funds are required for the project, Catt Road, LLC and its affiliated development, financial, and managerial partners are committed to providing any and all funding required for completion of the development and post development operational expenses. Below is a bank statement from our affiliated business which will be contributing the capital.
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72 6. Business & Operations Plan

6.1 Products and Services to Be Provided
Based on the experience of the company’s President and CEO, Saad S. Pattah, Catt Road, LLC will sell popular cannabis products that evolve with changes in the market. This includes variations of the following Adult Use Cannabis products:

1. Prepacked Flower - Raw Cannabis Flower will be sold in a mix of different strains depending on client demand. The company will offer a wide variety of strains to ensure Adult-use Customers have access to a complete strain assortment.

2. Pre-Rolls - Ready-made raw cannabis flower conveniently pre-rolled for easy inhalation.

3. Vaporizing Cartridges - Cannabis vaporization is growing in popularity among people interested in consuming cannabis in an easy, discreet manner that’s healthier than traditional smoking methods. The company will take into consideration the current industry concerns regarding black market cartridges to ensure that any cartridges sold by the company have been appropriately tested and only contain ingredients authorized by the FDA for inhalation.

4. Edibles - A cannabis edible is a THC-infused product that can be consumed by the client. The company plans to offer several different edible product lines to cater to the various, nutritional, financial and taste needs of clients. Careful dosing is important. Catt Road will provide customers direction on micro-dosing to ensure products are carefully administered.

5. Tincture - A cannabis tincture is a cannabis-based extract that is infused with alcohol.

6. Ingestion Paraphernalia - In accordance with 188 WMC § 5.76.120(D), Catt Road, LLC will sell or otherwise provide equipment, supplies, and paraphernalia used to consume cannabis and cannabis products.

7. Cannabis Concentrates - Cannabis that has undergone a process to concentrate one or more active cannabinoids and includes resin from granular trichomes. This may include topicals, concentrates or tinctures.

In compliance with 188 WMC § 5.76.120(F), Catt Road, LLC will not sell any expired products, cannabis, or cannabis products. Catt Road, LLC will not, under any circumstance alter, edit, or adjust in any manner an expiration date on any item or product once affixed by its manufacturer.

6.2 Adherence to Wildomar Municipal Code
In accordance with 188 WMC § 5.76.110(H), Catt Road, LLC will not sell, provide, store, or distribute any alcoholic beverages or tobacco products, or allow such products to be consumed on the licensed premises.

In accordance with 188 WMC § 5.76.110(L), Catt Road, LLC will not permit a physician to evaluate potential medicinal cannabis patients or to provide a physician's recommendation for medicinal cannabis within its licensed premises. Catt Road will not offer or provide any form of remuneration to a physician who provides physician's recommendations for medicinal cannabis. 839
73 In accordance with 188 WMC § 5.76.110(T), Catt Road, LLC will only execute cannabis businesses transactions with businesses that are licensed or permitted to do business in their respective jurisdictions. To ensure this, Catt Road, LLC will collect and validate licensing through the State’s License Search tool1.

Additionally, as permissible by 188 WMC § 5.76.120(H)(8), Catt Road, LLC will sell and offer for sale seeds and immature cannabis plants but will not sell or offer for sale live mature cannabis plants. Catt Road, LLC will provide light and water to immature cannabis plants being offered for sale but will not engage in any other cultivation activity. For the purposes of this provision, an immature cannabis plant is defined as a non-flowering cannabis plant that is shorter and narrower than 18 inches.

Pursuant to 188 WMC § 5.76.120(G), Catt Road, LLC will comply with the provisions of all relevant state and local laws regarding the storage, handling, and sale of food when engaging in any activities involving edible products.

6.3 Delivery Plan
Catt Road, LLC plans to offer delivery services of cannabis products to individuals from the Catt Road facility. All sales will be conducted within the retail space of the proposed facility. The Catt Road will not deliver cannabis or cannabis products to any location outside of California or to any location within California where the delivery of cannabis or cannabis products has been prohibited by the city or county.

Delivery Service Procedures
Catt Road, LLC will limit the hours of operation for delivery activities to the hours of 9:00 a.m. through 9:00 p.m. seven days a week or a reduced duration as stipulated through the discretionary permit.

OnFleet – Delivery Dispatch
Catt Road, LLC will utilize the high-end Onfleet software for driver and delivery dispatch. This will track deliveries to customers real time for full transparency and security.

The Onfleet platform is considered the best in the industry for final mile delivery services. The company was founded by a team of engineers from Stanford University and funded by some of Silicon Valley’s top investors. Onfleet provides dispatchers with visibility to all deliveries in transit by tracking the GPS thru the phone of each driver. Using Onfleet and COVA, our transportation capabilities will boast the following features:

1. Ability to create shipping manifests which will contain the following:
a. A unique Purchase Order number to track system receipts; b. Name, license number, and premises address for:
i. The licensee who possesses the cannabis goods;
ii. The licensee transporting the cannabis goods;
iii. The licensee receiving the cannabis goods;
c. Name and license number of any licensee involved in the activity or transaction who is not shipping, transporting, or receiving the cannabis goods; d. Date and time of activity;
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74 e. Date and time of departure from first premises, and estimated time of departure for subsequent premises if cannabis goods are being shipped from multiple premises in one transport vehicle;
f. Estimated date and time of arrival at each receiving premises; g. Driver license number for any person driving the transport vehicles; h. Make, model, and license plate number of transport vehicles; and i. Name and type of cannabis goods to be transported.

2. Ability to produce and store package and product tracking numbers. a. All cannabis products sold or transferred between cannabis facilities must have the tracking identification number that is assigned by the statewide monitoring system affixed, tagged, or labeled and recorded, and any other information required by the BCC, the act, and these rules.

3. Ability to digitally track and store information such as:
a. Digital signature for delivery;
b. Images of products picked-up and delivered; and
c. Quantity and product type.

4. Ability to pull reports.
a. Real-time inventory reports.
b. Real-time location monitoring via GPS.

5. Digital route management.
a. Creation of driver routes and sequence product delivery. b. Real-time driver notifications of any changes in a transportation route. c. Store route history.
d. Store route notes.
e. Log suspicious route activity.

Shipping Manifest
Catt Road, LLC will receive retail customer orders for delivery. These orders will be converted into outgoing shipments and assigned to drivers employed by the company. Pursuant to 16 CCR § 5049, all shipments of outgoing products will include a detailed shipping manifest. All transportation record keeping will be digitalized and be an output of the inventory tracking system with accurate inventory records. These will be notated as an outbound shipping manifest. Each shipping manifest will contain the following information:

1. Name, CUP number, and originating cannabis business address for:
a. The licensee who possesses the cannabis goods;
b. The licensee transporting the cannabis goods; and
c. The licensee receiving the cannabis goods.

2. Name and address of the individual requesting delivery;

3. Date and time of activity;

4. Date and time of departure from first premises, and estimated time of departure for subsequent premises if cannabis goods are being shipped from multiple premises in one transport vehicle;

5. Estimated date and time of arrival at each receiving premises;

6. Driver license number for any person driving the transport vehicle;

7. Make, model, and license plate number of transport vehicle;

8. Name and type of cannabis goods to be transported; and The shipping manifest will be completed and transmitted into the track and trace system viewable by the BCC.
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75 A physical copy of the shipping manifest will be carried in the transport vehicle at all times while transporting cannabis goods. The shipping manifest will be provided to law enforcement and Department of Consumer Affairs agents upon request.

Receipt of Inbound Shipments
Pursuant to 16 CCR § 5049(b)(6)(A), Catt Road, LLC will require that all incoming retail products have a detailed shipping manifest ready on arrival. All inbound shipments will have a detailed shipping manifest that can be used for receipt into the company’s inventory tracking system, COVA.

It is expected that the licensed Transport Agent will carry a detail transportation manifest containing:

1. A unique Purchase Order number to track system receipts;

2. Name, license number, and premises address for:
a. The licensee who possesses the cannabis goods;
b. The licensee transporting the cannabis goods; and
c. The licensee receiving the cannabis goods;

3. Name and license number of any licensee involved in the activity or transaction who is not shipping, transporting, or receiving the cannabis goods;

4. Date and time of activity;

5. Date and time of departure from first premises, and estimated time of departure for subsequent premises if cannabis goods are being shipped from multiple premises in one transport vehicle;

6. Estimated date and time of arrival at each receiving premises;

7. Driver license number for any person driving the transport vehicle;

8. Make, model, and license plate number of transport vehicle; and

9. Name and type of cannabis goods to be transported.

Upon receipt of cannabis goods for transport, storage, or inventory, the company employee shall ensure that the cannabis goods received are as described in the shipping manifest and shall record acceptance and acknowledgment of the cannabis goods in the track and trace system.

If there are any discrepancies between the type or quantity specified in the shipping manifest, whether by type or quantity received by the licensee, the licensee shall record, and document the discrepancy in the track and trace system and in any relevant business record.

The shipping manifest will be completed by the distributor and transmitted in the track and trace system to the Bureau and receiving licensee.

Delivery Rules
Catt Road, LLC will adhere to the following rules regarding the vehicle used for delivery as aligned with both local and state laws regarding cannabis operations:
• Delivery employees who are carrying cannabis goods for delivery, will only travel in an enclosed motor vehicle where goods are locked in the trunk of the vehicle. • While carrying cannabis goods for delivery, delivery employees shall ensure the cannabis goods are not visible to the public.
• Delivery employees will not leave cannabis goods in an unattended motor vehicle unless the motor vehicle is locked and equipped with an active vehicle alarm system. • Pursuant to 16 CCR § 5417(d), a vehicle used for the delivery of cannabis goods shall be outfitted with a dedicated GPS device. A dedicated GPS device must be owned by the licensee and used for delivery only.
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76 • The device shall be either permanently or temporarily affixed to the delivery vehicle and shall remain active and inside of the delivery vehicle at all times during delivery. • Using Onfleet technology, Catt Road, LLC will be able to identify the geographic location of all delivery vehicles that are making deliveries for the retailer and shall provide that information to the BCC upon request.
• Prior to commencing delivery operations, and prior to the use of any new car in delivery operations, Catt Road, LLC will provide the County and State regulating agencies with the following information for all vehicles that will be used to deliver cannabis or cannabis products:
proof of ownership or a valid lease; the year, make model, color, license plate number, and Vehicle Identification Number and proof of insurance. The permittee shall notify the County in writing of any changes to this information within 30 calendar days of a change. • Any motor vehicle used by a retailer to deliver cannabis goods is subject to inspection by the BCC.

Vehicles used to deliver cannabis goods may be stopped and inspected by the BCC at any licensed premises or during delivery.
• Pursuant to 16 CCR § 5418(a), while making deliveries, delivery employees will not carry cannabis goods valued in excess of $5,000 at any time. This value will be determined using the current retail price of all cannabis goods carried by the delivery employees. • Employees shall not consume cannabis goods while delivering cannabis goods to customers.

Delivery to a Physical Address
Pursuant to 16 CCR § 5416, Catt Road, LLC will only deliver cannabis goods to a physical address in California. Delivery to parks, schools or any other public facilities will be prohibited.

1. Employees will not leave the State of California while possessing cannabis goods.

2. Catt Road, LLC will not deliver cannabis goods to an address located on publicly owned land or any address on land or in a building leased by a public agency. This prohibition applies to land held in trust by the United States for a tribe or an individual tribal member unless the delivery is authorized by and consistent with applicable tribal law.

3. Delivery personnel will follow the same protocol and policies of the retail facility in the verification of the recipient’s age and necessary documentation for the receipt of cannabis or cannabis products.
a. All delivery personnel will verify the age and all necessary documentation of each individual to ensure customers are not under the age of twenty-one (21) years.

Acceptable forms of documentation will be:
i. A document issued by a federal, state, county, or municipal government, or a political subdivision or agency thereof, including, but not limited to, a valid motor vehicle operator's license, that contains the name, date of birth, physical description, and a photo of the person;
ii. A valid identification card issued to a member of the Armed Forces that includes a date of birth and a photo of the person; or
iii. A valid passport issued by the United States or by a foreign government. b. Those unable to produce acceptable forms of identification verifying they are of age top purchase will not be provided with cannabis products.

Delivery Payment Handling
Whenever possible, Catt Road, LLC will accept credit card payments through the company’s website for cannabis deliveries. Credit card processing in the current landscape is always evolving and not always readily available. When Catt Road, LLC is required to accept cash from customers, the cash will be stored in small quantities inside the vehicle.
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77 Catt Road, LLC will outfit all delivery vehicles with a secured storage container affixed in the passenger side of the vehicle on the floorboard, out of the public view. The storage container will contain a cash box inside the container affixed to the floorboard.

Upon receiving cash payments from a customer, the driver will use a digital code to open the storage container. Cash will be put inside of the cash box then the storage container will be returned to the locked position.

Upon arriving back to the retail facility, the driver will notify on-site security will be notified. The guard will watch the vehicle for suspicious activity. At that point in time, the storage container will be opened by the driver. The driver will remove the cash box from the storage container and carry it inside. Once it is inside the facility, it will go to the manager’s office for reconciliation. After the cash has been counted, it will be moved to the vault for storage.

Number of Vehicles
At the onset of operations, Catt Road, LLC is budgeting for the purchase of 1 Tesla Model 3 vehicle to support its operation. As operations scale, additional vehicles will be purchased. As part of the company’s due diligence, Catt Road, LLC is including the purchase of these vehicles in the start-up expenses identified in the Financial section of this plan.

Vehicle Records
Catt Road, LLC will maintain a database of all operational vehicles being used for the delivery of cannabis products. Within this database, Catt Road, LLC will create a file for each vehicle. This file will contain the following:

1. Copy of the Vehicle Inspection Report – signed and dated by the inspector;

2. Copy of the Vehicle Registration;

3. Photo image of the license plate;

4. Photo image of the vehicle;

5. Vehicle Make, Model, Year;

6. Copy of the Certificate of Insurance; and

7. Vehicle Maintenance Log
Vehicle Inspection Policy
In order to ensure that all vehicles remain in working order, Catt Road, LLC has created a Vehicle Inspection Checklist. All vehicles will be inspected when they are placed in service then the vehicle will undergo monthly inspections. The vehicle will be inspected by the Operations Manager or designee.

Inspection reports will be scanned and saved into the vehicle’s corresponding cloud file. Catt Road, LLC will use a professional mechanic for an Annual Certified Safety Inspection for each vehicle.

Preventative Maintenance
Catt Road, LLC will maintain a log for each vehicle that records preventative maintenance for each vehicle. This will include tracking of vehicle mileage and the following items. • Oil Change / Filter / Lube;
• Standard PM Inspection;
• Tire Rotation;
• Diagnostic & Tune-Up;
• Service Brakes;
• Replace Belts;
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78 • Tire Replacement;
• Battery Replacement; and
• Annual Certified Safety Inspection.

6.4 Size of Proposed Facility
Catt Road, LLC is proposing to construct a new retail building, totaling approximately 6,076 square feet, at 23825 Catt Road in Wildomar, CA. One unit, totaling 3,936 square feet, will be used for the proposed cannabis retail business. Other unit totaling 2,140 square feet, Will be used for either office lease space or retail space (coffee shop, Mexican food, etc.) which is to be determined, depending on tenant selection.

Catt Road, LLC will construct a new retail facility on the property to meet the operational business, legal, and safety requirements. For the purposes of continuity, the Site Plans, Floor Plans, Colored Interior Elevations, Security Overlay, and Fire Protection Plan with Ingress and Egress movements can be found in the CUP Architectural Package. This is being provided as a separate attachment.

In compliance with 188 WMC § 5.76.110(A & C), Catt Road, LLC aims to create and operate a facility that not only is in full compliance with state and local laws and regulations that govern cannabis businesses, but one that also fully complies with all applicable rules, regulations, and laws including, but not limited to, building and safety codes, and the Americans with Disabilities act.

Further, Catt Road, LLC understands that subletting is strictly prohibited and asserts that in accordance with 188 WMC § 5.76.110(R), no portion of the premises will be sublet for any purpose.

Pursuant to 188 WMC § 5.76.120(B), Cannabis, cannabis products and cannabis paraphernalia will not be placed in a window display or otherwise placed in a manner primarily intended for individuals outside of the premises to view the products.
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79 6.4.1 Site Plan
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80 6.4.2 Floor Plan
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81 6.4.3 Egress Plan
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82 6.4.4 Security Floor Plan
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83 6.5 Hours of Operation
In compliance with 188 WMC § 5.76.120(A), Catt Road, LLC will only be open to the public and engage in sales between the hours of 9:00 am and 9:00 pm seven (7) days a week

6.6 Number of Employees
Catt Road, LLC understands that the organizational structure is important in creating standard practices and operating procedures throughout its facilities. The organizational structure allows Catt Road, LLC to clearly define the role and responsibilities for each of its team members and staff to drive accountability and empowerment for each and every staff member. Below is an overview of the intended organizational structure, highlights of each role and its assigned responsibilities. In accordance with 188 WMC § 5.76.110(D), Catt Road, LLC will not allow an individual less than twenty-one years of age to work within the licensed premises or handle cannabis and/or cannabis products.

Upon the start of operations, Catt Road, LLC intends to hire 20 people consisting of:

6.6.1 Retail Store Manager
The Retail Store Manager will manage Catt Road, LLC retail store. As such, the Retail Store Manager will have a variety of responsibilities. To illustrate, the Retail Store Manager is responsible for hiring potential employees, collecting, and returning agent identification cards, and ensuring all agents complete all Program Training within 90 days of employment. Additionally, the Retail Store Manager will train all agents on inventory, sales, security, sales, and operation procedures. Each day, the Retail Store Manager will open and close the retail store, conduct beginning of day inventory audit, oversee sales and operations, and conduct end of day inventory audit. In addition, the Retail Store Manager is responsible for maintaining facility records, inspecting and accepting deliveries, disposing of cannabis waste, reconcile inventory discrepancies as needed, review surveillance equipment and footage, and well as maintain contain contact with the Department and the State/Local Police in the event of an emergency.

6.6.2 Shift Leader
The Shift Leader will work directly under the Retail Store Manager. The Shift Leader will assist the Retail Store Manager of the management of retail operations by overseeing and facilitating sales, supporting retail sales associates as needed, retrieving cannabis and cannabis products from restricted access areas, and ensuring that the appropriate number of customers have access to the retail area. In addition to overseeing sales, the Shift Leader will create employee retail sales associate work schedules and maintain the interior cleanliness of Catt Road, LLC’s retail facility during business hours. 850
84 6.6.2 Retail Sales Associate
Each Retail Sales Associate will facilitate sales within Catt Road, LLC’s store. During each sale, each Retail Sales Associate will engage and develop a relationship with the customer. Each Retail Sales Associate will get to know each customer to make adequate cannabis and cannabis product recommendations.

During each sale, each Retail Sales Associate will educate each customer about the product the customer intends to purchase or the product the customer does in fact purchase. Subsequently, the Retail Sales Associate will create an inventory record for each sale conducted in Catt Road, LLC’s store.

6.6.3 Inventory Control Specialist
The Inventory Control Specialist will review and monitor inventory levels. Each day, the Inventory Control Specialist will conduct beginning of day and end of day inventory data entries. The Inventory Control Specialist will use the data collected each day to monitor inventory levels for each cannabis and cannabis product in the store. The Inventory Control Specialist will purchase inventories of cannabis and cannabis products, with the approval of the Retail Store Manager, when inventory becomes too low. In addition to monitoring inventory day-to-day, the Inventory Control Specialist will research cannabis and cannabis product trends and will make purchasing adjustments, again, with the approval of the Retail Store Manager, to ensure Catt Road, LLC carries the highest demanded products. Furthermore, the Inventory Control Specialist will develop and maintain relationships with cultivation, craft grow, and infuser organizations.

6.7 Day to Day Operations
As mentioned above, the owners of Catt Road, LLC have extensive experience in operating legal cannabis businesses. This experience has provided the team well in crafting standard operating procedures that bring both industry best practices as well as facility compliancy with local and state rules and regulations. Catt Road, LLC intends to operate an Adult Use only retail dispensary. Below the team has included details on its day-to-day operational procedures.

6.7.1 Opening Procedures Checklist
The Inventory Control Agent and Shift Manager will execute the below Store Opening Checklist to ensure that all morning activities are complete. A record of this will be kept on file. Once employees have completed the store opening checklist and properly filed the form, they will open the lobby area to allow customers in for normal business.
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85 6.7.2 Customer Check-In Procedures
Age Verification
Pursuant to 188 WMC § 5.76.120(C), Current Cannabis will not allow any individual less than twenty-one years of age into the facility. Entrances into the facility will be locked at all times with entry strictly controlled. A "buzz-in" electronic/mechanical entry system will be utilized to limit access and entry to the retail area to separate it from the reception/lobby area.

Before a customer is introduced to Catt Road, LLC products, they must have their identification verified.

A Catt Road, LLC customer will have their identification scanned multiple times prior to making a purchase. A Catt Road, LLC employee will scan each customer’s identification using an ID scanner linked to the COVA – POS system. In using an automated system, Catt Road, LLC reduces human error to prevent underage sales. The system will capture date and time stamps for each customer entry.

Pursuant to 16 CCR § 5402(a) only individuals at least 21 years of will be granted access to the retail area.

An employee of Catt Road, LLC will verify the age and all necessary documentation of each individual to ensure customers are not under the age of twenty-one (21) years. Customers will be asked to produce one of the following forms of acceptable identification pursuant to 16 CCR § 5402(b):
• A document issued by a federal, state, county, or municipal government, or a political subdivision or agency thereof, including, but not limited to, a valid motor vehicle operator's license, that contains the name, date of birth, physical description, and a photo of the person; • A valid identification card issued to a member of the Armed Forces that includes a date of birth and a photo of the person; or
• A valid passport issued by the United States or by a foreign government.

Once a customer has been verified with the acceptable form of identification, they will be granted access to the sales floor and begin the product discovery and sales process. 852
86 Customer Experience Strategy
Beyond providing high quality products that are meaningful to a customer, Catt Road, LLC understands that providing a positive experience is the next most important thing to driving customer loyalty. The experiences a customer have when interacting with your business throughout the customer journey can impact the overall feeling a customer gets when they think about your company. Delivering a great product is only a portion of the overall customer journey.

For this reason, Catt Road, LLC has pooled together of course their previous experience and done some research to craft a customer experience strategy that would promote customer loyalty.

According to the Customer Experience Trends Report published by Acquia, 80% of customers say that they would be loyal to a brand that provided a more personalized experience.

With that information, Catt Road, LLC has built a customer experience strategy will employ traditional best practices of professional customer service with a primary focus on personalization.

To accomplish this, Catt Road, LLC will train employees to do things like, refer to repeat customers by their first name, create rapport with new clients, learning as much as they can about them, what they are looking for, their desired products and or effects they are looking to get from their products.

Catt Road, LLC will use, with the customers permission, the COVA inventory management system to create customer profiles and retain their purchase history. This information will be used for the sole purpose of better understanding customers and further personalizing future visits.

Further efforts will be made by Retail Sales Associated to gain feedback from customers on various products and their experiences. This feedback will be reviewed in team meetings and Catt Road, LLC will work to address any customer concerns.

Beyond this personalization effort, Catt Road, LLC believes there is a uniqueness within the cannabis industry relating to customer experience for customers new to cannabis. While these customers are still looking for a personalized experience, there is a huge educational component to delivering a quality experience for a newcomer. New customers typically want to know everything about cannabis, from the various products and their effects to the laws and regulations that surround the industry. For that reason, Catt Road, LLC has also created training regarding the educational aspect of the customer experience.

Customer Education
Customers are key to any business. Without customers, businesses cannot survive. In the cannabis industry ensuring that customers understand products, the various methods of consumption, potency and the potential effects is particularly important not only for sales but for safety. At Catt Road, LLC’s facility, customer education will begin as soon as a customer encounters their first sales associate. Catt Road, LLC will develop a proprietary Employee Product Education Program that will give the employees the tools to speak to customers about cannabis strains, consumption methods, warnings, micro dosing, and health benefits.
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87 Throughout the shop, retail sales associates will be present to answer questions and to educate customers on the individual benefits of the cannabis psychoactive and non-psychoactive products, how to interpret percentages of THC/CBD, and the different methods of consumption. The staff will undergo training from Cannabis Training University in order to communicate with customers the effective way of how to properly dose oneself from any method chosen.

Strains and Consumption Methods
Throughout the shop, an associate will be present to answer questions and to educate customers on the benefits of cannabis psychoactive and non-psychoactive products, the percentages of THC/CBD. This will extend to explaining the different strains available as well as the difference between the two major strains: Sativa and Indica.

Associates will also explain the different products and consumption methods which include: Smoking cannabis flower
• Vaporizing
• Ingesting edibles
• Topicals
The associate’s explanation and assistance will help the customers determine which consumption method is best suited for their specific needs.

Customer Warning and Risks
Customers will also receive information on risks that can be associated with cannabis use. Additionally, the customer will be educated on the importance of keeping the cannabis and cannabis products out the reach of children.

Purchase Limits
Pursuant to 16 CCR § 5409(c), an associate will be responsible for ensuring that the customer does not exceed the daily purchase limits which are as follows:
• 28.5 grams of non-concentrated cannabis.
• 8 grams of concentrated cannabis as defined in Business and Professions Code section 26001, including concentrated cannabis contained in cannabis products. • 6 immature cannabis plants.

The staff will undergo training from a cannabis education program through a company like Cannabis Training University in order to communicate with customers on effective ways on proper dosing methods.
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88 6.7.3 Customer Product Handling Procedures
Pursuant to 188 WMC § 5.76.110(F) and 16 CCR § 5033, all inventory stored on the licensed premises shall be secured in limited access areas. Catt Road, LLC product storage plan is designed to meet and exceed these requirements and will consist of physical barriers to prevent theft and diversion, operational barriers that limits the minimum number of authorized individuals to gain access to any cannabis products, and environmental controls that prevent the deterioration of cannabis products.

Customer Interaction
Upon verification of the customers age and the customer entering the sales floor area, the customer will have access to view products that are locked in display cases. Customers will be greeted by a Retail Sales Associate who will ask the customer if they have any questions about the various products. All associates will be identified with their company issued uniformed, a branded polo shirt.

If the customer replies yes, the Retail Sales Associate will use his/her training to answer questions and educate the customer on the different product types, consumption methods, and strains. Customer will not be able to handle product in the discovery phase. Sample products will he handled by Retail Sales Associates only and cannabis products within the store will never be opened.

One a customer has decided on their purchase, the requested products will be “checked-into” staging areas by systemic notations in the Inventory Management System by the Retail Sales Associate. It is the commitment of Catt Road, LLC to maintain accurate Inventory Management records, therefore at any given moment in time, Catt Road, LLC will be able to provide a “real-time” report of the cannabis quantities in storage which can be provided to the Department upon request.

The Retail Sales Associate will retrieve desired products from the staging area (daytime storage area) and scan the products at the point of sale station under the surveillance. Employees who handle cannabis product in order to transfer that product to customers will be required to check in and take responsibility for the product they are handling systematically within in the Inventory Management System. Managers will monitor and approve the access that employees have to areas where cannabis is stored.

As the Retail Sales Associate scans each product being purchased, products will be placed in a bag. Upon completion of the transaction, the drawstring bag will be pulled tight and tied and handed to the customer. The customer will be escorted out of the sales area by the Retail Sales Associate and will pleasantly conclude the customer’s shopping experience.

Precautionary Actions
To further ensure customers do not have access to cannabis products, Catt Road, LLC will implement the use of physical barriers (walls and doors), electronic measures and employee procedures in order to deter and prevent the unauthorized entrance into areas containing cannabis or cannabis products, and to deter and prevent the theft of cannabis or cannabis products at the commercial cannabis business.

All points of access to the business will be controlled with electronic access controls, keypads, key cards, and remote electronic lock (buzz- in) features. Individuals who are not engaging in an activity related to 855
89 the permitted operations of the commercial cannabis business will not be allowed to remain on the premises.

For ease to the Retail Associates and Security Staff, Catt Road, LLC will require each member of the team wear a company issued uniform. The uniforms will aid staff in visually differentiating between customers and staff members and help them identify quickly if customers are close to a restricted area for any reason. The uniforms will further aid law enforcement or management who may need to review video surveillance in quickly identifying staff members in their observations. Company uniforms will include the company logo and each team member will be provided attire prior to the start of work duties.

6.7.4 Receiving Incoming Inventory
Catt Road, LLC’s product receiving process will follow strict policies and procedures in order to ensure full compliance with all track and trace regulations and to ensure the security of the assets and the safety of all personnel. Catt Road, LLC’s suppliers will transport and transfer products to the facility as allowed by the City of Wildomar and the State of California. Shipments will be conducted through the use of a licensed, insured and state authorized transport company.

Product receiving will occur on a regular basis in order to ensure that a sufficient supply of product is on hand for sale and in smaller amounts to reduce risk during transfer. The movement of large amounts of high value product at one time can create an excessive risk of loss during transfer.

Shipments are scheduled at random times and hours in order to avoid predictability that can elevate the risk of theft. Product transport/transfer will be completed during the times of 6:00 am to 6:00 pm, or during daylight hours, to ensure maximum visibility and threat detection. When shipments are scheduled, this information will only be provided to individuals who occupy a “need to know” position in order to avoid risk of theft.

Transport vehicles will notify Catt Road, LLC security personnel 5-10 minutes in advance of their arrival.

Catt Road, LLC security personnel will visually verify that there are no imminent threats and notify transport personnel it is safe to approach the shipping/receiving door of the business. Transport vehicles will park in a designated area that is within view of Catt Road, LLC’s security cameras. Security personnel will then approach the transport vehicle in order to escort the movement of product into the interior of the building. Product will be immediately placed into the secure vault and the vault will be locked. The transport vehicle will not be left unlocked or unattended during the transfer in order to avoid theft at these times.

At the time of the shipment:
• Catt Road, LLC security personnel will inspect the credentials of the transport personnel prior to allowing entry into the building. Transportation team members and vehicle will be logged by Catt Road, LLC security personnel upon each arrival.
• Security personnel or manager will verify that the shipment paperwork, amounts, and manifest are in order prior to allowing transporters to leave the site. 856
90 In compliance with 5.76.170(A-D), Catt Road, LLCwill ensure all packaging and labeling of cannabis and cannabis products received from licensed cannabis businesses, meet the requirements of 188 WMC § 12 of MAUCRSA and any implementing regulations. Any products that do not meet the following requirements will be refused and returned to the originating vendor:
• Tamper-Evident, Child-Resistant Packaging Required. Prior to delivery or sale at a retailer to a purchaser, cannabis and cannabis products shall be labeled and placed in a resealable, tamperevident, child-resistant package and shall include a unique identifier for the purposes of identifying and tracking cannabis and cannabis products. • Cannot Be Attractive to Children. Cannabis packaging and labeling shall not be designed to appeal to children, including, but not limited to, cartoon characters or similar images. • State-Mandated Warnings and Information. All cannabis and cannabis product labels and inserts shall include the state-mandated warnings and information contained in Business and Professions Code Section 26120(c).

6.7.5 Closing Procedures Checklist
The Inventory Control Agent and Shift Manager will execute the below Store Closing Checklist to ensure that all closing activities are complete. A record of this will be kept on file. 857
91 6.8 Compliance with Local Ordinance and State Laws
Lance Rogers will serve as General Counsel for Catt Road, LLC. He is the Principal / Attorney at Law Offices of Lance Rogers in San Diego, California. As a part of his regulatory compliance practice, he currently represents many of the leading cannabis and hemp companies in California, including retailers, manufacturers, and agriculture ventures. As a litigator, he has handled a wide array of matters related to cannabis including criminal defense, regulatory violations, land use/zoning, complex business litigation and partnership, and dispute matters. With the experience of expertise of Lance, Catt Road, LLC is confident that they can maintain compliance with all local and state ordinances.

In compliance with 188 WMC § 5.76.200(B), the local licensing authority will be welcome to enter the facility from time to time unannounced for the purpose of making reasonable inspections to observe and enforce compliance with all local ordinances. Such inspections will allow the local licensing authority to observe the premises for purposes of determining whether Catt Road, LLC’s facility is being operated or maintained in compliance with local code, state law, and other applicable laws and regulations. Catt Road, LLC will comply with any request made for demonstrating that the source and quantity of any cannabis or cannabis products found upon the licensed premises is in full compliance with any applicable local or state law or regulation.

Further, Catt Road, LLC understands that in accordance with 188 WMC § 5.76.200(C-D), the local licensing authority or delegate will have the right to inspect records of medicinal cannabis patients and primary caregivers that have made purchases of medicinal cannabis or medicinal cannabis products from a retailer for the sole purpose of determining whether any and all such individuals are qualified to make such purchases.

6.9 How Cannabis Will Be Tracked and Monitored to Prevent Diversion In Compliance with 188 WMC § 5.76.120(E) and with 16 CCR § 5049(a), Catt Road, LLC will utilize an electronic point of sale system. The electronic point of sale system will be capable of producing an electronic or automatic paper record for all transactions associated with any product sold, rented, or otherwise provided to the customer.

Catt Road, LLC will use the COVA Cannabis Dispensary POS system to record and report on all aspects of cannabis tracking, inventory data, and gross sales. This will serve as a legally compliant seed to sale Point of Sale system. COVA is an authoritative leader in seed to sale best practices cannabis compliant point of sale systems, Cova’s systems integrates into the states regulatory reporting and tracking system METRC.

Cova is embraced here in California by other licensed cannabis seed to sale compliant retailers and in other jurisdictions such as Oklahoma and Canada.

COVA will prevent staff from breaking the rules or making operational missteps that violate local and state regulations. COVA includes an Age Verification Scanner in order to prevent underage sales and to verify information with ID barcode scanners. COVA also includes will have Purchase Limits Alerting where it automatically calculated product equivalencies to violate state regulations. If it is violated, it will alert the staff if limits have been exceeded. Finally, the COVA software makes it impossible to serve patrons after the allowed Hours of Operation. This will ensure that Catt Road, LLC complies to the authorized hours of operation.
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92 COVA also is an inventory tracking system. The system will track and report all aspects of Catt Road, LLC’s cannabis business including, but not limited to, such matters as inventory data, gross sales (by weight and by sale), and other information which may be deemed necessary by the City. Catt Road, LLC business shall ensure that such information is compatible with the City’s record-keeping systems. In addition, the system will have the capability to produce historical transactional data for review.

In accordance with 188 WMC § 5.76.110(N), Catt Road, LLC will all scales and weighing mechanisms used to weigh non-waste products will be able to weigh to within 1/100th of a gram, will be maintained in good working order and available for annual inspection by either a Riverside County agricultural commissioner's office weights and measures official or a licensed scale company.

6.9.1 POS Equipment
Catt Road, LLC will be purchasing the below equipment to support retail operations:

6.9.2 Track-and-Trace
Standard operating procedures include detailed California Cannabis Track-and- Trace (CCTT) procedures as outlined by the State.

6.9.3 Track-and -Trace Account Manager
Pursuant to 16 CCR § 5048, Catt Road, LLC will designate one individual to own the management of the track and trace system. This individual may authorize other owners or employees as track and trace system users and shall ensure that all users are trained on the track and trace system prior to use. The Track and Trace Account Manager will adhere to the following rules:

1. The account manager shall attend and successfully complete all required track and trace system training, including any orientation and continuing education.

2. If the account manager did not complete the required track and trace system training prior to receiving their annual license, the account manager shall sign up for and complete state mandated training, as prescribed by the Bureau, within 10 business days of license issuance.

3. The account manager and each user shall be assigned a unique log-on, consisting of a username and password. The account manager or each user accessing the track and trace system shall only do so under his or her assigned log-on and shall not use or access a log-on of any other 859
93 individual. No account manager or user shall share or transfer his or her log-on, username, or password, to be used by any other individual for any reason.

4. The account manager shall maintain a complete, accurate, and up-to-date list of all track and trace system users, consisting of their full names and usernames.

5. A licensee shall monitor all compliance notifications from the track and trace system, and timely resolve the issues detailed in the compliance notification.

6. The track and trace account manager will be responsible for training Shift managers, Retail Sales Associates, and Inventory Control Agents.

6.9.4 Mandated Bi-Weekly Inventories
Pursuant to 16 CCR § 5051(a), at intervals not exceeding 14 days, the Inventory Control Agent will conduct and document an audit of the inventory that is accounted for according to generally accepted accounting principles. Any unexplained shrinkage will be documented and trigger a review of electronic security and surveillance data.

When Catt Road, LLCC determines where the shrinkage occurred, appropriate corrective measures will be implemented. Law enforcement authorities will be notified immediately if the Inventory Control Agent ascertains that there has indeed been loss, theft, improper diversion, or any other criminal activity.

6.9.5 Opening and Closing Inventories
Employees will regularly conduct an inventory of all products.

1. A comprehensive inventory of all cannabis will be done twice daily:
a. Before the retailer opens; and
b. After close of daily operations.

2. All cannabis and items containing cannabis are counted, weighed, or both.

3. Inventory results will be submitted to the Inventory Control Agent for reconciliation with the inventory data generated the previous evening or in the operations of the day after being closed out.

4. Discrepancies will trigger an inventory audit by the Inventory Control Agent and, if confirmed, a review of electronic security and surveillance data.

5. Law enforcement authorities will be notified immediately if the Inventory Control Agent ascertains that there has indeed been loss, theft, improper diversion, or any other criminal activity.

6.9.6 Notification of Theft, Loss, and Criminal Activity Pursuant to 16 CCR § 5051(b), a licensee shall notify the Bureau and local law enforcement within 24 hours of discovery of any of the following situations:

1. The licensee discovers a significant inventory discrepancy. 860
94 a. A significant discrepancy in inventory means a difference in actual inventory compared to records pertaining to inventory of at least $5,000 or 2 percent of the average monthly sales of the licensee, whichever is less.

2. The licensee discovers theft, loss, or any other criminal activity pertaining to the operations of the licensee.

3. The licensee discovers theft, loss, or any other criminal activity by an agent or employee of the licensee pertaining to the operations of the licensee.

4. The licensee discovers loss or unauthorized alteration of records related to cannabis goods, clients, or the licensee’s employees or agents.

5. The licensee discovers any other breach of security.

In the case that one of the activities above is discovered by the licensee, the licensee will follow the below procedure.

1. Notify local law enforcement.

2. Record the date and time of the loss.

3. Record a description of the incident and where applicable the items that were taken or lost.

In accordance with 188 WMC § 5.76.110(S), Catt Road, LLCwill keep and maintain all records specified in 188 WMC § 16 of the MAUCRSA and will make the same available for inspection and examination of the local licensing authority or its duly authorized representatives during standard business hours of the licensed facility or at any other reasonable time. As specified by 16 CCR § 5037(a), Catt Road, LLCwill exercise due diligence in preserving and maintaining all following records related to its commercial cannabis activity for at least seven years:
• Financial records including, but not limited to, bank statements, sales invoices, receipts, tax records, and all records required by the California Department of Tax and Fee Administration (formerly Board of Equalization) under title 18, California Code of Regulations, sections 1698 and 4901.
• Personnel records, including each employee’s full name, social security or individual tax payer identification number, date employment begins, and date of termination of employment if applicable. (Training records including, but not limited to, the content of the training provided and the names of the employees that received the training. • Contracts with other licensees regarding commercial cannabis activity.

Permits, licenses, and other local authorizations to conduct the licensee’s commercial cannabis activity. Security records, except for surveillance recordings required pursuant to section 5044 of this division.
• Records relating to the composting or destruction of cannabis goods. • Documentation for data or information entered into the track and trace system. • All other documents prepared or executed by an owner or his employees or assignees in connection with the licensed commercial cannabis business. 861
95 6.10 Operations Schedule
As Catt Road, LLC has already done much of the planning for this project, inclusive of securing property and engaging local contractors, identifying vendors for desired equipment, and understanding requirements, there is no doubt for this team that they can quickly turn their plan to reality. Catt Road, LLC will pool their combined knowledge and business experience to turn their plan into action so that upon being granted a license, they can quickly execute on the goals of the proposed project. Catt Road, LLC has crafted an estimated timeline to illustrate their expected timeline for establishing their operation.

While this timeline may seem aggressive, as noted above, Catt Road, LLC has already received quotes and has full plans for site development. Catt Road, LLC, as well as the contractor who has proposed the design is confident that the facility can be up, and operational based on the above timeline. 862
96 6.11 Start Up Costs
Catt Road, LLC intends to develop, from the ground up, a brand-new industry leading facility. The facility will be modern, inviting and rely on the latest technology that will minimize environmental impact. It will be built with safety and compliance at the core to ensure the safety of its patrons as well as the community. Catt Road, LLC anticipates that the start-up cost for the facility buildout and outfitting will be $2,046,102. This amount includes capital, one-time expenses estimated to cost $1,535,500 for the facility buildout, landscape improvements, the installation of a robust point of sale system, and implementation of a comprehensive security plan (please refer to section 8). An Additional $510,602 is expected for local and state licensing fees as well as a 3-month operating budget to cover expenses related to payroll, utilities, and securing starting inventory. Below, Catt Road, LLC has provided a breakdown of anticipated startup expenses related to the establishment of its facility and operation. 863
97 6.12 Anticipated Revenues
As Catt Road, LLC develops its relationship with the local community, it is expected to see continuous revenue growth. Catt Road, LLC anticipates a steady growth in sales among the residents of Wildomar and the surrounding regions. Following industry purchase trends, Catt Road, LLC assumes that an average customer will make a purchase of $125 on cannabis and cannabis products from Catt Road, LLC’s store each visit. On average, each customer will visit 2 times per month. Starting in Year 1, Catt Road, LLC expects to generate $2.43M. By year 5, Catt Road, LLC expects to generate $5.57M, respectively.
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98 6.13 10-Year Proforma
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99 6.13.1 Anticipated Federal, State, and Local Tax
In accordance with 188 WMC § 5.76.110(B), Catt Road, LLC will ensure payment of all applicable taxes pursuant to federal, state, and local law, including but not limited to state and local sales and use taxes and state excise taxes.

6.13.2 Excise Tax Payment – State of California
Pursuant to the Revenue and Taxation Code § 34011, Catt Road, LLC will collect and pay the Excise Tax under the following conditions:

1. Catt Road, LLC will charge and collect the excise tax of 15% from each patron.

2. Catt Road, LLC will provide each patron a receipt that includes the statement: “The cannabis excise taxes are included in the total amount of this invoice."

3. Catt Road, LLC will track the Excise Tax using the COVA POS System.

4. The Excise Tax will be paid to the License Distributor where the product was originally procured.

Estimate of Excise Tax Collected
Catt Road, LLC has estimated that approximately 15% of GROSS receipts (with the exception of batteries) will be collected and paid to the CDTFA.

6.13.3 Sales and Use Tax Payment
Pursuant to 16 CCR § 5002(c)(24), Catt Road, LLC will have a valid seller’s permit issued by the California Department of Tax and Fee Administration. Catt Road, LLC will collect and pay the sales tax under the following conditions:

1. Catt Road, LLC will obtain a Seller’s Permit from the California Department of Tax and Fee Administration (CDTFA).

2. Catt Road, LLC will charge and collect the Sales Tax from each patron.

3. Catt Road, LLC will electronically file a sale and use tax return and pay the tax directly to the CDTFA.
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6.14 COMMUNITY RELATIONS DESIGNEE
Catt Road, LLC has planned its operation is a way to minimize impact to the surrounding community.

Should operations drive disruption, Catt Road, LLC will welcome the feedback so that, as a company, they can work to address the issues viewed as a nuisance. As such, Catt Road, LLC will provide means to collect feedback from neighbors through a couple of different means.

First, Catt Road, LLC will distribute company contact information throughout the community as an outlet for people to provide feedback on any concerns related to noise, light, odor, or traffic. Pursuant to 188 WMC § 5.76.110(M), Catt Road, LLC will provide the city with the name, phone number, facsimile number, and email address of an on-site community relations representative or staff member or other representative whom the city can contact regarding operating concerns associated with the cannabis business.

6.14.1 Catt Road, LLC Relations Designee
• Name: Alex Dos Santos
• Phone Number: 480-329-9439
• Email: [email protected]

6.14.2 Changes to Designee
Catt Road, LLC will report any change in their community relations designee to the city within ten calendar days of any such change. This information will further be distributed to neighboring businesses as well. Catt Road, LLC sees this as means to get to know the neighbors and establish transparent, healthy working relationships.

6.14.3 Accepting Complaints
Catt Road, LLC will post a complaint form on their website. This will be utilized for collecting complaints both from the community and customers. This form will generate an email directly to the Director of Operations, who will review them daily. The Director of Operations will hold weekly meetings with the Catt Road, LLC team to review and discuss the complaints. Once the complaint is addressed, protocols and process documents will be revised and/or store adjustments will be made. Below is an example of the complaint form Catt Road, LLC will make available via the company’s website.

All complaints will be recorded and kept on file and will be provided to the City of Wildomar officials upon request. Catt Road, LLC, is again, dedicated to supporting the community and will take any and all reasonable actions to minimize disruption to neighboring members of the community.

6.14.4 Nuisance Prevention
Overall, the Catt Road, LLC team has put in much effort to design a facility that aesthetically integrates into the community, explored ways to give back to the neighborhood through volunteerism and financial contributions, manage day to day activities in a way that is not disruptive to others, and manage all possible odors that may seem offensive to others. 867
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Catt Road, LLC will ensure that the proposed location is professionally landscaped and remains free of debris. Any sign of graffiti, litter, or destruction will be addressed immediately to prevent the facility from becoming an eye sore to the community. Consumption of alcohol or cannabis in any form will be strictly prohibited on the premises. Policies will be in place that strictly prohibits loitering in or around the facility and parking lots will be regularly monitored. These efforts will work to prevent any and all noise related problems associated with people gathering on the premises.

Finally, our management team will ensure that the traffic in and out of the facility is respectful of the neighboring members of the community. Ample on-site parking will serve to alleviate any pressures on community traffic or pedestrians.

7. Fire Protection Plan
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7.1 Plan Summary
Catt Road, LLC is proposing the brand-new construction of an adult use retail dispensary on Bundy Canyon Rd. in Wildomar, California. New construction provides a specific advantage in terms of implementing an efficient and effective fire protection plan. The facility will be constructed from the ground up using fire rated material in accordance with the requirements of the City of Wildomar Fire Code. Catt Road, LLC intends to have several different fire prevention and suppression systems in place to address any and all possible fire, hazardous material, and inhalation issues/threats that exist in the facility.

Catt Road, LLC will work directly with the building code officials, inspectors and the City of Wildomar Fire Marshall to ensure that the building construction is compliant will all codes and regulations and provide ample protection for the facility and ultimately the employees, patrons, and community.

Beyond the development of a safe facility, Catt Road, LLC has created operational procedures will be incorporated into day to day activities that will work to prevent a fire from occurring. This will include routine inspections, proper system maintenance, and maintaining compliance with building, electrical, plumbing and fire codes set forth by state and local regulating bodies. The building will feature sprinkler systems, strategically placed fire extinguishers, and emergency access Knox boxes that will aid is the quick suppression of a fire in the event that it occurs.

Catt Road, LLC will also be installing a fire alarm system that will be monitored 24 hours a day 7 days a week by a professional monitoring company. Catt Road, LLC will utilize the latest technologies offered to further provide environmental controls effective for responding to emergency situations such as a fire.

For example, Catt Road, LLC will be enables to remotely shut down HVAC systems using an app in the event of a fire. This ability help minimize fire spread.

Catt Road, LLC is committed to establishing a safe and compliance facility and is confident that this fire plan will prove the thought and due diligence of the team. Catt Road, LLC looks forward to engaging with the City and County Officials to ensure the implementation of this plan meets and/or exceeds the City’s expectations.

7.2 Faculty Fire Prevention, Suppression, HVAC, and Alarm Systems

7.2.1 Fire Prevention System
Catt Road, LLC views fire prevention as an essential element to be incorporated into day-to-day operations. By incorporating fire prevention activities into basic operations, Catt Road, LLC can address the risk of a fire before the fires even ignites. Catt Road, LLC understands that one of the most effective tools for fire prevention is regular inspections. Regular property inspections will be conducted to identify vulnerable areas throughout the facility and once identified, to fix them. These vulnerable areas can be things like overloaded electrical outlets, improperly maintained systems, and improperly stored materials. Should any of these problems be identified, Catt Road, LLC will take the appropriate actions to remove the threat and to ensure it does not get to be that way again. As part of the inspection, Catt Road, LLC will monitor the following things as means to prevent the risk of fire:
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1. Accumulation of trash and debris: Approved waste containers that are appropriately sized, shall be provided and stored in an approved location.

2. Combustible Storage: Storage of combustible materials in buildings will be maintained in an orderly manner and be separated from heating or ignition sourced by distance or shielding so that ignition cannot occur.

3. Ignition Sources and Open flames: Ignition sources and open flames will be separated from flammable and combustible materials.

4. Maintenance of Exiting:
a. The minimum exit access widths shall be maintained always. b. The Minimum aisle widths shall be maintained always. c. Enhanced building security shall not interfere with exiting measures and will by no means impede egress for the facility’s occupants or firefighters in the event of an emergency.
d. Electronic access control, if installed, shall not interfere with the exiting components.
e. All locking hardware on doors (interior or exterior) shall meet the minimum requirements for exiting.
f. All doors and door hardware shall be identified on the specifications and plans. g. All exit doors, passageways and exit corridors will remain free of any obstruction and maintained as required by the City of Wildomar Fire Code. h. Any security device or system that emits any medium that could obscure a means of egress in any building, structure or premise will be prohibited and be maintained in accordance with the City of Wildomar Fire Code. Specifically, any / all electronic controlled access, enhanced security or other similar equipment shall be submitted to the City of Wildomar for review and approval.
i. Emergency Lighting with battery backup will be provided in all exit passageways and exit corridors. j. Exit signs shall be installed above all exits and maintained as required by code.

5. Fire Department Access
a. Where access to or within a structure or an area is restricted because of secured openings or where immediate access is necessary for lifesaving or fire-fighting purposes, a KNOX key box or key switch will be installed in an approved location. The key box or key switch will be of an approved type and will contain keys to gain necessary access as required by the fire code official per the City of Wildomar Fire Code.
b. All required exterior doors will remain operable for emergency access by firefighters. Eliminating the function of any exterior doors will require prior approval that cannot be granted in every circumstance, and where allowed, the door must be marked with a sign stating, “THIS DOOR BLOCKED”. c. Rooms containing fire protection equipment (fire alarm panels, fire sprinkler valves, etc.), controls for air-conditioning equipment, utility equipment for gas or electrical service and rooms containing hazardous materials will be provided with identifying signage to aid firefighters.

6. Fire Extinguisher Maintenance.
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a. Portable fire extinguishers shall be installed in M and S occupancy groups per the City of Wildomar Fire Code. The size and distribution of portable fire extinguishers shall also be in accordance with the City of Wildomar Fire Code and at the discretion of the City of Wildomar Fire Marshal. Catt Road, LLC will strategically locate all extinguishers per code.

7. Electrical Hazards/Extension Cords
a. Electrical panels and service equipment will be clearly identified with a clear space of not less than 30 inches in width, 36 inches in depth and 78 inches in height. Storage will not be permitted within the above dimensions. b. Catt Road, LLC understands that the City of Wildomar Fire Code prohibits the use of extension cords or power strips as permanent wiring to equipment, lighting, fans, etc. When Electrical extension cords are used, they will U.L. approved, free of damage and used in accordance with the City of Wildomar Fire Code.

8. Hazardous Materials (General)
a. Hazardous materials or hazardous waste will not be stored or handled at this facility apart from housecleaning products, which will be stored in a safe location. Catt Road, LLC understands that Cannabis Waste is regulated and must be handled in accordance with all applicable laws and regulations. All Cannabis Waste will be stored according to law, in a locked receptacle in a limited access area, and will only be disposed of by a licensed waste management company.

Catt Road, LLC will be utilizing GAIACA for waste management.

7.2.2 Fire Suppression System
Sprinkler System
Exceeding the requirements of the International Fire Code, the Catt Road, LLC’s facility will be protected with a new automatic sprinkler system. One (1) 4” diameter fire riser will be located within a dedicated riser room is provided for the building. The riser room will provide direct exterior access.

The new sprinkler system will provide coverage in accordance with NFPA 13 - Standard for the installation of Sprinkler Systems. Sprinklers will provide the following densities:

The new riser rooms are of 1-hour fire-resistance rated construction and provide direct exterior access in accordance with CFC Section 916.3. The riser rooms will be maintained and provided with necessary 871
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HVAC equipment to maintain the temperature of the room between 40 degrees - 100 degrees Fahrenheit. Permanent lighting with backup power will be provided, if not already provided.

The new sprinkler system will be modified as necessary to provide the minimum design criteria noted above and maintained to ensure proper function.

Signage that will identify the riser rooms will be maintained on the exterior door of the room. And on the exterior doors leading to the area being discussed.

Knox Key Access
Where access to or within a structure or an area is restricted because of secured openings or where immediate access is necessary for lifesaving or fire-fighting purposes, a key box will be installed by Catt Road, LLC in an approved location. The key box will be of an approved type and will contain keys to gain necessary access as required by the fire code official per the City of Wildomar Fire Code.

All required exterior doors will remain operable for emergency access by firefighters. Eliminating the function of any exterior doors will require prior approval that cannot be granted in every circumstance, and where allowed, the door must be marked with a sign stating, “THIS DOOR BLOCKED”.

Rooms containing fire protection equipment (fire alarm panels, fire sprinkler valves, etc.), controls for air- conditioning equipment, utility equipment for gas or electrical service, and rooms containing hazardous materials will require identifying signage to aid firefighters.

New Knox Boxes will be provided outside of the riser rooms and the main entry and will be maintained with keys to allow Fire Department Access.

Facility Fire Extinguishers
Catt Road, LLC employees assigned firefighting duties will be trained by a qualified person(s) to know the locations and proper use of portable fire extinguishers or other manual fire-fighting equipment and the protective clothing or equipment required for its safe and proper use. Portable Fire extinguishers will have a rating of not less than 2- A or 2-A10 BC will be provided within 75 feet travel distance to all portions of the building on each floor (see diagram), also for any electrical room portable fire extinguishers with a rating not less than 10BC will be provided. All installation of Fire Extinguishers will comply with CBC Section 906. All Fire Extinguishers will have proper signage as to location, they will be place on hangers at a height of no greater than 5 feet and no lower than 3 1⁄2 feet and will be located in areas that will be free of storage and access will be continually maintained. 872
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7.2.3 HVAC System
Catt Road, LLC will have a complete HVAC air purification system which is typically used in high-grade hospitals and surgical facilities, to ensure that the odor of cannabis will not emanate beyond the walls of the building. The system will use a two-phase filtration and odor neutralization system consisting of carbon filters, known as “scrubbers”. This will be followed by a 100% organic zone-infused air system for eliminating cannabis odors effectively. Carbon filters use activated carbon to chemically absorb smells and other impurities from the air that is pushed or pulled through the filter. The system is designed to actually pull the odor out of the air and then neutralize any odor that passes through filters. HVAC systems will be cleaned by an outside contractor bi-annually.

7.2.4 Alarm System
Catt Road, LLC will have installed a new manual fire alarm system that activates the occupant notification system in accordance with CBC 907.4 and 907.2.5. The system is capable of voice evacuation system using speaker strobes. In addition, an automatic smoke/carbon monoxide detection system will also be installed to ensure the safety of the occupants of the building. A dedicated space (approved by Fire Department) will be used to install a Matrix and Graphic annunciator in order to make it simpler for Firefighters to detect the area of the fire in the shortest possible time. The Fire/Alarm System Monitoring will be contracted to:

ADT Alarm Monitoring Services, (951) 824-7205 1120 Palmyrita Ave, Riverside, CA 92507.

With the ADT Mobile App, notifications are immediately sent to authorized users as well as authorities in the event of a fire. The mobile app further allows any authorized user to remotely shut off the HVAC system from the app to help minimize fire spread.

7.2.5 Emergency Protocols
Accident and Reporting Procedures
Upon receipt of information regarding a fire or other emergency, the Chief Operation Officer and/or his designated employee will verbally report said emergency to the occupants of the building and direct the occupants to the designated assembly area. Subject building is not equipped with a “private mode alarm system”.

In the event an emergency requiring a “defend in place” response occurs, all window and door openings will be secured, and the buildings HVAC system will be deactivated. The occupants of the building will be directed to stay inside until said emergency has been mitigated and an all clear has been declared by the police and fire departments.

Upon receipt of a report of fire or other emergency that requires the building to be evacuated, the Chief Operation Officer and/or his designated employee will verbally announce the emergency to the occupants and begin a safe and timely evacuation of the building, the Chief Operation Officer and/or his designated employee will ensure that the building has been completely evacuated, including those individuals who need evacuation assistance, and direct occupants to the designated assembly area. 873
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Once all are assembled, the Chief Operation Officer and/or his designated employee will perform an accountability check of all occupants.

Written and Physical Mechanisms in Place to Deal with Fire A copy of a written “Fire Emergency Procedures” document will be maintained on the premises in both the retail area and managers office. Catt Road, LLC will ensure that the document is clearly identified as “Fire Emergency Procedures” and kept in an accessible location at all times.

The “Fire Emergency Procedures” document shall include the following Step by Step Process language:

1. In the event of a fire emergency, the Chief Operation Officer or his/her designated employee(s) shall call 9-1-1 to report the fire incident.

2. The Chief Operation Officer or his/her designated employee(s) shall direct the occupants of the building to the nearest exit and to the predesignated assembly location which will be in the parking lot north of the building.

3. If safe to do so, the Chief Operation Officer will utilize the onsite portable fire extinguishers to suppress the fire. If the fire cannot be suppressed or contained, the Chief Operation Officer and Catt Road, LLC employees shall vacate the premises and alert the surrounding businesses of the fire.

4. Upon arrival to the predesignated assembly location, the Chief Operation Officer shall account for all occupants of the Catt Road, LLC facility and render first aid, as necessary.

5. Upon termination of the incident, the operations manager shall interface with the local fire department to determine how the fire started and what precautionary measures should be taken to prevent future fires.

Emergency Plans and Evacuation Drills
The reporting of emergencies, coordination with emergency response forces, emergency plans, and procedures for managing or responding to emergencies will comply with the provisions of the City of Wildomar Fire Code.

Emergency evacuation drills complying with provisions of this section will be conducted by Catt Road, LLC at least annually for facilities that have been identified as a Group F occupancy as defined in the City of Wildomar Fire Code or when required by the fire code official. Drills shall be designed as described in the City of Wildomar Fire Code.

Evacuation Routes
In the event of a building evacuation, the Chief Operation Officer will direct the occupants of the building to the closest exit and assemble in the designated safety zones. Once the evacuated occupants are assembled in the designated assembly area, the Chief Operation Officer, or his designated employees, will confirm that all building occupants are accounted for.

All Exit Doors (except the main entry door- which will be staffed by security personnel) will be alarmed so that no unauthorized entrance or exiting of the building can take place. Access controlled doors will have exiting hardware designed so that they will automatically unlock when an Alarm is activated so 874
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that occupants may exit from the building during an emergency incident. Additionally. All exit passages will meet all American with Disabilities Act (ADA) requirements and will have automatic door openers.

Exit signs will be in full compliance with CBC 1012. Exit signs will be connected to an emergency power system that will provide an illumination of not less than 90 minutes in case of primary power loss.

The emergency power system shall consist of storage batteries.

The primary Safety Zone will be located at the furthest point of the parking lot adjacent to the Occupancy. Catt Road, LLC will clearly mark the location with a noticeable sign that reads “Evacuation Assembly Area”.

If the occupancy is required to be evacuated for any reasons the On-Duty Manager will be responsible to provide direction to the Safety Zone during the evacuation. The evacuation location will be posted at the Exit Doors and the Managers will document who was in the facility at the time of the evacuation and will utilize a specially developed recording card similar to a Triage Tag which all First Responders (Fire/EMS/Police) are familiar in reading and using.

Emergency Evacuation Procedures
In the event of an emergency threatening the safety of employees and visitors at Catt Road, LLC, a building evacuation may be necessary. All Catt Road, LLC staff should plan and discuss the following evacuation procedures:

Employee Responsibilities
Anyone that observes an emergency condition or situation should call 911. All regular staff will direct any temporary employees, contractors, truck drivers, or other visitors to the proper exits and routes to the meeting places.
• When evacuation of the building is required, employees should take the proper evacuation routes, which are the shortest routes to the outside of the building. • Enact safety procedures unique to each area of the building. • Plan for two escape routes, since one exit might be blocked by fire, or other obstructions.

Proceed around the perimeters of the main building complex to the designated “Assembly Area”.

Chief Operation Officer Responsibilities
• The Chief Operation Officer will do a sweep of the building prior to exiting the building to ensure that all personnel have safely evacuated.
• The Chief Operation Officer will confirm all perimeter doors are closed and locked, precluding unauthorized and unsafe entry by others.
• The Chief Operation Officer will confirm that any occupant with a disability is safely assisted or removed from the building and taken to the Assembly Area. 875
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Assembly Areas
Primary Assembly Area: The employee north parking lot (or other designated area) for all evacuees. (see Site/Facility Plan)
Secondary Assembly Area: In the event the Primary Assembly Area is compromised, evacuees will be directed to assemble at a safe location and distance west of the building at the entrance to the property.

Upon arriving to the Assembly Area, immediately report to the Chief Operation Officer who will:
• Cross check the “Emergency Evacuation Accountability Sheet” as well as the “Visitor Sign in Sheet” noting if all building occupants are accounted for. • Write in the names of any visitors, temporary associates, or new employees that are not on the list.
• Provide first aid assistance to anyone who was injured during the evacuation. • Monitor the incident and communicate with both the evacuees and emergency response personnel and await further direction before allowing the evacuees to leave the premises or reenter the premises.

Emergency Drills will be performed twice yearly. A designated person will time the evacuation and email each department head to see how they feel the drill went. Catt Road, LLC will maintain a log of each emergency drill performed by completing the below “Emergency Evacuation Drill” form (see below). These forms in their entirety will be made available to the City of Wildomar Fire Department upon request.
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7.3 Occupancy Classification
Based on the Use and Occupancy Classifications Listed in Chapter 3 of the International Building Code (IBC), and International Fire Code (IFC), the Catt Road, LLC facility will seek Mercantile Group M Use and Occupancy.

The Catt Road, LLC project will be an adult-use retail cannabis facility within a single-story commercial building. The project will consist of the development of a new facility located at 23825 Catt Road, Wildomar, CA 92025
Catt Road, LLC intends to build a 3,936 square foot facility using the latest of technologies and state of the art materials offering 3,936 square feet of retail space. The remaining space will be utilized for storage, secure delivery, and other administrative purposes required for the retail operation. Complete building plans for the facility will be submitted to the Wildomar Building and Safety Department and will be required to meet all CBC (California Building Code) regulations. Every aspect of the building has been extensively studied so that it will be in compliance with the required guidelines and Catt Road, LLC plan is to adhere to the most restrictive requirements to ensure the safety of the public. General plans for the facility can be viewed below.

7.4 Hazard Communication
As Catt Road, LLC is a retail sales cannabis facility, hazardous gases will not be used or stored. Therefore, gas monitoring equipment will not be required or installed at this location. Other than the required fire and life safety construction requirements required by code at the time of construction (i.e. fire rated walls, fire rated corridors, doors, and door assemblies) there are no special “safety features” in place.

Chemicals stored at Catt Road, LLC will be limited to small quantities (below reportable quantities) of basic household cleaning supplies which may include:
• Bleach Wipes.
• Disinfectants.
• Dish Soap.
• Scouring Powder.
• Window Cleaner.
• Detergents.
• Bug spray.
• Hand Soap.

The above products will be stored in an approved cabinet in the either the restroom or break area.

Catt Road, LLC follow the guidelines provided in IFC Section 407 and ensure the appropriate paperwork made accessible to the fire code official for all hazardous or potentially hazardous materials on stored on the premises. Additionally, IFC Sections: 5001.3 - 5001.6.3 will be consulted. Catt Road, LLC will ensure responders are provided the information of the hazardous chemicals that is on the property.

Should Catt Road, LLC have any hazardous materials on the premises, the following policies will be strictly enforced:
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• Material Safety Data Sheets (MSDS) must be on property and made easily accessible. • Containers and/or packages related to hazardous materials must be properly labeled and warning signage must be properly displayed and easily visible. • All persons must be trained on what to do in the event of an emergency involving hazardous material on the property.

7.4.1 Written and Physical mechanisms in place to deal with Hazardous Materials/Inhalation Procedures
A copy of a written “Hazardous Materials/Inhalation Procedures” document will be maintained on premises in both the retail area and managers office. Said document shall be clearly identified as “Hazardous Materials/Inhalation Procedures” and kept in an accessible location at all times.

The “Hazardous Materials/Inhalation Procedures” document shall include the following Step by Step Process language:

1. In the event of a Hazardous Materials/Inhalation incident, (i.e. significant spillage of cleaning products, hazardous gas produced resulting from mixing of incompatible cleaning products) the Chief Operation Officer or his/her designated employee(s) shall call 9-1-1 to report the incident.

2. The Chief Operation Officer or his/her designated employee(s) shall direct the occupants of the building to the nearest exit and to the predesignated assembly location which is in the parking lot north of the building.

3. If safe to do so, the Chief Operation Officer will utilize the onsite hazmat absorbent pad or mat to absorb and control the spill. If the spill cannot be contained, the Chief Operation Officer and Catt Road, LLC employees shall vacate the premises and alert the surrounding businesses of the chemical incident.

4. Upon arrival to the predesignated assembly location, the Chief Operation Officer shall account for all occupants of the Catt Road, LLC facility and render first aid, as necessary.

5. If an employee has come inContact with a hazardous material (i.e. splashed in eyes, on skin or clothing) the Chief Operation Officer or his/her designated employee shall have the victim remove the contaminated clothing and flush the affected area with water.

Upon termination of the incident, the operations manager shall interface with the local fire department to determine how the incident occurred and what precautionary measures should be taken to prevent future hazardous
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8. Safety and Security Plan

8.1 Security Summary
Catt Road, LLC takes its responsibility of security and safety seriously and as an experienced operator will ensure its security plan is superior to industry best practices and is effective at providing the ultimate level of safety for its employees, and the community of Wildomar. Catt Road, LLC has designed a security system that brings the best security practices from high-risk industries that creates a comprehensive plan that not only addresses each core aspect of its operation, but also are compliant with all local, county, and state government-mandated security requirements. Catt Road, LLC will regularly monitor its security plan to ensure effectiveness and revise as needed. All revisions will be coordinated in parallel with reviews with local law enforcement officials, and an independent third-party review with a licensed private security company.

Catt Road, LLC will implement strict security protocols that address all risks associated with unauthorized entry, theft, employee safety, and community safety. These measures, detailed below, will describe the installation, and use of an effective, industry leading video surveillance system, alarm system, and access control system. This Security Plan has been provided by Safe and Sound Security, one of California’s Premiere custom security Systems.
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8.2 Video Surveillance System
Surveillance cameras will cover the entire perimeter of the Catt Road, LLC facility, a minimum of 20 feet from all entrances and exits, point of sale areas, internal and external areas where diversion of cannabis could potentially occur, and all limited-access areas.

Catt Road, LLC asserts that it will comply with the security requirements outlined in 188 WMC §

5.76.110(Q)(1) and ensure that the facility is well equipped with a video surveillance system that meets all of the following requirements:

1. Security cameras and digital storage of recordings will be maintained in good condition and used in an on- going manner, twenty-four hours per day, seven days per week.

2. The security system will maintain at least 90 days of digitally recorded video for each security camera in the licensed premises. Security footage will be stored in an MPEG4, MJPEG, H.264, or another format approved by the local licensing authority in writing.

3. Security cameras will provide adequate and sufficient coverage for the facility, which will include, but need to be limited to, all limited access areas, all areas of ingress and egress, point of sale, the public areas, storage areas, and any other areas as required by this 188 WMC § and the MAUCRSA.

4. The video surveillance system will be equipped with a failure notification system that provides prompt notification to the manager of record of Catt Road, LLC premises of any surveillance interruption or complete failure of the surveillance system that lasts longer than fifteen minutes.

5. The video surveillance system will have sufficient battery backup to support a minimum of fifteen minutes of recording in the event of a power outage.

The security camera system will have the ability to be monitored on a computer by any Catt Road, LLC employee in the position of Security Manager, CEO, COO, Operations Manager, and Security Agent.

Security Agents will utilize live video surveillance when the business is operational to randomly document license plates, physical entry threats, and other potential threats.

Digital security recordings will be backed up and securely stored in Security Room for 365 calendar days.

Please see security overlay for location.

Access to this room will only be granted to Catt Road, LLC’s Security Manager, CEO, COO, Operations Manager, and Security Agents. Pursuant to 16 CCR § 5044, if a request is made for Catt Road, LLC to provide a copy of specific surveillance recordings, Catt Road, LLC will provide a copy of the recordings to the Riverside Sheriff’s Department, Wildomar Council Officials who govern the cannabis program, The California Bureau of Cannabis Control, and any additional relevant government authorities in any form of law enforcement requests, whether it be digital or physical media, within the timeframe the authority requests.

8.2.1 Vendor
Catt Road, LLC will be contracting Safe and Sound Security for surveillance camera equipment. Safe and Sound Security is a security installer that stays on the cutting edge of technology. As the largest growing commercial security company in California, they have the experience and the expertise to help Catt 884
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Road, LLC create the most effective security plan specific to the unique needs of both the industry and the goals of the company. Catt Road, LLC will also utilize Safe and Sound Security for the installation of exterior lighting as required by the WMC ordinance. The licensed contractor license number of Safe and Sound Security is:

The Alarm Company Operator (ACO) number of Safe and Sound Security is: 6672. • Chown, Patrick Anthony
• 2300 Clayton Road, #1230
• Concord, CA, 94520-2100
• Contra Costa County

8.2.2 Locations/Angles of all Cameras
Security cameras and digital security recordings will be placed as highlighted in the Security Overlay.

Please see section 8.8 below.

8.2.3 Power Failure
Pursuant to 16 CCR § 5043, if there is any connection interruption, power failure, or other circumstance that forces Catt Road’s security camera system to cease recording for any amount of time, Catt Road, LLC’s Cannabis’s security manager and security agents will automatically be notified via an online notification.

8.3 Alarm System
The entire Catt Road, LLC facility will be a limited access area. Visitors and employees will enter the main Check- in/Lobby area.

Catt Road, LLC’s approach towards securing points of entry and exit has begun with an independent site assessment that lays out a plan of physical access securing entry and exit points, see the Security Overlay in section 8.8.

8.3.1 Equipment
With the executive team of Catt Road, LLC bringing years of experience successfully securing high value cannabis operations, Catt Road, LLC understands the extremely pertinent need for a state-of-the-art intrusion detection system to safeguard stored legal cannabis, large amounts of money, and countless additional valuable assets within the Catt Road, LLC facility.

Catt Road, LLC will have an audible interior and exterior security alarm system installed on all perimeter entry points and perimeter windows, operated, and monitored by a security company licensed by the Department of Consumer Affairs, Bureau of Security and Investigative Services in compliance with 188 WMC § 5.76.110(Q)(2).
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Catt Road, LLC will have intrusion detection sensors installed on entrance, exit, and window within the Catt Road, LLC dispensary to detect unauthorized entry. In addition, off-site state compliant 24-hour digital video recorded surveillance, armed security agents, a metal detector, metal detector wands, panic alarms, access control points, and ballistic proof walls will secure every entrance and exit of the Catt Road, LLC dispensary.

8.3.2 Vendor
Pursuant to 16 CCR § 5047, as a California Department of Consumer Affairs Bureau of Security and Investigative Services licensed alarm operator, Safe and Sound Security will be installing, maintaining, monitoring, and responding to any alerts generated by Catt Road, LLC’s alarm and panic button system.

Abiding by the definition of an alarm system pursuant to Bus. & Prof. Code § 7590.1(n), the alarm system will signal the presence of a hazard requiring urgent attention to which the police may respond.

To ensure there will be comprehensive alarm coverage in the event of an emergency, the locations alarms will be placed are highlighted in the Security Overlay provided in section 8.8.

8.3.3 Records
Upon request from the Bureau of Cannabis Control, the Riverside Sheriff’s Department, or any additional relevant government authority, Catt Road, LLC will provide any records related to the alarm system’s operations, maintenance, and activity with 24 hours of the request.

8.4 Access Control
Catt Road, LLC will install access control systems at the point of entry for all restricted areas as means to prevent theft and diversion of cannabis products. Catt Road, LLC will again utilize the professionals of Safe and Sound Security for the installation of the access control system. The system installed will provide the following to the Catt Road, LLC team:

1. Continuous monitoring and tracking of entries and exits. No one gains access without proper authorization. An alert will sound when unauthorized access is attempted.

2. Extensive audit trail. This detailed information shows who was where, at what times, allowing you to better manage employee access.

3. Remote access if desired. Authorized personnel can make system changes and review audit trails from wherever they are.

To prevent unauthorized entry into limited-access areas, Catt Road, LLC will implement the following measures:

1. Posting signage at each entrance and exit of limited-access areas stating: “DO NOT ENTER - Limited-access area. Access limited to licensed personnel and authorized escorted visitors.”

2. Positioning security cameras to ensure comprehensive coverage of all entrances and exits of limited-access areas.

3. Training Catt Road, LLC security agents to not allow any individuals into limited-access areas with the exception of specifically authorized Catt Road, LLC employees, and visitors.

4. Catt Road, LLC will install sensors at each entry and exit of each limited-access area. 886
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8.4.1 Employee Badges
Pursuant to 16 CCR § 5043 Catt Road, LLC will provide all employees with security badges that must be worn at all times while engaging in Commercial Cannabis Activity. The employee badge for the: CoPresidents, COO, CEO, Security Manager, Operations Manager, and Inventory Control Agents will include the following:

1. The Catt Road, LLC “doing business as” and license number

2. The employee’s first name

3. The employee number uniquely assigned to the employee for identification purposes

4. A color photograph of the employee that is at least 1 inch in width and 1.5 inches in height

5. Lamination
The nameplate for Security Agents will be:

1. A nameplate that is at least 4 inches in width and 2 inches in height, with the first and last names of the security agent, and the word “SECURITY” at least three fourths inches high

2. Located at the chest level of the security agent
All employee badges will be linked into Catt Road, LLC’s access control system and only employees that require access to limited and/or restricted areas will be granted so. Access control granted to each employee systematically and will only be modified as needed by the General Manager

8.4.2 Electronic Verification System
Ensuring due diligence is done on the identity, especially age, of Catt Road, LLC customers not only ensures the integrity of Catt Road, LLC’s operations, but the safety of the community of Wildomar. With the proliferation of falsified identification, companies selling age-restricted items cannot adequately verify identification by merely visually inspecting a customer’s identification.

Vendor
Catt Road, LLC will utilize Cova Cannabis Dispensary Point of Sale Software to facilitate all electronic identification verification, point of sale transactions, and data. Catt Road, LLC has selected COVA for their diligent and effective approach in regard to cyber security best practices, including: SSL encryption for all data utilized for each transaction both for all processing data and the backup thereof, and highly regarded third party cyber security certifications such as PCI-DSS Level 1.

Equipment
The specific equipment utilized to run the Cova Cannabis identification scan software will be a Socket Mobile CHS 7Ci 1D Imager Barcode Scanner.
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Identification and Recordkeeping
To establish and operate a secure, successful legal cannabis business, heavy vetting must not only be conducted on potential employees and stakeholders, but to any potential vendor and individual who will access limited-access areas of the facility. Additionally, Catt Road, LLC will capture the following information and ensure it is digitally recorded.

Identification will be digitally verified through the Cova identity verification system which will then record name, date of entering, company, reason for entering the limited-access area, and times they entered and exited. These records will be securely backed up for a minimum of 365 calendar days.

8.5 Signage
In accordance with 188 WMC § 5.76.110(I), On-site signage for Catt Road, LLC’s business that is viewable from the exterior of the facility will comply with all local signage laws applicable to the licensed premises, including Chapters 17.251 and 17.254 of the WMC code. Signage will not be designed to appeal to children, or contain any false or misleading statements, or make any misrepresentations. Catt Road, LLC will not advertise in a manner intended to encourage persons under twenty-one years of age to consume cannabis or cannabis products. Additionally, Catt Road, LLC will not make any claims that a product is safe because it is tested. All advertisements, including off-site advertising signs, will comply with 188 WMC § 15 of MAUCRSA.

A sign will be posted in a conspicuous place near each point of public access which will be not less than twelve inches wide and twelve inches long, composed of letters not less than one inch in height, stating "All Activities Monitored by Video Camera."
In accordance with 16 CCR § 5042, all limited access areas will be clearly identified by the posting of a sign which shall be not less than twelve inches wide and twelve inches long, composed of letters not less than one-half inch in height, which will state, "Limited Access Area—Authorized Personnel Only." Additionally, in compliance with 188 WMC § 5.76.110(G), Smoking, vaporizing, ingesting, or otherwise consuming cannabis and cannabis products at Catt Road, LLC’s premises will be strictly prohibited. This policy will be enforced anywhere on the premises including the actual building, as well as any accessory structures, common areas and parking areas. A sign will be posted at each entrance of the premises that clearly and legibly states, "Smoking, vaporizing, ingesting, or otherwise consuming cannabis or cannabis products on these premises or in their vicinity is prohibited and a violation of the Wildomar Municipal Code."
In compliance with 188 WMC § 5.76.110(K), Catt Road, LLC will display a copy of its local license in a conspicuous place at or near the entrance to the facility.

Finally, and pursuant to 16 CCR § 5031, Catt Road, LLC will post a 14”x10” sign near the entrance that states “Persons under twenty-one years of age are not permitted on these premises”. 888
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8.6 Lighting
In compliance with 188 WMC § 5.76.110(Q)(4), Catt Road, LLC will ensure all facility entrance(s) and all window areas will be illuminated during evening hours. Catt Road, LLC will comply with the city's lighting standards regarding fixture type, wattage, illumination levels, and shielding. In compliance of 188 WMC § 8.64.140 of the WMC, Catt Road, LLC will ensure that the minimum source efficacy to be used for light fixtures used in public right-of-way illumination will be 60 lumens per watt.

Catt Road, LLC will utilize the expertise of Safe and Sound Security for the installation of superior lighting that meet the above criteria. Safe and Sound Security will be installing 2500K LED lights to the exterior of the facility. LED lights, and specifically those at a temperature of 2500K, have a drastically lower amount of glare compared to a CFL or Incandescent light which maximizes the effectiveness of the facilities surveillance system.

To ensure there is a compromise between providing sufficient light to customers, employees while ensuring all exterior portions of the building and the property are visible to Catt Road, LLC’s security monitoring system, lighting will be placed as highlighted in Security Overlay provided in section 8.8.

8.7 COMMERCIAL GRADE LOCKS
In compliance with 188 WMC § 5.76.110(Q)(5), Catt Road, LLC will ensure all points of ingress and egress to the premises are reinforced with commercial-grade, nonresidential door locks and window locks.

Pursuant to 16 CCR § 5043, Catt Road, LLC will be utilizing locks on all entrances and exits that are not solely controlled electrical components. Therefore, a power failure will not open a vulnerability pertaining to accessing the Catt Road, LLC dispensary.

8.8 NOTIFICATION OF LOCAL LICENSING AUTHORITY AND LAW

ENFORCEMENT
Pursuant to 188 WMC § 5.76.110(Q)(6), Catt Road, LLC will notify the local licensing authority and the appropriate law enforcement authorities within twenty-four hours after discovering any of the following:
• Significant discrepancies identified during inventory; Pursuant to 16 CCR § 5034, a significant discrepancy is defined as three percent (3%) or greater difference between the actual inventory compared to records pertaining to the inventory of average monthly sales. • Diversion, theft, loss, or any criminal activity involving the retailer or any employee or agent of the retailer;
• The loss or unauthorized alteration of records related to cannabis, cannabis patients, primary caregivers, or retailer employees or agents; or
• Any other breach of security.

Pursuant to 16 CCR § 5036, the Security Manager will contact the Riverside Sheriff’s Department, and will complete a Notification and Request Form (BCC-LIC-027) to notify the Bureau of Cannabis Control, within 24 hours of discovering the discrepancy.
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8.9.1 Operational Security
In addition to systematic security, Catt Road, LLC will create operational roles that ensure safety is integrated into day-to-day activities. Members of all four employee groups (CEO, Security Manager, Operations Managers, Retail Sales Associates, Inventory Control Agents), and additionally a minimum of two Security Agents, will be present for all operating hours.

8.9.1.2 Roles and Responsibilities
The Chief Executive Officer (CEO) of Catt Road, LLC will hold the following responsibilities pertaining to security:

1. Facilitating Catt Road, LLC Security Policy training.

2. Responding to emergencies, including, but not limited to, violence, emergencies as defined by the Emergency Action and Fire Prevention Plan, weapons in the facility, and breach of limitedaccess areas.

3. Responding to incidents pertaining to the Catt Road, LLC Physical Altercation, Weapon Incident, Employee Firearm, Contraband, and Counterfeit Money policies.

4. Possessing the knowledge of how to operate CCTV camera footage and recover specific CCTV recordings.

5. Preventing the hiring of persons under the age of 21 in accordance with 188 WMC §

5.76.110(D).

The Security Manager of Catt Road, LLC will ensure smooth operation of all security equipment and security agents, as well as be the designated security representative between Catt Road, LLC and law enforcement.

The four Operations Managers will hold the following responsibilities pertaining to security:

1. Responding to emergencies, including, but not limited to, violence, emergencies as defined by the Emergency Action and Fire Prevention Plan, weapons in the facility, and breach of limitedaccess areas.

2. Responding to incidents pertaining to the Catt Road, LLC Physical Altercation, Weapon Incident, Employee Firearm, Contraband, and Counterfeit Money policies.

3. Possessing the knowledge of how to operate CCTV camera footage and recover specific CCTV recordings.

Dispatch will hold the following responsibilities pertaining to security:

1. Responding to emergencies, including, but not limited to, violence, emergencies as defined by the Emergency Action and Fire Prevention Plan, weapons in the facility, and breach of limitedaccess areas.

2. Responding to incidents pertaining to the Catt Road, LLC Physical Altercation, Weapon Incident, Employee Firearm, Contraband, and Counterfeit Money policies.

3. Preventing, identifying, and reporting illegal public consumption and distribution of cannabis products.

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Inventory Control Agents will hold the following responsibilities pertaining to security:

1. Responding to emergencies, including, but not limited to, violence, emergencies as defined by the Emergency Action and Fire Prevention Plan, weapons in the facility, and breach of limitedaccess areas.

2. Responding to incidents pertaining to the Catt Road, LLC Physical Altercation, Weapon Incident, Employee Firearm, Contraband, and Counterfeit Money policies.

3. Identifying and reporting inventory discrepancies.

Security Agents will hold the following responsibilities pertaining to security:

1. Responding to emergencies, including, but not limited to, violence, emergencies as defined by the Emergency Action and Fire Prevention Plan, weapons in the facility, and breach of limitedaccess areas.

2. Responding to incidents pertaining to the Catt Road, LLC Security Exclusion, Physical Restraint, Physical Altercation, Weapon Incident, Employee Firearm, Contraband, and Counterfeit Money policies.

3. Possessing the knowledge of how to operate CCTV camera footage and recover specific CCTV recordings.

4. Maintaining security around the exterior of the Catt Road, LLC dispensary and the perimeter of the premises.

5. Monitoring the consistent operation of Catt Road, LLC security equipment, including, but not limited to, metal detectors, hand wands, motion detectors, CCTV cameras, panic alarms, sensors, and safes

6. Escorting individuals off of the property of Catt Road, LLC if they are on the property for a prolonged period of time, and not directly engaged in the commercial operations of Catt Road, LLC.

8.9.1.3 Security Guard Requirements
Pursuant to 16 CCR § 5045, as a licensed security guard by the Bureau of Security and Investigative Services, Fidelity Security Solutions will be contracted to provide armed security at the Catt Road, LLC dispensary, complying with Chapters 11.4 and 11.5 of Division 3 of the Business and Professions Code. • Private Patrol Operator (PPO) License – #120596
• Motor Carrier Permit (MCP) – #CA528670
• USDOT (Federal Transport) – #3142025
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8.9.1.4 Security Guards and Agents
Every individual who enters the property of Catt Road, LLC will be assessed as a potential threat, through on-site and off-site security cameras monitored by Catt Road, LLC’s security agents. Pursuant to 16 CCR § 5044, these camera recordings will be recorded and digitally backed up for a minimum of 365 days. The interior and exterior of the building, and the perimeter of Catt Road, LLC premises will be patrolled by 1 armed Private Security Company guard to prevent loitering, and potential crime including but not limited to unlawful distribution, and consumption of cannabis in a public area. Security guards will be present during all normal business hours as well as 1 hour before and after normal business hours. This additional time will be provided additional security for employees who report in early or stay late to perform opening and closing procedures. Security guards will always escort employees entering or exiting the premises during non-daylight hours.

8.9.1.5 Customer Safety
Customer safety is extremely important to the Catt Road, LLC team. Catt Road, LLC will create a safe environment for its patrons through employing an elaborate security plan as defined above and also creating a clean and safe environment.

In accordance with 188 WMC § 5.76.110(P), Catt Road, LLC will ensure that its facility is maintained in a sanitary manner and all activities are conducted in a sanitary manner. Catt Road, LLC will ensure the following conditions exist within the facility:

1. Adequate and sufficient access to bathrooms and hand-washing facilities with running water at a suitable temperature.

2. Hand-washing stations located where good sanitary practices require workers to wash or sanitize their hands and provide effective hand-cleaning and sanitizing preparations and sanitary towel service or suitable drying devices.

3. All workers that engage in the dispensing of edible cannabis products comply with the provisions of all relevant state and local laws regarding the preparation, distribution, and sale of food.

To maximize safety for the patrons, Catt Road, LLC will follow strict protocols of admittance, minimize the number of customers in the store at one time, and ensure that customers do not linger anywhere on the premises after business is concluded. These strictly enforced policies will minimize risks to customers as well as employees and the surrounding community.

8.9.1.6 Business Safety
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8.9.2 Inventory Recordkeeping and Auditing
Pursuant to 16 CCR § 5423 and 16 CCR § 5424, for each inventory shipment, the following points will be digitally recorded and securely backed up for a minimum of 365 days:

1. The time the delivery has been scheduled

2. The time the delivery is scheduled for

3. The time the delivery occurs

4. A description of each cannabis product received

5. An exact quantity of each item received

6. Any expiration dates provided on cannabis products

7. The name, license number, and contact information of the licensed distributor or licensed microbusiness who has transported the inventory to Catt Road, LLC

8. The name and identification of any employees of the licensed distributor or licensed microbusiness who are at the Catt Road, LLC facility at the time of inventory delivery

9. The total price of each incoming inventory item

10. The name of each employee recording the aforementioned information.

The collection of these data points will provide a comprehensive review on each respective distributor’s expected delivery times, methods, and personnel, to make the process of receiving inventory as seamless as possible. These records will be audited nightly by Catt Road, LLC Operations Managers and monthly by Catt Road, LLC’s COO.

8.9.3 Limited Cash Operation
All cash inventory and storage shall be monitored by 24-hour security cameras. Cash payments will be directly deposited into a drop slot safe, limiting the amount of cash circulating at the dispensary. The money will be removed from the safe and counted daily in the walk-in safe room.

Access to the dispensary will be limited to employees during all safe transfers. Two employees are required to be present during this time.

The cash will then proceed to the appropriate bank in a locked container each day. Access to the container will require both an electronic keypad password and a passcode.

Catt Road, LLC has selected Dunbar to transport cash from the facility location to the bank. Pick-ups will occur on Monday, Wednesday, and Friday. Cash will be securely stored in the vault until the Dunbar driver arrives.

8.9.4 Employee Safety and Policy
Physical or Verbal Harassment
Catt Road, LLC has a zero-tolerance policy towards all workplace harassment, violence, threats, and disorderly behavior, whether it is verbal or physical. This includes verbal or physical altercations on the property of Catt Road, LLC, in addition to any location where Catt Road, LLC is conducting business including but not limited to: partner business locations, trade shows, and company event venues. 894
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Employees and security agents are obligated to expeditiously report all threats, harassment, violence, and disorderly behavior to the Catt Road, LLC Security Manager, who will contact relevant law enforcement agencies if it is required. For an employee or member of security agents to report a physical altercation, the altercation must be witnessed in person or through security monitoring equipment including but not limited to Catt Road, LLC security cameras.

Weapons/Firearms
Weapons of any type are prohibited on company property without authorization from the Security Manager. The Security Manager of Catt Road, LLC is the sole individual authorized to determine which employees and security agents are authorized to possess a firearm while on Catt Road, LLC property.

This will only be authorized if it is determined that allowing the individual possessing a firearm on company premises is necessary to secure the safety and security of the: Catt Road, LLC property, employees, customers, and the Wildomar Community.

If an employee or contracted security agents has not been authorized by the Security Manager to carry a firearm, the individual may not at any time possess any firearm while on company property, in addition to any location where Catt Road, LLC is conducting business including but not limited to: partner business locations, trade shows, and company event venues. Violation of this rule will result in immediate termination.

For any individual who is not a contracted security agent or who has not obtained authorization from the Catt Road, LLC Security Manager, weapons strictly prohibited from the Catt Road, LLC facility including, but not limited to:

1. Any device designed or commonly used to inflict injury or that could be interpreted as a weapon

2. Any firearm of any nature

3. A gun that discharges pellets, BBs

4. A device that discharges high amounts of electricity, commonly known as a stun gun

5. Any explosive, including firearm ammunition

6. Any knife

7. Any smoke or gas bomb

8. Any longbow, crossbow, recurve bow, or compound bow and arrows An individual who is found possessing any of the aforementioned object(s) will immediately be restrained, identified, and reported to the Riverside Sheriff’s Department, or additional applicable law enforcement by security agents.

Police Notification
The reasons Catt Road, LLC will contact the Riverside Sheriff’s Department include but are not limited to:

1. Any incident as defined by the Weapon Incident Policy

2. Any crimes, as defined by the California Penal Code, committed on the property of 14 Bundy Canyon Road

3. Inventory discrepancies found, as pursuant to 16 CCR § 5034 and 16 CCR § 5036 895
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If and when any of these issues arise, Catt Road, LLC’s Security Manager will call the Riverside Sheriff’s Department’s number at (800) 950-2444
Emergency Contact Information
• Emergency - 911
• Riverside County Sheriff - 24-hour non-emergency Dispatch: 800-950-2444 or 951-776-1099 • California Highway Patrol - (800) 835-5247

8.9.5 Earthquake Emergency Protocol
In the event of an earthquake, Catt Road, LLC employees are instructed to:

If you are indoors:
a. Remain indoors and obtain shelter under a table or door frame that has a strong foundation. b. Stay away from windows, ceiling fixtures, items that may become unstable. c. If it is safe to do so, evacuate the building and relocate to the pre-arranged Assembly Area in the parking lot.

If you are outdoors:
a. Stay away from buildings, electrical infrastructure or equipment, and flammable infrastructure or equipment.
b. Relocate to the pre-arranged Assembly Area located in the parking lot.

8.9.6 Robbery Emergency Protocol
In the event of an armed intruder attempting to rob the Catt Road, LLC dispensary, Catt Road, LLC employees (not including contracted security agents) are instructed to do the following during the incident:

1. Assume any firearms the offender possesses are loaded.

2. Comply with instructions given by the offender, and answer all questions asked.

3. Do not attempt to disarm the offender.

4. Make mental notes on the appearance, clothing, and any items the offender touches when in the cannabis facility.

5. If you determine it is safe and viable to do so, initiate the panic alarm.

Immediately after the incident, Catt Road, LLC employees are instructed to do the following:

1. Halt all business operations and ensure limited-access areas are secure.

2. Notify the Riverside County Sheriff’s Department.

3. Notify the Catt Road, LLC Safety Coordinator, Security Manager, and all senior staff.

4. Attend to the needs of any: staff, employees, customers, and visitors that were affected by the incident.
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8.9.7 Safety Coordinator Responsibilities
The safety coordinator is responsible for the planning, evaluation, and execution of the EAFPP and should perform the following duties:

1. Review and update the EAFPP annually or as needed.

2. Conduct annual facility evacuation drills. Know the location of all fire extinguishers; pull alarms, and first aid kits. Ensure evacuation routes are posted and walkways remain clear at all times.

3. When an emergency alarm has been sounded, systematically check all areas to assure everyone has been evacuated.

4. If needed, post assistants along the evacuation route to guide people to the Assembly Area.

5. Assist mobility impaired persons to evacuate safely.

6. Keep people calm and informed.

7. Report to the Co-Presidents, Security Manager, or the on-scene Incident Commander.

8. If ordered by on-scene Incident Commander, move all people to the Assembly Area and inform people when it is safe to re-enter buildings. After a major earthquake, a person may not reenter buildings until cleared by a qualified building inspector.

9. After the emergency incident has concluded, the Safety Coordinator will distribute and collect After Action Report Forms completed by employees and determine potential improvements for the EAFPP.

8.9.8 Emergency Roll Call Sheet
The Safety Coordinator is responsible for maintaining a current list of personnel at the facility on this form, retrieving this form during an emergency, and tracking where people are during an emergency. 897
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8.9.9 Emergency Contact Information
• Emergency - 911
• Riverside County Sheriff - 24-hour non-emergency Dispatch: 800-950-2444 or 951-776-1099 • California Highway Patrol - (800) 835-5247
After Action Report Form
The Safety Coordinator is responsible for distributing these forms after an incident has concluded, to all employees who were on Catt Road, LLC property at the time of the incident. After employees complete these forms, the Safety Coordinator will collect them, analyze the responses, and determine potential improvements to be made to the EAFPP.

8.10 Policy: Physical Altercation
Catt Road, LLC has a zero-tolerance policy towards all workplace harassment, violence, threats, and disorderly behavior, whether its verbal or physical. This includes physical or verbal altercations on the property of 23825 Catt Road, in addition to any location where Catt Road, LLC is conducting business including but not limited to: partner business locations, trade shows, and company event venues.

Employees and security agents are obligated to expeditiously report all threats, harassment, violence, and disorderly behavior to the Catt Road, LLC Security Manager or his designee, who will contact relevant law enforcement agencies if it is required. For an employee or member of security agents to report a physical altercation, the altercation must be witnessed in person or through security monitoring equipment including but not limited to Catt Road, LLC security cameras.

Emergency Contact Information
• Emergency - 911
• Riverside County Sheriff - 24-hour non-emergency Dispatch: 800-950-2444 or 951-776-1099 • California Highway Patrol - (800) 835-5247

8.11 Policy: Security Exclusion
Pursuant to 16 CCR § 5031, Catt Road, LLC will not allow any individual who is under 21 years of age to:
become an employee of Catt Road, LLC, or enter the dispensary. This will be enforced by obligating customers to digitally verify their identify as they enter the Catt Road, LLC dispensary.

8.12 Policy: Weapon Incident

1. For any individual who is not a contracted security agent or who has not obtained authorization from the Catt Road, LLC Security Manager, weapons strictly prohibited from the Catt Road, LLC include but are not limited to:
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1. Any device designed or commonly used to inflict injury or that could be interpreted as a weapon

2. Any firearm of any nature

3. A gun that discharges pellets, BBs

4. A device that discharges high amounts of electricity, commonly known as a stun gun

5. Any explosive, including firearm ammunition

6. Any knife

7. Any smoke or gas bomb

8. Any longbow, crossbow, recurve bow, or compound bow and arrows An individual who is found possessing any of the aforementioned object(s) will immediately be restrained, identified, and reported to the Riverside County Sherriff’s Department, or additional applicable law enforcement by security agents.

8.13 Policy: Employee Firearm Policy
Weapons of any type are prohibited on company property without authorization from the Security Manager. The Security Manager of Catt Road, LLC is the sole individual authorized to determine which employees and security agents are authorized to possess a firearm while on Catt Road, LLC property.

This will only be authorized if it is determined that allowing the individual possessing a firearm on company premises is necessary to secure the safety and security of the: Catt Road, LLC property, employees, customers, and the Wildomar Community.

If an employee or contracted security agents has not been authorized by the Security Manager to carry a firearm, the individual may not at any time possess any firearm while on company property, in addition to any location where Catt Road, LLC is conducting business including but not limited to: partner business locations, trade shows, and company event venues. Violation of this rule will result in immediate termination.

8.14 Policy Physical Restraint
Catt Road, LLC defines physical restraint as physically controlling one or more persons to safely inhibit their ability to commit harm to themselves or others while on the Catt Road, LLC property.

Physical restraining any individual in the Catt Road, LLC, whether it is a Catt Road, LLC employee, customer, security agents, or business partner, will only be utilized as a last recourse. First, if there is an individual spotted within the perimeter of 14 Bundy Road who is attempting to harm themselves or others, contracted security agents will first attempt to verbally diffuse the situation. If the individual(s) fail to stop endangering themselves and surrounding individuals on the property, they will be restrained by security agents. If the individual is not violating of California or federal law, they will be escorted off of the Catt Road, LLC property. If they are in violation of California or federal law, they will remain restrained until law enforcement is notified, and arrives at the Catt Road, LLC property. 899
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8.15 Policy: Contraband
Catt Road, LLC defines contraband as any of the following:

1. Alcoholic beverages, defined as pursuant to Bus. & Prof. Code § 23004

2. Any Dangerous Drug defined as pursuant to Bus. & Prof. Code § 4022

3. Unlicensed cannabis products

4. Paraphernalia related to illegal drugs or dangerous drugs If any contracted security agents or Catt Road, LLC employee suspects that an individual(s) within the perimeter of the facility possesses contraband, security agents will confront the individual, and if it is found they are in possession of Catt Road, LLC defined contraband, they will be escorted off of the property.

8.16 Policy: Counterfeit Money
As per the United States Treasury’s recommendations, if Catt Road, LLC employees have reason to suspect money they have received is counterfeit, they will: write down the time in which they received the counterfeit money, which will then be provided to the shift manager present at the time, who will obtain CCTV camera footage of the suspect’s appearance and if possible, their vehicle’s license plate number. The bill(s) suspected of being counterfeit will be secured in a plastic bag until they are received by law enforcement. After these steps have been completed, the manager on staff at the time will contact the Riverside County Sheriff’s Department provide the agencies with the currency, and copies of any intelligence gathered such as digital recordings, descriptions, or any additional information gathered on the suspect.

8.17 Policy: Training for Employees
A security policy is the foundation of maintaining secure operational management within any aspect of the legal cannabis industry. Therefore, Catt Road, LLC will utilize a security and contingency training program for all employee, manager, and stakeholder training processes. A security policy is only as effective as the managers and vendors who are teaching and implementing said policy. With Zach Lazarus providing valuable expertise from developing successful security policies within the California cannabis industry, and AEGIS Security & Investigations Inc.’s years of providing effective security protocols and services, Catt Road, LLC will bring best security practices from both the cannabis and other high-risk industries, as well as the skills and personnel to adapt and effectively respond to future security threats. Security will be maintained by ensuring the policies that are implemented within Catt Road, LLC are taught in a practical, logical manner. This will be accomplished by creating separate security clearances for the Security Manager, Retail Manager, and Security Agent. Security Agents. These sectors of employees will have differing exposure to limited-access areas.

All employee training will be conducted in-house and in-person, directed by the Security Manager and Safety Coordinator, immediately upon an applicant accepting a job offer from Catt Road, LLC. Regardless of position and stature, all employees will adhere to the policies set forth in this security policy. A complete understanding of existing and potential risks is essential for all Catt Road, LLC employees to become better stewards towards the
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community of Wildomar. The Security Manager, CEO, and COO will have an appropriate clearance level to access and operate Catt Road, LLC CCTV cameras, access all limited-access areas, and document inventory, they will be trained on these procedures and relevant equipment.

8.18 Record Keeping
Pursuant to 16 CCR § 5037, Catt Road, LLC will keep the following records related to security policy training for a minimum of seven years:

1. The names of employees who have received policy training, when they received said training, the and the name of the supervisor who provided the training. 901
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9.1 Neighborhood Compatibility Plan
Catt Road, LLC seeks to be an asset and a beneficial resource for the surrounding community. Catt Road, LLC intends to accomplish this through operating a safe and compliant retail facility that can be trusted by the community to provide safe – high quality products in the least disruptive manner possible.

Catt Road, LLC intends to create a business that aligns with the values and goals of the City and the City Culture. Catt Road, LLC believes that through commitment to implementing industry best practices within its operation and the desire to develop a state-of-the-art facility that lends to the common goals of environmental and community safety, the city can rest assured that Catt Road, LLC will diligently work to be a great fit for Wildomar. Catt Road, LLC will diligently look for ways to improve operationally and give back to the community at every opportunity. Catt Road, LLC will incentivize community members who do not use cannabis products by donating a percentage of sales to local non-profits in order to support youth recreation, arts, culture, disabled veterans, substance abuse programs, and environmental sustainability programs. In turn, community members who do not use cannabis will see the addition of Catt Road, LLC as a positive impact for the City of Wildomar.

COMMUNITY RELATIONS LIAISON
In accordance with 188 WMC § 5.76.110(M) and OCC § 11-446(a), Catt Road, LLC has hired a professional mapping service to identify all businesses and residents within 600 ft. of the facility. As part of the company efforts to proactively address issues in the community, Catt Road, LLC will provide these businesses with the name, phone number, facsimile number, and email address of the on-site community relations representative. This will allow the nearby property owners to contact Catt Road, LLC directly regarding potential issues that arise as a result of our business or patrons. Additionally, this individual will be the primary contact that the city can contact regarding operating concerns associated with the Catt Road, LLC business operations. Catt Road, LLC will report any change in their community relations designee to the city within ten calendar days.

COMMUNITY RELATIONS DESIGNEE – Alex Dos Santos
Catt Road, LLC as designated Alex Dos Santos to serve as the company’s Director of Public Relations.

Catt Road, LLC community liaison, Alex Dos Santos, will attend any and all meetings with the City Manager and/or other interested parties as deemed appropriate by the City Manager. Additionally, he will arrange and facilitate a neighborhood outreach meeting to collect feedback and concerns expressed by community members. Further public hearings will be held where Alex will provide details to the community on how any concerns will be addressed by the company.

Here, agenda topics will be to discuss costs, benefits, and other community issues arising as a result of implementation Commercial Cannabis businesses in the City. Catt Road, LLC will maintain the community liaison position and meet with the City Manager as often as deemed necessary. In addition to meeting with the City Manager the Community Relations Liaison will also do the following:
• Meet with the Police Chief regarding any security related measures or operation issues. 902
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• Build, develop, and retain strong relationships with Catt Road, LLC business neighbors and clients.
• Public Relations; creating, managing, and promoting Catt Road, LLC within the Wildomar community.
• Formulate strategic marketing initiatives to increase brand recognition and equity within region. • Identify, develop, and execute communication strategies. • Present educational materials for internal staff and any public audiences. • Resolve sensitive inquiries and/or complaints from internal staff, neighbors, and other persons within the community.
• Establish and maintain cooperative relationships with representatives of the community, participants, and public advocacy groups.
• Logging of marketing activities in CRM database.
• Attend relevant meetings and events within region as needed and/or required. • Identify potential areas for growth.
• Act as Catt Road, LLC liaison to internal and external organizations.

PROACTIVE RESPONSE TO COMPLAINTS
Catt Road, LLC has planned its operation is a way to minimize impact to the surrounding community.

Should operation drive disruption, the Catt Road, LLC will welcome the feedback so that, as a company, they are able to work to address the issues viewed as a nuisance. As such, Catt Road, LLC will provide means to collect feedback from both customers and neighbors through a couple of different means.

First, as mentioned Catt Road, LLC will distribute a designated company contact information throughout the community as an outlet for people to provide feedback on any concerns related to noise, light, odor, or traffic. Catt Road, LLC’s Director of Community Relations will provide her name, telephone number, and email address to both local city officials and all businesses and residents within 600 ft. of the facility, whom they can contact should any problems result from the operation of the business. Catt Road, LLC also sees this as an opportunity to get to know the neighbors and let the community know we care for their overall wellbeing.

Secondly, Catt Road, LLC will post a complaint form on our website. This will be utilized for collecting complaints both from the community and customers. This form will generate an email directly to the Director of Public Relations, who will review them daily. The Director of Public Relations will share all operational concerns with the Director of Operations as well as hold weekly meetings with the Catt Road, LLC team to review and discuss the complaints. Once the complaint is addressed, protocols and process documents will be revised and/or store adjustments will be made. All complaints will be recorded and kept on file and will be provided to the City of Wildomar officials upon request. Catt Road, LLC, is again, dedicated to supporting the community and will take any and all reasonable actions to minimize disruption to neighboring members of the community.

Below is an example of the complaint form we will make via the company website:
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9.2 NUISANCE PREVENTION – PROTECTION FOR NEIGHBORS AND THE

COMMUNITY

FACILITY DESIGN AND APPEARANCE
Overall, the Catt Road, LLC team has put in much effort to design a facility that aesthetically integrates into the community, explored ways we can give back to the neighborhood through volunteerism and financial contributions, manage day to day activities in a way that is not disruptive to others, and manage all possible odors that may seem offensive to others.

Catt Road, LLC will ensure that the proposed location is professionally landscaped and remains free of debris. Any sign of graffiti, litter, or destruction will be addressed immediately to prevent the facility from becoming an eye sore to the community. Pursuant to 188 WMC § 5.76.120(B), Cannabis, cannabis products and cannabis paraphernalia will not be placed in a window display or otherwise placed in a manner primarily intended for individuals outside of the premises to view the products.

SIGNAGE AND ADVERTISING
In accordance with 188 WMC § 5.76.110(I), On-site signage for Catt Road, LLC’s business that is viewable from the exterior of the facility will comply with all local signage laws applicable to the licensed premises, including Chapters 17.251 and 17.254 of the WMC code. Signage will not be designed to appeal to children, or contain any false or misleading statements, or make any misrepresentations. Catt Road, LLC will not advertise in a manner intended to encourage persons under twenty-one years of age to consume cannabis or cannabis products. Additionally, Catt Road, LLC will not make any claims that a product is safe because it is tested. All advertisements, including off-site advertising signs, will comply with 188 WMC § 15 of MAUCRSA.

FACILITY LIGHTING
In compliance with 188 WMC § 5.76.110(Q)(4), Catt Road, LLC will ensure all facility entrance(s) and all window areas will be illuminated during evening hours. Catt Road, LLC will comply with the city's lighting standards regarding fixture type, wattage, illumination levels, and shielding. In compliance of 188 WMC § 8.64.140 of the WMC, Catt Road, LLC will ensure that t While Catt Road, LLC will require outdoor lighting to ensure the effectiveness of the security equipment, the team will be mindful of the surrounding neighbors, and, by all means possible, try to maintain minimal impact of nighttime lighting that may be disruptive.

ODOR MITIGATION
The Catt Road, LLC facility will also be equipped with state-of-the-art equipment to mitigate any odors that may seem offensive to others. In compliance with 188 WMC § 17.315.080(A)(1), Catt Road, LLC will install a sufficient odor absorbing ventilation and exhaust system so that any odors generated inside the facility that is distinctive to its operation is not detected outside of the operation’s facility, anywhere on adjacent lots or public rights-of-way, on or about the exterior or interior common area walkways, 905
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hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public.

In order to control nuisances such as odors, humidity and mold, Catt Road, LLC will have the following professionally installed:
• An exhaust air filtration system with odor control that prevents internal odors from being emitted externally; and
• An air system that creates negative air pressure between the facility’s' interior and exterior so that the odors generated inside are not detectable outside.

By utilizing an efficient HVAC system that utilizes pre-filters, HEPA filters and Carbon Filters, Catt Road, LLC is confident that no odors will be detectable outside of the operation’s facility, anywhere on adjacent lots or public rights-of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public.

ON SITE CONDUCT
Finally, our management team will ensure that the traffic in and out of the facility is respectful of the neighboring members of the community. Policies will be in place that strictly prohibits loitering in or around the facility and parking lots will be regularly monitored. Additionally, in compliance with 188 WMC § 5.76.110(G), Smoking, vaporizing, ingesting, or otherwise consuming cannabis and cannabis products at Catt Road, LLC’s premises will be strictly prohibited. This policy will be enforced anywhere on the premises including the actual building, as well as any accessory structures, common areas and parking areas. A sign will be posted at each entrance of the premises that clearly and legibly states, "Smoking, vaporizing, ingesting, or otherwise consuming cannabis or cannabis products on these premises or in their vicinity is prohibited and a violation of the Wildomar Municipal Code." These efforts will work to prevent any and all noise related problems associated with people gathering on the premises. Ample on-site parking will serve to alleviate any pressures on community traffic or pedestrians.
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10. Parking Analysis Plan
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10.1 Factors to Mitigate Parking Impacts to Neighbors
Catt Road, LLC certainly wants to ensure that by adding a commercial cannabis retail facility to the Catt Road Crossings Retail Center that measures are in place to eliminate parking impacts to existing businesses in the retail center. In fact, in the experience of the CEO, neighboring businesses will actually benefit from the additional traffic created by adding a Cannabis Retail Facility to a shopping plaza. This is because new customers come to the plaza that may not have visited it previously. A customer may stop to by cannabis will then eat at one of the restaurants in the plaza, or shop at the market. It is a win-win for both businesses.

In order to mitigate the impact of parking on the neighbors in Catt Road Crossings Retail Center, Catt Road, LLC will do the following:

1. Ask customers to shop briefly during busy times during the day.

2. Ensure that there is ample staffing to quickly process customers during key times of the day. This includes lunch time and in the evening.

3. Provide information regarding the surrounding businesses to encourage shoppers at Catt Road, LLC to patronize the other businesses.

4. Post bus routes and encourage shoppers to utilize the Riverside Transit Agency (routes 8 and 23).

5. Encourage customers to ride their bikes to the store and offer on-site bicycle racks. 909
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11. Waste Disposal Plan
Catt Road, LLC has reviewed the Wildomar Municipal Code to understand the rules and requirements for handling waste generated from its facility. Catt Road, LLC asserts that all waste will be handled in accordance to 188 WMC § 5.76.110(O), Section 5054 (Destruction of Cannabis Goods Prior to Disposal) of Title 16, Division 42 of the California Code of Regulations, as well as other state and federal laws.

Cannabis waste will be stored in a locked storage area dedicated strictly to cannabis waste.

11.1 Chemical, Dangerous, and Hazardous Waste
Catt Road, LLC understands that disposal of chemical, dangerous, or hazardous waste will be conducted in a manner consistent with federal, state, and local laws, regulations, rules or other requirements. Catt Road, LLC does not intend to generate hazardous or dangerous waste and chemicals used or stored on site will be limited to those required for proper sanitation.

Catt Road, LLC will ensure that all liquid waste generated by its facility and operations are disposed of in compliance with the Public Resources Code and any other applicable state and local laws, including laws regulating “organic waste” as defined in Public Resources Code section 42649.8(c). Catt Road, LLC will dispose of nonhazardous liquids with ph levels between 6 and 10 by mixing the liquid with copious amounts of water and poured down the sewer drain. Catt Road, LLC will treat anything without the following criteria as hazardous waste and will dispose of as such. • They dissolve in water or are water-based.
• They are not a toxic waste.
• They are not a hazardous (chemical) waste
• They are not flammable.
• They are not corrosive.
• They are not reactive.

Catt Road, LLC will regularly consult with the California Department of Toxic Substance Control for a list of liquids that is considered safe to regularly dispose of and liquid chemicals considered to be a hazard to the environment.

Catt Road, LLC will look for every opportunity to reduce and manage any risk associated with hazardous waste, including solvents, chemicals, fuel, lighting, ballasts, batteries, and e-waste. Catt Road, LLC will store hazards in a sealed location at the facility until they are transferred to an appropriate hazardous waste treatment, storage, and disposal facility. Catt Road, LLC commits to looking for alternatives for hazardous material types needed for the operation of its cannabis facility, for example, Catt Road, LLC has committed to using LED lighting throughout the facility, which does not become hazardous at the end of its life.

When Catt Road, LLC finds that it is not able to feasibly avoid the use of hazardous, or potentially hazardous materials, Catt Road, LLC asserts that it will dispose of hazardous and chemical waste in a manner consistent with federal, state, and local laws.
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11.2 Cannabis Waste
If Catt Road, LLC finds that any of its cannabis or cannabis product are contaminated, recalled, or otherwise rendered unusable, Catt Road, LLC will dispose of the cannabis or cannabis product. Catt Road, LLC’s Inventory Control Specialist will promptly dispose any cannabis that was quarantined, contaminated, recalled, or unusable and products will be immediately removed from the site. Care will be taken to ensure these products are not be exposed to other products or the general public. In accordance with 16 CCR § 5054 (a), Catt Road, LLC will not dispose of cannabis goods, unless disposed of as cannabis waste, defined as waste that contains cannabis and that has been made unusable and unrecognizable.

11.2 Disposal Record
When cannabis must be disposed or destroyed, Catt Road, LLC will generate a record in COVA - POS System of the destruction or disposal. Catt Road, LLC’s Inventory Control Specialist and Retail Store Manager will weigh the cannabis or cannabis concentrate which will be disposed of, then he/she will generate an inventory record of the disposal. Pursuant to 16 CCR § 5049(b)(C)(7), the disposal record Catt Road, LLC will generate will include:

1. The name of the employee performing the destruction or disposal.

2. The reason for destruction and disposal.

3. The entity disposing of the cannabis waste.

4. The method of disposal

5. The date and time of disposal

6. The name of the agent performing the disposal
In accordance with 16 CCR § 5049(c), all waste disposal records all transactions will be entered into the track and trace system within 24 hours of occurrence.

11.2.1 Process to Render Waste Unusable – Compostable
Catt Road, LLC has prepared the following process to render waste unusable. This will occur on a weekly basis and be conducted by the Inventory Control Specialist while under video surveillance.

1. Identify products in the quarantine area ready for disposal

2. Sort Compostable and Non-Compostable Waste

3. Remove Compostable Waste from packaging

4. The Inventory Control Specialist will weigh the product and generate an inventory record in COVA - POS System

5. The marijuana is emptied into the Green Cycler
a. Compostable Mixed Waste will be mixed with the following:
i. Food waste
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ii. Yard waste
iii. Vegetable based grease or oils

6. The Inventory Control Specialist will pour an equal amount of Vegetable Oil into the Green Cycler.

For instance, if 1 ounce of marijuana is being rendered unusable, 1 ounce of Vegetable Oil will be mixed into the container

7. Using the lever on the Green Cycler, the Inventory Control Specialist will destroy the compostable cannabis waste

8. The Inventory Control Specialist will repeat this process until all quarantined items are rendered unusable.

9. Upon completion, the Inventory Control Specialist will empty the container in a biodegradable bag.

10. This bag will be placed inside the Waste Receptacle Labeled “Compostable Mixed Waste”.

11. A permitted waste company will be contacted to pick-up the waste for transport to a compost or anaerobic digester facility.

11.2.3 Process to Render Waste Unusable –Non-Compostable Catt Road, LLC has prepared the following process to render waste unusable. This will occur on a weekly basis and be conducted by the Inventory Control Specialist while under video surveillance.

1. Identify products in the quarantine area ready for disposal

2. Sort Compostable and Non-Compostable Waste

3. Remove Non-Compostable Waste from packaging

4. The Inventory Control Specialist will weigh the product and generate an inventory record in COVA - POS System

5. The Non-Compostable Waste is emptied into the Green Cycler

6. Using the lever on the Green Cycler, the Inventory Control Specialist will destroy the NonCompostable Cannabis Waste

7. The Inventory Control Specialist will repeat this process until all quarantined items are rendered unusable.

8. The Inventory Control Specialist will take shredded paper from the office and mix that with the Non- Compostable Cannabis Waste

1. Non-compostable Mixed Waste will be mixed with the following:
i. Paper waste
ii. Cardboard waste
iii. Plastic waste
iv. Soil

9. Upon completion, the combined waste will be placed into a biodegradable bag.

10. This bag will be placed inside the Waste Receptacle Labeled “Non-Compostable Mixed Waste”.

11. A permitted waste company will be contacted to pick-up the waste for transport to a landfill or incinerator.
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11.2.3 Waste Storage Receptacles
Pursuant to 16 CCR § 5054(e), cannabis waste will be secured in a receptacle or area that is restricted to Catt Road, LLC’s employees or an authorized waste hauler. Catt Road, LLC will put cannabis waste into 2 Waste Storage Receptacles, 1 for Compostable Mixed Waste and the other for Non- Compostable Mixed Waste.

The storage of will be bagged and stored in a locked 65-gallon waste containers. Waste equipment will be managed in a way that will prevent the unintentional conveyance of waste outside the storage area.

The Waste Storage Receptacle will have the following features:

1. Constructed to be easily handled for collection;

2. Constructed of rust resistant and corrosion resistant materials;

3. Equipped with a tight fit lid or cover;

4. Watertight, leak proof, insect proof and rodent proof; and

5. Clearly marked “Cannabis Waste.”

11.2.4 Cannabis Waste Storage Area
The Cannabis Waste Storage Area will located indoors to prevent contact with rainwater and be subject to routine inspection. Catt Road, LLC team will routinely clean the area and inspect for insects, rodents, birds, contaminants, and adulterants.

The discovery of any insects, rodents, or other pests will warrant immediate action and extermination using an Illinois exterminator.

Unless there is a spill or other event requiring more frequent sanitation, Catt Road, LLC will clean and sanitize all areas where cannabis is stored, both inside and outside, on a weekly basis. (Waste Storage Area Indicated on Next Page)
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11.2.5 Chemical, Dangerous, and Hazardous Waste
Catt Road will ensure that all liquid waste generated by its facility and operations are disposed of in compliance with the Public Resources Code and any other applicable state and local laws, including laws regulating “organic waste” as defined in Public Resources Code section 42649.8(c). Catt Road will dispose of nonhazardous liquids with ph levels between 6 and 10 by mixing the liquid with copious amounts of water and poured down the sewer drain. Catt Road will treat anything without the following criteria as hazardous waste and will dispose of as such.
• They dissolve in water or are water-based.
• They are not a toxic waste.
• They are not a hazardous (chemical) waste
• They are not flammable.
• They are not corrosive.
• They are not reactive.

Catt Road will regularly consult with the California Department of Toxic Substance Control for a list of liquids that is considered safe to regularly dispose of and liquid chemicals considered to be a hazard to the environment.

Catt Road will look for every opportunity to reduce and manage any risk associated with hazardous waste, including solvents, chemicals, fuel, lighting, ballasts, batteries, and e-waste. Catt Road will store hazards in a sealed location at the facility until they are transferred to an appropriate hazardous waste treatment, storage, and disposal facility. Catt Road commits to looking for alternatives for hazardous material types needed for the operation of its cannabis facility, for example, Catt Road has committed to using LED lighting throughout the facility, which does not become hazardous at the end of its life.

When Catt Road finds that it is not able to feasibly avoid the use of hazardous, or potentially hazardous materials, Catt Road asserts that it will dispose of hazardous and chemical waste in a manner consistent with federal, state, and local laws.

Hauling Cannabis Waste
Catt Road, LLC will work directly with CR&R of Wildomar to arrange for the pickup of cannabis waste for transfer to a permitted solid waste facility for final disposition. Catt Road will meet with the CR&R at it’s earliest convenience regarding any special or specific waste disposal requirements they may have for cannabis waste.
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12. Odor Abatement Plan
Catt Road, LLC believes the positive benefits of actively managing air and water quality translates to the health and wellbeing of its customers and employees. Catt Road, LLC wants to create a space that is comfortable for customers and free of allergens while preventing any odors from reaching the outside of the facility. It is the team’s ambition to reduce the impact on the surrounding community as a whole by eliminating undesirable odors, gases, or other potential hazards with relation to air quality.

Catt Road, LLC intends to operate a cannabis retail dispensary which will offer cannabis and cannabis infused products. It is the intent of Catt Road, LLC to maintain all product in sealed, smell proof packaging. Catt Road, LLC does not intend to cultivate or process cannabis products, and pursuant to 16 CCR § 5412, all packages that arrive to the facility will arrive in sealed retail packaging, which should minimize cannabis odor within or around the facility. However, Catt Road, LLC understands that cannabis products naturally have a unique aroma that some may find offensive. The Catt Road, LLC team has crafted an odor mitigation strategy that will create an environment that will be pleasant for customers and prevent the facility from becoming a nuisance to the surrounding community.

In compliance with 188 WMC § 17.315.080(A)(1), Catt Road, LLC will install a sufficient odor absorbing ventilation and exhaust system so that any odors generated inside the facility that is distinctive to its operation is not detected outside of the operation’s facility, anywhere on adjacent lots or public rightsof-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public.

In order to control nuisances such as odors, humidity and mold, Catt Road, LLC will have the following professionally installed:
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150
• An exhaust air filtration system with odor control that prevents internal odors from being emitted externally; and
• An air system that creates negative air pressure between the facility’s' interior and exterior so that the odors generated inside are not detectable outside.

Catt Road, LLC will install a high-quality ventilation and air purification system, to ensure there is no cannabis odor outside the building. We will use industry favored and proven effective ventilation and air purification systems that will aid in maintaining a comfortable environment both for customers as well as surrounding neighbors. Cannabis products will be in sealed, smell-proof jars and packaging, which will further contribute to air quality and odor control measures.

In order to provide an area that is safe and comfortable for employees as well as visitors, Catt Road, LLC will utilize a separate or zoned HVAC system capable of filtering the air. Such measures will include a comprehensive HVAC system that incorporates medical industry standard filtration, such as High Efficiency Particulate Air (HEPA) and High Efficiency Gas Absorption (HEGA) where appropriate. Similarly, any water entering the facility will also be filtered and, where appropriate, subjected to Ultraviolet (UV) purification. The goal is to reduce contaminants in the facility to prevent adulteration and ensure the highest quality products and experience for Catt Road, LLC customers.

Catt Road, LLC will ensure that the HVAC system is an air system which creates negative air pressure to help contain odors generated inside from escaping the building and being detectable outside or by neighboring establishments.

Given the unique nature of commercial cannabis retail, it is Catt Road, LLC intention to reduce odors inside where possible and eliminate any and all distinct odors from being detectable outside of the facility. These concerns have been largely mitigated in the retail environment by the pre-packaging of all products that will be available for sale. Based on solutions implemented in other industries, increasing offerings of industry specific solutions and technology will allow Catt Road, LLC to stay in compliance with the City of Wildomar expectations.

This will be generally accomplished by utilizing multiple filtrations, odor absorption and carbon “scrubbers” to rid the system exhaust of any odors. Activated carbon is an extremely effective absorptive odor control substance. An ozone generator will be placed upstream of the carbon filters.

Ozone (O3) is also an effective odor control mechanism. In this case, it is used to help control out- going airstream odors and recharge the activated carbon filter media, extending the life of the media. 917
151
By utilizing an efficient HVAC system that utilizes pre-filters, HEPA filters and Carbon Filters, Catt Road, LLC is confident that no odors will be detectable outside of the operation’s facility, anywhere on adjacent lots or public rights-of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public.

13. Visitor Requirement Plan

13.1 Visitors
Catt Road, LLC will restrict access to any area within its facility containing cannabis for any individual who is not a registered employee of Catt Road, LLC’s facility or employees of the state or local government who may enter the premises for the purposes of official government business. This will include outside vendors, contractors, or other individuals conducting business that requires access to the facility.

In accordance with section 5042 of the Bureau’s regulations, all Visitors will be checked in and checked out through the proposed inventory control system to create records accompanying any visit to the facility. This record will include the name of the individual, the company the individual works for, the reason the individual entered the facility, the date, and the times the individual entered and exited the limited-access area. Using the proposed inventory control system appointment scheduler and employee 918
152
scheduler, visits will be pre-scheduled and assigned to one or more employees who will supervise the visitor when within the facility.

13.2 Visitors Identification and Record Requirements
In compliance with 188 WMC § 5.76.180(B), Catt Road, LLC will check the individual's valid government issued identification prior to permitting a visitor into any limited access area. Visitors will be asked to produce one of the following forms of acceptable identification pursuant to 16 CCR § 5402(b):
• A document issued by a federal, state, county, or municipal government, or a political subdivision or agency thereof, including, but not limited to, a valid motor vehicle operator's license, that contains the name, date of birth, physical description, and a photo of the person; • A valid identification card issued to a member of the Armed Forces that includes a date of birth and a photo of the person; or
• A valid passport issued by the United States or by a foreign government.

The government issued ID will not be accepted if it has expired, damaged, or in any way not legible.

13.3 Visitors Must Be At Least Twenty-One Years of Age
Pursuant to 188 WMC § 5.76.110(E), Catt Road, LLC will not permit an individual less than twenty-one (21) years of age to enter, or be within, its licensed premises. Under no circumstances will anyone under the age of twenty- one be permitted to enter any limited access areas within Catt Road’s facility.

13.4 Visitors Prohibited Conduct
In accordance with 188 WMC § 5.76.180 (D), Catt Road, LLC will not permit a visitor to engage in the cultivation, preparation, processing, manufacturing, packaging, labeling, transportation, or sale of cannabis. All visitors within the facility will be limited to observation only and Catt Road, LLC will ensure all facility safety and sanitation policies are adhered to.

Further, and in compliance with 188 WMC § 5.76.110(G), Smoking, vaporizing, ingesting, or otherwise consuming cannabis and cannabis products at the premises will be strictly prohibited. This policy will be enforced anywhere on the premises including the actual building, as well as any accessory structures, common areas and parking areas. A sign will be posted at each entrance of the premises that clearly and legibly states, "Smoking, vaporizing, ingesting, or otherwise consuming cannabis or cannabis products on these premises or in their vicinity is prohibited and a violation of the Wildomar Municipal Code." This policy will apply to all owners, employees, and visitors on the premises. 919
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14. Radius Maps
In compliance with 188 WMC § 17.315.070 of the WMC (Ordinance 187)(A), Catt Road, LLC’s facility is not located within 600 feet of a public or private school providing instruction in kindergarten or grades 1 through 12, a day care center (excluding small and large family day cares), a park or a youth center.

Further, the facility is not located within 100 feet of any residential properties. 920
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14.1 100’ Radius of Project Site
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14.2 600’ Radius of Project Site
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Attach F - Project Specifics Maps-Tables
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Location Map/Aerial Photo Exhibit:
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Surrounding Land Uses:

The project site encompasses approximately 2.62 +/- acres and is located at the NEC of Clinton Keith Road and I-15 Freeway. The project site is comprised of five (5) legal parcels zoned C-P-S (Scenic Highway Commercial) and is currently vacant. The Applicant is processing a Lot Line Adjustment (LLA) to accommodate the proposed development. The Chevron gas station is located immediately east of the site, Hartford Park community is northeast of the site and the approved Westpark Promenade project (not yet built) is located directly north. The table below summarizes the current uses, land use and zoning designations related to the project site and surrounding properties. T

ADJACENT LAND USE, GENERAL PLAN AND ZONING
Location Current Land
Use
Current GP Land Use
Designation
Current Zoning
Designation
Subject
Property Vacant Commercial Retail (CR)
C-P-S
(Scenic Highway
Commercial)
North Vacant / Westpark
Promenade Commercial Retail (CR)
C-P-S
(Scenic Highway
Commercial)
South Shell Gas Station Commercial Retail (CR)
C-P-S
(Scenic Highway
Commercial)
East Chevron Gas
Station Commercial Retail (CR)
C-P-S
(Scenic Highway
Commercial)
West I-15 Freeway N/A N/A
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“The Cake House East”
Retail Cannabis Proposal
City Council Meeting
November 13, 2024
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Project Location
• Located NEC of CKR & I-115
Freeway
• Catt Crossings Retail Center
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Project Applications:

The Applicant is seeking City Council approval for the following:
1) Determination that the proposal meets the requirements for a Categorical Exemption in accordance with Section
15301 (Existing Facilities, Class1) of CEQA;
2) Approval of CUP No. 24-0035 to establish a 3,936 s.f. retail cannabis business, subject to conditions; and
3) Approval of Development Agreement (DA) No. 24-0035
setting up DA fees/revenues for the City’s general fund. 930
Local License 24-0035:
 The Local License is not subject to Commission or Council review but is important in understanding the cannabis proposal.
 The Local License cannabis application package is extensive (see Attach E) and is required to provide the following items for staff review:
 Authorization from the property owner, a copy of the executed lease agreement, organizational status language, and statement of qualifications.
 Project description, Business/Operations Plan, Fire Protection Plan, “Safety/Security Plan”, Waste Disposal Plan.
 Odor Abatement Plan, Visitor Requirement Plan, and interior elevation details. 931
Local License 24-0035:
 The Applicant submitted the Local License Cannabis proposal package on April 23, 2024.
 The Local License proposal package was reviewed by City staff and Riverside County Fire Dept.
 Each required section noted on the previous slide was reviewed thoroughly by each department.
 After a final review, a determination was made by the City that all the required sections of the Local License Cannabis package satisfactorily met the standards of Ord. 188 (Sec. 5.76 of WMC).
 Therefore, the Planning Department approved and issued the Local License on June 24, 2024, in accordance with Sec. 5.76 of the WMC.  Local License good for 2 years (6/24/26). 932
Conditional Use Permit / Development Agreement 24-0035:
 The Planning Commission reviewed the proposed CUP/DA at their Oct. 23, 2024, meeting and recommended approval to the City Council.  The CUP/DA must also be reviewed by the City Council per Ord. 187 (Sec. 17.315 of WMC).
 The Applicant submitted the CUP/DA Cannabis proposal package on April 23, 2024.
 The CUP cannabis application package is required to provide the following:
 Cannabis proposal package, authorization from the property owner, a copy of the executed lease agreement, and organizational status language.
 Statement of qualifications, project description, neighborhood compatibility plan, parking discussion, 100’ & 600’ sensitive uses maps, and interior elevation details. 933
Conditional Use Permit 24-0035:
 The Cannabis proposal package was reviewed by City staff and the RCFD & RSO…..both of which have cleared the CUP/DA for approval.  After a final review, a determination was made by the City that all the required sections of the CUP/DA Cannabis package satisfactorily met all standards of Ord. 187 (Chapter 17.315 of the WMC).

Development Agreement 24-0035 Provisions:
 Ordinance No. 187 requires the Applicant to enter into a Development Agreement with the City to establish DA fees as was approved for other retail cannabis businesses.
 The proposed development agreement will be for a 20-year period and will establish an annual fee (separate from the sales tax revenue) to be paid to the City by the Applicant for operating a cannabis business. 934 Development Agreement Provisions:
 The fees that the City and applicant have agreed have three (3) “deal points” as follows (refer to Section 3.2 of the DA):
 $20.00 per gross sq. ft. of lease space - 3,936 square feet will generate approximately $79,260 annually to the general fund ($1,585,200 over the life of the DA).
 3% of gross receipts will be paid to the City (Years 1 – 5) - this revenue fee would generate approximately $75,000 annually based on the applicant’s estimated annual sales revenue of about $2.5 million. The percentage will be renegotiated for years 6 - 20 (possible increase to 5% of gross receipts - approximately $125,000 annually)
 Sales Tax & Measure AA Tax (2%) will generate about $50,000 annually.  Total revenue to the General Fund (years 1 -5) is estimated to be $200,000 annually ($1,000,000 total)…. 935
Regulatory License Fee:
 The Cake House East retail cannabis business will also be subject to the City’s Regulatory License Fee requirements.
 The current fee is set at about $71,307.80 annually or $142,615.60 every two years.
 The current fee was based on a projection of 10 retail cannabis businesses operating in the City; however, only 2 businesses are operating at this time.  Element 7 (Buzz Cannabis) and Cake House East would make it 4 businesses.
 Since it has been 4 years since the City’s cannabis program started (2020), and only 4 viable businesses, Staff is currently re-evaluating the Regulatory Fee and intends to bring a modified Fee structure back to the Council in early 2025.
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* 100’ from a residential
use.
* 600’ from any schools,
parks, daycare centers, or
youth centers.
* Location meets these
standards.
937
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Planning Commission Recommendation
The Planning Commission voted 4 - 0 to recommend the
following to City Council:
1) Adoption of a Categorical Exemption in accordance with Section 15301 of CEQA;
2) Adopt a Council Resolution approving CUP No. 24-0035, subject to conditions; and
3) Introduce and Approve for First Reading a Council Ordinance approving Development Agreement No. 24-0035.
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From: Veronica Langworthy
To: Kim Strong
Cc: Greg Langworthy; Matthew Bassi
Subject: upcoming planning commission meeting
Date: Tuesday, October 1, 2024 5:37:20 AM
External Sender - From: (Veronica Langworthy
<[email protected]>)
This message came from outside your organization.

Hi Kim —
Saw the agenda for upcoming planning commission meeting… my intention to attend was waylaid by an early grandbaby in Texas — Caroline Louise Langworthy
concerns about the cannabis business:
* city staff and fire dept weighed in on the business but there does not appear to be law enforcement / sheriff dept report
— request and wait for a formal report from sheriff’s dept from May 2020 to present about public safety issues — increases in DUI, illegal grow, theft, battery, assault, etc drug-related crimes. These need to be part of the finding of fact before moving forward. * neighbors/commuters in proximity to Cake House West mention traffic incidents — the proposed location for Cake House East is at the I-15 / Clinton-Keith gateway to our city — an important corridor for emergency vehicles and commuters and shoppers. *although not a park, there is a sensitive environmental mitigation area within 600 feet of the site.
other questions:
*how many cannabis businesses already are established in the city? *how many properties have been inquired about?
*city said that to fund the District Attorney’s Task Force the city projected 10 businesses would be needed for that purpose? How is overtaxation of Schedule I substance ( https://www.dea.gov/drug-information/drug-scheduling ) meeting the expenses to city for public safety and other costs?
Hope you will add these questions/comments to the conversation on Wednesday night.

Respectfully, Veronica Langworthy
951-704-4210
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CANNABIS BUSINESS SUMMARY (As of September 2024)
1) Stizzy/Authentic Wildomar (PA 20-0081) cannabis business located at 36330 Hidden Springs Road, (Wildomar Square) in the C-P-S zone (APN: 380-110-056). Tak Sato, Applicant, 310-488-5707 Status: Active two-year Local License in good standing and is due to be renewed around September 17, 2024; CUP/DA originally approved by City Council on December 16, 2020; Cannabis business operating in good standing and paying their DA & Regulatory fees. 2) The Cake House “West” (PA 20-0084) cannabis proposal located at 32475 Clinton Keith Road (Bear Creek Plaza) in the C-1/C-P zone (APN: 380-140-006 & 007). Saad Pattah, Applicant (760) 703-7357.

Status: Active two-year Local License in good standing and is due to be renewed around October 1, 2024; CUP/DA originally approved by City Council on January 13, 2021; Cannabis business operating in good standing and paying their DA & Regulatory fees.
3) Culture Cannabis Club (PA 20-0078) cannabis proposal located at 33980 Mission Trail, Suite #A in the C-1/C-P zone (APN: 366-160-070). Macy Newell, Applicant (714) 310-9023.

Status: CUP/DA originally approved by City Council on December 16, 2020 w/a revision/expansion approved on November 10, 2021. This business has recently closed down & has vacated the property. Their active two-year Local License expired on September 24, 2024 and was not renewed.

Notification sent to the State for the record. Culture owes the city back payments on their DA & Regulatory fees.
4) The Bakery (Now Buzz Cannabis) (PA 20-0086) cannabis proposal located at 22812 Palomar Street (Ste. #100 - 101) in the C-1/C-P zone (APN: 380-130-028). Kendra Minkler, Applicant (818) 271-7080.

Status: Active two-year Local License in good standing and is due to be renewed around in early October 2024 (good for 2 years); CUP/DA originally approved by City Council on March 9, 2022; Applicant recently requested minor administrative changes to reduce the size of the lease space from 4 to 2 spaces. Tenant Improvement plans are being reviewed by the City with an opening projected in early 2025.

NEW CANNABIS APPLICATION SUBMITTAL (APRIL 22, 2024)
5) The Cake House “East” (PA 24-0035) A new cannabis proposal located at 23825 Catt Road (Catt Crossings Retail Center just west of Chevron station) in the C-P-S zone (APN: 380-240-001). Saad Pattah, Applicant (760) 703-7357.

The Applicant submitted a Local License retail cannabis application on April 23, 2024 and was approved by City Staff in June 2024. Applicant intends to occupy an approved (not yet built) retail building (3,936 square-foot lease space) in the recently approved Catt Crossings retail center. The CUP and DA applications are being processed before the Planning Commission and City Council in October and November 2024, respectively.

EXPIRED CANNABIS LICENSES
 Veterans Wildomar Central (20-0083) cannabis proposal located at 23080 Wildomar Trail (formerly Baxter Rd.) in the C-1-C-P zone (APN: 367-300-004). Saad Pattah, Applicant (760) 703-7357.

Status: Local License was approved on Oct. 1, 2020 but was not renewed on October 1, 2022 due to inaction on submittal of CUP/DA applications. Applicant will need to start over if they decide to move forward.  Veterans Wildomar North (20-0085) cannabis proposal located on the north side of Bundy Canyon Road about 210 feet east of Mission Trail in the C-1/C-P zone (APN: 366-160-014). Saad Pattah, Applicant (760) 703- 7357.

Status: Local License was approved on Oct. 1, 2020 but was not renewed on October 1, 2022 due to inaction on submittal of CUP/DA applications. Applicant will need to start over if they decide to move forward. 942
Catt Road, LLC
Commercial Cannabis Retail Business Application – City of Wildomar Address: 23852 Catt Road, Wildomar, CA 92595
APN:380-240-001, 380-240-052 License: Retail Storefront Presentation Date: 11/13/2024
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Copyright © 2021 All Rights Reserved
Mis s ion
Page | 2
The mission of Catt Road, LLC, is to open a second
commercial cannabis retail storefront within the City
of Wildomar in to continue providing a safe and
diverse experience for customers and the local
community. Our goal is to provide a unique shopping
experience that focuses on breaking the stigma’s
associated with cannabis usage by creating a
customer environment that is uplifting, friendly,
inclusive, and represents our friends and neighbors. As industry leaders, it is our responsibility to drive positive change wherever we are located.
944
Copyright © 2021 All Rights Reserved
o The Catt Road facility is in a location that meets the city and states requirements regarding zoning and proximity to sensitive use organizations.
o The current facility will be redesigned and renovated to create a unique customer shopping experience while being located in the brand new Catt Crossing Retail Center off Hwy 15 & Clinton Keith Rd. This location is design to have a modern appeal while attracting customers from the hwy.

Copyright © 2021 All Rights Reserved Page | 3
Lo c a t io n – 238 25 Ca t t Rd .
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Copyright © 2021 All Rights Reserved
o The Company expects to generate $4.93M in the first year of operations, escalating to more than $16M by year 5 and more than $20M by Year 10. These figures are conservative and based on the following:
o 8% of the population will shop at a cannabis business in Wildomar o The team expects business from 15% of those customers which is projected to be between 200 – 235 customers per day o The team expects the average transaction size to be approximately $60 and that each customer will visit 2.5 times per month o Based on these projections the team expects to generate o $295K in WIldomar Business Tax revenue for the city in just the first year of operations. Over the first 10 years of operation, the team projects to generate a tax revenue for the City of more than $8.5M dollars total.

Copyright © 2021 All Rights Reserved Page | 4
Bu s in e s s Pla n – Pro je c t e d Re v e n u e
$295,786
$476,592
$615,509
$769,386
$961,732 $1,009,819 $1,060,310 $1,113,326 $1,168,992 $1,227,441 $-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 WIldomar Cannabis Business Tax
Total Cannabis Business Tax
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Copyright © 2021 All Rights Reserved
Bu s in e s s Pla n – Da y t o Da y Op e ra t io n s
Page | 5
o Catt Road, LLC have compiled strict policies and
procedures that aim to:
o Execute customer check-in procedures to prevent the
diversion of cannabis and cannabis products
o A state compliant POS and Inventory Management system and inventory handling procedures to track ALL inventory transactions and generate all required reporting required by both local and state regulations – Dutchie or Treez
o Provide adequate training and continuing education that enable staff to perform daily activities effectively and efficiently
o Educate customers in a manner that ensures a great
customer experience both within the facility as well as with products offered
o Create a retail environment that is safe and comfortable for employees and customers that is conscience of the
neighboring businesses.
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Copyright © 2021 All Rights Reserved
La b o r a n d Lo c a l En t e rp ris e Pla n
Page | 6
o Catt Road, LLC will oversee the hiring of local
Wildomar residents to fill the estimated 20
positions required for operations.
o Catt Road’s employee compensation
package will offer employees 150%-233% of
the states minimum wage and 132% - 205%
of the recommended living wage for
Riverside County.
o Other employee benefits include
Comprehensive Healthcare Plans, Employer
Matched Retirement Plans, Paid Vacation
and Holidays, and an Educational
Reimbursement Program.

Employee Title Hourly Rate Premium over
Living Wage
Premium over
Minimum Wage
Retail Store Manager $28.00 205% 233%
Shift Leader $25.00 183% 208%
Retail Sales Associate $18.00 132% 150%
Inventory Control
Specialist $18.00 132% 150%
Delivery Driver $18.00 132% 150%
1 ADULT
0 Children 1 Child 2 Children 3 Children
Living Wage $13.68 $29.18 $35.39 $46.27
Poverty Wage $6.00 $8.13 $10.25 $12.38
Minimum Wage $12.00 $12.00 $12.00 $12.00
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Ne ig h b orh ood Com p a tib ility Pla n
o Catt Road, LLC has elected Alex Dos santos, Director of Compliance & Licensing as the Community Relations Designee to ensure all actions and measures for community impact and compatibility are fully implemented and managed.
o The company will distribute contact information to all neighboring businesses as well as provide this information to the city directly. o Additionally, the company will make a compliant form accessible as both hard copy as well as on the company website to provide feedback to the company regarding any nuisances that result from operations.
o The company has diligently worked to address many sources of nuisance related to noise, traffic, odor, and waste by creating strict policies an procedures for daily operations.
o Complete odor control and waste management plans can be provided and focus on the implementation of environmentally friendly yet effective systems as well as industry best practices.

Copyright © 2021 All Rights Reserved Page | 7
A. Complainant:

Last Name: First Name: Middle Initial:

Date of Incident: Time of Incident: Can We Contact You:

Home Address: Home/Cell Phone No.: Work Phone No.:

Email Address:

B. Did you Speak with a Community Member of Fresno Representative, if so, Please Complete Below:

Last Name: First Name:

Did You Speak by Phone or at the Cake Facility? Was the Representative Helpful? C. Additional Witnesses (if any):

Last Name: First Name:

Address: Phone No.:

Email Address:

Description of Incident:

F. Remedy - Please describe your requested remedy
G. Complainant’s Signature: Date:

For Community
Members of
Fresno Use Only
Complaint No.: Date Received:
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Copyright © 2021 All Rights Reserved
Sa fe ty Pla n
Page | 8
o Catt Road has partnered with Safety Compliance Management, Inc. (SCM), owned by highly qualified safety professional Paul W.

Gantt in the advisement and preparation of a comprehensive Safety Plan for the facility.
o Paul Gantt holds a Doctorate degree in Human Services, is a Board-Certified Safety Professional, California State Fire Marshal, Certified Fire Officer, Certified Fire Prevention Officer, Certified Public Education Officer, and a Certified Fire Training Officer o This comprehensive plan, provided to the city in its original application encompasses all of the following:
o Accident & Incident Protocols and Reporting Procedures o Emergency Evacuation Protocols, Route Identification, and Identification of designated Assembly Areas
o Fire Extinguishers and Suppression Equipment
o Fire Prevention Policies and Procedures
o Training & procedures for all Fire and Medical Emergencies 950
Copyright © 2021 All Rights Reserved
Se c u rity Pla n
Page | 9
o Catt Road, LLC has proactively partnered with safety and security experts to ensure their safety and security plans include both the professional expertise and the latest technology the security industry has to offer.

Security at the facility will include, at minimum, the following:
o Intrusion Alarm and Monitoring System designed and installed by Alarm Company Operator, Safe and Sound Security includes:
o Surveillance Cameras strategically placed throughout the facility to capture all activity
o Door and Window Sensors at each possible entry point
o Motion Detectors that will alert of unauthorized entry of the facility and limited access areas
o Panic buttons that will aid employees in alerting authorities in the event of an emergency
o Continuous off-site monitoring by Brinks Home Security o Visitor Access Control
o Electronic access control to all limited access areas in the facility – limited to employees who require access to complete assigned duties.
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Copyright © 2021 All Rights Reserved
Se c u rity Pla n Con tin u e d
Page | 10
•Catt Road will be using the same on site security services as the current Cake House location in Wildomar and has secured the services of Vigilant Eye Private Security for on-site security which will include 1-Armed Security 24 hrs. a day, 7 days a week.
• Detex clock systems will be provided upon request
•24 hour random supervision of clients property
•Licensed - Bonded - Insured
•Officers are provided with Cellular phones, pagers, radios for each of our clients
•Vehicle patrol, Golf cart, Bicycle will be provided if a larger area needs to be patrolled
•Officers fully trained with Power to Arrest, CPR, First Aid, Baton, Pepper spray
•Uniformed Security Officers (Armed)
•A dispatch unit will be available 24 hrs a day
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Copyright © 2021 All Rights Reserved
Wh y Us ?
Page | 11
Catt Road, LLC is both Minority owned and have managed over a dozen cannabis retail businesses with the business experience to create a safe and sustainable commercial cannabis facility. The company aims to serve the Wildomar community by providing high quality products and exceptional customer service. With a lifetime of service, Catt Road has a passion to contribute to the advancement of the community by offering generous financial contributions and volunteer hours. The City of Wildomar can expect a business that is managed with the customers,
community, and employees in mind. Officials can rest assured that they have selected a company that will uphold the high standards that Wildomar citizens should expect out of a cannabis retailer.

Join us in our mission of bringing quality cannabis to every person who can benefit!
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THANK YOU
954

CITY OF WILDOMAR

CC - REGULAR MEETING

GENERAL BUSINESS
Agenda Staff Report # 3.1
Meeting Date: November 13, 2024
SUBJECT: Ordinance amending Chapters 3.24, 2.08, and 3.28 of the Wildomar Municipal Code Related to Purchasing of Supplies and Equipment and Contracts for Professional Services
SUBMITTED BY: Heidi Schrader, Administrative Services Director PREPARED BY: Heidi Schrader, Administrative Services Director ACTION:

Introduce and approve the first reading of an ordinance entitled:

ORDINANCE NO. ____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WILDOMAR, CALIFORNIA, AMENDING SECTIONS 3.24, 2.08, AND 3.28 TO THE MUNICIPAL CODE OF THE CITY OF

WILDOMAR TO PROVIDE UPDATED GUIDANCE ON THE PURCHASE OF SUPPLIES AND

EQUIPMENT AND CONTRACTING FOR PROFESSIONAL SERVICES
SUMMARY:

This ordinance amends municipal code related to the purchase of supplies and equipment and contracting for professional services.

BACKGROUND:

In 2009, City Council Adopted Ordinance 25, which amended the municipal code to add the purchasing of supplies and equipment. At that time, the purchasing limits were set. Purchases of 0-$1,000 required no quotes or Purchase Order. Purchases of $1,000 - $9,999 required three verbal quotations and a Purchase Order. Purchases of $10,000 to $50,000 required three written quotations and a Purchase Order and anything over $50,000 required a formal RFP process and a Council approved contract. These limits have not been changed since then, even though overall purchasing power of the dollar has diminished to the point where what in 2009 would cost $50,000, now would cost approximately $75,000. This represents a 46% reduction in purchasing power.

When the purchasing code was initially adopted, the local vendor preference section reduced by 1% that portion of any bid subject to sales or use tax. This is due to the fact that if such bid were accepted by the City as the lowest responsible bid received, the City would receive a refund of the sales and use tax. This 1% was determined prior to the passage of Measure AA, which delivers an additional 1% sales and use tax to the City.

In 2021, recycled paper requirements were added to formalize the City's Recovered Organic Material Produce and Recycled-Content Paper Procurement Policy. Over the years, additional recycled content was added to the requirements by CalRecycle, which have been added to this updated purchasing code. In addition, under SB1383 there is a requirement that the City 955
develop a recovered organic waste product procurement policy, which has also been added to section 3.24.130.

Since 2022, the City Council has approved 98 standard form agreements on consent. These are agreements where the terms and conditions are the same, just the scope of work and fees for service changes. Some of these agreements, like the grading agreement or the public improvement agreement, don't have an overall fee for service, where others like the professional services agreement that require Council approval, have a total contract amount greater than $50,000. These are approved ministerially by Council based on the current purchasing code. Taking them to Council increases administrative cost in staff time, requires Council review for each one, and can delay the work of some developers and consultants by a month or more.

DISCUSSION:

Staff recommends increasing purchasing limits to mitigate this reduction in purchasing power.

This would include purchases of 0-$9,999 requiring no quotes, although $5,000 and above would require a Purchase Order. Purchases of $10,000 - $29,999 would require three verbal quotations. $30,000 - $75,000 would require three written quotations. Any purchase over $75,000 would require a formal RFP process. This would be the same for purchases of supplies and equipment as well as contracts for professional services. Public construction projects would be subject to the limits set by CUPCCA should the City Council chose to opt into the Act. Should City Council not opt into the Act, the limits are set by public contract code.

Based on the increase of sales and use tax payable to the City from 1% to 2%, due to passage of Measure AA, staff recommend changing the local vendor preference section to reduce by 2% that portion of any bid subject to sales and use tax. This would provide a benefit to local vendors that would be offset by a refund of 2% of the sales and use tax. This would be applicable to all bids, even if lowest bidder isn't selected, but price is one of the determining factors of award.

In order to streamline the process for standard service contracts, staff recommends delegating authority to the City Manager annually via resolution to approve certain contracts. Council would approve the terms and conditions of these contracts as to form on an annual basis when they adopt the resolution. For the first year of this approval it is anticipated that the contracts would include:

MOU for Community Event Partnerships
Stormwater Management/BMP Facilities Agreement
Grading Agreement
Public Improvement Agreement
Subdivision Improvement Agreement
Agreement for Services
Agreement for Maintenance/Repair/Minor Construction Services The City Manager would be authorized to approve these agreements only if the original Council approved terms and conditions remain the same. If the contract terms are modified for any reason, the contract would then need to be approved by City Council. In addition, to ensure transparency, a report of all approved contracts, similar to the warrants register, will be taken to Council on a quarterly basis. Should Council adopt this ordinance, staff would bring the first resolution to Council in January, at the time the ordinance is effective.

FISCAL IMPACT:
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While there is no fiscal impact associated with approval of the updated purchasing code, it is estimated that there would be staff savings associated with delegating contract approval to the City Manager.

ATTACHMENTS:

Purchasing Ordinance Amendment.docx
Purchasing Municipal Code Changes.pptx
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ORDINANCE NO. _______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WILDOMAR, CALIFORNIA, AMENDING SECTIONS 3.24, 2.08, AND 3.28 TO THE

MUNICIPAL CODE OF THE CITY OF WILDOMAR TO PROVIDE

UPDATED GUIDANCE ON THE PURCHASE OF SUPPLIES AND

EQUIPMENT AND CONTRACTING FOR PROFESSIONAL SERVICES
WHEREAS, the City of Wildomar has a compelling interest in ensuring equity and transparency through continuity and uniformity of its purchasing practices; and WHEREAS, the purchase thresholds within the Purchasing Code were last amended in 2009; and
WHEREAS, average purchasing power has decreased by 46% since 2009, leading to increased costs of goods and services, making the current purchasing thresholds outdated, and leading to excessively time intensive purchasing procedures; and WHEREAS, modern purchasing code provides departments with the guidelines needed to assist them in maintaining purchasing practices within legal regulations; and WHEREAS, the current process for contract approval, last amended in 2013, is overly bureaucratic and time-intensive, delaying City operations; and WHEREAS, the City of Wildomar desires to amend the current purchasing code to streamline processes, reduce bureaucracy, and maintain a fair and robust purchasing program.

THEREFORE, THE CITY COUNCIL OF THE CITY OF WILDOMAR ORDAINS AS FOLLOWS:

SECTION 1. RECITALS
The above recitals are true and correct and are hereby incorporated herein by this reference.

SECTION 2. AMENDMENT OF SECTION 3.24.010 OF THE WILDOMAR

MUNICIPAL CODE
Section 3.24.010 [Definitions] of Chapter 3.24 [Purchasing of Supplies and Equipment] of Title 3 [Revenue and Finance] of the Wildomar Municipal Code shall be amended in its entirety to read as follows:
“3.24.010 Definitions.

For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
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"Agency" and "using agency" means any department, agency, commission, bureau or other unit of the City government, which derives its support wholly or in part from the City of Wildomar.
"Bidder's security." Where deemed necessary by the Administrative Services Director, formal bids may be accompanied by a bond, cashier's check or cash in an amount of not less than 10% of total amount bid.
"Bidders' file" means a current file of sources of supply of articles for each category of commodities repetitively purchased for City use.
"City Manager" shall mean the City's City Manager and their designee. "Administrative Services Director" shall mean the City's Administrative Services Director and their designee.
"Public projects" shall have the same definition as set forth in Section 22002 of the Public Contract Code.
"Purchases." Purchases of supplies and equipment shall include leases or rentals as well as transactions by which the City acquires ownership.
"Responsible bid" means an offer, submitted by a responsible bidder, to furnish supplies and equipment or services in conformity with the specifications, delivery terms and conditions and other requirements included in the notice inviting bids. "Responsible bidder" means a bidder who submits a responsible bid and who is not only financially responsible, but is possessed of the resources, judgment, skill, ability, capacity and integrity requisite and necessary to perform the contract according to its terms. A determination as to whether or not a bidder is a responsible bidder shall include an evaluation of relevant factors, including, but not limited to, the following factors:

1. The ability, capacity and skill of the bidder to perform the contract or provide the maintenance and service required;

2. Whether the bidder has the facilities to perform the contract promptly, or within the time specified, without delay or interference;

3. The character, integrity, reputation, judgment, experience and efficiency of the bidder;

4. The bidder's record of performance of previous contracts or of provision of maintenance and service thereunder;

5. The previous and existing compliance by the bidder with laws and ordinances relating to the contract or of the furnishing of maintenance and service thereunder; 959

6. The sufficiency of the financial resources and ability of the bidder to perform the contract;

7. The quality, availability and adaptability of the supplies and equipment to the particular use required;

8. The ability of the bidder to provide future maintenance and service for the use of the subject of the contract;

9. The number and scope of exceptions and conditions attached to the bid;

10. Whether the bidder has a previous or existing relationship with an officer or employee of the City that may create a conflict of interest on behalf of the officer or employee if a contract is awarded to the bidder.
"Supplies" and "equipment" mean any and all articles, things or personal property furnished to or used by any agency.”
SECTION 3. AMENDMENT OF SECTION 3.24.030 OF THE WILDOMAR

MUNICIPAL CODE
Section 3.24.030 [Centralized purchasing.] of Chapter 3.24 [Purchasing of Supplies and Equipment] of Title 3 [Revenue and Finance] of the Wildomar Municipal Code shall be amended in its entirety to read as follows:
“3.24.030 Centralized purchasing.

There is hereby created a centralized purchasing and stores division within the Administrative Services Department, in which is vested authority for the purchase of supplies and equipment.”
SECTION 4. AMENDMENT OF SECTION 3.24.040 OF THE WILDOMAR

MUNICIPAL CODE
Section 3.24.040 [Director of Finance to serve as general purchasing agent.] of Chapter

3.24 [Purchasing of Supplies and Equipment] of Title 3 [Revenue and Finance] of the Wildomar Municipal Code shall be amended in its entirety to read as follows:
“3.24.040 Administrative Services Director to serve as general purchasing agent.

The Administrative Services Director shall be the head and have general supervision of the Purchasing Division. The Administrative Services Director or their designee, serving as the Purchasing Agent shall have the authority to:

A. Purchase or contract for supplies and equipment required by any using City department in accordance with purchasing procedures prescribed by this chapter, such administrative regulations as the Administrative Services Director shall adopt for the internal management and operation of the Purchasing Division and such 960
other rules and regulations as shall be prescribed by the City Council or the City Manager.

B. Negotiate and recommend execution of contracts for the purchase of supplies and equipment.

C. Act to procure for the City the needed quality in supplies and equipment at least expense to the City.

D. Discourage uniform bidding and endeavor to obtain as full and open competition as possible on all purchases.

E. Prepare and recommend to the City Council rules governing the purchase of supplies and equipment for the City.

F. Prepare and recommend to the City Council revisions and amendments to the purchasing rules.

G. Keep informed of current developments in the field of purchasing, prices, market conditions and new products.

H. Prescribe and maintain such forms as reasonably necessary to the operation of this chapter and other rules and regulations.

I. Supervise the inspection of all supplies and equipment purchased to insure conformance with specifications.

J. Recommend the transfer of surplus or unused supplies and equipment between departments as needed, and the sale or disposition of supplies and equipment which cannot be used by any department or which have become unsuitable for City use.

K. Maintain an approved vendors list, vendors' catalog file and records needed for the efficient operation of the Purchasing Division.”
SECTION 5. AMENDMENT OF SECTION 3.24.050 OF THE WILDOMAR

MUNICIPAL CODE
Section 3.24.050 [Exemptions from centralized purchasing.] of Chapter 3.24 [Purchasing of Supplies and Equipment] of Title 3 [Revenue and Finance] of the Wildomar Municipal Code shall be amended in its entirety to read as follows:
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“3.24.050 Exemptions from centralized purchasing.

The City Manager or Administrative Services Director may authorize any City department head to contract for the purchase of supplies and equipment provided that such purchases shall be made in conformity with the procedures established by this chapter, and any administrative regulations as the Administrative Services Director shall adopt for the internal management and operation of the Purchasing Division and such other rules and regulations as shall be prescribed by the City Council or the City Manager.” SECTION 6. AMENDMENT OF SECTION 3.24.060 OF THE WILDOMAR

MUNICIPAL CODE
Section 3.24.060 [Encumbrance of funds.] of Chapter 3.24 [Purchasing of Supplies and Equipment] of Title 3 [Revenue and Finance] of the Wildomar Municipal Code shall be amended in its entirety to read as follows:
“3.24.060 Encumbrance of funds.

Except in cases of emergency or in cases where specific authority has been first obtained from the City Council, no purchase order for supplies or equipment shall be issued unless the Administrative Services Director or his/her designee has certified that there exists an unencumbered appropriation in the fund account (or available budget balance) against which the purchase is to be charged.”
SECTION 7. AMENDMENT OF SECTION 3.24.070 OF THE WILDOMAR

MUNICIPAL CODE
Section 3.24.070 [Emergency purchases.] of Chapter 3.24 [Purchasing of Supplies and Equipment] of Title 3 [Revenue and Finance] of the Wildomar Municipal Code shall be amended in its entirety to read as follows:
“3.24.070 Emergency purchases.

While the need for occasional emergency purchases is recognized, the practice must be curtailed as much as possible by anticipating needs so that the normal purchasing procedure utilizing bidding may be used.

A. An emergency shall be deemed to exist if:

1. There is a great public calamity.

2. There is immediate need to prepare for national or local defense.

3. There is a breakdown in machinery or an essential service which requires the immediate purchase of supplies and equipment to protect the public health, welfare or safety.

4. An essential departmental operation affecting the public health, welfare or safety 962
would be greatly hampered if the prescribed purchasing procedure would cause an undue delay in procurement of the needed item.

B. In case of an emergency which requires immediate purchase of supplies and equipment, the City Manager may authorize the Administrative Services Director or his/her designee to secure by the process set forth in Section 3.24.090 any supplies and equipment regardless of the amount of the expenditure.” SECTION 8. AMENDMENT OF SECTION 3.24.080 OF THE WILDOMAR

MUNICIPAL CODE
Section 3.24.080 [Purchasing methods.] of Chapter 3.24 [Purchasing of Supplies and Equipment] of Title 3 [Revenue and Finance] of the Wildomar Municipal Code shall be amended in its entirety to read as follows:
“3.24.080 Purchasing methods.

A. The table in this section sets forth the required methods for purchasing supplies and equipment. (Contracting for consultants and professional services is addressed in Chapter 3.28.)
Value of
Purchase
Purchase Method Agreement Format
Under $10,000 None None. Purchase Order required for $5,000 and above.
$10,000 - $29,999 3 verbal
quotations1
Purchase order approved by the
Administrative Services Director or contract
signed by City Manager for supplies or
equipment.1
$30,000 - $75,000 3 written
quotations1
Purchase order approved by Administrative
Services Director and City Manager or
contract signed by City Manager for supplies
or equipment.1
Over $75,000 Notice inviting
sealed bids2
City Council approved bid
1 See Section 3.24.090
2 See Section 3.24.110
B. Notwithstanding the table in subsection A of this section, the purchase method for the purchase of supplies or equipment may be dispensed with under the following circumstances:

1. An emergency, as described in Section 3.24.070, requires that an order be placed immediately to protect the public health, safety or welfare; or

2. The supply or equipment can only be obtained from one source ("sole source") 963
– sole source justification form is required - ; or

3. The supply or equipment is available through or in conjunction with another public agency's purchase of such supply or equipment and the other public entity has gone through a bidding process which the City Manager determines is comparable to the processes described above ("piggybacking").

C. The agreement format required by the table in subsection A of this section shall be required for any purchase pursuant to subsection B of this section.

D. In its discretion, the City Council may at any time, by a majority vote and without amending this chapter, waive the purchasing procedures or alter these proceedings to fit a specific purchase.”
SECTION 9. AMENDMENT OF SECTION 3.24.090 OF THE WILDOMAR

MUNICIPAL CODE
Section 3.24.090 [Verbal and written quotations.] of Chapter 3.24 [Purchasing of Supplies and Equipment] of Title 3 [Revenue and Finance] of the Wildomar Municipal Code shall be amended in its entirety to read as follows:
“3.24.090 Verbal and written quotations.

A. Minimum Number of Bids. Wherever possible, purchases utilizing verbal and written quotations shall be based on at least three bids and shall be awarded to the bidder offering the most advantageous bid to the City after consideration of price, quantity, durability, servicing, delivery time, standardization, and other factors.

B. Solicitation of Bids. Quotations shall be obtained as follows:

1. By telephone provided the amount of the purchase is $10,000.00 or more but less than $30,000.00; and

2. In writing provided the amount of the purchase is $30,000.00 or more, but not more than $75,000.00.

C. Written Bids. All bids received pursuant to this section shall be submitted to the Purchasing Agent who shall keep a record of all open market orders and bids for a period of one year after the submission of bids or the placing of orders. This record, while so kept, shall be open to public inspection.”
SECTION 10. AMENDMENT OF SECTION 3.24.100 OF THE WILDOMAR

MUNICIPAL CODE
Section 3.24.100 [Bidding preference for local businesses.] of Chapter 3.24 [Purchasing of Supplies and Equipment] of Title 3 [Revenue and Finance] of the Wildomar Municipal Code shall be amended in its entirety to read as follows:
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“3.24.100 Bidding preference for local businesses.

For the purpose of determining the lowest responsible bidder as required by Sections

3.24.110 and 3.24.090, two percent of that portion of any bid subject to sales or use tax shall be deducted from such bid where it is determined that if such bid were accepted by the City as the lowest responsible bid received, the City would receive a refund of the two percent sales and use tax imposed by Chapter 3.20 (Sales and Use Tax) of this Code.

For purposes of this section, a “local business” shall be defined as any individual, partnership or corporation which regularly maintains a place of business within the limits of the city, and which maintains the necessary business registration, and which has paid all applicable fees and taxes imposed by the City.”
SECTION 11. AMENDMENT OF SECTION 3.24.110 OF THE WILDOMAR

MUNICIPAL CODE
Section 3.24.110 [Sealed bid procedure for purchases greater than $50,000.00.] of Chapter 3.24 [Purchasing of Supplies and Equipment] of Title 3 [Revenue and Finance] of the Wildomar Municipal Code shall be amended in its entirety to read as follows:
“3.24.110 Sealed bid procedure for purchases greater than $75,000.00.

Purchases of supplies and equipment of an estimated value greater than $75,000.00 shall be by written contract pursuant to the procedure hereinafter prescribed.

A. Notice Inviting Bids or Requests for Proposals. Notices inviting formal bids or Requests for Proposals for the purchase of supplies or equipment shall include a general description of the articles to be purchased, shall state where bid forms and specifications or requests for proposals may be obtained, and the time and place for the opening of bids or proposals. This can be either through written notice or via the City’s electronic bids management system.

1. Published Notice for formal bids or Requests for Proposals. Notices inviting formal bids or requests for proposals shall be published one time at least 10 days before the date of opening of the bids or proposals, in a newspaper of general circulation within the City. The City Manager may waive the publication requirements of this section if they find that requirements for publication would not likely increase the number or quality of bidders or proposers beyond those on the approved vendor list.

2. Approved Vendors List. The Administrative Services Director or his/her designee shall also solicit sealed bids from all responsible prospective suppliers whose names are on the approved vendors list, or who have made written request that their names be added thereto, or who have registered in the City’s electronic bids management system.

B. Bidder's Security. Where deemed necessary by the Administrative Services Director or their designee, formal bids may be accompanied by security, either cash, cashier’s 965
check, certified check, or surety bond, in a sum equal to ten percent of the total aggregate of the bid and shall be designated in the notice inviting bids. Bidders shall be entitled to return of bid security; provided, however, that a successful bidder shall forfeit their bid security upon their refusal or failure to execute the contract within 10 days after the preparation and mailing of the contract, unless in the latter event the City is solely responsible for the delay in executing the contract. The City Council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. In such event, if the City Council awards the contract to the next lowest bidder, the amount of the lowest bidder's security shall be applied by the City to the contract price differential between the lowest bid and the second lowest bid, and the surplus less any City expenses related to the lowest bidder, if any, shall be returned to the lowest bidder
C. Bid Opening Procedure. Sealed bids shall be submitted to the City and shall be identified as "BID" on the envelope. Bids shall be opened in public at the time and place stated in the public notices. A tabulation of all bids received shall be available for public inspection during regular business hours for a period of not less than 30 calendar days after the bid opening. Once opened, the bids shall be public records.

In the event that the City utilizes an electronic bids management system, bids shall be submitted and opened in accordance with the instructions set forth in the notice inviting bids and related bid materials.

Notwithstanding the foregoing, any bid deemed nonresponsive at the time of bid opening shall not be kept by the City and shall be returned to the bidder once deemed nonresponsive. Grounds for determining a bid is nonresponsive include, but are not limited to, failure to provide the required bid bond and failure to attend any mandatory walk through or pre-bid meeting.

D. Rejection of Bids. In its discretion, the City Council may reject any and all bids presented and readvertise for bids pursuant to the procedure hereinabove prescribed. However, when all bids exceed the authorized budgeted amount, the City Manager may authorize rejection of all bids and authorize rebidding based upon the original specifications or as they may be modified, in accordance with procedures prescribed in this chapter.

E. Tie Bids. If two or more bids received are for the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay or re-advertising for bids, the City Council in its discretion may accept the one it chooses or accept the lowest bid made by and after negotiation with the tie bidders at the time of the bid opening or award of contract.

F. No Bids. When no formal bids or no responsive bids are received, the Administrative Services Director or their designee is authorized to negotiate for written proposals, and their recommendation shall be presented to the City Manager and the award, if any, shall be made in accordance with applicable provisions prescribed in this chapter.
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G. Performance Bonds. The City Manager shall have the authority to require a performance bond or other bonds in an amount reasonably necessary to protect the best interests of the City before entering a contract in such amounts as they shall find reasonably necessary to protect the best interests of the City. If the City Manager requires such bond or bonds, the form and amount of same shall be described in the notice inviting bids.”
SECTION 12. AMENDMENT OF SECTION 3.24.120 OF THE WILDOMAR

MUNICIPAL CODE
Section 3.24.120 [Surplus supplies and equipment.] of Chapter 3.24 [Purchasing of Supplies and Equipment] of Title 3 [Revenue and Finance] of the Wildomar Municipal Code shall be amended in its entirety to read as follows:
“3.24.120 Surplus supplies and equipment.

All using agencies shall submit to the Administrative Services Director, at such times and in such forms as they shall prescribe, reports showing all supplies and equipment which are no longer used or which have become obsolete or worn out. The Administrative Services Director shall have authority to sell, exchange for or trade in on new supplies and equipment all supplies and equipment which cannot be used by any agency or which have become unsuitable for City use. These options include the following:

A. Sale. For City property deemed suitable for sale, Administrative Services Director or their designee may offer the City property for sale via the approved methods:

1. Public Auction. Surplus property may be sold at public auction. Online auctions are an acceptable auction method. City may contract with a professional auctioneer, at its discretion.

2. Sealed Bids. Sealed bids may be solicited for the sale of surplus property.

Surplus property disposed of in this manner shall be sold to the highest responsible bidder.

3. Selling for Scrap. Surplus property may be sold as scrap if it is deemed that the value of the raw materials exceeds the value of the property as a whole.

4. Negotiated Sale. Surplus property may be sold outright if it is determined that only one known buyer is available or interested in acquiring the property. The advertisement for the sale must be published in a newspaper for at least two weeks prior to the negotiated sale to ensure no other interested buyers are available.

5. A receipt or other proof of disposal from the outright sale, the contracted auctioneer, licensed scrap dealer, individual buyer, etc. is required and is to 967
be forwarded to the Administrative Services Department. The City will return proceeds to the appropriate revenue fund.

6. All surplus property is for sale “as is” and “where is”, with no warranty, guarantee, or representation of any kind, express or implied, as to the condition, utility or usability of the property offered for sale.

B. Trade-in. Property declared as surplus may be offered as a trade-in for credit toward the acquisition of new property.

C. Donation. With the approval of the Administrative Services Director or their designee, the City may donate usable items with a minimal fair market value (such as outdated computer equipment and furniture) to a registered charitable organization or community organization. Surplus property may also be donated to any other public agency or charitable organization exempt under Section 501(c)(3) of the Internal Revenue Code. “Public Agency” means the State of California or any agency or subdivision thereof, including any City, County, Special District, or School District. A letter from the public agency or organization, acknowledging receipt of the asset(s) is required.

D. Return to Manufacturer. Surplus property may, when possible, be returned to the manufacturer for buy-back or credit toward the purchase of new property.

Documentation related to such a transaction shall be forwarded to the Administrative Services Department.

E. Disposal. When the cost of locating a buyer exceeds the estimated sales price of surplus property, the property may be recycled, destroyed, or disposed of as junk”.

SECTION 13. AMENDMENT OF SECTION 3.24.130 OF THE WILDOMAR

MUNICIPAL CODE
Section 3.24.130 [Recovered organic material product procurement and recycled-content paper procurement.] of Chapter 3.24 [Purchasing of Supplies and Equipment] of Title 3 [Revenue and Finance] of the Wildomar Municipal Code shall be amended in its entirety to read as follows:
“3.24.130 Recovered organic material product procurement and recycled-content paper procurement.

All City departments, and direct service providers to the jurisdiction, as applicable, must comply with the City's Recovered Organic Material Produce and Recycled-Content Paper Procurement Policy, as amended.

A. Compost and SB 1383 Eligible Mulch procurement. Divisions and departments responsible for landscaping maintenance, renovation, or construction shall:
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1. Use Compost and SB 1383 Eligible Mulch produced from recovered Organic Waste for landscaping maintenance, renovation, or construction as practicable whenever available and capable of meeting quality standards and criteria specified. SB 1383 Eligible Mulch used for land application must meet or exceed the physical contamination, maximum metal concentration and pathogen density standards specified in 14 CCR Section 17852(a)(24.5)(A)1 through 3. Compost and SB 1383 Eligible Mulch are as defined below:
i) Compost: means the product resulting from the controlled biological decomposition of organic solid wastes that are source separated from the municipal solid waste stream or which are separated at a centralized facility or as otherwise defined in 14 CCR Section 17896.2(a)(4).

Compost eligible for meeting the Annual Recovered Organic Waste Product Procurement Target must be produced at a compostable material handling operation or facility permitted or authorized under 14 CCR Chapter 3.1 of Division 7 or produced at a large volume in-vessel digestion facility that composts on-site as defined and permitted under 14 CCR Chapter 3.2 of Division 7. Compost shall meet the State’s composting operations regulatory requirements.
ii) SB 1383 Eligible Mulch: means mulch eligible to meet the Annual Recovered Organic Waste Product Procurement Target, pursuant to 14 CCR Chapter 12 of Division 7. This SB 1383 Eligible Mulch shall meet the following conditions for the duration of the applicable procurement compliance year, as specified by 14 CCR Section 18993 1(f)(4):
 Produced at one of the following facilities:
(a) A combustible material handling operation or facility as defined in 14 CCR Section 17852(a)(12), that is permitted or authorized under 14 CR Division 7, other than a chipping and grinding operation or facility as defined in 14 CCR Section 17852(a)10:
(b) A transfer/processing facility or transfer/processing operation as defined in 14 CCR Sections 17402(a)(30) and (31), respectively that is permitted or authorized under 14 CCR Division 7; or
(c) A solid waste landfill as defined in Public Resources Code Section 40195.1 that is permitted under 27 CCR Division 2.
 Meet or exceed the physical contamination, maximum metal concentration and pathogen density standards for land application specified in 14 CCR Sections 17852(a)(24.5)(A)1 through 3 as enforced by this municipal code chapter.
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B. All vendors providing paper products and printing and writing paper shall:

1. If fitness and quality are equal, provide recycled-content paper products and recycled-content printing and writing paper that consists of at least 30%, by fiber weight, postconsumer fiber instead of non-recycled products whenever recycled paper products and printing and writing paper are available at the same or lesser total cost than non-recycled items or at a total cost of no more than one percent of the total cost for non-recycled items.

2. Provide paper products and printing and writing paper that meet Federal Trade Commission recyclability standard as defined in 16 Code of Federal Regulations (CFR) Section 260.12.

3. Other paper products shall consist of at least 30 percent, by fiber weight of postconsumer recycled content fiber, except as specified below:
 Toilet paper shall consist of at least 45 percent, by fiber weight, postconsumer recycled content fiber.
 Paper towels shall consist of at least 40 percent, by fiber weight, postconsumer recycled content fiber.
 Facial tissue shall consist of at least 10 percent, by fiber weight, postconsumer recycled content fiber.
 Toilet seat covers shall consist of at least 20 percent, by fiber weight, postconsumer recycled content fiber.
 General purpose paper wipers shall consist of at least 40 percent, by fiber weight, postconsumer recycled content fiber.
 Food serviceware, including but not limited to, napkins, plates, bowls, food trays, takeout boxes, placemats, etc. shall consist of at least 40 percent, by fiber weight, postconsumer recycled content fiber.

4. Certify in writing, under penalty of perjury, the minimum percentage of postconsumer material in the paper products and printing and writing paper offered or sold to the City. This certification requirement may be waived if the percentage of postconsumer material in the paper products, printing and writing paper, or both can be verified by a product label, catalog, invoice, or a manufacturer or vendor internet website.

5. Certify in writing, on invoices or receipts provided, that the paper products and 970
printing and writing paper offered or sold to the City is eligible to be labeled with an unqualified recyclable label as defined in 16 Code of Federal Regulations (CFR) Section 260.12 (2013).

6. Provide records to the City's recordkeeping designee, of all paper products and printing and writing paper purchases (both recycled-content and non-recycled content, if any is purchased). Records shall include a copy (electronic or paper) of the invoice or other documentation of purchase, written certifications as required in this section, quantity purchased, date purchased, and recycled content (including products that contain none), and if non-recycled content paper products or printing and writing papers are provided, include a description of why recycled-content paper products or printing and writing papers were not provided.”
SECTION 14. AMENDMENT OF SECTION 2.08.060 OF THE WILDOMAR

MUNICIPAL CODE
Section 2.08.060 [Powers and duties.] of Chapter 2.08 [City Manager] of Title 2 [Administration and Personnel] of the Wildomar Municipal Code shall be amended in its entirety to read as follows:
“2.08.060 Powers and duties.

The City Manager shall be the administrative head of the City government and is under the direction and control of the City Council, except as otherwise provided in this chapter.

The City Manager shall be responsible for the efficient administration of all affairs of the City which are under his or her control. In addition to the general powers as administrative head of the City government, and not as a limitation thereon, the City Manager shall be expected to, and shall have the power to:

A. Enforce all laws and ordinances of the City and to see that all franchises, contracts, permits, and privileges granted by the City Council are faithfully observed; B. Appoint, remove, promote, and demote any and all officers and employees of the City, including the City Clerk and City Treasurer, but not including elected officers and the City Attorney, subject to all applicable personnel rules and regulations which may be adopted by the City Council;
C. Control, order, and give directions to all department heads who are subject to his or her appointment and removal authority and to subordinate officers and employees of the City under his or her jurisdiction through their department heads; D. Conduct studies and effect such organization and reorganization of offices, positions, or units under his or her direction as may be indicated in the interest of efficient, effective, and economical conduct of the City's business; E. Recommend to the City Council for adoption such measures and ordinances as he 971
or she deems necessary;
F. Attend all meetings of the City Council unless excused by the Mayor individually or the City Council as a whole, except when his or her evaluation or removal is under consideration;
G. Prepare and submit the proposed annual budget and the proposed annual salary plan to the City Council for its approval;
H. Keep the City Council at all times fully advised as to the financial condition and needs of the City;
I. Make investigations into the affairs of the City, any City department or division, and any contract or other obligation of the City; and further to investigate all complaints in concerning the administration of the City government and concerning the service maintained by public utilities in the City;
J. Exercise general supervision over all public buildings, public parks, and all other public properties which are under the control and jurisdiction of the City; K. Sign contracts and other documents as specified in California Government Code section 40602 on the City’s behalf when directed and authorized to do so by the City Council by resolution, ordinance, minute order or any provision of this code.

L. Perform such other responsibilities and exercise such other powers as may be delegated to the City Manager from time to time by ordinance or resolution or other official action of the City Council.”
SECTION 15. AMENDMENT OF SECTION 3.28.020 OF THE WILDOMAR

MUNICIPAL CODE
Section 3.28.020 [Contracts of $50,000.00 or less.] of Chapter 3.28 [Contracts for Services] of Title 3 [Revenue and Finance] of the Wildomar Municipal Code shall be amended in its entirety to read as follows:
“3.28.020 Contracts for Professional or Other Services Bid Process.

All contracts for professional or other services, will adhere to the following bid process:

A. The City Manager, or designee, shall be empowered to contract for professional or other services without the necessity of competitive bid, without notice of competitive bid, and without City Council approval of the contract if the total fee for services and materials under the contract is $75,000.00 or less. If the total fee for services and materials under the contract is equal to or more than $30,000.00 and less than $75,000.00, then three written quotations are required. If the total fee for services and materials under the contract is $10,000.00 or more, and $29,999.00 or less, then three verbal quotations are required. There are no requirements for quotations under 972
$10,000.00. The total fee must include all reasonably foreseeable costs and work under the proposed contract. The proposed contract must include any reasonably related work on the same project, and larger contracts shall not be divided into smaller contracts, divided among multiple contractors, or divided by any other method intended to avoid competitive bidding.

B. A contract for professional or other services valued over $75,000.00 must be entered into by use of competitive sealed proposals. Proposals for the contract shall be solicited through a request for proposals.

1. Evaluation Factors. The request for proposals shall state the relative importance of evaluation factors, including price.

2. Public Notice. Public notice of the request for proposals shall be given in the same manner as provided in Section 3.24.110(A) (Sealed bid procedure for purchases greater than $75,000, Notice Inviting Bids or Requests for Proposals).

3. Receipt of Proposals and Release as Public Records. Proposals shall be received and opened in a method that avoids disclosure of contents to competing proposers until after award of the contract or final rejection of all proposals. The request for proposals must state that after award of the contract or final rejection of all proposals, all responses become public records subject to disclosure. A copy of each proposal received shall be retained in the City’s online purchasing portal and shall be open for public inspection after award of the contract or final rejection of all proposals.

4. Evaluation of Proposals. After the due date for proposals, the City Manager or their designee shall evaluate the proposals and may contact any proposer for clarification of a proposal, to solicit additional information, or for purposes of interviewing. The City Manager or designee may choose to contact all, some, or none of the responding proposers after the proposals are submitted to the City.

5. Award. The contract shall be awarded to the responsible proposer whose proposal conforms to the request for proposals and is determined to be the most advantageous to the City, taking into consideration the evaluation factors set forth in the request for proposals and price. The City Manager shall prepare and place in the contract file maintained by the City Clerk's office a written report detailing the basis on which the recommendation for award of contract is made.

6. Contracts for architectural, landscape architectural, engineering, environmental, land surveying, or construction project management services, as defined by California Government Code Sections 4525 and 4526, shall be awarded based on demonstrated competence and qualification for the type of 973
services required, and at fair and reasonable prices.

C. Contractors may submit statements of qualifications and expressions of interest in providing services to the City, whether in response to a request for qualifications issued by the City or not. The City may specify a uniform format for statements of qualifications. Statements of qualifications may be project specific or may be for multiple projects which occur during a time period not exceeding one three calendar years. Statements of qualifications shall be maintained by the Administrative Services Department, consistent with the City's document retention policies. A copy of any request for proposals for services issued pursuant to Section 3.24.110 shall be provided to each person or firm that has a current statement of qualification on file with the City or a registration in PlanetBids for work relevant to the request for proposals.

D. The City Manager may designate a person or persons to exercise any authority granted to him or her by this chapter.”
SECTION 16. AMENDMENT OF SECTION 3.28.030 OF THE WILDOMAR

MUNICIPAL CODE
Section 3.28.030 [Contracts over $50,000.00.] of Chapter 3.28 [Contracts for Services] of Title 3 [Revenue and Finance] of the Wildomar Municipal Code shall be amended in its entirety to read as follows:
“3.28.030 Interim Urgency Contracts.

The City Manager may execute a contract for professional or other services without the necessity of competitive bid, without notice of competitive bid, and without City Council approval of the contract if the following criteria are satisfied:

1. There is an immediate need for the professional or other services to protect the public health, safety or welfare.

2. The contract term is only for so long as is reasonably necessary for the professional or other services to be provided while the City conducts the competitive bidding process required by this section.”
SECTION 17. AMENDMENT OF SECTION 3.28.050 OF THE WILDOMAR

MUNICIPAL CODE
Section 3.28.050 [Amendments after award.] of Chapter 3.28 [Contracts for Services] of Title 3 [Revenue and Finance] of the Wildomar Municipal Code shall be amended in its entirety to read as follows:
“3.28.050 Amendments after award.

In instances where the City effects a necessary change in the project during the course of performance of the contract, the compensation may be adjusted by mutual written 974
agreement in a reasonable amount. The reasonable amount shall reflect and compensate the contractor for the amount of work to be performed that is changed from the scope of work previously agreed to by both parties. For contracts where the City Council has delegated signature authority to the City Manager by resolution, ordinance or minute order per section 2.08.060(K) of this municipal code, the City Manager may approve one or more amendments to compensation. The City Council shall approve all other amendments to compensation, which would cause the total compensation to exceed $75,000.00.”
SECTION 18. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) Adoption of this ordinance is not subject to CEQA, as it is not a “Project” as defined by CEQA. (PRC Section 21065 and CEQA Guidelines Section 15378). The Guidelines define a "project" as the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and that is …an activity directly undertaken by any public agency including … public works construction and related activities. Under CEQA, "projects" must be discretionary, public agency actions which have the potential of affecting the environment. A project does not include organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.

SECTION 19. SEVERABILITY
If any chapter, sections, subsections, subdivisions, sentences, clauses, phrases, or portion of this ordinance, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision will not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have adopted this ordinance, and each chapter, sections, subsections, subdivisions, sentences, clauses, phrases, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

SECTION 20. EFFECTIVE DATE
This ordinance shall take effect thirty (30) days after its passage by the City Council.

SECTION 21. CITY CLERK ACTION
The City Clerk is authorized and directed to cause this Ordinance to be published within fifteen (15) days after its passage in a newspaper of general circulation and circulated within the City in accordance with Government Code Chapter 36933(a) or, to cause this Ordinance to be published in the manner required by law using the alternative summary and posting procedure authorized under Government Code Chapter 39633(c). 975
INTRODUCED AND APPROVED FOR FIRST READING this 13th day of November, 2024.
___________________________
Bridgette Moore
Mayor
APPROVED AS TO FORM: ATTEST:
____________________________ ___________________________ Thomas D. Jex Janet Morales, CMC
City Attorney City Clerk
976
Purchasing Code
Changes
977

3.24 Purchasing of Supplies and
Equipment
 Cleaned up outdated language e.g. Administrative Services Director rather than Finance Director
 Removed requirement to award to lowest bidder – now most qualified responsible bidder
 Increases purchase limits – based on 46% reduction in purchasing power of today’s dollar since 2009
Purchase Method Was Recommended
No quotations needed Under $1,000 Under $10,000
3 verbal quotations $1,000 - $9,999 $10,000 - $29,999
3 written quotations $10,000 - $50,000 $30,000 - $75,000 Formal RFP Over $50,000 Over $75,000
978

3.24 Purchasing of Supplies and
Equipment
 Increased local business preference percentage – from 1% to 2%  Reflects 2% sales or use tax paid to the City
 Formalizes use of electronic “PlanetBids” system submittal of RFPs/Proposals  Adds additional recycled content per CalRecycle requirements  Additional materials used by janitorial services and serveware  Includes recovered organic waste product per SB1383
 Requirement to pass an ordinance formalizing the City’s use of compost and SB1383 eligible mulch
979

2.08/3.28 Contracts for Services
 2.08 allows City Council to direct and authorize the City Manager via resolution, to sign contracts and other documents
 3.28 purchasing limits are kept the same as for supplies and equipment  Recommend City Council delegate authorization to City Manager to approve specified list of general contracts
 Council to pre-approve the specified contracts as to form annually  Authorization to City Manager to be delegated via resolution annually  Terms and conditions of each contract approved by City Manager will not change from pre-approved state
 Quarterly report of all approved contracts will be taken to Council  Streamlines existing process – 98 general contracts have gone to Council since 2022  Reduces administrative burden on staff and Council
 Condenses the timeline for City contracted operations 980

2.08/3.28 Contracts for Services
 Anticipate approving the following contracts as to form this year:
 MOU for Community Event Partnerships
 Stormwater Management/BMP Facilities Agreement
 Grading Agreement
 Public Improvement Agreement
 Subdivision Improvement Agreement
 Agreement for Services
 Agreement for Maintenance/Repair/Minor Construction Services 981
Questions?
982

CITY OF WILDOMAR

CC - REGULAR MEETING

GENERAL BUSINESS
Agenda Staff Report # 3.2
Meeting Date: November 13, 2024
SUBJECT: Resolution opting in to CUPCCAA and Ordinance amending Chapter 3.32 of City of Wildomar Municipal Code to provide informal bidding procedures under the Uniform Public
Construction Cost Accounting Act
SUBMITTED BY: Heidi Schrader, Administrative Services Director PREPARED BY: Heidi Schrader, Administrative Services Director ACTION:

1. Adopt a resolution entitled:

RESOLUTION NO. 2024 - ___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILDOMAR, CALIFORNIA, IN

THE MATTER OF UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING

PROCEDURES

2. Introduce and approve the first reading of an Ordinance entitled:

ORDINANCE NO. ____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WILDOMAR, CALIFORNIA, AMENDING CHAPTER 3.32 OF THE MUNICIPAL CODE OF THE CITY OF WILDOMAR TO

PROVIDE INFORMAL AND FORMAL BIDDING PROCEDURES UNDER THE UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING ACT (SECTION 22000, ET SEQ. OF THE

PUBLIC CONTRACT COD)
SUMMARY:

Adopting the resolution allows the City to opt in to the Uniform Public Construction Cost Accounting Act. Approving the Ordinance formalizes the required bid award process as a part of the City's Purchasing Municipal Code.

BACKGROUND:

The Uniform Public Construction Cost Accounting Act (Act) consists of Public Contract Code (PCC) 22000-22045. It was enacted in 1983 to help promote “uniformity of the cost accounting standards and bidding procedures on construction work performed or contracted by public entities in the state” (PCC Section 22001). The Act is a voluntary program available to all public entities in California, but it applies only to those public agencies that have “opted in” to the provisions set forth by the Act using the processes outlined in the Act. A list of all of the agencies - which include a large percentage of the Cities, Counties, School and Special Districts within the State of California - can be reviewed as Attachment C to this report.

The Act currently allows for public project work in the amount of $60,000 or less to be 983
performed by a public agency’s internal labor force, by negotiated contract, or by purchase order (PCC Section 22032(a)). Public projects in the amount of $200,000 or less may use the informal or formal bidding procedures set forth in PCC Section 22032(b) or (c) of the Act.

Public projects at a cost of more than $200,000 must use formal RFP bidding procedures to let the contract pursuant to PCC Section 22032(c).The definition of public project under CUPCCAA includes construction, reconstruction, erection, alteration, renovation, improvement, demolition, installation, painting and repainting, and repair work involving any publicly owned, leased, or operated facility. Public Works regular maintenance projects like landscape maintenance, minor repainting, resurfacing streets at less than and inch, and routine, recurring, and usual work do not apply and would instead be subject to Chapter 3.28 of the City's Purchasing Municipal Code.

Subject to AB 2192, these limits will increase effective January 1, 2025. Based on this increase, public project work in the amount of $75,000 or less will be able to be performed by our internal labor force, by negotiated contract, or by purchase order. Public projects less than or equal to $220,000 would use the informal or formal bidding procedures, and $220,001 and greater would require formal RFP bidding procedures. The Ordinance attached as Attach. B will be effective in January and has been updated to comply with these new limits.

DISCUSSION:

Staff recommend Council adopt the attached resolution in order to opt in to the Act. Opting in to the Act has a number of benefits for the City. It allows the City more leeway in the execution of public works projects under $75,000, and in turn, under $220,000. It speeds up the award process and expedites project delivery, reducing the time, effort, and expense associated with bidding projects under $220,000. Projects over $220,000 will continue to use the formal bid process, and staff can utilize PlanetBids, the City's online bid portal.

FISCAL IMPACT:

While there is no fiscal impact associated with opting in to CUPCCAA, it is estimated that more projects would be completed in a timely manner as a result of the streamlined awards process.

ATTACHMENTS:

Attach A. CUCCAC_Resolution.docx
Attach B. CUCCAC_Ordinance.docx
Attach C. participating_agencies_-_general.pdf
984
RESOLUTION NO. 2024 - _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILDOMAR,

CALIFORNIA, IN THE MATTER OF UNIFORM PUBLIC CONSTRUCTION COST

ACCOUNTING PROCEDURES
WHEREAS, prior to the passage of Assembly Bill No. 1666, Chapter 1054, Statutes of 1983, which added Chapter 2, commencing with Section 22000, to Part 3 of Division 2 of the Public Contract Code, existing law did not provide a uniform cost accounting standard for construction work performed or contracted by local public agencies; and
WHEREAS, Public Contract Code section 22000 et seq., the Uniform Public Construction Cost Accounting Act, establishes such a uniform cost accounting standard; and
WHEREAS, the Commission established under the Act has developed uniform public construction cost accounting procedures for implementation by local public agencies in the performance of or in the contracting for construction of public projects.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WILDOMAR DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:

SECTION 1. UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING
PROCEDURES. Upon adoption of this Resolution, City Council elects under Public Contract Code Section 22030 to become subject to the uniform public construction cost accounting procedures set forth in the Act and to the Commission’s policies and procedures manual and cost accounting review procedures, as they may each from time to time be amended, and directs that the Administrative Services Director notify the State Controller forthwith of this election.

SECTION 2. This resolution shall take effect upon its adoption. 985
2 PASSED, APPROVED, AND ADOPTED this 13th day of November 2024. ______________________________
Bridgette Moore
Mayor
APPROVED AS TO FORM: ATTEST:
______________________________ ______________________________ Thomas D. Jex Janet Morales
City Attorney City Clerk
986
ORDINANCE NO. _______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WILDOMAR, CALIFORNIA, AMENDING CHAPTER 3.32 OF THE MUNICIPAL CODE

OF THE CITY OF WILDOMAR TO PROVIDE INFORMAL AND FORMAL

BIDDING PROCEDURES UNDER THE UNIFORM PUBLIC
CONSTRUCTION COST ACCOUNTING ACT (SECTION 22000, ET SEQ.

OF THE PUBLIC CONTRACT CODE)
WHEREAS, the City of Wildomar desires to elect to participate in the Uniform Public Construction Cost Accounting Act (the Act); and
WHEREAS, the Commission established under the Act has developed uniform public construction cost accounting procedures for implementation by local public agencies in the performance of or in the contracting for construction of public projects; and WHEREAS, it is anticipated that more public projects will be completed in a timely manner as a result of the streamlined awards process and the reduction in paperwork related to the advertising and report filing requirements of the Act; and WHEREAS, on November 13, 2024 at a regular City Council meeting, the City of Wildomar will present a resolution to opt in to the Act; and WHEREAS, opting into the Act requires that the City of Wildomar adopt a bidding ordinance or City Council adopted policy pursuant to Public Contract Code section 22034.

THEREFORE, THE CITY COUNCIL OF THE CITY OF WILDOMAR ORDAINS AS FOLLOWS:

SECTION 1. RECITALS
The above recitals are true and correct and are hereby incorporated herein by this reference.

SECTION 2. AMENDMENT OF SECTION 3.32.010 OF THE WILDOMAR

MUNICIPAL CODE
Section 3.32.010 [Applicability of Chapter 3.24] of Chapter 3.32 [Bidding and Contracts for Public Projects] of Title 3 [Revenue and Finance] of the Wildomar Municipal Code shall be amended in its entirety to read as follows:
“3.32.010 Bid Procedures.

The City Council has adopted a resolution electing to make the City subject to the procedures set forth in the Uniform Public Construction Cost Accounting Act, Section 22000, et seq. of the California Public Contract Code (the “Act”) and has notified the State Controller of such election. As such, public projects, as defined by the Act and in accordance with the limits listed in Section 22032 of the Public Contract Code, may be let 987
to contract by procedures as set forth in Section 22032, et seq., of the Public Contract Code.”
SECTION 3. AMENDMENT OF SECTION 3.32.020 OF THE WILDOMAR

MUNICIPAL CODE
Section 3.32.020 [Bidder’s security] of Chapter 3.32 [Bidding and Contracts for Public Projects] of Title 3 [Revenue and Finance] of the Wildomar Municipal Code shall be amended in its entirety to read as follows:
“3.32.020 Bidder’s security.

When deemed necessary by the Administrative Services Director or designee, notices inviting bids may require that each bid be accompanied by bidder’s security.” SECTION 4. ADDITION OF SECTION 3.32.060 TO THE WILDOMAR

MUNICIPAL CODE
Section 3.32.060 [Dollar Amount of Public Project] of Chapter 3.32 [Bidding and Contracts for Public Projects] of Title 3 [Revenue and Finance] of the Wildomar Municipal Code shall be added in its entirety to read as follows:
“3.32.060 Dollar Amount of Public Project.

The dollar amount thresholds provided in this section shall automatically adjust upon the effectiveness of any adjustment notification by the State Controller in accordance with California Public Contract Code Section 22020 et seq., without the necessity of amending this section or any division herein to reflect any such adjustment.

1. Public projects of $75,000 or less may be performed by City employees by force account, by negotiated contract or by purchase order. Per California Public Contract Code Section 22032, no bidding is required. Such contracts may be approved and executed by the City Manager or designee.

2. Public projects of $75,000.01 to $220,000 may be let to contract by informal bidding procedures as set forth in Section 3.32.040 below.

3. Public projects of more than $220,000 shall, except as otherwise provided in this section, be let to contract by formal bidding procedure as set forth in Section

3.32.050 below.”
SECTION 5. ADDITION OF SECTION 3.32.070 TO THE WILDOMAR

MUNICIPAL CODE
Section 3.32.070 [Informal Bidding Procedures] of Chapter 3.32 [Bidding and Contracts for Public Projects] of Title 3 [Revenue and Finance] of the Wildomar Municipal Code shall be added in its entirety to read as follows:
“3.32.070 Informal Bidding Procedures.

Projects eligible for informal bidding, pursuant to subsection (b) of Section 22032 of the 988
Public Contract Code, shall be awarded to the lowest responsive and responsible bidder in accordance with the Uniform Construction Cost Accounting Act, California Public Contract Code Section 22034 et seq., as follows:

1. Contractors list: The Director of Public Works shall maintain a list of qualified contractors identified according to categories of work. Such list shall comply with the requirements of Public Contract Code Section 22034.

2. Notice Inviting Informal Bids: Pursuant to subsection (b) of Section 22032 of the Public Contract Code, A notice inviting informal bids shall be prepared, which shall describe the project in general terms, describe how to obtain more detailed information about the project, and state the time and place for the submission of bids. The notice inviting informal bids shall be circulated using one or both of the following alternatives:
a) Notices inviting informal bids may be mailed, faxed, or emailed not less than ten days before bids are due, to all contractors for the category of work to be bid as shown on the list developed in accordance with this section. b) Notices inviting informal bids may be mailed to all construction trade journals as specified by the California Uniform Construction Cost Accounting Commission in accordance with section 22036 of the Public Contract Code.

Additional contractors and/or construction trade journals may be notified at the discretion of the department/agency soliciting bids, provided however:
1) If the product or service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice inviting informal bids may be sent exclusively to such contractor or contractors.

3. Award of Contracts: The informal bids for public projects shall be awarded by the City Manager or his designee.”
SECTION 6. ADDITION OF SECTION 3.32.080 TO THE WILDOMAR

MUNICIPAL CODE
Section 3.32.080 [Formal Bidding Procedures] of Chapter 3.32 [Bidding and Contracts for Public Projects] of Title 3 [Revenue and Finance] of the Wildomar Municipal Code shall be added in its entirety to read as follows:
“3.32.080. Formal Bidding Procedures.

Public projects to be let pursuant to formal bidding procedures shall be awarded to the lowest responsive and responsible bidder in accordance with, but not limited to, the procedures set forth below.

1. Notice inviting formal bids. The following are required:
a) Contents of notice. Notice inviting formal bids shall state the time and place for the receiving and opening of sealed bids and distinctly describe the project. b) Publication of notice. The notice shall be published at least 14 calendar days before the date of opening the bids in a newspaper of general circulation, printed and published in the City, or otherwise comply with the requirements of California Public Contracts Code Section 22037.
c) Electronic transmission of notice. The notice inviting formal bids shall also be sent electronically, if available, by either facsimile or electronic mail and mailed 989
to all construction trade journals as specified in California Public Contract Code Section 22036. The notice shall be sent at least 15 calendar days before the date of opening the bids.
d) Per California Labor Code Section 1771.1, the notice must state that a contractor or subcontractor is not qualified to bid on, be last in a bid proposal for, or perform work on a project unless it is registered and qualified under California Labor Code Section 1725.5.
e) Instructions to bidders. The notice inviting formal bids should also identify the contract documents to be considered, the availability of information, any scheduled pre-bid meetings, bid protest procedures, addenda, and any other procedures to be followed for bids to be considered.
f) Bid package. The bid package should include the following:
1) The proposal form;
2) Submission of sealed bids;
3) A public bid opening;
4) Award to the lowest, responsive and responsible bidder; 5) City reservation in notice inviting bids of the right to reject any or all bids and to waive minor irregularities;
6) Award and execution of a written contract;
7) Reference to applicable state or federally funded project requirements; 8) Performance and payment bonds;
9) Listing of subcontractors; and
10) Any other materials required by the City in the bid documents.

SECTION 7. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
Adoption of this ordinance is not subject to CEQA, as it is not a “Project” as defined by CEQA. (PRC Section 21065 and CEQA Guidelines Section 15378). The Guidelines define a "project" as the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and that is …an activity directly undertaken by any public agency including … public works construction and related activities. Under CEQA, "projects" must be discretionary, public agency actions which have the potential of affecting the environment. A project does not include organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.

SECTION 8. SEVERABILITY
If any chapter, sections, subsections, subdivisions, sentences, clauses, phrases, or portion of this ordinance, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision will not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have adopted this ordinance, and each chapter, sections, subsections, subdivisions, sentences, clauses, phrases, or portion thereof, irrespective of the fact that any one or 990
more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

SECTION 9. EFFECTIVE DATE
This ordinance shall take effect thirty (30) days after its passage by the City Council.

SECTION 10. CITY CLERK ACTION
The City Clerk is authorized and directed to cause this Ordinance to be published within fifteen (15) days after its passage in a newspaper of general circulation and circulated within the City in accordance with Government Code Chapter 36933(a) or, to cause this Ordinance to be published in the manner required by law using the alternative summary and posting procedure authorized under Government Code Chapter 39633(c).

INTRODUCED AND APPROVED FOR FIRST READING this 13th day of November, 2024.
___________________________
Bridgette Moore
Mayor
APPROVED AS TO FORM: ATTEST:
____________________________ ___________________________ Thomas D. Jex Janet Morales, CMC
City Attorney City Clerk
991
Opted-in Participating Agencies
AGENCY
City
City of Adelanto
City of Alameda
City of Aliso Viejo
City of American Canyon
City of Anderson
City of Angels
City of Antioch
City of Arcata
City of Arroyo Grande
City of Artesia
City of Atascadero
City of Atwater
City of Auburn
City of Avalon
City of Azusa
City of Baldwin Park
City of Banning
City of Barstow
City of Beaumont
City of Bellflower
City of Belmont
City of Belvedere
City of Benicia
City of Beverly Hills
City of Bishop
City of Blue Lake
City of Bradbury
City of Brawley
City of Brea
City of Brentwood
City of Brisbane
City of Buellton
City of Burlingame
City of Calabasas
City of Calexico
Thursday, September 5, 2024

COUNTY DATE - OPTED IN
San Bernardino 5/9/2007
Alameda 1/17/1990
Orange 5/16/2018
Napa County 9/19/2023
Shasta 1/21/1986
Calaveras 8/18/2009
Contra Costa 11/24/1998
Humboldt 8/1/2001
San Luis Obispo 4/13/1999
Los Angeles 5/11/2009
San Luis Obispo 5/27/1986
Merced 7/28/2008
Placer 8/11/2003
Los Angeles 12/4/2018
Los Angeles 8/22/1999
Los Angeles 10/15/2014
Riverside 8/27/2019
San Bernardino 4/4/2011
Riverside 11/7/2017
Los Angeles 8/24/2020
San Mateo 1/11/2011
Marin 1/5/1987
Solano 4/3/1990
Los Angeles 9/18/1996
Inyo 5/28/2019
Humboldt 5/22/1984
Los Angeles 6/17/1997
Imperial 10/31/2019
Orange 8/17/2004
Contra Costa 4/28/2009
San Mateo 10/28/1991
Santa Barbara 2/1/1992
San Mateo 8/2/1993
Los Angeles 2/22/2012
Imperial 1/21/2014