HomeMy WebLinkAboutCEA SERVICES LLC; DBA: CURAT4ED CANNABIS
PBA5/8/2025
Contract NumberNameDESCRIPTIONExpiration DateOK to terminate? Y/NIf Y, please sign
A-2017-369-49360 PACIFIC, LLC DBA BNB DISTRO OPERATING AGREEMENT FOR NON-RETAIL COMMERCIAL CANNABIS BUSINESSES12/21/2022YAP
A-2017-369-4355 OC COLLECTIVE INC DBA JUNGLE BOYSOPERATING AGREEMENT FOR NON-RETAIL COMMERICIAL CANNABIS BUSINESSES12/31/2022YAP
A-2017-369-01-0155 OC COLLECTIVE, DBA BLUM, A CORPORATIONEXTENSION OF OPERATING AGREEMENT FOR ADULT USE (NON-MEDICAL) CANNABIS 12/31/2022YAP
A-2017-369-5955 OC COLLECTIVE, DBA BLUM, A CORPORATIONCOMMERCIAL CANNABIS BUSINESS12/31/2022YAP
A-2017-369-32AAA HEALTH CENTER OPERTATING AGREEMENT FOR NON-RETAIL COMMERCIAL CANNABIS BUSINESSES12/31/2022YAP
A-2017-378ADAMS ST. ENTERPRISES, LLC, DBA: TOUCHSTONE AND DBA TOUCHSTONE SNANON-MEDICINAL COMMERCIAL CANNABIS BUSINESS OPERTATING AGREEMENT 12/31/2020YAP
A-2014-243AECOM TECHNICAL SERVICES ENVIRONMENTAL CONSULTANT/ENVIRONMENTAL SERVICES/TECHINCAL STUDIES 10/21/2017YFV
A-2018-141-01AECOM TECHNICAL SERVICES INC.PLANNING SERVICES ON AN AS-NEEDED BASIS 6/30/2021YFV
A-2015-105ALA CONSTRUCTION BOARD-UP SERVICES TO SECURE PROPERTY/BUILDING IN HAZARDOUSD CONDITIONS5/4/2018YFV
A-2017-369-38ALTO BRANDSOPERATING AGREEMENT FOR NON-RETAIL COMMERICIAL CANNABIS BUSINESSES12/31/2022YAP
A-2017-171AMERICAN ENGINEERING LABORATORIES INCEXPECTED INSPECTION SERVICES 7/5/2020YFV
A-2017-265-03ARHITECTURAL RESOURCES GROUP, INCQUALIFIED CONSULTANT SERVICES/ENVIRONMENTAL SERVICES10/2/2020YFV
A-2017-265-04ARHITECTURAL RESOURCES GROUP, INCEXTENSION (1) QUALIFIED CONSULTANTS TO PROVIDE ENVIRONMENTAL SERVICES10/2/2021YFV
A-2020-241-01ARHITECTURAL RESOURCES GROUP, INCON-CALL ENVIRONMENTAL AND PLANNING SERVICES AND SUPPLEMENTAL STAFF11/30/2023YFV
A-2020-241-02AASCENT ENVIRONMENTALSIDE LETTER11/30/2024YFV
A-2002-222-1ATKINSON, SUSAN2ND AMEND TERM EXTENSION ARBITRATION/MEDIATION SVCS NTE $10,0006/30/2004YFV
A-2020-261AVOLVE SOFTWAREAMENDMENT FOR ELECTRONIC PLAN SUBMITTAL?N
A-2017-369-77BROADWAY HEALTH CENTER, DBA OC KUSH OPERTATING AGREEMENT FOR NON-RETAIL COMMERCIAL CANNABIS BUSINESSES12/31/2022YAP
A-2017-168BUREAU VERITAS NORTH AMERICA INC.EXPEDITED INSPECTION SERVICES7/5/2020YFV
A-2017-369-60CALIFORNIA ORGANICS LLCOPERATING AGREEMENT FOR NON- RETAIL COMMERCIAL CANNABIS BUSINESSES12/31/2022YAP
A-2017-369-55CANNAVISION, LLCOPERATING AGREEMENT FOR NON- RETAIL COMMERCIAL CANNABIS BUSINESSES12/31/2022YAP
A-2017-369-42CARDEN LABS, INC.OPERATING AGREEMENT FOR NON- RETAIL COMMERCIAL CANNABIS BUSINESSES12/31/2022YAP
A-2017-369-33CB LABS SANTA ANACOMMERCIAL CANNABIS BUSINESSES12/31/2022YAP
A-2018-308CB LABS, SANTA ANA, LLCCANNABIS TESTING FACILITY/LABORATORY12/31/2020YAP
A-2017-369-10CBD INC., DBA FROM THE EARTH, A MUTUAL BENEFIT CORPORATIONCANNABIS RETAIL BUSINESS - PURSUANT TO CHAPTER 4012/31/2020YAP
A-2017-397CDXX VIRTUOSI GROUP LLC, dba KAYA FARMSOPERATING AGREEMENT FOR NON-MEDICINAL COMMERCIAL CANNABIS BUSINESSES12/31/2020YAP
A-2017-397-01CDXX VIRTUOSI GROUP LLC, dba KAYA FARMSNON-MEDICINAL COMMERCIAL CANNABIS BUSINESSES12/31/2022YAP
A-2017-384-01CEA SERVICES LLC; DBA: CURAT4ED CANNABISEXTENSION OF NON-MEDICINAL COMMERCIAL CANNABIS BUSINESS 12/31/2022YAP
A-2015-106CEDELCO CONSTRUCTIONBOARD-UP SERVICES TO SECURE PROPERTY/BUILDING IN HAZARDOUS CONDITIONS 5/4/2018YFV
A-2016-317CENTURY STRUCTURAL ENGINEERING CO., INCPLAN CHECK SERVICES11/15/2019YFV
A-2015-220CENTURY STRUCTURAL ENGINEERING CO., INC.PLAN CHECK SVCS $125,00O PER CONSULTANT, NTE $500,000 FOR A 3-YR TERM10/16/2018YFV
A-2017-265-06-01CIRCLEPOINTFIRST EXTENSION -QUALIFIED CONSULTANTS TO PROVIDE ENVIRONMENTAL SERVICES 10/2/2021YFV
A-2017-265-06-01CIRCLEPOINTFIRST EXTENSION -QUALIFIED CONSULTANTS TO PROVIDE ENVIRONMENTAL SERVICES10/2/2021YFV
A-2020-241-06CIRCLEPOINTON-CALL ENVIRONMENTAL AND PLANNING SERVICES11/23/2023YFV
A-2017-369-29CLS HOLDINGS LLC, CANNABIS LOGISTICAL SOLUTIONOPERATING AGREEMENT FOR NON-RETAIL COMMERCIAL CANNABIS BUSINESSES12/31/2022YAP
A-2017-369-63CLS HOLDINGS, LLCOPERATING AGREEMENT FOR NON-RETAIL COMMERCIAL CANNABIS BUSINESSES12/31/2022YAP
A-2015-219CSG CONSULTANTS, INC.PLAN CHECK SVCS $125,00O PER CONSULTANT, NTE $500,000 FOR A 3-YR TERM10/16/2018YFV
A-2015-219CSG CONSULTANTS, INC.PLAN CHECK SVCS $125,00O PER CONSULTANT, NTE $500,000 FOR A 3-YR TERM10/16/2018YFV
A-2016-316CSG CONSULTANTS, INC.PLAN CHECK SERVICES11/15/2019YFV
A-2016-316CSG CONSULTANTS, INC.PLAN CHECK SERVICES11/15/2019YFV
A-2017-369-23-01DBO INVESTMENTS SA, LLC, dba FROM THE EARTHCANNABIS RETAIL BUSINESS12/31/2022YAP
A-2013-172DE LA BARCA, EDDIE-UTILITY CABINET PILOT ART PROGRAM-VARIOUS ARTISTS -- CORE NO.UTILITY CABINET PILOT ART PROGRAM3/10/2014YFV
A-2013-172ADE LEON, ALICIA-UTILITY CABINET PILOT ART PROGRAM-VARIOUS ARTISTSUTILITY CABINET PILOT ART PROGRAM3/10/2014YFV
A-2020-241-10-01DE NOVO PLANNING GROUPFIRST EXTENSION- EXTEND TERMS FOR AN ADDITIONAL YEAR11/30/2024YFV
A-2017-265-12-01ENVIRONMENT PLANNING DEVELOPMENT SOLUTIONS, INC. (EPD SOLUTIONS, INC.)FIRST EXTENSION FOR QUALIFIED CONSULTANTS TO PROVIDE ENVIRONMENTAL SERVICES10/2/2021YFV
A-2017-390-01AEXCELBIS LABS, LLCNON-MEDICINAL COMMERCIAL CANNABIS BUSINESSES12/31/2022YAP
A-2017-265-14FCS INTERNATIONAL, INC. (FIRST CARBON SOLUTIONS)ENVIRONMENTAL/TECHNICAL STUDIES10/2/2020YFV
A-2020-241-19FEHR & PEERSON-CALL ENVIRONMENTAL/PLANNING SERVICES11/30/2023YFV
A-2017-369-02FOUR TWENTY GREEN STREET, INC.COMMERCIAL CANNABIS BUSINESS12/31/2020YAP
A-2017-393FOUR TWENTY GREEN STREET, INC. DBA THE SPOTCOMMERCIAL CANNABIS BUSINESS12/31/2020YAP
A-2017-384
INSURANCE NOT RELREi)
WORK MAY PROCEED
CLERK OF COUNCIL
r�..,-r, ��� � � ���� OPERATING AGREEMENT FOR NON -MEDICINAL
COMMERCIAL CANNABIS BUSINESSES
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This This Operating Agreement ("AGREEMENT") is dated June 6, 2019, between the City of Santa
Ana, a charter city and municipal corporation CCITY") and CEA Services LLC, dba Curated
Cannabis ("OPERATOR"), collectively referred to as "the Parties". This AGREEMENT shall
become effective on the date that OPERATOR is issued a Regulatory Safety Permit by CITY for
the operation of a commercial cannabis business conducting MANUFACTURING,
DISTRIBUTION, AND CULTIVATION (PROCESSING ONLY) services in whole or in part of its
operations transacted and carried -on by OPERATOR at the following subject property location,
3031 South Shannon Street, Santa Ana, CA 92704.
A. Intent. The purpose of this Operating AGREEMENT is to ensure positive
community impacts from commercial cannabis business operations through local hiring and
focal sourcing, community benefit and sustainable business practices, and the collection of
required fees and taxes as applicable for the operation of a commercial cannabis business
and to provide mitigation options to be used by CiTY to compensate for Impacts to CITY
services, residents, and/or businesses as set forth in Santa Ana Municipal Code Chapter 40.
The Parties agree that this AGREEMENT confers substantial private benefits on OPERATOR
which should be balanced by commensurate public benefits. As part of the cannabis
Regulatory Safety Permit process, OPERATOR agrees to enter into this AGREEMENT.
OPERATOR acknowledges that CITY and OPERATOR have had extensive negotiations and
proceedings prior to entering into this AGREEMENT. OPERATOR has elected to execute
this AGREEMENT as it provides OPERATOR with important economic benefits. Accordingly,
the Parties intend to provide consideration to the public to balance the private benefits
conferred on OPERATOR by providing mitigation measures to the public and to pay for CITY
services.
B. Local Hiring and Sourcing, OPERATOR agrees to use its reasonable efforts to
hire qualified City of Santa Ana residents living In Santa Ana to work at its commercial
cannabis businesses. OPERATOR shall also use reasonable efforts to retain the services of
qualified contractors and suppliers who are located in the City of Santa Ana or who employ a
significant number of City of Santa Ana residents. OPERATOR shall make a good faith effort
to advertise on various social media sites, at local job fairs, and through public agencies and
organizations.
C. Community Benefit and Sustainable Business Practices Plan. OPERATOR
agrees to submit a Community Benefit and Sustainable Business Practices Plan ('"Plan") to
CITY that is hereby attached and Incorporated into this AGREEMENT as ("EXHIBIT A").
Said Plan shall detail OPERATOR's experience working with community -based groups such
as school districts, college districts, city or county agencies, non-profit organizations, artist or
downtown groups. The Plan shall also include a description of OPERATOR's efforts for
recruiting and hiring local persons and businesses. Said Plan must also outline commitments
by OPERATOR to engage its staff in community service events or programs in the City of
Santa Ana. Plan must also outline and address sustainable business practices. OPERATOR
In
shall adequately document that it has met the Plan's obligations and commitments as a
condition of renewal/extension of this AGREEMENT upon expiration of the initial term and
any extensions.
2. Records Inspection Examination god Audit
OPERATOR acknowledges and agrees that CITY is empowered under this Agreement
to inspect, examine and audit OPERATOR's books and records (including tax filings and
returns), to ascertain the amount of operating fees due and owing. CITY or its authorized
agents shall have the power and authority to conduct a full inspection, examination and audit
of such books and records (including tax filings and returns) at any reasonable time, including
but not limited to, during normal business hours. In the event any such books, records, tax
filings and returns cannot be made fully available within the City of Santa Ana, OPERATOR
acknowledges and agrees that it shall reimburse CITY for the cost of all transportation,
lodging, meals, portal-to-portal travel time, and other incidental costs reasonably incurred by
CITY or its authorized agents in obtaining said full inspection, examination and audit. In the
event that said records inspection, examination and audit determines that a net operating
agreement fee payment deficiency of greater than Five Percent (5%) exists; OPERATOR
acknowledges and agrees that it shall reimburse CITY for the full cost of said records
inspection, examination and audit reasonably incurred by CITY or its authorized agents.
3. Term.
This AGREEMENT shall start on the date indicated above and shall terminate on
December 31, 2020 regardless of starting date unless terminated earlier in accordance with
Section 9 or 10 of this AGREEMENT. The AGREEMENT will have one (1) two-year extension
period until December 31, 2022 exercisable by a writing executed by the City Manager and
City Attorney's Office with the approval of OPERATOR.
4. Business License Required.
A valid City of Santa Ana Business License is required for all persons engaged in
transacting and carrying on any commercial cannabis business activity in the City of Santa
Ana. It is unlawful for any person or legal entity to commence, transact or carry -on cannabis
business activity in the City of Santa Ana without first having procured a City of Santa Ana
cannabis business license.
5. Operating Commercial Cannabis Business
OPERATOR shall not operate a commercial cannabis business authorized under the
Santa Ana Municipal Code unless:
A. it is the holder of a valid Regulatory Safety Permit issued by CITY in accordance with
the procedures and requirements of Article 1 of Chapter40, of the Santa Ana Municipal
Code; and
B. At such time as the State of California requires cannabis business facilities and
businesses to hold a valid license or permit issued by the State of California, it also
holds such license or permit; unless, however, such permit or license is subsequently
2
not required by the State of California for the type of cannabis facility or business
operation that is the subject of this AGREEMENT.
C. OPERATOR remains in compliance with any and all other laws and regulations
pertaining to commercial cannabis businesses.
D. OPERATOR shall remain in compliance with the operating requirements applicable to
commercial cannabis businesses contained in the City's Municipal Code.
6. OPERATOR Indemnification of CITY.
A. OPERATOR will indemnify CITY from any claims, damages, injuries, or liabilities of
any kind whatsoever sustained or incurred by CITY resulting from entering into this
AGREEMENT, and OPERATOR's performance and/or breach of this AGREEMENT.
B. OPERATOR agrees to defend, at its sole expense, any action against CITY, its
agents, officers, and employees related to this AGREEMENT. OPERATOR agrees to
indemnify and reimburse CITY for any court costs and attorney fees that CITY may be
required to pay as a result of any legal challenge related to this AGREEMENT and/or
CITY's approval of a Regulatory Safety Permit. CITY may, at its sole discretion,
participate at its own expense in the defense of any such action, but such participation
shall not relieve the OPERATOR of its obligation hereunder,
7. OPERATOR Compliance with Laws.
OPERATOR agrees to comply with the City of Santa Ana Charter and Municipal Code,
including but not limited to Chapters 18, 21 and 40, and the laws and regulations of the State
of California.
8. Default and Termination for Cause.
This AGREEMENT may be terminated by CITY for cause with thirty (30) days' written
notice to OPERATOR. Cause as used in this section, is defined as:
A. Failure to comply with the terms of the City of Santa Ana Cannabis Regulatory Safety
Permit Issued to OPERATOR by CITY;
B. Failure of OPERATOR to maintain a valid active City of Santa Ana Business License
as the commercial cannabis business approved by the Regulatory Safety Permit and
as operating;
C. Failure of OPERATOR to comply with the requirements of the Community Benefits
and Sustainable Business Practices Plan;
D. Unauthorized transfer by OPERATOR of the City of Santa Ana cannabis business
Regulatory Safety Permit issued by CITY;
E. Failure by OPERATOR to accurately report gross receipts information or other data
necessary for CITY to calculate/confirm operating agreement fees;
Failure by OPERATOR to pay operating agreement fees and related reimbursement
costs within thirty (30) days of the date those fees are due;
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In
G. Failure by OPERATOR to cooperate with CITY or CITY's authorized agents in any
inspection, examination and audit of OPERATOR's commercial cannabis business
books and records (including tax filings and returns).
H. OPERATOR shall cure the default resulting from the cause for termination within thirty
(30) days of the date of the notice of termination, If OPERATOR fails to cure the
default within thirty (30) days of the date of the notice of termination for cause, this
AGREEMENT will be terminated.
I. This AGREEMENT will automatically terminate if:
i. OPERATOR's Regulatory Safety Permit is revoked by CITY or is not renewed by
CITY, or
ii. OPERATOR transfers its Regulatory Safety Permit pursuant to Santa Ana
Municipal Code section 40-12.
9. Termination Without Cause.
Upon mutual written agreement of the Parties, this AGREEMENT may be terminated with
thirty (30) days' notice.
10. Termination -Effect, on Prior Obligations
Upon any termination of this AGREEMENT, OPERATOR's obligation to report and
remit operating agreement fees due and payable under the terms of this AGREEMENT for
each month or fraction of a month of a cannabis business operation engaged In within the City
of Santa Ana prior to termination of this AGREEMENT shall continue to be in effect. Past due
penalties and late interest charges shall continue to accrue and be applicable until all
operating fees due under this AGREEMENT are paid in full. OPERATOR's liability for any
remaining unpaid past due penalties andlor late interest charges shall continue until fully
satisfied.
11. Remedies.
A. It is acknowledged by the parties that CITY would not have entered into this
AGREEMENT If it were to be liable in damages under this AGREEMENT, or with
respect to this AGREEMENT or the application thereof, except as hereinafter
expressly provided.
B. Each of the parties hereto may pursue any remedy at law or equitable relief available
for the breach of any provision of this AGREEMENT, except that CITY shall not be
liable in monetary damages, unless expressly provided for in this AGREEMENT.
C. Any dispute, claim or controversy arising out of or relating to this Agreement or the
breach, termination, enforcement, interpretation or validity thereof, including the
determination of the scope or applicability of this agreement to arbitrate, shall be
determined by arbitration in Orange County California before three arbitrators. The
arbitration shall be administered by JAMS pursuant to its Comprehensive Arbitration
Rules and Procedures pursuant to JAMS' Streamlined Arbitration Rules and
Procedures. Judgment on the Award may be entered in any court having jurisdiction.
This clause shall not preclude parties from seeking provisional remedies in aid of
arbitration from a court of appropriate jurisdiction.
12. Reimbursement Clause.
In consideration of the time and costs incurred by CITY in the drafting and implementation
of this AGREEMENT, OPERATOR agrees to pay $2,500 to CITY within thirty (30) days of
execution of this AGREEMENT.
13. Attorney Fees and Costs.
In any action or proceeding between CITY and OPERATOR brought to interpret or enforce
this AGREEMENT, or which in any way arises out of the existence of this AGREEMENT or is
based upon any term or provision contained herein, the "prevailing party" in such action or
proceeding shall be entitled to recover from the non -prevailing party, in addition to all other
relief to which the prevailing party may be entitled pursuant to this AGREEMENT, the
prevailing party's reasonable attorneys' fees and litigation costs, in an amount to be
determined by the court. The prevailing party shall be determined by the court in accordance
with California Code of Civil Procedure Section 1032. Fees and costs recoverable pursuant
to this Section 17 include those incurred during any appeal from an underlying judgment and
in the enforcement of any judgment rendered in any such action or proceeding.
14. Notice.
Any notice, tender, demand, delivery, or other communication pursuant to this
AGREEMENT shall be in writing and shall be deemed to be properly given if delivered in
person or mailed by first class or certified mall, postage prepaid, or sent by fax or other
telegraphic communication in the manner provided in this section, to the following persons:
To CITY: Clerk of the City Council
City of Santa Ana
20 Civic Center Plaza (M-30)
P.Q. Box 1988
Santa Ana, CA 92702-1988
Fax 714-647-6956
Copies to: Executive Director — Planning and Building Agency
City of Santa Ana
20 Civic Center Plaza (M-20)
P.Q. Box 1988
Santa Ana, California 92702-1988
Fax 714-973-1461
City Attorney
City of Santa Ana
20 Civic Center Plaza (M-29)
P.Q. Box 1988
Santa Ana, California 92702-1988
Fax 714-647-6515
CEA Services LLC
Curated Cannabis
3031 South Shannon Street I Santa Ana, CA 92704
Will Sun I Chief Executive Officer
T: +1-917-715-0469
E: will.sun@curated-cannabis.com
A party may change its address by giving signed notice in writing to the other party.
Thereafter, any communication shall be addressed and transmitted to the new address. If
sent by mail, communication shall be effective or deemed to have been given three (3) days
after it has been deposited in the United States mail, duly registered or certified, with postage
prepaid, and addressed as set forth above. if sent by fax or email document attachment,
communication shall be effective or deemed to have been given twenty-four (24) hours after
the time set forth on the transmission report issued by the transmitting facsimile machine,
addressed as set forth above. For purposes of calculating these time frames, weekends,
federal, state, County or City holidays, or City Hall closure dates shall be excluded.
1& Exclusivity and Amendment.
This AGREEMENT represents the complete and exclusive statement between CITY and
OPERATOR, and supersedes any and all other agreements, oral or written, between the
parties, This AGREEMENT may not be modified except by written instrument signed by CITY
and by an authorized representative of OPERATOR. Each party to this AGREEMENT
acknowledges that no representations, inducements, promises or agreements, orally or
otherwise, have been made by any party, or anyone acting on behalf of any party, which are
not embodied herein.
16. Assignment.
OPERATOR may not assign or transfer any interest herein without the prior written
consent of CITY and any such assignment or transfer without CITY's prior written consent
shall be considered null and void.
17. piscrir ination.
OPERATOR shall not discriminate because of race, color, creed, religion, sex, marital
status, sexual orientation, age, national origin, ancestry, or disability, as defined and
prohibited by applicable law, in the recruitment, selection, training, utilization, promotion,
termination or other employment related activities. OPERATOR affirms that it is an equal
opportunity employer and shall comply with all applicable federal, state and local labor laws
and regulations.
18. Jurisdiction -Venue.
This AGREEMENT has been executed and delivered in the State of California and the
validity, interpretation, performance, and enforcement of any of the clauses of this
AGREEMENT shall be determined and governed by the laws of the State of California. Both
parties further agree that Orange County, California, shall be the venue for any action or
proceeding that may be brought or arise out of, in connection with or by reason of this
AGREEMENT.
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19. AMMMblll .
If any part of this AGREEMENT is found to conflict with applicable local or state laws or
regulations, such part shall be inoperative, null and void insofar as it conflict with said laws or
regulations, or may be modified or suspended as may be necessary to comply with any local
or state law or regulation but the remainder of the AGREEMENT shall continue in full force
and effect.
This AGREEMENT may be executed in counterparts, each of which shall be deemed an
original but all of which together shall constitute one and the same instrument. The execution
of this AGREEMENT may be by actual, facsimile or electronic signature.
21. Disclaimer,
Despite California's commercial cannabis laws and the terms and conditions of this
AGREEMENT or any Regulatory Safety Permit issued pertaining to OPERATOR or the
hereinabove specified property location, California commercial cannabis cultivators,
transporters, distributors, cannabis testing facility/laboratory businesses or possessors may
still be subject to arrest by state or federal officers and prosecuted under state or federal law.
The Federal Controlled Substances Act, 21 USC § 801 et. seq., prohibits the manufacture,
manufacturing, and possession of cannabis without any exemptions for medical or non -
medicinal use.
Each undersigned represents and warrants that its signature hereinbelow has the power,
authority and right to bind their respective parties to each of the terms of this AGREEMENT,
and shall indemnify CITY fully, including reasonable costs and attorney's fees, for any injuries
or damages to CITY in the event that such authority or power is not, in fact, held by the
signatory or is withdrawn.
-Signature Page Below
IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT the date and year
first above written.
LAMM
r
NORMA MITRE
Acting Clerk of the Council
APPROVED AS TO FORM:
SONIA R. CARVALHO
City Attorney
By:lr
Lisa Storck
Assistant City Attorney
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CITY OF SANTA ANA
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ManagerCity
11PERATOR
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SIGNATURE:
Community Benefit and Sustainable Business Practices Plan
Community Based Programs. CEA Services, LLC community benefits strategy objectives are
to establish a process by which the community, including residents and businesses, can express
themselves regarding the Company's operations; to inform the community about cannabis
education, issues and developments; and to ensure the Company's approach genuinely reflects
the community's needs. The funding for the community benefits will come from profits generated
from the Company's commercial cannabis operations.
The Company's community benefits strategy will be formalized as park of the Company's standard
operating procedures and will designate Christian Manrodt, the Company's Chief Operating
Officer, to oversee the development and implementation of the community benefits strategy. Mr.
Manrodt will be responsible for the management of the program/activities, developing the
program's operational budget, and establishing a system for tracking and reporting on its
performance.
Within 12 months after receiving our RSP from the City of Santa Ana, the Company will donate
$2,500 in cash to Habitat for Humanity of Orange County (2200 Ritchey Street I Santa Ana, CA
92705). In addition, the promptly after receiving our RSP from the City of Santa Ana, the
Company will donate our excess building materials and supplies from our tenant improvement
Project to ReSTORE Santa Ana, including brand new insulated panels that cost the Company
over $7,500. The aggregate contribution CEA Services, LLC would donate to Habitat for
Humanity of Orange County would be $10,000 within 12 months of receiving our RSP.
Furthermore, on an annual basis through the period of this Operating Agreement, the Company
will donate 1% of its net income from the previous fiscal year ending December 31 to Orange
County United Way. The fiscal year net income will be as -reported on the Company's financial
statements and prepared in accordance with GAAP. The donation will be paid within 30 calendar
days of the Company finalizing its financial statements for the reporting period. The Company's
executive management team shall be responsible for making the donation to Orange County
United Way.
The Company will also participate in an ongoing dialogue with the City of Santa Ana's law
enforcement agencies to ensure that there are no instances of concern. Local police and fire
personnel will be invited to the facilities for updates and tours to ensure the Company's facility is
not vulnerable to break-in and the surrounding community businesses are secure. The Company
will also be available for training sessions with the Santa Ana Code Enforcement, Public Works,
and Police Department in best practices for identifying and mitigating the risks associated with
unlicensed commercial cannabis activities. The Company will perform regular outreach to
community watch groups to apprise them of activities taking place.
Local Recruiting and Hiring. CEA Services, LLC will use good faith efforts to recruit and hire
qualified residents of the City of Santa Ana for any new open positions. The Company will
advertise open positions: 1) at local job fairs and events; 2) through public
agencies/organizations; and 3) various social media sites (e.g. Linkedln, Facebook, Instagram,
and Twitter). The Company will establish a relationship with Santa Ana College, specifically its
Business Division, to participate in any job fairs and establish internships for existing students.
The Company will contact the Madeline Grant, Dean of the Business Division, at Santa Ana
College promptly after receiving its Regulatory Safety Permit from the City of Santa Ana and
execution of this Operating Agreement. The Company will also work with the local chapter 324
0
of the United Food and Commercial Workers Union to identify and source qualified candidates
who reside in the City of Santa Ana.
Furthermore, the Company will use good faith efforts to retain services of qualified contractors
and suppliers who are either: 1) located within the City of Santa Ana; or 2) employ a significant
number of residents of the City of Santa Ana. The Company will include this information in any
Requests for Proposals ("RFPs") sent to contractors and suppliers for competitive project bids.
Sustainable Business Practices. The Company's sustainable business practices are codified
within the Company's existing standard operating procedures, including:
• Recyclable Materials
o Packaging materials for cannabis products, such as recycled/recyclable glass
containers and packaging
o Paper towels and toilet paper manufactured from recycled paper
o Green Seal certified cleaning products when applicable
o Printing and writing paper
• Water Conservation
o Use low flow (ADA compliant) toilets
o Water efficient landscaping
10