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HomeMy WebLinkAbout1815 CARNEGIE SANTA ANA CORP. DBA BLUM CARNEGIEINSURANCE NOT REQUIRED A-2017-400 .�Q� WnRK he a,rrrq AGREEMENT FOR O VbA (0) NOV 13 2A19PERATING COMMERCIAL CANNABIS B S N SISES RETAIL This Operating Agreement ("AGREEMENT") is dated May 29th, 2019, between the City of Santa Ana, a charter city and municipal corporation ("CITY") and 1815 Carnegie Santa Ana Corp., dba Blum Carnegie ("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 ADULT- USE- RETAIL services in whole or in part of its operations transacted and carried -on by OPERATOR at the following subject property location, 1815 Carnegie Avenue, Santa Ana, CA 92705. 1. Public Benefit. A. Intent. The purpose of this Operating AGREEMENT is to ensure positive community impacts from commercial cannabis business operations through local hiring and local 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 1 practices. OPERATOR 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 and 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 Chapter 40, 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 Ig 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. 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. 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; 3 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: 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 and/or 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 mail, 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.O. 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.O. Box 1988 Santa Ana, California 92702-1988 Fax 714-973-1461 City Attorney City of Santa Ana 20 Civic Center Plaza (M-29) P.O. Box 1988 Santa Ana, California 92702-1988 Fax 714-647-6515 5 To OPERATOR: Michael Nahass 1815 Carnegie Santa Ana Corp., dba Blum Carnegie 1815 Carnegie Avenue, Santa Ana, CA 92705 Tel (949) 444-8021 Email nmori@terratechcorp.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. 15. 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. Discrimination. 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. 19. Severability. 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. 20. Counterparts. 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. 22. Authority to Bind. 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- A-2017-400 IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT the date and year first above written. ATTEST: / 'ass/ Daisy Gomez, MMC Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By dCJln Lisa Storck Assistant City Attorney RECOMMENDED FOR APPROVAL: Q Minh Thai, Executive Director Planning & Building Agency CITY OF SANTA ANA KRI RIDGE City Manager OPERATOR LEGAL NAME: 1815 Carnegie Santa Ana Corp. SIGNATORY NAME: Michael Nahass TITLE: CEO TAXPAYER ID: 147-66-9675 SIGNATURE: A-2017-400 Exhibit A 3. Applicant demonstrates past experience in and commits to any of the 3 following: - Local Local Hiring and Sourcing Possible - Sustainable Business and Building Practices Points - Community Benefit and Youth Programs in Santa Ana 1815 Carnegie Santa Ana Corp.'s commitment to being a pillar and integral asset of the community is second to none. As our presence in the city comes fully into being, upon local and state approval, it will begin immediately to demonstrate its indispensability in terms of the benefits it can offer the city government and the community. The Community Commitments that are required as part of the Merit application are rooted in broader goals and objectives of the Santa Ana Strategic Plan. Specifically, these Commitments are born out of the goals of increased economic development and job opportunities, expanded private sector job growth and tax base, and more robust municipal finances. It is these three objectives, as well as overall community wellness, that has informed our approach to aiding in the progression and elevation of the city of Santa Ana, Local Hiring and Sourcing Terra Tech Corp., and subsequently 1815 Carnegie Santa Ana Corp., understand the irreplaceable value of sourcing and hiring from within the community we serve. This aspect of our business is so critical to us that we are committed to hiring 100% of our workforce locally. Our review of the Santa Ana Strategic Plan provides phenomenal insight into what the City values, and what it is likely looking for economically from a commercial cannabis business. This includes increasing economic development, broadening the tax base, balancing City budgeting, and solidifying resident employment opportunities. It is our commitment this last aspect where our greatest potential lies, and further bolsters our already substantial potential contributions to the others. Beyond these obvious financial benefits, it is our experience that local hiring practices are mutually beneficial for both the community and our bottom line. 1815 Carnegie Santa Ana Corp. has seen what local hiring and sourcing can do, not just in our Oakland, California facilities, but also in Nevada, where our local hire rate is 100%. The benefits appear to be consistent across spaces, and we anticipate Santa Ana will be no different when a similar local hire rate is achieved. Specifically, we have anecdotally observed happier employees, a more comfortable work environment, higher rates of productivity, shorter commutes (which allow for more time to be spent with family), and significantly higher rates of civic engagement with local 11 issues, including cannabis. These benefits do not require speculation or hypothesis, we have seen it first-hand. 1815 Carnegie Santa Ana Corp., like its parent company and all subsidiaries, is an Equal Opportunity Employer and prohibits discrimination and harassment of any kind. 1815 Carnegie Santa Ana Corp. is committed to the principle of equal employment opportunity for all employees and to providing employees with a work environment free of discrimination and harassment. All employment decisions at 1815 Carnegie Santa Ana Corp. are based on business needs, job requirements and individual qualifications, without regard to race, color, religion or belief, national, social or ethnic origin, sex (including pregnancy), age, physical, mental or sensory disability, HIV Status, sexual orientation, gender identity and/or expression, marital, civil union or domestic partnership status, past or present military service, family medical history or genetic information, family or parental status, or any other status protected by the laws or regulations in the locations where we operate. 1815 Carnegie Santa Ana Corp. will not tolerate discrimination or harassment based on any of these characteristics. Additionally, the local positions offered will provide livable wages for employees, enhancing the economic boosting effects'of local hiring as more disposable income is offered. The lowest wage we will offer is $35,000, which is .150% of the annual salary a California minimum wage worker makes. Additionally, we have already entered into a Labor Peace Agreement with the United Food and Commercial Workers union (the association the represents cannabis workers) demonstrating our commitment to decent livelihoods for local Santa Ana residents: Local hiring is easily obtainable for our industry as a significant portion of the positions we will need to fill will not require specialized or previous industry experience. This means that we can easily take the previous experience and skills of our hires and apply them to our needs as they may arise. A common question to this practice is how to communicate with this pool of candidates when most hiring programs target state or nationwide groups. The solution to this is to engage with the infrastructure that is already in place, as is the case with Santa Ana. The City of Santa Ana already funds and promotes organizations solely for the purpose of local hiring. These organizations work with local potentials and the government, acting as a guide to finding the best employment fit from applicants that already exists nearby. One such program is the Santa Ana WORK Center, which we intended to utilize to reach an array of local applicants. Additional opportunities arise from work with students who are over 21 in local colleges. Students often have a compounding effect as they not only encourage others to continue their education but because they are often from the same community they serve. This effect acts as an echo, reverberating throughout the community. Santa Ana College will most definitely be a resource in this endeavor. With the entry-level status of most jobs and the 12 fields of study that Santa Ana College offers which overlap with our business (business, marketing, and horticulture), we have little doubt that we will able to find eager and qualified candidates for career -advancing positions. Beyond local hiring, we will source the cannabis products we sell locally. With the City of Santa Ana on the cusp of allowing applications for commercial cannabis cultivation, distribution, and manufacturing facilities, 1815 Carnegie Santa Ana Corp. envisions applying for each of these license types to create a fully integrated, seed -to -sale, locally controlled and focused commercial cannabis operation. If permitted by the City in these realms, we would be move seamlessly from local creation to local sale via short local transit. We would, as well, be able to match our retail local hire rate of 100% in these facilities, providing even more benefit to the community. Even if not approved, we would source our product from other local cultivation, manufacturing, and distribution facilities, with an eye to sourcing from entities that have as close to 100% local hire rates as possible. Beyond cannabis products, there are a plethora of other business needs we can meet from local sources. Building and maintenance crews, contractors, HVAC specialists and electricians, cannabis gear producers — all will be locally sourced. Sustainable Business and Building Practices Ensuring that our environmental footprint is as small as possible isn't a marketing goal, it's a human imperative. Few know the costs as well as Southern California of what an environmental crisis can have on a community. From wildfires in dry seasons to cordons on water because of excessive drought conditions, Santa Ana has had the misfortune of experiencing it all along with the rest of the region. One small way we can ensure that we are part of the solution and not the cause is in our daily operational practices and methods of construction for our building; we are no stranger to this. One of the ways we have proven our environmental concern and willingness to act is through our Edible Garden brand, which focuses on sustainable and healthy agricultural practices by operating under the slogan "Simply Local, Simply Fresh." We utilize USDA - certified organic growing methods to create sustainable and environmentally conscious produce. These methods ensure that we are providing the best possible ingredients to our customers that are free of harmful pesticides, chemicals, and genetically modified organisms; ensures fewer toxins enter the environment; and use less water resources to produce. With 1815 Carnegie Santa Ana Corp. as a retail business, our commitment to sustainability must inherently take a different direction. One of the absolute best measures is to achieve LEED Existing Building Certification. LEED is one of the highest -rated and highest - performing sustainability programs in the world, and the benefits that come from LEED's requirements can prove enormous. In order to achieve at least a base LEED-Certified 13 building status (which is the minimum we would seek), everything from purchasing carbon offsets to encouraging biking and walking to green product use is on the table. As our renovation plans at the property take shape, we have a clean slate on which to build with sustainability in mind. The best means to achieve this Certification, and one of the requirements to even get Certified, is to hire a LEED auditor, who will go over all site plans and business practices to identify ways to be a more sustainable business and building. In addition to acquiring a LEED Certification, there are numerous other methods that complement these changes. On example is the addition of solar panels, which quickly pay for themselves when you receive 279 days of sunshine a year. Unfortunately, the upfront costs of employing such a technology can be outside a new business's means, but Santa Ana has already provided a solution for this. Commercial PACE (Property Assessed Clean Energy) is a green initiative program run through by the City of Santa Ana. This program subsidizes green initiatives for businesses to prompt conversion to sustainable practices. We fully intend to make use of the opportunity, and in doing so, hope to spread awareness about it to encourage other businesses to use it and "go green within their means." An additional focus for us is with water and waste. Through process optimization, we are able to reduce the amount of waste involved in our processes. Process optimization is applicable in all avenues of our operations, whether its reducing paper use by going electronic or using digital or whiteboard displays for product pricing. While we recognize that waste is inevitable, what we cannot be achieve on the front end in reduction can typically be accomplished on the back end through recycling. In this regard, we will implement a solid waste disposal plan, use a filtering waste hauler like Waste Management which operates in Santa Ana, and purchase business and office materials that are recyclable and/or made from recycle source material. 1815 Carnegie Santa Ana Corp. and its parent company have always taken environmental concerns seriously, and our existence in Santa Ana will show no signs of a lessening of those concerns. Community Benefit and Youth Programs in Santa Ana A community is often only as strong as the services made available to it, and the City of Santa Ana has made it known through their efforts that they believe in their community. Allowing for new industries to integrate while ensuring that they are a boon rather than a burden speaks to the level of commitment the City has to strengthening the community. We share this commitment. Through research and assessments of local nonprofits, we feel that cooperating with the following organizations would not only be meaningful to Santa Ana and ourselves but also enable us to have the highest possible positive impact on the local area. 14 The focus of our initiative is on youth -targeted programs. With the current structure of modern education, and many of its beneficiaries being below the age limit for working, kids often look for ways — sometimes mischievous — to fill their time. If a community is unable to offer an outlet for these kids, they will find alternative means to fill their time. Rather than being left to their own devices, we believe in the importance of having engaging opportunities for otherwise underprivileged youth. Not only is it a means of keeping them focused on self -growth and improvement, but it also enables them to explore and acquire new academic and social skills that would otherwise be out of reach. Of the many organizations in Santa Ana, we feel that the following would benefit the most from our contributions and cooperation. City of Santa Ana Sponsored Community Youth Programs The City of Santa Ana, through their Department of Parks and Recreation, already offers a myriad of programs intended explicitly for youth engagement. Some of the programs offered include youth basketball, chess clubs, and aquatics lessons. Additionally, the Department provides alternative activities through their Project PRIDE such as competitive kayak training, gardening training, and PRIDE clubs. Project PRIDE has been particularly successful in their competitive kayak training, providing, "local, county, state, and national tournaments throughout the year," leading the teen participants to place well in competitions. The benefit of such an engaging and successful activity is that it provides routine and stability through training. Participants also develop mentor/mentee relationships positively impacting other aspects of their life. Like any program, these do not come without their costs. Not only are volunteers required to help lead the events, but often specific items are needed to participate. There is no chess without a board and pieces, or kayaking without a paddle and life jacket. It is also of little benefit if the gear does not operate as intended. Half a paddle or only one bishop changes the entire dynamic. In our conversations with these various groups, we have determined that one of the most impactful things we can do for the community is the insurance of continuity of these programs by replacing various gear and equipment as the needs arise. KidWorks In line with our philosophy on local sourcing and hiring practices, KidWorks focuses on providing a haven for children and youth during the summer months by employing local college students. This method enables KidWorks to provide local college students with the experience necessary to further their career after graduation. Additionally, they set the example for the children they teach on what is obtainable and how to achieve one's goals. 15 Since its founding as a summer camp in 1993, it now provides structured activities year round. They offer a preschool which is taught entirely in English, workshops and financial literacy classes for children, leadership and fitness classes for youths, and even programs for adults who are looking to ensure they are setting the ideal example. With such a comprehensive and inclusive curriculum, there is no end to the ways we can participate with KidWorks. In our communications with KidWorks, we have determined the best way to give is in providing skilled volunteers who can operate on various committees and fundraising, and encourage our employees with STEM understandings to offer tutoring. Because our industry incorporates several different disciplines, everything from finance to chemistry, there is no limit on the knowledge we will bring to the table. Boys and Girls Club Though the Boys and Girls Club is not unique to Santa Ana, the work they do in Santa Ana is nevertheless crucial. Being part of a nationwide organization enables the Boys and Girls Club of Santa Ana to draw on resources that would be otherwise out of reach for some local organizations. Because of its structure, they provide a unique environment for parents and children to interact with one another. By making sure they are appropriately supported by all aspects of their community, Boys and Girls Club is able to have a 100% high school graduation rate from members who participate in their program. Their support system is all inclusive by working with the whole family, not just the children involved. Even as part of a larger organization, they too are not without needs. Boys and Girls Club is always in need of volunteers for their various initiatives. Boys and Girls Club of Santa Ana is involved in community campaigns, supply drives, and put on three major events a year for Thanksgiving, Christmas, and their annual. Boys and Girls Club utilizes a grant -program with local businesses in which the organization identifies what they see as a pressing need and presents the businesses with a proposal and opportunity to fund the initiative. Given how involved and critical Boys and Girls Club is, we have every intention of being a repeat participant. 16