HomeMy WebLinkAboutTHERAPEUTIC HEMP, INC., A CALIFORNIA NONPROFIT MUTUAL BENEFIT CORPORATION - 2017A-2017-369-09
li'dCU�,i6tYJCE Nit? REi?UIF?E;D
WORK MAY PROCEED
CLERK OF COUNCIL
fl Tr ` OEC 2 8 2917OPERATING AGREEMENT FOR ADULT USE (NON -MEDICINAL)
CANNABIS RETAIL BUSINESS
nT,L This Operating Agreement ("AGREEMENT") is dated2017 between
the City of Santa n cha ar city and municipal corporation ("CITY")
a�^rnai�n'-`OPERATOR"}, collectively referred to as 'the Parties". Thisby;
AGREEMENT shall become effective on the date that OPERATOR is issued a Regulatory Lf ,r, �
Safety Permit by CITY for the operation of an adult -use cannabis retail business transacted and
carried -on by OPERATOR at the following sub'ect property location,
_z Zy to , 6?e,10-vza.( A -ye Santa Ana, California 70J.
Public Benefit.
A. Intent. The purpose of this Operating AGREEMENT is to collect fees for the
operation of an adult -use cannabis retail business and to provide fees for 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 section 40-2(22). The Parties agree
that this AGREEMENT confers substantial private benefits on OPERATOR which should be
balanced by commensurate public benefits. As part of the adult -use cannabis retail
business 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 as a result of the operating agreement fees collected.
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 adult -use
cannabis retail business. 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 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. Said Pian 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 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. Operating Fee Rates for Adult -Use Cannabis Retail Business; Payment
For each month OPERATOR of the permitted "adult -use cannabis retail business" (as
said term is defined in Chapter 40 of the Santa Ana Municipal Code) transacts and carries
on adult -use cannabis retail business operations at the above-described property location
permitted by CITY, OPERATOR shall pay an operating agreement fee monthly to CITY.
The term "month" or "monthly" as used in this AGREEMENT shall refer to a calendar month
and shall include any fraction of a calendar month as a whole month. Terms of payment of
the operating agreement fee are as follows:
A. OPERATOR's operating agreement fee shall begin to accrue on the date that CITY first
issues OPERATOR an Adult -Use Cannabis Retail Regulatory Safety Permit and shall be
paid to CITY by the last day of the month following the month for which it is due.
B. OPERATOR shall pay CITY a monthly operating agreement fee which is the higher of
the following two calculations:
i. calculated at a rate of Eight Percent (8%) of the gross receipts generated or
otherwise received; or,
ii. calculated at an annual rate of Twenty -Five Dollars ($25.00) per square foot
based on the gross square footage of OPERATOR's permitted property location
(as confirmed by the corresponding "Approved Building Set" on file with City of
Santa Ana Planning and Building Agency) prorated monthly to one -twelfth
(1/12th) of the annual rate amount.
C. OPERATOR shall calculate and report its monthly operating agreement fee based on
both of the above calculations each month; remitting the higher amount to CITY.
D. OPERATOR shall report its operating agreement fee calculations to CITY using the
"Monthly Operating Agreement Reporting Form" set out in "Exhibit B" of this
AGREEMENT which is hereby incorporated into this AGREEMENT by reference.
3. Operating Fees Not a Pass -Through Fee; Gross Receipts Defined.
A. OPERATOR, as an adult -use cannabis retail business, shall not pass the operating
agreement fees or any or any portion thereof through to the adult -use cannabis retail
business' customer in any fashion except as part of the basic product sales and/or
service price.
B. For the purposes of this AGREEMENT, "gross receipts" shall mean any and all of the
following:
• Transfer of title or possession, exchange or barter, conditional or otherwise, in any
manner or by any means whatsoever, of tangible personal property for a
consideration including any monetary consideration for adult -use (non -medicinal)
cannabis, including, but not limited to, membership dues, reimbursements provided
by members, regardless of form, or the total amount of cash or in-kind contributions,
including all operating costs related to the growth, cultivation, manufacture,
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distribution, testing, or provision of adult -use (non -medicinal) cannabis or any
transaction related thereto;
• Anything else of value obtained by an adult -use cannabis retail business;
• The total amount of the sale price of all sales;
• The total amount charged or received for the performance of any act, service or
employment of whatever nature it may be, whether or not such service, act or
employment is done as a part of or in connection with the sale of goods, wares,
merchandise, for which a charge is made or credit allowed, including all refunds,
cash credits and properties of any amount or nature;
• Any amount for which credit is allowed by the seller to the purchaser without any
deduction therefrom, on account of the cost of the property sold, the cost of materials
used, the labor or service cost, interest paid or payable, losses, or any other expense
whatsoever; provided that cash discounts allowed or payment on sales shall not be
included;
• The amount of any federal, manufacturer's or importer's excise tax included in the
price of property sold, even though the manufacturer or importer is also the retailer
thereof and whether or not the amount of such tax is stated as a separate charge.
C. "Gross receipts" shall not include the following:
• The amount of any federal tax imposed on or with respect to retail sales whether
imposed upon the retailer or the consumer and regardless of whether or not the
amount of federal tax is stated to customers as a separate charge.
• The amount of any California state excise tax or state cultivation tax regardless of
whether or not the amount of such excise tax or cultivation tax is stated to customers
as a separate charge, or any California state, city or city and county sales or use tax
required by law to be included in or added to the purchase price and collected from
the consumer or purchaser, or such part of the sales price of any property previously
sold and returned by the purchaser to the seller which is refunded by the seller by
way of cash or credit allowances given or taken as part payment on any property so
accepted for resale; or
• The amount of medicinal cannabis (medical marijuana) sales and related services
generated or otherwise received in the event that OPERATOR is both a permitted
medical marijuana collective/cooperative business as well as a permitted, co -located
adult -use (non -medicinal) cannabis retail business operating at the same property
location.
• The amount of the sale price of all medical marijuana goods, wares, merchandise,
and other related services sold or otherwise generated in connection with operation
of a co -located medical marijuana collective/cooperative business.
• The amount of the sale price of business personal property (all property owned or
leased by OPERATOR used in the operation of the adult -use cannabis retail
business, including but not limited to: furniture, fixtures, and business equipment);
real property, including land, buildings and other improvements.
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• The amount of equity contributions, investments, and/or loan proceeds to
OPERATOR's adult -use cannabis retail business operation, and/or proceeds from
the sale or transfer of OPERATOR's adult -use cannabis retail business.
D. "Gross receipts" shall be calculated without any deduction on account of any of the
following:
• The cost of tangible property sold or bartered;
• The cost of materials or products used, labor or service cost, interest paid, losses, or
other expense; or
• The cost of transportation of the adult use (non -medicinal) cannabis, or other
property or product.
4. Remittance and Reporting.
Beginning as set forth above and monthly thereafter, OPERATOR shall report and remit
payment to CITY of the applicable operating agreement fee set forth in Section 2 of this
AGREEMENT. OPERATOR shall report to CITY any gross receipts received during the
preceding monthly reporting period and shall remit to CITY on or before the last day of the
month following the operating agreement fee due and owing during said period as
applicable in accordance with Section 2 of this AGREEMENT. When the last day of the
month falls on a City Holiday or City Hall Closure Day then the reporting/remittance date
shall fall on the next City business day following. The operating agreement fee shall be
acknowledged and agreed by CITY to be paid timely if paid on said date. When
reporting/remitting is made by mail, the postmark date shall serve as proof of timely
reporting/remittance.
5. 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.
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6. Past due date — Past due penalty• Late interest
A. Any OPERATOR entity or individual who fails to pay the operating agreement fees
required by this AGREEMENT when due shall be subject to past due penalties and
interest as set forth herein.
i. OPERATOR shall be considered past due if the required monthly operating
agreement fee is not paid by the last day of the month following the month for which it
is due.
ii. For failure to fully pay any monthly fee when due, the following past due penalty and
late interest charges shall be added to the unpaid balance amount owing:
1) A past due penalty of Twenty -Five Percent (25%) per month;
2) A late interest charge of One and One Half Percent (1.5%) per month added to
the unpaid balance amount owing, inclusive of any prior past due penalty or late
interest charges accrued.
B. CITY is not required to send a past due notice or other bill or invoice to OPERATOR, or
any other person subject to the provisions of this AGREEMENT and failure to send such
notice, bill or invoice shall not affect the validity of any operating fee, late penalty or late
interest charge due under the provisions of this AGREEMENT.
7. 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 12 or 13 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.
8. Business License Required.
A valid City of Santa Ana Business License is required for all persons engaged in
transacting and carrying on any adult -use cannabis retail business activity in the City of
Santa Ana. It is unlawful for any person or legal entity to commence, transact or carry -on
adult -use cannabis retail business activity in the City of Santa Ana without first having
procured a City of Santa Ana adult -use cannabis retail business license.
9. Operating Adult -use Cannabis Retail Business.
OPERATOR shall not operate an adult -use cannabis retail 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
facilities and businesses to I
California, it also holds sucf
license is subsequently not
commercial cannabis facility
AGREEMENT.
California requires adult -use cannabis retail business
old a valid license or permit issued by the State of
license or permit; unless, however, such permit or
required by the State of California for the type of
or business operation that is the subject of this
C. OPERATOR remains in compliance with any and all other laws and regulations
pertaining to commercial cannabis businesses including adult -use cannabis retail
businesses.
10. 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.
11. 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.
12. 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 Adult -Use Cannabis Retail
Business Regulatory Safety Permit issued to OPERATOR by CITY;
B. Failure of OPERATOR to maintain a valid active City of Santa Ana Business License
as an Adult -Use Cannabis Retail Business (Adult -Use Cannabis Retailer);
C. Unauthorized transfer by OPERATOR of the City of Santa Ana Adult -Use Cannabis
Retail Business Regulatory Safety Permit issued by CITY;
D. Failure by OPERATOR to accurately report gross receipts information or other data
necessary for CITY to calculate/confirm operating agreement fees;
E. Failure by OPERATOR to pay operating agreement fees and related reimbursement
costs within thirty (30) days of the date those fees are due;
C.
F. Failure by OPERATOR to cooperate with CITY or CITY's authorized agents in any
inspection, examination and audit of OPERATOR's adult -use cannabis retail
business books and records (including tax filings and returns).
G. 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.
H. 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.
13. Termination Without Cause.
Upon mutual written agreement of the parties this AGREEMENT may be terminated with
thirty (30) days notice.
14. 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 adult -use cannabis retail 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.
15. 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 binding arbitration of 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. Such matter shall be determined by
binding arbitration in Orange County California before three (3) arbitrators. The
binding 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
to aid arbitration from a court of appropriate jurisdiction.
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16. 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.
17. 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.
18. 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
U
To OPERATOR: �ln a✓ cc� z c r i a'r ev 6y .t r_
142 ca , 3 . (ev� ave
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.
19. 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.
20. Assinnment.
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.
21. 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.
22. 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.
23. 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.
24. 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.
25. 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, 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, distribution, and possession of cannabis
without any exemptions for medical or non -medicinal use.
26. 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 follows}
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IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT the date and year
first above written.
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APPROVED AS TO FORM:
SONIA R. CARVALHO
City Attorney
By: � /, TwJ-
Lisa S rck
Assistant City Attorney
RECOMMENDED FOR APPROVAL:
Candida Neal, Interim Execl irector
Planning & Building Agency
CITY OF SAl lTA ANA
RAUL GODIN " II
City Manager
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420 CENTRAL
COMMUNITY BENEFITS, SUSTAINABLE PRACTICES
AND LOCAL HIRING PLAN
A. Community Benefits
420 Central is committed to ensuring that our organization is a benefit to the Santa Ana
community. At our core we are committed to maintaining a high quality, well -administered,
respectable cannabis facility that prides itself on fitting in with and enriching the local culture of the
City of Santa Ana through various community benefits and local hiring initiatives. As we continue to
grow, our dispensary will become more than a store where patients can purchase cannabis.
420 Central's entire existence is based on serving as a benefit to our community and neighbors.
We see our service as a community benefit for people in need of a safe environment to obtain
prescription cannabis. We, therefore, take our community benefit imperative very seriously.
As an active member of the Santa Ana Cannabis Association (SAGA), 420 Central continues
to strongly support various community initiatives through SACA, including SACA's developing
partnership with the Santa Ana Unified School District to help fund youth diversion and other after-
school programs.
In addition to our participation in SACA community-based initiatives, 420 Central is also
exploring other community initiatives on our own in an effort to make the City of Santa Ana a better
place for all of its residents. We believe with a little love, inspiration, and dedicated resources, that
we can vastly improve the beauty of our local landscape.
(1) Neighborhood Clean -Lip and Graffiti Removal Program
One project we are exploring is an ongoing "Neighborhood Clean -Up and Graffiti Removal"
program. With the support of local volunteers, organizations with similar goals, and with 420 Central
providing resources for litter transport, dumping, and clean-up supplies, we are organizing
community clean-up days and graffiti removal projects aimed at removing blight and adding beauty.
We understand the ongoing struggle and burden of cleaning up areas where dumping, graffiti, and
neglect have created undesirable and unattractive situations. Our clean-up days help to create a sense
of pride for the area in which we five and work.
(2) Partnership with Minnie Street/Corbin Family Resource Center
420 Central is exploring a partnership with. Santa Ana's two family resource centers, Minnie
Street and Corbin Family Resource Centers. [Minnie St/Corbin's] primary care clinic offers
behavioral health services, child development programs, and aid and services to the cormnunity's
homeless and low-income families among other things, greatly enhancing the quality of life for all
residents of the city.
The partnership between 420 Central and [Minnie St/Corbin] will open up [Minnie
St/Corbin's] many services to 420 Central patients. A state -certified medical and behavioral health
provider with an office at [Minnie St/Corbin] will be available to 420 Central's patients to help
diagnose, counsel, advise, and educate on medicinal Cannabis treatments. [Minnie St/Corbin's] other
services, such as counseling, legal assistance, substance abuse classes, and additional therapies will all
be made available to 420 Central patients as well, thereby providing an unparalleled combination of
customer service, care, and support. We will offer a sliding fee scale to low-income patients seeking
relief through cannabis remedies. Our shared belief in the healing medicinal properties of legally
recommended cannabis and passion for education and social services will ensure the City of Santa Ana
sees the overwhelming benefits of welcoming an organization such as our own into the community.
420 Central will contribute financial and human capital to [Minnie St/Corbin], consistently
aiding one of the most utilized charity organizations in Santa Ana. [Minnie St/Corbin] has unique
expertise de -stigmatizing and humanizing issues that directly impact the overall well-being of our
community members. This requires a delicate balance of honoring multiple perspectives while moving
towards a common goal of wellness. This skill set will be a must as we embark on provided this much-
needed medical cannabis service to our community.
(3) Project Hunger
420 Central understands the challenges that many in the community face to just put food on
the table every day. We also understand that people who are hungry cannot be productive and
contributing members of society. Hunger increases crime, as people become more desperate and less
caring in their quest to survive. In an effort to realize a community where no one lacks a decent meal
and the ability to eat nutritiously, we work with faith -based and socially conscious groups to provide
much-needed resources and contribute directly through food drives and funding commitments to
organizations who provide food and resources to our neighbors who are less fortunate.
Local Hiring
420 Central is committed to hiring local workers and serving as an economic catalyst in our
community. We have always given preferential treatment to residents of Santa Ana in our hiring
practices. And as we continue to grow our facility in Santa Ana, we will undoubtedly look to local
workers for our hiring needs, first with our construction projects and afterward as permanent
employees in our retail store. As our hiring needs increase, we will work closely with local community
partners to identify skilled workers in our community.
Living Wage
While we are not required by law, our store adheres to compensation policies that are
consistent with Orange County's "living wage" rates for staff and employees. Rates specified for 2017
are a minimum of $14.48 per hour. Our current pay rate exceeds these standards. We will ensure that
new, continued, extended or otherwise amended employment contracts will incorporate the living
wage in effect at the time of the contract change. We intend to provide good wages to our staff, and
we make every effort to maintain positive relations with our staff and keep them working with us as
long as possible. We also believe in promoting from within if that talent is available. We feel this is
what makes our store an exciting and fruitful place to work.
Educational Awareness Program
420 Central has implemented an educational awareness program that explains the benefits
and potential abuses of cannabis. Upon the request of any patient or caregiver member, we provide
information and/or referrals to substance abuse disorder education, prevention, and treatment
programs. As part of our patient -education program, we also intend to begin providing every new
patient or caregiver at our dispensary facility a Patient Handbook that includes information about the
benefits of using medical cannabis as well as information about safe use and potential abuse. During
each new patient/caregiver's initial orientation, we will provide an overview of the information in the
Patient Handbook to ensure comprehension. Both the handbook and the orientation will include
information directing patients/caregivers to staff points -of -contact at our facility so that they may ask
specific questions about medical cannabis, and if requested, can be directed to additional information
about substance abuse disorder education, prevention, and treatment programs.
In addition, we will provide regularly scheduled educational opportunities for our members,
including seminars and workgroups on a range of topics. Some of the topics we will provide
educational training on include Responsible Use, Home Cultivation., Methods of. Ingestion, Nutrition,
and other topics of interest to our patient members and staff.
Reduced Pricing Plan
420 Central offers a reduced pricing plan for qualified low-income patients and military
veterans, as well as a program offering complimentary medicine to qualified patients. We honor our
seniors, military veterans, and SSI patients with regular discounts on their fees for medicine and
services. We offer a 20% discount on all 420 Central products to these groups of patients. We believe
in helping our patients that are less fortunate.
Packaging, Labeling and Warning Requirements
420 Central currently adheres to all California Medical Marijuana Regulation Safety Act
requirements for packaging and labeling the medical cannabis and medical cannabis products we
provide to patients. We are highly committed to using packaging and labeling that best promotes safe
use, and prevents misuse, of our products. All of our medical cannabis and medical cannabis products
are dispensed in tamper -evident packaging that is clearly labeled "Medical Cannabis," "Medical Use
Only," and "Schedule I Controlled Substance." Labeling also includes the source and date of
manufacture and cultivation, prominently displayed in a clear and legible font; pharmacologically
active content including THC, CBD, and any other cannabinoid content; and warnings about the
medicine's intoxicating effects. Packages containing only dried flower are clearly labeled with net
weight. Labels for packages containing medical cannabis infused products or edible products include
additional ingredients and warnings if nuts or other known allergens are used, and use generic names
for food products. All packaging and labels for all dispensary products use designs that are not
attractive to children.
Environmental
420 Central is committed to minimizing and mitigating the environmental impact of our
operations. As part of our efforts we are considering the adoption and implementation of a "Green
Action Plan" for our retail store and any future operations in the community. As part of our
environmental business practices planning, we will be taking a comprehensive approach to address
items such as energy consumption, green building practices, and sustainable sourcing of materials.
And as always, 420 Central will continue to source third -party products from similarly minded,
environmentally conscious vendors in California.
As part of our "Green Action Plan", we have implemented or are considering the
implementation of the following items:
1. Lighting
• Upgrading lighting to more efficient alternatives such as T5 fluorescent tubes,
compact fluorescents or LED technologies
• Installing motion sensors in areas which are only rarely used
• Installing daylight/photoelectric sensors near windows where ample daylight is
received during the day
• Installing lighting zoning so certain areas in the office can be switched off if no one is
present
• Installing a lighting control system which can control all the lighting automatically
• Educating our staff about the importance of switching off lights when not required
• Working with our cleaners, security and building management to turn off lights at
night if no one is present in the store
• Replacing older `exit' signs with new LED models
2. Office Equipment and Appliances
• Undertaking a night time energy audit to identify what equipment is being left on
overnight
• Implementing a "Switch Off' policy for equipment, such as computer and monitors,
that are being left on
• Discussing with our IT consultants about a `rower saving mode" policy for computers
• Turning down the brightness on computer monitors
• Considering the use of laptops rather than PC's
• Ensuring printers and scanners turn to power saving mode after 30 minutes of
inactivity
• Replacing old, energy intensive items throughout the store with newer energy efficient
(high star rating) models.
3. Behavioral Changes
• Implementing a "Switch Off' campaign or competition for our staff.
• Providing information/training to our staff on household sustainability.
• Having a `green week' in our store
• Offering incentives to our staff for innovative `green' suggestions in the store
Sustainability
1. Waste
• Implementing a waste recycling program throughout our store for all refuse where
possible
• Using glass or ceramic cups and plates and metal cutlery rather than disposable
• Designating an area for stationary recycling
• Implementing an organic waste recycling program.
• Ensuring that all empty printer cartridges are recycled
• Re -using office furniture where possible; if no longer usable we will donate it to
charity (eg Salvation Army, St Vincent de Paul, local charity)
2. Sustainable Procurement
• Ensuring all office paper, note books, hand towels, etc. are made from recycled
materials
• Buying fair trade coffee
• Ensuring all cleaning products are 100% biodegradable and contain no harsh
chemicals