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Request for Proposals Commercial Cannabis Cultivation, Manufacturing, Testing and Distribution Facilities

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Request for Proposals Commercial Cannabis Cultivation, Manufacturing, Testing and Distribution Facilities February 4, 2019 REQUEST FOR PROPOSALS COMMERCIAL CANNABIS CULTIVATION, MANUFACTURING, TESTING AND DISTRIBUTION FACILITIES Due Date: Final Applications: March 8, 2019 by 5:00 pm Commercial Cannabis Facilities RFP 1.0 Summary Final Applications Due: March 8, 2019 (by 5:00 pm) Applicants should submit eight (8) physical (hard-copy) copies of their application, submitted in three ring binders marked with the applicant’s name, as well as one electronic copy (on a single PDF file stored on a USB drive). Application packages should include all materials called for in the Commercial Cannabis Permit Application form, plus the following materials: . One (1) completed and signed original Commercial Cannabis Permit Application form for each business type or licensed location, with all required information detail on the Permit form as well as herein. Each Business Owner must sign the Certification and Indemnification statements found on Page 2 of the Application Form. One (1) completed Live Scan background check and completed documentation for each member of the applicant team (defined as the Applicant and Owner). Please use the Live Scan form found at https://oag.ca.gov/sites/all/files/agweb/pdfs/fingerprints/forms/BCIA_8016.pdf . One (1) check made payable to the City of Cotati for the Application fee of $3,000. Payment shall be made via check, money order, or cashier’s check. Cash or credit card payments will not be accepted. All of the above materials should be submitted by mail, courier, or in person before the deadline, to the RFP Coordinator: Jon-Paul Harries Senior Planner City of Cotati 201 West Sierra Avenue Cotati, CA 94931 [email protected] (707) 665-3634 2 Commercial Cannabis Facilities RFP GENERAL INFORMATION FOR APPLICANTS: A. Applicants must adhere to the page limits set forth herein. Additional content that exceeds these limits will not be considered. Applications should be prepared in Times New Roman, 12-point font, single spaced, with 1-inch margins. All tables, figures, graphics, etc. are included in the page limits, except where specifically noted otherwise. B. By submitting a proposal, the applicant represents and warrants that: 1. The information provided is genuine and not collusive, or made in the interest or on behalf of any party not named therein, and that the Applicant has not directly or indirectly induced or solicited any other Applicant to submit a sham proposal, or any other Applicant to refrain from presenting information and that the prospective provider has not in any manner sought by collusion to secure an advantage. 2. The Applicant has not paid or agreed to pay any fee or commission, or any other thing of value contingent upon the award of an exclusive operating area, to any employee, official, or existing contracting consultant of the City of Cotati. C. All costs of preparation of proposals including travel for any interviews shall be borne by Applicant(s). D. All proposals become the property of the City of Cotati. The City reserves the right to reject any and all submittals; to request clarification of information submitted; to request additional information from competitors; and to waive any irregularity in the submission and review process. None of the materials submitted will be returned to the Applicant. E. Information or materials submitted in response to this Request will be stored on file with the City of Cotati and may be subject to the requirements of the California Public Records Act, or subject to public disclosure as ordered by a court of law. Proposed security plans and personal identification numbers will be considered confidential. F. To withdraw an application, the Applicant must submit a written request, signed by all individuals identified as “Owner” on the Application Form, to the RFP Coordinator. After withdrawing a previously submitted application, the Applicant may submit another application at any time up to the application deadline. G. The City shall not accept any amendments, revisions or alterations to applications after the deadline for submittal unless the City formally requests such in writing. H. The City reserves the right to request additional information not included in this application from any or all applicants. I. The City reserves the right to contact references not provided in the submittals. 3 Commercial Cannabis Facilities RFP J. The City reserves the right to incorporate its standard agreement language into any contract resulting from this application. K. The City reserves the right not to issue permits if proposed operations/applications do not meet City requirements. L. Live Scan: All Applicant(s)/Owner(s) and all regularly engaged employees must have a background check conducted through Live Scan. A Live Scan application should be copied and completed for all necessary individuals. The background checks resulting from Live Scan will be conducted by the Cotati Police Department. All individuals needing Live Scan should contact Katie Huldermann (707-792-4611 or [email protected]) for special instructions and/or to make an appointment with the Police Department to process the application. Individuals are encouraged to schedule these appointments as early as possible in order to complete the Live Scan requirements before conclusion of the RFP process. Be advised that there will be a Live Scan processing fee, which must be borne by the Live Scan applicant at the time of Live Scan. The Live Scan process involves submitting fingerprints to the Department of Justice/Federal Bureau of Investigation, which will review for criminal offender record information (CORI). CORI report will be provided to the Cotati Police Department for the sole purpose of determining eligibility for operating a commercial cannabis facility. If any Applicant(s)/Owner(s) or employees fail to pass a background check, the Application for a Permit will be immediately rejected and not receive further consideration. 2.0 Introduction & Background The City of Cotati is requesting applications for permits to operate commercial cannabis facilities. This Request for Proposals (“RFP”) describes the contents of the applications to be submitted in response to the RFP, the evaluation criteria and the competitive solicitation process. Although this document is referred to as an RFP, the document to be submitted in response is an application, rather than a proposal. Applicants who submit a response to this RFP must have the ability to meet all of the requirements contained in this RFP and the City’s commercial cannabis ordinance for initiation and continued operation. The permits awarded by the City Council will have a two-year renewal requirement. Renewals may be awarded by the City Manager or his designee, upon demonstration of successful operation during the previous two year period. Applicants should be aware that Cotati is a small city, two square miles in size, with approximately 7,500 residents. All business operations are well known and frequently visited by city officials. It is not possible to operate with anonymity in our City and potential permittees should be comfortable with that type of interaction. 4 Commercial Cannabis Facilities RFP On February 13, 2018, the City Council of the City of Cotati adopted regulations governing commercial cannabis uses. The ordinance’s permit standards provide for the development and operation of both adult (recreational) and medicinal cannabis activities in our commercial and industrial zones. The Council limited the number of commercial activities to allocations suited to our small town of 7,500 residents. The limits are applied according to the types of State licenses that will be required. Although the license type (by number) may no longer be used by the State, they are used here for ease of reference. The maximum allowable licenses are detailed in the following table. Please note that there are no microbusiness or storefront retail licenses currently available. Maximum # to be State License Type Zones Allowed Permitted 2A (Indoor Cultivation 5,001 – 10,000 sf) CI, IG, PF 3A (Indoor Cultivation 10,001 – 22,000 sf) CI, IG, PF 5 4 (Nursery - Indoor only, 20,000 sf or less) CG, CI, IG, PF 6 (Manufacturing, Level 1 (non-volatile, no solvents)) CI, IG, PF 1 7 (Manufacturing, Level 2 (volatile solvents)) CI, IG, PF 2 8 (Testing Laboratory) CG, CI, IG, PF 7 9 (Non-Storefront Retailer – delivery only) CI, IG, PF 11 (Distributor) CG, CI, IG, PF 10 (Storefront Retail) CG 3 1 2 12 (Microbusiness) CG 1 These permits require processing and approval of a separate conditional use permit. 2 Only standalone Type 11 Distribution licenses count toward the permit limits; a business holding a State Type 11 in conjunction with another license type are unlimited. 3 No more one of these permit types may be a Type 12 microbusiness. The ordinance, zoning map and land use table (all attached) identify the areas where individual license types are allowed. On November 7, 2017 Cotati voters passed Measure G which levies business taxes on cannabis businesses operating within the City. The ballot measure authorizes maximum limits, while allowing the City Council to establish lesser rates on a bi-annual (every two years) basis at any rate up to the maximums set by the voters. The maximum rates are $25/sf or 8% of gross receipts for cultivators and 8% of gross receipts for manufacturing, distribution and retail businesses. However, the City Council set much lower initial rates which will be in effect until November, 2020. Those initial rates are: Cultivation: 2% of gross receipts or $5.00/sf of cultivation area Manufacturing: 1% of gross receipts Distribution: 0% of gross receipts Retailers: 3% of gross receipts (medical sales are initially exempt from the tax) All future permittees will be subject to taxation by the City at these initial rates and as adjusted by the City Council after 2020. 5 Commercial Cannabis Facilities RFP 3.0 Submittal Instructions REQUIRED INFORMATION: Completed Application Form with all required information as detailed in “Submittal Requirements” of the attached Commercial Cannabis Permit Application form (items 4 through 16).
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