II.
City of Santa Barbara Community Development Department
Memorandum
DATE: February 20, 2019
TO: Staff Hearing Officer
FROM: Tony Boughman, Assistant Planner
SUBJECT: CONTINUED REVIEW OF 118 NORTH MILPAS STREET (MST2015-00319)
The Staff Hearing Officer reviewed an application for project revisions to amend a Medical Cannabis Dispensary Permit on February 13, 2019. At that hearing, the Staff Hearing Officer continued the item two weeks, to February 27, 2019 to allow time for the applicant to provide additional information. The staff report for the item is unchanged from the February 13, 2019 date.
Attachments: 1. Applicant’s Response Letter dated February 20, 2019 2. Canopy Revised Operating Plan dated February 20, 2019 The Canopy Health & Wellness Center
Ryan Steven Howe (805) 895-2578 Sent Via Email February 20, 2019
Staff Hearing Officer c/o Tony Boughman, Assistant City Planner City of Santa Barbara P.O. Box 1900 Santa Barbra, CA 93102-1990
Re: Response to the February 13th SHO Hearing regarding 118 N. Milpas Street MST#2015-00319, APN: 017-091-016.
Dear Ms. Reardon:
The following are updates and corrections to the Canopy Operations Manual per your instructions during the February 13th SHO Hearing. The corrections to the Operating Manual have been made in BLUE throughout the body of the document and are outlined below.
• Page 10 – At the end of the page, delete the word “employees” after “security guard”. • Page 14 – Delete references to testing. • Page 19 – Revise to state that the security company must be a company approved by the chief of police (consistent with City Ordinance Section 30.185.250.F.3.c). • Page 20 – Specify that Canopy needs to keep the current “original” physician recommendation / approval. • Page 21 – Need to add the patient’s purchase records to the list (a. – e.) consistent with City Ordinance Section 30.185.250.H.8.b. • Page 27 – Retain the first sentence of the “Cultivation” paragraph. • Page 28 – The “Inventory Records” paragraph must be added and consistent with City Ordinance Section 30.185.250.H.8.a – c. • Page 29 – Correct to state that records will be retained for five (5) years. • Page 32 – The “Management / Employees” paragraph should be revised to address management only – references to those who are merely employees should be deleted. Nicholas has been removed and Adam has been retained now that his criminal record has been expunged. • Page 33 – Revise to state that the security company must be a company approved by the chief of police (consistent with City Ordinance Section 30.185.250.F.3.c). • Page 34 – Add verbiage regarding security monitoring (see City Ordinance Section 30.185.250.F.3.d?). • Page 36 – Add the recommendation from the staff report (Part IV.B, Page 4 of the Staff Report). • Exhibit E (Deliveries) o First Page – Add a statement that drivers must have a copy of the local and State authorizations and licenses. o First Page, Fourth Paragraph – Specify that the form of the ID that will be provided (which must be consistent with the ID process)
118 North Milpas St., Santa Barbara, CA 93101 Phone: 805-895-2578
ATTACHMENT 1 The Canopy Health & Wellness Center
o Pages Six and Ten – Specify that patients must comply with the 24 hour waiting period before delivering any product. o Page Seven – With respect to driver/dispatch/customer communications, clarify that the driver should have direct communications with the customer once the driver is dispatched on the delivery. • Attachment 2 – 6 New Director/Manager signed confirmations have been added • Attachment 3 - (Canopy Club, Inc. Governing Documents) – Section 4.01(K) of the Bylaws have been amended to state that board delegation of powers must be consistent with applicable law, including the City Ordinance. o A description of duties and services for the Wakki Consulting Agreement has been added along with each line item contained in the description of services has been added to Schedule 1 per the instructions of The Staff Hearing Officer. • Attachment 5 – Six (6) New Director/Manager signed statements have been added.
Thank you again for your time and consideration of this matter and I look forward to reconvening soon.
Sincerely,
Ryan S. Howe Founder The Canopy Health & Wellness Center 805-895-2578 (cell)
Medical Cannabis Storefront Dispensary Operating Plan & Application
th Revised Submission Version 7, November 16 , 2017 Version 8, December 21, 2018 Version 9, February 20, 2019 Submission ATTACHMENT 2 The Canopy Health and Wellness Center
Table of Contents
Application ……………….……………….………………………………………………………...5 Introduction Letter
SBMC 28.80.060. F.1. – F.9. Applicant Information ………………………………...6 SBMC 28.80.070 - Approval Criteria …………………………………………………..….7 a. Decision on Application b. Criteria for Issuance c. Answers to Criteria for Issuance
Executive Summary ………………….…………………………………………………………….14 Industry Dynamics ………………………………………………………………………………..15 Market Niche Business Opportunity ………………………………………………………..15 Unique Marketing Concept ……………………………………………………………………..16 Membership Advisory Council ………………………………………………………………..17 Operations Plan ……………………………….…………………………………………………….19 SBMC 28.80.060. E.6. - Emergency Contact ……………………………………………..19 SBMC 28.80.050 - Site Information ………………………………………………………...19 SBMC 28.80.050 - Location and Hours of Operation …………………………………19 SBMC 28.80.080. D.1- D.8 - Dispensary Operations ………………………………….20 o New Patients and Caregivers o Re-Verification from the “Recommending Physicians’ Office” o Existing Patients and Caregivers o Member Flow o Expired Patients and Caregivers o No Physician On-Site o Dispensary Permit o Commercial Use/Parking Requirements o State Division of Alcoholic Beverage Control License o Consumption On-Premises & Non-Obstructed Views of Signs o Signage
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SBMC 28.80.080. E.1. & E.2. – Consumption & Re-Distribution …………………24 o On-Site Consumption & Re-Distribution Restrictions SBMC 28.80.080. F.1. & F.2. – Retail Sales of Other Items …………………………25 o Product & Service Offerings …………….……………………………………………..26 SBMC 28.80.080. Sections G.1. - G.5. – Compliance ………………….……………….26 o State Law Compliance Warning o Not for Profit Operations o Cultivation of Medical Marijuana o Distribution in Santa Barbara Only o Membership Limited to One Collective SBMC 28.80.080. Sections H.1. - H.4. – Record Keeping …………………………….28 o Cultivation Records o Membership Records o Financial Records o Dispensary Records Retention Period SBMC 28.80.100. Sections A. & B. – Distribution to Non-Member …………..….29 o Transfers to or from a Non-Collective Member o Assistance for Edible Cannabis Products SBMC 28.80.130. Sections A.-D. – Transfer of Permits ……………………………….29 o Collective Dispensary Permit – Site Specific o Transfer of a Permitted Collective Dispensary o Request for Transfer with a Revocation or Suspension Pending o Transfer With-out Permission SBMC 28.80.140. – Medical Marijuana Vending Machines ………………………..30 SBMC 28.80.150. – Business License Tax Liability ………………………………..…..30 SBMC 28.80.080. Sections A. & B. – Management Requirements ……………….30 o Criminal History o Minors SBMC 28.80.080. Sections C.1. - C.7. – Dispensary Size & Access ………….…….31 o Dispensary Size o Dispensary Access o Management/Employees o Restrooms
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Security Plan ……………………………….………………………………………………………..33
SBMC 28.80.060. Sections E.3. – E.5. – Security ………………………………………33 o Security Guards o Security Cameras o Security Alarm System o Additional Security SBMC 28.80.060. Sections E.7. – E.10. – Security ………………………………….….39 o Public Nuisance and Loitering o Trash, Litter, Graffiti SBMC 28.80.060. Sections E.1 – E.2. – Site and Floor Plan…………………..….…41 o Site Plan and Floor Plan o Storage
Exhibits and Attachments …………………..…………………………………………………...42
o Exhibit A – Architect Construction Documents o Exhibit B – Executed City of Santa Barbara Master Application o Exhibit C – Proposed Plan for Fence o Exhibit D – Proposed Plan for Garden o Exhibit E – Photos of Cultivation Site o Exhibit E - Canopy Delivery o Exhibit F – Revised Canopy Agreement Patient Form & Map o Exhibit G – Interior Signage o Exhibit H – Canopy Parking Sticker o Attachment 1 – CA Drivers’ License o Attachment 2 – Directors Signed Confirmation o Attachment 3 – Articles of Inc., By-Laws, Resolutions o Attachment 4 – Articles of Association o Attachment 5 – Directors Signed Statement
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Application
Introduction Letter:
Ryan Steven Howe, Founder and Chairman of Canopy Club, Inc., a Non-Profit Mutual Benefit Corporation, is applying to the City of Santa Barbara for the issuance of a Permit to Operate a Medical Cannabis Storefront Collective Dispensary. This application is being submitted under Chapter 28.80 of Title 28 of the Santa Barbara Municipal Code and under the guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use, dated August 2008, from the Attorney General of the Department of Justice, of the State of California.
Mr. Howe’s organization (hereinafter referred to as Canopy) will be conducting business at 118 North Milpas St., Santa Barbara, CA 93103 with its qualified members only, to sell medical cannabis, along with other naturally holistic medicines and services, grown and offered by other Canopy members. As such, the organization is subject to the Board of Equalization’s Taxability of Medical Cannabis Transaction Notice; as well as all other City, State and other laws, taxes, fees, permits, ordinances and requirements; regarding every aspect of its general business operations, and reporting requirements thereunder.
The Canopy is a secure, central location for members of the collective to legally, discreetly and safely access medicinal cannabis and non-cannabis products and services grown and/or offered specifically for them, under the laws of the State of California, City of Santa Barbara, Compassionate Use Act (Proposition 215) passed in 1996 and Senate Bill 420, passed in 2004. Along with others, Mr. Howe has spent many years working towards aiding in the passage of these laws and for the compassionate use of medical cannabis. His organization intends to strictly adhere to these laws, lest the entire initiative be lost.
There are many studies on the benefits of THC and CBD's. Recently a CNN report on medical marijuana by Dr. Sanjay Gupta featured the story of a 5-year-old girl who was suffering from continuous epileptic seizures. She was being treated orally with an extract of CBD-rich cannabis. Her results proved a drastic reduction in the amount of her daily seizures. Canopy believes it is well positioned to work with the City of Santa Barbara to create a model to help those who are suffering and sick while standardizing industry safety practices. The organization will only sell Cannabis and Non-Cannabis related medicines that are safe for our members to consume. All products will be tested for pesticides, fungus, mold, mildew as well as THC, CBD & CBN levels.
Mr. Howe is a resident of the City of Santa Barbara. He wishes to assist, in any way that he can, with furthering research and education efforts towards alternative cancer treatments and potential eventual cures for cancer. His long-term mission for Canopy is to build an Herbal Cancer Research Center within the City of Santa Barbara.
5 The Canopy Health and Wellness Center
Response to SBMC 28.80.060. Sections F.1. - F.9:
Applicant Information:
1. Name, address, telephone number, title and function(s) of Manager:
Ryan Howe Founder, Chairman The Canopy 118 N. Milpas Street Santa Barbara, CA 93105 (805) 895-2578 Provide leadership to position the organization at the forefront of the industry, to develop the strategic plan to advance its mission, create and manage brand, marketing, and community PR strategy, and to promote overall organizational growth.
2. Fully legible state driver license or identification card for Member. (See Attachment 1)
3. Written confirmation as to whether the Collective Member of the Collective previously operated in this or any other county, city or state under a similar licenser permit, and whether the Collective Member Applicant ever had such a license or permit revoked or suspended by and the reason(s) therefore. (See Attachment 2)
4. If the Collective is a corporation or a cooperative, a certified copy of the Collective’s Secretary of State Articles of Incorporation, Certificate(s) of Amendment, Statement(s) of Information and a copy of the Collective’s by laws. (See Attachment 3)
5. If the Collective is an unincorporated association, a copy of the articles of association. (See Attachment 4)
6. The name and address of the Applicant’s or Collective’s current designated Agent for Service of Process;
RESPONSE: Faith Strader, 118 North Milpas Street, Santa Barbara, CA 93103. Phone: (805) 895-4536.
7. A statement dated and signed by each Canopy Member, of the Collective, under penalty of perjury, that the Canopy Member has personal knowledge of the information contained in the Dispensary Application, that the information contained therein is true and correct, and that the application has been completed under the supervision of the identified Canopy Member(s): (See Attachment 5)
8. Whether Edible Medical Marijuana products will be prepared and distributed at the proposed Dispensary Property:
RESPONSE: There will be Edible Medicinal Cannabis products distributed at Canopy.
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9. The Property location or locations where any and all Medical Marijuana will be collectively cultivated by the Collective members and Canopy Members:
RESPONSE: 5645 Santa Rosa Rd, Lompoc, CA 93436. 5930 Santa Rosa Road, Lompoc, CA, 93436 8701 Santa Rosa Road, Buellton, CA 93427 4505 Foothill Road, Carpinteria, CA 93013 5601 Casitas Pass Road, Carpinteria, CA 93013 795 Bobcat Springs Road, Buellton, CA 93427
The properties are secure with a manager on the premises at all times. The cultivation locations on the properties are not visible to any persons and/or neighbors, are located in Santa Barbara County and meet the requirements of SBMC 28.80.080. G.3.
Response to SBMC 28.80.070. Section A.:
Approval Criteria:
Describe how the dispensary meets the criteria below.
A. Decision on Application. Upon an application for a Storefront Collective Dispensary permit being deemed complete, the Staff Hearing Officer shall either issue a Storefront Collective Dispensary permit or issue a Storefront Collective Dispensary permit with conditions in accordance with this Chapter, or deny a Storefront Collective Dispensary permit.
RESPONSE: Mr. Howe hopes that the City Officials and the Staff Hearing Officer will review the application with the understanding that he has entered into this project with the intention of operating his dispensary and wellness center above and beyond the guidelines of the City Ordinance. The health and safety of the members is a chief factor that propelled him to open a store front location in the first place. Coupled with the store front are also plans to use a testing and research facility to ensure efficacy and longevity for the Canopy’s products and services.
Mr. Howe’s long term plan is to build Southern California’s first Herbal Cannabis Research Center for Cancer. While he attempts to accomplish this task, operating the proposed dispensary and wellness center within city, county, and state guidelines is paramount to the long term success of the organization. Without support from city officials, law enforcement, and the community Canopy cannot be successful. Therefore, he is optimistic that a permit will be issued with the approval and support of the City of Santa Barbara. Ryan also acknowledges and respects the opinions of Law Enforcement and supports them in enforcing the law, while simultaneously hoping that they respect Canopy’s right to operate within the law.
7 The Canopy Health and Wellness Center
Response to SBMC 28.80.070. Section B.:
B. Criteria for Issuance. The Staff Hearing Officer, or the City Council on appeal, shall consider the following criteria in determining whether to grant or deny a Medical Marijuana Storefront Collective Dispensary permit:
Response to SBMC 28.80.070. Sections C.1. – C.12.:
1. That the Collective Dispensary permit and the operation of the proposed Dispensary will be consistent with the intent of the Compassionate Use Act of 1996 and the SB 420 Statutes for providing medical marijuana to qualified patients and primary caregivers and the provisions of this Chapter and with the Municipal Code, including the application submittal and operating requirements herein.
RESPONSE: The applicant submitted “Articles of Association for Canopy Club, Inc.” signed by the applicant and stating that the Collective will operate the dispensary consistent with the Compassionate Use Act of 1996 (Proposition 215) and Senate Bill 420 (Attachment 4). The operations plan, security plans, and signed confirmations (Attachments 2 and 5) indicate compliance with the dispensary ordinance and Municipal Code.
2. That the proposed location of the Storefront Collective Dispensary is not identified by the City Chief of Police as an area of increased or high crime activity.
RESPONSE: A similar project near this location at 331 North Milpas was routed to the police department on or around November 19th, 2008, whose personnel conducted a site investigation. At that time, the area was not considered to be an area of high crime activity based upon crime reporting statistics. To the best of our knowledge, the proposed location has not been identified by the Chief of Police as an area of increased or high crime activity since.
3. For those applicants who have operated other Storefront Collective Dispensaries within the City, that there have not been significant numbers of calls for police service, crimes or arrests in the area of the applicants’ former location.
RESPONSE: Mr. Howe has not previously operated a dispensary within the city or anywhere else, nor has he been involved with any prior operations within the City.
4. That issuance of a Collective Dispensary permit for the Collective Dispensary size requested is appropriate to meet the needs of community for access to medical marijuana.
RESPONSE: The size of the store front interior 2,264 net square feet. The proposed dispensary has significant space in the reception area so as not to let members loiter in or around the street. The reception space is located in the front near the street with clear visible access through the windows. There are two ADA compliant bathrooms and an
8 The Canopy Health and Wellness Center interior ADA ramp leading in to the dispensary. There is also an ADA ramp outside leading from the sidewalk in to the reception area. The actual floor space of the Secured Area for Dispensing is 847 S.F., justifiable to meet the needs of the community. Additional details can be found in Exhibit A1.0 – Site and Floor Plan and on page 31 in the Operations Plan under the heading “Dispensary Size”.
5. That issuance of the Collective Dispensary permit would serve the needs of City residents within a proximity to this location.
RESPONSE: Canopy understands that only residents of Santa Barbara County can be members of a store front collective dispensary. According to past research done near this location, approximately 90% of the patient members who visited the Milpas location were Santa Barbara County residents. There are no other existing dispensaries operating within the Milpas area to the applicants’ knowledge, and according to the City’s web site, there is only one other existing permitted dispensary operating on Upper De La Vina State Street within the city of Santa Barbara which is over 5 miles away.
6. That the location is not prohibited by the provisions of this Chapter or any local or state law, statute, rule, or regulation and no significant nuisance issues or problems are likely or anticipated and that compliance with other applicable requirements of the City’s Zoning Ordinance will be accomplished.
RESPONSE: The project site is within an area of the City that allows Medical Cannabis Dispensaries. No prohibitions for a dispensary at this location were identified in any local, state, statute or rule or regulation. To prevent nuisance issues, the security measures include security patrol guards, alarm systems, security cameras and patient screening. The front lobby of the dispensary has large windows and good visibility from Milpas Street for police surveillance. No smoking or use of marijuana is permitted on the premises, no drug paraphernalia will be sold on the premises, and Canopy is required to, and will control loitering, graffiti, and nuisance issues in the surrounding areas.
7. That the Dispensary’s Operations Plan, its site plan, its floor plan, the proposed hours of operation, and a security plan have incorporated features necessary to assist in reducing potential crime-related problems and as specified in the operating requirements section. These features may include, but are not limited to, security on- site; procedure for allowing entry; openness to surveillance and control of the premises; the perimeter, and surrounding properties; reduction of opportunities for congregating and obstructing public ways and neighboring property; illumination of exterior areas; and limiting furnishings and features that encourage loitering and nuisance behavior.
RESPONSE: Canopy understands the potential nuisance that a collective and its members can be to neighbors; and has considered the probability that both non- members and minors will be near the building, and that the likelihood of their discovery is high. As such, Canopy has accounted for potential subsequent crime, loitering, and
9 The Canopy Health and Wellness Center
nuisance issues. The organization believes that any threat of loitering or crime related activity will be eliminated through constant attention and the combined use of the following:
1. A well thought out Operations (Page 19 of this document) and Security Plan (Page 33 of this document); 2. Diligent Patient Screening with security controlled access at all times; 3. A strategically placed security camera and alarm system with twenty-four (24) hour surveillance; 4. A well-lit exterior area with unobstructed public views of the side, front, and rear of the building; 5. A six-foot sectional iron “see through” fence and gate has been constructed for added security to prevent exterior access to the “Exit Doors” facing Mason Street. The fence will be guarded 24/7 by video surveillance, and by security guards during store hours. Access to the area behind the fence will be limited to members, employees, and management for the purpose of participating in wellness activities such as meditation, education, and health classes. The fence will be used for “exit only” and access to the garden/wellness area shall occur only through the dispensing area to prevent public access to the property so as to deter loitering, graffiti, and litter. (See Exhibit C – Proposed Plan for Fence). 6. And … Ample room within the reception area, which will absolutely prevent any opportunity for loitering.
8. That all reasonable measures have been incorporated into the Dispensary security plan or consistently taken to successfully control patrons’ conduct resulting in disturbances, vandalism, crowd control inside or outside the premises, traffic control problems, marijuana use in public, or creation of a public or private nuisance, or interference of the operation of another business.
RESPONSE: Canopy will have a zero tolerance clause within its membership agreement regarding its members and employees loitering and/or using cannabis products on or within 200 feet of the property. In the event of loitering or a cannabis use infraction, membership will be cancelled and/or employment terminated. Given the outstanding nature of Santa Barbara’s citizens and our selective membership/hiring process, Canopy expects that this will never be a problem. Members will be informed of the zero-tolerance policy through the signed membership agreement and on-site signage. Additionally, staff and security will enforce this policy as a main priority.
The site plan and the security plan indicate Canopy will install seventeen security cameras. The cameras will be placed throughout the buildings’ interior and exterior and will be monitored during and after hours with the purpose of identifying disturbances, vandalism, loitering, etc. The security company monitoring the video system will be on- site to respond during regular business hours, and will be on-call for after-hours response.
Canopy shall have two security guards employees on-site during regular business hours, and one security guard employee shall be on-site, or if on patrol within a 200 foot radius of the dispensary 24 hours a day, 7 days a week. The security guard(s) will have several responsibilities, including, but not limited to:
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1. Screening all new and prospective members' CA State to ensure valid Government Issued ID and a valid physician’s recommendation before entering the dispensing area. 2. Keeping the sidewalk area in front of the building free of loitering and member/ customer congestion at all times. (zero-loitering will be allowed). A prospective member must have a CA State ID and a valid physician’s recommendation. If not, they will be asked to leave the premises immediately. 3. Ensuring no cannabis or alcohol use on the site. (Zero tolerance use policy will be enforced). 4. Address any nuisance issues and report them management immediately. 5. Removing litter and cigarette butts; and report any graffiti identified in the area. Procedure for graffiti removal: (See also page 38). 1. Take a Picture and make a "Journal Entry" on the Dispensary Daily Log; 2. Promptly notify the property manager, Merry Miplas, LLC. c/0 Steven Bernston at (805) 563-9400. He will advise action to remove. 3. Make another "Journal Entry" of who said what, on the Daily Log. 4. In the event that the seventy-two (72) hour time allotment has expired, at the direction of the property manager, the Dispensary Manager will utilize the "World's Best Professional Graff-Attak-Pak" graffiti remover. Using the most appropriate application product and method for the graffitied surface (i.e., bare brick, stone and masonry) and use all necessary protective gear (Goggles, thick rubber gloves, rubber apron, and air respirator).
9. That the Storefront Collective Dispensary is likely to have no potentially adverse effects on the health, peace, or safety of persons living or working in the surrounding area, overly burden a specific neighborhood, or contribute to a public nuisance and that the Dispensary will generally not result in repeated nuisance activities including disturbances of the peace, illegal drug activity, marijuana use in public, harassment of passerby, excessive littering, excessive loitering, illegal parking, excessive loud noises, especially late at night or early in the morning hours, lewd conduct, or police detentions or arrests.
RESPONSE:
1. Promoting Health and Safety: Through its wellness center Canopy is promoting an education lecture series, community outreach awareness, and special events program to raise money for cancer research programs. The lecture series and special events programs will not be performed at 118 North Milpas. However, activities that will be conducted at the site (other than dispensing medicine to qualified Canopy members) include one on one private consultation, education courses, and meditation/yoga therapy. Canopy will also develop safety protocol guide materials for its membership and the community on the correct use of cannabis and its potential harmful side effects. Additionally, Canopy will maintain strict protocols with the production and testing of its products in an effort to ensure the safety and efficacy.
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2. Aiding the Neighborhood, Not Burdening It: Ample lighting is already installed in the front of the building, and both sides of the building are more than adequately lit with updated lighting fixtures which were approved by the city only a few short months ago. Therefore, the lighting installed already prevents light trespass beyond its property lines. Members will be instructed where to park and when to park during their private one on one initial consultation meeting and security will enforce the policy.
3. Preventing Nuisance Activities: The duties of the security guards and management members will take all reasonable steps to discourage and correct conditions and behavior which constitute a public or private nuisance. Through controls such as the Patient Agreement Form which states members must leave the premises after securing medicine, and a mandatory “rules and regulations” introductory consultation between each member and a member of management, Canopy will ensure all members are properly educated and informed not to loiter, litter, or disturb the peace. Additionally, the dispensary will be closed prior to 8:00 am and after 6:00 pm Monday through Saturday. This will ensure that excessive loud noises, especially late at night or early in the morning hours, will not be as a result of Canopy or its members.
4. Working with Law Enforcement: Two full time security guards will be patrolling the area during business hours and will immediately report illegal drug and/or criminal activity to police. Cameras and alarms will be mounted in every corner of the building and recording activities in and around Canopy 24/7. A knowledgeable and trained management staff will also be on site during business hours. Canopy believes these measures, along with other measures outlined later in the “Security Plan” on page 30, will prevent adverse effects on the peace and safety of our neighborhood.
10. That any provision of the Municipal Code or condition imposed by a City issued permit, or any provision of any other local, or state law, regulation, or order, or any condition imposed by permits issued in compliance with those laws will not be violated.
RESPONSE: Canopy is managed, and will be operated, under the highest standards around compassion, health, safety, ethics, patient's rights, and all aspects of the law as designed by CA Proposition 215, SB420, and the City of Santa Barbara’s ordinance. The organization is represented by Faith Strader and will act in full compliance with the law, regulations, and conditions set by the ordinance. No provisions of any code, condition of a city issued permit, or any other local or state law, regulation or order or any condition imposed by permits issued in compliance of those laws in the City of Santa Barbara will be violated by Canopy.
11. That the Applicant has not made a false statement of material fact or has omitted to state a material fact in the application for a permit.
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RESPONSE: Canopy has made no false statement of material fact, nor has it withheld a material fact, in the application for the permit, and have executed documents stated as such as a part of this application.
12. That the Applicant has not engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices with respect to the operation of another business within the City.
RESPONSE: Canopy has not engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices with respect to the operation of another business within the City of Santa Barbara or anywhere else.
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Executive Summary
Canopy Club, Inc. is a California Non-Profit Mutual Benefit Corporation. Its mission is to create a unique Medicinal Healing, Research & Wellness Center, like a modern day version of the traditional Apothecary. The name, “Canopy”, stems from the concepts of healing medicines which grow from underneath the canopy of a Rain Forest. Canopy will achieve its objectives by offering non-cannabis and cannabis related natural medicines, herbs, and foods along with spiritual, psychological, and physical healing services to its legally mandated qualified members. The Membership Advisory Council Company Canopy is committed to expanding member care through offering professionalized education and community awareness programs, providing a secure wellness center for its members, and to offering safely tested products which serve specific medicinal needs. The organization’s goal is to generate a qualified membership base in the city of Santa Barbara and continue to support it with healthy services and healthy product offerings.
Canopy’s mandate is to help legitimize the cannabis industry through its experiences and partnerships with other established industries along with specialized quality product testing, research, and community outreach programs. Its highly qualified Membership Advisory Council Management Team has been involved in researching, developing, and implementing education platforms on the subject of herbal medicine and natural cancer treatment remedies for many years. Further, the vision of this council has always been to legalize, professionalize, and standardize these practices’ while bundling products and services together in a single offering, and “under one roof.” The organization embraces a relentless drive for quality and safety. All members of its extended family including its donors and industry partners believe The Canopy is positioned for long term success and will exert a major influence towards the positive growth aspects of the cannabis industry’s existing and future culture.
Initially the objective is to establish a premiere member driven store front dispensary and wellness education center. Canopy Club (an unincorporated non-profit voluntary association, managed by Canopy Club, Inc.) was decided as the starting point by the members after considerable consultation with Santa Barbara City Officials and business professionals. Santa Barbara’s citizens have an obvious need for medicinal herbal medicines and the city is looking for responsible, educated, and successful business professionals to operate while strictly abiding by city laws under the store front dispensary ordinance. Canopy believes it has the background to both service the growing local demand while satisfying city requirements and law enforcement.
The Canopy will provide a range of quality tested products to its members including,but not limited to, teas, organic juices, Eastern and Indian homeopathic
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medicinal treatments/remedies, multiple cannabis strains, CBD based strains, non- cannabis and cannabis based edibles, natural foods, herbs, oils, pain relief sprays, tinctures, lotions, and will eventually offer a complete clothing line of active wear. Canopy will not sell drug paraphernalia, allow on site consumption, or offer any other product or service which constitutes non-compliance with Santa Barbra’s City Ordinance.
Industry Dynamics
The US National legal medical cannabis market value is now assessed at $1.53 billion, comprising 21 states that have active and open sales of cannabis to people legally allowed to possess it under state law. The vast majority of industry establishments are concentrated in the West and Rocky Mountains, where there has been extensive cannabis legislation over the past decade. According to the State of Legal Cannabis Markets report, a report published every year by the ArchView Group, “the national market is projected to grow 68 percent from current levels to $2.57 billion by end of 2014.” “The five-year national market potential is $10.2 billion, which is more than a 700 percent increase above the current national market value.”
Together, California and Colorado alone are home to an estimated 64.3% of industry establishments and nearly 96.0% of industry revenue. California remains the largest state market at $980 Million, but is projected to increase dramatically by 2017 and will secure an even more dominant portion of the national market. According to the Cannabis Policy Project, a Washington, D.C.-based group that supports legalization, “the estimated annual sales tax revenue generated by medical cannabis organizations in California in 2014 will be $105 million.” As we know, California only allows nonprofit collectives to provide medical cannabis for its members, but the state's high population and long history of legalization has contributed to a high concentration of industry establishments. For example; it has allowed organizations operating legally and responsibly to begin offering niche products and services to a broad, widely tested market base.
Market Niche Business Opportunity
Alternative cannabis ingestion methods which offer consumers cannabinoid delivery formats other than smoking are one of the fastest growing segments in the cannabis industry. Applications of non-smoking technologies, such as vaporization, infused products such as edible, oral, mucosal, and capsule formats, are increasing.
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Beyond consumer preferences for not smoking, popularization of these ingestion methods is also based on more precise cannabinoid dosage and effect delivery. The way to measure dosage is through laboratory testing facilities which also have the ability to measure efficacy standards and safety testing. There are three legal and legitimate testing labs located throughout Southern California and all are associated with collectives. Canopy believes that a lab such as this is needed in Santa Barbara to protect its citizens (who would also be qualified members) from harmful products while informing them of what they are ingesting into their bodies.
Unique Marketing Concept
Canopy will be marketed by its sister organization, Canopy Productions. Canopy Productions is a special event production company that has been created to bring awareness and financial support to a variety of community based charitable causes through a series of concerts and festivals. Canopy Productions’ team has a wealth of experience in promoting and producing mid-range concerts and concert tours (2,000 – 7,000 capacity) and has a unique opportunity to bring world-class musicians and special performers to Santa Barbara in an effort to unite and educate the community about the positive effects cannabis has on real people’s lives. The festivals will be divided into three sections:
1. “Concert Staging Area” will contain performances by world renowned artists, local artists, and “Cirque’ du Soleil style” shows.
2. “The Street Walk” is a long and narrow walk-way with vendors, games, street performers, booths for local businesses, and medical education areas where people can learn about the positive effects of Medical Cannabis and other natural organic healing methods. The street walk also provides a vehicle where artists can express themselves and their works.
3. “Lectures and Learning” is a private lecture area for speakers and educators who wish to speak on the subject of cannabis. The lectures will be available to the public as well as industry professionals and member patients. The area would be contained inside of an enclosed structure (example: tent), and accessible to adults over the age of 21. No medical cannabis would be offered or dispensed at any location during the festivals.
*It is important to note that the marketing concepts listed will be held at off site locations and not on or near the dispensary premises.
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Canopy Productions will launch its festivals with the following organizations in mind: - Avon Walk for Breast Cancer - AIDS Walk Santa Barbara - Santa Barbara Community Foundation - Police & Firefighters League of Santa Barbara - Muscular Dystrophy Association - Americans for Safe Access.
Membership Advisory Council
The role of the Membership Advisory Council is to advise and consult with the Founder of Canopy, Ryan Howe, in specific areas related to each Advisors expertise. These individuals are experts in their related fields of clinical psychology, education, cultivation, and cannabis care programs for patients. The Council will also recommend future management personnel to the Founder. Other than Ryan Howe, Membership Advisors are only members of Canopy, and do not serve as management, employees, or on the Board of Directors for the organization.
Ryan Steven Howe, Founder & Chairman, Canopy, Inc. was the President of Thunder Bay Pictures, a 13-year partnership with Motown veterans Smokey Robinson and Mark Davis. During this duration, Ryan has produced and executive managed films such as “Spinning into Butter” starring Sarah Jessica Parker and the medically acclaimed film documentary, “The Evolution of Stem Cell Research” narrated by Leonard Nimoy. This documentary reflects Mr. Howe’s deep belief in new and non- traditional medical applications which treat diseases once deemed “untreatable” by traditional western medicine. Ryan has also produced and/or managed over a dozen live theatrical events and concert series including Drew Carey’s “Greenscreen Stage Tour” and the “Gladys Knight & Smokey Robinson Live Series”. Prior to formulating the entertainment company, Mr. Howe co-owned and managed Metrix Communications, a consulting and advertising firm located in Irvine, CA. The company focused on designing and marketing the very first web sites for companies such as Best Buy Music and Toshiba. Metrix also created international ad campaigns for Mazda USA including the “Zoom Zoom” series before being sold in 1998 to a large advertising agency for a significant profit. A California resident for over twenty-five years and permanent resident of Santa Barbara City, Mr. Howe originates from a family of doctors in San Diego who own Stemedica Cell Technologies, Inc., a leading stem cell research and manufacturing company. His involvement with the cannabis industry began several years ago after his mother was diagnosed with breast cancer for a second time.
Stanlee Panelle Cox (MFT) is a third-generation resident of Santa Barbara City, accomplished licensed family therapist (MFT), Clinical Psychologist, and educator. During the past five years, Ms. Cox has been operating a therapeutic coaching center in Oxnard, CA for individuals suffering from depression, anxiety, as well as many other
17 The Canopy Health and Wellness Center mental afflictions. She uses an eclectic combination of Gestalt, Cognitive Behavioral and Family Therapy methods to heal her patients. Additionally, she has created, produced, and hosted a series of educational workshops, cable television episodes, and radio talk shows giving her opportunity to council thousands of individuals, families, couples and children who are going through major life transitions. Prior to operating her private family coaching center, Ms. Cox practiced at the prestigious Morbrook Institute in Camarillo, California where she co-facilitated the longest running Women’s Support Group in Ventura County. During her tenure at Morbrook, she also originated & facilitated the Depression/Anxiety Recovery and the Gay/Lesbian Lifestyle Support Groups. Ms. Cox is the Granddaughter of Charles Phillip Cox (C.P. Cox & Son), the mason who built Santa Barbara’s sidewalks, and daughter of Stanley Phillip Cox, (Stan Cox Quartet & also the City Tax Appraiser), the musician who became the sound of Santa Barbara’s prestigious festivals during his lifetime. Like her Grandfather and Father, Stanlee strives to maintain Santa Barbara’s charm, wisdom, and dignity and wishes to give back to the City which has given her family so much through her healing talents and community leadership skills.
Thomas Lyle Martin, is a fifth-generation California farmer and resident of Lompoc. Mr. Martin was born into his farming career and had only a short break to study for a B.S. degree in business-finance at Santa Clara University; where he graduated with honors (Cum laude) and then returned home to manage the family farm. Thomas and his family have had a long history (over 40 years) of commercial raisin production as members of the cooperative, Sun Maid Inc. His responsibilities to the farm were wide ranging: beginning at the age of eleven with picking and pruning in the vineyard, to postgraduate, as the CFO and Director of Operations and Labor. For the past seven years Mr. Martin has directed a family effort to bring their knowledge of responsible agricultural production to medical cannabis farming. In this effort, he has joined with USDA attorney, Chris Van Hook, and helped to establish a baseline for “clean and responsible” cannabis production and extraction through the Clean Green certification program. Clean Green mimics what Mr. Van Hook implements for the USDA’s organic certification process with its farmers. Mr. Martin is well known throughout the industry as a recipient of awards including the coveted Cannabis Cup Award in 2011. He has also chaired and participated on several major product steering committees including a current group assigned to creating standards in cannabis production for ANSI regulations. In doing so, he has had the opportunity to work directly with scientists from the most credible and recognizable organizations in the industry such as Steep Hill-Halent Laboratories in Oakland, Ca.
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Operations Plan
Response to SBMC 28.80.060. Section E.6.:
Emergency Contact: Ryan Howe (805) 895-2578 Location of Operation: 118 N. Milpas St., Santa Barbara, CA 93103 Days of Operation: Monday thru Saturday Hours of Operation: 8:00 am – 6:00 pm Security Alarm & Camera Company: Philip Clough, Home Control Solutions. 1029 Chino Street, Santa Barbara, CA 93101. (805) 565-7755. Security Company & Guards: Venco Security, 1125 San Pascual St, Santa Barbara, CA 93101. (805) 966-7275. The security company must be a company approved by the chief of police (consistent with City Ordinance Section 30.185.250.F.3.c).Security Guards shall possess a valid state Department of Consumer Affairs “Security Guard Card” at-all- times.
Response to SBMC 28.80.050. Sections A.-E.:
Site Information: The applicant’s name is Ryan Steven Howe, Founder, Canopy Club, Inc. The current property owner is Merry Milpas, LLC. Parcel ID 017-091-016, Parcel Size: 4,449 S.F., Gross Interior Space: 2,382 S.F., Net Interior Space: 2,264 S.F., Area proposed for minor interior remodeling: 687 S.F., Zoning Commercial (C-2), Retail Stores Single Story.
Mr. Steven Bernston, a resident of Santa Barbara, is the lead partner among the investment group, Merry Milpas, LLC. who recently purchased the property. His real estate company, Marina Bay Company, is also headquartered in Santa Barbara. The Master Application, executed by Steven Bernston and Ryan Howe, is attached as Exhibit B. It is important to note that Mr. Howe and Canopy have not previously owned or operated a medicinal cannabis business in the City or County of Santa Barbara. Also, Steven Bernston has no relationship to Canopy other than being the land lord at the property for the proposed dispensary at 118 North Milpas.
Location and Hours of Operation: According to section 28.80.050 of the Santa Barbara City Zoning Code, a storefront dispensary may be located on parcels fronting Milpas Street between Carpinteria Street and Canon Perdido Street. 118 North Milpas Street is located on a parcel facing Milpas Street between Carpinteria and Canon Perdido and is marked on the city’s Medical Cannabis Dispensaries Milpas Map as an approved building to operate a storefront dispensary within.
To the knowledge of Canopy, currently there is only one other storefront dispensary that has been approved on Upper De La Vina (over 5 Miles away from 118 N. Milpas). Additionally, the nearest school is over 60019 feet away from the proposed storefront The Canopy Health and Wellness Center dispensary. The proposed site is clearly visible, single story, ground floor storefront location. It also provides good public views of the entrance and its windows from the street. The primary entrance is located and maintained clear of barriers, landscaping and similar obstructions and is clearly visible from the street and side walk. The parking lot has been deemed “legal non-conform” by the city and will instead become a landscaped garden and wellness area. A design drawing of the garden plan, including the proposed fence, location of the trash receptacles, location of the bike rack, and wellness area can be seen in “Exhibit D”- Proposed Plan for Garden. Also, listed in Exhibit D is the visual list of intended plants with indication of CA natives. All plants selected are either native to the area and/or bode low on their respective water requirements. Both properties on the north and south sides of the building are “Residential/Commercial” and there is little foot traffic near the proposed dispensary entrance. The building is ADA compliant and completely wheel chair accessible.
According to Section 28.80.080, paragraph D of the Santa Barbara Municipal Code – “On-Going Canopy Requirements for Medical Marijuana Storefront Collective Dispensaries,” Canopy must operate its storefront dispensary during the hours of between eight o’clock in the morning (8:00 a.m.) through six o’clock in the evening (6:00 p.m.), Monday through Saturday only. The days and hours of the dispensary’s operation shall be posted in a sign located on the street frontage of the dispensary premises in a manner consistent with the City’s Sign Ordinance.
Response to SBMC 28.80.080. Sections D.1.-D.8:
Dispensing Operations - New Patients and Caregivers: Canopy will dispense cannabis and cannabis related products In order to stay in compliance with California State Law Health and Safety Code Section 11362.5 et seq., Canopy will sell cannabis and cannabis related products ONLY to qualified patients or primary caregivers who are eighteen (18) plus years of age and who hold a current valid physician’s approval or recommendation and valid Government Issued ID in compliance with California State and Municipal Santa Barbara City guidelines. the criteria of the Compassionate Use Act of 1996 and the SB 420 statutes, and will only accept original documentation of a valid doctors’ recommendation AND a valid California Drivers’ License or California Identification Card. Canopy will ensure that its patients/caregivers consist of individuals residing within Santa Barbara County, as the term “principal residence” is defined in the federal Internal Revenue Code.
Canopy will keep each member's current “original” physician recommendation/ approval on file and on premises at all times. All documents will be verified prior to allowing access to the proposed dispensing, and only after the 24 hour waiting period, as is the protocol. To be clear, a registered member may obtain medical marijuana as a qualified patient or primary caregiver only after an initial waiting period of twenty-four (24) hours and after their initial “in-person” visit to the dispensary for the purposes of joining the Canopy. The Canopy Health and Wellness Center
Caregivers for Collective patients shall undergo the same background checks as collective members. If a physician is unavailable to verify the recommendation, the patient/caregiver will not be permitted to enter the dispensary until the recommendation can be verified. The rules of conduct, specifically including the points on the attachments, will be spelled out in a large sign located on the main wall of the front waiting room, visible near the desk of the receptionist in the waiting area. Thus, every member who enters must come to the desk and sign in and will be facing the sign displaying all the rules. New patients/caregivers will be informed of the dispensaries policy regarding consumption on premises. Sign-age will also be clearly and legibly posted within the dispensary regarding the rules and regulations of cannabis consumption within Santa Barbara as well as cannabis etiquette. Additionally, members will be given a map which defines the premises to consist of a two-hundred (200) foot radius around the dispensary, as well as the neighborhood in and around the proposed dispensary location. The map shall be attached to the patient agreement form and acknowledged in member records. This restriction does not apply to members who live within the mapped area to consume their cannabis in their own homes.
Re-Verification from the “Recommending Physicians’ Office”: Canopy will obtain verification from the recommending physicians’ office personnel that the individual requesting medical cannabis is or remains a qualified patient pursuant to Health and Safety Code Section 11362.5. All recommendations are good for one year.
Dispensing Operations - Existing Patients and Caregivers: Upon arrival at the dispensary, existing patients must provide original documentation of a valid doctors’ recommendation AND a valid California Government Issued ID. The member is logged into the computer system and given a number; then asked to take a seat in the waiting area while the computer system allows security to view the last visit from that member. This also prevents members from attempting to re-enter the dispensary on the same day even if the staff changes. Once an existing member acquires their medicine, they must exit the premises. Canopy has a strict zero-tolerance policy regarding illegal redistribution or sale of medical cannabis. Any patient or caregiver found in violation of this policy immediately forfeits access to Canopy for life. The organization will also maintain full and complete records of the following on a physically secure computer and hard copy: a) The verified physicians’ recommendation of each qualified member collective patient/caregiver. b) The full name, date of birth, residential address, and telephone number(s) of each Collective member and Canopy Member and copy of member's Valid Government Issued ID. Drivers’ License or ID Card. c) The date each Collective member and Canopy Member joined the Collective. d) The exact nature of each Collective member’s and Canopy Member’s participation in the Collective and purchase records. e) The current status of each member and Canopy Member as a Qualified Patient Member or Primary Caregiver checked on each visit.
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Dispensing Operations -Member Flow: All qualified members patients and primary caregivers shall enter the store front collective dispensary through the front doors outside of the “secured fenced/garden wellness area”. The secured outside gate to this area shall be used for exit only. Upon entering through the front door to the lobby reception area (or handicapped ADA entrance of the lobby reception area for handicapped members), a member of Canopy must check in at the reception counter and present his/her valid California Driver’s License or Government issued ID and valid physicians’ recommendation.
Once checked in, a member will be asked to take a seat in the lobby/reception area and encouraged to read the educational material and/or participate in computer based learning programs. When a patient is called, a Canopy Consultant will greet them at the secured access door and escort the member through the secure access doorway.
Consistent with the “one on one” canopy consultant/member model, Canopy will allow only as many members inside of the dispensary as there are Canopy Employees to serve them. Once served, the member will exit back through the secure access door in to the lobby reception area. In cases of over flow, members will also be directed to the exit door nearest the vault. This will allow for better security measures as it will alleviate crowding and congestion near the lobby entry controlled access door way. Lastly, it will provide a clear pathway for the security guards to exit members from the dispensary in a more controllable and fluid fashion thus eliminating crowding and lines. Operation of the Storefront Collective Dispensary shall be limited to serving no more than 150 qualified patient and/or primary caregiver members per day. After which, operations must cease and the premises closed for the remainder of the day. The side exit doors will be monitored by security cameras and security guards and will be used as the only entrances to the garden/wellness center. The exit doors are controlled access doors and will be used for exiting members during over flow capacity, emergency access, and trash disposal as needed. Member entry through these exit doorways will not be permitted.
Dispensing Operations - Expired Patients/Caregivers: Canopy’s computerized patient member/caregiver database will keep track of all patients’ expiration dates with respect to each of their physicians’ recommendation documents. If the patient member/ caregiver’s doctors’ recommendation is due to expire within less than thirty days, the computer prompts the receptionist to notify the patient. If a doctors’ recommendation is expired, the patient/caregiver will not be allowed access into the dispensary until their doctors’ recommendation is renewed.
No Physician On -Site: Canopy shall not have a physician on-site to evaluate patients and provide a Compassionate Use Act physicians recommendation for the use of medical cannabis.
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Dispensary Permit: Canopy shall conspicuously display at all times during its regular business hours, the permit issued pursuant to the provisions of this Chapter. The permit is displayed in a conspicuous place in the bottom left corner of the receptionist window in the lobby.
Commercial Use/Parking Requirements: Canopy shall be considered commercial use relative to the parking requirements imposed by Santa Barbara Municipal Code Section 28.90.100(1).
State Division of Alcoholic Beverage Control License: Canopy WILL NOT hold or maintain a license from the State Division of Alcoholic Beverage Control for the sale of alcoholic beverages or sell alcoholic beverages. No alcoholic beverages shall be allowed or consumed on the premises.
Consumption On Premises & Non-Obstructed Views of Signs: At no time is consumption allowed on/in the Dispensary premises by staff, patients, and/or caregivers. Patients and caregivers will be notified of this policy during their first visit to the dispensary as the patient agreement signed by every patient of Canopy clearly defines the consumption restrictions on the premises. This includes the secure dispensing area, outside lounge area, garden, street, and sidewalk within 200 feet of the dispensary by any collective member who receives their medical cannabis from the dispensary. The term “premises” includes the actual building, as well as any accessory structures, parking lot or parking areas, or other surroundings within 200 feet of the Collective Dispensary’s entrance. A sign shall be clearly and legibly posted in the proposed Dispensary indicating that smoking, ingesting, or consuming marijuana on the premises or in the vicinity of the Dispensary is strictly prohibited. However, signs shall not obstruct the entrance or the windows. Address Identification shall comply with Fire Department Illuminated address signs requirements. Additionally, members will be given a map which defines the premises to consist of a two-hundred (200) foot radius from the front door of the dispensary (Exhibit F: Revised Canopy Agreement Patient Form & Map). The map shall be attached to the patients’ agreement form and acknowledged in member records. This restriction does not apply to members who live within the mapped area to consume their cannabis in their own homes.
Signage: The dispensary sign will be limited for identification purposes only and will be labeled “The Canopy.” Canopy will comply with the Santa Barbara city sign ordinance (SBMC Chapter 22.70). It will consist of a single window sign, or wall sign that shall not exceed six square feet in area or 10% of the window area, whichever is less. Signs on the premises shall not obstruct the entrance or windows. Address identification shall comply with Fire Department illuminated address signs requirements.
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Other signs will also be located at the entrance to the storefront, in the lobby reception area, and inside of the dispensary which shall be clearly and legibly posted with notice indicating the RULES OF CONDUCT and STATE LAW COMPLAINCE WARNINGS:
Rules of Conduct, Thank You (To be posted at the lobby reception counter visible to all who enter.) • Persons under the age of eighteen (18) are prohibited from entering the premises. • Service provided only to qualified Members and/or qualified caregivers. • Prior to admittance, patient must provide a valid California Government Issued ID and a medical cannabis physician’s recommendation. • No Same Day Membership Service Allowed, a 24-hour waiting period is required prior to admittance.
Respect Our Neighbors, Please (To be posted in 2 locations at/near the front door and handicapped entrances visible from the exterior.) 24 Hour Video Surveillance, YOU ARE BEING RECORDED Open 8:00 am to 6:00 pm Monday through Saturday. Please do not loiter or litter around the area. Alcoholic beverages are not to be consumed or allowed on the premises. Smoking, ingesting, or consuming cannabis on the premises and/or within 200 feet of the dispensary is strictly prohibited.
STATE LAW COMPLAINCE WARNINGS: (To be posted in 2 locations. 1 near the exit of the interior dispensing visible to all who exit the dispensing area. The other to be posted clearly on the main wall near the vault and bathroom area visible to all who acquire product.) a. The diversion of marijuana for non-medical purposes is a criminal violation of state law. b. The use of marijuana may impair a person’s ability to drive a motor vehicle or operate heavy machinery. c. The sale of marijuana and the diversion of marijuana for non-medical purposes are violations of state law.
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Response to SBMC 28.80.080. Sections E.1. & E.2.:
On-Site Consumption & Re-Distribution Restrictions: No patient, caregiver, dispensary employee, or manger may consume, eat, smoke, or vaporize cannabis on the premises. The patient agreement signed by every patient of the Canopy clearly defines the consumption restrictions on the premises, the accessory structures, parking areas, and surroundings within 200 feet, by any collective member who have received medical cannabis from the dispensary. Security will monitor the site activity to ensure rules are being followed and Canopy may suspend or terminate services to any qualified patient/caregiver found to be in violation of the patient agreement.
Canopy will enforce a strict, zero tolerance policy regarding the redistribution of medical cannabis and/or sale of cannabis products of any kind without a valid State License. Any member patient/caregiver found in violation of this policy immediately forfeits their access to Canopy and may never return. The organization will maintain and open channel of communication with Santa Barbara Police Department to share any information regarding offenders found in violation of illegal distribution.
Response to SBMC 28.80.080. Sections F.1. & F.2.:
Canopy Product Offerings: Canopy will provide a range of quality tested products to its members including, but not limited to, multiple cannabis strains, CBD based strains, edibles, oils, pain relief sprays, tinctures, lotions, and will eventually offer a complete clothing line. All products will be packaged with child proof warning labels and child proof packaging.
Canopy will not sell or display for sale drug paraphernalia or offer any other product or service which constitutes non-compliance with Santa Barbra’s City Ordinance. All dispensing of medical marijuana will occur exclusively within the boundaries of the city of Santa Barbara and only at the real property identified as the permitted Dispensary location on the approved Storefront Collective Dispensary Permit application.
Canopy and its employees will not cause or permit the sale or exchange of Medical Marijuana or of any Edible Medical Marijuana product to any non-Collective Member. Canopy will not possess medical marijuana that was not collectively cultivated by its members either at the property or properties that are designated for cultivation and will limit cannabis offerings to one cannabis related transaction per member in a twenty- four (24) hour period and not to exceed 2 ounces of cannabis. This will help to solve Canopy and law enforcement’s concerns about non-diversion.
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The following is a complete product and service offering list:
1. Multiple Cannabis THC 28. Essential Oils 58. Light Therapy Dominant Flower Strains 29. Massage Oil 59. Ozone Therapy 2. Multiple Cannabis CBD 30. Cooking Oils 60. Healing Wands Dominant Flower Strains 31. Spices 61. Cannabis Education 3. Non‐Psychoactive Based 32. Hemp & Non‐ Hemp 62. Classes Herbs Clothing & Active Wear 63. Cannabis Workshops 4. Clones 33. Incense 64. Cooking Classes 5. Cannabis Oils 34. Nutritional Supplements 65. Lectures/Seminars 6. Full Plant Extract 35. Nutritional Vitamins 66. One on One Consultation 7. CO 2 Extracts 36. Nutritional Bars 67. Group Consultation 8. Honey Oil 37. Caramel Popcorn 68. Yoga 9. Heat Pressed Resin 38. Caramels 69. Meditation 10. Oil Capsules 39. Seven Layer Bar 70. Massage Therapy 11. Keef 40. Banana Bread 71. Protocol Consulting 12. Wax 41. Zucchini Bread 72. Sound Healing 13. Shatter 42. Cookies 73. Reiki 14. Sugar Oil 43. Pecans/Nuts/Cashews 74. Accupuncture 15. Suppositories 44. Chocolate Bar 75. Cosmetics 16. Pain Relief Sprays 45. Butter 76. Candles 17. Pain Relief Salves 46. Granola 77. Sundries 18. Tinctures 47. Granola Bars/Trail Mix 19. Lip Baum 48. Brownie 20. Bath Balm/Salt 49. Snack Mix 21. Body Lotions 50. Cereal Marshmallow Bar 22. Body Wash 51. Honey 23. Face Wash 52. TEA 24. Face Creams 53. Chocolate Truffles 25. Healing Creams 54. Organic Juices 26. Coffee 55. Adult Candies 27. Cough Drops 56. Organic Cake 57. Fruit Chews
Response to SBMC 28.80.080. Sections G.1. - G.5.:
State Law Compliance Warning: Posted in a conspicuous location inside the Storefront Collective Dispensary advising the public of the following: a. The diversion of marijuana for non-medical purposes is a criminal violation of state law. b. The use of marijuana may impair a person’s ability to drive a motor vehicle or operate heavy machinery. c. The sale of marijuana and the diversion of marijuana for non-medical purposes are violations of state law.
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Not for Profit Operation: Canopy shall not operate for profit. Cash and in-kind contributions, reimbursements, and reasonable compensation for services provided by Management Members and Collective Members towards the Collectives actual expenses for the growth, cultivation, processing, and provision of Medical Cannabis to qualified patients of the Collective is allowed provided that such reimbursements are in strict compliance with the applicable provisions of California State Law. All such cash and in- kind reimbursement amounts and items will be fully documented and in the financial and accounting records of Canopy in accordance with and as required by the record keeping requirements of this chapter.
Cultivation of Medical Marijuana: Canopy will not cultivate medical marijuana. at its permitted store front location. and will limit cultivation to its collective members and Canopy Members. Cultivation of medical marijuana by the Collective members and the Canopy Members will occur exclusively within the boundaries of the counties of Santa Barbara, Ventura, or San Luis Obispo County and only at the real property identified for such cultivation on the approved Storefront Collective Dispensary Permit application. No cultivation of medical marijuana at any Property where the marijuana is visible, with an un-aided eye, from the view point of any public or private property. Also, no cultivated medical marijuana or dried medical marijuana will be visible from the building exterior on the Property and no cultivation shall occur at the Property of the Collective unless the area devoted to the cultivation is secured from public access by means of a locked gate and any other security measures necessary to prevent unauthorized entry. (See Exhibit E - Photos to prove Cultivation is not visible and is Secure).
Distribution in Santa Barbara Only: Distribution of medical cannabis collectively cultivated by some collective members to other collective members shall occur exclusively within the boundaries of the City of Santa Barbara and only at the real property identified as the permitted dispensary location on the approved Storefront Collective Dispensary Permit Application.
Membership Limited to One Collective: Membership in Canopy will be limited to one Collective per qualified patient or primary caregiver. Canopy shall also consist only of individuals residing within Santa Barbara County, as the term “principle residence” is defined in the federal Internal Revenue Code.
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Response to SBMC 28.80.080. Sections H.1. - H.4.:
Record Keeping:
Inventory Records: Canopy will purchase packaged and tested inventory from M- Licensed distributors and sell/deliver the purchased items direct to the end-consumer. All Inventory sold between a licensed distributor and Canopy shall include a Manifest and Invoice, with each party retaining its own set of records. All Inventory purchased is entered into the Inventory Tracking System and Financial Management systems and will be updated in the METRC Track & Trace system once METRC is operational. Canopy shall maintain hard copy and computerized inventory records pertaining to: 1) A description of each item in inventory. This description will be such that the cannabis goods can easily be identified; 2) An accurate measurement of the quantity of the item; 3) The date and time the cannabis goods were received by the retailer; 4) The sell-by or expiration date on any cannabis goods, if any; 5) The name and license number of the licensee that delivered the cannabis goods to the retailer; 6) The name and license number of the distributor that provided the cannabis goods to the retailer; 7) The price the retailer paid for the cannabis goods, including taxes, delivery costs, or any other costs; and 8) A copy of the Test Results (COA’s) will be recorded with all transactions. Upon receipt of test results, the Inventory Manager will confirm the certificate of analysis (COA)'s. Once each item is recorded in the inventory tracking system, the Invoice details are entered into the Financial Management system, and pdf file saved to the Invoices folder.
Membership Records: Canopy shall maintain full and complete records of the following membership information: 1. the full name, date of birth, residential address, and telephone number(s) of each Collective member and Canopy Member; 2. the date each Collective member and Canopy Member joined the Collective; 3. the exact nature of each Collective member’s and Canopy Member’s participation in the Collective; and 4. the current status of each member and Canopy Member as a Qualified Patient or Primary Caregiver. All physician recommendations will be stored alphabetically and filed along with a copy of the members CA ID. A database of qualified collective members has been created and will monitor exportation dates. All collective members are assigned a numeric code and expiration dates on doctors’ recommendations are tracked via an industry standard computer web site system. Caregivers for Collective patients shall undergo the same background checks as collective members.
Financial Records: Canopy shall also maintain a written accounting record or ledger of all cash, receipts, credit card transactions, reimbursements, (including any in-kind contributions), and any and all reasonable compensation for services provided by the Canopy Members or other members of the Collective, as well as records of all operational expenditures and costs incurred by the Dispensary in accordance with generally accepted accounting practices and standards typically applicable to business records.
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Dispensary Records Retention Period: The records required in the above three paragraphs shall be maintained by Canopy for a period of five (5) years and shall be made available to the City upon a written request, subject to the authority set forth in Section 28.80.090.
Response to SBMC 28.80.100. Sections A. & B.:
Transfers to or from a Non-Collective Member: Canopy will not permit the sale or distribution or exchange of Medical Cannabis or of any Edible Medical Cannabis Product to any Non-Collective Management Member or member. Canopy will not possess medical cannabis that was not collectively cultivated by its members at the property (or properties) designated for the cultivation.
Assistance for Edible Cannabis Products: Canopy acknowledges providing of Edible Medicinal Cannabis Products is permitted under the rules of the ordinance.
Response to SBMC 28.80.130. Sections A.-D.:
Collective Dispensary Permit – Site Specific: Canopy will not operate our Storefront Collective Dispensary at any place other than the address stated in this application. The Collective Dispensary Permit will not be transferable to a different location, unless authorized by the City.
Transfer of a Permitted Collective Dispensary: Mr Howe will not transfer ownership or control of his Storefront Collective Dispensary Permit to another person or entity unless and until the transferee obtains an amendment to the permit from the Staff Hearing Officer pursuant to the permitting requirements of this Chapter. Such an amendment may be obtained only if the transferee files an application with the Community Development Department in accordance with all provisions of this Chapter accompanied by the required transfer review application fee.
Request for Transfer with a Revocation or Suspension Pending: The Canopy permit may not be transferred (and no permission for a transfer may be issued) when the Community Development Department has notified the permittee in writing that the permit has been or may be suspended or revoked for non-compliance with this Chapter and a notice of such suspension or revocation has been provided.
Transfer With-Out Permission: It is understood that any attempt to transfer our Storefront Collective Dispensary permit without permission, either directly or indirectly, is a violation of this Chapter, and the permit shall be deemed revoked.
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Response to SBMC 28.80.140.:
Medical Marijuana Vending Machines: Canopy will not possess or operate a vending machine.
Response to SBMC 28.80.150.:
Business License Tax Liability: The organization will apply for and obtain a Business Tax Certificate pursuant to Chapter 5.04 as a prerequisite to obtaining a Storefront Collective Dispensary permit pursuant to the terms of this chapter. When and as required by the State Board of Equalization, Storefront Collective Dispensary transactions shall be subject to sales tax in a manner required by state law.
Response to SBMC 28.80.080. Sections A. & B.:
Criminal History: Canopy will not have, as a Management Member, anyone who has been convicted of a felony or be on probation or parole for the sale or distribution of a controlled substance.
Minors: Canopy will not employ any person under the age of twenty-one (21). A sign will be posted that persons under the age of eighteen will not be allowed on the premises of the proposed Dispensary unless they are a qualified patient member of the Collective and they are accompanied by a parent or guardian at all times. The entrance to a Storefront Collective Dispensary shall be clearly and legibly posted with a notice indicating that persons under the age of eighteen are precluded from entering the premises unless they are a qualified patient member of the Collective and they are in the presence of their parent or guardian. The organization would like to impress upon the City that our Canopy team closely scrutinizes the authenticity of all recommendations and identifications presented, while verifying all information. Canopy would also like to be clear that our organization strictly prohibits interacting with anyone who is not a member and especially a minor. Canopy believes the Patrol Guards coupled with state of the art camera and alarm systems, education programs, and being active within the community are effective preventative measures to deter Minors attempting interaction with the dispensary.
30 The Canopy Health and Wellness Center
Response to SBMC 28.80.080. Sections C.1.- C.7.:
Dispensary Size:
1. Entire Lot Space – 4,449 S.F. 2. Gross Interior Space - 2,382 S.F. (entire building) 3. Net Interior Floor Space - 2,264 S.F. (entire building) 4. Proposed interior area scheduled for minor remodeling - 687 S.F.
The “waiting reception area” is 537 S.F. and has ample room to seat 10-12 members comfortably if needed. However, Canopy anticipates there will not be more than 6 members in the waiting reception area at one time. The waiting reception area will be used for membership sign up, education consultations, and member reception. It is large enough to prevent line ups at the door, front door blockage, and loitering on the sidewalk and street. The actual floor space of the “Secured Area for Dispensing” is 847 S.F., justifiable to meet the needs of the community and large enough to accommodate multiple (up to four) one-on-one Canopy/Member dispensing experiences at a time. Canopy will open its doors with two full time floor consultants, one receptionist, one floor manager, and a security guard. Members will be escorted at all times by a security guard, the floor manager, the receptionist, and/or the floor consultants. Employees will be added as needed.
The manager’s office, the wellness office, and the secure receptionist office total an additional 315 square feet. These offices will be used for day to day management activities including member verification, member interviews, and member wellness services. The secure reception office will be staffed by a full-time receptionist to receive members however security will oversee and monitor member traffic. There are also two ADA bathrooms which together comprise 126 S.F. The bathrooms will be locked at all times and members wishing to use the bathrooms will be escorted by a security guard. Lastly, a room totaling 153 S.F. located in the rear left corner of the building which will be converted to a vault for storage of cash and product. (See Exhibit A1.0 Site and Floor Plan and Exhibit A1.1 – Security Plan and on page 38 for more information on “The Vault”).
Dispensary Access: Only Collective members who are primary caregivers or qualified patients shall be permitted within the dispensing and secured areas of the building. (As shown on Exhibit A1.0 Site and Floor Plan). A qualified patient or primary caregiver shall not visit the dispensing area or any secured area without first obtaining a valid written physicians recommendation from his/her licensed M.D. recommending the use of medical cannabis or, in the case of a primary caregiver, without first having been expressly designated as a primary caregiver to a qualified patient as required by the
31 The Canopy Health and Wellness Center
Compassionate Use Act. A qualified patient or primary caregiver will not obtain medical cannabis upon their first in-person visit to Canopy and, instead, may only become a member of the Collective at the first visit to Canopy. For the delivery service, members may also register on-line. Upon joining the Collective, a registered member of Canopy may obtain medical cannabis as a qualified patient or primary caregiver only after an initial waiting period of 24 hours, and after their initial in-person visit to Canopy. for the purposes of joining the Collective. After the 24 hour waiting period and validation of the patient’s physician recommendation, a qualified patient may become a member of Canopy. Caregivers for Collective patients shall undergo the same background checks as collective members.
Management/Employees:
Faith Strader/Board Member & Manager: 4612 Via Roblada, Santa Barbara, CA 93110 Byron Engleking/Board Member & Manager: 435 ½ Old Coast Highway, CA 93103 Wendy Hewett/Board Member & Manger: 4827 Ogram Road, Santa Barbara, CA 93105 Adam Hewett/Board Member & Manager: 4827 Ogram Road, Santa Barbara CA 93105 Mukesh Patel/Manager: 409 Old Coast Highway, Santa Barbara, CA 93101 Clay Becker/Floor Manager: 121 West De La Guerra Street, Santa Barbara, CA 93101 Steven Ruggieri/Manager: 323 Elizabeth Street, Santa Barbara, CA 93103 Aaron Schulman/Board Member: 2921 Lomita Road, Santa Barbra CA 93105 If Ryan Howe is not on site during regular business hours, one of the above expressly designated Managers will be on-site during regular business hours at-all-times and is responsible for monitoring the property. All management/employees prior to hiring are subject to a background check. No person convicted of a felony, on probation or parole will be hired. If an employee or manager obtains probation or parole or during employment, that person will be placed on leave until they are no longer on probation or parole. If they commit a felony while employed, they will be place on leave until legal resolution. If convicted, the employee or manager will be immediately terminated. Upon hire, all employees must submit a completed W-4 and Basic Personal Information Sheet. These records are placed in the employee’s personal file and stored in a locked file cabinet and on a computer hard drive located in the manager’s office. Only dispensary senior employees will have access to these files. All employees and managers of Canopy will be subject to random drug testing; if failure occurs they will be subject to immediate termination. Those that test positive for cannabis and have a valid doctor’s recommendation will be exempt.
Restrooms: There are two fully ADA Complaint restrooms at the proposed dispensary. The restrooms are located at the back of the building and are armed with fire alarms. Restrooms will remain locked and members, employees, and caregivers must ask permission for access. If a member or caregiver must use the restroom, security will open it for them and remain standing guard outside of the door until the member or caregiver is finished. At no time is cannabis allowed in the restroom. 32 The Canopy Health and Wellness Center
Security Plan
Response to SBMC 28.80.060. Sections E.3 – E.5:
(The security floor plan is attached in Exhibit A1.1.)
Security Guards:
Venco Security will be providing standing guard and uniform patrol services for Canopy. They are fully licensed and accredited by the State of California and are located at 1125 San Pascual St, Santa Barbara, CA 93101. (805) 966-7275.
The security company must be a company approved by the chief of police (consistent with City Ordinance Section 30.185.250.F.3.c). A minimum of two Security Guards shall be on site during regular business hours, and one guard shall be on site or within 200 feet of the premises, if on patrol, 24 hours/7 days a week. In the event of the guards taking breaks during regular business hours or escorting staff off premises, back-up guard (s) shall be provided to maintain the two-guard minimum during operating hours. The Security Guards will ensure the safety and protection of persons and property on the premises. The term “premises” includes the actual building, as well as any accessory structures, parking lot or parking areas, or other surroundings within 200 feet of the Collective Dispensary’s entrance.
The Sentry Guard will be the Lead or Supervisory Guard and has a “station”, with a Drop Safe, located in the North/East Corner of the Reception Area, with a Communications and Surveillance System. The system provides the guard with split- screen, multiple-area video surveillance and two-way audio communications, in multiple areas, simultaneously. Throughout the day, the Sentry Guard may escort employees to handle collective business.
The Patrol Guard will report to the Sentry Guard and is on site to ensure the street and sidewalks outside of the dispensary are clear and that the operations of other businesses in the area are not negatively affected by the operations of the dispensary. The Patrol Guard shall patrol the exterior of the property a minimum of once an hour and will be located near the dispensary exit doors and surrounding areas to ensure there is no cannabis or alcohol use on the site; address any nuisance issues, including loitering; picking up litter and cigarette butts; and report any graffiti identified in the area. Security Guards shall possess a valid state Department of Consumer Affairs “Security Guard Card” at-all-times. Security guards shall not possess or carry firearms or Tasers while working at a Collective Dispensary
33 The Canopy Health and Wellness Center
Security Cameras:
Security Cameras will be installed and monitored by a local Santa Barbara Company: Home Control Solutions, 8140 Walnut Hill Ln. Santa Barbara, CA 93101. (805) 565- 7755. Placement of the security cameras and additional consulting for the “Security Plan” (located in Exhibit A1.1) was done by Jason McGillivray.
The property, at-all-times, will be monitored by closed-circuit television. After hours security camera monitoring shall have a twenty-four (24) hour remote live feed and monitored by the police department and/or a security company approved by the chief of police. Monitoring system cameras will be done in both the security office as well as in the office marked 107. The NVR (recording device for the cameras) will be located in the Vault. All protection devices and cameras will be hardwired back to this location. The Cameras will be in two formats/Interior=Dome/Exterior=Bullet. Part numbers for the cameras are: NVR-Camera Recorder-Synology-RS2414+ Dome Camera(indoor) Hikvision DS-2CD2732F-IS Bullet Camera(outdoor) Hikvision DS-2CD2632F-I
There will be a total of seventeen cameras located in the following areas: Outside of the building there will be eight cameras: o 3 Cameras Attached to the front building. 2 on its respective corners and 1 over the main entrance - Pointing at the entrance on Milpas Street; o 1 Camera attached to the (South/West) corner of the building - Pointing North towards Milpas Street; o 2 Cameras attached to the (South/East) corner of the building – 1 Pointing North towards Milpas Street and the sidewalk; and 1 camera located above the rear exit door pointing at the entrance and the wellness/garden area. o 1 Camera attached to the (North/East) corner of the building – Pointing (South) towards the rear of the building; o And, 1 Camera attached to the (North/West) side of the building pointing towards the rear exit doors, handicapped ramp and neighboring property. *Cameras cannot be installed on the rear (east) wall or the rear most section of the south wall due to city ordinance regulations regarding neighbors right to privacy.
There are internal security cameras within the business premises as follows: In the reception/lobby Areas there will be two cameras: o Above Secured Access Door to Dispensary - Pointing towards the front door into the lobby. o Above the Handicapped Access Door - Pointing towards the receptionist area and into the lobby.
34 The Canopy Health and Wellness Center
In the dispensary area there will be five cameras: o Above the Front Emergency Exit Door – Pointing at the back of the reception area and down the hallway into the dispensary. o On the ceiling Above Secure Access Door – Pointing towards the secure access door. o In the South East Corner of the dispensing area above the Product Cases – Pointing out towards the dispensary. o In the North East Corner of the dispensing area above the sink and counter – Pointing out towards the dispensary areas o Above the rear Emergency Exit Door – Pointing down the hallway into the dispensary. One Camera will be inside of the vault. One Camera in the Vestibule above the entrance to the vault.
Security Alarm System:
The Alarm Systems for burglary and fire will be installed and maintained 24 hours a day 365 days a year by a local Santa Barbara Company: Home Control Solutions, Philip Clough, Home Control Solutions. 1029 Chino Street, Santa Barbara, CA 93101. (805) 565-7755. Placement of the alarm system and additional consulting for the “Security Plan” (located in Exhibit A1.1) has been done by Jason McGillivray. The burglary and fire alarm system will be registered with the police department.
The alarm panel (or the brain) will be located in the vault and the alarm keypad(s) (arm/disarm device) will be located near an entry door to disarm within 30 seconds after entering. Panic/hold up buttons will be located in the reception area, the Vault, and in the Security Office. They will be hidden under desks or a hidden tamper proof location. Operable doors/windows will be contacted and products will be purchased from Home Control Solutions. The Part numbers for the cameras are:
Alarm Panel-ELK-M1GSYS48 Keypad-ELK M1KP2 Siren-ELK SP35 Motion Detector-Bosch ISC BDL2 WP12G Panic Button-USP HUB25A
35 The Canopy Health and Wellness Center
Additional Security:
Canopy will add a metal detector per Santa Barbara Police Department Compliance Requirements. Canopy will have a walk through detector that will be incorporated near the front door.
The reception window will be fitted with bullet proof glass (See floor Plan Exhibit A1.1).
Doors and Locks: Consultation done by Chris Wilcox, Locksmith Technician at Tri- County Locksmiths, Inc. 300 Pine Ave. Goleta, CA 93117. (805) 967-4300. www.tricountylocks.com. (Numbered Rooms are referenced on Exhibit A1.0 – Site and Floor Plan)
Room 100, entry doors into the lobby reception waiting area. A Standard Aluminum Door is located on the front of the building facing Milpas. Locks on the Standard Aluminum Door will be upgraded to a SCHLAGE TWO SIDED KEYED DEADBOLT.
A handicapped access door leading into the lobby reception area is located on the west side of the building facing Mason Street, specs are: (1-3/4" THK. SELF CLOSING, INSULATED 16ga. (RATED EXTRA HEAVY-DUTY USE) STEEL THRULITE STILE AND RAIL DOOR ASSEMBLY. DESIGN FULL GLASS (FG) AND 16ga. (SERIES SQW GASKETED) STEEL FRAMES. AS MANUFACTURED BY CECO DOOR, 9159 TELECOM DRIVE, MILAN, TN. 38358, PHONE # 1-731-686-8345, WEB URL ADDRESS: http://www.cecodoor.com). The current hardware and Lock on the handicapped access door facing Mason Street is: Von Duprin 7700, P/N 7700 Series w/ rim ext. NESC Trim. 2 N Series Schlage. P/N D53PDRHO613 Privacy.
Room 101, Security Office. Upgrading to premium fiberglass see through glass finish so that Security Officer can see clearly into the lobby waiting area, front door and handicapped entry ways, and registration areas with an unobstructed view. The door and lock information is: Pella Architect Series fiberglass door with a 4" wide, full-length wood lock block and steel deadbolt reinforcement plate. Made by Pella Corporation, 102 Main Street, Pella, Iowa 50219, Phone: 641-621-1000. www.pella.com.
Handicapped Access Ramp located between Room 101 and Room 108, Controlled Access Entry into the dispensing area. The Controlled Access Entry Door will be purchased from Pacific Bulletproof, which carries one of the most complete lines of bullet resistant storefront doors. These forced entry and bullet resistant doors prevent break-ins and protect from outside violence. Pacific Bulletproof Storefront Doors offers a full outside view while maintaining structural integrity and security. Doors are available in Aluminum or Stainless Steel framing. Canopy will be using Stainless Steel.
36 The Canopy Health and Wellness Center
Pacific Bulletproof Storefront Doors Product ID: PBBRSD Phone: 888‐358‐2309 Product Info Custom sizes available Aluminum, Steel or Stainless Steel framing Meets UL 752 Standards Levels 1 ‐ 8
The reception area will contain an electronic door lock release to the Controlled Access Entry Door into the dispensing area. The door lock release will be a Push- On To Open Button, 125V, 15 Amps, P/N 250/6. There will be a Power Invertor Box installed w/Battery Back-up, 24V, 5 amp/hr, P/N B-24-5 to Electric Strike (12V or 24V), P/N 7501-240-630. The hardware and lock will be: Function Lever Grade 1, P/N D53PDRHO613 Storeroom and also a Door Closer, P/N LCN4111HCUSHALLH.
There are two Exit Doors facing west towards Mason currently marked as Emergency Exit doors. These exit doors are also located within the secure access dispensing area. The doors will be monitored by security cameras and security guards and will be used as the only entrances to the garden/wellness center. The exit doors are controlled access doors and will be used for exiting members during over flow capacity, emergency access, and trash disposal as needed. Member entry through these exit doorways will not be permitted.
Currently the specs for the doors in place for each exit are: 1-3/4" THK. SELF CLOSING, INSULATED 16ga. (RATED EXTRA HEAVY-DUTY USE) STEEL THRULITE STILE AND RAIL DOOR ASSEMBLY. DESIGN FULL GLASS (FG) AND 16ga. (SERIES SQW GASKETED) STEEL FRAMES. AS MANUFACTURED BY CECO DOOR, 9159 TELECOM DRIVE, MILAN, TN. 38358, PHONE # 1-731-686-8345, WEB URL ADDRESS: http://www.cecodoor.com, however Canopy will be replacing these doors
37 The Canopy Health and Wellness Center with the Pacific Bulletproof Storefront Doors mentioned above, Product ID: PBBRSD with Stainless Steel framing and Meets UL 752 Standards Levels 1 – 8. The locks and hardware that will be added are: Von Duprin 7700, P/N 7700 Series w/rim ext. NESC Trim. 2 N Series Schlage. P/N D53PDRHO613 Privacy
Rooms 104 and 103 Restrooms: Current Doors: 1-3/4" THK. MASONITE SOLID CORE FLUSH WOOD DOOR. SELF-CLOSING LABELED 3/4 HOUR FIRE RATED DOOR & FRAME, NOTE: W/ TIGHT FITTING SMOKE & DRAFT CONTROL ASSEMBLY PER CBC SECT. 716.5.3.1 FRAME: PREFINISHED TIMELY KNOCK DOWN FRAMES WITH SNAP ON CASING TRIM. MANUFACTURER: TIMELY INDUSTRIES, 10241 NORRIS AVENUE, PACOIMA, CA 91331-2218; TELEPHONE: 800-247-6242; FAX: 818-492-3530; E- MAIL: [email protected] WEBSITE: WWW.TIMELYFRAMES.COM. The current Locks are 2 N Series Schlage, P/N D53PDRHO613 Privacy.
Room 105
The Vault: Dean Safe Co. has served the Santa Barbara and surrounding areas since 1978. The Contact Name at Dean Safe Co. is Susan Bozarth: Phone: 805-526-5443, 4440 Address: Industrial St. Simi Valley, CA 93063 … [email protected]. The vault will be located in the rear of the building and is marked 105 on the floor plan located in Exhibit A1.0 and Exhibit A1.1. Much like a bank or a pharmacy, the vault will be used as a working area during business hours to manage all cash transactions and fulfill and package all cannabis related orders through secure openings carved into the side of the vault. During non-business hours, the vault will be used to store cannabis related products, house cash and cash registers, and will store membership information.
38 The Canopy Health and Wellness Center
Specifications:
Two-inch thick door constructed of 1/8-inch inner and 1/4-inch outer steel plates filled with fire protection
U.L. listed Group II lock with spy-
proof ring
Hard plate and two relocking devices
protect against attempted entry Five-spoke handle, pull handle and zinc die-cast logo Ten 1.5-inch diameter chrome-plated locking bolts Note: no deadbolts required on in- swing door Commercial grade vault door hinges Two-stage dual fire seals with silicone seal on door jambs Palusol™ expandable door seal Safety lock release Adjustable door frame from 4.75 inches to 9.75 inches
Rooms 106 and 107 Business Offices.: Doors to be installed are 1-3/4" THK. MASONITE SOLID CORE FLUSH WOOD DOOR. SELF-CLOSING LABELED 3/4 HOUR FIRE RATED DOOR & FRAME, NOTE: W/ TIGHT FITTING SMOKE & DRAFT CONTROL ASSEMBLY PER CBC SECT. 716.5.3.1 FRAME: PREFINISHED TIMELY KNOCK DOWN FRAMES WITH SNAP ON CASING TRIM. MANUFACTURER: TIMELY INDUSTRIES, 10241 NORRIS AVENUE, PACOIMA, CA 91331-2218; TELEPHONE: 800-247-6242; FAX: 818-492- 3530; E-MAIL: [email protected] WEBSITE: WWW.TIMELYFRAMES.COM. The Locks installed on these doors will be SCHLAGE TWO SIDED KEYED DEADBOLTS.
Response to SBMC 28.80.060. Sections E.7.-E.10.:
Public Nuisance: Canopy’s Operating Plan provides for the Management Members of the Collective Dispensary to take all reasonable steps to discourage and correct objectionable conditions that constitute a public or private nuisance in parking areas, sidewalks, alleys, and areas surrounding the premises and adjacent properties during business hours if directly related to the patrons of the Storefront Dispensary. Each member must read and sign a “member agreement form”, which clearly states that once
39 The Canopy Health and Wellness Center a patient receives medicine, they must exit the proposed storefront dispensary location and leave the premises. Further, by having two security guards on premises it should dissuade any activity that could be deemed a “nuisance” at the proposed dispensary location and within the surrounding areas.
Loitering Adjacent to the Dispensary: Each member must read and sign a “member agreement form”, which clearly states that once a patient receives medicine, they must exit the proposed storefront dispensary location and leave the premises, and there is to be no loitering. The Patrol Guard is to ensure that the operations of other businesses, public areas, sidewalks, alleys and areas surrounding the property and adjacent premises during business hours will not be negatively affected by the use of the site as a dispensary. Through patrolling the proposed storefront dispensary location and surrounding areas; to ensure there is no cannabis or alcohol use on the site, address any nuisance issues, including loitering, picking up litter and cigarette butts; and report any graffiti identified in the area. Canopy will have discreet signs reminding patrons to respect our neighbors, not to use the product on-site, not to litter or loiter; and patrols of the surrounding areas will also insure that the patrons’ conduct is controlled.
Trash, Litter, and Graffiti: On trash collection days, the Storefront Collective Dispensary Management shall remove the trash and recycling containers from the secured fenced area and place them in an area outside of the secure fenced area for servicing by the waste hauler. The trash and recycling containers shall be returned to the trash/recycling enclosure within the secured fenced area by the Storefront Collective Dispensary Management prior to the close of the dispensary that same day. Waste Hauler personnel shall not enter the controlled premises of the dispensary.
The trash receptacle used by the dispensary shall be locked and screened from view at all times. The side exit doors are controlled for Emergency Access only, but may be used for trash disposal as needed. The Patrol Guard is to ensure that the operations of other businesses, public areas, sidewalks (including the sidewalks adjoining the Dispensary plus ten feet beyond property lines), and alleys are clear of litter, debris, and trash during business hours. He or She will also ensure that the operations of other businesses in the area are not negatively affected by the operations of the dispensary. The term “premises” includes the actual building, as well as any accessory structures, parking lot or parking areas, or other surroundings within 200 feet of the Collective Dispensary’s entrance.
The Patrol Guard is also to immediately report any graffiti identified in the area. Graffiti is to be removed with 72 hours of application. Graffiti Identification/Abatement Plan: While there is a Graffiti Abatement City Ordinance in Santa Barbara which states that if we do not remove any graffiti on our property within 72 hours, city staff may remove it
40 The Canopy Health and Wellness Center
at cost to the property owner; the organization also wishes to have any and all graffiti eradicated as immediately as possible.
The procedure for graffiti removal is: 1. Take a Picture and make a "Journal Entry" on the Dispensary Daily Log; 2. Promptly notify the property manager, Merry Miplas, LLC. c/0 Steven Bernston at (805) 563-9400. He will advise of which action they will take to remove it. 3. Make another "Journal Entry" of who said what, on the Dispensary Daily Log.
In the event that the seventy-two (72) hour time allotment has expired, at the direction of the property manager, the Executive Director, will utilize the "World's Best Professional Graff-Attak-Pak" graffiti remover. Using the most appropriate application product and method for the grafitied surface (i.e., bare brick, stone and masonry) and use all necessary protective gear (Goggles, thick rubber gloves, rubber apron, and air respirator).
Response to SBMC 28.80.060. Sections E.1 – E.2:
Site & Floor Plan: The Site and Floor Plans indicate the security camera locations. The primary entrance is clearly visible from public streets, sidewalks and driveways. The floor plan shows a reception/lobby waiting area, at the entrance to the Storefront Collective Dispensary used to receive qualified patients or primary caregivers, and a separate and secure designated area for dispensing medical cannabis. There is a vault, identified in the floor plan for the after-hours storage of medical cannabis. All cannabis is to be stored in this location during non-business hours. The site plan and floor plan are attached as Exhibit A1.0.
Storage: The Vault Room is dedicated to the storage of cannabis. The walls have been constructed with Brick on two sides (representing the outer walls of the building), and on the interior; two walls will be reinforced by additional thickness containing cinder block and bullet proof casing between the dry wall. The door is a vault door (shown in the picture above) and has an entry code which only the managers will have access to. The doors to the vault are wide enough to handle the wheeling of cases containing cannabis into the vault each night before closing. Currency will be taken from the store and deposited twice a day in Wells Fargo Bank. All cannabis related products will be locked within the Vault room before closing of the dispensary each night. All Cannabis products will be secured in the vault overnight.
41 The Canopy Health and Wellness Center
Exhibits & Attachments “Exhibit A – Architect Construction Documents”
A0.0 Architects General Notes A0.1 Accessibility General Notes A0.2 Sanitary Key Notes A0.3 City Council Resolution A1.0 Site & Floor Plan A1.1 Security Plan A1.2 Exiting Code Plan A2.0 Reflected Ceiling Plan A3.0 Roof Plan A4.0 Exterior Elevations A5.0 Exterior Elevations A6.0 Large Scale Interior Elevations A7.0 Door Schedule A9.0 Door and Window Schedules D1.0 Architectural Details D2.0 Architectural Details D3.0 Architectural Details C1.0 Public Work Improvements E0.1 Fixture Schedule E0.2 Lighting Descriptions E1.0 Electrical Notes E2.0 Lighting Notes M1 Mechanical Specifications M2 Mechanical General Notes M3 Mechanical General Notes P1 Plumbing Specifications P2 Plumbing General Notes P3 Plumbing General Notes L1 Landscape Plan
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'll.~·\1{:.!U\R.. i-\ C5\ LANDSCAPE lMPROVEMENTS ;Su f. 12 §} ....,,,.--·-' ,,..,..,,,..,..,.-~_, .. ,· ,.,.__ ...... ,;, •• ,... r.---:- ---•...:. .• -...... -,- -,;-..:,::- .-~.-;:,:;:;..--;:---· .. ,..,.-: -·~··· ... _.. .. _._ ,~ ·:-:·· • ..,-0. ;.,...... -:::.· ... ~....- -~_,,.... ; .• :::,;;--.~.;~•~~:·.".~!;•:.::.::--.~ ..'%'! ·"t':··,:-..:,:,~;-.~•.-:;!,"::,:..·i:::::·,': ~=~.::~~!!;::.:.:.::•-·,.::.:;,:-:•.. -::•.::r.---· ... The ca//l,(Jpy Health and weLLness center "Exhibit B" Executed City ofSanta Barbara Master Application .c C . ,~" 01, 'i.1 C \; ~-. . :· ·J~. - ST_t\FF USF ONLY •:-• ....,~(,.✓-·. . ,,,~ MST20 ___ _ _ C -- 1 ', , I City of Santa Barbara 1 ~ I ';I! C I • • I- ' BLD 20_ ~--- -; \ ,';t _·· . 1'i M ASTER APPLICATlON PBW 20 ·"· . - C t , .· .... ,·~-· ... $GN 20 _____ ·,1,.nntt"''- C Other c· lDTFee ----'---- lniuals. ( Proj~d· ,<.\ddr ess _iii: M 1~.Pe.£ 5 r ( A.P.l-!.l:Stree1. 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It,. ...IJI• ·- A,IJll C e-mail '\ 1, thv un 1\( 4-..i, “Exhibit C” Proposed Plan for Security Fence 44 The Canopy Health and Wellness Center Security Fence: Canopy proposes to install a six-foot (6) sectional iron fence and gate doorway exit for purposes of added security (style pictured below). The gate doorway will be built to fire code and adhere to all city safety regulations. (See Exhibit A - Architectural Details D 3.0). The proposed fence faces Milpas Street along the south side of the building towards Mason and will be monitored 24/7 by video surveillance and by security guards during store hours. Access to the area behind the fence will be limited to members, employees, and management for the purposes of participating in wellness activities such as meditation, education, and health classes. The fence will be used for “exit only” and access to the garden/wellness area shall occur only through the dispensing area to prevent public access to the property so as to deter loitering, graffiti, and litter. The proposed fence will be built for the following safety reasons: Prevent public access to the exterior “Exit Doors” leading out of the building. A deterrent against loitering, graffiti, and litter. Serve as the “locked storage area” for the concealed trash receptacles (pictured below). Trash Receptacle Enclosure Six Foot Iron Security Fence Architectural details including measurements for the fence can be found in “Exhibit A - Architectural Details D 3.0”. 45 The Canopy Health and Wellness Center “Exhibit D “ Proposed Plan for Garden 46 i!J-'JI PLANTING PLAN TREES~ V!NES-GROUNDCOVERS LANDSCAPE IMPROVEMENTS i I:. l \ ~ j- f q I, f ,I.-!' If r in !f If fl Ii 11 ff r lilllll ' Irf!H• juI'.' r f I! ' r L f lfti}• J!; f [ H ,,,rr .I ' [ [ l11ruf '! f· Iii!r 11lt/H1! ,. r I • i fr l ! j I It ! I lf i t 1 ,i r· t il 1 J ,r H ' t 11 If l] i J ! f i' f It 1 l l!fl ; ' .. r If ~ ii rf ! f t l t l l 1 f ff ~ q,r ! ! f. ! l , 1 i if " I 1 tn ~ Fr ~ r11 I l · t i ll i H 11 r fr " !rll f ' ! / f ! ! f ! ' Jq I l ! r , 1 j ! i I ~ -p t • i l fi l ti ~ s: :. ~ ·- ;, ,·, ,:, Jf[ I ~ I tit ( I IRRIGATION PLAN WATER CONSERVATION & COMPLJANCE r :,, "' "0 0" C, ffi ~ "'0 ~ PLANTING & IRRIGATION DETAILS & SPECIFICATIONS The CANOPY Health and Wellness Center Exhibit E Canopy Delivery The CANOPY Health and Wellness Center Delivery Procedures CANOPY Delivery Service: Canopy’s delivery service will deliver only to customers within a municipality that does not prohibit the delivery of cannabis and, of course, inside of California. The Company will have managers and delivery driver personnel over the age of 21 dedicated to this aspect of the business. Canopy will also be registered with the DMV, carry a motor carrier permit, and issue ID badges to all employees and management. Operating Process: Delivery personnel and the appropriate manager will meet each morning before opening hours at 8:00 am to plan their routes for the day. Phone and internet orders which were placed the night before will be the basis for routing on that particular day. The Manager will be the dispatch coordinator and will remain on-site at the dispensary monitoring the inventory and dedicated trace and track module of the dispensaries track and trace system. Delivery drivers will be given inventory only for the scheduled deliveries they are making on that day and only up to a maximum retail dollar amount of $10,000. Each driver will make their scheduled deliveries to the physical addresses of each customer, from customer address to customer address, and then back to the store to check in and pick up additional product as needed. Drivers will have a copy of the Canopy’s cannabis business license, a copy of the company’s motor carrier permit, a copy of Canopy's State Cannabis License, a copy of the Company's proof of insurance card, the daily manifest, and their driver’s license at all times. In the case of a medicinal patient requesting a delivery, the process is: (1) Reception verifies that the Physician’s Recommendation on file is valid and current (2) Reception takes the order and transfers the order to Dispatch (3) Dispatch verifies the order and address, gives the ETA to the customer,, prepares the manifest, map and directions for the Driver. 4) Driver contacts the customer before traveling to the customers destination. The verification process for each driver upon reaching a customer’s address is: (1) Personal verification of the customer by checking their valid Government ID. (2) Deliver the product, accept payment, finish the transaction and confirm the order is correct. (3) Return the cash back (if necessary) and the signed receipt to the lock box in the trunk and update the manifest. Delivery orders will be taken by phone and internet, and then immediately entered into the dispensaries dedicated area of the trace and track POS system for deliveries. As orders come in throughout the day, the dispatch manager will coordinate each driver to a given location based on customer product needs and delivery drive time. Each driver will have a “company owned” and monitored dedicated GPS system so that the dispatch manager can track their vehicle always. The track and trace data base and the GPS system will ensure the following: (1) The time and route of a driver departing the dispensary, completing a customer transaction, and returning to the premises. (2) The CANOPY Health and Wellness Center Identity of each driver along with a driver’s license, vehicle used to conduct the sale, and identity of the qualified patient/customer. (3) Type and quantity of cannabis dispensed and received. (4) The gross receipts charged by the delivery service and invoice received by the driver. (5) The address where the transaction took place. Delivery Driver Security: • All deliveries will happen in an enclosed motorized vehicle with air conditioning and operated by an employee of CANOPY. • Vehicles will be equipped with a lock box located in the trunk of the car which shall carry cash and product. • All delivery vehicles will be insured above the legal requirement of California. • Vehicles will not display advertising or symbols visible from the exterior of the vehicle that suggest the vehicle is used for a cannabis business. POS System: Track & Trace System Account-Manger: The owner and a dedicated manager will be responsible for Canopy’s Track and Trace System. He and his authorized team of employees will ensure that each user of the system is properly trained and maintain a complete, accurate and up to date list of all track and trace system users and shall monitor all compliance notifications from the State. CANOPY shall record all commercial cannabis activity including, but not limited to: 1- Packaging of Cannabis Goods 2- Sale of Cannabis Goods 3- Transportation of Cannabis Goods to a licensee 4- Receipt of Cannabis Goods 5- Returns of Cannabis Goods 6- Destruction and Disposal of cannabis Goods 7- Laboratory Testing Results The company has decided to use a product called “Weave” for its track and trace system. Weave has been working and integrated with METRC for over 2 years and is an all- inclusive inventory tracking, patient tracking system that utilizes an internal Product coding system to batch track packages to METRC. Weave encodes a 10-digit SKU to every cannabis and non-cannabis item in the system. All Cannabis product have the last 4 digits of the RFID tag on the barcode placed on the item. Weave is a scan based only system ensuring accurate traceability and inventory auditing. Every Incoming package in the store is input in Weave, immediately creating the barcode that gets on the product packaging. On every transaction each item is scanned into the checkout screen, The CANOPY Health and Wellness Center Weave is a certified and integrated partner of METRC, their experience in states like Oregon and Colorado prove their ability to track tens of thousands of packages with trace and track requirements. Weave keeps record of all sales transactions, taxes collected, costs of goods, and patient records. There are built in compliance tools to help with keeping limits for customers during transactions. For example, Weave will prevent any edible over 100mg to be sold to a recreational customer, as well as stop an employee from over selling past the state THC limits set by the state. Prior to each sale Employees have to input a pin code to register an action, limited employees have access to inventory. CANOPY Tack and Trace Preventing Diversion Weave is a scan based only system that uniquely identifies each batch or package of cannabis and non-cannabis product that enters the store. The system constructs a 10 digit ID for every product, where the first 6 digits are a UPC code detailing out specific product information (category, subcategory, cannabis weight, Vendor, etc); the last 4 digits of the Unique ID references the RFID tag that comes from METRC. The system scans ID's to record medical information in a HIPPA compliant manner including: First Name, Last Name, Address, DOB, Medical Recommendation ID, Expiration Date, Issued Date, Time of Joining. Each Medical transaction is logged and accessible any time to view the purchase history of a medical patient. The system automatically pulls the cannabis product out of inventory and updates the record to have real-time inventory tracking in the store. Each customer is identified and saved in the system as either Medical, Medical with a State Card, or Recreational. The system will automatically apply the customer specific taxes based off state, county and city tax regulations during the time of sale. Any persons of age under 21 will be flagged in the system under the recreational customer sign up process, likewise a customer can only by up to the limit set by the state rules. The system will prevent any product over 100mg for edibles to be purchased by a recreational customer as well as purchase above 28.5g of cannabis. Every major action including adding inventory, reconciling inventory, finalizing a sale require a pin code from every employee. Weave will keep a detailed history from every employee that performs an action to ensure accountability in the store. State Compliance & Integration Weave is originally a Colorado based company, who has been working with METRC for the past 3 years. Weave was one of the first certified companies to integrate with METRC in the country and has been working with the executive team to implement and add API functionality with several state government working groups. The company has already completed their API certification requirements for California and has implemented all state rules in the software today. Weave has API functionality to transmit all sales records to METRC, update and reconcile any inventory package directly in METRC, receive all information from transportation Manifests from METRC, update Patient Records via METRC, and display real-time METRC inventory data. The CANOPY Health and Wellness Center Record Management Compliance Weave is a web based system, accessible on any device with a connection to the internet at any time. Customer records are kept in a secure database housing a unique customer ID, customer type (medical/Recreational/Medical card holder), Customer first Name, an employee number, name of the employee who conducted the sale, date/time of sale, a list of all cannabis goods purchased including quantity and total taxable sales. Every receipt details out by line item every tax the customer or patient pays for during the time of sale. As stated earlier, every employee is assigned an employee number in the database and has a unique pin code so Weave can track every action performed by a user in case of discrepancies or issues. Weave also has direct exports available for all tax reports, sales reports, employee list, patient and customer list in case their is a need during an audit or issue. 3 Legal Process for all Employees and Sub-Contractors Background and Reference Checks To ensure that individuals who join Canopy Club, Inc. are well qualified and to ensure that Canopy Club, Inc. maintains a safe and productive work environment, it is our policy to conduct pre - employment background checks on all applicants who accept an offer of employment. Background checks may include verification of any information on the applicant’s resume or application form. All offers of employment are conditioned on receipt of a background check report that is acceptable to Canopy Club, Inc.. All background checks are conducted in conformity with the Federal Fair Credit Reporting Act, the Americans with Disabilities Act, and state and federal privacy and anti- discrimination laws. Reports are kept confidential and are only viewed by individuals involved in the hiring process. If information obtained in a background check would lead Canopy Club, INCto deny employment, a copy of the report will be provided to the applicant, and the applicant will have the opportunity to dispute the report’s accuracy. Background checks may include a criminal record check, although a criminal conviction does not automatically bar an applicant from employment. Additional checks such as a driving record or credit report may be made on applicants for particular job categories if appropriate and job related. Canopy Club, Inc. also reserves the right to conduct a background check for current employees to determine eligibility for promotion or reassignment in the same manner as described above. Additional checks such as a driving record or credit report may be made on applicants for particular job categories if appropriate and job related. Employment screening assessments to determine an applicant's job fit may also required of all applicants for employment. Skills tests related to the demands of the job may also be required. This firm relies upon the accuracy of information contained in the employment application, as well as the accuracy of other data presented throughout the hiring process and employment, including any oral interviews. Any misrepresentations, falsifications, or material omissions in any of the information or data may result in the firm's exclusion of the individual from further consideration for employment or, if the person has been hired, termination of employment. In addition, in order to ensure a safe and profitable workplace, all employees are required to report to their supervisor if they are arrested and or charged for any criminal offense, with the exception of minor traffic offenses unless the employee is in driving position. driving position is any position where the employee drives on company time or for the benefit of the company. If an employee is arrested or charged for any offense, the employee must report the arrest or charge to their direct supervisor and submit a police report or other documentation concerning the arrest and /or charges. The report must occur within two business days of the arrest. Employer will not take any adverse action based only upon the fact of an arrest. Any action will be based upon the underlying facts of the arrest. Noncompliance with the above stated requirement constitutes ground for termination. Furthermore, misrepresentation of the circumstances of the events can serve as ground for termination. Employees that are unavailable for work due to incarceration are subject to suspension or termination. 4 DRIVER AND VEHICLE INFORMATION DeliveryDriver and Vehicle Information Name DOB StateAnd TagNumber Vehicle Year/Make /Model/ color VehicleIdentification Insurace carrier and SANTABARBARA /GOLETA PATEL, AAAAutomob ileC lub 11/16/1959D9436786 06678A2 Alarmed 2016/ Toyota/ Truck/ Silver 3TMAZ5CN7GM015116 MUKESH CAA079830 746 FAULK, 2016 AAAAut omobileClub - 9/26/88D9437296 7UIU806 y JfDKBRFU5G3020724 SHANE TOYOTA/PRIUS/BLACK CAA114949851 BRANDON 11/2/95 F28241265GBU756 y 2000HONDA/ PRELUDE/ JHMB86144VCOO5301 FARMERS· 200097943 BAMBINO MATTHEW STATEFARM-450 7/9/85 G41489116MBT835 y 2010jTOYOTA/ PRIUS JTOKN3OUSA0133735 BROMMETT 7619•E18•5586577416 MICHAEL 2015/NISSAN/ ALTIMA/ 7/24/77 B35393963D26856 y 1N4A]IAPIFNIN406 ALLSTATE·93459594 7 VARGAS BLACK JEFFREY THEGENERAL - 8/7/88 D71710126WYY742 N 2013/MAZDA/3/GREENJM1BL1UP0D1782202 LEVY 2006564532 2000/ LIAM STATEFARM-208 8409- 6/3/96 F35707084MBM333 N VOLKSWAGON/PASSAT/REWVWUH23B2 YE389032 PLUNKET Ao2-05B D JESUS 2016 8/8/89 E2235531SBHIPPY y JTDNJKHU9G4345659FARMERS -20124561 VILLARRUEi TOYOTA/PRIUS/BLACK Victoria'sAutomobile ANGELICA 1995/TOYOTA/ 11/1/94 F53072133BUJ128 N JT2MA67L4F0166234Insurance Agency - OCHOA CELICA/BLACK 1056084384 SHAQUILLE 1997/HONDA/ ACCORD/ ALLSTATE·454189- 4/26/94 F14982103XCU840 N MA67LJT24Fo665841. MOORE GREY 6569-R6-5678 5 INTRODUCTION TO EMPLOYMENT Every employee will go through a training process. This is the time probationary 2 week period that we will be monitoring and grading each and every action very closely to insure a proper education of our processes and protocols . All new hires will work closely with trainers and once the trainer deems the new hire prepared then they can begin the final upper management interviews and the decision will be made by 5 critical points Work Ethic Attitude Performance Appearance Customer interaction Employee Classification Categories All employees are designated as either nonexempt or exempt under state and federal wage and hour laws. The following is intended to help employees understand employment classifications and employees’ employment status and benefit eligibility. These classifications do not guarantee employment for any specified period of time. The right to terminate the employment “at will”relationship at any time is retained by both the employee and Canopy Club Nonexempt employees are employees whose work is covered by the Fair Labor Standards Act (FLSA). They are NOT exempt from the law’s requirements concerning minimum wage and overtime. Exempt employees are generally managers or professional, administrative or technical staff who ARE exempt from the minimum wage and overtime provisions of the FLSA. Exempt employees hold jobs that meet the standards and criteria established under the FLSA by the U.S. Department of Labor Canopy Club has established the following categories for both non-exempt and exempt employees: 6 Call Center : Training & Standard Procedures Call Center Training Every potential hire being trained will follow above mentioned methods of being graded for final determination. Potential employee will listen and be listened to by a lead in the call center. Every new potential hire must demonstrate Phone script/process Product knowledge Phone Script and Call Process Following our phone script and making it your ownstyle is a fine line. We expect our phone operators to follow a few guidelines. We utilize a Track and trace POS system and each phone bud tender will be trained extensively. Answer the phone in a polite and professional manner. When swapping calls ask “may i put you on a brief hold” then wait for a response then transfer be sure to do this on both calls." Always be certain you are speaking to a verified member. In the case of a new member, make sure they understand there is a 24 hour waiting period before a delivery can take place. This is one of the most important things we can do. If you cannot find them in the system then they must be treated as a new member and must be verified." Always verify the address to be delivered to and the best contact number." Ask if there is any sort of special notes or delivery instructions." Always learn and have a decent knowledge of the products we offer. We have an extensive menu and the descriptions are clear in most cases. Use them when questions arise. If not recommend to the member a product and menu item(s) that you believe may better suit their needs. If you ever need help ask the manager on duty." Always repeat the order to the member and give them a total. Be sure to end the call with “Thank you for choosing Canopy Club and have a great day/night." Product Knowledge Having a decent understanding of what we offer is very important for our call center staff. Members will often times look to you recommendation. In all practical purposes you will be our bud-tenders. This means even the most seasoned user will look to you for guidance. If you are new to the industry this may be quite difficult for you in the beginning. We don’t expect everyone to know everything but this is a huge portion of your job, so please take it seriously. 7 Order Fulfillment & Dispatching Orders Order Printing and Processing Overview Every order coming into the fulfillment department is to be printed two (2) times and processed immediately. Every order is to be made precisely, so take your time and double check yourself. Keep in mind prompt doesn't mean rushed. There is never a rushed order, so take your time . Every order is to be completed and a receipt placed in the bag, the bag is folded and the second receipt is to be stapled to the outside of the bag. Dispatch Process Dispatching orders to the drivers has multiple tasks leading up to this. Each step is detailed below and any steps should never be skipped to remain compliant and liability of losses. Receiving Order From Fulfillment Department The receiving of the orders are a simple bar code scan for transfer. Only after the contents have been verified, bag sealed and receipt stapled to outside of the bag. Planning Driver Route Each set of orders are to be organized by geographic regions,Goleta/IV, SB, and Carp. Starting with the group with the oldest time start entering the address in our route planning program. Then in an extreme time difference or "hot rush" then edit according to time without disregard to other member's time. Balance is always best. Handing Off to Driver When a driver returns he will be placed in a Que as ready and waiting. Choose the oldest set of orders and begin transferring to driver. The transfer again is a simple double check of all the orders being on the manifest and route being transferred. For no reason does a driver ever open the bag. That process is only between the order fulfillment department and the dispatcher. Stay in touch with Member and Driver The dispatcher is the central point of contact after the order is placed. Some will leave messages for dispatch through the call center still, however the driver will contact the member once dispatch has approved the order. In the event of an issue or ETA request or cancellation, Dispatch will remain the central point of contact to coordinate all issues. The dispatcher shall always get management approval for refunds, gifts or freebies as compensation for the issue. 8 Driver : Training & Standard Procedures Order Fulfillment & Dispatch Training Every person being trained will follow above mentioned methods of following a lead in the dispatch department. They will display excellent skills in the below or will not be brought on for employment as these positions relate to physical handling of product. Order Printing and Processing Every order is to be printed in the dispatch office two (2) times and processed immediately. Every order is to be made precisely, so take your time and double check yourself. There is never a rushed order so that a mistake cannot be validated. Lay out the order and place in bag double checking yourself. Every order is to be completed and a receipt placed in the bag, the bag is folded and the second receipt is to be stapled to the outside of the bag. Dispatching Orders to Drivers Dispatching orders is split into areas of certain regions and held for a certain amount of time based on each locations lead time. The lead time is the amount of time an order is allowed to sit in dispatch before it is to be given to the driver for delivery. The lead time is a necessary process to allow orders to build up so that the driver can take the most orders. This is to be balanced with keeping the members waiting the least amount of time. Driver Training Driver's are trained different than you would a typical employee due to their independent nature of the job. The first 2 weeks is a probationary period we call "an audition". As any other contractors they are selling the company a service.' Driver's are trained first for 1-5 days, depending on capabilities, riding along with one of our driver supervisors and a senior driver to get a more diverse training giving variances in techniques and ways to approach a home. Then the driver will act as the lead in their vehicle while different supervisors ride along with them for a 1-2 day period grading them on performance, time management, payment handling, and customer interactions. Finally our upper management will review the findings and conduct a final decision of permanently hiring the trainee or not. 9 Driver Training & Standard Procedures Delivery Protocol All drivers must follow a simple procedure to allow a uniform experience for our members. Upon arrival to the dispatch office, drivers will check in with the dispatcher and confirm they are aware they are ready and waiting to be deployed. Drivers will calculate totals of cash and turn in receipts and signature pages from the previous set of deliveries, unless it is the first of the day. During any downtime drivers are encouraged to utilize their time cleaning or preparing for the next set of deliveries or "run". Cleaning their vehicle they deliver in of all debris, replacing ice packs for boxes, and any other preparations to insure a pleasant experience for customers. The receipt of orders are done in a manner where both driver and dispatcher check off on a sign out sheet. Any missing orders at this point are between the dispatcher and order fulfillment department and the driver should immediately bring to dispatchers attention and wait prior to departure for a new route to be created or the order given and signed out. *** NOTE ONCE A DRIVER SIGNS OUT THE ORDER HE IS RESPONSIBLE FOR THE RETAIL COSTS OF THE ORDER AND APLICABLE COSTS TO REMEDY THE ISSUE. INCLUDING BUT NOT LIMITED TO DELIVERY FEE, When orders are given to the driver, it will be in sealed exit bags with order inside and a receipt for the driver attached . The receipt attached to bag is for the drivers use and should be removed and kept in a safe place. It contains delivery details and this is protected and confidential information such as customers name, address, phone number or other contact information, and contents of bag with a total due. Each Driver will have a GPS( Global Positioning System) device installed and turned, active, and able to be tracked at all times while cannabis is being transported. This way when calls are made to dispatch inquiring of how far the driver is they will have a real time estimate for them. 10 Driver : Standard Procedures The driver is to the put items in a lock box installed in trunk. The boxes are thermal cooled and act much like a cooler. Ice packs are replaced multiple times in extreme heat and should always remain below 65℉ for the safety of products contained within. A second compartment or box will installed or utilized for edibles and will need to maintain a temperature of 40℉ or cooler. Be sure the locks are secure and all products are sitting upright and secure from overturning in transit. The maximum dollar amount allowed per driver per run at any given time is the limit of $10,000 retail value. ALL Communications with the dispatch will be done through cell phones and the use of hands free devices while driving. Text or calls are acceptable. NO PERSONAL CALLS ARE TO BE MADE EXCEPT DURING SCHEDULEED BREAK TIMES. Follow the route given to you by the dispatcher for your set of deliveries. These are coordinated first by time ordered and if needed by geographical location. The orders are in the order best to get you back quickest and the customer their order quickest. Communicate with dispatch and the customer/member if you are late and give the dispatcher your new time-frame. This allows dispatch the time to correct each order updating the system and posting a new ETA (estimated time of arrival). This is an estimate and should be a realistic time-frame When approaching any member any time, first ask to see their Government Issued ID. If the member is new ask to get a copy of their current medical cannabis recommendation, and present the new member a member agreement to fill & sign. Typically it is better to fill in the date and print their name for them so it is legible. Take a picture of the rec and ID as instructed by your trainer (ID in bottom right corner) and email to the email address [email protected]. Always put the member's name as the subject of the email. Present the order to the member ONLY after you have confirmed the member is who Canopy was deemed a legal cannabis medical patient, and who is on the receipt attached to the order. Have the member open and inspect the order for accuracy. If there is an issue call the dispatcher and have them handle the issue and excuse yourself after resolution is made. Once the order is confirmed accept payment cash or credit and have the member sign your receipt EVERY order credit card or cash. Then you politely excuse yourself and go about your business. 11 Driver : Standard Procedures Going about your business is return to your run, back to the office or a scheduled break time. • Returning to your run is self explanatory. Time is of the essence and u must remain on schedule. • Go back to the office promptly do Not make any detour unless stopping for gas • Break-times are every 2 hours. 15 mins after 2 hours work ; a 30 min lunch and a 2nd 15 min break at 6hours of work. You must let dispatch know and we will be monitoring via GPS.NO BREAKS ARE TAKEN WITH ANY CANNABIS PRODCUTS IN THE VEHICLE- NO EXCEPTIONS Canceling an Order When a member doesn’t answer the phone or door AND When you have given adequate time to respond approximately 10 mins after arrival to delivery destination AND When you have checked with office/dispatch to be sure the member has not called in with any changes. AND Call/or text the member and leave a final message stating you have waited 10mins and you must move on to other deliveries and to call the office to reschedule your delivery. If the order is canceled it is at the discretion of the driver to return if the member calls back after you have left the premises. Typically it is a must to return if you are still close but each issue is to be determined as a case by case. If the driver is at fault the delivery will not be paid so be certain you do everything possible to complete the delivery **If the order is canceled it is at the discretion of the driver to return if the member calls back after you have left the premises. Typically it is a must to return if you are still close but each issue is to be determined as a case by case. If the driver is at fault the delivery will not be paid so be certain you do everything possible to complete the delivery Reconciling the Previous Run Reconciling the run is another name for counting out or balancing the books. Drivers are required to immediately turn in ALL receipts for orders given. Two (2) envelopes are to be filled and signed, one with and cash and all cash receipts the other with credit card payment signature pages and those receipts. These are returned separate drop box locations. The money and credit cards will be reconciled again by the manager on duty typically the next morning first thing . All Shortages will come out of the drivers pay. All drivers have signed an affidavit accepting responsibility for the orders when they take them out. 12 Driver : Standard Procedures Contact With Dispatch While out on deliveries you will encounter issues that do not work out as planned. Sometimes it is a clerical error or sometimes it’s the member is just not where they are supposed to be. This is when you call dispatch to determine if a note was missed or if the member is just MIA. Often times the member doesn’t recognize the number or there is something we can do to fix the problems that arise in the field. Just call in, working together will give our members the best customer service possible. Constant communication with dispatch is a necessity. Insurance Requirements Corporate Protection General liability insurance Canopy Club will maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. Automobile liability insurance Canopy Club of California will also maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the vendor arising out of or in connection with Cannabis Delivery Services to be performed in …, including coverage for any owned, hired, non-owned, or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. Safety Protocol While traveling with orders it is a must to have a nice clean backpack. The orders should be neatly organized inside and in an order where you aren’t fumbling around with the member. The backpack should not be opened until you are in a safe and comfortable spot for both you and the member. Discussing a member’s order with anyone other than the member is strictly prohibited. Payment can ONLY be received from the member and this definitely includes credit and debit cards. Rare exceptions are allowed and this is when the 3rd party is a member and this is verified by our office. This includes married couples. Payment must be from a verified member of our collective. You must call the office to verify because you cannot know if we have a copy of their current recommendation or if their recommendation is valid. While in transit the lock box installed in delivery vehicle. stored in the trunk or the absolute farthest point from the driver and/or accessibility must be as difficult as possible such as a hatchback or a truck. No exceptions The Canopy Health and Wellness Center “Exhibit F “ Revised Canopy Patient Agreement Form & Map 48 r (' r • fest S 1• • >.it 11h1Y., fr,m/,n f ' Ir Parli .. r I I A ~-' '51Ts " r,. 0 / -~ / ; \ ,.. y "1nl I, / A \ I I 0 \ I ,, ' /'--200 FOOT R A DIUS tll ------✓ o;,h()ppinq 0 Cente•.. u (J u Map data ©2013 Go NTS The Canopy Health and Wellness Center The information on this form will NOT be provided to any other persons, agencies, organizations, or other third parties. There may be a need for the City of Santa Barbara to verify a patient’s validity if such a case arises. ______Patient ______Caregiver ______Renewal Name: (First) ______(Last)______ California Driver’s License: _____California ID: _____ ID Number: ______ Address: ______ City: ______State: ______Zip: ______ Phone Number: ______Email Address: ______ Physician’s Name: ______ Physician’s Address: ______ City: ______State: ______Zip: ______ Physician’s Phone: ______Last Visit Date: ______ Recommendation Expires: ______Please send me updates via: email text I understand and agree that I am a qualified patient protected by California Health and Safety Codes 11362.5 and 11362.7. et. seq., and California Senate Bill 420. My physician has recommended the use of medical marijuana and provided written documentation of such recommendation. My physician will review my case on a yearly basis. Per the relevant sections of California law, I am able to legally possess, use, and cultivate cannabis collectively for medical purposes. I designate The Canopy as my care providers. I agree to follow all of the rules and guidelines of the collective and pay reasonable compensation and/or volunteer for other services and activities provided by the collective. Signed: ______Date: ______!!STOP!! FOR CANOPY USE ONLY: Date Verified: ______Verified by: ______Not Verified Date: ______By: ______Canopy Manager Initials: ______Specific Health Notes: ______ 49 The Canopy Health and Wellness Center As a qualified patient protected by California Health and Safety Codes 11362.5 and 11362.7. et. seq., and California Senate Bill 420, you are required to read, agree, and initial before each of the following statements to become a member of The Canopy: ______1. I hereby affirm that I am Santa Barbara County resident and have a California driver’s license or identification card to prove such. ______2. I hereby declare that I am a qualified patient under CA H&S Code 11362.5, 11362.7, et seq., and my physician has recommended and approved my use of medical cannabis. As per CA H&S Safety Code 11362.51, I am legally able to use, possess, and cultivate cannabis for medical purposes. I understand that I am allowed to do so through safe and affordable access such as the kind provided by The Canopy. I therefore, designate The Canopy, as my care provider for this purpose. In doing so, I agree to sign and follow all of the rules and regulations regarding the services provided by The Canopy. ______3. I agree to possess my original copy of my physicians’ recommendation when registering with The Canopy. I understand that my failure to do so may result in refusal of collective member services. ______4. I hereby confirm and agree that my medicinal cannabis shall not be sold, bartered, traded, and/or exchanged in any other means to any other persons. ______5. I agree to be courteous to all Canopy employees, volunteers, and other collective members, etc. I also understand that my collective membership is a privilege, which can be revoked at ANY TIME for ANY REASON. ______6. I agree to be respectful to businesses and residents neighboring The Canopy. I agree not to play loud music in or around The Canopy premises; and further agree not to DISTURB any businesses neighboring The Canopy. ______7. I understand that Canopy has a “zero tolerance policy” and agree not to medicate (via smoking, eating, vaporizing or otherwise) in or around within 200 feet of The Canopy property, including zero tolerance of use during any onsite class or lecture (educational, yoga and meditation). I have been given a copy of the “Canopy 200 Foot Radius Map” and also agree that I will not loiter, litter or solicit within 200 feet as the map illustrates. In the event of a loitering, alcohol or cannabis use infraction, membership in the Collective will be terminated immediately. ______8. I hereby agree, appoint, and designate The Canopy and their representatives, as my true and lawful collective agents for the limited purpose of assisting me in obtaining my legally recommended medicinal cannabis; and as my duly authorized caregiver, to assist me with obtaining my medication. I understand that this means The Canopy will be required to purchase, possess, transport and distribute my medication to me as recommended by my physician and I grant them the limited authority to do so. I further authorize The Canopy to enter whatever agreements are necessary with propagators or other medicinal providers to cultivate and prepare medication, edibles, and other medicinal cannabis products. ______9. I understand that The Canopy has entered into similar agreements with others. I authorize The Canopy to possess the medicinal cannabis and other medicinal cannabis products as described in this agreement jointly with the others who have entered into similar membership agreements with The Canopy. ______10. I hereby declare and understand that my donation covering expenses to The Canopy for prescribed medicinal cannabis products are used to ensure the continued operation of The Canopy and that any said donation or transaction in no way constitutes a commercial promotion or sale of any item. ______11. I acknowledge and agree that my membership is limited to only one store front collective dispensary within the City of Santa Barbara per section 28.80.080.G5. of the Santa Barbara Medical Marijuana Dispensary Ordinance. ______12. I agree to immediately provide The Canopy with all changes in my contact information, diagnoses, or primary physician. I hereby acknowledge and affirm that I have read, understand, and agree to all the terms set forth in this membership agreement and declare The Canopy as my primary caregiver. I understand The Canopy and/or its assignee will grow medical cannabis for me in accordance with State, County, and City guidelines. I further understand that there expenses associated with propagating medicinal cannabis, and I will help cover those expenses. If, for any reason, I change my physician or address, I will notify The Canopy and/or assignee as soon as possible with the new documentation. Name (please print): ______ Name (please sign): ______Date: ______ 50 The Canopy Health and Wellness Center “Exhibit G “ Interior Signage 51 1/8" THICK PVC INFORMATIONAL PLAQUES 12" X 18" EACH RULES Ofr CONDUCT, THANK YOU Pers@ns under the age oJ eighteen are prohibited from entering the premises. Service provided only to qualified members and/ or qualified caregivers. Prior to admittance, patient must provide a valid California ID/Drivers License and a medical cannabis physician's recommendation. No Same Day Membership Service Allowed, a 24 Hour Waiting Period is required prior to admittance. 1 1/2" = 1'-0" RESPECT OUR NEIGHBORS, PLEASE STATE LAW COMPLIANCE WARNINGS. 24 Hour Video Surveillance, a. The diversion of marijuana for non You Are Being Recorded medical purposes is a criminal violation Open 8,00 am to 6:00 pm of state law. Monday through Saturday. b. The use of marijuana may impair a Please do not litter or loiter around the area. person's ability to drive a motor vehicle or Alcoholic beverages are not to be consumed operate heavy machinery. or allowed on the premises. Smoking, ingesting or consuming cannabis on c. The sale of marijuana and the diversion the premises and/or within 200 feet of the of marijuana for non-medical purposes are dispensary is strictly prohibited. violations of state law. The Canopy Health and Wellness Center “Exhibit H“ Canopy Parking Permit 52 The Canopy Health and Wellness Center All management members, staff, and volunteers must visibly display the sticker below on each automobile driven to work at the Storefront Collective Dispensary so that ongoing operations may be monitored for accordance with Criterion 9 in 28.80.070.B. 53 The Canopy Health and Wellness Center “Attachment 1” CA Drivers’ License 54 r 121&1£16i WI M .+Gt .. tr 00 11n1,._,,..,.;;cn,,.. 111 ,,. ''-4 ..... ,. le,. • ti" I • ..-..- ._, ..... &~ • •t i"-" • t I ....,,.,. I •I• ·• ill -- .. (J "· ,.. C L The Canopy Health and Wellness Center “Attachment 2” Directors Signed Confirmations 55 The Canopy Health and Wellness Center Confirmation: Ryan Steven Howe Written confirmation as to whether the Collective or a Canopy Member of the Collective previously operated in this or any other county, city or state under a similar licenser permit, and whether the Collective or Canopy Member Applicant ever had such a license or permit revoked or suspended by and the reason(s) therefore. I, Ryan Steven Howe, hereby declare as follows: I am the Founder of the Canopy Club Inc.; My function is: Provide leadership to position the organization at the forefront of the industry, to develop the strategic plan to advance its mission, create and manage brand, marketing, and community PR strategy, and to promote overall organizational growth. My address is: 2542 Crescent Avenue, Santa Barbara, CA 93105; My phone number is: (805) 895-2578 I have not previously operated a Medical Marijuana Collective Storefront Dispensary under a similar license or permit, in Santa Barbara City or County, or any other city, county or state. Accordingly, I have not had any such license or permit revoked. I have not engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices with respect to the operation of another business within the City. I have not been convicted of a felony; on probation or parole for the sale or distribution of a controlled substance. I understand the requirement that I must not be convicted of a felony, be on probation or parole for a felony, and continue acting as a Director of the Storefront Collective Dispensary. I have not made a false statement of material fact or omitted to state a material fact in the application. I declare under the penalty of perjury under the Laws of the State of California that the foregoing is true and correct. ______11-16-2017 Ryan S. Howe Founder, The Canopy Dated 56 Confirmation: Wendy Hewett Written confirmation as to whether the Canopy Member has previously operated in this or any other county, city or state under a similar licenser permit, and whether the Canopy Member ever had such a license or permit revoked or suspended by and the reason(s) therefore. I, Wendy J Hewett, hereby declare as follows: I am the Manager and Director, of the Canopy Club Inc.; My function is:To insure compliant operations within The Administrative portion of the business and to manage the day to day operations of the retail business. My address is: 4827 Ogram Rd; Santa Barbara CA 93104 My phone number is: 805-729-3868 I have not previously operated a Medical Marijuana Collective Storefront Dispensary under a similar license or permit, in Santa Barbara City or County, or any other city, county or state. Accordingly, I have not had any such license or permit revoked. I have not engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices with respect to the operation of another business within the City. I have not been convicted of a felony; on probation or parole for the sale or distribution of a controlled substance. Or if I have, my record has been expunged of all felonies. I understand this is a requirement to be an acting Manger of the Storefront Collective Dispensary. I have not made a false statement of material fact or omitted to state a material fact in the application. I declare under the penalty of perjury under the Laws of the State of California that the foregoing is true and correct. Dated:2/20/19 Confirmation: Mukesh Patel Written confirmation as to whether the Canopy Member has previously operated in this or any other county, city or state under a similar licenser permit, and whether the Canopy Member ever had such a license or permit revoked or suspended by and the reason(s) therefore. I, Mukesh Patel, hereby declare as follows: I am the manager of the Canoy Club Inc.; My function is: Day to day management of the retail operations of the business My address is: 409 Old COast Highway, Santa Barbara CA 93103 My phone number: 805-680-6257 I have not previously operated a medical marijuana collective storefront dispensary under a similar license or permit, in Santa Barbara City or County, or any other city, county or state. Accordingly, I have not had any such license or permit revoked. I have not engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices with respect to the operation of another business within the city. I have not been convicted of a felony; on probation or parole for the sale or distribution of a controlled substance. Or if I have, my record has been expunged of all felonies. I understand this a requirement to be an acting Manager of the storefront collective dispensary. I have not made a false statement of material fact or omitted to state a material fact in the application. I declare under the penalty of perjury under the laws of the State of California that the foregoing is true and correct. Al. Signed:__ ___,�,.,'-\ .."".�-·-··· ______Dated:2/20/19 Confirmation: Adam Hewett Written confirmation as to whether the Canopy Member has previously operated in this or any other county, city or state under a similar licenser permit, and whether the Canopy Member ever had such a license or permit revoked or suspended by and the reason(s) therefore. I, Adam J Hewett, hereby declare as follows: I am the Manger and Director of the Canopy Club Inc.; My function is: To insure compliant operations and manage the retail business My address is: 4827 Ogram Rd; Santa Barbara CA 93104 My phone number is:805-729-3868 I have not previously operated a Medical Marijuana Collective Storefront Dispensary under a similar license or permit, in Santa Barbara City or County, or any other city, county or state. Accordingly, I have not had any such license or permit revoked. I have not engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices with respect to the operation of another business within the City. I have not been convicted of a felony; on probation or parole for the sale or distribution of a controlled substance. Or if I have, my record has been expunged of all felonies. I understand this is a requirement to be an acting Manager of the Storefront Collective Dispensary. I have not made a false statement of material fact or omitted to state a material fact in the application. I declare under the penalty of perjury under the Laws of the State of California that the foregoing is true and correct. Dated :2/20/19 The Canopy Health and Wellness Center “Attachment 3” Articles of Incorporation Company By -Laws Board Resolutions Canopy Club, Inc. 57 ACTION OF BOARD OF DIRECTORS OF CANOPY CLUB, INC. TAKEN BY UNANIMOUS CONSENT WITHOUT A MEETING The undersigned, being the sole director of Canopy Club, Inc., a California nonprofit mutual benefit corporation, acting by unanimous written consent without a meeting pursuant to Section 7211(b) of the California Corporations Code, takes the following actions, transacts the following business and adopts the following resolutions on behalf of the Corporation. Election of Mangers. RESOLVED, that the following five (5) persons are hereby elected as Mangers and Management Members of this Corporation for the ensuing year and until their successors have been elected and qualified and, as Managers and Management Members and subject to approval by the City of Santa Barbara, shall have authority to manage and operate the Corporation’s medical cannabis dispensary storefront: Ryan Howe Byron Engleking Faith Strader Clay Becker Steven Ruggieri Election of Officers. Ryan Howe has resigned from his positions as Secretary and Chief Financial Officer of this Corporation. Accordingly, the following persons are elected to the offices set forth opposite their names: Office Name President Ryan Howe Secretary Faith Strader Chief Financial Officer Faith Strader RESOLVED, that for purposes of giving any reports or executing any documents requiring the signature of the "Treasurer," the Chief Financial Officer is deemed to be also the Treasurer of this corporation. A俄殺めn qfAα砺0塙切倒gmiひ亮esめ砺e `bpom切Bank Acco〃庇 The Corporation has est{皿shed a corporate ba血accouut with Wells Fango & Company Presently Ryan Howe is the o血y au瓜orized signatory on this account. The Board has detem血ed that it would be in the Coxporation’s interest to add its consultant, A血Kakotsyan, aS an authorized s畦的tory to the Wens Fango & Company account. Accord血gly血e fo皿owing resolution is adopted: RESOLVED, that the O鮪ieers, enPIoyees or any other agents ofthe Co申oration are bereby飢ithorized and directed to execute and deliver such applicatious, COntraCtS, instruments, agreementS, authorizatious, Signature cards, SuPPOrt血g materials and other documeuts in the name of and on behalfofthe Corporation, and to talse sueh other steps as deemed necessary, reaSOnわle or appropriate dy the O鉦cers, emPloyees or agents of the Corporation, tO a(ぬAman Karkotsyan as a¥ithorized signatory on the Wells Fargo & Company ba血【 aCCOunt in addition to Ryan Howe, Who sha虹emain as an authorized Signatory on such account. Cbn(勤めnalノ4重りm●初〆‘ C脇I Gわ堪りLLC七Cbn鋤肋略amd Mun低r肋伽t giv肋en4 The Board has detem血ed that it may be血the Corporation’s best interest to enter into a COnditiona叫y approved Ma皿gement and Consult血g Agreenent with Citral Group, LLC. The Directors have been presented with a fom ofthe Management and Consulting Agreenent, a COPy Ofwhich is attached hereto as Ex血ibit A. Accordingly, the following resohtion is adopted: RESOLVED, that the Coxporation may at its discretion, after a period of 6 months, and xpop approva腫om the City of Santa Ba血ara, enter into a Consulting and Management Agreement with Citral Group, LLC, and the O鯖cers, emPbyeeS Or any Other agents ofthe CoIPOration are hereby authorized and directed to execute such Cousulting and Management Agreement in the fom presented to the Directors on behalf Of the Corporation. Dated: Mav l l. 2018 -2- EXHIBIT A Form of Management and Consulting Agreement -3- ACTION OF BOARD OF DIRECTORS OF CANOPY CLUB, INC. TAKEN BY UNANIMOUS CONSENT WITHOUT A MEETING The undersigned, being the sole director of Canopy Club, Inc., a California nonprofit mutual benefit corporation, acting by unanimous written consent without a meeting pursuant to Section 7211(b) of the California Corporations Code, takes the following actions, transacts the following business and adopts the following resolutions on behalf of the Corporation. Approval of Amended and Restated Corporate Bylaws. The Corporation's Bylaws were adopted by the incorporators on May 13, 2015, and by the Board of Directors, on June 5, 2015. The Board has determined that a form of amended and restated Bylaws, a copy of which is attached hereto as Exhibit A, would better serve the Corporation’s purpose and governance. Accordingly, the following resolution is adopted: RESOLVED that the amended and restated Bylaws presented to the Board be adopted as the Bylaws of this Corporation, and that a copy of those Bylaws shall be attached to the minutes of the meeting and inserted in the Corporation's minute book. RESOLVED FURTHER, that the Secretary of this Corporation is authorized and directed to execute a certificate of the adoption of those Bylaws, to insert those Bylaws as so certified in the minute book of this Corporation, and to cause a copy of those Bylaws, as they may be amended from time to time, to be kept and maintained at the principal executive office of this Corporation, in accordance with Section 7160 of the California Corporations Code. Establishment of Number of Directors The Corporation’s Bylaws provide for a Board of Directors with a variable number of members ranging from a minimum of three (3) to a maximum of seven (7) Directors, with the actual number of members to be fixed from time to time by resolution of the Board of Directors. The Board of Directors now wishes to fix the number of Directors. Accordingly, the following resolution is adopted: RESOLVED that Board of Directors shall consist of six (6) members until such time that the Board of Directors changes such number by resolution adopted pursuant to the terms of the Corporation’s Bylaws. Eわaわn qfDみやeの鳩 The following six (6) persons are hereby elected as additional Directors ofthis Corporation for the ensumg year and until their successors have been elected and qua岨ed: Rysn Howe サO皿E喝重ek蒔 Faith Strader Wendy Hewett Aaron Schu血nam Adam Hewett Dated: SeDtember 27. 201 8 2 EXHIBIT A Form of Bylaws 3 AMENDED AND RESTATED BYLAWS OF CANOPY CLUB, INC., A CALIFORNIA NONPROFIT MUTUAL BEENFIT CORPORATION 4 ARTICLE I Purposes and Definitions The purpose of Canopy Club, Inc. (herein referred to as the “Corporation”) is to engage in any lawful act or activity, other than credit union business, for which a corporation may be organized under the Nonprofit Mutual Benefit Corporation Law. In the context of this general purpose, the Corporation shall facilitate herbal or natural remedies for chronically ill patrons who are California residents with HIV, AIDS, chronic pain, chronic spasticity, glaucoma, arthritis, cancer, migraine, wasting syndrome, and/or such other conditions for which licensed medical physicians may recommend such herbal or natural remedies pursuant to California Law. ARTICLE II Principal Office The principal office for the transaction and affairs of the business of the Corporation shall be located at 118 N. Milpas St., Santa Barbara, in Santa Barbara County, California. The Board of Directors of the Corporation (the “Board”) may change the location of the principal office. Any such change of location must be noted by the Secretary on these Bylaws opposite this Section; alternatively, this Section may be amended to state the new location. ARTICLE III Non- Member Corporation 3.01. No Members. The Corporation will not have any members. 3.02. Effect of Lack of Members. Any action that would otherwise require approval by a majority of all members or approval by the members requires only approval of the Board. All rights that would otherwise vest in members under the Nonprofit Mutual Benefit Corporation Law will vest in the Board. ARTICLE IV Directors 4.01. Powers. Subject to limitations of the Articles of Incorporation and these Bylaws (collectively, the “Governing Documents”) and the California Corporations Code, and subject to the duties of Directors as prescribed by the Bylaws, all corporate powers shall be exercised by, or under authority of, and the business and affairs of the Corporation shall be controlled by, the Board. Without limiting the generality of the preceding paragraph, the Directors shall have the following powers: (A) To elect and remove all Officers, managers, management members, agents and employees of the Corporation, prescribe such powers and duties for them as may be deemed necessary or desirable, fix their compensation and require from them security for faithful service. (B) To conduct, manage and control the affairs and business of the Corporation. (C) To direct and oversee the performance of management services or other activities consistent with the purpose of the Corporation. (D) To contract and to levy assessments for the activities herein authorized, including such acts as may be incidental to the stated powers and authorities and affairs of the Corporation. (E) To adopt, make and use a corporate seal, and alter the form of such seal from time to time as in their judgment they may deem best, provided such seal shall at all times comply with the provisions of law. (F) To prepare budgets and financial statements. (G) Subject to compliance with Governing Documents, to institute, defend, settle or intervene on behalf of the Corporation in litigation, arbitration, mediation, or administrative proceedings in matters pertaining to: (1) enforcement of the Governing Documents; and/or (2) any other matter as determined by the Board. (H) To exercise all the powers and authorities set forth in the Governing Documents including, without limitation, the assessment powers therein. (I) To pay taxes and special assessments which are, or would become, a lien on the real, structural or personal property of the Corporation, if any. (J) To contract and pay premiums for fire, casualty, liability and other insurance, including indemnity and other bonds, as required by the Governing Documents, or as deemed advisable by the Board. (K) To delegate its powers to committees, Officers, employees or agents of the Corporation, so long as any delegation pursuant to this section conforms to all applicable law, including but not limited to Santa Barbara City Municipal Code section 30.185.250. -6- (L) To nominate and elect successor Directors to the Board. (M) To fill vacancies on the Board. 4.02. Number and Qualification of Directors; Quorum. The Board shall consist of at least three (3) but no more than seven (7) Directors until changed by appropriate amendment. The exact number of Directors shall be fixed, within those limits, by a resolution adopted by the Board. A majority of the authorized number of Directors shall constitute a quorum for the transaction of any business except adjournment. If the vote of the Directors on a particular matter is deadlocked such that there are the same number of votes approving the matter as there are disapproving the matter, the matter shall be deemed disapproved. 4.03. Election, Term of Office and Removal. The Directors shall be elected at each annual meeting of the Board to serve for a term of one (1) year, but if any such annual meeting is not held or the Directors are not selected thereat, the Directors may be elected at any special meeting held for that purpose. Notwithstanding the foregoing, all Directors, unless removed, shall hold office until their respective successors are elected. Directors are eligible for reelection. 4.04. Vacancies. Vacancies in the Board may be filled by the remaining Directors, though less than a quorum, and each Director so elected shall hold office until his/her successor is elected at an annual meeting of the Board or at a special meeting called for that purpose. A vacancy or vacancies shall be deemed to exist upon the resignation, removal or death of any Director. A vacancy or vacancies may also be deemed to exist in the event the Board increases the authorized number of Directors, but fails, at the meeting at which such increase is authorized, or at an adjournment thereof, to elect the additional Directors so provided for. A vacancy or vacancies may also be deemed to exist in the event that the Board fails, at any time, to elect the full number of authorized Directors. If any Director tenders his/her resignation to the Board, the Board shall have the power to elect a successor to take office at such time as the resignation shall become effective. No reduction of the number of Directors shall have the effect of removing any Director prior to the expiration of his/her term in office. The Board may declare vacant the office of a Director who has been declared of unsound mind by a final order of court or convicted of a felony or as otherwise provided in Corporations Code Section 7221. 4.05. Location and Time of Meetings. Unless otherwise permitted by law, regular meetings of the Board shall be held at any place within or outside California that has been designated by resolution of the Board or in the notice of meeting or, if not so designated, at the principal office of the Corporation. If unable to personally attend a meeting, Directors may participate in the meeting through the -7- use of a conference telephone, electronic video screen communication or other communications equipment as long as all Directors are able to hear one another and the specific requirements of Corporations Code Section 7211(a)(6) for the use of such communications equipment are met. An emergency meeting of the Board may be called by the President, or by any two (2) Directors, if there are circumstances that could not have been reasonably foreseen that require immediate attention and possible action by the Board, and that, of necessity, make it impractical to provide notice as required above. 4.06. Initial Meeting; Annual Meetings. Immediately following the initial appointment of the Board by the Corporation’s incorporator(s), the Board shall hold an initial meeting for the purpose of organization, election of Officers and the transaction of other business. Thereafter, the Board shall hold an annual meeting for the purpose of electing Officers and the transaction of other business. Notice of such meetings is hereby dispensed with. 4.07. Regular Meetings. Other regular meetings of the Board may be held without notice at such location, date and time as the Board may fix from time to time. Regular meetings of the Board shall be held monthly or less often, including as infrequently as every twelve (12) months if the business to be transacted by the Board justifies less frequent meetings. 4.08. Special Meetings. Special meetings of the Board for any purpose whatsoever, may be called, at any time, by the President, or any two (2) Directors, upon written notice being delivered to each Director; provided, however, that notice of the meeting shall be sent to all Directors not less than 72 hours prior to the scheduled time of the meeting. The notice shall specify the location, date and time of such meeting, as well as the general nature of the business to be transacted thereat. Notice need not be given to any Director who has signed a waiver of notice or consent to holding the meeting. If unable to personally attend the meeting, Directors may participate in the manner described in Section 4.05, above. 4.09. Majority Rule. Except as expressly provided elsewhere in the Governing Documents, a simple majority of the Directors, present at any meeting duly held at which a quorum is present, shall prevail on all questions. 4.10. Election of Officers. All Officers shall be chosen by vote of the Board, except such Officers as may be appointed in accordance with Sections 5.03 and 5.04 of Article V below. 4.11. Action Without a Meeting. Any action that the Board is required or permitted to take may be taken without a meeting if all Board members consent in writing to the action in accordance with Section 7211 of the California Corporations Code. Such action by written consent shall have the same force and effect as any other validly approved action of the Board. All such consents shall be filed with the minutes of the proceedings of the Board. ARTICLE VI -8- Officers 5.01. Officers. The Officers of the Corporation shall be President, Vice President(s), Secretary and Treasurer. Any number of offices may be held by the same person. 5.02. Election. The Officers of the Corporation, except such Officers as may be appointed in accordance with the provisions of Sections 5.03 and 5.04 of this Article V below, shall be chosen annually by the Board, and each shall hold his/her office until he/she shall resign or shall be removed or otherwise disqualified to serve, or until the election and qualification of his/her successor. 5.03. Subordinate Officers, etc. The Board may appoint such other Officers as the business of the Corporation may require, each of whom shall hold office for such period, have such authority and perform such duties as are provided in the Governing Documents, or as the Board may determine from time to time. 5.04. Removal and Resignation. Any Officer may be removed, either with or without cause, by a majority of the Directors, at any regular or special meeting of the Board or, except in the case of an Officer chosen by the Board, by any Officer upon such power of removal as may be conferred by the Board. Any Officer may resign at any time by giving written notice to the Board or the President or the Secretary of the Corporation. Any such resignation shall take effect at the date of the receipt of such notice or at any later time specified therein. Unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective. 5.05. Vacancies. A vacancy in any office because of death, resignation, removal, disqualification or any other cause shall be filled in the manner prescribed in the Bylaws for the regular appointments of such office. 5.06. President. Subject to such supervisory powers, if any, as may be given by the Board to the Chairman of the Board (the “Chairman”), (if there be such a Chairman), the President shall be the Chief Executive Officer of the Corporation and shall, subject to the control of the Board, have general supervision, direction and control of the business and Officers of the Corporation. He/she shall be an ex-officio member of all the standing committees including the executive committee, if any, and shall have the general powers and duties of management usually vested in the office of president of a corporation, as well as such other powers and duties as may be prescribed by the Board or by these Bylaws. 5.07. Vice President(s). In the absence or disability of the President, the Vice President(s), in order of their rank as fixed by the Board or, if not ranked, the Vice President designated by the Board, shall perform all the duties of the President, and when so acting shall have all the powers of and be subject to all the restrictions upon the President. The Vice President(s) shall have such other powers and perform such other duties as from time to time may -9- be prescribed for them respectively by the Board or by the Bylaws. 5.08. Secretary. The Secretary shall keep, or cause to be kept, at the principal office (or such other place as the Board may order) a book of minutes of all meetings of Directors, including, without limitation: (A) the location, date and time of each meeting; (B) whether such meeting was regular or special; (C) if special, then the manner in which such meeting was authorized; (D) the notice given of such meeting, and (E), the names of those present or represented at such meeting. The Secretary shall give, or cause to be given, notice of all meetings of the Board required by these Bylaws or by law to be given, and he/she shall keep the seal of the Corporation in safe custody and shall have such other powers and perform such other duties as may be prescribed by the Board or the Bylaws. 5.09. Treasurer. The Treasurer shall keep and maintain, or cause to be kept and maintained, adequate and correct accounts of the properties and business transactions of the Corporation in compliance with, and up to standards required by, all applicable federal and state laws. The Treasurer shall deposit all monies and other valuables in the name and to the credit of the Corporation with such depositories as may be designated by the Board. He/she shall disburse the funds of the Corporation as may be ordered by the Board, shall render to the President and Directors, whenever they request it, an account of all his/her transactions as Treasurer and of the financial condition of the Corporation, and shall have such other powers and perform such other duties as may be prescribed by the Board or the Bylaws. ARTICLE VI Miscellaneous 6.01. Indemnification; Liability. The Corporation shall indemnify its Directors, Officers, employees and other persons described in Section 7237(a) of the California Corporations Code, including persons formerly occupying any such position, against all expenses, judgments, fines, settlements, and other amounts actually and reasonably incurred by them in connection with any "proceeding," as that term is used in Section 7237(a), and including an action by the Corporation, by reason of the fact that the person is or was a person described in that section. "Expenses," as used in this Section 6.01, shall have the same meaning as in Section 7237(a) of the California Corporations Code. On written request to the Board by any person seeking indemnification under Section 7237(b) or Section 7237(c) of the California Corporations Code, the Board shall promptly determine under Section 7237(e) of the California Corporations Code whether the applicable standard of conduct set forth in Section 7237(b) or Section 7237(c) has been met, and if so, the Board shall authorize indemnification. Should the Board be precluded from authorizing such indemnification by reason of a lack of quorum of Directors not party to the proceedings, such authorization may be accomplished by either of the other methods of authorization specified in subparagraph (e) of said Section 7237 of the California Corporation Code. -10- To the fullest extent permitted by law, and except as otherwise determined by the Board in a specific instance, expenses incurred by a person seeking indemnification in defending any proceeding covered hereunder shall be advanced by the Corporation before final disposition of the proceeding on receipt by the Corporation of an undertaking on behalf of that person that the advance will be repaid unless it is ultimately determined that the person is entitled to be indemnified by the Corporation for these expenses. The Corporation shall have the right to purchase and maintain insurance to the full extent permitted by law on behalf of the Officers, Directors, employees and other agents against any liability asserted against or incurred by any Officer, Director, employee or agent in such capacity or arising out of the Officer's, Director's, employee's or agent's status as such. The Treasurer shall, subject to Board approval as to cost and coverage, seek to obtain through such insurance protection against such liability. The purpose of the foregoing provision is to protect the Directors, Officers, agents and employees of the Corporation from liability for acts committed on behalf of the Corporation, so long as such persons act in good faith and in a manner such persons reasonably believed to be in the best interests of the Corporation. 6.02. Inspection of Corporation Books and Records; Documentation to be Delivered. The Corporation must keep adequate and correct records of account and minutes of the proceedings of the Board and committees of the Board. Each Director shall have the right at any reasonable time to inspect all books, records and documents of the Corporation and physical properties owned or controlled by the Corporation. The right of inspection by a Director includes the right to make extracts and copies of documents. 6.03. Checks, Drafts, etc. All checks, drafts or other orders for the payment of money, notes or other evidences of indebtedness issued in the name of or payable to the Corporation shall be signed or endorsed by such person, and in such manner as from time to time shall be determined by resolution of the Board. 6.04. Contract, etc., How Executed. The Board, except as otherwise provided in the Bylaws, may authorize any Officer, agent or employee to enter into any contract or execute any instrument in the name of, and on behalf of, the Corporation, and such authority may be general or confined to specific instances. Unless so authorized by the Board, no Officer, agent or employee shall have any power or authority to bind the Corporation by a contract or engagement or to pledge its credit or to render it liable for any purpose or for any amount. 6.05. Amendments. These Bylaws may be amended or repealed by the affirmative vote of the Directors representing a majority of the Board. Any and all such amendments to these Bylaws must be in writing and must be certified by the Secretary of the Corporation. -11- ACTION OF BOARD OF DIRECTORS OF CANOPY CLUB, INC. TAKEN BY UNANIMOUS CONSENT WITHOUT A MEETING The undersigned, being all of the directors of Canopy Club, Inc., a California nonprofit mutual benefit corporation, acting by unanimous written consent without a meeting pursuant to Section 7211(b) of the California Corporations Code and Section 4.11 of the Bylaws of the corporation, take the following actions, transact the following business and adopt the following resolutions on behalf of the corporation. Appointment of Ryan Howe as Chairman of the Board of Directors. The Corporation wishes to appoint Ryan Howe as the Chairman of the Board. Accordingly, the following resolution is adopted: RESOLVED, that the appointment of Ryan Howe as the Chairman of the Board of Directors is hereby approved. Termination of Citral Group, LLC. The Corporation entered into a Conditionally Approved Management and Consulting Agreement (the “Citral Agreement”) with Citral Group, LLC on or about June 3, 2018. Recital E. of the agreement provides that the City of Santa Barbara must approve Citral Group as the Management Company for the agreement to be valid. Section 15 of the Citral Agreement provides that the Corporation may terminate said agreement for cause. The Directors have determined that cause exists for the termination of the Citral Agreement and said agreement will not be presented to the City for approval and thus the agreement is invalid. Accordingly, the following resolution is adopted: RESOLVED, that the Corporation shall terminate the Citral Agreement for cause. RESOLVED, that the Officers, employees or any other agents of the Corporation are hereby authorized and directed to take any and all actions necessary to terminate the Citral Agreement on behalf of the Corporation. Conditional Engagement of WAKKI, LLC. The Corporation wishes to enter into a Consulting Agreement (the “WAKKI Agreement”) with WAKKI, LLC so that WAKKI, LLC can provide managerial, administrative and technological advice and support to the Corporation. The Directors have been presented with a form of the WAKKI Agreement, a copy of which is attached hereto as Exhibit A. Accordingly, the following resolution is adopted: RESOLVED, that the Corporation shall, subject to approval by the City of Santa Barbara, enter into the WAKKI Agreement with WAKKI, LLC, and the Officers, employees or any other agents of the Corporation are hereby authorized and directed to take all actions necessary to engage WAKKI, LLC, as a manager and consultant, including but not limited to executing the WAKKI Agreement on behalf of the Corporation, including but not limited to seeking approval of the WAKKI Agreement by the City of Santa Barbara. Change of Management Members. Clay Becker currently serves the Corporation as one of the Management Members for the purposes of the Corporation’s medical cannabis storefront collective dispensary permit from the City of Santa Barbara. The Directors have determined that it is in the Corporation’s best interest to terminate the services of Clay Becker with respect to his position within the Corporation. Furthermore, the Corporation wishes to appoint Wendy Hewett, Mukesh Patel and Nicholas Von Wiesenberger to serve as managers and Management Members within the Corporation. Accordingly, the following resolutions are adopted: RESOLVED, that Clay Becker is terminated as manager and Management Member and any other position or role he serves within the Corporation, subject to satisfaction of such requirements and receipt of such approvals, if any, from the City of Santa Barbara and any other governmental agency with jurisdiction or authority over the Corporation’s medical cannabis storefront collective dispensary permit. RESOLVED, FURTHER, that Wendy Hewett, Mukesh Patel and Nicholas Von Wiesenberger are appointed to serve as managers and Management Members within the Corporation, subject to satisfaction of such requirements and receipt of such approvals, if any, from the City of Santa Barbara and any governmental agency with jurisdiction or authority over the Corporation’s medical cannabis storefront collective dispensary permit. RESOLVED, FURTHER, that the Officers, employees, and other agents of the Corporation are hereby authorized and directed to take any and all actions necessary or appropriate to effectuate the foregoing resolutions, including but not limited to informing the City of Santa Barbara of the proposed changes in managers and Management Members, obtaining all required consents and performing all other tasks necessary to comply with the City’s medical cannabis storefront collective dispensary permit ordinance and related requirements. Removal of Arman Karkotsyan as an Approved Signatory on the Wells Fargo & Company Corporate Bank Account along with the addition of Wendy Hewett and Faith Strader as Approved Signatories. The Corporation has a corporate bank account with Wells Fargo & Company. Arman Karkotsyan is currently an approved signatory on this account and the Directors wish to remove him as such. Additionally, the Directors wish to add Faith Strader and Wendy Hewett as -2- EXHIBIT A Form of Consulting Agreement -4- Consulting Agreement This CONSULTING AGREEMENT (this "Agreement"), dated as of December 20th, 2018 (the "Effective Time"), is by and between WAKKI, LLC, a South Dakota limited liability company dba Green Cuisine Delivery (the "Company") and Canopy Club, Inc., a California nonprofit mutual benefitcorporation (the "Client,"). Recitals WHEREAS, A The Client is a California nonprofit mutual benefit corporation operating a California State Licensed medical marijuana dispensary and delivery service and needs business consulting services. B. The Company is in the business of providing consulting services to organizations such as the Client and wishes to furnish the Company with appropriate services related to Client's delivery service. C The Company also owns certain valuable intellectual property and trademarks ("IP") that will be useful to the Client in its development and operations, and the Company is willing to lease, with limited use, the IP to the Client. D. The Client desires to focus its energies, experLise ancl Lime on heallh-relaLecl serviees Lo member customers. To accomplish this goal, the Client desires to engage the Company to provide such delivery services as are necessary and appropriate to the Client's operations, and Company desires to provide such services to the Client, all upon the terms and subject to the conditions set forth in this Agreement. E. This Agreement will not be valid until such time as the City of Santa Barbara approves WAKKI, LLC as the Consulting Firm for Client's delivery service. Agreement NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt and sufficiencyof which are hereby acknowledged, the Company and the Client (hereinafter, collectively the "Parties", or each, individually, a "Party")agree as follows: L Provision of Services. Upon the terms and subject to the conditions contained in accordance with restrictions on and exceptions to the services the Company may perform for the Client under applicable federal and state laws, the Company hereby agrees to provide to the Client the services ("Services") set forth in Schedule 1, attached. 2. Budget and Business Plan. Not later than 30 days prior to the commencement of each year and, within 30 days after the date of this Agreement, the Client and Company shall mutually prepare a budget for the upcoming year and an updated business plan for the upcoming year, including monthly and annual operating budgets for Client including capital expenditure, research and development, and operating expense budgets, cash flow projections, covenant compliance and calculations of all outstanding and projected indebtedness, all itemized in reasonable detail. The budget as so prepared and as approved by the Client and Company shall be the Client's budget (the "Budget"), and the business plan as approved by the Client and Company shall be the Client's business plan for the succeeding year, subject to quarterly (3 month) adjustment as provided herein (the "Business Plan"). In the event that the Client has not approved the Budget forany year, the Company and Client shall continue to operate in the ordinary course of business in accordance with prior year's budget, if any, until such time as the Budget for the Client's then current year has been approved by Client and Company. Any material modificationsto the Budget shall require the approval of Client and Company. 3, Acknowledgments; Competition. Client acknowledges that Company may obtain equipment and supplies from affiliates of Company and consents thereto provided that Company believes that it is in the best interest of the Client to do so. Client acknowledges that the Company and persons, firms or entities affiliated with or owned or controlled by the Company engage in business and activities that are similar with the business and activities of Client, and that the Company may perform services for other clients in the same industry as Client. Client shall not have any right, by virtue of this Agreement or the servicesprovided by Company hereunder, to share or participate in other businesses or activities of Company or the income or proceeds derived therefrom. Company does not in any way relinquish its rights to be in above mentioned endeavors. 4 Charges and Payment. Client agrees to bear and to pay all of the costs incurred by the Company in providing the Services ("Costs"). Costs shall equal the sum of Direct Costs plus Overhead Costs plus IP monthly fee, plus all applicable labor, and sales costs. The basis for determining Costs shall be those used by Company for its internal cost distribution including, where appropriate time records prepared for this purpose. Such basis shall be modified and adjusted by the Parties' mutual agreement where necessary or appropriate to reflect fairly and equitably the actual incidence of Costs by the Company. Costs shall be allocated to the Client and other clients of the Company based on a reasonable allocation methodology to be identified by the Company each year as part of its budgeting process. a Direct Costs. Direct Costs mean the sum of all internal and external costs incurred by the Company in providing the Services including, but not limited to, allocable salaries and wages, incentives, direct non labor costs and similar expenses, and reimbursement of out-of-pocket third-party costs and expenses. b. Overhead Costs. Overhead Costs mean all internal and external indirect costs incurred by the Company in providing the Services and shall include (but are not limited to) general overhead and facilitiescharges (for example, office rent, depreciation, maintenance, utilities and supplies). c. Fees. The Client agrees to pay the Company those service feesan d license feesfor Intellectual Property (collectively, the "Fees") d Payment. i. The Company shall submit a statement to Client no later than Monday each week with respect to the amount of Costs payable by Client for such week (a "Statement"). Each Statement shall set forth in reasonable detail the Costs incurred in the providing the Services to Client. ii. Client is to make full payment forall Services and Fees as set forthin the Statement (less any applicable withholding taxes)no later than the Thursday immediately following receipt of the Statement. Payment shall be made in U.S. dollars. In the event of any disagreement between the Company and Client with respect to any Statement or any amounts owed thereunder, the Client agrees to pay in full in good faith the undisputed balance due. To resolve such dispute an internal audit is to be completed to discover any error. If the dispute is not resolved, a third party auditor will determine who is at fault. Auditor fees are evenly split by the Client and the Company. iii. For the purposes this section (4,d), a "week" will be the period that runs from Sunday through Saturday, a standard calendar week. iv. The Company and the Client agree to adjust charges when unforeseen expenses arise or as services increase or decrease in quantity or value. Wakki, LLC. is a consulting firm that specializes in providing a unique blend of marketing and operations services to licensed cannabis companies. Similar to Canopy hiring a payroll service or HR Services firm to handle a specific aspect of its business, Wakki manages a proprietary, proven delivery service platform with built in protocols that integrate with licensed cannabis dispensaries and/or delivery services. In other words, Wakki will help Canopy oversee certain aspects Canopy's delivery service process by assisting the Company with specialized marketing programs to attract new customers, providing call center center services through its existing call center, and creating custom training and operating compliance manuals for Canopy employees to follow. All delivery drivers, dispatch coordinators and managers, cashiers, and inventory coordinators/managers will be employed by Canopy. Service Descriptions: Oversight of Delivery Departments: This consultant reports directly to Ryan Howe and is responsible for day to day oversight of the ordering process, call center, tracking systems, and customer satisfaction/retention. It is intended that this person is also an approved manager at Canopy.5IJTQFSTPOXPVMECFeither 8FOEZ)FXFUUBOE/or.VLFTI1BUFM Inventory and Audits: This is an accounting function reporting to Faith Strader exclusive to the delivery service. This function will happen once a quarter during the closing of Canopy's accounting books and records. 'BJUI4USBEFSPWFSTFFTBMMBDDPVOUJOHBOE)3GPS $BOPQZ Call Center Manager: Handles the day to day aspects of the call center and trains the phone operators.3FQPSUTUP8FOEZ)FXFUUBOE.VLFTI1BUFM Phone Operators: Handle incoming calls for sales and service and route all orders to Canopy dispatch. Call Center Security: Handles security for the call center and hosts security meetings and training sessions for the drivers and executives. This person reports to Byron Engelking XIPPWFSTFFTBMMTFDVSJUZDPNQMJBODFBOEEBZUPEBZEJTQFOTBSZPQFSBUJPOTGPS$BOPQZ. Human Resources Consultant: Handles creation of manuals for SOP's, procedures, and compliance for specific aspect of its delivery business. This person reports to Faith Strader XIPPWFSTFFTBMMBDDPVOUJOHBOE)3GPS$BOPQZ. Marketing Consultant: Generates digital content and marketing materials for the delivery service. This person will report to Ryan HoweXIPPWFSTFFTBMMPG$BOPQZBTXFMMBT$BOPQZ .BSLFUJOH. * Oversight, Call Center Manager, and Phone Operators work between 20-30 hours a week as needed. They bill Canopy on an hourly basis, every other week. Prior to a given work week, Faith Strader reviews the previous week with all consultants and sets the schedules for the upcoming week. * All other functions are "as needed" and consultants are hired on a short term project to project basis. In other words, Canopy will know in advance the amounts it will have to pay for these services in advance of scheduling each consultants work time. The Canopy Health and Wellness Center “Attachment 5” Directors Signed Statements 59 The Canopy Health and Wellness Center Statement: Ryan Steven Howe A statement dated and signed by each Canopy Member, of the Collective, under penalty of perjury, that the Canopy Member has personal knowledge of the information contained in the Dispensary Application, that the information contained therein is true and correct, and that the application has been completed under the supervision of the identified Canopy Member(s): I, Ryan Steven Howe, hereby declare as follows: I am the Founder of the Canopy Club Inc.; My function is: Provide leadership to position the organization at the forefront of the industry, to develop the strategic plan to advance its mission, create and manage brand, marketing, and community PR strategy, and to promote overall organizational growth. My address is: 2542 Crescent Avenue, Santa Barbara, CA 93105; My phone number is: (805) 895-2578 I have personal knowledge of the information contained in the Canopy Club Medical Marijuana Storefront Collective Dispensaries Application, and that the application has been completed under the supervision of Ryan Howe; and that the information contained therein is true and correct. I have not engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices with respect to the operation of another business within the City. I have not been convicted of a felony; on probation or parole for the sale or distribution of a controlled substance. I understand the requirement that I must not be convicted of a felony, be on probation or parole for a felony, and continue acting as a Director of the Storefront Collective Dispensary. I have not made a false statement of material fact or omitted to state a material fact in the application. I declare under the penalty of perjury under the Laws of the State of California that the foregoing is true and correct. 11-16-2017 Ryan S. Howe Founder, The Canopy Dated 60 Statement: Wendy Hewett A statement dated and signed by each Canopy Member under penalty of perjury, that the Canopy Member has personal knowledge of the information contained in the Dispensary Application, that the information contained therein is true and correct, and that the application has been completed under the supervision of the identified Canopy Member(s): I, Wendy J Hewett, hereby declare as follows: I am the Manger and Director, of the Canopy Club Inc.; My function is:To insure compliant operations within The Administrative portion of the business and to manage the delivery and dispensary day to day. My address is:4827 Ogram Rd; Santa Barbara CA 93104 My phone number is: 805-729-3868 I have personal knowledge of the information contained in the Canopy Club Medical Marijuana Storefront Collective Dispensaries Application, and that the application has been completed under the supervision of Ryan Howe; and that the information contained therein is true and correct. I have not engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices with respect to this, or another business within the City. I have not been convicted of a felony; on probation or parole for the sale or distribution of a controlled substance. Or if I have, my record has been expunged of all felonies. I understand this is a requirement to be an acting Manager of the Storefront Collective Dispensary. I have not made a false statement of material fact or omitted to state a material fact in the application. I declare under the penalty of perjury under the Laws of the State of California that the foregoing is true and correct. Statement: Mukesh Patel A statement dated and signed by each Canopy Member under penalty of perjury, that the Canopy Member has personal knowledge of the information contained in the Dispensary Application, that the information contained therein is true and correct, and that the application has been completed under the supervision of the identified Canopy Member(s): I, Mukesh Patel, hereby declare as follows: I am the Manager of the Canopy Club Inc.; My function is: Day to day management of the Retail portion of the business My address is:409 Old Coast Hwy; Santa Barbara CA 93103 My phone number is:805 680 6257 I have personal knowledge of the information contained in the Canopy Club Medical Marijuana Storefront Collective Dispensaries Application, and that the application has been completed under the supervision of Ryan Howe; and that the information contained therein is true and correct. I have not engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices with respect to this, or another business within the City. I have not been convicted of a felony; on probation or parole for the sale or distribution of a controlled substance. Or if I have, my record has been expunged of all felonies. I understand this is a requirement to be an acting Manager of Delivery and storefront Collective Dispensary. I have not made a false statement of material fact or omitted to state a material fact in the application. I declare under the penalty of perjury under the Laws of the State of California that the foregoing is true and correct. Signed: ....1:..... 4-1.��"".'"":'.:..:.• .,,_'______---:Dated:2/20/1 9 Statement: Adam Hewett A statement dated and signed by each Canopy Member under penalty of perjury, that the Canopy Member has personal knowledge of the information contained in the Dispensary Application, that the information contained therein is true and correct, and that the application has been completed under the supervision of the identified Canopy Member(s): I, Adam J Hewett, hereby declare as follows: I am the Manger and Director of the Canopy Club Inc.; My function is: Toinsure compliant operations and manage the retail portions of the business My address is: 4827 Ogram Rd; Santa Barbara CA 93104 My phone number is: 805-729-3868 I have personal knowledge of the information contained in the Canopy Club Medical Marijuana Storefront Collective Dispensaries Application, and that the application has been completed under the supervision of Ryan Howe; and that the information contained therein is true and correct. I have not engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices with respect to this, or another business within the City. I have not been convicted of a felony; on probation or parole for the sale or distribution of a controlled substance. Or if I have, my record has been expunged of all felonies. I understand this is a requirement to be an acting Manager of the Storefront Collective Dispensary. I have not made a false statement of material fact or omitted to state a material fact in the application. I declare under the penalty of perjury under the Laws of the State of California that the foregoing is true and correct. Signed: