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HomeMy WebLinkAboutStaff Report 3.G 06/04/2018zs5$ DATE: June 4, 2018 TO: FROM: SUBJECT: • • MR Honorable Mayor and Members of the City Council through City Manager Ingrid Alverde, Economic Development Manager. Report on the Results of an RFP for a Delivery -Only Cannabis Retailer RECOMMENDATION It is recommended that the City Council receive the report on the results of a Request for Proposals (RFP) for a Delivery -Only Cannabis Retailer. BACKGROUND On December 4, 2017, the City Council adopted an ordinance allowing for cannabis cultivation and specified cannabis manufacturing, testing, and retail delivery operations. On December 18, 2017, the City Council approved regulations providing for how commercial cannabis businesses would be permitted and regulated within the City of Petaluma. When the City Council approved the regulations, they also confirmed that the delivery -only retailer permits (up to two) would be issued through a competitive proposal process. DISCUSSION On March 12, 2018, the RFP was sent to approximately 18 businesses who had indicated interest in a delivery -only retail permit. The RFP was also uploaded to the City's website. By the April 3, 2018, deadline, the City received seven proposals from the following businesses. in alphabetical order: Express 2You, Inc. Luma Petaluma Holistic Group Rhizome Rx Family, Inc. Sonoma Aroma Wine Country Cannasseurs The selection process involved two levels of review. First, the proposals were reviewed for completeness and scored against the criteria provided in the RFP. The criteria included background and experience, proposed business model, financial strength, security plan, and references. The first category, Background and Experience, was ranked by the number of years that the team members have been working in the cannabis industry and the team's total overall business experience. The second category, Proposed Business Model, was ranked in two areas: the completeness of the plan / quality of jobs, and the overall level of customer and community services. The third category, Financial Strength, was ranked by the team's demonstrated ability to cover start-up and operational costs. The fourth category, Security Plan, was ranked by the level of detail and completeness of the proposed plan. Finally, the fifth category, References, was ranked by the nature and impression of the references and letters of recommendation. The top four proposers, Luma, Rx Family, Inc., Rhizome, and Petaluma Holistic Group - were offered interviews with a panel that included the Economic Development Manager; the Interim Planning Manager; two local business owners; and the San Rafael Economic Development Director who has extensive experience working with the cannabis business market and associated State regulations. The panel interviewed the top four teams and ranked them according to each team's demonstrated ability, approach, experience, and cohesion. Cohesion was determined to be important as many of the teams were newly -formed businesses with owners that had not worked together before. Two teams were subsequently eliminated due to failed background checks. The determination to disqualify the two teams was made by the Petaluma Police Chief, at his discretion, as outlined in the regulations and the RFP. While information about the criminal findings is confidential, it was confirmed that neither team's criminal history included activity related to cannabis. Rhizome LLC, passed the background checks, met the RFP criteria, and was supported and selected by the panel. The Rhizome group proposes a "Farmhouse Artisan Market" model for its delivery -only retail business (see attachment 2). Owners Claire Firestone and James Clark both have extensive experience advising customers about the compassionate use of cannabis through the State's Prop 215 and Senate Bill 420 rules that allowed for medicinal cannabis sales and use. The team has a background in pharmaceutical sales, personal experience treating family members with cannabis, a decade of cannabis dispensing experience, and a passion for providing quality cannabis products to the, local community. They are also supported by a board of directors with extensive business and technology experience. Personal references were positive. The next steps are for the Rhizome team to identify a suitable location for their business, complete a zoning check, and pay the $3,500 fee established for the Cannabis Business Permits. That permit will be effective through the calendar year and then renewed if the operations meet established standards. Since the April 3, 2018 deadline, additional businesses have contacted the City that are interested in operating a delivery -only retail facility. It is staff's intention to get Rhizome permitted and operating, and to then issue another RFP to select a second operator to serve the Petaluma community. The teams that submitted proposals but were not selected will receive constructive feedback about their proposals should they choose to submit during a second selection round. 2 FINANCIAL IMPACTS Staff costs to manage the program will be covered by the permit fee of $3,500. ATTACHMENTS 1. Request for Proposals 2. Rhizome, LLC Proposal ® Items listed below are large in volume and are not attached to this report, but may be viewed in the City Clerk's office. 3. The remaining six proposals are available for viewing at the City Clerk's Office. 3 ATTumm- ACHMENT 1 DIRECT QUESTIONS AND PROPOSALS TO: |NGR|DALVERDE |ALVERDE@)C|.PETALUy4A.CA1US 707-778-4549 11ENGLISH STREET PETALUMA,[A94952 � t z = "1101910101 0 RFP INSTRUCTIONS, NOTIFICATIONS, AND LIMITATIONS .....:........................................... PROPOSAL PROCESS / RFP TIMELINE....................................................................... SELECTION CRITERIA AND SCORING........................................................................ RFP RESPONSE FORMAT / SUBMITTAL REQUIREMENTS INTRODUCTION..................................................................................................................... OPERATOR BACKGROUND & EXPERIENCE.............................................................................. BUSINESS PLAN AND OPERATIONS PROPOSAL........................................................................ FINANCIAL INFORMATION..................................................................................................... REQUESTED ATTACHMENTS.................................................................................................. ATTACHMENTS 1. PETALUMA CANNABIS ORDINANCE 2. PETALUMA COMMERCIAL CANNABIS BUSINESS REGULATIONS 3. PETALUMA COMMERCIAL CANNABIS PERMIT APPLICATION 4. PETALUMA COMMERCIAL CANNABIS SECURITY STANDARDS Petaluma RFP—Cannabis Delivery -Only Dispensaries Page 2 5 L -I The Petaluma City Council adopted an Ordinance (Attachment A) banning Commercial Cannabis activities with exceptions for businesses that manufacture and test cannabis products and up to two (2) delivery -only retailer businesses (Retailers). The Ordinance stipulated that the City Council would establish detailed regulations for the commercial cannabis businesses at a later date. On December 18, 2017 the Petaluma City Council approved the Petaluma Commercial Cannabis Regulations (Regulations) (Attachment B) that will guide permits and operational requirements for cannabis businesses. The Regulations outline operator and operating requirements, location limitations, permit terms, permit renewal / revocation procedures, and enforcement. Successful retailer permit recipients will be subject to all State laws and requirements of the Petaluma Cannabis Ordinance and Regulations. The City of Petaluma (City) is issuing this Request for Proposals (RFP) for individuals or businesses interested in applying for a Delivery -Only Retailer Permit. Responses to this RFP are sought from professional, qualified individuals or businesses that are capable of opening and operating a safe, secure, and viable delivery -only cannabis retailer within the City limits. A Commercial Cannabis Retailer Permit will cost $3,500 for the first year and $2,500 each additional year. Petaluma RFP —Cannabis Delivery -Only Dispensaries Page 3 6 MIY�, 1 0 11 r� 1 1. All Information True — By submitting a response, proposers represent and warrant to the City that all information provided in the response submitted shall be true, correct and complete. Proposers who provide false, misleading or incomplete information, whether intentional or not, in any of the documents presented to the City for consideration in the selection processed may be excluded. Non -Conforming Proposal —A proposal shall be prepared and submitted in accordance with the provisions of these RFP instructions and specifications. Any alternation, omission, addition, variance; or limitations of, from or to a proposal may be sufficient grounds for non-acceptance of the proposal, at the sole discretion of the City. 3. Interviews — After the initial evaluation of the written proposals, proposers will be notified of their status in the selection process. Proposers should expect and anticipate subsequent interviews which will most likely focus not only on the proposer's business plan but also on an appraisal of the professionals who would be directly involved in the operation of the business. 4. Inquiries —Written questions regarding the RFP should be submitted by the listed deadline. No verbal questions or inquiries will be accepted. All written inquiries may be made available to all interested proposers. The City may publish a subsequent RFP addendum responding to questions for which proposers may be required to acknowledge receipt. 5. Cost of Responses — The City will not be responsible for the costs incurred by anyone in the preparing or submitting of responses to this proposal. 6. Limitations —This RFP is not to be construed as an offer, a contract, or as a commitment of any kind. 7. No Obligations — The City reserves the right to: (1) evaluate the proposals submitted; (2) waive any irregularities therein; (3) select candidates for the submittal of more detailed or alternate proposals; (4) accept any submittal or portion of submittal; (5) reject any or all proposals; or (6) cancel the entire process. 8. Final Decision —The City's decision regarding the selection or non -selection of any or all applicants is final. Petaluma RFP—Cannabis Delivery -Only Dispensaries Page 4 7 ®�F.d �, ®/, ` I The following table outlines the proposal process, listing key dates up to the date a permit can be expected to be issued. Dates may change if needed. Proposals must be received by the deadline. Incomplete or late proposals may be rejected. RFP distribution Proposer's written questions to clarify RFP Release of addendum to RFP, if necessary Proposals due Interview Panel Retailer Selection March 12, 2018 March 22, 2018 March 27, 2018 April 3, 2018 Week of April 9 —13, 2018 April 19, 2018 t5ALKl7KU1J1V1J AIVU vroposer ana team meet crimmai Lu points EXPERIENCE background requirements, have experience operating a cannabis business. PROPOSED BUSINESS Proposed business model is complete and 30 points MODEL/ PLAN viable, meets all requirements outlined in the Petaluma Commercial Cannabis Regulations, and provides quality jobs and service to the community. FINANCIAL-- STRENGTH - - - - Business is sufficiently funded to support - - -- 20 points the proposed business model / plan. Group has track record of operating successful businesses. SECURITY PLAN Proposal indicates ability and willingness to 15 points adhere to all Security Requirements. REFERENCES Proposer references are positive. 15 points TOTAL Total possible points 100 points Petaluma RFP —Cannabis Delivery -Only Dispensaries Page 5 INTRODUCTION 1. Title Page Cover: This should include the name of the proposing business. 2. Table of Contents: Please include a table of contents for the RFP response. 3. Transmittal Letter: The letter should identify the following: a. Proposer b. Brief overview of qualifications c. Contact information d. Acknowledgment that information provided in proposal is true, accurate, and current e. Acknowledgment that proposer is willing to abide by the City of Petaluma Commercial Cannabis Ordinance and Regulations (Attachment A & B) Address letter to: Ingrid Alverde City of Petaluma 11 English Street Petaluma, CA 94952 OPERATOR BACKGROUND AND EXPERIENCE 1. TEAM INFORMATION a. Business Name, Address, Phone Number b. Business Structure (I.E. Sole Proprietorship, Partnership, Etc.) c. Number of years in business, if applicable. d. Names of principals in business e. Primary Contact f. Organizational Description . g. Description of business's philosophy Petaluma RFP — Cannabis Delivery -Only Dispensaries Page 6 9 2. EXPERIENCE a. Describe your teams areas of expertise, permanent staff and the services that you plan to provide. b. Include a brief history and description of your company c. Include an organizational chart that explains team member responsibilities. Provide resumes for each member of the management team (there cannot be a change in the management team once the proposal is submitted without the prior approval of the City) d. Include up to three references — public sector references preferred 3. TRACK RECORD a. Describe your company's track record running a cannabis or similar business. L Describe the success, the longevity, and the history of community perception of your business. 4. CRIMINAL BACKGROUND a. Each member of your team will be subject to a criminal background check. Please visit the Police Department to sign a live scan service form, CSI release & authorization form and employee / owner background application and acknowledgement form. Each member of the proposal team will be required to submit to a criminal background investigation that will include a search of both California and national criminal record databases. Fingerprints shall be required from each member of the proposal team as part of this process. b. Commercial cannabis operators may not have any criminal convictions that substantially relate to the qualifications, functions or duties of the business or profession including, but not limited to a felony conviction involving fraud, deceit, or embezzlement or a criminal conviction for the sale or provision of illegal controlled substances to a minor. c. There will be an additional fee for this service. Petaluma RFP —Cannabis Delivery -Only Dispensaries Page 7 10 BUSINESS PLAN AND OPERATIONS PROPOSAL 1. BUSINESS PLAN a. Describe your business plan including the kinds of products you plan to sell and who you plan to sell them to. The plan should include a description of your target customers, your marketing plan, and how the business will be financial successful. b. Describe how you will get the products that you will sell c. Provide evidence that the proposer either owns sufficient property to conduct the proposed business or has owner consent from a property owner to conduct the business on their property. d. Describe your hiring plan and how you will provide continuing education to staff. 2. OPERATIONS PROPOSAL a. Describe how your business will function on a daily basis. i. Who will staff the phones and warehouse ii. Who will oversee deliveries iii. How you will implement the required security measures (Attachment 4). Include a written security policy that outlines how cannabis will be procured, transported, handled and tracked to prevent diversion iv. How will customers discuss their needs / concerns with your staff b. How will you deliver your products —including vehicle types, delivery timelines and delivery staffing? c. Describe any other community outreach you propose including any plans to provide community education around safe cannabis use. d. Describe the number of new jobs that will be created by your proposed business, including the proposed pay scale. Also outline any other community benefits your proposed business will provide. Petaluma RFP —Cannabis Delivery -Only Dispensaries Page 8 11 FINANCIAL INFORMATION 2 •`11T a. Provide a financial pro forma demonstrating how your business will be profitable b. Include an estimate of the percentage of your business that will be dedicated to selling medical use cannabis and the percentage of your business that will be dedicated to selling adult use cannabis. Please estimate the total sales in each category and how much sales tax will be derived from those sales. 2. BUSINESS COSTS a. Provide a summary of the funds needed to open the proposed delivery only retailer. b. Include operating capital for the first 2 years of operations. 3. AVAILABLE CAPITAL a. How will your team finance the start-up costs of the business? 4. CASH MANAGEMENT a. Describe your team's cash management system 5. FINANCIAL REFERENCES a. Provide a financial statement indicating your team's access to sufficient funds to open the proposed business 1. Packages must be submitted to the city clerk's office by 5 pm on the due date. 2. 5 paper copies, with semi-permanent binding should be submitted, along with one electronic copy. 3. Pages should be no larger than 8 % x 11 or folded to that size. 4. Applicants must complete the required forms and make required payments to the Police Department to affect the required background checks by the proposal deadline. 5. Please also include a Commercial Cannabis Permit Application with your proposal (Attachment 3) Petaluma RFP —Cannabis Delivery -Only Dispensaries Page 9 12 Coil! icic,,l I tk--11 April 8rcl, 20)'113 13 artisan market RHIZOME, LLC March 23, 2018 Dear Ms. Alverde, Claire Firestone and James Clark submit here within a proposal for non -storefront cannabis delivery -only retail. Firestone and Clark have over a decade and a half of combined medical cannabis industry experience. The board of directors bring over 40 years of executive experience in running new and established consumer product businesses. The Human Resources Director has several years of managing medical cannabis business employee affairs. The information provided in this proposal is true, accurate and current. Farmhouse Artisan Market will abide by the City of Petaluma Commercial Cannabis Ordinance and Regulations. Sincerely, Claire Firestone and James Clark 14 FEF01=41KNOUTEXAM, OperatorBackground and Experience..............................................................................................2 1. Team Information.........................................................................................................................2 a. Business Name, Address, Phone Number...................................................................................2 b. Business Structure......................................................................................................................2 C. Number of years in business.......................................................................................................2 d. Names of Principles in business..................................................................................................2 e. Primary contact...........................................................................................................................2 f. Organizational description..........................................................................................................2 g. Philosophy...................................................................................................................................3 2. Experience....................................................................................................................................4 a. Team's areas of expertise, permanent staff and planned services provided .............................4 b. History and description of company...........................................................................................6 C. Organizational Chart...................................................................................................................7 d. References................................................................................................................................12 3. Track Record...............................................................................................................................12 a. Description of company's track record running a cannabis or similar business .......................12 4. Criminal Background..................................................................................................................14 BusinessPlan and Operations Proposal.................................................................................14 .1. Business Plan...............................................................................................................................14 a. Description of business plan.....................................................................................................14 b. Description of how we will get products that we will sell........................................................15 C. Evidence that proposer either owns sufficient property to conduct proposed business or has owner consent to conduct business on their property.....................................................................15 d. Description of hiring plan and continuing education of staff...................................................17 2. Operations Proposal...................................................................................................................17 a. Description of how the business will function on a daily basis.................................................17 b. How products will be delivered................................................................................................34 C. Community outreach................................................................................................................36 d. Job creation, proposed pay scale and community benefits......................................................36 Financial Information............................................................................................................37 1. Pro Forma...................................................................................................................................37 a. Financial pro forma...................................................................................................................37 b. Estimate of percentage of business dedicated to medical verses adult use cannabis and sales taxderived.........................................................................................................................................38 2. Business Costs............................................................................................................................38 a. Summary of funds needed to open proposed delivery only retailer........................................38 b. Operating Capital for the first 2 years.......................................................................................38 3. Available Capital.........................................................................................................................38 a. How team will finance the start-up costs......................................................................................38 4. Cash Management......................................................................................................................38 5. Financial References...................................................................................................................39 a. Financial statement indicating access to sufficient funds to open proposed business ............39 15 Operator Background and Experience 1. Team Information a. Business Name, Address, Phone Number Rhizome, LLC will operate under the DBA "Farmhouse Artisan Market." Unless otherwise indicated in this proposal, references to "we" "us" "our" the "Company" and "FAM" mean, collectively, Farmhouse Artisan Market. Rhizome, LLC b. Business Structure Rhizome is a California Limited Liability Company c. Number of years in business Rhizome, LLC is a newly incorporated company however, the principals have over 13 years of combined cannabis industry experience. d. Names of Principles in business Claire Firestone and James Clark e. Primary contact Claire Firestone f. Organizational description Core Management: CEO -Claire Firestone COO- James Clark 2 16 Ancillary: HR Director- Michelle Saxton Delivery Staff: Couriers- to be hired after permitting Security: Red Anchor Consulting Bay Alarm Financial & Legal: Book Keeping- Year -End Results Tax Attorney- Law Offices of Robert Goldstein Legal Counsel- Dickenson Peatman & Fogarty Board of directors: Brian Firestone- Business Strategist Murray Bognovitz- Technology and Marketing Specialist g. Philosophy The Farmhouse Artisan Market philosophy is centered around fostering a healthy community. We believe in striving for the best customer experience while providing access to the highest quality local, organic and artisanal products and education. We are committed to bringing a high-end customer experience. We believe that building relationships with other local businesses to cross promote and contribute to the local economy is key to our vitality. We take our corporate citizenship seriously and will provide excellent jobs and represent the city and cannabis community in a positive and healthy way. Farmhouse Artisan Market is not simply a delivery service, but a resource for patients and consumers to have their questions answered, to find product reviews, and discover educational and health focused events. FAM believes that self-care is of utmost importance and while cannabis is an important piece for many people, the food we eat, the amount we exercise and getting outside are also key factors to a vibrant, healthy lifestyle. We believe in the value of building strong relationships with our farmers, manufacturers, distributers, laboratories, and customers to create a cohesive marketplace of safe and consistent products. We will only work with vendors who are committed to the wellbeing of our patients, customers and the environment. We strongly believe that cannabis can enhance the quality of life for our 17 customers when they have access to the right information, products, and services. We will always work to be as environmentally conscious as possible. We understand the importance of working with and supporting public safety through this transitional period and into the future. Compliance with local and state laws are of the utmost importance to us and we are looking forward to aligning ourselves With local law enforcement and other public safety departments. a. Team's areas of expertise, permanent staff and planned services provided Claire Firestone, a North Bay native and Petaluma resident of six years, has over ten years of customer service experience, and was a medical cannabis caregiver for several years, assisting her mother as she battled ovarian cancer. She has been working in sales in the medical cannabis industry for the past 2 years. Her bachelor's degree is biological sciences with a sub concentration in chemistry. She is focused on understanding the health implications of the use of cannabis products. Claire's work in sales in pharmaceuticals as well as cannabis informs her understanding of the cannabis market and customer and patients' needs. Her personal history -with caregiving brings a needed level of empathy and compassion to a company servicing medical patients. James Clark, a Sonoma County native, is a seasoned medical cannabis professional. He has been working with medical cannabis dispensaries in several capacities for the past decade. James has maintained strong professional relationships throughout the supply chain that are vital to the success of cannabis retail. His long-term involvement gives him insights into market trends and patient preferences. His deep knowledge of growing and manufacturing processes allows him to effectively understand which products will be appropriate to further Farmhouse Artisan Market's mission to provide safe, consistent and environmentally responsible products. Claire and James are active members of the Sonoma County Growers' Alliance and work on the Public Relations Committee. They are committed to helping the public understand the value of locally cultivated cannabis and The board of directors includes senior executives Brian Firestone and Murray Bognovitz. Brian Firestone has been involved in creating product lines and companies in consumer electronics for over 40 years. Brian has extensive experience in supply 4 18 chain management and contract manufacturing in the audio, wireless and PC industries. In January of 2000 the board of E Machines, then publicly traded, recruited Brian to help salvage the company. Brian led E Machines through their transition, from being a $50m/year company with $10m/month losses, back to profitability and ultimate sale of over $160m. Brian's leadership accomplished the transformation within 7 months of his appointment. Among his myriad of other business accomplishments, Brian is also the founder of Novidor & Firestone DBA Media Delivery Strategies, which is in its 38th year of operations and represents many well-known audio and video companies. It is one of the premier sales and marketing companies in the West with offices in San Rafael, Costa Mesa, and Van Nuys, California; Redmond, Washington; and Scottsdale, Arizona. Brian has made lifelong contributions to the consumer electronics industry at large. He lives in Sonoma and is involved in numerous charities. His experience of creating new product lines, leading companies to financial profitability, and maintaining longstanding corporate endeavors, gives us an immense advantage when creating and implementing our business strategy. Murray Bognovitz is a senior technology executive and trusted business partner. He is accomplished in mapping IT initiatives to the goals of the organization and designing and delivering technology solutions to ensure seamless implementation. With extensive experience in pioneering and industry-leading organizations, as well as start-ups, turnarounds and mature organizations, he has consistently initiated and led initiatives to drive maximum revenues and profitability. Being a creative technology leader, he has led the design and development of innovative IT infrastructure and reengineered existing infrastructures to produce record-breaking efficiencies and productivity. Murray's breadth of experience spans the telecommunications and technology manufacturing industries, as well as the consumer products and entertainment industry. Frequently revered for delivering innovative solutions to complex problems, he's routinely appointed to a seat at senior leadership and board meetings. Murray's years of successfully integrating technological solutions to business success will give FAM a technological advantage in inventory control and client services. The Farmhouse Artisan Market team will be providing excellent customer service, one on one education, professional delivery of craft cannabis and other locally produced goods, and will be hosting educational events. 5 19 b. History and description of company In an effort to fully comply with the California regulations, FAM is the latest iteration of James and Claire's delivery service. Previously, James and Claire operated the service Pacific Medicinals, a Proposition 215 and Senate Bill 420 compliant, medicinal cannabis delivery service, serving Sonoma, Marin and Napa counties. Pacific Medicinals was created in September of 2017, to provide medical patients access to high quality, locally produced cannabis and cannabis products, as well as information. While Pacific Medicinals saw rapid and steady growth, with exclusively positive feedback from patients and vendors, Claire and James stopped operation of the service on January 1 st, 2018, as the Bureau of Cannabis Control, and Proposition 64 deemed it illegal to continue to operate without a state issued license. M. c c. Organizational Chart 21 S1JI,, jIARY OF OUALIFICATIONS Over a decade of customer service experience Customer and patient oriented Health and science focused Experienced care giver in medical cannabis EXPERIENCE SALES REPRESENTATIVE, HIGHTECH EXTRACTS, LLC, WEST COAST, 2017 -PRESENT Generate Leads Build and maintain relationships with lab owners, mangers and operators Educate operators on use of CO2 extraction machines and use of CO2 as a solvent Educate lab personnel on software for data tracking CO-FOUNDER, PACIFIC MEDICINALS, NORTH BAY, CA 2017 Managed delivery operations Built and maintained company website and marketing plan Tracked and managed company financials Educated patients about cannabis, consumption methods, and products ACCOUNT MANAGER, HMBLDT NORTH BAY, CA 2017 Generated business to develop a new sales territory Established and maintained relationships with dispensary and delivery managers and owners Educated dispensary and delivery personnel about products Conducted demos for patients SPECIALTY SALES, INSYS THERAPEUTICS GREATER BAY AREA, CA 2014-2017 Generated business to develop a new sales territory Built strong business relationships with interventional pain physicians and oncologists Consistently maintain growth In sales Established productive relationships with HCPs and office staff Educated HCPs on product and appropriate patient identification Conducted in -services and speaker programs Explained financial assistance programs Maintained relationships with pharmacies to prevent and resolve issues ARTIST'S AND STUDIO ASSISTANT, SARAH LAWRENCE COLLEGE 2011-2012 Managed Inventory of supplies for the studios Provided transportation for enrolled students to museums and galleries In New York city Assisted students in reaching their project goals BARTENDER, MR. CHOW 57TH ST NEW YORK, NY 2011-2012 Prepared drinks for clients Managed all cash transactions Organized, cleaned, and stocked the bar SALES, GREEN MOUNTAIN ENERGY NEW YORK, NY 2011 Provided education about sustainable and renewable electricity Facilitated the sign up for pollution free electricity supply EMERGENCY MEDICAL TECHNICIAN, PROTRANSPORT, SAN FRANCISCO, CA 2010 Assessed patient status Provided basic medical support during transport PHLEBOTOMIST EXTERN, ST. MARY'S MEDICAL CENTER, SAN FRANCISCO, CA 2010 Prepared blood collecting equipment Obtained blood samples for medical testing through venipuncture and capillary puncture Followed infection control and safety procedures Built trust and minimized patient discomfort during phlebotomy procedures PRODUCT SPECIALISTNISUALS TEAM, APPLE INC CORTE MADERA, CA 2007-2009 Recommended solutions to meet customer's needs Assisted customers with purchases Enhanced customer service and communication S 22 Coordinated displays of merchandise Translated technical computer terms into layman's terms Taught basic and advanced components of the operating system and software to customers Assisted with inventory management EDUCATION SARAH LAWRENCE COLLEGE BRONXVILLE, NY Bachelor of Liberal Arts and Sciences, 2012 Concentration: Biological Sciences FAST RESPONSE SCHOOL OF HEALTH CARE EDUCATION BERKELEY, CA Emergency Medical Technician -B January 2010 Certified Phlebotomy Technician -I April 2010 DOMINICAN UNIVERSITY OF CALIFORNIA SAN RAFAEL, CA OXBOW SCHOOL NAPA, CA COMMUNITY SERVICE PUBLIC RELATIONS COMMITTEE, SONOMA COUNTY GROWERS ALLIANCE, SONOMA COUNTY, CA 2018 Increase public awareness of Issues facing cannabis farmers in Sonoma County Address public concerns about cannabis farming in Sonoma County WELL TRAINED HORSES, SEBASTOPOL, CA 2016 Cared for and assisted rehabilitation of rescued horses Aided in fundraising activities VOLUNTEER, MONTANA CONSERVATION CORPS, KALLISPELL, MT 2005-2007 Assisted in maintaining public areas in a State Forest Planted trees In a park in Kalispell, MT VOLUNTEER, BOB MARSHALL WILDERNESS FOUNDATION, HUNGRY HORSE, MT SUMMER 2006 Planned, led, and completed a seven day work project Responsible for organizing daily work, meals, and housing arrangements for a group of 12 people SKILLS Excellent customer service and communication skills; Sales and territory/customer management; Creative problem solving and critical thinking; Paying close attention to detail and learning quickly; Biology and Chemistry laboratory experience INTERESTS Patient Care, Health Science, Cannabis, Laboratory Research, Neuroscience, Teamwork, Food Science, Visual Arts, Music, Botany, Ecological Health, Computer Science 23 SUMAdARY OF OUALIFICATIOhIS Over a decade of medicinal cannabis industry experience Extensive knowledge of farming, manufacturing and packaging practices in the cannabis industry Commitment to environmental sustainability Experienced personnel manager EXPERIENCE SALES REPRESENTATIVE, HIGHTECH EXTRACTS, LLC WEST COAST, 2017 -PRESENT Generate Leads Build and maintain relationships with lab owners, mangers and operators Educate operators on use of 002 extraction machines and use of CO2 as a solvent Educate lab personnel on software for data tracking CO-FOUNDER, PACIFIC MEDICINALS NORTH BAY, CA 2017 Managed delivery operations Identified and selected best in class vendors and products Managed inventory and vendor meetings Educated patients about cannabis, consumption methods, and products PRODUCT RESEARCH AND DEVELOPMENT NORTHERN CALIFORNIA, 2014-2017 Developed techniques for creating a variety of medicinal cannabis products CULTIVATION SITE MANAGER NORTHERN CALIFORNIA 2012-2016 Managed operations of three Prop 215 and SB 420 compliant medicinal cannabis cultivation sites Monitored and managed biological inputs Built and maintained greenhouses Designed and managed irrigation systems Directed labor teams for harvests, planting and processing MEDICINAL DISPENSARY LIASON NORTHERN CALIFORNIA, CA 2010-2017 Assisted cultivators and manufacturers with brand placement Established and maintained relationships with dispensary and delivery managers and owners Educated dispensary and delivery personnel about products MAINTENANCE ASSISTANT, AEGIS LIVING CORTE MADERA, CA 2011-2012 Performed repairs and preventative work maintained mechanicals and facilities Prepared rooms for new residents including painting, hole repair, etc. Built resident and family satisfaction Assisted residents in crisis EDUCATION ITHACA COLLEGE ITHACA, NY School of Business SANTA ROSA JUNIOR COLLEGE SANTA ROSA, CA Business studies NONESUCH SCHOOL SEBASTOPOL, CA COMMUNITY SERVICE PUBLIC RELATIONS COMMITTEE, SONOMA COUNTY GROWERS ALLIANCE, SONOMA COUNTY, CA 2018 Increase public awareness of issues facing cannabis farmers in Sonoma County Address public concerns about cannabis farming in Sonoma County SAINT VINCENT DE PAUL, SANTA ROSA, CA 2006-2008 Prepared and served meals for the homeless community SKILLS Cannabis cultivation and processing; Cannabis quality control; Business development; Team building and management skills; Creative problem solving and critical thinking. INTERESTS Sustainable farming and agriculture, Cannabis and health, product development, marketing, snowboarding, mountain biking 10 24 i SIJIoIfvlAF]Y OF OUALIFICAT IOf IS Experienced HR manager in the cannabis industry Education professional Effective community and team builder EXPERIENCE HUMAN RESOURCE DIRECTOR, LUCKY 420 SONOMA COUNTY, 2016 -PRESENT Manage payroll Department of labor compliance interpretation and application Point of contact for legal counsel Oversees organizational insurance policies Assist in recruiting process Oversees new employee onboarding Assists director of operations in building positive company culture ACCOUNTING AND ADMINISTRATION, LUCKY 420 SONOMA COUNTY, CA 2016 -PRESENT Oversees processing of accounts payable Assists CEO with maintaining vendor contracts SOCIAL MEDIA MANAGER, LUCKY 420, SONOMA COUNTY, CA 2017- PRESENT Design plan and develop content Collaborate with marketing team Optimize content according to search engine optimization Use content management system to analyze web traffic Ensure compliance with applicable marketing laws JUNIOR PRIMARY CO-TEACHER/PRIMARY TEACHER ASSISTANT, RAINBOW MONTESSORI MILL VALLEY, CA 2011 & 2013.2014 Created a safe, comfortable, and fun learning environment for children Arranged rooms to provide a full range of age appropriate activities to encourage children in advancing their overall development Changed Montessori'Works" weekly Researched catalogs, internet, and other outside resources to create new works Handmade works that were not available JUNIOR PRIMARY TEACHER, LITTLE OAKS MONTESSORI, PETALUMA, CA 2001-2006 Fostered effective, ongoing, communication With parents by providing verbal reports and written notes on children's daily activities Collaborated with coworkers to maintain a "partnership" environment with new and exciting activities Worked in the office managing tuition, Invoices, and all computer problems Maintained children's attention during group time by presenting material in a fun and exciting way Researched new songs, stories, and activities Implemented new activities to stimulate children Including music and movement, Spanish, baby signs, and American Sign Language and gardening Provided after care supervision at Oak' s Montessori Elementary School, the sister school to Little Oaks Montessori EDUCATION MONTESSORI TEACHER EDUCATION CENTER, UNIVERSITY OF CALIFORNIA SAN LEANDRO SAN LEANDRO, CA 2010 Montessori teachers training course: Mathematics, Sensorial, Language Arts, Child Family and Community SANTA ROSA JUNIOR COLLEGE SANTA ROSA, CA 2003 Early Childhood Education, AA SKILLS Planning and organization, community and team building 11 25 d. References Michael Yang, MD Summit Pain Alliance Norman Olson Hightech Extracts 3. Track Record a. Description of company's track record running a cannabis or similar business James and Claire operated a successful cannabis delivery service, Pacific Medicinals. Brian and Murray have operated several consumer product companies with great success. L Description of success, the longevity, and the history of community perception of the business Over the course of just 3 months, Pacific Medicinals grossed roughly $30,000, and serviced approximately 150 patients. Public reviews (selected reviews can been seen on following page), patient comments, and patient retention illustrated the satisfaction of the service, products, and educational information. 12 Patient reviews from ordering platform Nugg: Pacific Medicinals 28 ratings 15.0 We haven't received enough ratings to display accurate rating statistics for this dispensary Every review comes from a verified order. - Rebecca - Nov 28, 2017 10:35Piv1 The dispensary had excellent communication from the second that I placed my order. My delivery driver was friendly and extremely helpful. I've ordered from this dispensary one other time, and I have been beyond impressed with their service both times. Will definitely be ordering from them again. Ir_s, - Emily - Nov 01, 2017 12:511PM Honestly this place is one of the best right now. I will definitely be ordering again! Great service & great product. .lo ig(� Oct 06, 2017 4:49Pfvl Great first experience with nugg and Pacific Medicinal! My contact Claire did a great job all around, great communication and service. Thank you! Brian and Murray worked together to develop Wireless Fulfillment Services Inc. (WFS). WFS was established to provide sourcing and technical support for four national cellular network operators. AT&T Wireless, Sprint, Nextel, and Airtouch Cellular, enlisted WFS to source accessory products for the cellular telephone industry. In addition to providing sourcing services WFS also developed dedicated call centers and e-commerce sites for each of these companies. In addition to identifying appropriate products, each product had to be certified on the networks operating systems and meet strict quality control and performance guidelines. WFS provided complete supply chain management including, packaging and fulfillment services to the end user as well as technical support. In less than two years, the company grew to $100m in annual sales and was able to guarantee next day delivery of as many as 5,000 orders per day. After two years, they were purchased by Brightpoint Inc, a fortune 500 company and the world's largest seller of wireless products. 13 27 Each member of the operating team has submitted a Livescan request with the Petaluma Police Department. 1. Business Plan a. Description of business plan FAM will provide delivery services and high-quality cannabis, cannabis -infused products and other locally crafted products to patients and retail customers. All products we distribute must first pass our rigorous internal inspections as well as all legally required laboratory testing before being provided to customers. We will select products based on origin, cultivation and processing methodologies as well as the quality and safety of the packaging. We will have an emphasis on locally cultivated and manufactured goods from Petaluma, Sonoma, Mendocino and Humboldt counties and we will only carry brands that are using best practices regarding ecological and health impacts. In addition to a focus on local, and ecologically mindful producers, FAM will work with small businesses to provide access to small -batch, artisan produced lines. FAM will also deliver non -cannabis craft goods produced in Petaluma, creating a new marketplace for local producers to showcase their products in light of the emerging cannabis and cannabis tourism industries. FAM's primary target customers are those interested in the farm to table movement, including baby boomers and young professionals. We will provide a high-end craft experience for the discerning customer base with high rates of disposable income. FAM has cultivated a unique brand to distinguish itself from other cannabis retailors that is based on our commitment to sustainable farming and a healthy lifestyle. The brand speaks to the urban and rural aspects of Petaluma with encouragement to shop local and support local farmers. We will reach new customers using a combination of online and offline techniques, including cannabis marketing platforms, local business cross promotional events, and regional print media. We will have loyalty programs with referral incentives and daily, weekly, and monthly promotional specials which will be disseminated via text, email, the online marketing platforms, our website, and our mobile app. We anticipate that these methods will allow for a steady increase of an average of at least one order per day on a month to month basis. This growth rate will allow us 14 28 to maintain consistent delivery times and superior customer service, required for customer retention and lowering the cost of customer acquisition. b. Description of how we will get products that we will sell FAM will get all cannabis products from licensed distributors and other licensees able to transport goods under California laws. We have maintained relationships with licensees and have an established supply chain. We will reach out to Petaluma producers for non -cannabis products, to be delivered to the warehouse. New inventory will be delivered to the warehouse and the intake process will be managed by Claire and James using manifests and inventory software to accurately provide reports to California's track and trace system, METRC. c. Evidence that proposer either owns sufficient property to conduct proposed business or has owner consent to conduct business on their property It is our understanding based on conversations with city staff, that our project may be approved prior to identifying and acquiring a parcel and that the permit can be issued contingent upon said acquisition. We have encountered unusual barriers in our property acquisition process due to the uncertainty of the RFP process. However, we are confident that in concert with the professionals working with us, that we will be able to identify an appropriate property within three months of selection. 15 Clear Blue' To: City of Petaluma Date: April 2, 2018 To whom it may concern, I have been assisting Claire Firestone and James W. Clark in finding a location for their cannabis delivery service in Petaluma. Their professionalism and patience have been impressive. Their business will be an asset to our community. I am confident that we will be able to secure a space once they are granted a permit from the city. Claire and James are willing to address their property owner's concerns and invest in the process. They are prepared to do so. Thank you for your consideration. Please feel free to contact me should you have any questions or require further clarifications. Sincerely, Ben Ben Goldman Agent License # 01106590 Real Community. Real Service. Real Estate. 16 30 d. Description of hiring plan and continuing education of staff FAM recognizes that human resources are an extremely important asset. Hence, we will screen new applicants very carefully including in-person interviews, detailed nationwide and statewide criminal history screenings and reference checks. We will review each employee's performance regularly, and when possible, promote from within. Our salaries and benefit packages will be competitive with those offered by similar businesses operating in our area. Our plan is to not only supply local citizens with positions, but enable them to have successful, fulfilling and long-lasting careers while showing the community that we can take their sons and daughters and mold them into career professionals in the expanding medical and adult use cannabis industry. Using the founders' extensive knowledge and history of working with educational and professional organizations, the company will provide a rich environment of education that will not only benefit the employees, but also our customers and the local community as we learn and develop the future together. All new employees will be provided with handbooks and all relevant literature required by state and federal employment laws and will go through trainings developed internally and by organizations that develop cannabis retail specific modules. Ongoing training sessions will be provided before delivery hours or at the beginning of shifts by James, Claire, or vendors so that all staff is up to date and informed about current products, innovations, and scientific discoveries. 2. Operations Proposal a. Description of how the business will function on a daily basis i. Who will staff the phones and warehouse Claire will be responsible for answering incoming phone calls and online orders. She will also oversee the packing of orders and track inventory in the warehouse when James is out on delivery. All orders will be placed in exit packages in the warehouse by Claire, James or a courier with a second check performed by Claire or James and verified by inventory management software. ii. Who will oversee deliveries James Clark and Claire will oversee and assist with deliveries. Claire will assign deliveries to individual couriers based on regional mapping of placed orders, using delivery management software. James will also complete deliveries when necessary. 17 31 iv. How customers will discuss their needs and concerns with staff Customers will be able to speak directly with the delivery drivers at the time delivery. If a customer has questions about products or services prior to ordering or after the delivery has been completed, they will be able to reach Claire via the phone, a direct instant message through the online store or via email. b. How products will be delivered At startup, there will be 3 company owned Priuses. The delivery coverage area, at startup will include Sonoma and Marin Counties, with expected growth to Napa County by the end of year one. Two couriers employed by Farmhouse Artisan Market and James will complete deliveries, with an additional courier to be added at month 11 of year one to address additional delivery load. Deliveries within Petaluma will be given priority, Real-time ETA's will be provided to the customer when they place an order. The map below depicts general anticipated delivery time windows. We will be using dispatch and ordering software that will not allow orders to be placed for addresses that are too far away from the warehouse for the delivery to be completed (with the courier back at the warehouse) by 7:30 pm. In the case that a customer calls to place the order, we will input the address into the software to ensure that all operations will be completed before 8pm. 34 32 D Gualala Sea Ranch Cloverdale Hidden 'galley Lake 101 Middletown Geyserville 29 Napa Guir 1 1 MAP KEY 30-15 uii'lutes '15-1 110111 I-) 11uogs 1-3 hmiis scheduled dej)1 'nding on �:ouiiei availability Deliveries will be added to the queue of a driver based on location and efficiency. Most orders will be assigned and packaged while the courier is in the warehouse, however there will also be products placed in exit packages of promotional combinations that will allow drivers to fulfill incoming orders more quickly. During rush hour or peak delivery times, patients and customers will have the option to choose between a custom order and a promotional package, which will have differing ETAs listed when placed. into the cart. As soon as the delivery queue is completed, the couriers will return to the warehouse. Inventory will be checked upon arrival, and any cash will be given to Claire or James. The first hour of the day will be dedicated to inventory management, done by James and Claire. We will prepackage any promotional items, and begin route planning for incoming orders. 35 33 James or Claire will be in charge of intake of incoming inventory and all items will be scanned and entered into the inventory management system. All drivers will be back by 7:30pm to return vehicles and place all undelivered inventory (in the event that all promotional items were not ordered or if the customer was not reachable upon delivery attempt) back into the warehouse. All cash and inventory will be placed in safes before the doors are locked. c. Community outreach Farmhouse Artisan Market will partner with local venues to host educational workshops. Healthcare professionals and industry expert speakers will be invited to speak on a variety of topics such as the endocannabinoid system, micro - dosing, intake methods, and other topics related to safe cannabis use. A portion of the revenue of these events will be donated to public outreach for adolescent substance abuse education. FAM is dedicated to the mission of lowering the rate of adolescent substance abuse and will organize educational events specifically targeting adolescents and their parents on the risks of substance abuse. We will collaborate with the local hospice and palliative care organizations to provide access for their patients to cannabis based therapies. d. Job creation, proposed pay scale and community benefits Farmhouse Artisan Market will initially create 3 full time courier positions, and 7 part-time positions paying $17/hr. With additional positions opening through years one and two with a full capacity of 7 full time and 18 part-time couriers by year 3. FAM is committed to supporting Petaluma's goals of creating a diverse and vibrant job market. FAM is committed to the Petaluma community and will make annual contributions to Petaluma public safety departments and substance abuse rehabilitation programs. In addition, FAM will work with hospice, palliative care and veteran groups to provide low cost access to patients in need. 36 34