draft request for permit application for cannabis facilities

8/8/2019 Draft Request For Permit Application for Cannabis Facilities

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"f "'"ra%' ^TY OF OAKLAND.M - m A G E N D A R E P O R T

2 8 1 0 N O V - U P l= l ' = " 'T O : Office ofthe City AdministratorATT N: Dan LindheimFROM : Arturo M. SanchezDATE: November.9,2010R E : Committee Recommendations on2"*" Addendum toAction on a repor t regardingproposed Request For Permit Applications (RFPA) to operate a Medical CannabisCultivation Facility Pursuant to Oakland Municipal Code Chapter 5.81SummaryOn October 26, 2010 The Oakland Public Safety Committee directed staffto revise the draftRequest for Permit Applications (RFPA) to reflect the following changes:

> Recom mended not to prohibit any pre-existing unpermitted large scale cultivatorfrom applying for a permit through the RFPA process.> . Recommended Option B for permit fee payments:

o The Annual Permit Fee in the amount of $211,000 will he due in fou r quarterly installments of $52,750 due upon issuance ofthe permit and^ ' every fou r months immediately thereafter. Failu re to pa y a fee installmentwithin five (5) days o fthe due date, as set for th in the permit, will be abasis for immediate revocation ofth e permit.> Set the local owned percentage to 40% in the Labor and Employment bo nussection> Accepted Sta ffs recommendation raising the business plan points to 600 pointsand capitalization points to 300

The corrunittee also asked staffto address the question of whether all employees and ownersneed to be either patients or patient care givers.The AG's Guidelines state that cultivators, distributors and transporters need to be qualifiedpatients or primary caregivers, particularly since the defenses for possession and cultivationprovided under the Compassionate Use Act applies only to qualified patients and primarycaregivers. A few relevant excerpts from the AG guidelines are provided below:The [CUA] further states that "Section 11357, relating to the possession of marijuana; andSection 11358, relating to the cultivation of marijuana, sh all n ot a pp ly to apatient, or to apatient's primary caregiver, who possesses or cultivates marijuana for the personal medicalpurposes ofthe patient upon the written or verbal recommendation or approval of a physician."( 11362.5(d).) Courts have found an implied defense to the transportation of medical marijuana

Item:Oakland City CouncilNovember 9, 2010


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Dan LindheimRequest For Permit A pplications forMedical Cannabis Cultivation Facility Page 2when the "quantity transported and the method, timing and distance ofth e transportation arereasonably related to the patie nt's current m edical needs." {People v. Trippet (1997) 56Cal.App.4th 1532, \55\.), Attorney General Guidelines, p. 2.[OJnly marijuana grown by a qualified patient or his or her primary caregiver may lawfully betransported by, or distributed to, other mem bers of a collective or cooperative. ( 11362.765,11362.775.) Attorney G eneral Guidelines, p . 10.Instead, the cycle should be.a closed circuit of marijuana cultivation and consumption with nopurchases or sales to orfi omnon-mem bers. To help prevent diversion of medical marijuana tononmedical m arkets, collectives and cooperatives should document each mem ber's contributionof labor, resources, or money to the enterprise. They also should track and record the source oftheir marijuana. Attorney G eneral Guidelines, p. 10.Possession and Cultivation Guidelines: If a person is acting as primary caregiver to m ore thanone patient under secfion 11362.7(d)(2), he or she mayaggregate the possession and cultivation limits for each patient. For example, applying theMMP's basic possession guidelines, if a caregiver is responsible forthree patients, he or she may possess up to 24 oz. of marijuana (8 oz. per patient) and m ay grow18 mature or 36 imm ature plants. Similarly, collectives andcooperatives may cultivate and transport marijuana in aggregate amounts tied to its membershipnum bers. Any patient or primary caregiver exceeding individualpossession guidelines should have supporting records readily available when:a) Operating a location for cultivation;b) Transporting the group's medical marijuana; andc) Operating a location for distribution to members ofthe collective orcooperative. Attorney G enera l G uidelines, p. 10.All changes m ade to the RFPA are underscored for the ease of review.

Respecti

yArJur^/M. SamAssistant to/ne Cijy^dministratorFORWARDED TO THB

CITYCOUNCIL:

the City Adm inistrator

Item:Oakland C ity CouncilN n v p m h p . r Q 9 0 1 0
http://cal.app.4th/http://cal.app.4th/


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REV ISED 11/09/10 Page 2 of 43

I N T R O D U C T I O NThis R equest for Permit Applications (RFP A) is issued by the City of Oakland to identifyqualified firms or individuals (Permittees), and solicit applications, to engage in MedicalCannabis Industrial Cultivation And Processing in order to provide safe and adequateaccess to patients, patient care givers, and dispensaries for medical Carmabis. Apph cantswill compete for one (1) of four (4) available Permits to conduct large scale cultivation ofCannabis in the City of Oakland. Selected Perm ittees will be required to com ply withoperating standards, regulations, and reporting requirements as identified by the CityAdm inistrator or her/his designee.

BACKGROUNDThe Statewide Cannabis MovementOn Nov. 6, 1996 Proposition 21 5, the California Com passionate Use Act, was enacted bythe voters (Cah fomia Health & Safety Code 11362.5). The law makes it legal for patientsand their designated prim ary caregivers to possess and cultivate cannabis for theirpersonal medical use given the recomm endation or approval of a licensed ph ysician. Thiswas expanded through SB 420 on January 1, 2004 to (i) allow patients to form medicalcultivation "collectives" or "cooperatives"; (ii) establish a v oluntary state ID card systemrun through county health departments; and (iii) establish guidelines or safe harbors as toquantities patients can possess and cultivate, protecting legal patients who stay within theguidelines from arrest.The Reg ulate, Control and Tax C aimabis Act, on the California ballot this Novem ber,would legalize adult recreational cannabis in Cahfomia, but give localities discretion toallow, regulate and tax production and distribution.Medical Cannabis in OaklandOn February 17, 2004, the City of Oakland adopted Ordinance No . 12585 C.M.S.,permitting d istribution of m edical cannabis to authorized patients through four licenseddispensaries. The City process for administering these Permits and monitoring thedispensaries is considered successful, and has become a role model for the nation. In June2009, Measu re F, which taxed O akland's medical cannabis dispensaries, passed in aspecial election by 8 0% with no formal opposition, indicating recognition ofth edispensa ries' role in providing a legitimate service to the comm unity.W hile Oakland, and for that matter the State, has created a method for dispensing medicalcannabis, there is no established structure for its production, growth and cultivation.This, combined w ith the City of Oa kland 's low priority enforcement policy, has made itdifficult for OPD to regulate production within the structure of dispensary collectives.


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DRAFT DRAFTREV ISED 11/09/10 Page 3 of 43On July 27, 2010 the Oakland City Council Adopted Ordinance No.l3033 C.M.S.creating a regulation and permit process to designate four large-scale Medical CannabisIndustrial Cultivation and Processing Facilities. The purpose was to provide a framew orkfor the regulation of large-scale medical caimabis cultivation that would address thepublic health, safety, and economic impacts currently not accounted for within the city'smedical caimabis system.Num ber of PermitsTo balance the objectives of sufficient scale and ease of implementation, the City Councilapproved four (4) Medical Cannabis Industrial Cultivation And Processing FacilityPermits in the interim phase ofth e program. Following the first year of implementation,the City Administrator is to return to Council with a review of the performance andimpact of cultivation, production, and manufacturing under the ordinance. Councilwould then have the option of developing a permanent ordinance and issuing additionalPermits based on a determination of whether market demand for m edical caimabis issufficient to absorb further production, and whether the issuance of additional Permitswould serve the interests oft he City.

D E F I N I T I O N SThe following w ords or phrases, whenever used in this RFPA and attached regulations,shall be given the following definitions:A. "A eropo nics" is the process of growing plants in an air or mist environment withoutthe use of soil or an aggregate medium (known as geoponics). The word "aeroponic" isderived from the G reek meanings of "aero" (air) and "ponos" (labour). Aeroponic culturediffers from both conventional hydroponics and in-vitrb (plant tissue culture) growing.Unlike hyd roponics, which uses water as growing medium and essential minerals tosustain plant growth, aeroponics is conducted w ithout a growing medium .B. "Ap plicant" as used only in this Chapter shall be any individual, firm, co operative,association, collective, or corporations that applies for a Medical Cannabis IndustrialCultivation And Processing Facility permit via the RFPA process described herein.C. "Batc h" as used only in this Chapter shall be defined by C ity Administrator to mean adiscrete quantity of dried cannabis, produced and sold together.D. "Cannabis" or "Marijuana" as used only in this Chapter shall be the same, and as maybe amended, as is defined in Section 8.46.020.E. "Cannabis Dispensary" as used only in this Chapter shall be the same, as is defined inSection 5.80.010, as it ma y be amended, and is also referred to herein as "dispensary".


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DRAFT DRAFTREV ISED 11/09/10 Page 4 of 43F. "Carbon neutrality" having a net zero carbon footprint, refers to achieving net zerocarbon em issions by balancing a measured amount of carbon released with an equivalentamount sequestered or offset, or buying enough carbon credits to make up the difference.G. "Carbon Sequestration" is defined as Th e process of removing carbon from theatmosphere and depositing it in a reservoir. It may also be a geoengineering technique forlong-term storage of carbon dioxide or other forms of carbon to mitigate global warming.It has been proposed as a way to mitigate accumulation of greenhouse gases in theatmosphere, which are released by burning fossil fuels.H. "C ity Adm inistrator" shall mean the City Adm inistrator for the City of Oakland.1. "Small Collective" is any association. Medical C annabis Association, cooperative,affiliation, or collective of persons where three or less "qualified patients" and/or"primary care givers", in possession of an identification card, or written recommendation,issued by the county of Alameda, or the state of California, or another agency recognizedby the city of Oakland pursuant to California Health and Safety Code Section 11362.7 etseq, collectively or cooperatively join to provide education, referral, or network services,and facilitation or assistance in the lawful production, acquisition, and distribution ofmedical cannabis.J. "Cultivation Area" as used only in this Chapter hereinafter shall mean the actual area inuse for the entire cultivation process of cannabis plants (including seedling production,vegetation, and maturation), as well as reasonable walking space, such that, for exam ple,two trays used for maturation, each measuring 10 square feet and stacked vertically ontop of each other shall be counted as 20 square feet of cultivation area.K. "Efficient Energy U se, sometimes simply called Energy E fficiency" m eans using lessenergy to provide the same level of energy service. For example, insulating a homeallows a building to use less heating and cooling energy to achieve and maintain acomfortable temperature. Efficient energy use is achieved primarily by means of a moreefficient technology or processes rather than by changes in individual behavior.L. "Excessive profits" means the receipt of consideration of a value substantially higherthan the reasonable costs of operating the facility.M. "Hydro ponics (From the Greek words hydro, water and pon os, labor)" means amethod of growing p lants using mineral nutrient solutions, in water, without soil.Terrestrial plants may be grown with their roots in the mineral nutrient solution only or inan inert medium, such as perlite, gravel, mineral woo l, or coconut husk.N. "HVAC" is an acronym that stands for the closely related functions of "Heating,Ventilating, and Air Conditioning"the technology of indoor or autom otiveenvironmental comfort. H VA C is particularly important in the design of medium to largeindustrial and office buildings such as skyscrapers and in marine environments such as


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DRAFT DRAFTREV ISED 11/09/10 Page 5 of 43aquarium s, where safe and healthy building conditions are regulated with tem peratureand humidity, as well as "fresh air" from outdoors.O. "Industrial Cannabis Cultivation, Processing, Manufacturing Facility" hereinafter"cultivation and manufacturing facility" shall mean any facility used by any association,medical cannabis association, cooperative, or collective, or other entity authorized underor the state of California, or another agency recognized by the City of Oakland pursuantto California Health and Safety Code Secfion 11362.7 et seq., and in conformance withCalifornia and local law, for the possessing, cultivating, growing, processing, and/ormanufacturing of cannabis in an area greater than more than ninety six (96) square feet ofcultivation area, and/or possessing more than forty-eight (48) ounces of dried processed,and/or packaged C armabis, in One Parcel of Land, for subsequent transfer to one or morelawful medical cannabis dispensary that supplies medical cannabis to qualified patients orprimary caregivers. Any establishment engaged in, permitted to be engaged in orcarrying oh any m edical cannabis cultivation, processing, or manufacturing or otheractivity men tioned, other than a small co llective, shall be deemed an Industrial CannabisCultivation and Manufacturing Facility as described in section 5.81.040.P. "Leadership in Energy & Environmental Design (LEED)" is an internationallyrecognized green building certification system, providing third-party verification that abuilding or com munity w as designed and built using strategies intended to improveperformance in metrics such as energy savings, water efficiency, C 0 2 emissionsreduction, imp roved indoor environmental quality, and stewardship of resources andsensitivity to their impacts.Q. "Light Manufacturing Industrial or their equivalent use" shall be defined to includeareas where medical services, research services, crop raising, cultivation, and agriculturalactivities are permitted or conditionally permitted in the area where the Applicantsproperty is located.R. "Lo cal" - means residing in the Oakland City limits.S. "Medical caimabis collecfive, associafion, or cooperative" shall be the same as isdefined in OMC 5.80.010, and as may be amended.T. "Primary caregiver" as used only in this Chapter shall be the same as is defined inOMC 5.80.010, and as may be amended.U. "Qualified patient" as used only in this Chapter shall be the same as is defined inOMC 5.80.010, and as may be amendedV. "Serious medical condition" shall have the same definition as California Health andSafety Cod e Secfion 11362.7 et seq, and as rnay be amended, inc luding but not limited to:1. Acquired im mune deficiency syndrome (A IDS);


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DRAFT DRAFTREV ISED 11/09/10 Page 6 of 43

2. Anorexia;3. Arthrifis;4. Cachexia;5. Cancer;6. Chronic pain;7. Glaucoma;8. Migraine;9. Persistent muscle spasms, including, but not limited to, spasms associated withmultiple sclerosis;10. Seizures, including, but not limited to, seizures associated with epilepsy;11 . Severe nausea;12. Any other chronic or persistent medical symptom that either:

a. Substantially limits the ability ofth e person to conduct one or moremajor Hfe acfivities as defined in the Am ericans w ith Disabilifies Act of1990 (Public Law 101-336); orb. If not alleviated, may cause serious harm to the patient's safety orphysical or mental health.

W. "Written recommendation" as used shall be the same as is defined in OMC 5.80.010,and as may be amended.X. "Zero W aste" a philosophy that encourages the redesign of resource life cycles so thatall products are reused. Any trash sent to landfills is minimal. The process recommendedis one similar to the way that resources are reused in natures. In industry this processinvolves creating commodities out of traditional waste products, essentially making oldoutputs new inputs for similar or different industrial sectors.

P U R P O S EThe purpose of this Request for Permit Applications, hereinafter RFPA is to solicitapplications for large scale Medical Cannabis Industrial Cultivation And ProcessingFacility Perm its. Please be advised that no CuUivator. awarded a permit by the City, mavoperate for profit. The City of Oakland is seeking in particular submissions that identify


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DRAFT DRAFTREV ISED 11/09/10 Page 7 of 43the best "green" cultivation practices, while employing "sustainable" energy and wastesolutions, and implement the "best practices" available in the agricultural and industrialcultivation arenas. The best submissions will be forward thinking and deploy solutionsdesigned to reduce and address any actual or potential concern the City may have.ApplicationAll Applicant groups will be required to submit an application form, with requiredattachm ents, and non refundable application fee of $5,000. Attachm ents to applicationwill include, but may not be limited to;U Address of proposed facility for mapping purposes (Staff will work withplarming department to map proposed site). Facility must be located in an areazoned for Light Manufacturing Industrial or its equivalent uses as defined herein:2) Articles of Incorporation and Bylaw s which h ave been previously filed with the

State of Cahfomia;3) Live scan submission for all business partners and managers operating thefacility;4) Business Plan;5) Building and Construction Plan;6) Security Plan:7) Fire prevention plan;8) Environmental Plan:9) Proof of Capitalization:10) Proof of Insurance:Complete applications submitted by the deadline will all be redacted, assigned areference number, and submitted to a panel of subject matter experts in the fields ofbuilding/construction, business development, revenue. Fire, public safety, andenvironmental p lanmng , with Special Business permit staff acting as a second reviewerof all applicants. Sta ffs review w ill be conducted in a blind manner with no reviewerknowing the identity ofthe applicants.Please Note:1) Incom plete submissions will not be considered; and2) Applications will be imm ediately determined "null and void" if they do notcomply with location requirements (i.e. they are located outside light industrialareas or areas specifically authorized in RFPA).3) Pu rsu ant to Public Safety C ommittee action on 10/26/10 prohibitions on who canapply for a perm it have been removed.

PHASE !Business Plan Submission & Review


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DRAFT , DRAFTREV ISED 11/09/10 Page 8 of 43

In addition to the documents and m inimum standard requirements required for the filingoft he Application the RFPA w ill consider seven (7) key components and three (3)categories for bonus points. Staff will review all applicants, who have submitted allrequired docum ents in a timely manner, based on the seven (7) central categories duringthe PHAS E I review proce ss. The top ten (10), e.g. highest scoring applications, basedon seven (7) m ain categories will move on to Phase 2 where the bonus po ints will beallocated. Scores will be based on an Applicants ability to present the followinginformation:1.2.3.4.5.6.7.

Business PlanBuilding Construction - Plans and ScheduleSecurity PlanFire Protection PlanEnvironmental PlanCapitalizationCommunity Benefits Plan

The top ten (10) highest scoring applicafions will proceed to Phase II.

PHASE HBonus Point AllocationsThe top ten (10) Applicants will move on to Phase II scoring and examinafion. EachAp plican t's submission w ill be reviewed to determine a score based on three (3) bonuspoint categories. An A pplicants score for bonus points will be based on their ability toexceed and excel minimum requirements in the three (3) categories. The App licants mustprovide information on how they plan to meet these bonus point categories. Such actionswill become a mand atory condition of their permit. Failure to meet or comply with suchrequirement w ill subject the Permittee to penalties and/or revocation proceed ings. Thethree (3) bonus point categories are as follows:1. Labor & Em ployment Pracfices2. Environmental Mifigations3. Product SafetyConcurrent with the assessment of bonus points on the 10 Applicants staff will schedulean examination which will be used as a component of Phase II scoring.ExaminationAll ten (10) finahsts will be required to designate a member applicant to take a CannabisCultivation Facility exam. The mem ber applicant should be a managing member ofth e


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DRAFT DRAFTREV ISED 11/09/10 Page 9 of 43Ap plican t's C ollective. In instances where there will be sub lessees, the City reserves theright to require a managing mem ber of any sub lessee to take the exam as well.The exam will test the applicant's familiarity with Oakland and California law, as well asthe Attorney Gener al's guidelines on Medicinal Cannabis. Scores will be added tooriginal score total, bonus points, and the four (4) Applicant awardees will be selectedbased on total number of points.The four (4) aw ardees will then be required to go through a public hearing.Public HearingThe four (4) awardees facilities will be subiect to a pubh c hearing noticed to thecomm unity wh ere the proposed facility is located. Prior to public hearings, all proposedfacility sites will be inspected bv a building official to ascertain current condition offacility. The com munity will be allowed to present concerns and/or support and provideadditional considerations for potential permit conditions that will be created by staff. ThePublic H earings will not be used to determine wh o gets the permit but merely to informstaff of potenfial concerns for which a condition may be necessary to address. Hearingdecisions, recommen dations, and conditions will be based primarily on com mun ity input,site inspection results, business feasibility, and the viability ofthe proposed location-Permits would be issued February/March 2011.Permit FeesThe Public Safety Com mittee elected O ption B regarding permit feesThe Annu al Permit Fee in the amount of $211.000 w ill be due in four quarterlyinstallments of $52,750 due upon issuance ofthe permit and every four monthsimm ediately thereafter. Failure to pay a fee installment w ithin five (5) calendar days ofthe due date, as set forth in the perm it, will be a basis for imm ediate revocation of th epermit.

S U B M I T T A L R E Q U I R E M E N T SPlease submit one (1) copy ofth e completed proposal and transmittal letter to the CityAd min istrator's Office, Special business Permit Division, 1 Frank H. Ogaw a Plaza, 11'^Floor, Oakland, CA 94612 , no later than 5:00 p.m., TB D 201 1. The Cityreserves the right to accept or reject any or all proposals received not received on fime,without appropriate attachments, or submitted at the incorrect location.All proposals submitted via US Mail or common carrier must be delivered in a sealedpackage and must reference the RFPA, Apphcaht's location, submittal date, time andlocation of the proposals on the outside of the package or the documents mav not beaccepted.


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A. Required Proposal Elements And Format1. Transmittal Letter

a. Addressed to Mr. Arturo M. Sanchez, Assistant to the City Adm inistrator,Special Business Permits Division.b. Signed by an officer ofthe Applicant Corporation, Association, Cooperative,or Collective and who is a Patient/Patient Care giver member. In case of jointventure or other joint-prime relationship, an officer of each venture partnershall sign.

2. A letter from Managing Partner or officer of the Applicant Corporation,Association. Cooperative, or Collective stating under penalty of penury that theyhave personal knowledge ofthe information contained in the application and it istme and correct and submitted under their supervision.3. Applicant Business Plan In addition to information described below in thecategories section of the RFPA, a business plan must contain the followinginformation:

a. In response to this RFPA, identify the primary contact/applicant who is and shallbe a patient/patient care giver as defined pursuant to the Cahfomia Health andSafety Code.b. Include articles of incorporation, and/or documentation establishing valid

Cooperative, Association, or Collective in conformance with the AttorneyGen eral's guidelines, as well as corporation bylaws.c. Include Sub-lessee/contractor: In instances where the proposed business includessub-lessee Dispensaries, Cooperatives, Associations, or Collectives list addresses,telephone numbers and qualifications as patient/patient care giver for each sublessee entity. Briefly describe the project responsibility of each team mem ber.All managing m embers will be required to go through Live Scan process.d. Clearly identify proposed site, its conformance with site requirements asmandated by the ordinance and this RFPA, and provide proof of ownership,lease, and or letter of landlord's commitment to lease upon issuance of a permit tothis site.e. Identify all proposed managers and executives of the business and submit LiveScan applications for each person identified.

B. Submit all ofthe following documents with your proposal.1. Proo f of Insuran ce2. Building and Construction - detailed description


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3. Security Plan - detailed description4. Fire Plan - detailed description5. Environmental Plan6. Proo f of Cap italization7. Community Benefits Plan

C. A proposal will be rejected for any oft he following reasons:1. The proposal is delivered to the wrong location by TB D 2010 at

5:00 p.m. local time;2. The proposal is received at designated location after designated time;3. The proposal is not in compliance with the City of Oaklan d's RFPA requirementsand/or any ofth e required Schedules are missing, proposed A pplicants fail tosubmit all eligible member m anagers for Live Scan background check byapplication deadline;4. The proposal does not contain the required elements or is not organized in therequired format;5. The proposal contains a d isclaimer;6. Incomplete submissions will not be considered; and7. Applications will be immediately determined "null and void" if they do notcomply with location requirements (i.e. they are located outside light industrialareas or areas specifically authorized in RFPA).

Once the final award is made, all RFPA responses, except financial and proprietaryinformation, become a matter of public record and shall be regarded by the City as publicrecord s. The C ity shall not in any wa y be liable or responsible for the disclosure of anysuch records or portions thereof if the disclosure is made pursuant to a request under thePublic Records A ct or the City of Oakland Sunshine O rdinance.

E V A L U A T I O N O F P R O P O S A L SGen eral Criteria ^Applicafions for the Medical Cannabis Industrial Cultivation and Processing FacilityPermits received by the deadline set forth above will be reviewed for completeness.Application will be voided if Applicant fails to submit all ofthe required information,including but not limited to: 1) Address of proposed facility for mapping purposes (Staffwill work w ith planning department to map proposed site). Facility must be located in anarea zoned for Light Manufacturing Industrial or its equivalent uses as defined herein; 2)Articles of Incorporation and Bylaws w hich have been previously filed with the State ofCalifornia; 3) Live scan submission for all business partners and managers operating the


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DRAFT DRAFTREV ISED 11/09/10 Page 12 of 43facility: and 4) Business Plan: 5) Building and Construction Plan; 6) Security Plan: 7)Fire prevention plan: 8) Environmental Plan: 9) Proof of Capitalization; and 10) Proof ofInsurance.The best submissions will be forward thinking and deploy solutions that identify the best"green" cultivation practices, while employing "sustainable" energy and w aste solutions,and implement the "best practices" available in the agricultural and industrial cultivationarenas designed to reduce and add ress any actual or potential concern the City may haveregarding the environment or product safety.No late subm issions will be accepted. Incom plete submissions will not advance to PhaseI consideration and will be voided.

1. All prop osals will be evaluated by a pane l which ma y include City staffand other parties, such as security experts, with expertise or experience inbusiness, fire inspection, police and Com munity Po licing ThroughEnvironmental Design (CPTED), Revenue, Nuisance, Building andCon struction design. The panel will rank and score all com pleteapplications in their respective areas of expertise. The evaluation oft heproposals shall be within the sole judgm ent and discretion oft he panel.2. Proposals will be num erically ranked. The top ten (10) proposals will besubmitted in rank order to the City Ad min istrator's designee for bonu spoint allocation, examination, and determination ofth e four (4) awardees.3. A public hearing will be held for the four (4) awardees. upon completion

of hearing a permit will be issued with appropriate conditions andPermittees may proceed with implementation.Specific CriteriaA. The following specific criteria will be used in evaluating and rating the proposals:

1. Overall quality of the proposal including responsiveness and conformanceto RFPA requirements for content and format;2. Quality and appropriateness of proposed App licant team, professional;experience and background of prime A pplicants and key sub lessees andconsultants;3. Appropriate personnel policies and other key personnel w ith requiredexperience and skills relevant to this project;4. Appropriateness project location;5. Prime A pplicants experience and ability to manage operations of proposedfacility, scheduling of work and implementation necessary to operate, costestimating and budget management;


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DRAFTREV ISED 11/09/10 Page 13 of 43

6. Primary makeu p of applicant entity board, and proven ability to work withlocal government agencies;7. Quality and approp riateness of business mo del, organization , and their

knowledge and experience in working with specific legal codes andregulations.8. Ap plican t's use and implemen tation of "sustainable" energy and wastesolutions, "best practices" available in the agricultural and industrialcultivation arenas, and deployment of solutions designed to reduce andaddress any actual or potential concerns ofth e City and its residents.

B. Subm issions w ill be reviewed to determine ho w the applicant meets the followingseven (7) major categories.

C A T E G O R I E S F O R A P P L I C A T I O N1) Overall Business Plan - Each applicant should submit a business plan generallydescribing their business m odel and plans. Plans will provide a description of proposedoperation and com pletely detail the overall make up oft he corporate entity that will beoperating pursu ant to the permit. Each plan should detail and articulate all scope of workproposed, partnerships, property and location, relationship to owner, and provide as muchdetail as possible into the day to day operation ofthe facility. The plan should identifytypes of cultivation that will be conducted aeroponics, hydroponics, greenhouse, as wellas whether facility will be organic, and provide a copy of their Integrated PestManagem ent (IPM ) Plan. Business plan should also identify how clients, purchases, andproduct will be tracked and monitored. Applicants should identify m ethods and mannersin which they will provide information required by the City to track product in order toprevent diversion. The plan should also articulate how Applicants business will conformto the regulations o fth e City of Oakland and the State of California, including but notlimited to operating as a not for profit entity or other accepted business model asrecognized by the Attorney general's guidelines.2) Building and Construction - Applicants should submit a narrative outlining theelements of proposed construction and improvem ents; timeline for proposed constructionand improv ements; detailing type and numb er of anticipated building and constructionpermits that may be required and factoring in time for acquiring building andconstruction p ermits into implementation schedule. Any proposed public right of wayimprovements for access and safety of employees and customers shall be clearlyidentified; proposed sewer improvements that may be deemed necessary to meetdemand s of proposed facility; proposed sidewalk im provements (if any); proposed trafficengineering improvements anticipated to be needed to mitigate impact to traffic and orneighborhood; propo sed lighting improvem ents designed to improve visibility and safetyin conjuncfion with overall safety and fire plan. Reviewers recognize that these items


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DRAFT DRAFTREV ISED 11/09/10 Page 14 of 43ma y be subject to change o nce permit applications are submitted to building services.Such im provemen ts will be a significant element to a winning proposal if facility islocated in an existing industrial area with aging infrastructure.If the facility is already constructed then proof that work was done with such buildingand construcfion permits and approved by building services (if possible), all construction(new or existing) should meet building code. All facilities will be subject to initialinspection for viability by building official.Attached to narrative should be a copy of design plans which include diagrams ofproposed construction, electrical, plumb ing, fire and security elem ents.No te: Submission of these plans to staff via this RFPA proce ss does not in anyway waiveor remove the requirement o f eventual perm it awardees to apply for and receive permitsfor any and all construction including electrical, plumbins, fire, an d any other perm its asmav be deemed necessary by the relevant department in charg e of said perm its. No r doesit suarantee that plans submitted via this RFPA will meet the standards and requirementsof those perm ittins asenc ies. All perm it awa rdees w ill still be required to complete allthe permitting proc esses for the proposed construction of their facility.3) Security Plan - Ap plicants should prov ide a detailed description of their security planthat includes an assessment of site security by a qualified security consultant, thisassessment m ay be required every two years prior to renewal of any permit aw arded. Thefollowing items are broken down into operational and facility security categories.Appropriate plans will have considered all potential security threats and planned for anyconting ency needed for these situations. A successful App licant will have both writtenand physical mech anism s in place to deal with each specific situation . A detailedschematic diagram of alarm systems and placements that also details by when all securitymeasures will be operational w ill be required.

Operational SecurityApp licants will detail their operational security including but not limited to generalsecurity policies for the facility, employee specific policies, training, sample writtenpolicies, trmisactional security, visitor security, 3 * part contractor security, and deliverysecurity. Th is list is not intended to fully captu re all areas for applicant con sideration bu tto guide applicants into thinking about all possible security concerns related to theoperation of a cultivation facility. Op erational portions of a security plan will be scoredbased on the level of consideration applicant has given to every possible scenario andresponse to scenario.

Facility SecurityApp hcants should provide a description and detailed schematic ofth e overall facilitiessecurity. In particular the applicant should address ingress and egress access, perimetersecurity, product security (at all hours), internal security measures for access (area


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DRAFT DRAFTREV ISED 11/09/10 Page 15 of 43specific), types of security systems (alarms and cameras), and security personnel that willbe employed.No te: Submission of these plans to staff via this RFPA process does not in anyway waiveor remove the requirement of eventual perm it aw ardees to apply for and receive permitsfor any and all construction includ ins electrical, plumb ins. fire, a nd any other permits asmav be deemed necessary by the relevant departm ent in charg e of said permits. Nor doesit guarantee that plans submitted via this RFPA will meet the standards and requirementsof those permittin s asencies. All perm it award ees will still be required to complete allthe perm itting pro cesse s for the propose d construction of their facility.4) Fire Plan - Any p roposed facility w ith a group U occup ancy (agricultural buildings &greenhouses) and group F-l occupancy (assembling, packaging, manufacturing hempproducts) classifications for their building / structure shall be in compliance with currentCalifornia Fire Code requirem ents for fire & life safety. An y occupancy chang e orremodel w ill require upgrade or installation of mod em fire protection systems incompliance with OMC, CBC and CFC regulations.Applicants should p rovide a detailed description of their Fire prevention, suppression,and alarm systems that includes an assessment ofthe facility's fire safety by a qualifiedFire prevention suppression consultant. A fire inspection will be required ann ually priorto renewal of any p ermit aw arded, to assure the City that adequate fire safety m easuresremain in place. An appropriate plan will have considered all possible fire, hazardousmaterial, and inhalation issues/threats and will have both written and physicalme chan ism s in place to deal with each specific situation. A detailed schematic diagramof alarm systems and placements that also details by when all fire prevention measureswill be operational will be required.

Minimum requirementsAn automatic fire sprinkler system shall be provided throughout all buildings con tainingF- l occupancy per 903 .2.3 CFC . This fire sprinkler system shall be monitored and thesystem shall alert the occupants ofth e building or structure on activation and notify theFire Department of an alarm.Per 901.4.3 CFC in occupancies of a hazardous n ature, where special hazards exist inaddition to the normal hazards o fthe occupancy, or where the Fire Code Officialdeterm ines that access for fire apparatus is unduly difficult, the Fire Code O fficial shallhave the authority to require additional safeguards. Such safeguards include, but shall not be limited to, the following: automatic fire detection systems, fire alarm systems,automatic fire extinguishing systems, standpipe systems, or portable or fixedexfinguishers. Fire protection equipment required under this section shall be installed inaccordance with this code and the applicable referenced standards.


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DRAFT DRAFTREV ISED 11/09/10 Page 16 of 43Any additional fire protection systems required by the Fire Code Official shall beinstalled forthwith, with required plans and building and construction permits submittedfor approval to and by the City of Oakland per 105.7 CFC .Per 105.6.7 CFC, a Combustible Fibers permit shall be obtained annually for the storageand handling of combustible fibers (hemp) in quantities greater than 100 cubic feet(2.8m3).An annual Inspection of operations and fire / life safety systems shall be a condition ofobtaining both building and construction perm its & Fire Department clearance.No te: Submission of these plans to staff via this RFPA proc ess does not in anyway w aiveor remove the requiremen t of eventual permit aw ardees to apply for and receive perm itsfor any and all construction including electrical, plum bins. fire, and any o ther permits asmav be deemed necessary by the relevant department in ch ars e of said permits. Nor doesit suarantee that plans submitted via this RFPA will meet the standards and requirementsof those perm ittins asencies. All perm it awa rdees w ill still be required to complete allthe perm itting proc esses for the proposed construction of their facility.5) Environmental P lan Please include an Environmental C ompliance Plan as a requiredelement oft he submission. This plan must provide a detailed description of how theapplicant will comply with all existing state and local policies, including:A. Stormw ater Managem ent - Meet Provision C.3 requirements by developingand implementing both a Stormw ater Pollution Prevention Plan to minim izepotential runoff pollution during construction and a Stormw ater Control Plan tominimize potential runoff pollution and runoff flows for the hfe ofthe project.

B. Discharge into Stormwater System - Obtain a Non Point-source Discharge &Elimination Permit from the State and comply with the City's M unicipal RegionalPermit regulated by the S tateC. Discharge into Sanitary Sewer System - Obtain a discharge permit fromEBMUD and City building and construction permits for plumbing.D. Energy - Com ply with Title 24 statewide building energy code.E. Identify num ber and types of PG E energy vaults transformers that will beinstalled, including placement on facility (if applicable).F. Green Building - Com ply with Oakland Green Building Ordinanc e.G. Recycling - Com ply with Oak land's Construction and Demo lition D ebrisRecycling Ordinance


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H. Recycling - Com ply with Oak land's Recycling Space Allocation O rdinance inthe Planning Code.I. Recycling - Com ply with the countywide ban on plant debris disposal in thegarbage.J. Recycling - Provide mandatory w eekly garbage collection.K. Air Quality - Obtain permits from the Bay Area Air Quality M anagementDistrict for backup diesel generators or other equipment requiring such permits.L. Describe with specificity the number and types of air filters to be used infacility. Describe how air filtration system will be used to create negative orpositive pressure to reduce odor and emissions into the facility and out into theneighboring areas.M. Hazardo us Materials - Develop a Spill Prevention, Control andCountermeasure plan if storing more than 1,350 gallons of liquid hazardousmaterials.N . Hazardous M aterials - Prepare a Hazardous Materials Business Plan (HMB P)as necessary.O. Provide information on pesticides that will be used onsite, or whether facilitywill be organic or cultivate in an organic mann er. Information should be foldedinto IPM.

In addition, this plan m ust describe how the A pplicant will comply with the followingadditional requirements, including; Achievement of energy performance at least 10% superior to latest version ofTitle 24 code adopted by the State Ban on disposal of organics in the garbage

No te: Submission of these pla ns to staff via this RFPA proces s d oes not in anyway waiveor remove the requirement o f eventual permit aw ardees to apply for and receive permitsfor any and all construction including electrical, plumbing, fire, and any o ther perm its asmay be deemed necessary by the relevant departm ent in char se of said permits. Nor doesit suarantee that plans submitted via this RFPA will meet the standards and requirementsof those perm ittins asenc ies. All permit awa rdees w ill still be required to complete allthe permitting pro cesse s for the pro pos ed construction of their facility.6) Capitalization - A successful A pplicant will have sufficient capital in place to build,secure, and start up their proposed facility. Such costs mu st incorporate the Ci ty's perm itfee. The A pplicants must provide proof in the form of some com bination of Letters of


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DRAFT DRAFTREV ISED 11/09/10 Page 18 of 43Credit, equity, and or loans sufficient to cover construction, start up, equipm ent, andproduct production. Financial information should include estimated costs of build,operation, compensation of employees, equipment costs, utility costs, and other O & Mas needed.Applicants should provide the following documents to substantiate their ability to operateproposed facility:

A. Letters of Credit; equity, and/or loansB. 3 years of Audited Financials and Tax Returns (if entity has existed for I ormore years otherwise documentation of when entity was established and articlesestablishing entity)C. 3 years of Financials and taxes for any individual with 20% or greater interestin the businessD. Sources and Uses - Sources of capital and how these sources are expected tobe expended.E. 3 year P erformaF. Reasonable reserves

7) Comm unity Benefits - Applicants must dem onstrate how they intend to provide theirlocal com munity w ith comm unity benefits and mitigate any nuisance and/or negativeimpa cts that the facility's existence may cause. Should the Applicant be successful andbe awarded a permit ofth e city any area contained below for which bonus points wereawarded will become a condition of their permit, and the City would reserve the right toenforce said condition. Applicants who demo nstrate a commitment to their comm unityand to improving the quality of life of their neighbors should receive points forsustainable practices that include:A. Applicants must show how they plan to have minimal nuisance or negativeimpacts on their neighbors and comm unity. Nuisance/negative impactsinclude but are not limited to: noise, odor, increased foot or vehicle traffic,increase in waste or w ater production, impacts to right of way access, and orincrease in safety related concerns.

B. Applicants m ust provide to the City how their entity will develop andimplement a Comm unity Benefits Program. Programs should be designed togive back to the comm unity and O akland residents by assisting in theprovision of necessary support services.o Areas of particular concern to the City would be: Re-entry Jobs and Job Training Dom estic Violence Revitalizing Oakland - either with improved infrastructure,providing assistance to Oakland Parks and Recreation C enters,libraries, or funding for arts, culture, and environmentalprograms. Children and Youth programs and intervention services.


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Cannabis-Friendly Substance Abuse Education andRehabilitation Programs Foreclosure Prevention Public Schoo lsApplicants m ust detail how they will revitalize the building/site, provide neighborhoodimprovem ents and will be a beneficial/positive neighbor to the neighborho od.

BONUS POINTSThe O akland City Council has determined that bonus points should be awarded to RFP Aapplicants who set out standards, measurab le, and or written com mitmen ts (contracts orletters of intent) by which they intend to m eet Council A dopted Policies and Procedures,attached here to this RFPA as Exhibit B. Should the Applicant be successful and beawarded a permit oft he city their comm itments in bonus points categories will becom e acondition of their permit, and the City would reserve the right to enforce said condition.If a violation of condition occurs it will be deemed a material breach and the City wouldreserve the right to assess a penalty or seek revocation of the permit. All conditions willbe mo nitored and tracked by staff on a regular basis via quarterly audits, surpriseinspections, reporting requirements, and annual renewal process. The following criteriaareas will be considered when aw arding bonus points:1) Labor & Em ployment Practices (240 Points) Applicants who meet the following laborand employment practices:

A. Applicants must provide compensation to and opportunities for continuingeducation and training of their employees. Applicants should provideproof o f their policy and regu lations. Should the Applicant be successfulthis would becom e a condition of their permit, and the City would reservethe right to review their employee policies and procedures and to audittheir employee records to determine how many employees haveparticipated in education and training programs as well as what prog ramsare being offered and how employees are being comp ensated to assure thatthey are complying. (10 po ints)B. Ap plicants that state they will be a card check-neutral em ployer. Should

the Applicant be successful their commitment w ould becom e a conditionof their permit, and the City would reserve the right to audit their policiesand procedures to assure that they are complying. (10 points)C. Applicants with pre-existing union recognition, collective bargainingagreements. Should the Applicant be successful their commitment wouldbecom e a condition of their permit, and the City would reserve the right to


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audit their files to review the collective bargaining agreement and assurethat it is still in effect. (50 points)D. Equity participation: Applicants that are 40%) local owned and operated.

Local owned m eans 40% o fth e Applicants not for profit entity board iscomprised of Oakland residents and reflective o fthe diversity ofth e Cityof Oakland. Should the Applicant be successful their commitment wouldbecome a condition o f their permit, and the City would reserve the right toaudit their board and-ownership information to assure that they arecomplying. (50 points)O rA locally owned coop erative Applicant organization with no employees,locally owned means at least 40%t of cooperative members are residents ofOakland and reflective ofthe diversity ofthe City of Oakland. Should theApplicant be successful their commitment w ould become a condition oftheir permit, and the City would reserve the right to audit their board andownership information to assure that they are complying. (50 points)

E. App licants that main tain a staff com prised of at least 80%) Oaklandresidents, and hire fi'om Oakland training, employment developmentcenters, and O akland Union hiring halls will receive bonus points. Suchcomm itment will be made a condition o fthe permit issued should theApplicant be successful. (50 points)O rApplicant cooperatives that are 80%o owner/worker locally owned willreceive bonus points. Should the Applicant be successful theircomm itment w ould become a condition of their permit, and the Citywould reserve the right to audit cooperative ownership information toassure that they are complying. (50 points)

F. Applicants that make a comm itment in writing to, whenever feasible, buyat least 50% of their products, equipment, materials from Oaklandbusinesse s and hire only local firms for construction. Should theApplicant be successful their commitment w ould becom e a condition oftheir permit, and the City would reserve the right to audit theirexpenditures to assure that they are complying with their local purchaserequirements. (50 points)

G. App licants that provide a living wage to their employees. W age scale shouldbe provided in writing for all levels of employment at the facility. Sho uld theApplicant be successful their commitment would becom e a condition of


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their permit, and the City would reserve the right to audit their salaryranges and wage scales to assure that they are complying. (10 points)H. App licants should provide Equal Benefits and sign Declaration of Non-

Discrimination. Should the App licant be successful their comm itmentwould becom e a condition of their permit, and the City would reserve theright to audit their employee policies and procedures to assure that theyare complying. (10 points)2) Environmen t (Bonus Points 220) Bonus points will awarded based on three categories:a) Energy, Building & Climate; b) Water; and c) Materials & W aste. Should theApplicant be successful and be awarded a permit ofthe city, any area contained below forwhich bonu s points were aw arded will become a condition of their permit, and the Citywould reserve the right to enforce said condition.

Ener gy, Building & Climate (100 points)A. Prov ide a description of how the facility and all operation s will maxim izeenergy efficiencyB. Apply and use available PG&E programs offering free technical assistance fordesign and construction of building shell, tenant improv ements, bu ildingsystems and processes where applicable (some may o nly apply to newconstruction)C. Provide a description of how renewable energy will be used on-site orpurchased (e.g., solar panels)D. Provide estimates of projected total facility energy consumption andgreenhouse gas emissionsE. Provide an estimate of energy use and a summary o fth e approach to be takenfor lighting of cultivation area (e.g., number and type of lights per 10,000square feet)F. Provide a description of efforts to reduce transportation emissions (e.g., use ofbiofuels, electric vehicles)G. Prov ide a description of any other efforts to reduce or offset greenho use gasemissions associated with the facility and operations (e.g., achievement ofclimate neutrality through efficiency, renewables and offsets)H. Prov ide a description of how ex isting Brownfield sites, if applicab le, will beremediated and used for the planned facilityWater (40 points)


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DRAFT DRAFTREV ISED 11/09/10 ^ Page 22 of 43

A. Prov ide a description of how water conservation and efficiency strategies willbe developed (e.g., use of EBM UD technical assistance)B. Provide a description of any efforts to recycle and/or treat water on-siteC. Provide a description of how the use of toxic materials will be minimized orprohibited in all aspects of proposed operation (e.g., use of organic fertilizers,non-toxic pesticides)Ma terials & Waste (80 points)A. Dev elopm ent of zero waste plans for operations with detail on efforts to beundertakenB. Provide a description of packaging to be used, including expected use ofrecycled content materials, recyclable materials, and reusable materials,

including plans for reuseC. Provide a description of how others up and down the supply chain will beengaged to m aximize m aterial reuse, minimize pack aging, etc. (e.g., deliveryin reusable containers)D. Provide a prediction of operational phase w aste stream broken down bygarbage vs. recycled vs. composted m aterial by volum eE. Desc ribe the extent to which organ ic fertilizers and pesticides will be usedF. Provide a description of how toxic chemicals will be prevented from enteringwater, air and ground resources

3) Product Safety (200 points) Permittees will be required to abide by product safetyand testing standards. App licants wh ose applications consider such standards inadvance will be awarded bonus points. Should the Applicant be successful and beawarded a permit of the city any area contained below for which bonus points wereawarded w ill become a condition of their permit, and the City would reserve the rightto enforce said condition.A. App licants who detail how gro wing condition used to produce4:he plants willproduce a plant free of mold, disease, heavy metals, etc.B. Applicants that provide product safety through UV exposure or other nontoxic treatment mechanisms to guarantee product safe for patient useC. App licants who provide information on the produ ct safety and testingstandards they will employee, for m old/contaminants and how they willprovide this information to the City on a quarterly basis.


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D. Applicants shall explain how, to the best of their ability, they intend tomonitor product so that substances that would not be allowed by the OrganicFoods Production A ct (OFPA) of 1990 and regulations in Title 7, Part 205 ofthe Code of Federal Regulations and The National Organic Program (NOP)are not included with their product. Such monitoring may include the curingor treating of product to eliminate any such substances prior to packaging.

E. Applicants will explain how they intend to reduce the use of pesticides and beprepared to maintain such com mitment as a component o f their permit tooperate.

Scoring1. Resp onsive ness - A Pass/Fail evaluation will be applied to the determination of

responsiveness relative to meeting the requirements of this RFPA .2. Business Plan (600 points) - The business plan will be evaluated based onresponsiveness to items identified in RFPA, capacity to perform the work;familiarity with the difficulties, uncertainties, and risks associated with the workand knowledge of the staff qualifications necessary to the performance of thework. Furthermore, to the extent possible, bidders will be evaluated based on ademonstrated capacity to work quickly, efficiently, reliably, and with the ability todemonstrate confidence in their product vision and implementation of acultivation facility,, appropriateness of business in surrounding community, abilityto clearly articulate business model, and conformance with Oakland and

California State Law.3. Building/Construction Plan (100 points) - The Building Construction plan will bescored based on feasibility, length of time needed for construction, design, overallscale, and appropriateness of facility structure/scale size in surroundingcommunity.4. Security Plan (150 points) - An evaluafion will be made of (a) overall safety andsecurity; (b) ability to adequately secure and protect employees, patients,patient/caregivers, client dispensaries, and the general public entering the facility;and (c) ability to adequately secure cultivation areas, product, and adhere to

closed loop system that prevents diversion.5. Fire Prevention Plan (50 po ints) - An evaluation w ill be made of (a) overall safetyand security; (b) ability to adequately secure and protect employees, patients,patient/caregivers, client dispensaries, and the general public in case of a fireand/or other emergency, including plans and regular rehearsals; and (c) adequatefire prevention and suppression measures sufficient to prevent and or respond to afireof any size.


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,6. Capitalization (300 points) - An evaluation will be made ofthe overall (a) fiscalhealth ofth e proposal; (b) experience and background of organization m embers inoperating successful business ventures; (c) letters of credit and performance bondcommitment in an amount sufficient to fulfill the commitments detailed in theoverall plan; (d) feasibility and viability of plan from an economic perspective.

7. Environmental Plan (200 points) - An evaluafion w ill be made of th e applicantsoverall ability to meet state, federal, and local regulations regardingenvironmental protections.8. Com munity Benefits Plan (100 points) - Applicants must demonstrate how theyintend to provide their local community with community benefits and mifigateany nuisance and/or negative impacts that the facility's existence may cause.Applicants who demonstrate a commitment to their community and to improving

the quality of life of their neighbors should receive points for sustainable practicesthat they implement.9. Ad ditional Preference P oints - In addition preference points may be earned asfollows:a. Lab or & Employment (240 points) - Applicants who agree to meet thelabor and employment practices outlined above will receive additionalbonus po ints for their ability to meet the subcategories.b. Environm ental (220 points) - Bonus points will be awarded based onthree sub-categories: a) Energy, Building & Climate; b) Water; and c)Materials & Waste.

c. Pro duct Safety (200 points) - Applicants will be awarded bonus pointsbased on their ability to show how they will produce cannabis withoutpesticides, free of mold, bacteria, and other harmful substances, how theyintend to test the product for safety, and what steps they will take to makesure their product will be safe for consumption.10. Examination - will be scored on a 100 point scoring system.

Each category w ill be reviewed by a subject m atter expert and the Special B usinessPermits staff, by w ay of examp le the Fire Plan category will be reviewed by OFD FireInspector and the Special Business Permit Assistant to the City Administrator, and theirrespective sco res will be added together to provid e actual score for the section. Themaxim um score available for an Applicant, based on categories, would be 1500 points.Please be advised that there is an additional 660 points available based on Applicantsability to meet the bonus requirements idenfified by the Oakland City Council.Applicants that move on to Phase II ofth e RFPA will also be subject to an examinationthat will be worth an additional 100 poin ts. The total overall maxim um score available toapplicants that go through Phase I and Phase II will be 2260. The exam ination w ill be


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DRAFT DRAFTREV ISED 11/09/10 Page 25 of 43taken prior to the selection ofth e four (4) Permit awardees selection. A Public Hearingwill be held for the four (4) awardees to finalize conditions and hear concerns orconsideration from residents.

NOTICE OF DECISIONSuccessful app licants will be notified in writing no later than TB D. All applicants whofail to proceed to Phase II to will be notified within 10 days ofthe decision and they willbe informed of their rank and total score. All applicants that proceed to Phase II but areunsuccessful will be notified within 10 days of decision along with rank and score.All Permit Awardees will be required, as a condition of their permit, to abide by atimeline of deliverables as proscribed by Permit Staff Failure to comply with thetimeline and or m eet a deliverable m av result in the assessment of a monetary penalty inthe amount of $ for breach of a permit condition or imm ediate revocation ofpermit for repeated failure to abide by deliverables timeline. Deliverables can include, butmay not be limited to:A. A schedule by when construction plans will be submitted to the appropriatedepartment:B. Date by when construction perm its must be pulled;C. Date by when construction mu st be started;D. Date by when construction will be com pleted;E. Date by which Fire Alarm Sy stems will be installed and functional;F. Date by when Security M easures will be installed and deployed;G. Date by when local hiring practices and employm ent com mitments begin; and

H. Other measures as may be determined so that staff continues to see movem enttowards cultivation.

T H E C I T Y ' S R E S E R V A T I O N O F R I G H T ' SThe City reserves the right to reject any or all proposals, whether or not minimumqualifications are met, and to modify, postpone, or cancel the RFPA without liability,obligation, or comm itment to any party, firm, or organization. In addition, the City reservesthe right to request and obtain addifional information from any candidate submitting aproposal. Furthermore, a proposal RISKS BEING REJECTED for any of the followingreasons:

1. Proposal received after designated time and date.2. Proposal not containing the required elements, exhibits, nor organized in therequired format.3. Proposal considered not fully responsive to this RFPA.4. Proposal contains excess or extraneous material not called for in the RFPA.


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DRAFT DRAFTREV ISED 11/09/10 Page 26 of 43Attachments:General InformationExhibit A - Draf Operating ConditionsExhibit B - Oakland C ity Council policies and ProceduresExhibit C - Oakland Municipal Code C hapter 5.81 Medical Cannabis CultivationExhibit D - California A ttorney general Guidelines


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DRAFT DRAFTREV ISED 11/09/10 Page 27 of 43G E N E R A L I N F O R M A T O N1. pre-p ropo sal conference is scheduled for:

DATE TIME1 Frank H. Ogawa Plaza, 1*" Floor, Hearing RoomOakland, California 94612The pre-proposal conference will cover the following items.a. Project information.b. 5 major categoriesc. Bonus Point Categoriesd. Proposal submittal requirements.e. Questions by attendees.

The City Ad min istrator reserves the right to reject any and all applicants.2. All Perm it Aw ardees will be required to abide by Opera ting Conditions that meet theCity of Oakland Policies and Procedures regarding product safety, environment, labor,building, and operational stan dard s as adopted by the Oakland City Council. Attachedbelow are draft operational conditions currently being proposed by staff for theMedical Cann abis Industrial Cultivation And Processing Facility Perm its. Theseconditions are subject to modification prior to issuance of the permit to successfulapplicants. Successful Applicants applications will at a minimum clearly delineate howtheir proposal could meet the operating conditions as set forth below.


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EXHIBIT AOperat ing G uide l ines for Medica l Cannabis Cul t i va t ion, Manufac tur ing andProcessing Faci l i t iesAs part of receiving a Medical Cannabis Industrial Cultivation And Processingpermit, Cultivation and manufacturing facilities are at a minimum expected tomee t the opera ting standard s established in these guidelines. Lack ofcompliance with any of these operating standards shall constitute breach of thepermit and may render it invalid based on the determination of the CityAdministrator.

A. Administrative(1) Cultivation and manufacturing facilities must substantially carry outall commitments and plans submitted in the application process, aslisted in Oakland Municipal Code (OMC) section 5.81.30, exceptthat the City Administrator may waive portions of these plans.(2) Cultivation and ma nufacturing facilities must follow all otherpermitting requirements established by the City Administrator.(3) Cultivation and ma nufacturing facilities must allow the CityAdministrator to have access to the cultivation and manufacturingfacil i t ies books, records, accounts, inventory management system,and any and all data relevant to its permitted activities for thepurpose of conducting an audit or examination. Books, records,accounts, inventory management system access, and any and allrelevant data shall be produced no later than twenty-four (24) hoursafter the City Administrator s request.

(4) Cultivation and manufacturing facilities must sign waivers that allowPG&E to share energy use data with City staff when requested.(5) Cultivation and manufacturing facilities may not misinform, or fail tocorrect unintentional errors in reporting, Permitees are required tonotify the City Administrator in writing within 72 hours of discoveryof the error.(6) Cultivation and ma nufacturing facilities must submit auditedfinancial records to the City Administrator on a quarterly basis.(7) The City Adm inistrator shall notify all Pe rmitees of any breach ofthis Chapter and may give the Permitee ten (10) calendar days tocorrect all violations prior to any revocation by the CityAdministrator upon written notice.

B. Security(1) Cultivation a nd man ufacturing facilities' secu rity plans m ust bereviewed and approved by the Oakland Police Department, or adesigne e approved by the Oak land Police Dep artment. Suchsecurity plans should aim to deter crime, conserve police


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resources, and maximize the safety ofthe surrounding community,in coordination with the Oakland Police Department.(2) Cultivation and manufacturing facilities must make transactions withpayment methods other than cash whenever possible, andendeavor to limit the amount of cash held at each cultivation andma nufacturing facility. The City Adm inistrator may set an upperlimit of cash that may be held at a cultivation and manufacturingfacility or, if feasible, may require that none of the cultivation andmanufacturing facility's transactions in medical cannabis use cashas a method of payment.(3) Cultivation and ma nufacturing fa cilities must ma intain securityguards and camera coverage of their entire grounds to an extentsufficient to deter crime, as submitted in their security plan to theCity Adm inistrator. Surveillance footage must be retained for aperiod of 30 days and made available to the Oakland PoliceDepartment promptly upon request by the City.(4) The City Adm inistrator s hall set forth in her/his adm inistrativeregulations the method and m anner in which em ployee backgroundchecks for cultivation and manufacturing facilities shall beconducted, including standards for disoualification of an employeebased on criminal history. Except that no canna bis related nonviolent offenses for possession or sale shall be relevant to or abasis for disoua lification.

C. Fire(1) Cultivation and manufacturing facilities must be inspected for andcomply with state and local building, electrical and fire andconstruction codes.(2) Cultivation and manufacturing facilities must hold consultations withtheir principal utility provider regarding their specific circumstancesfor electrical safety, and record and follow its recommendations. Inall cases, the cultivation and manufacturing facilities must ensurethat: Tota l utility usage is below the utility provide r's total powercapacity; Any additional transform ers neede d for utility load areinstalled; an d

The potential utility usage from the total lamp layout is belowthe internal power capacity o fth e building.D. Insurance(1) Before commen cing op erations, cultivation and ma nufacturingfacilities must provide proof of evidence to the City Adm inistratorthat such facility has obtained sufficient insurance including thefollowing:


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. Gene ral liability insurance , with a minimum claim limit of$2,000,000 per occurrence Autom obile insurance, with a minimum claim limit of$1,000,000 per accident W orker's compensation insurance as required by state law Professional liability insurance (including directo rs andofficers if the cultivating entity has directors or officers)(2) The insurance held by the cultivation and m anufacturing facilitiesmust be AM Best rated A-VII or better and must be from a companypermitted to do business in the state of California, but it may befrom a company outside of California.(3) The adequacy of cultivation and manufacturing facilities insuranceshall be determined by the City's Finance and ManagementAgency.E. QUALITY ASSURANCE(1) Cultivation and man ufacturing facilities must comp ly with alloperating standards developed and established by the City(2) Cultivation and ma nufacturing facilities must cu ltivate cannabisproducts in accordance with best practices, both in terms ofproduction methods and available technology; these best practicesmust meet or exceed state and federal agricultural standards forfood-grade products, and minimize as practicable the use offertilizers, sprays, or other chemicals that would not meet theOrganic Foods Production Act (OFPA) of 1990 and regulations inTitle 7, Part 205 of the Cod e of Federal Regu lations

(3) Cultivation and man ufacturing facilities must allow the CityAdministrator or his/her designee to take samples of their productat any time for testing purposes, in accordance with the proceduresset out in this Chapter.(4) Cultivation facility must develop and integrate a system for trackingall medical cannabis from seed to harvesting. Such system shouldprovide tracking for medical cannabis at all times to preventdiversion of product. Ex: a bar code system designed to trackindividual plants and subsequent umbrella and cannabis produced.(5) Cultivation and manufacturing facilities must carry out independenttesting of medical cannabis to detect the presence of molds,yeasts, or other microbiological contaminants, heavy metals orother toxins, and pesticides or nutrients, based on standards set bythe City Administrator.(6) Cultivation and manufacturing facilities must follow instructions ofthe City Administrator regarding any medical cannabis found to benon-com pliant with testing standard s. Thes e instnjctions mayextend to any medical cannabis that may be unsafe in light of such


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testing results or to the relevant cultivation and manufacturingfacilities' operations and practices generally.(7) Cultivation and manufacturing facilities must carry out independentchemical testing of every batch of medical cannabis to identifypercentage content of delta-9(Trans) tetrahydracannabinol,cannabidiol, and cannabinol, and disclose each batch's contentwhen transferring it to a medical cannabis dispensary.(8) For all private testing required of the m, facilities m ust use onlytesting facilities pre-approved by the City Administrator, based on adetermination that the testing facility clearly has no conflict ofinterest with the cultivation and ma nufacturing facility in question.(9) Cultivation and manufacturing facilities must require all authorizedpersonnel who shall be in contact with medical cannabis in anyform to take sanitary precautions (washing, changing clothes, etc.)adequate to prevent contamination of cannabis from outsidesourc es. Cultivation and ma nufacturing facilities must provideappropriate rooms such that employees may take required sanitaryprecautions.

F. Non-Diversion(1) The City Administrator may limit the cultivation area a cultivationand manufacturing facility may use if he/she detennines that thecultivation and manufacturing facility current or planned cultivationarea is excessive in light of existing medical consumption needs.(2) Cultivation and man ufacturing facilities m ay not transfer med icalcannabis to any person or entity outside California, regardless ofthe person or entity's legal status.(3) Cultivation and man ufacturing facilities m ay not transfer med icalcannabis, plant cuttings (clones), or any other cannabis product toany person or entity unless it is (a) an Oakland pemiitted medicalcannabis dispensary, or (b) a medical cannabis dispensary that (i)lawfully operating in its local jurisdiction, (ii) complies with stateregulations, and (iii) holds a valid business tax license ordemo nstrates payment of BOE taxes(4) A file must be ma intained in which all identifying and necessaryinformation can be provided to the City Administrator's designeeupon request.

(5) Cultivation and Manufacturing Facilities will be required to maintaina database that tracks all clients, assigns an individual and distinctclient number, tracks product purchased, frequency of purchase,total number of patients affiliated with the dispensary, location, localjurisdiction permit number, and all affiliated business tax licensenumbers.(6) Cultivation and man ufacturing facilities m ay not transfer med icalcannabis to any person or entity, even if legally qualified if they


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have reason to believe such person or entity is likely to divert suchmedical cannabis toward persons or entities unauthorized topossess it under state law, or outside of California. In such casesthe cultivation and manufacturing facilities must report its groundsfor such belief to the City Administrator.(6)Cultivation and manufacturing facilities must maintain acompu terized inventory m anagement system that:a. Accou nts thoroug hly for all products, bypro ducts, anddiscarded items in their operations;b. Uniquely tracks each batch of medical cannabis to thepermitted dispensary to whom it is transferred, includingeach batch's active ingredient content for which testing isrequired under OMC section 5.81.050(E)(4); andc. Retains all information listed abo ve for a period of at least180 days.(7) Cultivation and manufacturing facilities must limit access to cropand stock to authorized personnel only.(8) Con tracts / agreements must exist betwe en the cultivation andmanufacturing facilities and the dispensaries business is transactedwith. A mutual, closed loop, relationship is required between thecultivation and manufacturing facilities and the Dispensaries andplant limits align with the number of members of the Dispensariesthat the cultivation and manufacturing facility is providing medicalcannabis to.

G. Environment(1) Runoff and w aste disposa l by the cu ltivation and ma nufacturingfacility must be in compliance with applicable city, county, state,and federal laws and regulations and must endeavor to use thebest production practices reasonably available to minimize itsenvironmental impact.(2) The cultivation and manufacturing facility shall make a contributionto entirely offset the ca rbon e missions resulting from its utility usagethrough a means approved by the City Administrator.(3) The C ity Administrator shall set forth in her/his a dm inistrativeregulations the method and manner in which a cultivation andmanufacturing facility shall make contributions to electric/electronic

recycling programs in accordance with their level ofelectric/electronic waste disposal.H. Labor(1) Cultivation and manufacturing facilities may not employ, or acceptvolunteer services from, anyone who is not a qualified medicalcannabis patient or qualified patient care-giver under state law or isunder the age of 21.


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1. Neighborhood Impact(1) Cultivation and man ufacturing facilities m ust install and maintainappropriate equipment to reliably prevent any odor distinctive to itsoperations from being detectable in its surroundings andneighborhood, including the following equipment or otherequipment which has the same or better effectiveness at this task: An exhaust air filtration system that prevents externalodor from being emitted; and A system creating negative air pressure between thecultivation and manufacturing facilities' interior andexterior.(2) Signage for the cultivation and man ufacturing facility shall belimited to one wall sign not to exceed ten square feet in area, andone identifying sign not to exceed two square feet in area; suchsigns shall not be directly illuminated. Signage m ay not include thewords "cannabis," "marijuana," or any language, picture, or otherrepresentation conveying to a person without prior knowledge thenature ofth e business within.(3) Cultivation and ma nufacturing facilities must provide the CityAdministrator or his/her designee, the chief of police, and allneighbors located within fifty (50) feet of the cultivation andmanufacturing facility with the name, phone number, and facsimilenumber of an on-site community relations staff person to whom onecan provide notice if there are operating problems associated withthe cultivation and man ufacturing facility. Th e cultivation andmanufacturing facility shall make every good faith effort toencourage neighbors to call this person to try to solve operatingproblems, if any.(4) Violations of this C hapter sh all constitute a public nuisance andshall be investigated and abated as authorized by Title 1 of theOakland Municipal Code and shall subject the property owner andor operator to daily pen alties as authorized by Title 1.

Product SafetyThe City Administrator shall develop procedures to ensure the safety and qualityof medical cannabis produced by cultivation and manufacturing facilitiespermitted und er the provisions of this Chapter. The proce dures shall at minimuminclude the following:

A. Standards shall be set, based on scientific and technical expertise, forsafe levels of molds, yeasts, pests, or other microbiological or biologicalcontaminants; safe levels of heavy metals or other toxins; safe levels ofpesticides and nutrients, with a view toward the elimination of the use of


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chemical pesticides and nutrients; and full disclosure of active ingredientcontent (delta-9{trans} tetrahydracannabinol, cannabidiol, and othercannabinoids relevant to patients' needs) in the medical cannabis.B. The City Administrator may contract with an outside party to take samplesof medical cannabis twelve (12) times a year or more from cultivation andmanufacturing facilities for testing purposes, without prior notification tocultivation and manufacturing facilities of sampling; the party taking thesesamples shall provide facilities with receipts for samples taken, and shallestablish a chain-of-custody system appropriate to ensure the security andidentity of samples taken. Testing reports shall be furnished within seven(7) days of sampling. Samples may be taken before standards andprocedures are fully established to aid in the policymaking process.Cultivation and manufacturing facilities shall contract with a 3"^^ partylaboratory designated by City Administrator for testing.C. Cultivation and manufacturing facilities shall regulariy conduct privatetesting for the same standards using functionally independent testing labswhich have received prior approval from the City Administrator, and whichhave no con flict of interest with the licensed cultivation facilities. Privatetesting shall be implemented that achieves the testing of every batch ofmedical cannabis within a reasonably short timeframe as deemedappropriate by the City Administrator.D. Cultivation and manufacturing facilities shall pay for all laboratory testingconducted, whether private or governm ent-administered.E. The City Administrator may establish procedures to create quality andrating standards for medical canna bis. Such procedu res shall ensure thatwhen claims regarding these qualities or rating standards are made todispensaries or patients, samplings and assessments may be conductedto verify those claims.


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EXHIBIT BC O U N C I L P O L I C I E S A N D P R O C E D U R E SThe O akland City council has adopted several policies and procedures regarding local

business ownership, local hire, card check neutrality, living wage, and environmentalstandards required of our local businesses. Many of these policies and proceduresapply to applicants whom receive contracts and or grants from the City of Oakland.The intent of the Council was to have successful applicants, to the extent possible,meet the standards and policies established by the Oakland C ity Cou ncil. The draftoperating conditions are also intended to assure that permit holders are held topractices consistent with these policies and procedures. Below please find thesegeneral policies and proce dures. The expectation will be that all Perm ittees willrequire their sub lessees and contractors to abide by these general policies andprocedures to the extent possible.Bonus po ints were developed to underscore the need for successful applicants to meetand exceed these local policies and proced ures. They are provided below to helpguide applicants through this process.

i . The City's Local and Small Local Business Enterprise Program.The Local and Small Local Business Enterprise Program describes theobjectives, goals and policies of the city regarding the participation ofcertified Local Business Enterprise / Small Local Business Enterprise(LBE/SLBE) in the City's design contracts. There is a twenty percent (20%)minimum participation requirement for all professional services contractsvalued at fifty thousand dollars ($50,000.00) or more. Compliance may beachieved at a rate of ten percent (10%) local and 10% small local certifiedbusiness participafion. The requirement may be satisfied by a certified primeand/or sub-Contractors(s) or a small local certified business may meet thetwenty percent requirement. The City of Oakland's Office of ContractCompliance & Employment Services must certify a business in order to earncredit toward m eeting the twenty percent requirement. A good faith effort is notrequired in light ofthe twenty percent local business participation requirement.The twenty percent local business participafion requirement will beconsidered a material term of every proposal. Proposals that fail to meet the20% minimum will be deemed non-responsive.Teams located outside the City of Oakland are encouraged to either establisha joint venture or other consulfing or sub consulting arrangement withOakland-based firms. Joint ventures will be required to conform to thepertinent laws, which govem the creation of such business arrangements. If acontractor is able to develop a Joint Venture or "Mentor-Protege" relafionshipwith a certified LBE or SL BE, the mentor or Joint Venture partners will enjoythe benefit of credits against the participation requiremen t. In order to earncredit for Joint Venture or Mentor-Protege relationships, the Agreement must


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be submitted for approval to Contract Compliance and Employment Servicesprior to the project bid date for construction, and by proposal due date forprofessional services contracts. Joint Venture Applications and elements ofCity approved Mentor Protege relation are available upon request.For tracking purposes, the contractor team is asked t

draft request for permit application for cannabis facilities

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