oakland marijuana cultivation rfpa

8/8/2019 Oakland Marijuana Cultivation RFPA

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o.,oEor^V^^.i:j;j OF O A K L A N D0 / , K L A N D AGENDA REPORT

b m t e o? the Citv AclministratorO: " 'Of f i ce oT the "CityATTN: Dan LindheimFROM : Arturo M. SanchezDATE: Septemb er 28, 2010RE: Act ion on a repor t regard ing proposed Request For Permi t App l i ca t ions(RFPA) to operate a IVIedical Cannabis Cult ivat ion Faci l i ty Pursuant toOakland Munic ipal Code Chapter 5.81

SummaryOn July 27, 2010 The City Council Adopted O rdinance No. 13033 C.M.S. creating aregulation and permit process for City designation of four large Collective, Collaborative,and Cooperative Medical Cannabis C ultivators. The purpo se of this ordinance was tocreate a framework for the regulation of medical Cannabis cultivation to address publichealth, safety, and economic impacts not accounted for within the City's current medicalCannabis system. ^ 'Coun cil directed staff to return with adraft Request For Permit Applications (RFRA) K.--- . --.:deta iling appiicati6nYeiquirej7i.ents;wlii.ch t CouncJI policies:iand:;ircit1ondirection.This report has the following attachments: (i) a draft RFPA; (ii) proposed draftregulations; (iii) Council policies used in past RFPs by other City depa rtmen ts and usedin the development of this RFPA; and (iv) The State of California Attorney General'sGuidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use. .Discuss ionThe attached proposed R FPA is for Council review and comm ent. The proposed R FPAwill require Applicants to submit several documents and detail how their business modelwill meet six (6) major categorical elements upon which they will be score d. In additionthere will be four (4) bonus point categories. The bonus point categories were chosen toaddress concerns exp ressed at the July 27, 2010 Council meeting where Councildirected the development of a bonus point structure based on the following list ofconcerns:

Local hireWage s and working conditions (ifnot unionized)Equity p articipationEmployee certificationContinuing Education | - "ContractingCard checkItem: _ .

Public Safety C omm itteeSeptember 28, 2010


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Dan LindheimRequest For Permit Applications forMedical Cannabis Cultivation Facility Page 2Product testing/Product safetyVariety of environmental issues:Reduction of electrical usageWaste disposalReduce green house gas emissionsRed uce use of pesticidesGrowing conditions that produce plants free of mold, disease and heavy metalsGlobal warmingToxinsWater runoff

Other items mentioned (but covered in general standards)Minimizing neighborhood impactAs directed by council staff has further expanded on these general themes and includedthese con cerns in the draft RFPA as subse ctions of four bonus point categories . Thefour category headings as follows:

1. Labor Practices2. Environmental Mitigations; ,3 . . . . Prod uc tSa fety _..._ , L ;^ ; . . . - . , . -.:.-

Keeping in mind the concerns of Council, staff has developed an RFPA designed toaddress the concerns and award the most qualified Applicants with the cultivationpermits.PRE-APPLICATION TIMELINE & SCHEDULEAs explained below the proposed process will require applicants to proceed through arigorous and blind application review process designed to assure the selection of thefour best and most responsible Applicants.Staff estimates that it will need a minimum 90 days to review and score applicants,conduct background checks, select the top six applications, administer Cannabisexam s, conduct public hearings, and award p erm its. If no additional draft of the R FPAis required then staff expects the following schedule for the RFPA process:Informational letter to all interested individuals:Publish and Release RFPA:M andatory M eeting for Applicants:Applications and Required documents due:/^' Ro und Scoring a nd Ranking of Applicants:Top 6 Applicants no tified:

Monday October 11, 2010Monday October 18, 2010Monday October 18, 2010 6pm@ City Hall.Wednesday Novem ber 24, 2010by 4pmFriday December 17,2010Monday December 20, 2010Item:

Public Safety CommitteeSeptember 28. 2010


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Dan LindheimRequest For Permit Applications forMe dical Cann abis Cultivation Facility Page 3Public Hearing scheduled (top 6): January 4 -Janua ry 12, 2011Permit Awarde es Notified: January 21, 2011Permits issued: exact day TBD January, 2011Requi red Appl ica t ion E lements

ApplicationsAll applicants will be required to identify the name of the organization, proposed site,board members, managers, and general contact information. All board members andmanagers will be required to submit their personal information for a Live Scanbackground check to be cond ucted by the Oakland Police Depa rtment. Failure tosubmit a Live Scan form for all required members of the organization will causeapplications to be considered incomplete and void from consideration. All applicants willbe required to submit an application form, required attachments, and a non-refundableapplication fee of $5,000 by the subm ission dead line, failure to do so will result indisqualification from process.Each e ntity applying for a M edical Ca nnabis Cultivation permit will ne ed to identify thetype of business, partnership, or corporation which is applying for the permit. Applicantswill be required to submit proof of corpora te status or legal status of business . .,configu ration. Failure to identify the business type and provide app ropriate-docurpentatiori would cause^the application to be considered incomplete.andyoidifromid - . . ' . j : : ;City reserve s the right to void the app licant from considera tion. "" "' - '- - . ;-- viv-,; . ..Applicants must also identify the property which they intend to use for the MedicalCultivation Perm its, and their relationship to the property. The propo sed location mustbe located in areas where Light M anufacturing Industrial, or their eq uivalent use, ispermitted as such use is described in the Oakland Planning Code, as may be amended.Applicants will also be required to submit the following attachments to the application:

D Business Plan - Each ap plicant must submit a business plan ge nerallydescribing their business model, partnerships, and overall plans.D Building & Construction - Applicants should submit narrative detailingconstruction and timeline for constn jction. Attached to narrative should be acopy of design plans which include diagrams of proposed construction, electrical,plumbing, fire and security components.n Security Plan - App licants must provide a detailed desc ription of theirOpe ration and Facility S ecurity plan that includes an as sessm ent of site securityby a qualified security consultant; this assessment may be required every twoyears prior to renewal of any permit. Plans should cover in detail O peration andFacility Security.

Item:Public Safety CommitteeSeptember 28 , 2010


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Dan LindheimRequest For Permit Applications forMe dical Cannabis Cultivation Facility Page 4n Fire Plan - App licants must provide a detailed de scription of their Fireprevention, suppression, and alarm systems that include an assessment of thefacility's fire safety by a qualified Fire prevention suppression consultant.D Environmental Plan - A l l App licants will be required to include anEnvironmental Compliance Plan. This plan must provide a detailed description ofhow the applicant w ill com ply with all existing state and local po liciesD Proof of Ca pitalization - Applicants m ust provide proof of cap italizationsufficient to cover estimated costs of build, operation, compe nsation ofemployees, equipment costs, utility costs, O & M as needed, and productproduction. As an ex ample, if Applicants business plan estimates that total costof starting business from cons truction to production costs $7 million thenApplicant should be able to establish sufficient capital to cov er this cost. Proof ofcapitalization can be presented in the form of Letters of C redit and bankstatements. Applicants sh ould be prepared to post a security performance bondfor the full amo unt of their estimated cost of start up.

Appl icat ion ReviewApplications that are timely and fully.cpnipleted.will be reviewed in two.{2) phases as. .

PHASE IApplicationComplete applications submitted by the deadline will be redacted, assigned a selectionreference number, and submitted to a pane! of subject matter experts inbuilding/constnjction, business development, revenue, Fire, Environmental Services,Environmental, and Public safety, with Special Business permit staff acting as a secondreviewer of all app licants. Staff reviews will be conducted in a blind m anner (i.e. noreviewer will be privy to the nam es of the Applicant Co rporation, or mana gingmembers).ScoringEach se ction will receive a score from the two reviewers, and their scores will beaveraged to determine actual sco re for the section. In Phase I an Applicant can achievea Maximum score of 1500 points, 1000 points from six (6) required categories and 500from bonus section categories. Each section will be scored as follows:

1. Responsiveness: A Pass/Fail evaluation will be applied to the determination ofresponsiveness relative to meeting the requirements of this RFPA.2. Business Plan: maximum of 500 points

Item:Public Safety CommitteeSeptember 28, 2010
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Dan LindheimRequest For Permit Applications forMedical Can nabis Cultivation Facility Page 53. Building/Construction P lan: maximum of 100 points4. Securitv Plan: maximum of 50 points5. Fire Prevention Plan : maximum of 50 points6. Ca pitalization: maximum of 200 points7. Env ironmen tal Plan: maximum of 100 points8. Add itiona l Preference Points - additional preference points may be earned asfollows:a. Labor (100 points) - Applicants who have a history of and/or exhibit acommitment to Oakland and its residents will receive additional bonus

points for their ability to meet 10 subcategories. Each subcategory canearn an ap plicant 10 additional p oints.b. En vironm ental (200 points) - Bonus points will be awarded based onthree sub-catego ries: a) E nergy, B uilding & C limate;, b) Water; and c)Ma terials & W aste. .-.c. Produ ct Safety (100 points) - Applicants will be awa rded bo nus points_; ; '; - based on their ability to show how they will prod uce cannab is with ou t- :;^ ^ ^ ^ l ^ , ^ ^ ^ ^ - ^ , ^ . , , pesticides,.free,of,mold,,bacteria,,^arid other.harm fuJjSubstances ,jhq^^"" -' intend to test the product for safety, and what steps they willt ak e to m ak e- t-i t sure their product will be safe for consu mp tion. .. , _ .,d. Community Benefits (100 points) - Applicants must demonstrate how they

intend to provide their local community with community benefits andmitigate any nuisance and/or negative impacts that the facility's existencemay cause. Applicants who demonstrate a comm itment to theircommunity and to improving the quality of life of their neighbors should-..^:'-' receive additiona l bonus points for sustainable practices tha t'the y com mitto implementingWhen evaluating each section reviewers will rely on the following criteria:1. Overall quality of the pro po sal including responsiveness and conformance

to RFPA requirem ents for content and form at;2. Quality and appropriaten ess of pro po sed Applicant team, professio nal;

experience and background of prim e Applicants an d key sub lessees;3. Appropriate personnel principals, project location, and other key personnel withrequire d experience and skills relevant to this project;4. Prim e Applicants experience and ability to man age op erations of prop osedfacility, scheduling of work and implementation necessary to operate, costestimating and budget management;5. Prime A pplicant's place of residence, primary makeup of applicant corporation 'sboard, and pr io r ability to work with local government ag encies;



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Dan LindheimRequest For Permit Applications forMed ical Can nabis Cultivation Facility ^ Page 6

The top six (6) highest scoring applications will proceed to Phase II.PHASE IIExaminationThe top six (6) applicants will be required to designate a member applicant to take aCannabis cultivation facility exam. The member applicant should be a managingmember of the Applicant Corporation, Cooperative, Association, or Collective. Ininstances where there will be sub lessees, the City reserves the right to require amanaging m embe r of all sub lessees to take the exam as well.

The e xam w ill test the ap plicant's familiarity with O akland and C alifornia law, as well asthe Attorney General's guidelines on Medicinal Cannabis.Exam ination will be scored on a 100 point scoring system . Res ulting exam ination scorewill be added to total score from Phase I. For example if Applicant had a total score(RFPA + B onus) of 1250, and scores 75 on the exam their new sco re would be 1325.Public Hearing : ' , , : " : ; , . .Public Hearings w ill be schedu led for these top six (6) ap plicants. Prior to pub lichearings;.all p ropo sed facility sites will be inspected by a bu ilding official.to.ascertain the,3r:i,.yiabjlity.otprpposed^sit&plans,;.cur:uc^V]olations/All Applicant^faciiities will besubjecttb-a public'hearing-noticed'to\thecommunity where the proposed facility is located. Hearings will determine communityinput and concerns .All scores will be added and public hearing comments taken into consideration. The topfour candidates will be the candidates with the highest overall score and a favorablehearing determ ination. These four Applicants will be offered perm its and asked toproceed with implem enta tion. Assum ing that they abide by their construction andphase-in schedule, permits would be issued January 2011 with production beginning assoon thereafter as practicable.Prac t ica l Cons iderat ionsStaff has developed the bonus categories based on Oakland City Council policies andProcedures (included with draft RFPA as E xt iib it B). It is important to note that thesepolicies and procedures have been developed and adopted by Council for use incontracts with third pa rties wh ere the C ity retains a prop rietary interest in the services tobe rendered. This proprietary interest affords the City a level of control over items su chas labor practices and third party contracts. The m atter before the council does notinvolve such a proprietary interest.As has been previously discussed by the Office of the City Attorney the proposed RFPAmerely invites a pplicants to ap ply for a special business permit and as su ch the Citydoes not have the proprietary interest necessary to require the items enumerated in the



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Dan LindheimRequest For Permit Applications forMedical Can nabis Cultivation Facility Page 7attache d O akland City Council policies and Procedures. For this reason staff hasincluded them as considerations and items for which bonus points can be issued for anapplicant that voluntarily meets these standards.SUSTAINABLE OPPORTUNITIESE c o n o m i cThe business permits issued under Title 5 of the OMC generate jobs and tax revenuesfor the City. It is anticipated that the addition of the four (4) cultivation facilities willgenerate hundreds of jobs and increase tax revenue for the City of O akland.E n v i r o n me n t a lEnvironmental considerations are a key component to a successful Applicant. The Cityof Oakland has long maintained a comm itment to renewable energy and wastereduction and the RFPA has been drafted in a manner that will award permits to theApplicants whose plans produce the least amount of carbon, waste, are energy efficient,and p rovide water protections designed to m ake them a an e nvironmental friendlyfacility.Soc ia l Equ i t y

owned businesses and to make commitments to hire locally, buy products, supplies andmaterials from, local companies, and improve the quality of life of Oakland residentsDisa b i l i t y and Senior C i ti zen Acce ssStaff will guide the formulation of the RFPA to ensure that the point system encouragesv.i::nriApplicants to prov ide safe and equitable a ccess to seniors and..members of theDisabled community.

Item:Public Safety CommitteeSeptember 28 , 2010


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Dan LindheimRequest For Permit Applications forMedical Canna bis Cultivation Facility Page 8

Ac t ion R equested Of the C ity Co unc i l1. Accept this Staff Report2. Review draft of the RFPA for Medical Cannabis Cultivation

APPROVED ANCI O R W A R D E D T O T H E

Artcffo|^/l\ SanerAssistantWtf ie Ci t /Administ rator

Ottlce-tTTthe City AdministratorAttach me nt - Draft Request For Permit'Application for Me dical Ca nna bis Cu ltivationFacilityAttach me nt - Exhibit A - Draft Operating ConditionsAttachment - Exh Jbit^B-O akland CityjCounci[policies and Procedures ;.-=;Vf'j:; j , :Attachment---ExhibitC":-Oaklahd:-M^^^Cultivation-"'""^^'"'"'^''- - -^'-''^^^^'^^-^^-^-----'-'^^^-^^'^^^^^^^^Attach me nt - Exhibit D - California Attorney general G uidelines

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DRAFT DRAFTPage 2 of 39

I N T R O D U C T I O NTh is Request for Permit Applications (ilFP A) is issued by the City of Oakland to identifyqualified firms or individuals (Permittees), and solicit applications from such, to engagein Medical Cannabis Industrial Cultivation And Processing in order to provide safe andadequate access to patients, patient care givers, and dispensaries of medical Cannabis.Applicants will compete for one (1) of four (4) available Permits to conduct large scalecultivation of Cannabis in the City of Oakland. Selected Permittees will be required tocom ply w ith operating standards, regulations, and reporting requirements as identified bythe City Adm inistrator or designee.

B A C K G R O U N DThe Statewide Cannabis MovementOn N ov. 6, 1996 Proposition 21 5, the California Com passionate Use Act, w as enacted bythe voters (California Health & Safety Code 11362.5). The law makes it legal for patientsand their designated primary caregivers to possess and cultivate cannabis for their .:..personal m edical use given the recomm endation or approval of a licensed physician. Thiswas-'expanded th rough SB;.420 on.January 1, 200 4 to (i) allow patients to form]medicalnx,r"r ^^P-

quantifies patients can possess and cultivate, protecting legal pafients who stay within theguidelines from arrest.Th e Regulate, Control and Tax Cannabis Act, on the California ballot this N ovemb er,would legalize adult recreational caimabis in Califomia, but give localities discretion toallow, regulate and tax production and distribution.Medical Cannabis in OaklandOn February 17, 2004, the City of Oakland adopted O rdinance No . 12585 C .M.S.,permitting distribufion of medical cannabis to authorized patients through four licenseddispensaries. The City process for adm inistering these Permits and monitoring thedispensaries is considered successful, and has become a role model for the nation, hi June2009, Measure F, which taxed O akland's medical catmabis dispensaries, passed in aspecial elecfion by 80% with no formal opposition, indicating recognition of thedispen saries' role in providing a legitimate service to the comm unity.While 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.Th is, combined with the City of Oak land's low priority enforcement policy , has mad e itdifficult for OPD to regulate production w ithin the structure of dispen sary collectives.


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On 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 cannabis cultivation that would address thepublic health, safety, and economic impacts currently not accounted for within the city'smedical cannabis system.Number of PermitsTo balance the objectives of sufficient scale and ease of imp leme ntation, the City Councilapproved four (4) Medical Cannabis Industrial Cultivation And Processing FacilityPermits in the interim phase of the program. Following the first year of implem entation,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 medical cannabis issufficient to absorb fiirther production, and whether the issuance of additional Permitswould serve the interests of the City.

DEFINITIONS

-?:. '^^^^ ' ' 'shairbe:giveifthefbllbwiiig"defiriiti6ns:--^'^^^^ -'--''l^^-:^^ .->^w^^r'^'-:-^^^'"-h'^'^--''^'-^A. "A eroponics" 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 Greek meaning s of "aero" (air) and "ponos" (labour). Aeroponic culturediffers from both conventional hydroponics and in-vitro (plant tissue culture) growing.Unlike hydropo nics, which uses water as growing medium and essential minerals tosustain plant growth, aeroponics is conducted-without a growing medium .B. "Applicant" as used only in this Chapter shall be any individual, firm, cooperative,association, collective, or corporations that applies for a Medical Cannabis IndustrialCultivation A nd Processing Facility permit via the RFPA process described herein.C. "Batch" as used only in this Chapter shall be defined by City Administrator to mean adiscrete quantity of dried caimabis or less, 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, and as may beamended, as is defined in Section 5.80.010 and is also referred to herein as "dispensary".


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F. "Carbon neutrality" having a net zero carbon footprint, refers to achieving net zerocarbon emissions by balancing a measured amount of carbon released w ith an equivalentamount sequestered or offset, or buying enough carbon credits to make up the difference.G. "Carbon Sequ estration" is defined as The 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 buming fossil fuels.H. "City A dm inistrator" as used only in this Chapter shall mean the City Adm inistratorfor the City of Oakland.I. "C ollectiv e" is any association, Medical Cannabis Association, co operative , affiliation,or collective of persons where three or less "qualified patients" and/or "primary caregivers", in possession of an identification card, or written recommendation, issued by thecounty of Alameda, or the state of California, or another agency recognized by the city ofOakland pursuant to California Health and Safety Code Section 11362.7 et seq,collectively or cooperatively join to provide education, referral, or network services, and :,.....,facihtation or assistance in the lawful production, acquisition, and distribution of medical

.r:;:::." -c an nab is .. ._ ,;;icn.- -. - t -r ,v., ^.^"Ciiitivatibn A rea " as used ohly'iri this Chapter hereinafter sha ll me an theW tuW areV iri--'^'^''use for the entire cultivation process of cannabis plants (including seedling production,vegetation, and maturation), as well as reasonable walking space, such that, for example,

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 Use, sometimes simply called Energy Efficiency" using less energytd'prbvide the sam e level of energy service. For example, insulating a ho me allows'abuilding to use less heating and cooling energy to achieve and maintain a comfortabletemperature. Efficient energy use is achieved primarily by means of a more efficienttechnology 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. "H ydroponics (From the Greek words hydro, water and ponos, labo r)" aimethod ofgrowing plants using mineral nutrient solutions, in water, without soil. Terrestrial plantsmay be grown with their roots in the mineral nutrient solution only or in an inert medium,such as perlite, gravel, mineral wool, or coconut husk.N. "HVAC" is an acronym that stands for the closely related fiinctions of "Heating,Ventilating, and Air Conditioning"the technology of indoor or automotiveenvironmental comfort. HVAC is particularly important in the design of medium to large


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Page 5 of 39industrial and office buildings such as skyscrapers and in marine environments such asaquariums, where safe and healthy building conditions are regulated w ith temperatureand humidity, as well as "fresh air" from outdoors.O. "Industrial Cannabis Cultivation, Processing, Manufacturing Fac ility" hereinafter"cultivation and manufacturing facility" as used only in this Chapter shall mean anyfacility used by any association, medical cannabis association, cooperative, affiliation, orcollective, or other entity authorized under, in possession of identification cards, orwritten recomm endations, issued by the county of Alameda, or the state o f California, oranother agency recognized by the C ity of Oakland pursuant to California H ealth andSafety Code Section 11362.7 et seq., and in conformance with California and local law,for the possessing, cultivating, grow ing, processing, and/or manufacturing of cannabis inan area greater than more than ninety six (96) square feet of cultivation area, and/orpossessing more than forty-eight (48) ounces of dried processed, and/or packagedCannabis, in One Parcel of Land, for subsequent transfer to a licensed medical carmabisdispensary that supplies to qualified patients or prim ary caregivers. A ny establishmen tengaged in, permitted to be engaged in or carrying on any medical canna bis cultivation,processing, or manufacturing or other activity mentioned in this chapter shall be deemedan Industrial Cann abis Cultiva tion and Ma nufacturing Facility as desc ribed in section .' .:. ., .5.81.040.I i ^ ^ ^-''--'- "" '^'rec ogn ized green btiilding'c'ertification%stem ;p^^ ' -'-'>'\building or community was designed and buih using strategies intended to improveperformance in metrics such as energy savings, water efficiency, C 02 emissionsreduction, improved indoor environm ental quality, and stewardship o f resources andsensitivity to their impacts.Q. "Loc al" - means residing in the Oakland City proper limits.R. "Medical cannabis collective, association, or cooperative" as used only in this Chaptershall be the same, and.as may be amended, as is defined in OMC 5.80.010S. "Primary caregiver" as used o nly in this Chapter shall be the same, and as may beamended, as is defined in OMC 5.80.010T. "QuaHfied patient" as used only in this Chapter shall be the same, and as may beamended, as is defined in OMC 5.80.010U. "Serious medical condition" shall have the same definition as California Health andSafety Code Section 11362.7 et seq, and as may be amended, including but not limited to:1. Acquired immune deficiency syndrome (AIDS);

2. Anorexia;


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Page 6 of 393 . Arthritis;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. Sub stantially limits the ability of the person to con duc t one or m ore ;:. i_- :._:_:.::

-. -^^:.-i^^Q (PubHc I^ w T 01 3 6) ;'o r " '" ^^--'- ' - -%^^-u,-. .. ^. ^^^^- ^ ^^.,. .&;v, /:..,b. If not alleviated, may cause serious harm to the patient's safety orphysical or mental health.

V. "Written recom men dation" as used only in this Chapter shall be the sam e, and as maybe amended, as is defined in OMC 5.80.010W. "Z ero 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 p rocess recommendedis one sim ilar to the wa y that resou rces are reused in natiu^es. In in dus try th is processinvolves creating com mod ities 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 Permits.The RFP A w ill consider 6 key components and 4 categories for bonus po ints.1. Business Plan2. Building Construction - Plans and S chedule


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3.4.5.6.

Security PlanFire Protection PlanEnvironmental PlanCapitalization

4 Bonus Categories:1. Labor & Em ployment Practices2. Environmental Mitigations3. ProductSafety4. Community BenefitsPHASE I

ApplicationAll Applicant groups will be required to submit an application form, with requiredattachments, and non refundable application fee of $5,000. Attachments to applicationwill include, but may not be limited to: 1) Address of proposed facility for mappingpurposes (Staff will work w ith planning department to map propo sed site). Facility must. ..be located in an area zoned for Light Manufacturing Industrial; 2) Live scan submissionfor all business partners and managers operating the facility; 3) Business Plan; 4) . .-r. :--. .;u, .:.:: ."^^;nc4;Li-i3^w^^LrBuildingahd^6hstructiohiPM' .' ^ '"- EnvironmeritarPlan;*8) Proof of Cap italizatio n;'9)P fd6 fofIh sura nce ;'andlO ) ' - r : . - -'.Incorporation d ocum ents, if applicable.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 planning, with Special Business permit staff acting as a second reviewerof all applicants. Sta ff s review will be conducted in a blind mann er wit h no reviewer - ^ :.knowing the identity of the applicants.The top six (6) applications will proceed to Phase II.

PHASE IIExaminationAll Applicants will be required to designate a member applicant to take a CarmabisCultivation Facility exam . The mem ber applicant should be a managing m ember of theApplicant's Collective. In instances where there will be sub lessees, the City reserves theright to require a manag ing 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 Attomey General's guidelines on Medicinal Cannabis.


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Public HearingThe top six (6) applicants will be scheduled for public hearings. Prior to pubtic hearings,all proposed facility sites w ill be inspected by a building official to ascertain viabihty ofproposed site plan , current condition of facility, and to docum ent code violations. If anyof the top six (6) applicants are disqualified prior to their pub lic hearin g, the next highestApplicant will have a public hearing scheduled for their application. A total of six (6)App licants must proceed to a public hearing. All Applicant facilities will be subject to apublic hearing noticed to the community where the proposed facility is located. Hearingdecisions and recomm endations will be based primarily on com mun ity input, siteinspection results , business feasibility, and the viability of the propo sed location. TheCity Adm inistrator or designee w ill rely on the hearing recomm endations, in conjunctionwith RFPA score and exam results, to award Perm its.All scores will be added and public hearing comm ents taken into consideration. The topfour candidates will be offered Permits and asked to proceed with implementation.Assuming they abide by their construction and phase in schedule, P ermits would beissued January 20 11 .

S U B M I T T A L R E Q U I R E M E N T S

-,,>.. -.. v-..^- Administrator's Office, Special business Permit Division,! Frank H. OgawaPlaza;"M'^'-" '^"" Floor, Oakland, CA 94612, no later than 5:00 p.m., T B D 2010 . The Cityreserves the right to accept or reject any or all proposals received not received on time,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, Applicant's location, submittal date, time and-^-' location of the pro posa ls on the outside of the pack age or-'the docum ents m ay no t beaccepted.A. Required Proposal Elements And F onnat

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

2. Applicant Business Plan


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a. In response to this RFPA, the primary contact/applicant shall be a patient/patientcare giver as defined pursuant to the Cahfomia Health and Safety Code.b. Include incorporation documentation, and/or documentation establishing validCooperative, Association, or Collective in conformance with the AttomeyGen eral's guidelines.c. Sub-lessee/contractor: In instances where the proposed busines s includes sublessee Dispensaries, Cooperatives, Associations, or Collectives list addresses,telephone numbers and qualifications as patient/patient care giver for each sub 'lessee entity. Briefly describe the project responsibility of each team mem ber.All managing members will be required to go through Live Scan process: -d. Identify proposed site and provide proof of ownership, lease , and or letter of

landlord's commitment to lease upon issuance of a permit to this site.e. Identify all proposed manage rs and executives of the business and submit LiveScan applications for each person identified.

B. Submit all of the following documents with vour proposal.. 1 . Bu sin ess Plan : - -'- : :; ,- : ,;.:i;:/.

""'-""' "'' ' ' 3!^' Se curityP ltir f-d eta ilfed 'descr ip tibn^ ^'-- - ';.-..,-.,: - -...- -^ r,,,-,....^v.- .,;..;.-^..^.:^-.-..,A,.,^.V4 . 'F ir e Pla n-d etai led description -5. Environmental Plan6. Proo f of Capitalization

C. A proposal will be rejected for any of the following reasons:1. The prb pbsa ?is delivered to the wro ng location by TB D 201 0 at '-"'"

5:00 p.m. local time;2. The proposal is received at designated location after designated time;3. The proposal is not in comp liance with the City of Oakland 's RFP A requirementsand/or any of the required Schedules are missing, proposed App licants fail tosubmit all ehgible mem ber managers for Live Scan background check by

application deadline;4. The proposal does not contain the required elements or is not organized in therequired format;5. The proposal contains a disclaimer;

Once the final award is made, all RFPA responses, except financial and proprietaryinformation, b ecome a matter of public record and shall be regarded b y the City as publicrec ord s. Th e City shall not in any way be liable or respon sible for the disclo sure of any


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such records or portions thereof if the disclosure is made pursuant to a request under thePublic Records Act or the City of Oakland Sunshine Ordinance.

E V A L U A T I O N O F PR O P O S A L SGeneral Cri ter iaApplicat ions for the Medical Cannabis Industr ia l Cult ivat ion and Processing Facil i tyPerm its received by the deadline set for th abov e wil l be reviewed for co mp leteness .Application will be voided if Applicant fails to submit all of the required information,including but not l imited to : 1) Add ress of proposed faci l ity for ma ppin g purposes (Staffwil l vvork with plarming departm ent to map proposed s i te) . The propose d location m ustbe located in areas where Light Manufacturing Industrial, or their equivalent use, ispermit ted as such use is described in the Oakland Planning Code, as may be amended; 2)Live scan siibmission for all business partners and managers operating the facihty; 3)Business Plan; 4) Schematic drawing of faci l i ty and proposed construct ion; 5) Securi tyPlan; 6) Fire Plan; 7) Proo f of Capita l izat ion; 8) Proo f of Insurance, an d 9) no nrefundable applicat ion fee in the amount of $5000.00.The C ity of Oakland is seeking in part icular submissions that identify the best "green "cult ivat ion pract ices , while employing "susta inable" energy and waste solut ions, andimp lem ent the "best prac tices " availa ble in the agricultural and indus trial cultivation i .-;- . -

" '""" ' 'feHiic 'e ^ d add res san y actual or potentia l CO "- -'"No la te subm issions wil l be accepted. Incom plete submission wil l not advance to PhaseI consideration and be voided,

1. All prop osals will be evaluated by a pane l com pose d of City staff andother parties with expertise or experience in business, fire inspection,po l ice and Com mun i ty Po l ic ing Through Env i ronmenta l Des ign(CP TED ), Re venu e, Nu isance, Building and Construc t ion design. Thepanel will rank and score all complete applications in their respectiveareas of expertise. The evaluation of the proposals shall be within the solejudgment and discret ion of the panel .2. Proposals wil l be num erical ly ranked. The top s ix (6) propo sals wil l besubmitted in rank order to the City Adminis tra tor 's designee for

examination and scheduling of a public hearing.Specific CriteriaA. The following specific criteria will be used in evaluating and rating the proposals:

1 . Overal l quali ty of the proposal including responsiv eness and conforman ceto RFPA requirements for content and format;2. Quali ty and approp ria teness of proposed A pplicant team , professional;experience and background of pr ime Applicants and key sub lessees;


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3. Appropriate persormel principals, project location, and other key personnelwith required experience and skills relevant to this project;4. Prim e Applicants experience and ability to manage operations of proposedfacility, scheduling of work and implementation necessary to operate, costestimating and budget management;5. Primary makeup of applicant corporation's board, and prior ability towork with local government agencies;6. Qu ality and appropriateness of proposed project site, busin ess mo del,organization, and their knowledge and experience in working with specificlegal codes and regulations.7. Applicants use and implementation of "sustainable" energy and wastesolutions, "best practices" available in the agricultural and industrial

cultivation arenas, and deployment of solutions designed to reduce andaddress any actual or potential concerns of the City and its residents.B. Subm issions w ill be reviewed to determine how the appticant meets the following 6major cate gories .- . . j .:.,

. :. : . i . / . . ; _ : . CA TE GO RIE S FOR AP PL ICA TIO N :- - i . . . _1) Overall Business Plan - Each applicant should submit a business plan generally ' 'describing their business model and plans. Plans will provide a description of proposedoperation and completely detail the overall make up of the corporate entity that will beoperating pursua nt to the permit. Each plan should detail and articulate all scope of workproposed, partnerships, property and location, relationship to owner, and provide as m uchdetail as possib le into the day to day operation of the facility. The plan should identifytypes of cultivation that w ill be conducted aeroponics, hydroponics, greenho use, as wellas whetHer facility will be organic, and provide a copy of their Integrated Pest"Managem ent (IPM ) Plan. Business plan should also identify how clients, purchases, andproduct will be tracked and monitored. Applicants should identify meth ods and maimersin 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 of the 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 Attom ey g eneral's guidelines.21 Building and Construction Applicants should submit a narrative outlining theelements of proposed construction and improvements; timeline for proposed constructionand improvements; detailing type and number of anticipated building and constructionpermits that may be required and factoring in time for acquiring building andconstruction permits into implementation schedule. Any proposed pub lic right of wayimprovements for access and safety of employees and customers shall be clearly


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identified; proposed sewer improvem ents that may be deemed necessary to meetdemands of proposed facility; proposed sidewalk improvements (if any); proposed trafficengineering improvements anticipated to be needed to mitigate impact to traffic and orneighborhood ; proposed lighting improvem ents designed to improve visibility and safetyin conjunction with overall safety and fire plan. Reviewers recognize that these itemsmay b e subject to change once permit applications are submitted to building services.Such improvements 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 construction perm its and approved b y 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 diagram s ofproposed construction, electrical, pliunbing, fire and security elements.3) Security Plan - Applicants should provide a detailed description of their security planthat includes an assessment of site security by a qualified seciuity cons ultant, this ,;, .,. .. assessment may be required every two years prior to renewal of any perm it awarded. The. ,.. , 1 , , : , . , , following items arebrokendovvn. into opera tion al and facility securi ty categories.:^- i ._.,,, ,. i:. :i ,.

" "' - contin genc y needed for thes e'situa tion sPA successful App licant will hav e both written .-..- T^and physical mechanisms, in place to deal with each specific situation. A detailed - - ~ _schematic diagram of alarm systems and placem ents that also details by when all securitymeasures will be operational will be required. ,

Operational SecurityApplicants will detail their operational security including but not limited to generalsecurity policies for the facihty, etnployee specific policies, training, sample writtenpolicies, transactional security, visitor security, 3' ' part contractor security, and deliverysecurity. This list is not intended to fully capture all areas for applicant co nsideration b utto 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 SecurityApplicants should provide a description and detailed schematic of the overall facilitiessecurity. In particular the applicant should address ingress and egress access, perimetersecurity, product security (at all hours), internal security measures for access (areaspecific), types of security systems (alarms and cameras), and security persoimel that willbe employed.


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4) Fire Plan - Any proposed facility with a group U occupancy (agricultural buildings &greenhouses) and group F-1 occupancy (assembling, packaging, manufacturing hempproducts) classifications for their building / structure shall be in compliance with currentCalifornia Fire Code requirements for fire & life safety. Any occupancy change orremodel will require upgrade or installation of modem fire protection systems incompliance with OMC, CBC and CFC regulations.Applicants should provide a detailed description of their Fire prevention, suppression,and alarm systems that includes an assessment of the facility's fire safety by a qualifiedFire preven tion suppression con sultant. A fire inspection will be required annually priorto renewal of any permit awarded, to assure the City that adequate fire safety measuresremain in place. An appropriate plan will have considered all possible fire, hazardousmaterial, and inhalation issues/threats and will have both written and physicalme chanism s in place to deal with each specific situation. A detailed sch em atic diagramof alarm systems and placem ents that also details by when all fire prevention measureswill be operational will be required.

Minimum requirements" An autom atic fire sprinkler system shall be provided throughout all buildings containing ;. . .F-1 occupancy per 903.2.3 CFC . This fire sprinkler system shall be mon itored and the . system shall alert the occupants of the buildin g or structure on activation and notify the ...7: ,..,v .,,.' T ' ^.,'

Per 901.4.3 CFC in occupancies of a hazardous nature, where special hazards exist inaddition to the normal hazards of the occupancy, or where the Fire Code Officialdeterm ines that access for fire apparatus is unduly difficuft, the Fire Cod e Official shallhave the authority to require additional safeguards. Such safeguards include, but shall notbe limited to, the following: automatic fire detection systems, fire alarm systems,automatic fire extinguishing systems, standpipe systems, or portable or fixed'extinguishers. Fire protection equipment required under this section shalhbe installed inaccordance with this code and the applicable referenced standards.Any 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.


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5) Environmental Plan P lease include an Environmental Co mpliance Plan as a requiredelement of the submission. This plan must provide a detailed description of how theapplicant will comply with all existing state and local policies, including:A. Stormw ater Management - Meet Provision C.3 requirements by developingand implementing both a Stormwater Pollution Prevention Plan to m inimizepotential runoff pollution during construction and a Stormwater Control Plan tominimize potential runoff pollution and runoff flows for the life of the project.B. Discharge into Stormw ater System - Obtain a Non Point-source Discharge &Elimination P ermit from the State and comply with the City's M unicipal RegionalPermit regulated by the StateC. Discharge into Sanitary Sewer System - Obtain a discharge perm it fromEBM UD and City building and construction permits for plum bing.D. Energy - Com ply with Title 24 statewide building energy code.E. Identify n umber and types of PG E energy vaults transformers that will beinstalled, including placemen t on facility (if apphcable). _ ', . ... .

._ . F. Green Bu ildin g-jC om ply with Oakland Green Building Ordina nce. . . / . n :.:::; .' .. ..: '..,-. ^ . : G. R ec y cl in g -C o m p ly with Oakland's Con struction and De molitio n Debris "^^ "':" ~-.Recyc ling Ord inance - .. - -

H. Recycling - Com ply with Oakland's Recycling Space Allocation Ordinance inthe Planning Code.I. Recycling - Com ply with the countywide ban on plant debris disposal in thegarbage. -.-... .;i,..iL.i . - J. Recycling - Provide man datory weekly 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. Hazardous M aterials - Develop a Spill Prevention, Control andCountermeasure plan if storing more than 1,350 gallons of liquid hazardousmaterials.


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Page 15 of 39' N. Hazardous Mate r ia l s - P repare a Hazardous M ate r ia l s Bus iness P lan (HM BP)

as necessary .O. Provide information on pesticides that will be used onsite, or whether facilitywil l be organic or cult ivate in an organic mann er . Information should be foldedinto IPM . ^

In addit ion, th is p lan must describe how the App hcan t wil l com ply with the fol lowingaddit ional requirements , including: Ach ievem ent of energy performance at least 10% superior to la tes t vers ion ofTit ie 24 code adopted by the State Ban on disposal of organics in the g arbage

6) Capitalization - A successful Applicant will have sufficient capital in place to build,secure , and s tar t up their proposed faci l ity . Such costs must incorporate the City 's perm itfee. Th e Ap plica nts mu st pro vid e proof in the form of Letters of Cred it sufficient tocover construct ion, s tar t up, equipment, and produ ct production. Financial information:.. ,; , should include estimated costs of build, operation, compensation of ernployeesj ' - . ' .equ ipm ent co sts, utihty co sts, and other O


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1) Labor & E mploym ent P ractices (100 Points) Applicants who have a history of and/orexhibit a commitment to Oakland and its residents should receive additional bonus pointsfor the following labor and employment practices:A. Ap plicants that prov ide com pensation to and oppo rtunities for continuingeducation and training of their employees. Applicants should prov ideproo f of their policy and regulation s - (10 points)B. Applicants that indicate they will be a card check-neutral employer (10points)C. Applicants with pre-existing union recognition, collective bargainingagreements, and comm unity- benefits-labor-peace-agreement (10 points)D. Equity participation: Ap plicants that are 30% local owne d and operated.Local owned m eans 3 0% of the Applicants not for profit entity board iscomprised of Oakland residents. (10 points)E. App licants that dem onstrate a comm itment to hire Oa kland residents. Such ,,.- -.comm itment will be made a condition of the permit issued should theApp licant be successful. (10 points) _ -i^.

... -. -.,.. - p .. Applicants that m ak cac orh m itm en t in writing to, whe never feasible, bu y-' H"'.- -'- "from local Oakland products, equipment, materials, and hire only localfirms for constru ction. Should the App licant be successful theircomm itment would beco me a condition of their permit, and the Citywould reserve the right to audit their expenditures to assure that they arecomplying with their local purchase requirements. (10 poin ts)

G. - Applicants that demonstrate a commitment to responsible labor standards - r. -..-Ownership, Ethnicity and Gender of Employees. (10 points)H. Applicants that provide a living wage to their employees. Wage scale shouldbe provided in writing for all levels of employment at the facility (10 points)I. App licants should provide Equal Benefits and sign Declaration of Non-Discrimination (10 points)J. Applicants should provide Declaration of Compliance with Am ericans withDisabilities Act (10 Points)

2) Environment (Bonus Points 200) Bonus po ints will awarded based on three categories:a) Energy, Building & Climate; b) Water; and c) M aterials & W aste.Energy, Building & Climate (80 points)


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A. Provide a description of how the facility and all operation s will max imizeenergy efficiencyB. Apply and use available PG&E programs offering free technical assistance fordesign and construction of building shell, tenant improv emen ts, buildingsystems and processes where applicable (some m ay only 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 of the 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 em issions (e.g., use ofbiofuels, electric vehicles)

:n:tU--.:W^^;";">-j-G.- Pro vide ad es cr ip tio n of any plaimed-u'se.of green building-m easures.-'CI'-? .a--uie r-. ..;AH. Prov ide a descrip tion of any other efforts to reduce or offset greenhouse gasemissions associated with the facility and operations (e.g., achievement of

climate neutrality through efficiency, renewables and offsets)I. Prov ide a description of how existing Brownfield sites, if app licable, will beremediated and used for the planned facilityWater (40 points)A. Prov ide a descrip tion of how water conservation and efficiency strategies willbe developed (e.g., use of EBMUD 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)M aterials & Waste (80 points)A. Dev elopm ent of zero waste plans for operations with detail on efforts to beundertaken


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B . 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 packaging, etc. (e.g., deliveryin reusable containers)D. Provide a prediction of operational phase waste stream broken down bygarbage vs. recycled vs. composted m aterial by v olumeE. Des cribe the extent to which organic fertilizers and pesticides will be usedF. Provide a description of how toxic chemicals will be prevented from entering

water, air and ground resourcesG. Pro vide a description of how existing Brownfield sites, if applicab le, will beremediated and used for the planned facility

3") Product Safety (100 points) Permittees will be required to abide by product safetyand testing standard s. Ap phcan ts wh ose applications consider such standards in ;, ^-=^;i'i-};'jurl:>rhi;advarice^wilhbe.awarded.bonuspoints.\u^ a v ..y:,ti: , -. vx^Hcv -v: vUi:iJVC? i


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and/or negative impacts that the facility's existence may cause. App licants whodemonstrate a commitment to their community and to improving the quality of Hfe oftheir neighbors should receive additional bonus points for sustainable practices thatinclude: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 water production, impacts to right of way access, and orincrease in safety related concerns.

B . Applicants must provide to the City how their entity will develop andimplement a Community Benefits Program. Program s should be designed togive back to the community and Oakland 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 Domestic Violence Revitalizing Oakland - either with improv ed infrastructure,providing assistance to Oakland P arks and Recreation Centers,libraries, or funding for arts, culture, and environmentalprograms. .r/ >Stt)Ou"r;-.. .. , ::._ . , . - , . - F:r^C hildren :and '';^outh'iDrograms.and-intcrvention servlc es. - ~ . - . - 1 . . - r^-'C

^ . , . , ..,,.,.,.^.,:;_ - ...,.- "-^ea nna bis-Fr iehdly 'Subs tanceA buse Ed ucatio ma nd'-i"^ --"' - - - ' - ,--;-Rehabilitation Program s Foreclosure PreventionC. Applicants must detail how they will revitalize the building/site provideneighborhood improvements and will be a beneficial/positive neighbor to theneighborhood.

Scoring1 . Responsiveness - A Pass/Fail evaluation will be applied to the determination ofresponsiveness relative to meeting the requirements of this RFPA.2 . Business Plan (500 points) - The business plan will be evaluated based on

responsiveness 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 andCalifornia State Law.


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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. Securitv Plan (50 points) - An evaluation 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 toclosed loop system that prevents diversion.5. Fire Prevention Plan (50 po ints) - An evaluation will 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.6. Capitalization (200 points) - A n evaluation will be made of the overall (a) fiscalhealth of the propo sal; (b) experience and backgroimd of organization mem bers in > -

( c ) le t tersof . ;credi t ; :and;perfonnance. :bond^. ; ; ; i , ; ; ; ; : i j ; ixVi^v_;;.,y;v;v:-^--.-K;f'^^r-V;conimitment i h ^ a n - a m o ^ ^ t o f u l f i l l ' t h e ' c o m r r i i t n i e n t s ) d e t a i l e d - i n " t h e > i : 7 v - " r r - ; - - . r roverall plan; (d) feasibility and viability of plan from an economic perspective:

7. Environmental Plan (100 points) ~ An evaluation will be made of the applicantsoverall ability to meet state, federal, and local regulations regardingenvironmental protections. . - . X . f . S l i i - Additional Prefer ence Points - In addition preference poin ts :may be earned asfollows:a. Lab or & Employment (100 points) - Applicants who have a history ofand/or exhibit a commitment to Oakland and its residents will receiveadditional bonus points for their ability to meet 10 subcategories. Eachsubcategory can earn an applicant 10 additional points.

b. Environmental (200 points) Bonus points will be awarded based onthree sub-categories: a) Energy, Building & Climate; b) Water; and c)Materials & Waste.c. Prod uct Safety (100 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.d. Comm unity Benefits (100 points) - App licants must dem onstrate how theyintend to provide their local community with community benefits and


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DR AF TPage 21 of 39

mitigate any nuisance and/or negative impacts that the facility's existencemay cause. Applicants who demonstrate a comm itment to theircommunity and to improving the quality of life of their neighbors shouldreceive additional bonus points for sustainable practices that they committo implementing

9. Exam ination - will be scored on a 100 point scoring system.Each category will be reviewed by a subject m atter expert and the Special BusinessPermits staff, by way of example the Fire Plan category w ill be reviewed by OFD FireInspector and the Special Business Permit Assistant to the City Administrator, and theirrespec tive scores will be added together to provid e actual score for the section. Themax imum score available for an Apph cant, based on categories, would be 1000 points.

Please be advised that there is an additional 500 points available based on Applicantsability to m eet the bonus requirements identified by the Oakland C ity Coimcil.App licants that move o n to Phase II of the RFPA w ill be subject to an exam ination thatwill be worth an additional 100 points. The examination will be taken prior to the PubhcHearing that will be held for all Phase II Applicants. , . : v ; : - NOTICE OF DECISION

---v v if Successful apph cantsw iirbenotified'm ^^applicants wh o fail to procee d to Phase II to will be notified within 10 days of the decision and they will be informed of their rank and total score. All applicants thatproceed to Phase II but are unsuccessful will be notified within 10 days of decision alongwith rank, score, and basis for denial..

TH E CITY 'S RESERV ATION OF RIG HT 'S rThe 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 com mitment to any party, firm , or organization. In addition, the City reservesthe right to request and obtain additional information from any candidate submitting aproposal. Furthermore, a proposal RISKS BEING REJECTE D 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.Attachments:


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General InformationExhibit A - Draft O perating Condition sExhibit B - Oakland City Council policies and ProceduresExhibit C - Oakland Municipal Code Chapter 5.81 Medical Cannabis CultivationExhibit D - California A ttomey general G uidelines

-' x.i.'i^'- ^.'. i->-"B!^T% ' ' r i- '^ . .-( .- . .Wi,. vw'i- '^w^ti


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D R A F T -~ DRAFTPage 23 of 39

G E N E R A L I N F O R M A T O N1. pre- pro pos al conference is scheduled for:

D A T E T I M E1 Frank H. Ogawa Plaza , 1 * Floor , Hear ing RoomOakland, Cal i fornia 94612The pre-proposal conference will cover the following items.a. Project inform ation.b. 5 major categoriesc. Bonu s Point Categoriesd. Proposal submittal requirem ents.e. Que stions by attendees.

The Ci ty Administ rator reserves the r ight to reject any and al l appl icants.2. All Per mit Aw ard ees wi ll be req uir ed to abide by O pe rat i ng Co ndi t ion s that meet the Ci ty of Oakland Pol i c i es and Procedures regard ing product safe ty , envi ronment , l abor ,bui lding, and operat ional s tandards as adopted by the Oakland Ci ty Counci l ! 'Ât tached. ; . : ; .vi '^ -vbelow ar e dra ft op er ati on al ' co nd itio ns cu rre ntly bein g pro po sed by-t:'Staff îfor v^thî" nper3T!oMed ical* 'Cannab is ' 'l i idust r iar 'Ci i lt ivat io 'n^^ Fa"cil ity Pe rm itsr" "T hes e"- "condi t ions are subject to modificat ion prior to i ssuance of the permit to successfulappl icants. Successful Appl icants appl icat ions wi l l at a minimum clearly del ineate howtheir pro posal could meet the ope rat ing con di t ions as set forth below.

,,


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EXHIBIT Aco^ r-3 in^


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DRAFT DRAFTPage 24 of 3 9E X H I B I T A

Op erat ing G uidel ines fo r IVIedical Cannabis C ul t ivat ion, Ma nufa ctur ing andProcessing Faci l i t iesAs part of receiving a Medical Cannabis Industnal Cultivation And Processingpermit, Cultivation and manufacturing facilities are at a minimum expected tomeet the operating standa rds established in these guide lines. 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 man ufacturing facilities must follow all other...; . . . permitt ing requirements established by the City Administrator.(3) Cultivation and man ufacturing facilities must allow the City. . Adm inistrator to have access to the cultivation: an d manufacturingw"iv^ iv"i r--'rv?;bift n>'r>'r:': facilit acco un ts, .inventory man ag em en t system;^.' ' ' - - - - . - - "and" any^'ahd air da ta relevant to i t s permitted activi t ies' for the 'purpose of conducting an audit or examination. Books, records,accounts, inventory management system access, and any and al!relevant data shall be produced no later than twenty-four (24) hours-after the City Adm inistrator 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 Adm inistrator on a qua rterly basis.(7) The City Adm inistrator shall notify all Perm itees 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 and man ufacturing facilities' security plans m ust bereviewed and approved by the Oakland Police Department, or adesigne e approve d by the Oakland Police Dep artmen t. Suchsecurity plans should aim to deter crime, conserve police

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that such facility has obtained sufficient insurance including thefollowing: General 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 Wo rker's comp ensation insurance as required by state law Professional liability insurance (including directors 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-Vll 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 insurance

shall be determined by the City's Finance and ManagementAgency.E. QUALITY ASSURANCE.(l)."Cultivation and manufacturing facilities must comply with all..;operating standards develope d and established by the City . - -. ., ... ,.. ..: .:: ... (2) Cu ltivation and manu facturing facilities must cultiva te .cannabis_.> >,-^l ^j i- fm ^ ^yv^4iî{ii|i ,j;.i îijâpro bpthîn;ate^mSj^gf.5>^du^;olJ:1.,.,..... ^production' me thods-and available-technology; these be stp ra ct ice sT r^- ^-" -.must meet or exceed state and federal agricultural standards forfood-grade products, and may at no point apply fertilizers, sprays,

or other chemicals that would - not meet the Organic FoodsProduction Act (OFPA) of 1990 and regulations in Title 7, Part 205of the Code of Federal Regulations(3) Cultivation and ma nufacturing facilities must allow the . City-'''-^- Admin istrator or his/her des ignee to take sa mple s'o f 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 med ical cannabis from seed to harvesting. Such system shou ldprovide 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 man ufacturing facilities m ust .carry out independenttesting of m edical cann ab is, 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 standards. These instmctions may


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extend to any medical cannabis that may be unsafe in light of suchtesting results or to the relevant cultivation and manufacturingfacilities' operations and practices g enerally.(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 them , facilities must use onlytesting facilities pre-approved by the City Administrator, based on adetermination that the testing facility cleariy has no conflict ofinterest with the cultivation and m anufacturing facility in question.(9) Cultivation and manufacturing facilities must require all authorizedpersonnel who shall be in contact with medical cannabis in any

form to take sanitary precautions (washing, changing clothes, etc.)adequate to prevent contamination of cannabis from outsidesources. Cultivation and man ufacturing facilities must provideappropriate rooms such that employees may take required sanitary Tprecautions. - .F ., Non -D ive rs ion : : - - -.-;-. : ::::-L-:'.';.:-.:; ;)

""^-^y^-z'^--- -r 5'"'"--'-and 'ma n'ufacturing'fac ility^ma y'use "if"'he^^cultivation and man ufacturing facility current or planned cultivation -area is excessive in light of existing medical consumption needs.(2) Cultivation and man ufacturing facilities may n ot transfer medicalcannabis to any person or entity outside California, regardless ofthe person or entity's legal status.(3) Cultivation a nd m anufacturing facilities m ay not transfer medicalcannabis'-^'plant cuttings (clones), or any other cannabis product to '^J^^^any person or entity unless it is (a) an Oakland permitted medicalcannabis dispensary, or (b) a medical cannabis dispensary that (i)holds a valid permit to operate in its local jurisdiction, (ii) complieswith state regulations, and (iii) holds a valid business tax licensefrom the City of Oakland . A file must be ma intained in which allidentifying and necessary information can be provided to the City

Administrator's designee upon request.(4) 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.(5) Cultivation and ma nufacturing facilities may not transfer medicalcannabis 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 toposse ss it under state law, or outside of California. In such casesthe cultivation and manufacturing facilities must report its groundsfor su ch be lief to the City Adm inistrator.(6)Cultivation and manufacturing facilities must maintain acomp uterized inventory m anagement system that:a. Accou nts thoroughly for all products, b yprodu cts, anddiscarded items in their op eration s;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 abov e for a period of at least

180 days.^ (7) Cultivation and manufacturing facilities must limit access to cropand stock to authorized personnel only.(8) Con tracts / agreements must exist between the cultivation and. . ma nufacturing facilities and the dispen saries business is .transacted ..:with. A mutual, closed loop, relationship is required between thecultivation and manufacturing.facil i t ies and the Dispensaries and..

ca nn ab isto. - . .. . . ,G. Environment(1) Run off and wa ste disposal by the cultivation 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 carbon em issions resu lting from its utility usagethrough a means approved by the City Administrator.(3) Th e City Adm inistrator shall set forth in her/his adm inistrativeregulations the method and manner in which a cultivation and

manufacturing facility shall make contributions to electric/electronicrecycling programs in accordance with their level ofelectric/electronic w aste disposal.H. Labor(1) Cultivation and manufacturing facilities may not employ, or acceptvolunteer services from, anyone who is not a qualified medicalcann abis patient under state law or under the age of 21.


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I. Neighborhood Impact(1) Cultivation and ma nufacturing fac ilities must install and maintainappropriate equipment to reliably prevent any odor distinctive to itsoperations from being detectable in its surroundings andneighborhood, including the follovying equipment or otherequipment which has the sam e 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 a nd man ufacturing fac ility 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 illumina ted. Signage m ay not include thewords "cannabis," "marijuana," or any language, picture, or otherrepresentation conveying to a person without prior knowledge thenature of the business within.". (3) Cultivation and ma nufacturing facilities must provide, the City. : - - .Administrator or his/her designee, the chief of police, and all-';':: -neighb ors located within fifty (50) feet of the cultivation a n d .- M -" -: -^s^fe4i?:î; ^li ;;^manufacturing^âcility:with:vth^^^^'-'"'^'''""'numb er of anôn-^ relation s-staff'pe rson to whom -one.'^^can provide notice if there are operating problems associated with the cultivation and ma nufacturing facility. T he cultivation andmanufacturing facility shall make every good faith effort toencourage neighbors to call this person to try to solve operatingproblem s, if any.(4) Violations of this Cha pter shall constitute a public n uisance and'^^shall be investigated and abated as authorized by Title 1 of-th&-'fjfOakland Municipal Code and shall subject the property owner andor operator to daily p enalties as authorized by Title 1.

Product Safe tyThe City Administrator shall develop procedures to ensure the safety and qualityof medical cannabis produced by cultivation and manufacturing facilitiesperm itted u nder the provisions of this Chapter. The proced ures 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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EX HIBIT B;t; ii't,i*'>V>'Ki(-ti-ii5i^.--j^^^ r.:iir,K','--i:-y-JK'f^U-i{{'w\jjh^-,'~:'^:i'A\'^^^^^ ^^%^ rf;i^V.'v^V ,*y!y--^ijit!'tjSsE t"-(i-.-!?-^^; '>3 '.'. '

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Page 31 of 39EXHIBIT B

C 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 localbusiness ow nership, local hire, card check neutrality, hving w age, and environmentalstandards required of our local businesses. Ma ny of these pohcies and proceduresapply to apphcants 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,m eet the standards and policies established by the Oakland C ity Council. Th e drafEoperating conditions are also intended to assure that permit holders are held topractices consistent with these policies and procedures. Below please find thesegeneral policies and procedures. The expectation w ill be that all Permittees willrequire their sub lessees and contractors to abide by these general pohcies andprocedures to the extent possible.Bonus p oints were developed to underscore the need for successful applicants to meetand exceed these local policies and procedures. They are provided below to helpguide applicants through this process.

1, The City's Local and Small Local Business Enterprise Program..The Local, and Small..Lbcal Business Enterprise ^Program describes the ,. ;-.i.!""'*^''ol?iective"s,''^gbals""aha'^certified 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 often percent (10%) local and 10% small local certifiedbusiness participation. The requirement may be satisfied by a certified primeand/or sub-Contractors(s) or a small local certified business may meet thetwenty percent requifemeht. The City of Oakland's Office of ContractCompliance & Employment Services must certify a business in order to earncredit toward meeting the twenty percent requirement. A good faith effort is notrequired in light of the twenty percent local business participation requirement.The twenty percent local business participation 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 consulting or sub consulting arrangement withOakland-based firms. Joint ventures will be required to conform to thepertinent laws, which govern the creation of such business arrangements. If acontractor is able to develop a Joint V enmre or "M entor-Protege" relationshipwith a certified LBE or SLBE, the mentor or Joint Venture partners will enjoythe benefit of credits against the participation requ irement. 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 contrac ts. Joint Ven mre Applications and elements ofCity approved Mentor Protege relation are available upon request.For tracking purposes, the contractor team is asked to show the percentageand dollar amount of MBE/WBE participation on all sub-contractor hstings.Contractor Teams are asked to provide data regarding the racial, ethnic, andgender make up of listed sub-contractors and be prepared to providedocumentation that demonstrates the methodology used to select all subcontractors.Furthermore, the City Administrator's Office will track the City's MBEAVBEutilization to ensure the absence of unlawful discrimination on the basis ofracial, ethnicity or gender, and will make periodic reports to the City Councilconcern ing such utilization. The City will report any discrim ination in Citycontracts to the appropriate Federal and State agencies, and will take actionagainst contractors that are found to be engaging in discriminatory acts orpractices up to and including termination or debarment.

2 , The Citv's Living Wage Ordinance!t;:.-r.,;f,',r^ t i,.-.--. u: Th is vAgfeemcht- is .-subject .to the^O ak land .. Liv ing 4W age.< 0rdiiia nce: T he -h kv V'"'-'-'-- ^ Liv ing W age O rd inan ce req uir es that no thin g les s th an a' pr es cr ib ed m in im um -'-';'level of compensation (a living wage) be paid to employees of serviceContractors (contractors) of the City and employees of CFARs (Ord. 12050

1, 1998). The Ordinance also requires submission of the Declaration ofCompliance attached and incorporated herein as Declaration of Compliance- Living W age F orm ; and made part of this Agreem ent, and, unless specificexemptions apply or a waiver is granted, the contractor must provide thefollowing to its employees who perform services under...or related to thisAgreement:

a. Minimum com pens ation - Said employee s shall be pa id an initial hourlywage rate of $11.15 with health benefits or $12.82 without healthbenefits. These initial rates shall be upwardly adjusted each year no laterthan April 1 in proportion to the increase at the immediately precedingDecember 31 over the year earlier level of the Bay Region ConsumerPrice Index as published by the Bureau of Labor Statistics, U.S.Department of Labor. Effective Jul y 1 ' of each yea r, Co ntr ac tor shallpay ad jus t ed wage ra t es .

b. Health benefits ~ Said full-time and part-time employees paid at the lowerliving wage rate shall be provided health benefits of at least $1.62 perhour. Contrac tor shall provide proof that health benefits are in effect for


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those employees no later than 30 days after execution of the contract orreceipt of City financial assistance.c. Com pensa ted days off - Said emp loyees shall be entitled to twelvecompensated days off per year for sick leave, vacation or personalnecessity at the employee's request, and ten uncompensated days off peryear for sick leave. Employees shall accme one compensated day off permonth of full time employment. Part-time employees shall accruecompensated days off in increments proportional to that accmed by full-time em ployee s. The employ ees shall be eligible to use accrued days offafter the first six months of employment or consistent with companypolicy, whichev er is sooner. Paid holiday s, cons istent with establishedemployer policy, may be counted toward provision of the required 12compensated days off Ten uncompensated days off shall be madeavailable, as needed, for personal or immediate family illness after theemployee has exhausted his or her accrued compensated days off for thatyear.

d. To inform employees that he or she may be eligible for Earned IncomeCredit (EIC) and shall provide forms to apply for advance EIC paymentsto eligible em ployees. There are several we bsites and other sources . - _ .:.k\a:i Iavail_abre4tp"-.assistiyou:- W eb> .sites unc lud e-,bu t are^mpt Jimited>toH-(4j)]-,:\a'i- ^^'^"''^ '''httD '://w ww ;www ebta x:= "''co rn/c r'ed its/ ea rned in co m e 'c re d i th tm ^ "Tor '-''"'''' -' - ^current guidelin es as prescribed by the Intem al

oakland marijuana cultivation rfpa

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