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HomeMy WebLinkAboutSLO CAL Roots Business Plan - completeCannabis Commercial Business Operator Permit Application Presented to the City of SLO on ,behalf of January29th, 2019 January 29, 2019 City of San Luis Obispo, Community Development Department 919 Palm Street, SLO CA 93041 p: 805.781.7100 Re: Cover letter to accompany Cannabis Commercial Business Operator Permit Application submitted by SloCal Roots, LLC, for property located at 5353 South Higuera Street, San Luis Obispo, CA 93401 To City of SLO Community Development Department: SloCal Roots, LLC, hereby submits our application for a cannabis commercial business operator permit. Our group appreciates your careful and thoughtful consideration of the following application, and invites you to reach out to us with any questions or clarification. We want to thank you in advance for your time. SloCal Roots, LLC, is owned by myself, Austen Connella, as well as Stephan Kennedy, Marissa Danielle Saucedo, and Chloe Watkins. My passion has always been in providing in -need patients with a quality product that has been grown organically and sustainability, which is why I incorporate regenerative -agricultural and biodynamic-farming techniques. When forming my application team, it was important to me that I bring on individuals who I know share my passion and vision. We're proud to compete for one of the first cannabis retail permits, and we're confident the City will be proud to have chosen us. The SloCal Roots team is entirely comprised of long standing local San Luis Obispo County residents, which we believe is a tremendous strength, given the unique culture, economy and community of San Luis Obispo. We are confident that our relevant industry experience, well-rounded skill sets, business acumen, financial strength and deep local connections set us apart from other applications I am excited about the opportunity that this industry will bring to San Luis Obispo, and to the individuals, such as myself, who have worked tirelessly, advocating for the legalization and more mainstream acceptance of a product that we have believed in for years. Thank you, Austen Connella slocalroots@gmail.com Table of Contents 01 - Business Operations Plan 1.1 - Business Plan 1.2 - Community Relations Plan 1.3 - State Licenses 1.4 - Tax Compliance 1.5 - Insurance 1.6 - Budget 1.7 - Financial Capacity 1.8 - Products and Services 02 - Community Benefit 03 - Education Plan 04 - Security Plan 05 - Lighting Plan 06 - Site and Floor Plans 07 - Water Efficiency Plan 08 - Odor Control Plan 09 - Hazardous Materials Plan 10 - Energy Efficiency Plan 11 - Addendums 11.1 -Tax Documentation Austen Connella Marissa Saucedo Chloe Watkins 11.2 -Articles of Incorporation 11.3 - News and Media FAMILY <b FARMS SloOCA1, 6;perld SECTION 01 BUSINESS OPERATIONS PLAN FA -MILS' F RM SLO CA4 frrld * SECTION 01 BUSINESS OPERATIONS PLAN Sub Section 1.1 Business Plan SloCal Roots Business Plan Sub Section 1.1 Business Plan Outline: Company Ownership Company Bio Owners' Bios Owners' Income Mission & Goals Market Analysis Compliant Cannabis Business Operations Company Structure Property Ownership Proposed Site Summary and Improvements Hours of Operation Environmental Commitments Community Benefit Commitments Employee Compensation Commitment Advertising and Messages Operations, Best Practice, and Regulatory Compliance Local Enterprise Company Ownership Austen Connella — Company Bio SloCal Roots developed out of SloCal Roots Farms, a leading cultivator of outdoor medical cannabis in San Luis Obispo County. All of SloCal Roots Farms products are sun -grown from clones or seeds in 100% custom -mixed organic living soil, then spring -watered, slow -cured and hand -trimmed. We do NOT use ANY pesticides OR growth hormones. With decades of combined experience in the cannabis industry, the team at SloCal Roots Farms relentlessly pursues industry excellence on behalf of its clients and the environment. Quality control is of paramount importance at our Farm. Owners Bios Austen Connella grew up in SLO County where he graduated from Atascadero High School and attended Cuesta College. He attended San Francisco State University where he studied Entrepreneurship with an academic focus on the developing medical cannabis industry. He has been a medical customer since 2000 and has been cultivating cannabis in accordance with State Law ever since. Austen has started several customer -based groups including his current farm and collective SloCal Roots Farms. Austen was the first applicant for a brick and mortar dispensary in San Luis Obispo County. He worKea cioseiy wim county start Tor z years to aeveiop a cannabis dispensary ordinance and also served on the sub -committee for the City of Morro Bay for the draft cannabis ordinance in 2011. As acting Deputy -Director and founding member of both the SLO NORML chapter and the Central Coast Cannabis Council, Austen is very involved in local cannabis activism, shaping responsible policy and growing the industry. A second generation cannabis farmer, Austen grew up around the cannabis plant and has deep admiration for its medical benefits. He specializes in organic and sustainable farming techniques but also has years of experience in manufacturing and consulting. He has 20 years of experience in indoor, greenhouse, and outdoor cultivation. He specializes in sustainable farming practices and has a considerable knowledge of developing a soil web food system. Austen always strives to implement regenerative agricultural and biodynamic farming techniques in all his project. Stephan Kennedy was born and raised in San Luis Obispo County and graduated from Atascadero High School in 1993. Stephan is a local business owner and operator, founding Lesco Automotive more than 20 years ago. Stephan also owns commercial property throughout SLO County including the proposed dispensary site at 3535 South Higuera. Stephan has always had an open mind about cannabis and when the opportunity to be part owner of SloCal Roots dispensary presented itself, he seized it. Marissa Danielle Saucedo was born and raised in San Luis Obispo County, graduated from San Luis Obispo High School in 2004, and attended Cuesta College. Today she lives in San Luis Obispo. She has experience as a volunteer at Woods Humane Society and in her son's classroom at Laguna Middle School. She's always worked minimum -wage jobs and has managed to raise two children, ages 3 and 13. A single mom, Marissa works in retail food service at Sierra Vista Hospital. Her mother and father both attended Cal Poly and today her father, Jamie Saucedo, runs his own roofing business. Marissa's mother is a cancer survivor. Marissa became familiar with the medicinal qualities of cannabis while helping her mother deal with chemotherapy, during which her mom ingested edibles and smoked medicinal flower to help ameliorate the effects of the treatment. Chloe Watkins moved to the Central Coast about five years ago when she was offered an opportunity to work for Austen Connella on his farm. She quickly fell in love with the Central Coast and her job serving medical cannabis patients. Over the last 6 months she has been working for one of the 2 local dispensaries in the County, which has given her a passion for helping provide people with an alternative way of dealing with serious medical ailments. She feels fortunate to have the opportunity to, once again, work with Austen at SloCal Roots' new dispensary location, and to share in the ownership of this booming new industry. She looks forward to working hard and providing an amazing service to the community of San Luis Obispo. Owners' Income SloCal Roots principles, Austen Connella, Marissa Saucedo, and Chloe Watkins, have historically, and at the time of this application, earned household income level. Please reference the Tax Compliance section for additional compliance information. Mission & Goals Afters spending so many years working with local municipalities in an effort to open a medical cannabis storefront in San Luis Obispo County, the opportunity is finally here. SloCal roots is jumping at the chance to open a cannabis storefront in the City of San Luis Obispo. Austen and his team of individuals with extensive industry experience are prepared to bring the City a top notch, state of the art, cannabis storefront. Austen has been preparing for this day since 2010, it is probable that no local operator is more prepared for operating a cannabis store. Once chosen, SloCal Roots will continue its passion for cannabis and will share this love of cannabis with the people of San Luis Obispo. Our goal is to provide the best cannabis, facilities, service, and education. By achieving our goals, SloCal Roots will continually raise the bar for cannabis in San Luis Obispo. Market Analysis Compliant Cannabis Business Operations SloCal Roots Primary Principal, Austen Connella, has operated a compliant cannabis business in SLO County for 8 years as a commercial cannabis cultivator and Prop 215 Delivery Service operator. The principals of SloCal Roots have always operated their businesses according to California State law. Neither SloCal Roots Farms nor its owners have ever received a code -violation or infraction of any kind during their many years of cannabis business operations. Company Structure SloCal Roots LLC is registered in the State of California. Property Ownership SloCal Roots LLC has control of the proposed dispensary property. Please see the purchase agreement in the end of this section. Proposed Site Summary and Improvements SloCal Roots proposes a complete overhaul of the property at 3535 South Higuera St. San Luis Obispo, CA 93401. Proposed improvements include a complete renovation of the building. The building will be converted into a perfect example of a cannabis retail operation. With facade improvements, security improvements, the addition of artistic elements, a complete remodeling of the interior and an extensive re -landscaping with drought tolerant plants, this little known building will become a shining star in its neighborhood. Please see Section 6: Site and Floor Plans. Proposed Hours of Operation SloCal Roots will be open from 10am to 8pm daily. Environmental Benefits SloCall Roots proposes the following environmental benefits: Energy Efficient Appliances Bike racks for at least 8 bikes LED Lighting Employee Competition for Least amount of miles driven and financial rewards for riding bikes to work. SloCall Roots will apply for a green building certification. Community Benefits Commitments It is an important part of SloCall Roots corporate culture to treat all individuals with equal respect and provide equal opportunity for all people regardless of race, color, ancestry, age, genetics, gender, marital status, veteran status, medical condition, disease, sexuality, religion, or any other class of individual. SloCall Roots also plans many social outreach programs including educational outreach programs, neighborhood outreach programs, public health outreach programs, and more. (See section 2.0 Community Benefit) Employee Compensation Commitment SloCal Roots promises to provide a rate of pay for entry level and mid level positions that is at least 40% more than the median local income for similar positions in other mainstream businesses. SloCal Roots will exceed minimum wage by at least $3.00/hr. SloCal Roots is obligated to allow "labor peace agreement" at 20 or more non -management employees. Advertising and Messages SloCal roots maintains a goal of education. This goal will lead us to work on messaging campaigns to inform the public about the dangers of cannabis and minors as well as the danger of Cannabis Use Disorder. SloCal roots will make all reasonable efforts to prevent persons under the age of 21 from having access to cannabis. No customer of member of SloCal Roots may provide cannabis to anyone under the age of 21. SloCal Roots will ensure that all advertising and media is directed at adiences 21 years of age and older. Cartoons or other images and themes that are appealing to children will not be used in any part of SloCal Roots operations, neither will the words "candy" and "candies" be used. Operations, Best Practices, and Regulatory Compliance SloCal Roots seeks to establish a cannabis dispensary operation in the City of San Luis Obispo. As one of three dispensaries in the City, SloCal Roots will have the chance to demonstrate itself as a regulatory compliance leader by operating its dispensary the industry best practices found in the industry. SloCal Roots' operations plan (OP) is rooted in providing amazing customer service and fulfilling all regulatory compliance. As industry best practices dictate, the Manager will oversee and maintain an inventory control system and a staff organization system. Managers will make sure that employees use the industry best practices identified in this document throughout all operations. SloCal Roots will separate and designate the dispensary's staff in accordance with various operational groups, including: reception, customer service, management, security, facility management, and inventory tracking. SloCal Roots has developed exhaustive operating procedures and policies concerning the dispensing of cannabis to qualified adults 21 years of age and older in the City of San Luis Obispo. Dispensing cannabis will require a few key positions, including: Receptionist, Budtender, Manager, Assistant Manager, and Security. Best Practice and Regulatory Compliance SloCal Roots will operate its dispensary in full compliance and in spirit with the San Luis Obispo Municipal Code, the Medical and Adult -Use Cannabis Regulation and Safety Act (MAUCRSA), and any other local or state ordinance regulating the safe dispensing of cannabis. Reporting and Tracking Product and Sales As discussed in further detail below, SloCal Roots will have a point of sale (POS) tracking system in place to track and report on all aspects of inventory and sales. The Manager will ensure that such information is compatible with the City's recordkeeping systems. The system will have the capability to produce historical transactional data for review by the City or other regulating agencies. SloCal Roots will use both digital and physical inventory control methods. SloCal Roots will use the POS to act as both the point -of -sale and inventory control and reporting system required by the City and State and to comply with the electronic database requirements of Article 7.5. Unique Identifier and Track and Trace Program by the Department of Food and Agriculture. Inventory SOPs will include instructions for the recall of cannabis and cannabis products, and its destruction. Recordkeeping SloCal Roots will establish record keeping protocols that ensure data is collected, inputted, and tracked in a system that is responsibly maintained. SloCal Roots will retain all dispensary records onsite for seven years, in compliance with Business and Professions Code 19327 in MAUCRSA. The Manager will ensure that electronic records storage systems adhere to State and City regulations. Dispensary employees will use the point of sale tracking system and other business management platforms to record all dispensary activity, including but not limited to: License information; Accounting data; Advertising; Approved vendors; Criminal and policy violation investigations; Employment data, including background checks and employee training records; Regulatory inspections; Standard operating procedures, including updates and accessibility; Recall data; Visitor logs; Inventory reconciliation logs; Safety Data Sheets (SDS) for all chemicals (cleaning agents); and Waste management and product destruction. SloCal Roots will create and keep written and electronic records of all inventories. Records will include: the date of the inventory, a summary of the inventory findings, and the employee, and titles of the individuals who conducted the inventory review. Employees will use the point of sale tracking system to manage all inventory from the time it enters the dispensary to the time it is sold to customers. The tracking system will record all inventory levels. As part of closing procedures, Budtenders and Assistant Managers will fill out inventory reconciliation logs and compare physical inventory with digital inventory. Visitor Logs SloCal Roots defines visitors as any person on the premises that is not employed by SloCal Roots, including a registered customer or person certified to work in a licensed cannabis facility. An employee will accompany visitors at all times while the visitors are on the premises. When arriving all visitors must check in with the receptionist. The Receptionist will require that the visitor present their government issued photo ID. Every visitor will write their name, signature, and time and date of arrival, and purpose of visit, in a visitor log form. This log will show the name, time of arrival, and purpose of each visitor. After completing the visitor log, the Receptionist will give visitors a visitors' badge if they are going to enter any part of the premises other than the reception area, the retail area, or the bathroom. Financial Records SloCal Roots knows the value of good bookkeeping. SloCal Roots has used and will use a certified public accountant (CPA) to manage company financial records. SloCal Roots will keep financial records for a minimum of seven years. Packaging and Labels SloCal Roots' Cannabis product packaging cannot resemble traditionally available food packages and must be tamper -evident, re -sealable if the product includes multiple servings, and child -resistant. In addition, packaging for edibles must be opaque. All manufactured products must be packaged according to regulatory standards before they are released to a distributor. Cannabis product labeling may not refer to the product as a candy, be attractive to children, make health claims or include cartoons. The labeling requirements fall into two categories: primary panel requirements and informational panel requirements. The primary panel is the portion of the label that is most likely to be displayed to the consumer at retail. The informational panel can be located anywhere else on the package. Cannabis product packaging cannot resemble traditionally available food packages and must be tamper -evident, re -sealable if the product includes multiple servings, and child -resistant. In addition, packaging for edibles must be opaque. All manufactured products must be packaged according to regulatory standards before they are released to a distributor. Compliance requires that labels will contain the following information; prominently displayed and in a clear and legible font: The cultivation and manufacture date and source of cannabis; The statement, "SCHEDULE I CONTROLLED SUBSTANCE"; The statement, "KEEP OUT OF REACH OF CHILDREN AND ANIMALS" in bold print; The statement, "FOR ADULT USE ONLY"; The statement, "THE INTOXICATING EFFECTS OF THIS PRODUCT MAY BE DELAYED BY UP TO TWO HOURS" The statement, "THIS PRODUCT MAY IMPAIR THE ABILITY TO DRIVE OR OPERATE MACHINERY. PLEASE USE EXTREME CAUTION" For packages containing only dried flower, the net weight of cannabis in the package; A warning if nuts or known allergens are used in the manufacturing of the cannabis products; A list of ingredients and pharmacologically active ingredients, including but not limited to, tetra hydrocannabinol (THC), cannabidiol (CBD), and other cannabinoid content, the THC, CBD, and other cannabinoid amount in milligrams per serving, servings per package, and the THC, CBD, and other cannabinoid amount in milligrams for the package total. A clear indication, in bold type, that the product contains cannabis; Any other requirement set by the bureau or the California Department of Public health; and Information associated with the unique identifier issued by the California Department of Food and Agriculture pursuant to Section 11362.777 of the Health and Safety Code. Budtenders will offer educational materials regarding dosages. It is a primary goal of SloCal Roots to ensure that all customers are fully informed about their cannabis products. Doing this will prevent customers from having unpleasant and stressful experiences from the over consumption of cannabis. Quality Control SloCal Roots maintains comprehensive Quality Control Procedures. These include but are not limited to: definitions of quality, detecting defective products, and verifying product labeling compliance. Every employee handling cannabis products throughout the supply chain including Budtenders will check for compliance as they handle products. The Manager will review inventory records to ensure that product is being properly handled including rotation. Even SloCal Roots Quality Control operating procedures are subject to review and change. SloCal Roots will review and change operating procedures as required by State and City regulations. All employees of SloCal Roots should be constantly monitoring their inventory. In addition to the inventory reconciliation logs provided by the Budtenders and the inventory procedures by the Assistant Manager, the Manager will also perform compliance tasks related to inventory including but not limited to: Random verification of batches of live inventory and backstock inventory against the POS. Random verification of transactions to ensure that no customer is being overcharged and that no diversion can occur. When a customer complains to any employee or through any medium including social media, the Manager or an assistant manager will attempt to contact the individual through the appropriate means. When available, such as on on yelp, the Manager will write a public response. The Manager will review the complaint and potentially take disciplinary action and adjust operating procedures to prevent the recurrence of such challenges. If a bigger problem than a customer complaint arises, SloCal Roots will respond to any challenges it faces. When necessary, the Manager will review the problem then potentially take disciplinary action and and adjust operating procedures to prevent the recurrence of such challenges. SloCal Roots is committed to maintaining close ties with customers. When filling out the new customer form, customers will be able to opt -in to receive email alerts, updates, newsletters, voicemaikbroadcasting recall alerts, and text message alerts. Not only will this keep customers informed about SloCal Roots, cannabis, regulations, and more, it will also give SloCal Roots a powerful way to notify customers of product recall. When communicating with the press, only Officers and Managers will make prepared statements. If the City or the California Department of Public Health issues a recall notice for a product, the Manager will ensure that all of that recalled product is removed from active and back stock inventories. The secure storage room will contain a box designated for recalled product known as the Dead Product Box. Assistant Managers will place products that are expired, damaged, deteriorated, mislabeled, contaminated, recalled, or whose containers or packaging have been opened or broken in this storage area. All products meeting these requirements will be tagged with a bright orange label with the message NFS (Not For Sale). When moving cannabis into or out of the Dead Product Box, all changes will be entered into the POS. Dead Product Box products must meet the following conditions before being relocated: The product is being moved to be destroyed or disposed in accordance with all laws; The product is being returned to a compliant distributor with the required identification and shipping manifest, who represents the originating facility of the recalled product and who has arrived onsite to take custody of the unsellable items; and Storage and Limited Access Maintaining a high level of customer experience and a high level of efficiency is key to the operations of SloCal Roots. SloCal Roots will control the quality of its employees by conducting employee reviews every 180 days. In our efforts for continual improvement, SloCal Roots will identify each process in the dispensing operation and remove, edit, or reassign any process that fails to meet the measure of improvement. Employees will have consistent access to employee resources that provide them with the tools to greater enhance their position and ability within the operation. The designated Employee Manager will provide employee tools, including: employee handbooks and training manuals, training, administrative services, coaching, and advice. The designated Employee Manager's goal will be to assist all personnel in reaching their potential within the company. Daily monitoring of job performance and regular evaluations will empower SloCal Roots to be the best dispensary in the area. Discrimination SloCal Roots will welcomes people of all backgrounds and groups. SloCal Roots is committed to providing a safe workplace for all individuals regardless of ancestry, genetics, veteran status, color, nationality, marital status, disease, race, age, gender, gender identity, sexual orientation, or ability. The company maintains a zero -tolerance policy for discrimination and employees are encouraged to report any and all occurrences of workplace discrimination. The designated Employee Manager will supervise staff for discrimination in the workplace and immediately address any discovery of discrimination. SloCal Roots will train employees to identify workplace discrimination. Employees who discriminate will be disciplined up to and including termination. SloCal Roots will train employees to recognize overt discrimination such as verbal or written threats, intimidation, harassment, or assault. SloCal Roots will also train employees to recognize covert discrimination. An example of covert discrimination is when a Male colleague treats their female counterparts differently, by being extra polite or chivalrous with them. All types of discrimination that puts individuals at a disadvantage in the workplace. SloCal Roots recognizes that culture and society are ever evolving and consequently SloCal Roots will reevaluate its operating procedures each year. Also SloCal Roots will encourage employees to suggest changes to standard operating procedures if they feel those company processes are even in the slightest discriminatory to themselves or any diverse individual. SloCal Roots will implement hiring policies that aim to prevent the occurrence of discrimination. During the hiring process, Managers will develop a list of skills and qualities that are required for the job. Resumes will the be reviewed and selected for interviews based on this list. SloCal Roots may also subject the applicant to tests of knowledge and skill. Harassment SloCal Roots will work to create a workplace that is free of sexual harassment and harassment. The designated Employee Manager along with other managers and supervisors, will watch staff for proper workplace conduct. There are many ways in which SloCal roots will seek to prevent harassment such as harassment awareness training sessions and sensitivity workshops, which will be required of all employees. Not only will employees be trained to not engage in harassment themselves, they will also be trained to recognize and acknowledge when harassment occurs around them. Employees will be trained to report any behavior that is harassing, distracting or that interferes with operations. SloCal Roots will not tolerate sexual harassment of any kind, and violators may face immediate job termination and possible legal prosecution. Drug -Free Workplace SloCal Roots intends to help provide a safe and drug -free work environment for our clients and our employees. With this goal in mind and because of the serious drug abuse problem in today's workplace, we are establishing the following policy for existing and future employees. SloCal Roots explicitly prohibits: The use, possession, solicitation for, or sale of narcotics or other illegal drugs, alcohol, or prescription medication without a prescription on Company or customer premises or while performing an assignment. Being impaired or under the influence of legal or illegal drugs or alcohol away from SloCal Roots or customer premises, if such impairment or influence adversely affects the employee's work performance, the safety of the employee or of others, or puts at risk SloCal Roots' reputation. Possession, use, solicitation for, or sale of legal or illegal drugs or alcohol away from SloCal Roots or customer premises, if such activity or involvement adversely affects the employee's work performance, the safety of the employee or of others, or puts at risk SloCal Roots' reputation. The presence of any detectable amount of prohibited substances in the employee's system while at work, while on the premises of SloCal Roots or its customers, or while on company business. "Prohibited substances" include illegal drugs, alcohol, or prescription drugs not taken in accordance with a prescription given to the employee. SloCal Roots will conduct drug and/or alcohol testing under any of the following circumstances: If an employee is tested for drugs or alcohol outside of the employment context and the results indicate a violation of this policy, or if an employee refuses a request to submit to testing under this policy, the employee may be subject to appropriate disciplinary action, up to and possibly including discharge from employment. In such a case, the employee will be given an opportunity to explain the circumstances prior to any final employment action becoming effective. Employee Benefits SloCal Roots recognizes that maintaining a quality workforce requires a balance of management, pay, training, corporate culture, and employee benefits. Every employee will be employed at will. SloCal Roots will ask employees at the time of their interview what their availability is, managers will only schedule employees during their available times. If an employee has a change of availability, Management will do its best to accommodate these changes while maintaining the number of shifts for that employee when possible. SloCal Roots corporate culture dictates that we are a team and as such every team member is treated with equal value. Another benefit of SloCal Roots will compensate employees with a determined amount of sick leave hours and paid time off (PTO) depending on their occupation. SloCal Roots corporate culture of loyalty dictates that we try to hire from within. Employees such as Budtenders and Receptionist will be given opportunities to prepare themselves for promotion to a supervisory role. Employees will also be paid at least $3.00 over minimum wage and for entry level and mid level jobs, at least 40% more than similar positions in other industries. Employee Training SloCal Roots employee training program will be extensive and exhaustive. Employees will receive training on regulatory compliance, customer service, safety, communications, cannabis, and so much more. The Manager and Assistant Managers will be responsible for the training of employees. These training programs are mandatory for all staff before they begin interacting with the public or other entities. Employees will be required to perform all tasks in accordance with their training and the operating procedures of SloCal Roots. SloCal Roots will continually work to reevaluate and refine training programs and materials. The Manager will conduct performance reviews to ensure that employees are being effectively trained. SloCal Roots will post safety precautions around the premises when needed. Employment Terms and Conditions Employees will sign that they have received and acknowledged the employment terms and conditions offered by SloCal Roots. These conditions will include the terms of pay. SloCal Roots will require each employee to agree to a nondisclosure agreement by which each employee will agree to not share or distribute or disperse any intellectual property of SloCal Roots. All products and materials pertaining to cannabis or SloCal Roots activity while on the premises of the licensed facility will be the property of SloCal Roots, including: strain information, plant material, facility equipment, dispensing techniques, written work, photographs, and social media engagements. Employee Records The designated Employee Manager will maintain accurate employee records for a minimum of seven years for each employee. Employee records include: Tax verification forms; Job descriptions; Contract terms; Training documents; Certifications; Performance evaluations; Drivers licenses; Car insurance (for deliveries); and Disciplinary actions. The designated Employee Manager will keep employee logs and hiring records. Logs will include: Emergency contact information; Registration number, Access credentials; Hire date; Separation date; Reason for separation; Resume; Salary and wages; Verification of references; and Background checks. SloCal Roots will use a performance reviews to track, and monitor employee performance training. The facts derived from these reviews will give managers the comprehension required when making decisions related to discipline, recognition, and promotion. The Manager will use the performance reviews to examine employees for core strengths. Inventory Tracking and Monitoring Prevention of diversion is one of SloCal Roots' top priorities. SloCal Roots has developed an inventory control plan. As previously mentioned, the Manager will divide sellable inventory into two separate types: active and back stock. The Manager will do their best to only put as much inventory as necessary in the active designation so as to limit liability. Most of the inventory will be in the backstock. The backstock inventory is to accessed only by managers to restock the active inventory. In line with regulations, SloCal Roots managers will do a inventory count and review every 14 days. Additionally managers will do a comprehensive review of cannabis products and all products at the premises. SloCal Roots will only conduct inventory procedures outside of hours when we are open to the public so to ensure that no products is being sold or moved during the inventory procedure. Our POS will reflect in real time all sales and movement of inventory. Budtenders and managers are required to input any transaction into the POS. Inventory reconciliation logs will be required to be filled out by Budtenders daily as a part of closing procedures, this involves physically counting the inventory. Budtenders will prepare an invenotry of their physical active inventory to create their inventory reconciliation log. An Assistant Manager will supervise and authenticate Budtender reconciliation logs with digital inventory. A key component for our POS is the ability to do inventory reconciliations and enter reasons for why there exist any discrepancies. If a significant discrepancy is found as defined below, then SloCal Roots will notify the State and the City as well as launch its own investigation. A significant excess is defined as a difference in actual inventory compared to records pertaining to inventory of at least $5,000 or 2 percent of the average monthly sales, whichever is less. For the purposes of this section, average monthly sales will be calculated by taking a per month average of the total sales for the previous 6 months. If SloCal Roots has not been in operation for at least 6 months, only the months in which the licensee was operating will be used in determining average monthly sales. The SloCal Root's acquisition price will be used to determine the value of cannabis products in a its inventory. As part of SloCal Roots inventory reconciliation procedure the Manager will keep in mind types of acceptable loss such as breaking or spoiling. SloCal Roots acknowledges that it is a team effort to prevent diversion and therefore all staff will be trained to identify suspicious activity. In the event that the discrepancy cannot be resolved, the Assistant Manager will report any known or suspected diversion, theft, loss, or criminal activity to the Manager. The Manager will then investigate and report the discrepancy to the State and the City and potentially the police, within 24 hours, in compliance with state law. When there is suspected diversion or losses caused by employees, the public, customers, or vendors, the Manager will report these suspicions to local law enforcement. Whenever a discrepancy or instance of diversion has been identified, the Manager will seek to discover the cause of the problem by reviewing documentation, the POS, and any relevant security footage. Once the cause has been identified the Manager can take action to prevent a similar occurrence. Each day before opening, Assistant Managers will check and make sure sufficient product is stocked in active inventory. Whenever an item in active inventory depletes, a manager will replenish the stock from the vault. At the end of the day, Budtenders will assist managers in making sure the inventory is stored in a way that is easily accessible. Point -of -Sale (POS) and Live Tracking SloCal Roots will use a cannabis industry -specific POS to manage inventory.. This system will track all sales, transfers, movements, and purchases of cannabis within the premises. The POS will allow SloCal Roots to monitor changes in inventory levels, product movement, and sales as they occur. The POS will allow the Manager to create employee logins so that each transaction is accountable by a single employee. All employees must be trained in the use of the POS. All employees will be proficient in entering all data into the POS as needed. SloCal Roots will use the POS to monitor the receipt, movement, sale, transfer, recall, and destruction of cannabis and products within the facility. SloCal Roots high level of management and training will ensure that the POS is being properly used at all times. Proficiency in using the POS will be required before any employee is approved to interact with the public and conduct sales. The successful implementation of a POS system is an invaluable resource for SloCal Roots as it will allow the Manager to oversee remotely and on the premises the sales trends and keep a close eye on possible diversion. Inventory Auditing In order to maintain the accuracy of SloCal Root's POS and records, regular inventory audits will be conducted. The Manager will make sure that all employees are entering all information into the POS. The Manager will perform audits on a regularly. In addition to regular audits, SloCal Roots' Manager may conducts additional audits when events require, such events may include, termination of an employee, a diversion incident, or an inspection. It will be the duty of the Manager to further develop their inventory and auditing operating procedures and do so in a way that creates hard and electronic copies of their findings. SloCal Roots will maintain these records for use by law enforcement and regulatory officials for at least seven years. These records will include the date of inventory, amount of cannabis on hand, amount of cannabis sold since the last weekly audit, disposal of cannabis, summary of inventory findings, and the information on the employee conducting the audit, in compliance with all track and trace program requirements. Inventory Records To maintain relevant inventory records, the Manager will update the POS as required particularly after inventory counts, reconciliations, and audits. SloCal Roots will create and keep written and electronic records of all inventories in compliance with State law. SloCal Roots anticipates creating almost no cannabis waste, however the Manager will keep detailed records of any cannabis waste originating from the premises. Records Back -Up System In order to prevent the loss of data, SloCal Roots will responsibly and accurately maintain data. SloCal Roots will utilize a 256 bit encrypted cloud -based platform to back-up and record all electronic data. In addition to backing -up on the cloud, SloCal Roots will collect, file, and archive both physical and digital records. SloCal Roots will keep digital records, in duplicate, on both the POSTS and a cloud -based platform or local drive. SloCal Roots will keep records for no less than seven years. SloCal Roots operating procedures are comprehensive and are will successfully control inventory to prevent diversion and ensure full compliance with all applicable local and state regulations. The managers and staff will maintain accurate physical and digital records of operations within SloCal Roots' facility. SloCal Roots will maintain all records on the premises for at least seven years. Schedule and Timeline for Dispensary Opening SloCal Roots maintains the goal of opening its doors within three months of being selected in the application process. Banking Practices SloCal Roots will hire a third -party business management company to handle cash and bill payments for SloCal Roots. This company will manage all revenue generated by SloCal Roots in full compliance with the law. The cannabis industry faces many unique challenges, SloCal Roots will always seek professional advice from experts whenever faced with a problem they are unable to solve. Neighborhood Compatibility SloCal Roots strives to be a good neighbor. We will take many steps to mitigate any potential negative impacts that our operation may have on not only our neighborhood, but the City as a whole. Not only will we mitigate any impacts, we will go above and beyond to be the best neighbor and business anyone could ask for. Our procedures and plans to mitigate impact include reasonable store hours, compliant packaging & labeling, diversion prevention, ethical advertising, proper signage, neighborhood watch participation, odor reduction, and noise reduction. SloCal Roots strives to be a leader in its community, as such SloCal Roots will work closely with local the City, its neighbors, and law enforcement. This will allow SloCal Roots to nip it in the bud" so to speak when it comes to arising of potential problems. It is the continued interaction with our community that will be the core of our neighborhood compatibility plan. Good Neighbor Standards SloCal Roots understands that each neighborhood is unique and diverse in its own way and SloCal Roots will be accepting and inviting. By following the golden rule, being kind and giving, improving the building, and being mindful of noise and parking, SloCal Roots hope to raise the bar on what it means to be a good neighbor. This commitment informs every aspect of SloCal Roots' operations from our interactions with customers to our interactions with the City. SloCal Roots will work to ensure that its presence it a positive for the community. Won't you be our neighbor? Location A new cannabis dispensary has the potential to impact a community in various ways. SloCal Roots has extensively reviewed the City's cannabis zoning maps and chosen a location with excellent neighborhood compatibility which will be a powerful factor in mitigating potential impacts. The nearest residence is over 600' away. The building is surrounded by a mix of retail, commercial services, and manufacturing. After careful review, the principals selected their facility location at 3535 South Higuera in order to uphold the City's ordinance, their own plans for their business, and the interests of the community. Design & Construction Our commitment to be a good neighbor has also influenced our plans and designs for the premises at 3535 South Higuera. Design factors such as security, aesthetics, and appearance, have been developed based on their compatibility with the neighborhood and the community. These designs will achieve excellent compatibility while at the same time allowing SloCal Roots to operate in manner that it can achieve its goals whole remaining compliant with state and local regulations. By using an existing building, SloCal Roots will be able to operate sooner therefore generating revenue for the City sooner and at the same time have significantly less impact from construction. SloCal Roots will only generate noise associated with construction, during the hours and 7AM and 7PM, Monday through Friday, or during the hours of 8AM and 5PM on Saturday or Sunday, this commitment exceeds the City's noise ordinance standards. All construction and renovations will be done in compliance with all city and state regulations including following building code, obtaining building permits and any other requirements set forth. Additionally, SloCal Roots commits to maintaining a tidy jobsite that will take all reasonable measures to mitigate construction impacts on its neighbors. Community Involvement and Benefit SloCal Roots will be a dedicated member of the community. Please see Section 2: Community Benefit. Good Neighbor Procedures The following procedures will aid to mitigate any potential impacts SloCal Roots operations may have on the community. Store Hours Some potential impacts SloCal Roots may have on its neighbors are increased traffic and noise during our hours of business. SloCal Roots proposes to be open to the public during the hours of 10AM and 8PM, seven days a week, closed some holidays. This is in compliance with state law. Keeping these regular and limited business hours will help make SloCal Roots a more compatible operation with its neighbors. Outside of SloCal Roots open hours, SloCal Roots will have ongoing operations for administrative and security purposes. Employees working outside of these hours will be trained to be quiet and respectful so as to not impact the neighborhood. SloCal Roots' will meet the City's requirements for parking at the premises. SloCal Roots' hours are subject to change if there were to be concerns or changes in regulations. Packaging & Labeling SloCal Roots will only purchase compliant product from licensed distributors or manufacturers in compliance with all state and local regulations. Such product will be inspected by a manager prior to accepting it to ensure that it is properly labeled and compliant with state and local regulations. No product that is deemed incorrectly labeled by a manager shall be sold by SloCal Roots. Such product will be returned to the distributor or manufacturer. Although the regulated market has many points of inspection, SloCal Roots will make additional efforts to ensure that the products that end up in the public's hands are fully compliant and correctly labeled. This is one more way that SloCal Roots will be an excellent Neighbor. Diversion Prevention As previously discussed SloCal Roots has many operating procedures in place that will work to prevent diversion. Ensuring that cannabis is only dispensed to qualifying persons over the age of 21 is an essential part of being a good neighbor. An extensive and powerful security system will be installed that will meet the requirements all local and state regulations. Please see Section 6 of this application. The POS that SloCal Roots will implement is another tool that is essential in the prevention of diversion. SloCal Roots' managers will perform physical inventory audits to confirm records in the POS and will notify San Luis Obispo Police Department SLOPD) and the State within 24-hours of identifying a discrepancy. Security personnel will verify the age of every person before they enter the building. Cameras on the exterior of the building and routine patrolling of the premises will deter unlawful behavior. SloCal Roots will update all diversion prevention practices to maintain compliance with the law and address any further concerns expressed by the public. Advertising All advertising and promotions sponsored by SloCal Roots will be directed at persons 21 years and older. Any direct contact marketing will require the use of age verification to verify that the recipient is 21 years of age or older, this will be done before the advertising is commenced. All advertising and messaging will be labeled for 21 years and older only. No products, advertising, or branding will be attractive to children —This includes using cartoons, images popularly used to advertise to children, imitating candy labeling, and using the words "candy" or "candies" anywhere on the label. SloCal Roots commits to make all advertising tasteful and relevant with an emphasis on information. Billboards will not be used for SloCal Roots advertising and messaging. SloCal Roots understand the power of social media and commits to handling its social media in a way that informs and benefits the community. SloCal Roots commits to working with regulators and the City if there were to be any concerns about SloCal Roots' advertising or messaging. Exterior signage will also be done tastefully. Please see Section 6: Site and Floor Plans, for elevations depicting proposed signage. SloCal Roots will always seek guidance from the City when proposing new signage. Crime Prevention Efforts SloCal Roots will report all significant inventory discrepancies; diversion, theft, loss, or any criminal activity involving the business or employees; loss or alteration of records related to cannabis, employees, or agents of the business; and any other breach of security to the SLOPD and the State within 24 hours of discovery. Security cameras will be supervised by an offsite or onsite security guard. Security cameras will alert the security guard of motion and the security guard will have the ability to speak over a speaker attached to the camera to anyone on the premises. Security guards will also at times actively patrol the facility grounds to monitor activity and maintain an active security presence at the facility. SloCal Roots will also be a contributing member to its local neighborhood watch group and will coordinate with the group so as to have a larger impact on crime in the community as a whole. SloCal Roots will review its procedures for crime prevention and update them as guided by management as well as local input. Noise Reduction SloCal Roots' retail operations will not be a consistent or interfering source of noise. Noise expected from this operation includes increased traffic, hvac and air filtration systems, and routine deliveries. SloCal Roots will only use appliances that emit noise that is not readily noticeable at a distance of 20 feet. All equipment and fixtures will be maintained regularly so that they do not increase in noise. SloCal Roots will address any noise complaints within 24 hours of notice. Community Relation Plan Please see Section 1.2: Community Relations Plan Odor Control Please see Section 8: Odor Control. Local Financial Benefit SloCal Roots will hire upwards of 20 individuals to work in the dispensary and all of the employees will be residents of San Luis Obispo County with a preference for residents of San Luis Obispo. By hiring only locals, SloCal Roots employees will have an understanding of the community, this will also ensure that the business can operate in an more environmentally friendly wy if employees can commute less. SloCal Roots will encourage and incentivize its employees to use public transportation or ride their bikes. SloCal Roots will create sought after jobs that can support individuals and families in our community, please see"Employee Compensation Commitment" section above. Other benefits of SloCal Roots operations will be its need for support form a long list of other local businesses including but not limited to: contractors, construction, transportation, security, accounting, cleaning, document handling, and systems. SloCal Roots will make it a priority to engage and work with local contractors and ancillary businesses whenever possible. SloCal Roots strives to be a driving force for improvement and economic activity in our community. Summary SloCal Roots' efforts are founded upon Austen Connella's extensive experience, efforts, and demonstrated success in the cannabis space and in regulatory change. Austen has a demonstrated history of compliance and ability to work side by side with officials. Austen will lead SloCal Roots' with a philosophy of compliance and compatibility that will permeate the corporate culture. From the tax revenue the operation will generate to our commitments to compliance and the community, the sum of SloCal Roots' operations will be an immeasurable positive to the community. F1-MI U1' " FARM S SLO CA4 6;preld * SECTION 01 BUSINESS OPERATIONS PLAN Sub Section 1.2 Community Relations Plan SloCal Roots Community Relations Plan Sub Section 1.2 SloCal Roots owner(s) or their representative will introduce themselves to the surrounding community on behalf of SloCal Roots. SloCal Roots will reach out to community member in person and by mail. SloCal Roots will schedule regular meetings with community members to address concerns. Austen Connella will serve as Community Relations Manager for SloCal Roots. Austen will be designated responsible for outreach and communication with the surrounding community, including the neighborhood and businesses. Austen Connella can be contacted by email, phone, or mail at any time SloCalroots@gmail.com Austen Connella qualifications for the position of Community Outreach Manager include Founding Member and Current Board Member - Central Coast Cannabis Council Founding Member and Current Board Member - SLO NORML Member - SLO County Cannabis Advisory Group FAMILY \ b FARMS SLO CAA o©lr SECTION 01 BUSINESS OPERATIONS PLAN Sub Section 1.3 State Licenses SloCal Roots State Licenses Sub Section 1.3 Austen Connella holds a Temporary State License for Mixed Light Tier 1 cannabis cultivation in SLO County: Ta118-0004385. CdfaCAllFO RNIA DEPARTMENT O FOOD & AGRICULTURE e., Legal Business Name: SLOCAL ROOTS FARMS Premises APN: San Luis Obispo County - 048-151-059 Premises Address: 7731 Suey Creek Rd Santa Maria, CA 93454 NON -TRANSFERABLE ---- California Department of Food and Agriculture 1220 N Street Sacramento, CA 95814 ON LICENSE lalid: 06/08/2018to 4/5/2019 icense Number: TAL18-0004395 icense Type: Temporary -Medium Mixed -Light Tier 1 POST IN PUBLIC VIEW COMMERCIAL CANNABIS LICENSEE BOND Business and Professions Code Sections 26051-5 and 26070 California Code of Regulations, Title 3, Section 8102(n) 1 of 3 Page 2 of 3 Page 3 of 3 HUDSON Bond Number: 10080468 KNOW ALLINJEN BY THESE PRESENTS: That 14131DSON INSURANCE COIWANY, a corporation of the State ofDclaviwc, with offices at 100 William Strect, Now York, New York, 10038, has made, constituted and appointed, and by these presents, does make, constitute and appoint Gabby Acosta of the state of CA its true and lawfal Attorneys) -in -Fact, at Now York, New York, each of them alone to have full power to ad without the other or others, to make, execute and deliver on its behalf. as Surety, bonds and undertakings given for any and ell purposes, also to execute and deliver on its behalf as aforwaid,ranemxrenewals, etensions, agreements, waivers,consents or stipulations relating to such bonds or undertakings provided, however, that no single bond or undertaking shall obligate said Company for any portion of the penal sum thereof in excess of the stun of Five Thousand Dollars ($5,000.00) Such bonds and undortskjings 'when duly executed by said Attcirnq(s)-in-Fact, shall be binding upon said Company as fully and to the same extent as ifsigoed by the Ilrosidcza,ofsaid Company mider.its corporate sod attested by its Secavmry. In W- d-ness WhercotHUDSON INSURANCE COIAPAINIV has caused these presents to be of its Senior Vice President Lhereunto duly authorized, on this 16th day of Novanbcr - 20 17 at New York, New York. DLn2DasksT-AkJs CorporateSccrciary STATE Of NEW YORK COUNTY OF NEW YORK SS, UUDSON LNSURANCE COMPANY Michael P. Cilo" Senior Vice Prcsidmi \J On the . 16th day of _'Noycoiber 20 17 before me personally came )&chad P.,pifone to me known, who being by me duly svvara did depose and W that he is enior VicaTrcsideat afRUDSON MURANCE COMPANY, the corporado#escribcd herein and which executed tht above ftnitrualcut, that he knows the seat ofd CorporatiM that the scalaffixed to said inswiractit is such corporate seal, th# it was by order of the Board afl),rectors of said Corporation, and that he signed his name thereto by like order. 4f It Stu. of Net York tA 0 -1 %.06'777553 011! 55t Cocl) Qualili M u County Commission Expires December 1% 2021 CERTIFICATION STATE OF NEW YORK COLN7Y OF NEW YORK The undersigned Dina Dukalakis haft certifies. That the original resolution, of which the following is a hoo and cotreet copy, was duly adopted by unanimous written consent of the Board ofDirectors of Hudson Irmiran r c Company dated laty 27, 2007, and has not since been revoked, amended or modifia- VM, that the Pmident. - the Executive Vice Presidents, the Senior Vice Presidents and the Vice Presidents sliall have the authority and dimotioa. to %spoigt such agent or agmjs, or attorney or ftijomqm-in-fact, for the purpose of canying an this Company's Surety business, and to empow4w such agent or agents, or attorney or aftonieys-in-fact, to execute and deliver, under this Cowparty's seal or otherwise, bonds obligations, and mcog;rii— therwLsc, nindemnitycontracts, contracts and certificates, and any and all other contut. and made whether made by bums CovqaV as Sintt7 the or a in the . of this Compey% sr..V business, and renewals, extensions. ugroeincpoi, waivers, 0onsents-or stipulations reg-ding undertakir;gs So made; and FLIM MI, RESOVLED, that the signature of aay such Officer of the Company and the Company's seal may at affixed by laCSiM90 to any o*WoT of attorney or certification giveii for tic execution of any bond, undertaking, recognizance, contrad of indemnity or other written Obligation in the nature thereof or related thereto, such Signature and Seal when so used whaneir heretofore or hereafter, being hereby adopted by the Company as the anginal signature of such offictr and the original seal of the Company, to be valid and binding upon the Company with the same force and offea as though manually affixod-" THAT the above and foregoing is a full, true and conrea copy of Power ofAttmey issued by said Company, and of the whole of the original and that the said Power of Attorriq is still in full Rime and effect and has not been revoked, and fiu*=n=,e that the Resolution of the Board of Directors, W forth in the said Power of Attorney is now in farce. aid capoaji. this 1-8th day of September 2018 Witness the hand oftheundersignedandthesealofA! Corporate s-1) Alt i3y... Man Davk. lukis' Corporate SLcrelary III miTw- A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of Los Angeles on before me, C-_ristLna Barjollo - Notary Public Here insert name and We of ft a6er) personally appeared Gabby Acosta Attorney In Fact who proved to me on the basis of satisfactory evidence to be the person(s) whose name( s) is/are subscribed to the within instrument and acknowledged to me that he/ she/they executed the same in his/her/their authorized capacity(ies), and that by his/ her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. certify under PENALTY OF PERJURY under the laws of the State of California that V' se foregoing paragraph is true and correct. WITNESS my hand and official seal. LOS Alnge=S 2 t&' dze Notary Public Signature I (Notary Public Seal) INSTRUCTIONS FOR COMPLETING THIS FORM ADDITIONAL OPTIONAL INFORMATION jj j.sfot,, complies with cun-ent California statutes regarding noraty nording ana, DESCRIPTION OF THE ATTACHED DOCUMENT ifnecdciii, ;,hatild be catnplrrad and attached to the doermient. Ack--Ieng-enis frow other states may be completed jar documents being sent to that state so "or,, as the wording does not require the Culffornio notaiy."o violate Cal ubmianotory aw. Title of description of attached document) - State and County information must be the State and County where the document signer( s) personally appeared before the notary public for acknowledgment. Date of notarization must be the date that the signer(s) personal1v appeared which Title or description of attached document continued' must also be the same date the acknowledgment is completed. ' The notary public must print his or her name as it appears within his or net Number of Pages — Document Date commission followed by a cominia and then your title (no -tar;; publi print the name(s) of document sigricri(s.) who personally appear at the time of notarization. CAPACITY CLAIMED BY THE SIGNER . Indicate the correct singular or plural forms by crussma off triconect fonts (i.c. is ( afe ) or circling the correct fonas. Failure to correctly indicate this D Individual (s) information may lead to rejection of document recording. Corporate Of - Ilie notary seal impression must be clear and p' I 'otographically reproducible. linpression must not cover tax: or lines. If sea] impression smudges, rc-seal if a Title) sufficient area permits, otherwise complete a different acknowledgment form. 3 Partner(s) RnRture of the notary public must match the ignartire on file with the office of Lhe county clerk. 0 Attorney -in -Fact Additional information is not required but could help to ensure this 17 Trustee(s) acknowledgment is not misused or attached to a different document. Other Indicate title or type of attached document, number of pages and date. Indicate the capacity claimed by the signer. If the claimed capacity is a corp-+ rate owca, ind cate me tole ki.c. CEO, CFO. Secretary). 2015 V?sion 800-E73-9S65 Securely attach this document to the signed document with a staple. NO& 41 SIMMMM Wme WK bp bMw ewe, N. te whnsoes wO he rsAvedx, as the fnormn tu,s. 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PM1LY' FARMS c,LOCA4 rrld SECTION 01 BUSINESS OPERATIONS PLAN Sub Section 1.4 Tax Compliance IRS DEPARTMENT OF THE TREASURYI vJ3 INTERNAL REVENUE SERVICE CINCINNATI OH 45999-0023 SLOCAL ROOTS FARMS AUSTEN CONNELLA MBR Date of this notice: 01-06-2017 Employer Identification Number: Form: SS-4 Number of this notice: CP 575 B For assistance you may call us at: 1-800-829-4933 IF YOU WRITE, ATTACH THE STUB AT THE END OF THIS NOTICE. WE ASSIGNED YOU AN EMPLOYER IDENTIFICATION NUMBER Thank you for applying for an Employer Identification Number (EIN). We assigned you EIN This EIN will identify you, your business accounts, tax returns, and documents, even if you have no employees. Please keep this notice in your permanent records. When filing tax documents, payments, and related correspondence, it is very important that you use your EIN and complete name and address exactly as shown above. Any variation may cause a delay in processing, result in incorrect information in your account, or even cause you to be assigned more than one EIN. If the information is not correct as shown above, please make the correction using the attached tear off stub and return it to us. Based on the information received from you or your representative, you must file the following form(s) by the date(s) shown. Form 1065 03/15/2017 If you have questions about the form(s) or the due date(s) shown, you can call us at the phone number or write to us at the address shown at the top of this notice. If you need help in determining your annual accounting period (tax year), see Publication 538, Accounting Periods and Methods. We assigned you a tax classification based on information obtained from you or your representative. It is not a legal determination of your tax classification, and is not binding on the IRS. If you want a legal determination of your tax classification, you may request a private letter ruling from the IRS under the guidelines in Revenue Procedure 2004-1, 2004-1 I.R.B. 1 (or superseding Revenue Procedure for the year at issue). Note: Certain tax classification elections can be requested by filing Form 8832, Entity Classification Election. See Form 8832 and its instructions for additional information. A limited liability company (LLC) may file Form 8832, Entity Classification Election, and elect to be classified as an association taxable as a corporation. If the LLC is eligible to be treated as a corporation that meets certain tests and it will be electing S corporation status, it must timely file Form 2553, Election by a small Business Corporation. The LLC will be treated as a corporation as of the effective date of the S corporation election and does not need to file Form 8832. To obtain tax forms and publications, including those referenced in this notice, visit our Web site at www.irs.gov. If you do not have access to the Internet, call 1-800-829-3676 (TTY/TDD 1-800-829-4059) or visit your local IRS office. IRS USE ONLY) 575B 01-06-2017 SLOC B 9999999999 SS-4 Keep a copy of this notice in your permanent records. This notice is issued only one time and the IRS will not be able to generate a duplicate copy for you. You may give a copy of this document to anyone asking for proof of your EIN. Use this EIN and your name exactly as they appear at the top of this notice on all your federal tax forms. Refer to this EIN on your tax -related correspondence and documents. If you have questions about your EIN, you can call us at the phone number or write to us at the address shown at the top of this notice. If you write, please tear off the stub at the bottom of this notice and send it along with your letter. If you do not need to write us, do not complete and return the stub. Your name control associated with this EIN is You will need to provide this information, along with your EIN, if you file your returns electronically. Thank you for your cooperation. Keep this part for your records. CP 575 B (Rev. 7-2007) Return this part with any correspondence so we may identify your account. Please correct any errors in your name or address. Your Telephone Number Best Time to Call CP 575 B 9999999999 DATE OF THIS NOTICE: 01-06-2017 EMPLOYER IDENTIFICATION NUMBER: FORM: SS-4 NOBOD INTERNAL REVENUE SERVICE SLOCAL ROOTS FARMS CINCINNATI OH 45999-0023 AUSTEN CONNELLA MBR 11ui11nall 11u111111n) 7731 DISPLAY CONSPICUOUSLY AT PLACE OF BUSINESS FOR WHICH ISSUED CALIFORNIA STATE BOARD OF EQUALIZATION SELLER'S PERMIT ACCOUNTNUMBER 01/14/2017 SR GH 103-023118 SLOCAL ROOTS FARMS SLOCAL ROOTS FARMS 7731 SUEY CREEK RD SANTA MARIA, CA 93454-9543 L J IS HEREBY AUTHORIZED PURSUANT TO SALES AND USE TAX LAW TO ENGAGE IN THE BUSINESS OF SELLING TANGIBLE PERSONAL PROPERTY AT THE ABOVE LOCATION, THIS PERMIT IS VALID ONLY AT THE ABOVE ADDRESS. THIS PERMIT IS VALID UNTIL REVOKED OR CANCELED AND IS NOT TRANSFERABLE. IF YOU SELL YOUR BUSINESS OR DROP OUT OF A PARTNERSHIP, NOTIFY US OR YOU COULD BE RESPONSIBLE FOR SALES AND USE TAXES OWED BY THE NEW OPERATOR OF THE BUSINESS. OF fib! 7 A * t0; CAlit66.0 NOTICE TO PERMITTEE: You are required to obey all Federal and State laws that regulate or control your business. This permit does not allow you to do otherwise. Not valid at any other address For general tax questions, please call our Customer Service Center at 1-800-400-7115 (TTY:711). For information on your rights, contact the Taxpayers' Rights Advocate office at 1-888-324-2798 or 1-916-324-2798. BOE-442-R REV. 16 (11-14) A MESSAGE TO OUR NEW PERMIT HOLDER As a seller, you have rights and responsibilities under the Sales and Use Tax Law. In order to assist you in your endeavor and to better understand the law, we offer the following sources of help: Visiting our website at www.boe.ca.gov Visiting afield office Attending a Basic Sales and Use Tax Law class offered at one of our field offices Sending your questions in writing to any one of our offices Calling our toll -free Customer Service Center at 1-800-400-7115 (TTY:711) As a seller, you have the right to issue resale certificates for merchandise that you intend to resell. You also have the responsibility of not misusing resale certificates. While the sales tax is imposed upon the retailer, You have the right to seek reimbursement of the tax from your customer You are responsible for filing and paying your sales and use tax returns timely You have the right to be treated in a fair and equitable manner by the employees of the California State Board of Equalization (BOE) You are responsible for following the regulations set forth by the BOE As a seller, you are expected to maintain the normal books and records of a prudent businessperson. You are required to maintain these books and records for no less than four years, and make them available for inspection by a BOE representative when requested. You are also expected to notify us if you are buying, selling, adding a location, or discontinuing your business, adding or dropping a partner, officer, or member, or when you are moving any or all of your business locations. If it becomes necessary to surrender this permit, you should only do so by mailing it to a BOE office, or giving it to a BOE representative. If you would like to know more about your rights as a taxpayer, or if you are unable to resolve an issue with the BOE, please contact the Taxpayers' Rights Advocate office for help by calling toll -free, 1-888-324-2798 or 1-916-324-2798. Their fax number is 1-916-323-3319. Please post this permit at the address for which it was issued and at a location visible to your customers. CALIFORNIA STATE BOARD OF EQUALIZATION Sales and Use Tax Department 7 3255215, FILED/Op In the office of the Secretary of state ARTICLES OF INCORPORATION OF of the State of California Bayside Patients Collective MAR 2 5 2010 A CALIFORNIA NONPROFIT MUTUAL BENEFIT CORPORATION N State of California Secretary of State IipgN Statement of Information EV26133 Domestic Nonprofit, Credit Union and Consumer Cooperative Corporations) FILED Filing Fee: $20.00. If this is an amendment, see instructions. IMPORTANT — READ INSTRUCTIONS BEFORE COMPLETING THIS FORM In the office of the Secretary of State of the State of California 1. CORPORATE NAME BAYSIDE PATIENTS COLLECTIVE NOV-22 2013 CALIFORNIA CORPORATE NUMBER C3255215 This Space for Filing Use Only Complete Principal Office Address (Do not abbreviate the name of the city. Item 3 cannot be a P.O. Box.) 3. STREET ADDRESS OF PRINCIPAL OFFICE IN CALIFORNIA, IF ANY CITY STATE ZIP CODE 3850 RAMADA DRIVE, D4A, PASO ROBLES, CA 93446 4. MAILING ADDRESS OF THE CORPORATION CITY STATE ZIP CODE Names and Complete Addresses of the Following Officers (The corporation must list these three officers. A comparable title for the specific officer may be added; however, the preprinted titles on this form must not be altered.) 5. CHIEF EXECUTIVE OFFICER/ ADDRESS CITY STATE ZIP CODE AUSTEN T CONNELLA 3850 RAMADA DRIVE, D4A, PASO ROBLES, CA 93446 6. SECRETARY ADDRESS CITY STATE ZIP CODE STELA T CONNELLA 3850 RAMADA DRIVE, D4A, PASO ROBLES, CA 93446 r. CHIEF FINANCIAL OFFICER/ ADDRESS CITY STATE ZIP CODE KENT CONNELLA 3850 RAMADA DRIVE, D4A, PASO ROBLES, CA 93446 Agent for Service of Process If the agent is an individual, the agent must reside in California and Item 9 must be completed with a California street address, a P.O. Box address is not acceptable. If the agent is another corporation, the agent must have on file with the California Secretary of State a certificate pursuant to Califomia Corporations Code section 1505 and Item 9 must be left blank. 8. NAME OF AGENT FOR SERVICE OF PROCESS TIMOTHY P NOTT 9. STREET ADDRESS OF AGENT FOR SERVICE OF PROCESS IN CALIFORNIA, IF AN INDIVIDUAL CITY STATE ZIP CODE 5940 COLLEGE AVE, OAKLAND, CA 94618 Davis -Stirling Common Interest Development Act (California Civil Code section 1350, et seq.) 10. FI Check here if the corporation is an association formed to manage a common interest development under the Davis -Stirling Common InterestDevelopmentAct. NOTE: Corporations formed to manage a common interest development must also file a Statement by Common Interest Development Association Form SI-CID) as required by Califomia Civil Code section 1363.6. Please see instructions on the reverse side of this form. THE INFORMATION CONTAINED HEREIN IS TRUE AND CORRECT. 11/22/2013 TIMOTHY NOTT AGENT DATE TYPE/PRINT NAME OF PERSON COMPLETING FORM TITLE SIGNATURE SI-100 (REV 01/2013) APPROVED BY SECRETARY OF STATE Siatretary of State Articles of Organization LLC-1 Limited Liability Company (LLC) IMPORTANT — Read instructions wore completing this form. FlUng Fee - $70-00 kapwuntf LLCs may have to pay an annual minimum W tax to the California Frwiv*,tse Tax Board, For more information, go to httpsaAvww.ftb,ra.gov, FILED A Secrotary Of StI Stoe Of California OCT 13 2016 This Space For Office Use Only 1, Limited Liability Company Name (See instructions - Must contain an LLC ending such as LLC or L.L.C. 'LLC'WII be added, if not included.) 2. Business Addresses aim "- Adams of 0*"nat" Offim in California - Do not Hat a P.O. III 7731 Suey Creek Road City (no abbriMatims) Santa Maria State CA zip code 93454 b tnitail MaIdeq Address of LLC It difforsnit than Item 2a City (no atbfvvlations) State zip codo Item 3a and W It nanft an Individual, the agent must reside in California and Item 3a and 3b must be 3. Agent for Service of Process comp fed with the agent's name and complete California street afteli$. Item 3c: It naming a California Registered Corporate Agent a current agent registration cwtifiCate, must be On fit' vAth the Caldbinia Secretary of State and Item .3c must be completed (leave Item 3a-3b blark a Cal&Xnta Aga Wa First Nams, (it agent is not a Corporation) Wdcge Name Last Name Suffix Gina I Sapanza I 1; Sireetkcidross (it agent 4 not a oorpotation) - Do not fiat a P,O. Box City (no abbcavialions) state Zit; Code 7731 Suey Creek Road I Santa Maria I CA 193454 G. Csilorw, Registwed coi`porate Agenfs Nanw (it &Wt is a corpuration) — Do W complete hem 3a or 3b 4. Management (Select only one box) The LLC will be managed by: One Manager 1-71More than One Manager All LLC Member(s) 5. Purpose Statement (Do not after Purpose Statement) The purpose of the limited liability company is to engage in any lawful act or activity for which a limited liability company may be organized under the California Revised Uniform Limited Liability Company Act. 6. The Information contained herein, including in any attachments, is true and correct. Christina Sava Organizer sign here Print your name here LLC- 1 (REV 06-2016) 2016 COWIII SKrftY of staft WWW' soa,capybahm"ke 7/27/2017 Sales and Use Tax Electronic Filing - Confirm Filing - Board of Equalization 07/27/17 Bois State alizc- Taxpayer Name: SLOCAL ROOTS FARMS Account Number: Filing Period: 01/14/2017 to 03/31/2017 Express Login Code: Due-DaW-"05/01/2017 For assistance during regular business hours call 1-800-400-7115 (TTY:711) Your filing has been accepted. The confirmation number is 00030679187. Sales and Purchase Information 1 Total Gross Sales 3 Total Deductions 9 Sales Tax (if any) Included in Gross Sales 11 Total Deductions 12 Total Taxable Transactions District Tax Total District Tax Computation Schedule for District Tax Amount Due 13 Sales and Use Tax Due 15 Remaining Tax Due 16 Penalty 17 Interest 18 Total Amount Due and Payable Paid Preparer Information Paid Preparer Name Paid Preparer Phone Number Return and Payment Information Effective Date of Filing Payment Method Payment Amount Remaining Amount Due hftps://efile.boe.ca.gov/suUReviewPaymentinfo.do 1/2 7/27/2017 Sales and Use Tax Electronic Filing - Confirm Filing - Board of Equalization wMl It1 s*Amo OF O FOR BOARD USE ONLY RE PM EFFECTIVE DATE OF PAYMENT MO DAY YEAR PAYMENT VOUCHER You may pay your taxes and fees online. Visit our website at www.boe.ca.-gov and select the option Make A Payment." You can also pay by credit card by visiting our website or calling 1-855-292-8931. Print this payment voucher to pay by check or money order payable to the Board of Equalization. Do not include any documentation with your payment. Always write your account number and filing period on your check or money order. Mail to: Board of Equalization P.O. Box 942879 Sacramento, California 94279-3535 07/27/2017 SLOCAL ROOTS FARMS Due Date: 05/01/2017 If paid by 07/31/2017 Sales and Use Tax 01 /14/2017 - 03/31 /2017 Penalty: A 10% penalty is added for returns or payments made after the original due date. Interest: One month's interest is due on tax for each month or fraction of a month that payment is delayed after the due date. The adjusted monthly interest rate is 0.00583. Rev. 4 (09-11) AR1 https://efile.boe.ca.gov/sut/ReviewPaymentinfo.do 2/2 7/27/2017 Sales and Use Tax Electronic Filing - Confirm Filing - Board of Equalization 07/27/17 California State Oar ql'Equalization Taxpayer Name: SLOCAL ROOTS FARMS Account Number: Filing Period: 04/01/2017 to 06/30/2017 Express Login Code: Due Date: 07/31/201.7 __ ___ For assistance during regular business hours call 1-800-400-7115 (TTY:711) Your filing has been accepted. The confirmation number is 00030669256. Sales and Purchase Information 1 Total Gross Sales 3 Total Deductions 9 Sales Tax (if any) Included in Gross Sales 11 Total Deductions 12 Total Taxable Transactions District Tax Total District Tax Computation Schedule for District Tax Amount Due 13 Sales and Use Tax Due 15 Remaining Tax Due 18 Total Amount Due and Payable Paid Preparer Information Paid Preparer Name Paid Preparer Phone Number Return and Payment Information Effective Date of Filing Payment Method Payment Amount Remaining Amount Due https:Hefile,boe.ca.gov/sut/ReviewPaymentinfo.do 1 /2 7/27/2017 Sales and Use Tax Electronic Filing - Confirm Filing - Board of Equalization efle• i RD OF EQUAUZATION FOR BOARD USE ONLY RE PM EFFECTIVE DATE OF PAYMENT MO DAY YEAR PAYMENT VOUCHER You may pay your taxes and fees online. Visit our website at www boe. ca_g_ov and select the option Make A Payment." You can also pay by credit card by visiting our website or calling 1-855-292-8931. Print this payment voucher to pay by check or money order payable to the Board of Equalization. Do not include any documentation with your payment. Always write your account number and filing period on your check or money order. Mail to: Board of Equalization P.O. Box 942879 Sacramento, California 94279-3535 07/27/2017 SLOCAL ROOTS FARMS Due Date: 07/31/2017 If paid by 07/31/2017 04/01 /2017 - 06/30/2017 Tax Interest Penalty Total Sales and Use Tax $ Penalty: A 10% penalty is added for returns or payments made after the original due date. Interest: One month's interest is due on tax for each month or fraction of a month that payment is delayed after the due date. The adjusted monthly interest rate is 0.00583. Rev. 4 (09-11) []AK] https://efile.boe.ca.gov/sut/ReviewPaymentfnfo.do 2/2 10/31/2017 Sales and Use Tax Electronic Filing - Confirm Filing - Board of Equalization 10/31/17 CaliforniaState Board of Equalization Taxpayer Name: SLOCAL ROOTS FARMS Account Number: Due Date: 10/31/2017 For assistance during regular business hours call 1-800-400-7115 (TTY:711) Your filing has been accepted. The confirmation number is 00031911483. Sales and Purchase Information 1 Total Gross Sales $ https://efile.boe.ca.gov/sut/ReviewPaymentinfo.do 1/2 10/31/2017 Sales and Use Tax Electronic Filing - Confirm Filing - Board of Equalization FOR BOARD USE ONLY RE IPM EFFECTIVE DATE OF PAYMENT MO DAY YEAR PAYMENT VOUCHER You may pay your taxes and fees online. Visit our website at www.boe.ca.gov and select the option Make A Payment. " You can also pay by credit card by visiting our website or calling 1-855-292-8931. Print this payment voucher to pay by check or money order payable to the Board of Equalization. Do not include any documentation with your payment. Always write your account number and riling period on your check or money order. Mail to: Board of Equalization P.O. Box 942879 Sacramento, California 94279-3535 10/31/2017 SLOCAI- ROOTS FARMS Due Date: 10/31/2017 If paid by 10/31/2017 Sales and Use Tax 07/01 /2017 - 09/30/2017 Tax Interest Penalty Total Penalty: A 10% penalty is added for returns or payments made after the original due date. Interest: One months interest is due on tax for each month or fraction of a month that payment is delayed after the due date. The adjusted monthly interest rate is 0.00583. Rev. 4 (09-11) AR1 hftps://efile.boe.ca.gov/sut/ReviewPaymentinfo.do 212 1 /22/2018 Sales and Use Tax Electronic Filing - Confirm Filing - California Department of Tax and Fee Administration Taxpayer_ Name: _ SLOCAL_ROQT'S__FARMS Filing Period: 10/01/2017 to 12/31/2017 Due Date: 01/31/2018 Account _Number:_. For assistance during regular business hours call 1-800-400-7115 (TTY:711) Your filing has been accepted. The confirmation number is 00032616582. Sales and Purchase Information 1 Total Gross Sales $ hftps://services.cdtfa.ca.gov/sut/ReviewPaymentlnfo.do 1/2 1/22/2018 Sales and Use Tax Electronic Filing - Confirm Filing - California Department of Tax and Fee Administration FOR DEPARTMENT USE ONLY RE PM EFFECTIVE DATE OF PAYMENT MO DAY YEAR PAYMENT VOUCHER You may pay your taxes and fees online. Visit our website at WWW cdtfa.ca. gov and select the option Make A Payment." You can also pay by credit card by visiting our website or calling 1-855-292-8931. Print this payment voucher to pay by check or money order payable to the California Department of Tax and Fee Administration. Do not include any documentation with your payment. Always write your account number and filing period on your check or money order. Mail to: California Department of Tax and Fee Administration P.O. Box 942879 Sacramento, California 94279-3535 01 /22/2018 SLOCAL ROOTS FARMS Due Date: 01/31/2018 If paid by 01 /31 /2018 Sales and Use Tax 10/01 /2017 - 12/31 /2017 Tax Interest Penalty Total Penalty: A 10% penalty is added for returns or payments made after the original due date. Interest: One month's interest is due on tax for each month or fraction of a month that payment is delayed after the due date. The adjusted monthly interest rate is 0.00583. Rev. 4 (09-11) https:Hservices.cdtfa.ca.gov/sut/ReviewPaymentlnfo.do 2/2 4/26/2018 Sales and Use Tax Electronic Filing - Confirm Filing - California Department of Tax and Fee Administration California Department of Tax and Fee Administration Taxpayer Name: SLOCAL ROOTS FARMS Account Number: Due Date: 04/30/2018 For assistance during regular business hours call 1-800-400-7115 (TTY:711) Your filing has been accepted. The confirmation number is 00033654286. Sales and Purchase Information 1 Total Gross Sales $ https://services.cdtfa.ca.gov/sut/ReviewPaymentinfo.do 1 /2 4/26/2018 Sales and Use Tax Electronic Filing - Confirm Filing - California Department of Tax and Fee Administration FOR DEPARTMENT USE ONLY RE PM EFFECTIVE DATE OF PAYMENT MO DAY YEAR PAYMENT VOUCHER You may pay your taxes and fees online. Visit our website at www. cdtfa.ca.g, v and select the option Make A Payment. " You can also pay by credit card by visiting our website or calling 1-855-292-8931. Print this payment voucher to pay by check or money order payable to the California Department of Tax and Fee Administration. Do not include any documentation with your payment. Always write your account number and ding period on your check or money order. Mail to: California Department of Tax and Fee Administration P.O. Box 942879 Sacramento, California 94279-3535 04/26/2018 SLOCAL ROOTS FARMS Due Date: 04/30/2018 If paid by 04/30/2018 Sales and Use Tax 01 /01 /2018 - 03/31 /2018 Tax Interest Penalty Total Penalty: A 10% penalty is added for returns or payments made after the original due date. Interest: One month's interest is due on tax for each month or fraction of a month that payment is delayed after the due date. The adjusted monthly interest rate is 0.00583. Rev. 4 (09-11) https://services.cdtfa.ca.gov/sut/ReviewPaymentInfo.do 2/2 7/30/2018 https:/Ionlineservices.edtfa.ca.gov/ /Retrieve/0/c-/L7msoHgSc8m8elWioea3xA ?FILE= WEBHTML This confirmation represents a return, filing only. To subinit a payment electronically, please click "Make a Payment" or you inay mail in a check payment by clicking "Print a Payment Voucher". Ifyou are required to pay by Electronic Fund Transfer (EFT), please complete the transaction by 3: 00 PMPacific time. our return has been submitted on 7/30/2018 at 11:40:52 AM and your filing confirmation number is: 0-001- 520-159. Taxpayer Name: SLOCAL ROOTS FARMS Account Type: SALES AND USE TAX Account Number: Filing Period: 01-Apr-2018 to 30-Jun-2018 Due Date: 31-Jul-2018 Tax/Fee: Please Note: The total amount shownn above reflects amounts calculated at the time of submission and is based on the unverified information you provided which may differfrom records available to the California Department of Tax and Fee Administration (CDTFA). You may be contacted regarding the difference in the tax due date, tax, penalo) and interest due. https:// onlineservices.cdtfa,ca.gov/_/Retrieve/0/c-/L7msoHgSc8m8elWloea3xA ?FILE_ WEBHTML 1/1 Please cut along the line and return_ the bottom portion with your payment. 1=14T --- ------ I ................ ............................... PAYMENT VOUCHER CDTFA-5000 (08-17) Period End Date: 30-Jun-2018 Account Type: Sales and Use Tax Account Number: Voucher Type: Return Payment Make check payable and send with the voucher to: California Department of Tax and Fee Administration PO Box 942879 Sacramento CA 94279-3535 SLOCAL ROOTS FARMS CDTFA USE ONLY Amount Due: Please write your Account number and tax period end date on your check. ONLINE SERVICES FILING RECORD: SALES & USE TAX RETURN State of California" CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION Taxpayer Name: SLOCAL ROOTS FARMS Account Type: Sales and Use Tax Return Type: Original Submitted: 10/31/2018 11:19:28 AM Confirmation #: 0-002-868-399 Total (gross) Sales Purchases subject to Use Tax Sales of Fixtures and Equipment Total Sales and Purchases Sales to other retailers for purposes of resales Nontaxable sales of food products Nontaxable labor (repair and installation) Sales to the United States government Sales in interstate or foreign commerce Sales Tax (if any) included in Gross Sales Other Deductions Total Nontaxable Transactions Transactions subject to State Tax Total Sales and Use Tax Excess Tax Collected Net Tax 1 st Prepayment 2nd Prepayment Less Tax Prepayments Remaining Tax Penalty Interest Total Amount Due and Payable Account Number: Period Begin: July 01, 2018 Period End: September 30, 2018 Due Date: October 31, 2018 Remaining Due: Account Number: Filing Period: September 30, 2018 ScheOute>A2 - Computation Schedule for District Tax Taxable transactions subject to District Tax $ Account Number: 103-023118 Filing Period: September 30, 2018 Scbedule C - Detailed Allocation by Location of tales andd Use Taxax Transactions Total taxable transactions to be allocated on local tax schedules $ Account Number: 103-023118 Filing Period: September 30, 2018 Summary total tax Void a Employee's social security number Wage and Tax Form ® Statement Copy D — For Employer. 2011 Department of the Treasury —Internal Revenue Service For Privacy Act and Paperwork Reduction Act Notice, see back of Copy D. Form 9141 for 2012: Employer's QUARTERLY Federal Tax Return 950112 Rev. January 2012) Department of the Treasury — Internal Revenue Service OMB No. 1545-0029 Employer identification number ( EIN) Report for this Quarter of 2012 Check one.) Name (not your trade name) 1BAYSIDE PATIENTS COLLECTIVE El 1: January, February, March zl Trade name Many) nX 2- April, May, June 3850 RAMADA DRIVE, D4A E] 3: July, August, September Address 4: October, November, DecemberNumberstreetsuiteorroomrKUTOW PASO ROBLES CA 93446 Prior -year forms are available at wwwJrs.govffbrm941. city state ZIP code Read the separate instructions before you complete Form 941. Type or print within the boxes. 950212 your Page 2 Form 941 (Rev. 1-2012) Form 1120 Two Year Comparison Worksheet Page 1 12010 & 20111 Name RAYSIDE PATIENTS COLLECTIVE Employer Identification Number Income Gross profit percentage .................................... Net receipts . .................. Cost of goods sold .............................. Gross profit Dividends ............... ............. ................ .. Interest ....................................... Gross rents .... ...................................... .... Gross royalties ........................................ Capital gain net income from Schedule D Net gain or (loss) from Form 4797 ........................ Other income Total income 2010 2011 Differences IForm 1120 Two Year Comparison Worksheet Page 2 12010 20111 Name BAYSIDE PATIENTS COLLECTIVE Employer Identification Number1 Payments and Refundable Credits Prior year overpayment credited to current year .......... Current year estimated tax payments ............ ........ Refund applied for on Form 4466 ......................... Tax deposited with Form 7004 ............................ Withholding ................................................ Form 2439 credit ........................................... Form 4136 credit ................................. . Other refundable credits ................................... Total payments and credits 2010 2011 Differences Font, 8879-C I IRS e-file Signature Authorization OMB No. 1545-1f for Form 1120 Department of the Treasury For calendar year 2011, or tax year beginning , ending 2011 Internal Revenue service See instructions. Do not send to the IRS. Kee for your records. Nam of =porabon Employer identification number BAYSIDE PATIENTS COLLECTIVE true, correct, and complete. I further declare that the amounts in Part I above are the amounts shown on the copy of the corporation's electronic income tax return. I consent to allow my electronic return originator (ERO), transmitter, or intermediate service provider to send the corporation's return to the IRS and to receive from the IRS (a) an acknowledgement of receipt or reason for rejection of the transmission, (b) the reason for any delay in processing the return or refund, and (c) the date of any refund. If applicable, I authorize the U.S. Treasury and its designated Financial Agent to initiate an electronic funds withdrawal (direct debit) entry to the financial institution account indicated in the tax preparation software for payment of the corporation's federal taxes owed on this return, and the financial institution to debit the entry to this account. To revoke a payment, I must contact the U.S. Treasury Financial Agent at 1-888-353-4537 no later than 2 business days prior to the payment (settlement) date. I also authorize the financial institutions involved For Paperwork Reduction Act Notice, see instructions. Form 8879-C (2011) Daa Foy 1120 DepaMnent of Ore Treasury Internal Revenue Service U.S. Corporation Income Tax Return For calendar year 2011 or tax year beginning........................... ,ending1Seeseparateinstructions.. OMB No. 1545.0123 2011 A Check ff. 1a Corwideted ratan bt ... dabd roman .... 2 Pereonel OD. d1 S a I 4 sdielb W TYPE OR PRINT Name Number straet, and room or suite no. or town, state, and ZIPcoda If a P.O. box, see instructions. BAYSIDE PATIENTS COLLECTIVE 8 Paperwork Reduction Act Notice, see separate instructions. Form 1120 (2011) DAA Form 1120 (2011) BAYSIDE PATIENTS COLLECTIVE Form 1120 (2ol 1) DAA Form 1120 (2011) DAA Form 1120 (2011) BAYSIDE PATIENTS COLLECTIVE Paste 4 Cr4%a+drata It n thar Infnrmatinn rnntint tprt (cpp inon trtinncl I! ZU (2011) DAA Form 1120 2011 BAYSIDE PATIENTS COLLECTIVE Page 5 Schedule i. _' Balance Sheets per Books Beginning of tax year End of tax year 1 120 (2o11) DAA Form 1125-A December 2011) Department of the Treasury Infernal Revenue Service Name Paperwork Reduction Act Notice, see instructions. Form 1125-A (12-2011) DAA Form4562 Depreciation and Amortization OMB No. 1545-017 Including Information on Listed Property) 2011 Department of the Treasury Attach to your tax Name(s) shown on return I Federal Statements I Form 1120 Return Summary For calendar year 2011 or tax year beginning ending BAYSIDE PATIENTS COLLECTIVE Taxable income Total income Total deductions Taxable income before NOL / special deductions Net operating loss deduction Special deductions Taxable income Tax Computation Income tax Alternative minimum tax Foreign tax credit General business credit Other credits Personal holding company tax Other taxes Additional taxes Total tax Payments / Penalties Estimated tax payments Extension payment Other payments / credits Estimated tax penalty (Form 2220) Penalties and interest Total payments / penalties Tax due Overpayment credited to next year's estimated Form 1120 Name 1 BAYSIDE PX orm 1120 2011 Employer Identification Number Form 1120 I Net operating Name BAYSIDE PATIENTS COLLECTIVE Employer Identification Number I Federal Statements I I Federal Statements j 2-5 Federal Asset Report Form 1120, Page 1 Bonus Depreciation Report AMT Asset Report Form 1120, Page 1 ACE Asset Report Form 1120, Page 1 Depreciation Adjustment Report IAllBusinessActivities Future Depreciation Report FYE: 12/31/12 Form 1120, Page 1 Filing Instructions Bayside Patients Collective Form 8453-C - CA e-file Return Authorization for Corporations Taxable Year Ended December 31, 2011 Date Due: AS SOON AS POSSIBLE Remittance: Mail To: Franchise Tax Board P.O. Box 942857 Sacramento, CA 94257-0531 Signature: Form 8453-C should be signed and dated by an authorized officer of the corporation and returned to: HENRY C. LEVY & CO., CPAS, PROF. CORP. 5940 COLLEGE AVE STE F OAKLAND, CA 94618-1385 Other: Initial and date the copies of Forms 100 and 8453-C, and retain them for your records. Your return is being filed electronically with the California Franchise Tax Board and is not required to be mailed. If you mail a paper copy of your return to the California Franchise Tax Board, it will delay processing of your return. If you scheduled an electronic funds withdrawal and wish to cancel it, you must call the California Franchise Tax Board at (916) 845-0353 at least two working days prior to the date of withdrawal. Filing Instructions Bayside Patients Collective Form(s) 100-ES - Estimated Tax Payments Taxable Year Ended December 31, 2012 Instructions: Reminders for estimated tax installments will not be sent to you. Therefore you should establish your own reminder system for making timely deposits. Form at bottom of page. Installment 1 — File and Pay by the 15th day of the 4th month of taxable year. When the due date falls on a weekend or holiday, the deadline to file and pay without penalty is extended to the next business day. Due to the Emancipation Day holiday on April 16, 2012, tax returns filed and payments mailed or submitted on April 17, 2012 will be considered timely. If no payment is due, do not mail this form. WHERE TO FILE: Using black or blue ink, make check or money order payable to the Franchise Tax Board." Write the corporation number and "2012 Form 100-ES" on the check or money order. Detach form below. Enclose, but do not staple, payment with form and mail to: FRANCHISE TAX BOARD PO BOX 942857 SACRAMENTO CA 94257-0531 Make all checks or money orders payable in U.S. dollars and drawn against a U.S. financial institution. ONLINE SERVICES: Corporations can make payments electronically at the Franchise Tax Board's (FTB's) website using Web Pay. After a one-time online registration, corporations can make an immediate payment or schedule payments up to a year in advance. FTB does not charge for this service. For more information go to ftb.ca.gov and search for web pay. Corporations can also view estimated tax payments online. Go to ftb.ca.gov and search for myftb account. DETACH HERE — — IF NO PAYMENT IS DUE OR PAID ELECTRONICALLY, DO NOT MAIL THIS FORM — — DETACH HERE - - - Caution: You may be required to pay electronically. See instructions. Installment 1 TAXABLE YEAR CALIFORNIA FORM 2012 Corporation Estimated Tax 100-ES 034 1 6101126 r- Form 100-ES 2011 034 Date Accepted DO NOT MAIL THIS FORM TO FTB TAXABLE YEAR FORM 2011 California a -file Return Authorization for Corporations 8453-C Corporation name Notice, get form FTS 1131. FTB 8453-C 2011 A consent to uisciosure Form 8453`C I ' 2011 For calendar year 2011 or fiscal year beginning and ending Name California Corporation Numbe4 Employer Identification Number 13 I consent to allow my ERO, Intermediate Service Provider, and/or my Transmitter to send this business return to the FTB. Additionally, I consent to allow FTB to send my ERO, Intermediate Service Provider, and/or my Transmitter an acknowledgment of receipt of transmission and an indication of whether or not this business return is accepted, and, if rejected the reason(s) for the rejection. If the processing of the return or refund is delayed, I authorize the FTB to disclose to my Intermediate Service Provider and/or Transmitter the reason(s) for the delay, or when the refund was sent. By using this system to prepare and submit this tax return, I consent to the disclosure to the FTB of all information pertaining to my use of this system, including the Internet Provider address. Voucher at bottom of page. DO NOT MAIL A PAPER COPY OF THE CORPORATE OR EXEMPT ORGANIZATION TAX RETURN WITH THE PAYMENT VOUCHER. If the amount of payment is zero, do not mail this voucher. WHERE TO FILE: Using black or blue ink, make check or money order payable to the "Franchise Tax Board." Write the corporation number or FEIN and "2011 FTB 3586" on the check or money order. Detach voucher below. Enclose, but do not staple, payment with voucher and mail to: FRANCHISE TAX BOARD PO BOX 942857 SACRAMENTO CA 94257-0531 Make all checks or money orders payable in U.S. dollars and drawn against a U.S. financial institution. WHEN TO FILE: Fiscal Year — See instructions. Calendar Year — File and Pay by March 15, 2012. When the due date falls on a weekend or holiday, the deadline to file and pay without penalty is extended to the next business day. Due to the Emancipation Day holiday on April 16, 2012, tax returns filed and payments mailed or submitted on April 17, 2012 will be considered timely. ONLINE SERVICES: Corporations and exempt organizations can make payments electronically at the Franchise Tax Board's (FTB's) website using Web Pay. After a one-time online registration, corporations and exempt organizations can make an immediate payment or schedule payments up to a year in advance. FTB does not charge for this service. For more information, go to ftb.ca.gov and search for web pay. DETACH HERE _ _ IF NO PAYMENT IS DUE OR PAID ELECTRONICALLY, DO NOT MAIL THIS VOUCHER_ _ _ DETACH HERE CAUTION: You may be required to pay electronically, see instructions. JAWLE YEAR payment Voucher for Corps and CALIFORNIA FORM 2011 Exempt Orgs a -filed Returns 3586 (e-file 6181116 r- FTB 3586 2011 T&WLE YEAR California Corporation 2011 Franchise or Income Tax Return V19191VA rM1, For calendar year 2011 or fiscal year beginning month day year and endftmonth day year Corporation name BAYSIDE PATIENTS COLLECTIVE 3601114 r— Form 100 cl 2011 Side 1 100 c 1 2011 034 3602114 F— For Privacy Notice, get form FTB 1131. BAYSIDE PATIENTS COLLECTIVE 1 3603114 r— Form 100 cl 2011 Side 3 BAYSIDE PATIENTS COLLECTIVE Side 4 Form 100 ci 2011 0341 3604114 BAYSIDE PATIENTS COLLECTIVE 3605114 r- Form 100 ci 2011 Side 5 TAXABLE YEAR Net Operating Loss (NOL) Computation and NOL CALIFORNIA FORM 2011 and Disaster Loss Limitations — Corporations 38050 Attach to Form 100, Form I OOW, Form 100S, or Form 109. Gcpomfion narne FTB 3805Q 2011 E r z N c c v E w TAXABLE YEAR CALIFORNIA FORM 2011 Corporation Depreciation and Amortization 3885 Corporation name 1 7621114 F— FTB 3885 2011 TAXABLE YEAR C&IFORNIA FORM 2011 Underpayment of Estimated Tax by Corporations 5806 month day year month day Year For calendar year 2011 or fiscal year beginning and ending Corporation name F 1"B 5806 2011 Side 1 Form Os Name Due date of estimated payment Amount of underpayment Withholding Date of payment Amount of payment UA unaerpayment of tstimatea i ax worKsneet rage 1 2011 Jar year 2011 or fiscal year be innin , and ending California Corporation Number Employer Identification Number S COLLECTIVE 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 04/18/11 06/15/11 09/15/11 12/15/11 T E T O Z Cy 0 T— E ZZ C44 cc n. w 1 California Statements I 3-4 California Statements I 5-8 California Form 100 Return Summary For calendar year 2011 or fiscal year beginning and ending BAYSIDE PATIENTS COLLECTIVE Taxable Income Net income (loss) before state adjustments Total additions Total deductions Business income Apportioned income California non -business income NOL deduction Taxable income Alternative Minimum Taxable Income Net income Adjustments Preferences Alternative minimum taxable income Tax Computation Tax Alternative minimum tax Tax credits Total tax Payments / Penalties Payments 5806 penalty Interest Failure to file penalty Failure to pay penalty Total payments / penalties Overpayment credited to next year's estimated CA Asset Report IForm1120, Page 1 CA AMT Asset Report Form 1120, Page 1 CA ACE Asset Report Form 1120, Page 1 CA Future Depreciation Report FYE: 12/31/12 Form 1120, Page 1 SAYSIDPA71E 09/16/2013 2:22 PM Form 1120 Return Summary For calendar year 2012 or tax year beginning ending BAYSIDE PATIENTS COLLECTIVE Taxable Income Total income Total deductions Taxable income before NOL / special deductions Net operating loss deduction Special deductions Taxable income Tax Computation Income tax Alternative minimum tax Foreign tax credit General business credit Other credits Personal holding company tax Othertaxes Additional taxes Total tax Payments / Penalties Estimated tax payments Extension payment Other payments / credits Estimated tax penalty (Form 2220) Penalties and interest Total payments / penalties Tax due Overpayment credited to next year's estimated BAYSIDPATIE 09/16/2013 2:22 PM Form 1120 Two Year Comparison Worksheet Page 1 2011 & 2012 Name BAYSIDE PATIENTS COLLECTIVE Employer Identification Number BAYSIDPA11E 09/16/2013 2:22 PM IForm 1120 Two Year Comparison Worksheet Page 2 12011 2012 Name PATIENTS COLLECTIVE Employer Identification Number Sch M-3 Total income (loss) items: Income (loss) per income statement Temporary difference Permanent difference Income (loss) per tax return .......... Total expense/deduction items: Expense per income statement Temporary difference ....................................... Permanent difference ....................................... Deduction per tax return ................................ Other items with no differences: Income (loss) per income statement Income (loss) per tax return .................... Reconciliation totals: Income (loss) per income statement Temporary difference Permanent difference per tax return ............ ... ..... Income loss BAYSIDPATIE 09/1612013 2:22 PM Farm 1120 Return Carryover Summary 2012 For calendar year 2012 or tax year beginning ending Name Employer Identification Number YSIDE PATIENTS COLLECTIVE THE HENRY LEVY GROUP 5940 COLLEGE AVE STE F OAKLAND, CA 94618-1385 510-652-1000 September 16, 2013 CONFIDENTIAL Attn:Kent Connella Bayside Patients Collective 3850 Ramada Drive #D4A Paso Robles, CA 93446 Sincerely, THE HENRY LEVY GROUP Filing Instructions Bayside Patients Collective Form 8879-C U.S. Corporation Income Tax Declaration for an IRS e ale Return with Electronic Filing Personal Identification Number Taxable Year Ended December 31, 2012 Date Due: BAYSIDPATIE 09/16/2013 2:22 PM Form 8879-C IRS e4ile Signature Authorization for Form 1120 For calendar year 2012, or tax year beginning , ending Department of the Treasury Do not send to the IRS. Keep for your records. Internal Revenue Service Information about Form 8879-C and its instructions is at www.irs.gov/forml 120. AYSIDE PATI IVE 2012 For Paperwork Reduction Act Notice, see Instructions. Form 8879-C (2012) DAA BAYSiDPATiE 09/16/2013 2:22 PM Fen 7004 Rev. Decenber2012) Department of the Treasury Internal Revenue Service Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns File a separate application for each return. information about Form 7004 and its separate instructions is at www.irs.aov/form7004. Name BAYSIDE PATIENTS COLLECTIVE ATTN: KENT CONNELLA Print Nun -bar, street, and room or suite no. (If P.O. box, see instructions.) or Type 3850 RAMADA DRIVE #D4A Identifying number OMB No. 1545-0233 City, town, state, and ZIP code (If a foreign address, enter city, province or state, and country (follow the country's practice for entering postal code)). PASO ROBLES CA 93446 Fur Privacy Act and Paperwork Reduction Act Notice, see separate Instructions. Farm 7004 (Rev. 12-2012) DAA BAYSIDPATIE 09/16/2013 2:22 PM U.S. Corporation Income Tax Return OMB No.1545-01231120DepartmoeInternal Revenue Service For calendar year 2012 or tax year beginning , ending ............ Information about Form 1120 and its separate instructions is at www.Irs.gov%form1120. 2012 A check If, is Consolida-tedrebim achForm 851) ..... iih ortsoii Areturn ..... 2 eersonal hiding rxr. attach Soh. PH) ... . 3 Personal+ COro. see instructions) ...... . 4 Schedule M-3 atffiched .. TYPE OR PRINT Nana BAYSIDE PATIENTS COLLECTIVE ATTN: KENT CONNELLA Nunber, street, and room or suite no. tf a P.O. box, see instructions. City or town, state, and ZIP code 3850 RAMADA DRIVE #D 4 A a Employer rdeni it 1) Initial retum 2) Final return (3) Name change 4) Address change 1a Gross Act Notice, see separate instructions. Form 1120 (2012) DAA SAYSIDPATIE 09/16/2013 2:22 PM Form1120(2012) BAYSIDE PATIENTS COLLECTIVE 1120 (2012) DAA BAYSIDPATIE OW16/2013 2:22 PM Form1120S2012) BAYSIDE PATIENTS COLLECTIVE Page Scct u* J. Tax Computation and Payment (see instructions) Form 1120 (2012) DAA BAYSIDPATIE 09/16/2013 2:22 PM Form 1120 (2012) BAYSIDE PATIENTS COLLECTIVE Page 4--t i.ALriA to nnntinrrnrl /eon inc+rnrrtinne) Form 1120 (2012) DAA E AYSIDPA71E 09/16/2013 2:22 PM Form1120 2012 BAYSIDE PATIENTS COLLECTIVE Page 5 Schecluie I_ Balance Sheets per Books Beginning of tax year End of tax near Form 1120 (2012) DAA BAYSIDPATIE Bayside Patients Collective Federal Statements 9/16/2013 2:21 PM FYE: 12/31 /2012 BAYSIDPATIE Bayside Patients Collective 09/16/2013 2:21 PM Federal Asset Report FYE: 12/31/2012 Form 1120, Page 1 BAYSIDPATIE Bayside Patients Collective 09/16/2013 2:21 PM AMT Asset Report FYE: 12/31 /2012 Form 1120, Page 1 BAYSIDPATIE Bayside Patients Collective ACE Asset Report FYE: 12/31/2012 Form 1120, Page 1 09/16/2013 2:21 PM BAYSIDPATIE Bayside Patients Collective 09/16/2013 2:21 PM Depreciation Adjustment Report FYE: 12/31/2012 All Business Activities BAYSIDPATIE Bayside Patients Collective 09/16/2013 2:21 PM Future Depreciation Report FYE: 12/31/13 FYE: 12/31/2012 Form 1120, Page 1 y I BAYSIDPATIE 09/1612013 2:22 PM California Form 100 Return Summary For calendar year 2012 or fiscal year beginning and ending BAYSIDE PATIENTS COLLECTIVE Taxable Income Net income (loss) before state adjustments Total additions Total deductions Business income Apportioned income California non -business income NOL deduction Taxable income Alternative Minimum Taxable Income Net income Adjustments Preferences Alternative minimum taxable income Tax Computation Tax Alternative minimum tax Tax credits Total tax Payments / Penalties Payments 5806 penalty Interest Failure to file penalty Failure to pay penalty Total payments / penalties Overpayment credited to next year's estimated Filing Instructions Bayside Patients Collective Form 8453-C - CA e-file Return Authorization for Corporations Taxable Year Ended December 31, 2012 Date Due: Filing Instructions Bayside Patients Collective Form(s) 100-ES - Estimated Tax Payments Taxable Year Ended December 31, 2013 Instructions: BAYSIDPATIE 09/16/2013 2:22 PM Form at bottom of page. Installment 1 — File and Pay by the 15th day of the 4th month of the taxable year. When the due date falls on a weekend or holiday, the deadline to file and pay without penalty is extended to the next business day. If no payment is due, do not mail this form. WHERE TO FILE: Using black or blue ink, make check or money order payable to the Franchise Tax Board." Write the corporation number and "2013 Form 100-ES" on the check or money order. Detach form below. Enclose, but do not staple, payment with form and mail to: FRANCHISE TAX BOARD PO BOX 942857 SACRAMENTO CA 94257-0531 Make all checks or money orders payable in U.S. dollars and drawn against a U.S. financial institution. ONLINE SERVICES: Corporations can make payments online with Web Pay for Businesses. After a one-time online registration, corporations can make an immediate payment or schedule payments up to a year in advance. Go to ftb.ca.gov for more information. DETACH HERE — IF NO PAYMENT IS DUE OR PAID ELECTRONICALLY, DO NOT MAIL THIS FORM - - DETACH HERE - - - Caution: You may be required to pay electronically. See instructions. Installment 1 TAXABLE YEAR CALIFORNIA FORM 2013 Corporation Estimated Tax 100-ES BAYSIDE PATIENTS COLLECTIVE ATTN KENT CONNELLA 3850 RAMADA DRIVE D4A PASO ROBLES CA 93446 (805) 459-6390 7777 034 6101136 1_ Form 100-ES 2012 BAYSiDPATIE 09/16/2013 2:22 PM 034 Date Accepted DO NOT MAIL THIS FORM TO FTB TAXABLE YEAR FORM 2012 California a -fife Return Authorization for Corporations 8453-C Corporation name Privacy Notice, get form FTB 1131. FTB 8453-C 2012 BAYSIDPATIE 09/16/2013 2:22 PM CA Consent to Disclosure For, 8453-C I Fnr nnionrlar vaar 9M 9 nr fiscal vE>ar haninninn _ and endina Name California Corporation Number I Employer Identification Number PATIENTS COLLECTIVE I consent to allow my ERO, Intermediate Service Provider, and/or my Transmitter to send this business return to the FTB. Additionally, I consent to allow FTB to send my ERO, Intermediate Service Provider, and/or my Transmitter an acknowledgment of receipt of transmission and an indication of whether or not this business return is accepted, and, if rejected the reason(s) for the rejection. If the processing of the return or refund is delayed, authorize the FTB to disclose to my Intermediate Service Provider and/or Transmitter the reason(s) for the delay, or when the refund was sent. By using this system to prepare and submit this tax return, I consent to the disclosure to the FTB of all information pertaining to my use of this system, including the Internet Provider address. BAYSIDPATIE 09/16/2013 2:22 PM TAXABLE YEAR California Corporation gni 9 Frannhi-Qa nr Intt-nmra Tax Rraturn C FORM inn For calendar year 2012 or fiscal year beginning month day year and endinq month day year 3oryorationname BAYSIDE PATIENTS COLLECTIVE 3 4 3601124 F- Form 100 c1 2012 Side 1 BAYSIDPATIE 09/16/2013 2:22 PM BAYSIDE PATIENTS COLLECTIVE Side 2 Form 100 c1 2012 034 3602124 i For Privacy Notice, get form FTa 1131. RAYSIDPATIE 09/16/2013 2:22 PM BAYSIDE PATIENTS COLLECTIVE 034 3603124 Form 100 cl 2012 Side 3 N BAYSIDPATIE 09/16/2013 2:22 PM BAYSIDE PATIENTS COLLECTIVE 4 Form 100 c1 2012 —0341 3604124 1 — aAYSIDPATIE 09/16/2013 2:22 PM BAYSIDE PATIENTS COLLECTIVE • 034 3605124 1_ Form 100 c1 2012 Side 5 RAYSIDPATIE 09/16/2013 2:22 PM TAXAaLEYEAR Net Operating Loss (NOL) Computation and CALIFORNIA FORM 2012 NOL and Disaster Loss Limitations — Corporations 3805Q Attach to Form 100, Form 100W, Form 100S, or Form 109, oration name P 7521124 r- FTB 3805Ci 2012 am N r E N C C BAYSIDPATIE Bayside Patients Collective 9/16/2013 2:21 PM California Statements FYE: 12/31/2012 1 BAYSIDPATIE Bayside Patients Collective 9/16/2013 2:21 PM California Statements FYE: 12/31/2012 BAYSIDPATIE 09/16/2013 2:22 PM 1120 U.S. Corporation Income Tax Return OMB No.1545-0123 Forrrr Department of the Treasury Internal Revenue service For calendar year 2012 or tax year beginning ending 1InformationaboutForm1120anditsorateinstructionsisatwww.ir3. • vlform1120. 2012 A Check If: I Consolidated return 44chI=851) Name BAYSIDE PATIENTS COLLECTIVE erwork Reduction Act Notice, see separate instructions. Form 1120 (2012) DAA BAYSIDPATIE 09/16/2013 2:22 PM Form 1120 (2012) BAYSIDE PATIENTS COLLECTIVE MV aAYSIDPATIE 09/1612013 2:22 PM Form1120(2012) BAYSIDE PATIENTS COLLECTIVE Page Form 1120 (2012) DAA BAYSIDPATIE 09116/2013 2:22 PM Form 1120 (2012) BAYSIDE PATIENTS COLLECTIVE Page 4 Form 1120 (2012) DAA BAYSIDPATIE 09/IW013 2:22 PM Form1120 2012 BAYSIDE PATIENTS COLLECTIVE Page 5 Form 1120 (2012) DAA BAYSIDPATIE Bayside Patients Collective Federal Statements FYE: 12/31/2012 9/16/2013 2:21 PM 1 BAYSIDPATIE Bayside Patients Collective 09/16/2013 2:21 PM CA Asset Report FYE: 12/31/2012 Form 1120, Page 1 BAYSIDPATIE Bayside Patients Collective 09/16/2013 2:21 PM GA AMT Asset Report FYE: 12/31 /2012 Form 1120, Page 1 BAYSIDPATIE Bayside Patients Collective 09/16/2013 2:21 PM CA ACE Asset Report FYE: 12/31/2012 Form 1120, Page 1 BAYSIDPATIE Bayside Patients Collective 09/16/2013 2:21 PM CA Future Depreciation Report FYE: 12/31/13 FYE: 12/31/2012 Form 1120, Page 1 6AYSIDPATIE 09/16/2013 2:22 PM CA Two Year Comparison Worksheet Page 1 Fom,100 C3'1 i $t 2012 Name sAYSIDE PATIENTS COLLECTIVE California Corporate Number RAYSIDPATIE 09116/2013 2:22 PM ear Form 100 Name DE PATIENTS COLLECTIVE Net income per books Federal income tax Excess of capital losses over capital gains Schedule Taxable income not on books M-1 Book expenses not deducted .................................. Income on books not on return ................................ Return deductions not on books ............................... Net Income per return Balance at beginning of year Net income per books ......................................... Other increases ................................................ Schedule Cash distributions .............................................. M-2 Stock distributions ............................................. Property distributions Other decreases . ......................... ........... California Corporate Number FAMT",Y ' FAR MS St.O CAC prrlj * SECTION 01 BUSINESS OPERATIONS PLAN Sub Section 1.5 Insurance PO Drawer 1189 San Luis Obispo, CA 93406 License #0305584 To whom it may concern, This "Will Serve" Letter is for the proposed cannabis retailer to be located at 3535 S. Higuera St, San Luis Obispo, CA. Our office provides insurance needs for many of the cannabis retailers on the Central Coast. If permitted, we will work with SloCal Roots to provide General Liability, Workers' Comp, and any other insurance required by contract subject to underwriting approval. Please feel free to reach out to me with any questions or concerns. Sincerely, Adam Peterson Commercial Risk Advisor 805.597.6342 SECTION 01 BUSINESS OPERATIONS PLAN Sub Section 1.6 Budget SloCal Roots Budget Sub Section 1.6 Sales FA 41LY FARMS SLOCA4 rrld SECTION 01 BUSINESS OPERATIONS PLAN Sub Section 1.7 Financial Capacity Cu c 1 m oo 2 aE 2 2 a ss H EEU V pEpU pEU EU EU pEU EU K E F- F' . E cw E LL EE _ W y " N r= r Vm E c AEA WALL c n E S W N g e ry rn o b g m A' b dE $ w de 2E ae e A a w m o m u m m° o m Q mciao yUo wuzo u° wr o cam gg @u E a a a a S m' m amp a ao x ac° AUNO O O A O n O w p 0 Q O FAMILY' b cARMu" SLOCA4 SECTION 01 BUSINESS OPERATIONS PLAN Sub Section 1.8 Products and Services Sub Section 1.8 Products and Services SloCal Roots will offer an array of products that will fulfill the needs of the public in San Luis Obispo County. SloCal Roots will offer high CBD products, concentrates, tinctures, topicals, vapes, flowers, pre -rolls, edibles, and any other form of cannabis that demand may exist for. High CBD Products Cannabidiol or CBD is a component of the cannabis plant that appears to have enormous therapeutic potential. Although it doesn't make people feel high like THC, CBD is causing quite a buzz among scientists, health professionals, and medical marijuana patients who are using CBD-rich products to treat a wide range of conditions —including chronic pain, cancer, Crohn`s, diabetes, rheumatoid arthritis, PTSD, cardiovascular disease, anxiety, antibiotic -resistant infections, multiple sclerosis, schizophrenia, and more. Carrying an strong variety of high CBD products will ensure that customers suffering from these conditions can have access to the products they need. Concentrates From brownies to medicated r. muscle creams, you can find cannabis concentrates in hundreds of products. Concentrates are products made from the cannabis plant that have been processed to keep only the most desirable plant compounds primarily the cannabinoids and terpenes), while removing excess plant material and other impurities. Ounce for ounce, cannabis concentrates have a greater proportion of cannabinoids and terpenes when compared to natural cannabis flowers. Concentrates can also help increase the potency of your flower. The next time you pack a bowl with cannabis flower, try sprinkling kief on top, or add drops of concentrate oil to cannabis flower before rolling your joint. Cannabis concentrate products can also be consumed on their own. For example, concentrates can be vaporized using a portable vaporizer or dab rig (this activity is referred to as "dabbing"). Dabbing has quickly become one of the most popular consumption methods in the market. Concentrates let you experience cannabis in a multitude of ways; they come in a variety of textures and can be consumed using several different methods. The look and feel of a concentrate doesn't necessarily indicate its level of quality (effects, flavor, potency); these are simply aesthetics that can help you keep track of your personal preferences. One of the leading benefits of concentrates is the rapid onset time and the ability to yield a high more potent than consuming cannabis flower. Concentrates have a high bioavailability, meaning the effects you feel and experience, as well as the rate of absorption into your body, happen almost immediately. The effects of a cannabis concentrate can last anywhere from 1 to 3 hours, depending on the person. Tinctures What are tinctures? By definition, a tincture is an herbal solution made with alcohol as the primary extraction solvent. In the cannabis product realm, the term tincture is being used to define concentrated liquid preparations that are meant to be applied topically or orally. Tinctures are versatile and allow for accurate dosing and titration. Cannabis tinctures can be made from the raw cannabinoids THCA q and CBDA or can be heated (a process known as decarboxylation) to convert the raw cannabinoids to THC and CBD. Most preparations are labeled with the main cannabinoids. Average 'Tincture Onset Times Alcohol -Sass: ,rs ;psi-BaseG Tinctures 15 minutes - 3 hours 30 minutes - 3 hours How do tinctures work? When applied sublingually, tinctures are absorbed through the body via blood vessels located under the tongue. This allows for relatively fast delivery directly into the bloodstream, where the cannabinoids can then be distributed to the cannabinoid receptors throughout the brain and body. Sublingual absorption provides onset as quickly as 15 minutes. Cannabinoids not absorbed under the tongue will travel with the carrier liquid through the digestive tract, where they'll be absorbed like an edible — so, tinctures can present delayed onset of effects as well. When blended with food or drink, tinctures act in much the same way as edibles. The appropriate dose of a tincture depends on a variety of factors, including a person's individual endocannabinoid makeup and the desired effects they wish to receive. In tincture applications, a method called "self titration" is recommended to determine your optimal dosage. Titration essentially means working up to the desired effect, starting with a low dose and adding gradually until the desired effect is reached. Topicals Lotions, balms, and transdermal patches are applied to the surface of the skin, allowing cannabinoids to penetrate the dermal and subdermal layers. These layers of the skin provide pathways for relief that allow the cannabinoids to meet and bind with receptors located in the skin and throughout the body. These receptors regulate how one experiences sensations like pain and discomfort. Topicals are used for relief from symptoms of injuries and inflammatory conditions that result in bone, muscle, ligament, and tendon pain. To provide relief from inflammation in a localized area, balm is applied directly to the surface of the skin on the affected area. Transdermal patches are another option for those in search of localized relief and have shown promise in providing systemic pain relief through prolonged administration. Dosage and Duration The dosage and duration of topical use varies as this versatile category is used by consumers to alleviate many ailments, from sore muscles to inflammation. It's important to read the labels on these products, as many topical preparations contain other natural ingredients. People with allergies should be vigilant about reading labels to avoid an allergic reaction. Onset time for topicals can be almost instantaneous with some, while for others it can take up to an hour for a person to feel the effects. Some manufacturers have developed technology for enhanced bioavailability of cannabinoids — how quickly the body can absorb and feel the resulting effects. Products created with this type of technology have faster uptake times for immediate relief to the localized area. When in doubt, read the label. Duration of effects can vary depending on the ingredients, but in general, most people report 4 to 6 hours of relief with topical use. Vapes Cannabis vaporization is growing in popularity among people interested in consuming cannabis in an easy, discreet manner that's healthier than traditional smoking methods. Both flower and concentrates can be vaporized using a wide range of devices. The leading benefit for cannabis vaporization is that it's a healthier alternative to smoking flower, as vapor doesn't release the tar and carcinogens created during combustion (the process of burning flower). Additionally, portable vaporizers allow for easy and discreet use as the cannabis vapor creates a less potent aroma. Portable vaporizers are easy to use and fit in your pocket. Like flower and concentrates, the onset time is rapid. The process of vaporization involves heating cannabis flower or concentrates to a temperature that turns the active compounds (cannabinoids and terpenes) into vapor. Vaporization is a healthier alternative to smoking as it occurs at temperatures that do not allow the flower to combust, which releases harmful tar and carcinogens. There are many methods by which people vaporize cannabis. The three main types are tabletop vaporizers, portable vaporizers and vape pens. Vape pens are a type of vaporizer designed specifically to vaporize cannabis distillates and oils. They are called pens because the design of the vape device closely resembles that of a traditional pen. A vape pen consists of two pieces: a battery and cartridge. Vape batteries come in a variety of styles — button or buttonless, cylindrical or rectangular, large or small — there is a shape and style to fit many personal preferences. Vape cartridges contain a mouthpiece, chamber and heating element, which is activated upon initiated contact with a vape battery. The chamber of a vape cartridge is filled with oil or distillate, which contains concentrated amounts of cannabis cannabinoids and terpenes. When choosing a vape cartridge, it's important to know the type of oil contained within, whether and how it's flavored and what cutting agents, if any, have been used to dilute the solution. This helps you anticipate the type of vaping experience to expect. Vape cartridges are all filled with cannabis distillate that's designed for optimal vaporization using a portable battery. During the distillation process, the cannabis oil is stripped of all flavor and aromatic compounds. At this point, it can be left in its raw form (flavorless/tasteless), it can be mixed with terpenes for extra flavor, or with some form of glycol (PG, VG, PEG) to give the vapor extra mouthfeel (thin versus thick, smooth versus chalky, dry versus buttery). Raw Vape Cartridges While all cartridges contain cannabinoids, not all cartridges contain terpenes. Terpenes are organic compounds that give plants their aroma and flavors. `Raw cartridges" are vape cartridges that do not contain any additional cutting agent or terpenes, just the pure cannabis distillate. Strain -specific and Natural Terpene Cartridges The reintroduction of terpenes is common in distillate -filled cartridges, as the distillation process removes the natural plant terpenes and results in an odorless, flavorless viscous liquid. Some extractors have mastered a technique that allows them to remove the terpenes from the plant during the distillation process and reintroduce them prior to filling the vape cartridges. These cartridges are known as strain -specific vape cartridges that use cannabis -derived terpenes to retain the same aroma and flavor of the plant that the oil was derived from. It's also common for cartridges to be filled with naturally derived terpenes that create exotic flavors that smell and taste like fruits and candies. The reintroduction of terpenes after extraction allows manufacturers to create countless cannabinoid and terpene combinations to suit a variety of needs. These terpenes can also change the viscosity and color of the distillate in the cartridge. Cutting Agents Some vape cartridges contain cutting agents that are similar to those used in e-cigarettes to change the intensity of the vapor cloud and mouthfeel of the cartridge. The most common cutting agents include polyethylene glycol (PEG), propylene glycol (PG) and vegetable glycerin VG). Polyethylene glycol has many medical, commercial and industrial applications and is used as a cutting agent in vape liquids to maintain an evenly mixed product that produces some vapor cloud. Propylene glycol is a binding agent that blends with solvents for use in food, hygiene, industrial and lab applications. It's a common cutting agent in vape pen liquids due to its promotion of even draws. Vegetable glycerin is used as a preservative in the food, pharmaceutical, bath and body and e-cigarette industries, among others. Vegetable glycerin is used in vape liquids to create large vapor clouds. Flower and Pre -Rolls Even as new technologies allow manufacturers to create numerous product types that deliver the benefits of cannabis, traditional flower smoking remains the most common and preferred method of consumption around the world. Flower, also called "bud," refers to the smokable part of the cannabis plant that has gone through the cultivation, harvest, drying, and curing process. Flower continues to be a popular choice for its versatility, offering numerous methods of consumption, such as being smoked using a pipe or bong, or by rolling it into a joint or blunt. Among the many benefits of smoking flower is its rapid onset. Flower's high bioavailability means you'll feel its effects almost instantaneously. Effects can last anywhere from one to three hours, varying from person to person. Smoking Methods While the majority of smokers around the world like to roll their flower into a joint to smoke, there are numerous ways to enjoy cannabis flower. These methods are dependent on the person's preference, environment and given situation. Rolling A Joint This is the most common method of consuming flower, there are many benefits to rolling a joint. The only tools you need to roll a joint are rolling papers and your flower (a grinder, while helpful, is optional). Rolling papers are inexpensive and easy to purchase (available in most convenience stores). Rolling A Blunt While less common, a blunt is the same basic idea as a joint. A blunt is an emptied -out cigar wrapper that's been filled with flower and resealed. For similar reasons as a joint, the benefit of rolling a blunt is that all you need is the blunt wrap (or tobacco leaves) and your flower (a grinder is optional). Most convenience stores sell cigars, allowing blunt making to be possible virtually anywhere. The only potential downside to a blunt is that you're also consuming the tobacco in the cigar wrap. Pipes Possibly the easiest, most straightforward way to consume flower is through the use of a pipe. Small, compact, and easy to use, pipes are handheld devices that are used to smoke flower. They require no power or water; simply break apart your flower, fill the bowl and light up. Ideal for traveling or discreet use, pipes are practical and reliable tools for cannabis consumers. Bongs Another common method of flower consumption is the use of a water pipe, or "bong." Bongs are a filtration device structurally comprised of a chamber, which is partially filled with water, and a downstem that connects the water chamber and holds a bowl (which holds the cannabis). Bongs are ideal for calming the heat and harshness of inhaling smoke. The liquid in the water chamber helps filter particles from the smoke. As the smoke makes it way through the bong, the length of the pipe also aids in the cooling action. Dosing Unlike other methods of cannabis consumption, flower doesn't have a standard dosing structure. Potency is measured by the total concentration of cannabinoids (chemical compounds that act on our endocannabinoid system to stimulate psychoactive and physical effects) and is expressed in percentage of mg/g. For example, a menu item of Hardcore OG might read as 18.84% THC, which indicates that there are 188.40 milligrams of Tetra hyd rocan nabinol (an intoxicating cannabinoid) per gram of flower. Edibles Edibles are food items made with cannabis flower or concentrates. Thanks to advances in the cannabis culinary arts and the emergence of distillate, you can find a wide selection of high -quality baked goods, beverages, and treats that provide the desired effects of cannabis. The benefits of consuming cannabis -infused edibles is the ability to feel the effects of cannabis without having to smoke flower or vaporize concentrates. Consuming is easy and intuitive — we all know how to eat and drink. The disadvantage of consuming cannabis -infused edibles is that they're absorbed through the digestive system, which means the effects may take hours to set in and the potency of effects gradually increases. The effects may onset as quickly as 45 minutes or can take up to 3 hours to onset and the duration can last between 4 and 6 hours. It is possible to feel the effects as early as 20 minutes. Onset and Duration Edibles are absorbed through the digestive system, which results in delayed onset as compared to inhalation and sublingual delivery (administered undemeath the tongue). While it can take anywhere from 45 minutes to 3 hours to feel the effects, edibles provide a longer duration of effects when compared to other consumption methods. 50mg Chocolate Bar What is a Dose? The potency of an edible is measured differently than cannabis flower or concentrate. Instead of stating the percentage of cannabinoid strength, the potency of an edible product is indicated by the milligram (mg) amount of cannabinoids contained in the product. An edibles package will typically state both the milligrams per serving and the milligrams in the entire package. For example, an entire chocolate bar may have 50 mg of THC. If the desired dose is 5 mg, the bar can be divided into ten 5-mg doses. Edibles have a wide variety of CBD: THC ratios. Ratios with a higher concentration of CBD tend to be less intoxicating than edibles with no CBD. However, intoxication is entirely dependent on how much THC you consume. No matter what the edible contains, it's recommended that the THC dose dictate how much is consumed. Finding the Right Dose Knowing the accurate dosage of an edible product and consuming at a measured pace is extremely important due to the delayed onset time and variable dosage options. The recommended dose for beginners is 1 to 5 mg of THC. Beginners should start with an initial dose of 5 mg then wait 24 hours to evaluate the effects. Increase the dose by 2.5 or 5 mg every 24 hours until you feel the effects. This will be your minimum effective dose. Because so many factors affect how your body might interact with cannabinoids found in edibles, dosing recommendations contain ranges rather than definitive quantities. How Edibles Work Edibles enter the body through the mouth and are absorbed through the gut. The absorbed compounds are metabolized in the liver. THC is metabolized in the liver into a compound called 11-hydroxy-THC. This compound is more potent than THC, has a longer half-life and can be very sedating. It's this mechanism in the liver that causes edibles to have a different effect in most people. This entire process can take between 45 and 180 minutes. How Edibles are Made When it comes to anticipating the effects of edibles, it's important to understand how they're made. The ingredients used and the method of production have an impact on the resulting product, onset time and duration of effects. Infused edibles found in the marketplace are made using hashish, cannabis distillate — an odorless and flavorless oil — or pure cannabinoid crystals, which are infused into a food product made using a fat, like butter or oil. It's important to recognize what form of cannabis concentrate was used to create your edibles as they can yield different effects. Decarboxylation plays a key role in determining the type of effects an edible may present. Decarboxylation is a process by which THCa, present in the raw form of cannabis, is slightly heated and changed into the psychoactive compound THC. The human body cannot convert THCA to THC.' Distillate is used for edibles that are meant to produce a psychoactive effect. They're popular among commercial edible producers because the cannabinoids are completely decarboxyaated during the distillate production process. Crystalline is popular because it contains a single cannabinoid — usually CBD or THCA. Crystalline can be sprinkled on foods or blended with dry or wet ingredients during the cooking or baking process, while distillate can be blended with other moist ingredients or mixed directly into liquids. Should you decide to bake your edibles with THCA crystalline, decarboxylation will take place during cooking or baking and the THCA into the intoxicating THC. Making Edibles at Home Cannabis -infused butters and oils can be made from scratch at home using dry flower. The overall concept of infusing butters and fats with cannabis involves submerging the dry material in the desired carrier (fat) and gently heating it to slowly extract the cannabinoids from the plant material. The mixture must then be strained to remove any remaining plant material. The infused fat or oil can then be substituted at a 1:1 ratio in any food recipe. It's pretty easy to make homemade edibles, but can be very difficult to dose properly. For consistent dosing, effects, and taste use manufactured edibles and check the labels for cannabinoid contents to find what product suits your need. This document is derived from WeedMaps.com onl/28/19 hftps://weedmaps.com/learn/products-and-how-to-consume/ FATA UY I b FARMS SloOCA1, 61fraf* SECTION 02 COMMUNITY BENNEFIT Community Benefit Local Hiring SloCal Roots commits to employ at least 90% SLO County residents. SloCal Roots will give preferential hiring to job applicants who reside within SLO city limits. Record of Community Support SloCal Roots owner, Austen Connella, grew up in San Luis Obispo GCOXandisasecondgenerationcannabisfarmer. He has been a cannabis activist for more than 20 years, founding and serving on -- - --- -- the board of the SLO Chapter of NORML, and helping to found and C = N T RA 1. COA S T sit on the Board of the Central Coast Cannabis Council. V,,! iN A P, I , OUT N (- ° L Austen and his organizations' efforts have been instrumental in shaping local policy throughout SLO County. Austen was the very first commercial cannabis retail permit applicant in SLO County. His Templeton -based North County Resource Center received an approval for permit in January of 2008. However, the approval was appealed. Austen spent 2 years working closely with the Board of Supervisors, which resulted in the passing of a land use ordinance, for which Austen was the first applicant. As a result of his work with the County Board of Supervisors, Austen now serves on the board of the SLO County Cannabis Advisory Group, and advises County Planning staff throughout the local cannabis ordinance formation and implementation process. Proposed Community Benefit SloCal Roots proposes to source at least 80% of its supplies and equipment used from businesses within 90 miles: This application was printed locally in the City of SLO All dispensary construction will be done by contractors who are based in the City of SLO SloCal Roots works with local industry professionals, including Ten Over Studio and Morns & Garritano Insurance. Additionally, SloCal Roots will source much of its cannabis products from local producers. SloCal Roots owners have also submitted applications for cannabis cultivation at 3 sites in SLO County. SloCal Roots cannabis retail store will carry the cannabis cultivated by its owners as well as cannabis cultivated by other local growers. SloCal Roots owners are part of a well-connected group of local cultivators, manufacturers, and distributors from whom it will source product. SloCal Roots ownership team and employees pledge 30 hours of work every month towards community benefit programs in the City of SLO. Hours will be spent on activities such as: Neighborhood Improvement Projects o Graffiti removal o Trash cleanup o Beautification projects Serving the Homeless o Prepping, cooking, and serving meals o Clerical support, office assistance o Client companion Environmental Restoration Projects o Habitat restoration o Trail maintenance o Creek cleanups SloCal Roots also proposes to donate $1,500 per month to community benefit programs in the City of SLO. This support will be dispersed across a variety of organizations and causes important to Austen, or ones that played a significant role in his life. Austen's true passion lies in farming the products. It is his vision to see the current practices advance as the industry grows as a result of more mainstream acceptance and exposure. The access Austen had to a higher education is what enabled him to learn the regenerative -agricultural and biodynamic-farming techniques that have advanced his cannabis cultivation. His scholarships for Cal Poly and Cuesta College students studying to become teachers, and those pursuing a degree in the agricultural industry, will ensure that these farming and cultivation techniques are studied and continue to benefit the cannabis industry. Austen's family has sponsored the water well -drilling program, Life Water, through their church, Atascadero Bible Church, for years. Through their support, dozens of villages throughout Nigeria have received the gift of clean water, which provides not only a steady supply of clean drinking water, but also enables a more stable and sustainable farming practice for these villages and their future generations. SloCal Roots Pledges to Support Future Generations via Educational Scholarships to: Cal Poly students studying Liberal Studies, Agribusiness, BioResource and Agricultural Engineering, Experience Industry Management, Horticulture and Crop Science Cuesta College students studying under the fields of Early Childhood Education, Agriculture Business, and Agriculture Plant Science When Austen was growing up and living with his mom, they were many times food insecure and dependent on food -assistance programs. Once living with his dad, Austen volunteered serving food at homeless shelters. Experiencing the hardship first hand, Austen will be supporting food -assistance programs throughout San Luis Obispo County, including: Food Bank Coalition of SLO County Meals That Connect home food delivery School and holiday food drives Seeing the critical role that Hospice and assisted -living centers played in both his Grandmother's and Great -Grandmother's lives, Austen will support senior programs and Hospice programs that serve SLO's senior community. These programs include: SLO Senior Center Hospice of SLO County Project Lifesaver of SLO County SloCal Roots pledges to have an average pay rate for entry and mid -level positions of at least 40% more than the median local income for similar positions in other mainstream businesses. SloCal Roots pledges to allow peace agreements at 20 or more non -management employees FAwLY FARIMS cil-O CAC frrld * SECTION 03 EDUCATION PLAN Education Plan Promotion of Safe & Responsible Use Keeping it away from kids and pets o Make literature available to consumers regarding second-hand smoke and children. o Provide child -proof packaging. Cannabis use and developing brains o Make literature available to consumers about the potential negative effects of cannabis on developing brains from sources such as the American Medical Association, American Addiction Centers and others. Regulated self -dosing o Cannabis affects each user differently, however, the quantity of THC is the key factor in the strength of the effects. Because the amount of THC varies from strain to strain, SloCal Roots recommends that users start with a low dose between 2.5 — 5 milligrams of THC) and wait two hours before consuming any more of the product. This will allow the user to feel the desired effect, while minimizing potential negative side effects. Right to refuse sales o SloCal Roots employees reserve the right to refuse cannabis sales to anyone appearing to be impaired by or abusing cannabis, alcohol or any other controlled substance. o Employee training will instruct dispensary employees to assess customers and patients and watch for signs of impairment. o Any sign of cannabis abuse or inappropriate, disruptive or dangerous behavior, will result in refusal of sale. o Employees will be trained on the fact that some patients may exhibit signs of impairment (including slurred speech, confusion, or lack of coordination) as a result of medical conditions. o Before dispensing, employees will always look for patients to demonstrate a clear understanding of the medicinal cannabis product they are receiving. Product Education Information on methods of ingestion will be made available to consumers: o Smoking and Vaporizing o Ingestibles (infused baking goods and edibles) o Tinctures, teas and sublingual o Topicals (lotions, salves, patches) o Concentrates (waxes, shatter, dabbing) Information on varieties of cannabis and their components o Cultivars o Sativas o Indicas o Hybrids o THC (tetrahyraconabinol) o CBDs (cannabidiol) o CBNs, CBGs, and other cannabinoids o Terpenes Product selection o Increased awareness of the therapeutic benefits of CBD has led to an emerging segment of customers. Patients are seeking out CBD-only products to use in the treatment of pain management, cancer, neurological and seizure disorders, and more. o Our budtenders will receive education and training of the varied uses and benefits of our products for a range of patient needs. Communications Materials Digital o Utilize social media and videos on website o We will use available digital methods to reach our customers, providing information on cannabis use disorder, educational material, use guidelines, product information, and more. Print materials o SloCal Roots will generate and make available to patients, customers and staff printed content (brochures, fliers, handouts, etc.) about such things as responsible use guidelines, product education, and cannabis use disorder. o All print material will be routinely updated and maintained by SloCal Root's medical consultant. o Staff will be trained on all material content and dissemination during required employee educational courses. Cannabis Use Disorder Available information o We will have posted information about cannabis use disorder (including risks, effects, symptoms, and treatments) in the shop. o Our website and social media platforms will contain information about cannabis use disorder. o When customers call our shop, there will be a touch prompt option available to direct them to more resources and information about cannabis use disorder. All staff will be educated on cannabis use disorder, and will have both printed literature, and contact information, available to provide to customers. Community Outreach Local media o We will leverage our local media connections to participate in TV and radio programs, print news stories, podcasts, etc. In-store workshops o We will host in-store educational workshops to provide customers with information about cannabis, our products, and about the cannabis industry as a whole. Speaking engagements o Our community outreach staff will be available to attend community events, speak to community groups, and provide assets and literature that will further educate people about the cannabis industry. FATLY \ bFtRMS SLO CA4 rrld SECTION 04 SECURITY PLAN 6500 Florin Perkins Rd. www.xiphoscorp.com Sacramento, CA info@xiphoscorp.com 95828 916-573-9223 z)ecurm n Provided on behalf of the client listed below by Xiphos Corporation. 6500 Florin Perkins Rd. ;1 www.xiphoscorp.com Sacramento, CA info@xiphoscorp.com 95828 916-573-9223 6500 Florin Perkins Rd. www.xiphoscorp.com Sacramento, CA info@xiphoscorp.com 95828 ks 916-573-9223 6500 Florin Perkins Rd. www.xiphoscorp.com Sacramento, CA j i info@xiphoscorp.com 95828 916-573-9223 6500 Florin Perkins Rd. www.xiphoscorp.com Sacramento, CA info@xiphoscorp.com 95828 916-573-9223 1. 6500 Florin Perkins Rd. www.xiphoscorp.com Sacramento, CA info@xiphoscorp.com 95828 916-573-9223 6500 Florin Perkins Rd. www.xiphoscorp.com Sacramento, CA info@xiphoscorp.com 95828 916-573-9223 6500 Florin Perkins Rd. www.xiphoscorp.com Sacramento, CA info@xiphoscorp.com 95828 .. 19 6 573-9223 D wAnmAL NEAL&6 cor1E1+ SlOCAL HOOTS i SGCIIRRY P4N NEII05 oArsPwNc saz sa+rtN exuEnA STKEf S` g BUIDiwGA tO105650.$VP11EY 60A S.W LLAS CHSPO, G90eW CAM LlNS OBiSPO, CA BD601 w„ t\d'`/// u SLOCAL ROOTS lz os soumMLMW,"— MR MIM alcl F-AM LYLY 1 b FARMS SLOCA4 6;praf SECTION 05 LIGHTING PLAN SloCal Roots Lighting Plan Well -Lit Retail Space and Workspace SloCal Roots will maintain a well -lit environment for its customer and employees. A well -lit retail space is essential for a positive customer experience. An established standard of 2 foot candles measurement of light will be maintained inside the dispensary at all times during operating hours. 1 Footcandle =1 lumen/ft2 i Candle 1 Lumen M j Outdoor Lighting SloCal Roots will instal outdoor lighting. The parking lot will be well -lit so customers and employees will be able to see clearly and feel safe as they enter and exit the dispensary. Energy -Efficient Lighting In order to minimize energy consumption, SloCal Roots will replace all existing light fixtures with energy -efficient LED bulbs. 6w 15w 45w y Non -Operating Hours Afterhours, SloCal roots will turn off all excess lights —except for those which will remain on for safety and security. z 0 r z 0 -1 of Fir D oo000oa - 7F7 a 0 0 0 0 0 a 0 0 0 0 SLOCAL ROOTS I FA-M IL11 < b FARMS SloOCA4 6;perld SECTION 06 SITE AND FLOOR PLAN p m o w c w W J 0 N Q5 Q NW7-0 U z-c ww. .aw. .mm mee. rcw. UF 6 F = Q z0 Div Wm W r ® nrl N U J z0p0 m FF WO C m N W> ® .jW J" acnm7w 0 FAr-01FY q(b FARMS SLOCA4 00 SECTION 07 WATER EFFICIENCY PLAN SloCal Roots Water Efficiency Plan Water scarcity is a growing concern, especially in San Luis Obispo County. SloCal Roots understands its responsibility to minimize its impact on our rapidly depleting water supply. Water -Wise Landscaping SloCal Roots dispensary will have a water -wise landscaping plan. Landscaping will include drought -resistant plants. Landscaping will be watered with by a drip -irrigation system to reduce water waste.. Water -Saving Fixtures SloCal Roots will replace all existing fixtures with low -flow fixture. Bathrooms will be equipped with dual flushing toilet and motion -sensing faucets. Consistent Oversight SloCal roots will regularly measure water -usage to be sure water efficiency goals are met. SloCal Roots facility will be well -maintained so as to prevent water loss through leaks and other possible equipment malfunctions. FI MILY <b FARMS SlO CAA 6; perk 4.0. W. SloCal Roots Odor Control Plan Relative to cannabis cultivation and cannabis manufacturing operations, cannabis retail operations produce a minimal amount of odor. This is because the cannabis and cannabis products to be retailed arrive at the premises already sealed and packaged. For cannabis flower samples, patients prefer to be able to smell the product; to provide for this while still maintaining the security of the sample, we will use Sensory Pod TM from Bud Bar Displays. These pods secure the product while offering a closable area of small holes so that the cannabis product can share its aroma. All Sensory PodsTm from Bud Bar Displays will remain closed when not actively being smelled. Countertop or portable carbon air filtration systems have been proven effective in controlling odors produced by retail cannabis operations. SloCal Roots will operate and maintain at least one GermGuardian AC4825 3-in-1 Air Purifier with True HEPA Filter and UV-C Sanitizer in every room where cannabis and cannabis products -are stored, handled, sold,- or present. Rooms over 400 square feet will have at least 2 GermGuardian AC4825 3-in-1 Air Purifier with True HEPA Filter and UV-C Sanitizer. 4`'Ml Captures dust mites, pollen, pet dander and many other allergy triggers. Captures large dust particles and pet hair, extending Triter file. Activated Charcoal absorbs household odors from pets, cooking, smoking and more. One complete filter system is included writh product. Rep?acemert Filter: FILTER Ej SloCal Roots will maintain proper weather striping on all doors and, if necessary, windows so as to prevent air from freely moving in to and out of the premises. SloCal Roots' Odor Control Plan will be evaluated after its initial implementation and re-evaluated weekly by a manager, officer, or owner. Evaluation will be conducted by walking the perimeter of the building completely while actively paying attention to any odor being produced by the cannabis operations. If any odor generated inside the location of the commercial cannabis operation is detected outside the building, on adjacent properties or public rights -of -way, or within any other unit located within the same building as the commercial cannabis operation, SloCal Roots will implement more severe odor control methods such as expanding the number of portable air filters or creating negative pressure inside the building by exhausting air outside with an inline carbon filter as is commonly used in cultivation odor mitigation methods. a FAMILY < bFARMS SlO CA1 6;preld HAZARDOUSSECTION 09 PLAN Hazardous Materials Emergency PREFACE SloCal Roots retail operations will have a very low risk for being the cause of a hazardous materials incident. However, SloCal Roots has prepared this Hazardous Materials Emergency Response Plan to address any potential incidents cause by SloCal Roots or others. APPROVAL & IMPLEMENTATION SloCal Roots has developed the Hazardous Materials Emergency Response Plan (ERP) to identify and implement hazardous materials emergency preparedness and response responsibilities. The ERP details the purpose, policy, concept of operations, direction/control, actions and responsibilities of primary and support agencies to ensure a mutual understanding and a coordinated plan of action is implemented with appropriate agencies within San Luis Obispo County. SloCal Roots directs each office, department and agency to study the ERP and prepare or update, as needed, the supporting plans and operating procedures needed to implement the ERP in the event of a hazardous material event. SloCal Roots is responsible for publishing and distributing this ERP and will issue changes as required. RECORD OF CHANGES HAZARDOUS MATERIALS EMERGENCY RESPONSE PLAN Change # Table of Contents I. INTRODUCTION 11. SITUATIONS & ASSUMPTIONS 111. CONCEPT OF OPERATIONS General Direction and Control Release Identification Notification Emergency Response Public Safety Responder Safety Resource Management Containment / Clean -Up Documentation and Investigation IV. RESPONSIBILITIES Agencies State Agencies Federal Agencies Non -Governmental Agencies Regulated Facilities V. TRAINING VI. EXERCISES VII. EPCRA REPORTING VIII. REFERENCES IX. ACRONYMS X. DEFINITIONS Appendix A — Regulated Facilities Appendix B — Incident Command Agency Appendix C - Public Safety Procedures Appendix D — Incident Report FA-M LY FARMS SLO CA4 6;perld SECTION 10 ENERGY EFFICIENCY PLAN Energy Efficiency Plan Introduction There are many elements that SloCal Roots will implement to achieve energy efficiency. Lighting SloCal Roots will use only LED lighting in its facility. Light will not be left on when not in use. Lighted exit signs and emergency signs will also be lit using LED. Environmental Controls and HVAC The environmental controls and HVAC systems that SloCal Roots utilizes will be the most energy efficient systems available on the market at the time of this application. IT/Computer Energy Use Employees will be careful to turn off computers and other IT equipment when not in use. Hot Water System The hot water system will be an instant hot water heater and will be of a scale that is suitable for the operations of SloCal Roots. Building Efficiency Dual pane glass and sufficient insulation will be used to reduce the carbon footprint of the building. Any remodeling or construction at the premises will be done following green practices. Human Controls Employees will be encouraged to be energy aware throughout their lives. At work employees will be expected to turn off electric devices when they are not in use. Solar and Net Zero SloCal is committed to improving the environment by being a net zero business and will implement solar panels to achieve this. FAM1LY FARMS SloO CA4 Prelff SECTION 11 ADDENDUMS FA M -TY '(b FARMS SL O CAC Pr© SECTION 11 ADDENDUMS Sub Section 11.1 Tax Documentation E U.S. Individual Income Tax Retum( ge) For the year Jan. 1 -Dec. 31, 2014, or other tax year beginning Your first name and initial Last name 2TEN T. ONNELLA iint return, spouse's first name and initial Last name 1040 (2014) Form to o (2ofe) AUSTEN T . CONNELLA TAXABLE YEAR 439001 12-23-14 2014 FORM California Resident Income Tax Return W ATTACH FEDERAL RETURN AUSTEN T CONNELLA A R RP For Privacy Notice, get FT8 1131 ENG/Sp. 022 3101144 Form 540 Cl 2014 Side 1 F7 439002 12-22-14 Your name: 6STEN T . CONNELLA Your SSN or ITIN: Sid. 2 Form 540 C1 2014 022 3102144 439003 12-22-14 Your name: TEN T. CONNELLA Your SSN or ITIN: 022 3103144 Form 540 C1 2014 Side 3 E_= 1d040 120151riU.S. Individual Income Tax Return( 99) OMB No. 1545-0074 IRS Use Only - Do not write or staple in this space. For the year Jon. I -Dec. 31, 2015. or other tax year beginning 2015, ending '20 LHA For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Form 1040 (2015) Fo.— AUSTEN T. CONNELLA TAXABLE YEAR FORM 2015 California Resident Income Tax Return 540 7% 'DR ATTACH FEDERAL RETURN RP M 022 3101154 1 Form 540 C1 2015 Side 1 539002 12-118-15 Your name: USTEN T. CONNELLA. Your SSN or ITIN: Side 2 Form 540 Cl 2015 022 3102154 0 53900312-18-15 Your name: USTEN T. CONNELLA Your SSN or ITIN: 022 3103154 1 Form 540 C1 2015 side 3 1(gg) 0406L I gmlkZ 0 I a 1L' U.S. Individual Income Tax Retum OMB No. 1545-0074 IRS Use Only - Do not Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Form, 1040 (2016) Farm 1040 (2016) TAXABLE YEAR 2016 r.-amomi 022 3101164 1__ Form 540 01 2016 Side 1 0 639002 12-29-16 Yoit,ir name: 6 TEN T. CONNELLA I Your SSNo,rITIN: 0 Sid, 2 Form 540 C1 2016 022 310 216 4 F- E El 639603 12-29-16 Your name: LISTEN T. CONNELLA Your SSN or ITIN: 3103164 F- 022 Form 540C1 2016 side E yg) U.S. Individual income Tax Return OMB No. 1545-0074 IRS Use Only - Do not write or staple in this space. For the year Jan. 1-Dec, 31, 2017, or other tax year beginning , 2017, ending , 20 See separate instructions. Your first name and initial Last name LHA For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Form 1040 (2017) Form 1040 (2017) AUSTEN T . CONNELLA TAXABLE YEAR 73WO1 12-21-17 2017 FORM APE California Resident Income Tax Return 540 ATTACH FEDERAL RETURN AUSTEN T CONNELLA 0 022 1 3101174 Form 540 2017 Side 1 739002 12-21-17 Your name: 6STEN T. CONNELLA Your SSNorlTIN: N Sid, 2 For, 540 2017 022 1 3102174 l Yourname: USTEN T. CONNELLA ,oureSwornnw: UE 1040 Department of the Treasury —Internal Revenue Service (99) 12017U.5. Individual Income Tax Return For the year Jan. 1-Dec. 31, 2017, or other tax year beginning 2017, ending Your first name and initial Last name MARISSA D ISAUCEDO If a joint return, spouse's first name and initial I Last name Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. QNA Form 1040 (2ol7) SAUCEDO Go to www.irs.gov/F`ormlo4O for instructions and the latest information. QNA Form 1040 (2o17) FAMTNy FA4W,S SLOCif ,( ODld SECTION 11 ADDENDUMS Sub Section 11.2 Articles of Incorporation Secretary of State Articles of Organization Limited Liability Company (LLC) OAPORTANT — Read Instructions Wore completing Ni form. Filing Fee - 3X00 Copy Fen -FtrW plain copy free. Additional copies: First page $1.00 & .50 for each attadvitent page , Cartikaitton Fee - S5-00 kriparont! LLC3 may have to pay an annual minimum $800 tax to the California Francn,."- Tax Board For more information, go to htlps:/1www.flb ca.gov. FILED q-trStary Of State State of California OCT 13 2W C- This Space For Office Use Only 1. Limited Liability Company Name tS" Instructions - Must contain an LLC ending such as LLC or L.L.C. 'LLC" Tali be added, if not included.) SloCal Roots Farms, LLC 2. Business Addresses as i;ut* S"e, A0W,"s 01 7e4QnAWd Offt" in California - Do not list a P.O. Box 7731 Suey Creek Road City (m abbroviations) Santa Maria state CA zip Go" 93454 tm" M" AdOress of LLC. It diftmrit than Room 22 City (no aweviations) state zip co" Item 3a and 3b: It naming an individual, the agent must reside in California and Item 3a and 3b ffuM be 3. Agent for Service of Process completed with Me agents name and complete California street address. Item 3c: It naming a California Registered Corporate Agent a current agent registration cerfificata must be on file with the California Secretary of State and Item 3c must be completed (leave Item 3a-3b blank). a CaUtcrnia Agent's Finn Nsirnis (it sqvm is not a corporation) fAdda Name Last Name Suffix Gina Sapanza I, Stl-eel AddfaSs (it awl is not a ocrporauon) - Do not list a P.O. Box City (no abbreviations) SMA, ZIP Coils 7731 Suey Creek Road Santa Maria CA 93454 C- Calitom-a Ref;mW*4 Corporate Agents Narr* (if agent is a corporation) - Do not complete Item 3e or 3b 4. Management (Select only one box) The LLC will be managed by: E, One Manager M More than One ManagerL—1 F1 All LLC Membeqs) 5. Purpose Statement (Do not after Purpose Statement) The purpose of the limited liability company is to engage in any lawful act or activity for which a limited liability company may be organized under the California Revised Uniform Limited Liability Company Act. 6. The Information contained herein, including in any attachments, is true and correct, Christina Sava P nnt your nama here u'c'-t (REV 2016 Caft" Save" 0 Stift WWW 303 FA 1UY FARMS LO A4 o©l SECTION 11 ADDENDUMS Sub Section 11.3 News and Media r40 64LJr fPtK.fEQ GOT A tNEUS TIP? 00 ® Email Favorite ahare News October 31, 2007 Templeton dispensary decision faces more delays BY--KAIBEECH San Luis Obispo County medical marijuana patients will once again have to wait to ind out if they can fill their prescriptions locally. For the second straight meeting, county planning commissioners were unable to reach a verdict concerning a cannabis co-op, which would be located in an industrial park at 3850 Ramada Drive in Templeton. Because only four planning commissioners attended the Oct. 29 meeting, applicant Austen Connella requested that the decision be delayed until all five commissioners were available. Previously, at a July 26 meeting, the planning commission stalemated 2-2, when members disagreed about the exact distance between the potential dispensary and a nearby park A county staff report highlighted an ordinance that requires a minimum of 1,000 feet between a medical marijuana dispensary and any "playground" Supporters and ipponents of the dispensary have argued about the precise measurement between oth sites since the project was first proposed. Whether the dispensary is 1 or 1,000 feet removed from a playground, however, many locals don't want it in the county. Paso Robles Police Chief Lisa Solomon spoke out against the proposed marijuana dispensary at the late -October meeting, claiming that it would be "problematic" for the entire Central Coast community. There are secondary problems that go along with dispensaries in communities -- things like criminal activity, burglaries, other drugs being sold, complaints of overpricing, selling to healthy people, money laundering, and tax evasion;' she said. I don't want to see those issues bleed over into my community." SEARCH,F IND,E NJAY All Categories- 4- All Neighborhoods SUBMIT AN EVENT I MENUS Ile Central east's ultiniate f 'T clarity. gk ide. MORE BY --KAI BEECH SLO Police get a high-tech boost Jan 16, 2008 More )) Connella's attorney, Lou Koory, said in an interview that those who spoke out against the proposed dispensary were using shock strategies in an effort to persuade voters o side with their beliefs. NEWEST SLIDESHOWS The objections by law enforcement are scare tactics;' he said. "Certain politicians try to score political points, but they ignore the fact the dispensary model is the preferred method of distribution under state law." At the meeting, Solomon pointed out that cannabis clinics are illegal on a national scale. First and foremost it violates federal law;" she said. "I'm in the business of enforcing he law, so I don't think it should be there for that reason.' The philosophical debate about access to cannabis as medicine is over;' Koory said later. "People have voted for it, and the Legislature has provided for it. Equal protection requires equal access:' Though California voters approved the use of medicinal marijuana in the state in 1996 when they passed Proposition 215, cannabis clinics have been operating on legal eggshells ever since. Locally, those eggshells cracked when federal agents raided Central Coast Compassionate Caregivers in Morro Bay on March 29. Currently, the closest marijuana dispensary to San Luis Obispo County is located in Buellton. Despite the opposition, county senior planner Bill Roberson said he wants the dispensary in SLO County. New life for the Engulfed in flames: historic Fremont Ignite Fire Dance of Theater Santa Maria The historic Pozo MORE SLIDESHOWS... Since we have an ordinance in place, I would like to see the business be located here;' he said. "It's going to be monitored, so I hope it's run correctly and can become an example to other dispensaries in the county and in the state on how they're SLO New Times: "I rejoice in the rain, but not every- supposed has the luxury to... (View link) supposed to work and help people:' 03:09PM The planning commission is scheduled to discuss the issue yet again on Jan.10. I . SLO New Times: facebook.com/SLONewrmes/po LATEST IN NEWS Subtle inhalation: Tobacco prevention specialists are worried electronic cigarettes are addicting a new generation Jan 24, 2019 The sweet, sweet taste of confusion COMMENTS Email Oj Favorite Ushare Government shutdown hits SLO County Jan 24, 2019 Subscribe to this thread: By Email _$ With RSS Lucia Mar could increase the price of school lunches Jan 24, 2019 Money, money, money, money u More News » 1232PM SLO New Times: RT @pljohnson9: Get ready for some mini golf dates at El... 12:OOPM The Central CCoasfs ulti.niate food & drink guide. SEARCH NIT hRCIHN'VES LOGN Email of: Favorite JIShare Opinion » Street Talk April 09, 2008 Gone to pot There's a new boss around here, and I haven't even met him yet. He sounds promising enough, but the proof comes in the trenches, so I'm withholding judgment. For now. I won't be able to keep my big mouth shut for long, ut as a "welcome to the first day of the end of your life" present for his arrival, I'll be merciful and brief in this little tribute. Still, I'll offer this advice, Editor Ed Connolly. You're going to find out in a hurry that New Times means something to people around here. Locals look to it as a paper that will right the wrongs, listen -to all the things people feel need saying but nobody else will say, and give people who don't have power or influence or money or even a van to sleep under, a fair shake. Here's my advice to Ed: Go read up on every word New imes founder Steve Moss ever wrote. Ask people about their stories about him. Soak it all in. And then forget it. Don't let the assholes tell you that you have to run the shop just like Steve did, or the way Ryan Miller has, or anybody else, because you won't be able to. Be yourself, make New Times yours, and don't fuck it up. Good luck. Where credit's due Jur local paper of record has had a couple of good-looking stories in the last week or so. In one of them, they disclosed to the world that there have been questions about whether SLO Councilmember Allen Settle lives in SLO or not. Settle told the paper he lives there, but wouldn't say how often. They even worked up a little outrage on the editorial page over the issue. In another story, they told everyone how the volunteers at the Animal Shelter have been muzzled, told they can't talk to the media or anyone else, apparently, about their complaints about the way the place has been run under director Eric Anderson and the control of Sheriff Pat Hedges. It was a pretty good story, too. Only problem is, they didn't break either one of them. As my gentle readers know, New Times broke the Settle story --broke it and beat it like a drum for a month before he daily staffers lowered themselves to cover the issue. And the website mcoveredslo.com, run by two former New Times staffers, broke the other one. See, it doesn't hurt a bit to give a little credit where it's due. The Trib should try it sometime, because the truth is they're not fooling anybody. This is a hell of a small S[TRSCfLIBE SEARCH,F MtE NJOY All Dates- All Categories- Neighborhoods- FindEvents sustarr AN Mxr ReA3,0NICS NEWEST SLIDESHOWS place, and refusing to give credit --just like the big boys in the real media markets do -- just makes you look dumb. Seeing green m not saying she was on anything more than a mission, but the chief of police of Paso Robles lost some prudent inhibitions while she was testifying about the possibility of a medical marijuana dispensary appearing in her town. When Chief Lisa Soloman looked at Austen Connella--aka "the applicant;' the guy who wanted to start a medical marijuana dispensary on Ramada Drive near her town- she saw one thing: a pothead. And she made that finding blatantly clear in her aggressive testimony. Seems Soloman found her way onto MySpace, that never-ending virtual party, and found pictures of Connella looking all Cheech-and-Chong. She had a really amusing discussion with Supervisor Jerry Lenthall, explaining to him that people do this sort of thing on MySpace, which, she felt the need to also explain to him, is a website used for social networking. It's on something called the Internet. You get there with a computer. hen she went on to flat out accuse the guy (Austen, not Jerry) of illegally using drugs. I won't expect you to take my word for it. I'd hate to hear what she'd call me. Instead, here's what she said, word for word (and you can check the tape if you doubt it): I want to talk about Mr. Connella, your applicant;" the chief said. "He calls the proposed dispensary a business. And he smokes marijuana, it would appear, for ecreational purposes. Dispensaries offer lucrative opportunities for Mr. Connella. He's going to make big money and it offers an opportunity for him to support his own illicit drug habit" Hear that? He's a reefer freak! And the only thing he wants to accomplish is to make enough money off the sick and dying to get more of his poison! She said that she got the information from his MySpace page because he'd recently toted on there that his "mood for the day is: High.' She went on to show pictures from the site that showed him, among other things, smoking a monster joint. It wasn't exactly stuff I'd put on my resume, but it turns out, as Connella explained, that all the pictures were taken in Amsterdam, where smoking pot is legal! Plus, he has a prescription for it. And he explained that he is, in fact, an advocate of legalizing marijuana. So that's his excuse. But aren't cops supposed to gather a few facts before publicly accusing someone of a crime? And couldn't she have figured out that this fundamentally conservative and election -year -nervous group of supervisors wasn't a threat to approve the dispensary anyway? And wasn't she aware that there's another thing that's at least as illegal as ot use --something called public slander? Connella seemed to take it all in stride, maintaining a more even keel than the chief, but he did point out that the sheet that speakers get before they approach the New life for the Engulfed in flames: historic Fremont Ignite Fire Dance of Theater Santa Maria The historic Pozo MORE SLIDESHOWS...:: one has the luxury to (View D3:D9PM FASLO New7-idles: facebook.com/SLDNewTimes/po... 1232PM SLO New Times: RT @pljohnson5: Get ready for some mini golf dates at El 12 DDPM speaker's podium informs them they're to keep their comments confined to the issues, and not direct remarks at individuals. I guess it proves again that the rules don't always apply to the police. t FS - —IF ® Email n Favorite UShare LATEST IN STREET TALK Tur-Kaep wutf 3%nness Sound off Jan 24, 2019 bigley frankil, Aueller Thrice rejected plan moves on to th... COMMENTS Sound off Jan 17, 2019 Subscribe to this thread: By Email ',,')Wlth RSS I Subscribe to this thread READERS ALSO LIKED... Development, climate change, and trees Jul 20, 2017 What do you know about Carrizo Plain National Monument? Jun 15, 2017 e heroin probt S s Irincipal and S 1 about subste- ar and heroin Sound off Jan 10, 2019 Happy (fill in the blank) Day! - More Street Talk Post Comment Admit it: you were and still are) wrong Sep 14, 2017 SEARCH J7 ARCHIVES LOGIN Share w,=,r ® Email n5 Favorite U Share News April 09, 2008 Will medicinal pot return? County supervisors turn back a Templeton dispensary BY PATR/CKHOWE There were folks in wheelchairs, kids with signs, and hours of testimony. There were unchy exchanges, uncomfortable politicians, and patient -to -a -fault staffers. dick to enlarge PHOTO BY STEVE E. MILLER NEGATIVE ENERGY: Denis Robinson, who had testified in support of allowing a medical marijuana dispensary in Templeton, took a break as county t d t 4, 'd Moms and teachers and police officers and epileptics and local gadflies and children all testified about the supposed dangers and benefits of marijuana. But what wasn't evident in the April 8 Board of Supervisors hearing over a bid to place a medical marijuana dispensary near the freeway in Templeton was any support for the idea from those in power. The Planning Commission had supported the location, but the supervisors unanimously approved an appeal of the decision. Supervisors said that the location was too close to a park that was --although across a busy freeway-- within 1,000 feet of the dispensary and thus in violation of the county's plan. They also said it wouldn't have fit with the surrounding community. supervisors vo a again e t ea. Austen Connella, the bearded college student who has led the effort to build the dispensary, said even before the vote that he'd try again if he lost. He lost. He noted that the county has an ordinance explicitly allowing dispensaries in the unincorporated parts of the county, with certain restrictions --such as the 1,000-feet- from-any-park rule. The county has already approved medical marijuana dispensaries;' he said. People turned out in numbers for and against the idea, lining up at the podium for two hours of testimony. SLTBgCME SEARCH,F IND,E NJOY i -All Dates- --- -- JI All categories- j -All Neighborhoods- p I ^f PindE vents SUBMITAN EVENT P A return to the Montebello Feb 3, 2010 Pension fund slips further; a lawsuit is threatened Aug 26, 2009 Act fast: SLO's own'Clunkers' Bob Joslin, who works for the City of Atascadero, was there with his four children, all of them waving signs made from paper plates and Popsicle sticks featuring the word drugs" with a line through it. We've been taught in school that drugs are harmful;' said his 16-year-old daughter, ennie. "What kind of message would this send?" And Paso Robles Police Chief Lisa Soloman, who was one of two people who appealed the Planning Commission's decision, publicly questioned Connella's character in her presentation to the board. Showing pictures of his MySpace page on the large screen in the hearing room, she asserted that Connella appears to use drugs recreationally and illicitly. She reiterated her allegations in an interview, saying, "He's hiding behind the guise of being a medical marijuana user" Connella, dressed in a gray suit for the hearing, said in an interview that he felt Soloman's testimony was out of bounds. He said that the pictures she referred to were taken in Amsterdam, where marijuana use is legal, and he questioned why a land -use matter would involve public questions of his character. Ruch of the testimony at the hearing centered on the conflicts between state and federal law. California voters passed Proposition 215 in 1996, legalizing marijuana for medical purposes. But federal law still bans marijuana for medicinal use, and federal law enforcement agencies have cracked down on California dispensaries, including one that existed in Morro Bay. ther testimony centered on the question of whether dispensaries attract crime -- there was testimony both ways --and about whether the county needs more complete regulations for any possible dispensaries. By the end of the hearing, much of the supervisors' testimony centered not on whether, but how they would deny the appeal. They discussed at length denial language they felt could survive a legal challenge. The community spoke loud and clear;' said supervisor Katcho Achadjian. "It is what it is" The board officially denied the dispensary on the grounds that it was out of character with the community and didn't meet the 1,000-foot required distance from a park. Managing Editor Patrick Howe can be reached at phowe@newtimesslo.com. Tags: News Q®Email L5 Favorite Share LATEST IN NEWS program has limited numbers Aug 19, 2009 More ) NEWEST SLIDESHOWS New life for the Engulfed in flames: historic Fremont Ignite Fire Dance of Theater Santa Maria The historic Pozo MORE SLIDESHOWS_. SLO New Times: Glen and Anna Starkey review'lf Beale Street Could Talk,' in... 12:OOPM SLO New Times: Glen and Anna Starkey review'lf Beale Street Could Talk' in... (View link) 07:39AM SLO New Times: RT @NewTimes5LO: What health and beauty trend are you embracing in 2019? 07:30AM SEARCH IJT ARCHIVES LOG N Lii - _ Sna.e Tweet ® Email Favorite Share News )) Cannabis Corner April 19, 2018 Bloom or bust: An inside look at the emerging legal cannabis industry in SLO County BY PETEP,IOHNSON Austen Connella and Kristin Kordich's family cannabis farm isn't easy to find —and that was the idea. It's tucked away in the Suey Creek valley, several miles east of Nipomo, in one of San Luis Obispo County's remote nooks and crannies. Amid virtually untouched rolling hills and oak woodlands, Connella and Kordich bought the land in 2013 with seclusion in mind. Back then, cultivating cannabis for a living came with a heavier stigma. click to enlarge FAMILY FARM Austen Connella (left) and Kristin Kordich (right) pose in front of their Suey Creek cannabis farm with their 3- ear -old dau hter That was one of reasons we originally came out here;' Connella said while leading up a winding driveway to his property. "Five years ago, things weren't where they are today. We were still trying to keep it out of the eye of the public and be safe:' Except for chatter from Connella's 3-year-old daughter, who's playing outside with Kordich, it's quiet by his house with expansive views of the valley. A large bed of cannabis plants sits about 50 feet from the front door. Identical beds are scattered throughout the property. In total, they have 1,000 plants on the organic farm they call SloCal Roots. I practice regenerative agricultural;' Connella said. "We bring the soil in from Shasta —volcanic, ancient riverbed. That's the blend that's made up there and brought down here. It's got good bacterial life in it and we try to keep it alive:' y g For his entire adult life, Connella, 35, has envisioned a day when cannabis farmers could be onsidered on the same playing field as other agriculturists in SLO County. As a teenager in Atascadero, Connella learned about the medicinal qualities of cannabis on trips to the San Francisco Bay Area, and started his own cannabis grow at home at age 18. A few years later, Connella would become the first in the county to apply to open a storefront medical dispensary in Templeton. County supervisors denied the POR All Dates— — ---- -- I -All categories- Neighborhoods - SUBMIT AN EVENT Bingeable: Bettor Call Saul Jan 24, 2019 Go-karts, mini golf coming to El Chorro Park this summer Jan 24, 2019 project in 2008 and have yet to approve the establishment of a dispensary. But California (and SLO County) voters' recent approval of Proposition 64 gives Connella hope that a shift can take hold in SLO. You have third and fourth generation wine growers, they're respected;' Connella aid. "I always wanted to do it with the blessing of the county. Finally, we're getting the chance now to come into the light here. We still have a ways to go:' A red binder filled with hundreds of pages of completed paperwork sits on his dining room table: It's his application for a minor -use permit, a required step to becoming a licensed, legal farm. Gazing outside at the cannabis plants, Kordich summed up the stakes for her family as they await the necessary approvals from SLO County. MENUS The Cetitrr il Coasts ultimate kwAit . drink guide. This is our future right here;' Kordich said. Looking down at her daughter, she added, This is her future! Vhile many saw the legalization of cannabis in California as inevitable, the clunky reality of its implementation county -by -county was perhaps less foreseeable. Local ordinances have created a checkered map of sorts, with some regions allowing a cannabis economy and others deliberately turning it away. In SLO County, the doors are slowly creeping open. While cultivation is restricted and highly regulated, and retail sales are mostly confined to deliveries, local industry members are mobilizing and positioning themselves to not only get their foot in the ioor as licensed operations, but to grow their businesses. Costly barriers to entry and a regulatory landscape that continues to change are challenging entrepreneurs as they find their footing in a brand new industry. Putting down roots If Connella and Kordich represent the shrouded -from -view type of cannabis grower, Charlie Doster assumes the opposite label. Doster, 60, runs SLO Cloning, a cannabis nursery, right out of his garage in residential Los Osos. Doster will need to change his setup to comply with new county regulations, so he's looking for a nursery space on the coast to move the business. We need to stay in the coastal zone because of the click to enlarge humidity and the cool temperatures;' Doster said. Clones are very sensitive to what's called desiccation. They'll dry out. When you cut a clone, t doesn't have a root system so it can die almost immediately if the humidity is too low. We need to stay where the temperatures are cool and moist so we don't run into these problems" Palomar project moves forward after ruling on trespassing cas Jan 24, 20 More NEWEST SLIDESHOWS New life for the Engulfed in flames: historic Fremont Ignite Fire Dance of Theater Santa Maria The historic Pozo MORE SLIDESHOWS..,» The cannabis supply chain begins in a nursery. Doster said he has 5,000 unique cannabis strains, which he gets delivered to him from cloners in San Francisco. He nurtures them in his garage, and ey sell for about $10 apiece. He deals with local growers, as well as growers throughout the Central Coast and Central Valley seeking his varietals and care. Doster also has customers who grow for personal use. Clients with illnesses like cancer are offered free or discounted clones to grow their own medicine. We have medical strains in stock at all times;' Doster said. "Even with a degree in horticulture, it's taken me years to really understand how to do this and do it right.... Anyone can grow cannabis. You can throw a seed out into the asphalt of your driveway, it's going to sprout, and you'll have a little marijuana plant. But growing medical -grade cannabis —high-grade, sellable, top -end cannabis IN•HOME NURSERY Charlie Doster, owner of SLO Cloning, stands among cannabis plants that outgrew his Los Osos nursery. Doster runs a cloning business out of his garage but is seeking a new location. sometimes people get lucky, but usually it's an experienced grower who knows what he [or she's] doing:' As the bottom -floor building block of the industry, clone businesses are dependent on a healthy market above them. And that's one reason why Doster is worried about SLO County. In the county's ordinance, cultivation land -use permits are limited to a list of 141 growers who registered their sites in 2016 when the county passed emergency regulations to curb cannabis grows in the California Valley. The rdinance also bans all outdoor personal cultivation (of up to six plants) and storefront dispensaries in unincorporated communities, like Los Osos, Templeton, and Nipomo. Doster thinks those restrictions will inhibit many current cannabis cultivators from being able to continue, and, in turn, jeopardize his business. We supply clones to growers. If there are no growers, we don't have a business;' he said. Doster and Connella both hold a "golden ticket" in SLO County, as industry members sometimes call them They're two of the 141 growers. Connella is even luckier. He's one of about 30 who doesn't have to relocate his farm. Everyone else on the list has until the end of 2018 to find property and apply for a county permit. If they don't, new cultivators may apply for unallocated permits of the 141;' said Rob Fitzroy, the deputy director of SLO County Planning and Building. That's a tight timeline to secure new land, prepare infrastructure, and submit a permit application attached with thousands of dollars in fees, Doster said. As of press time,18 cannabis land -use applications were filed with the county. Nearly all of them involved cultivation operations. It might sound like there's enough time. In reality, it's not;' Doster said. "I'd say the average investment is $100,000.... The industry is expected to legalize and normalize, but it's not realistically possible with the timeframes. Some people are going to make t, but very, very few." Larger businesses with more resources may be in the best position to succeed, according to Doster and others. A 250,000-square-foot greenhouse nursery and flowering operation in Nipomo is one of the 18 businesses with submitted TRENDING NOW applications. Located at the former Clearwater Nursery site on Mesa Road, cannabis replaced cut flowers in 2016 when that business went under. CFAM Management Group runs the facility, an arm of a major California cannabis brand, Cookie Farm. click to enlarge CLIPING FOR CLONES Workers at the CFAM nursery clip "mother' cannabis plants, preparing them to be replanted as clones. CFAM's greenhouses stretch for hundreds of yards in every direction. Thousands of cannabis plants in every stage of growth are potted in neat and tidy rows. Workers methodically trim the "mother" plants, readying them to be replanted as new clones. grow manager held a notebook as he walked from row to row, inspecting the mature plants and jotting down notes. A Colorado native, he said he's tasked with maximizing the production of the "flowering" area, which was reduced by 90 percent to 22,000 square feet after the county ordinance passed. CFAM consultant Sean Donahoe told New Times the nursery was forced to lay off 52 employees after the county scaled back the growing area. he nursery's maintenance manager, Alejandro, has been an employee at Clearwater for 20 years. He said the transition from cut flowers to cannabis is pretty mundane and straightforward. Cannabis is just more lucrative. It's the same really;" he said. Harvest, process, and extract Cannabis naturally flowers in the fall. Too much sunlight on a mature plant inhibits its flowering hormone. In late August, when the days get shorter, those hormones let loose and buds form. Cultivators manage to get multiple harvests per year out of the plants by using artificial light and tarps to mimic the natural seasons. EMSCULPT- is rots in &sn Luis Ob n po! X We use artificial lighting to keep the plant in a vegetative state when the daylight hours aren't long enough;' Connella said, "and we cover them with the tarp so they think it's nighttime [to induce flowering]. We keep them on that cycle:' After the plant flowers, it's time to harvest it. The harvested plant goes to a processing facility for trimming and drying, and, after testing, the buds can then be distributed and sold. But cannabis can also go through a manufacturing process to extract its oil, which can be vaporized, injected into edibles or tinctures, or added to other products ke topicals. Photo By Jayson Mellom EXTRACTING CANNABIS OIL Cannabis entrepreneur Jason Kallen stands next to Manufacturing is Jason Kallen's niche. The local cannabis entrepreneur and director of the SLO chapter of the National Organization for the Reform of Marijuana Laws (NORML) tents a warehouse space off Tank Farm Road, where he runs a cannabis manufacturing operation that resembles a science lab. Front and center is a closed -loop carbon -dioxide CO2) extractor, about a 4-foot-long machine that Kallen said costs $120,000. Swapping butane with CO2 would've made the equipment 90 percent cheaper, he said, but the county banned manufacturing with volatile (flammable) substances. Kallen packs a narrow cylindrical canister full of cannabis flower and flips on the CO2 machine to start the extraction process. his carbon -dioxide extractor machine at a "The gas comes from the tank and pressurizes [thewarehouseoffTankFarmRoad. cannabis] in the vessel at up to 3,000 pounds per square inch (PSI) or a little higher;' Kallen explained in a simulated walkthrough. "At a certain pressure and temperature, CO2 becomes what we call 'supercritical; which is not a liquid and not a gas, it's an in- between state. It acts as a solvent when it's supercritical:' The oil extracted from the flower mixes with the CO2, moving into another chamber. There, the PSI drops to 300, which turns the CO2 back into a gas, Kallen said. he gas can no longer hold the oil, so then the oil falls down into the bottom canister;' he said. The machine runs for hours before all the oil is extracted. When it's complete, the oil is dissolved in ethanol (at a 10:1 ethanol to oil ratio), and then put in a freezer that's set at minus 40 Celius. The solution gets filtered three to five times to remove fats and lipids, and, finally, it's put through a rotary evaporator to remove the ethanol from the oil. If the oil comes out clear -colored, it's ready to go. allen sells the oil in bulk and in small cartridges that are designed to attach to a vaporizer pen. He mostly does business in the Los Angeles market right now, but he wants to upgrade his extraction equipment to become a leading manufacturer in SLO County, as well as establish his own cannabis grow in Templeton. When we upgrade, we're going to go to a [CO21 unit that's 12-feet-long and $600,000;' Kallen said. "We'll be able to do 125 pounds per day." Not everyone producing cannabis oil has the means to scale up their businesses to such an extent. Deborah Caldwell, an Atascadero-area resident, crafts popular cannabis -infused medicinal lotions out of her house using home-grown plants. She's distributed small batches of "Topicanna Sungrown" to Bay Area dispensaries for a few years. With the new county ordinance and a more competitive market, Caldwell knows it'll be impossible to continue making her medicine in the same way. I need to find investors moving forward because the game is out of my league at this Joint;' Caldwell said. "I really can't do this on my own. The game's too big now:' Reaching consumers Tami Peluso and Cynthia Gonzalez are examples of early survivors of the cannabis game. Co -owners of the Arroyo Grande -based delivery service Elite Care, they became the first industry members in SLO County to obtain both local and state licenses on Jan.1, 2018. ormer employees of Fortune 500 companies in San Francisco, Peluso and Gonzalez left their day jobs and entered the cannabis industry four years ago. They said they discovered a major need for trustworthy medical cannabis providers after struggling to find medicine for Peluso's mother when she fell ill with cancer in 2009. Since then, Peluso and Gonzalez not only became cannabis entrepreneurs, launching a successful San Francisco medical delivery and consultant service, but policy advocates at the state level during the Legislature's development of post -Proposition i4 cannabis laws. click to enlarge LICENSED Tami Peluso (left) and Cynthia Gonzalez (right) are co-founders of Elite Cam, an Arroyo Grande -based cannabis delivery service and the first state -licensed cannabis business in SLO County. About a year and half ago, deliveries were taken out of the regulatory structure. The big bats that own the dispensaries wanted deliveries to only be a component of a rick -and -mortar," Gonzalez said. 'When they made that move, we said, 'We're not going to let this happen: We had to go into activist and lobbyist mode. About 10 of us got deliveries back on the map in California:' Elite Care's most important service to the community, according to the owners, is educating patients about cannabis products through individualized consultations. We do a lot of education;' Peluso said "When people call us and say I want a certain product, we ask them, Well, what are you trying to do?' We ask questions:' Moving into the Central Coast, Peluso and Gonzalez entered a crowded cannabis delivery market with literally hundreds of services. Despite being the only licensed delivery, they don't feel like they're squeezing out their local competitors. More delivery companies will likely obtain licenses as local governments start allowing them to operate openly. It didn't change the environment," Gonzalez said. "And it wasn't designed to. We ame here to open up the market. We came here to lift the bans:' As other delivery services come out of the dark, they'll face some of the same regulatory requirements as Elite Care did, such as installing extensive security measures at their closed -door dispensary location. If you talk to the security companies, it's a more robust system than they put in any itibank, Wells Fargo, Chase Bank anywhere across the nation;' Gonzalez said. Right now, Elite Care's cannabis products are sourced from outside the county. As a state licensed company, it can only legally do business with other state licensed businesses, and SLO County has only eight licensed cannabis cultivations (for comparison, Monterey County has 332, and Santa Barbara County has 784). That will also be true for the Natural Healing Center, which will be the county's first brick -and - mortar medical dispensary, opening next month in Grover Beach. Dispensary owner avid Separzadeh said that, in time, he hopes to stock his shelves with some locally grown cannabis products. We need to carry the major brands. But the local brands are also important;' Separzadeh said. 'We'd like to take those local brands and explode them into the market." Adult -use brick -and -mortar cannabis dispensaries are also on the horizon. The Grover Beach and SLO City Councils have expressed interest in allowing adult -use stores, with SLO set to vote on a new cannabis ordinance on May 1. While dispensaries are banned in unincorporated SLO County, some industry members expressed optimism for a "farm -to -table" business model that would involve cultivators growing, processing, and manufacturing cannabis on the same land, and then delivering to customers. That's been proposed in a number of the land - use applications submitted to the county to date, from rural Arroyo Grande to Paso Robles. "Canna -tourism" also holds promise, as the Central Coast is already a world- enowned wine destination. It's been very big in Colorado;' Doster of SLO Cloning said. "A lot of people have traveled internationally and domestically to legally consume." Staying united Being brought out of the shadows and into a strict regulatory structure has created some dysfunction and infighting within the local cannabis community, industry members admit. The "green rush" in the California Valley in 2015 and 2016 resulted in intense community backlash, county ordinances and, ultimately, the restricted list of 141 growing permits. The CFAM greenhouses in Nipomo irked some as a "big business" intrusion on the local scene. Early trade groups like the SLO County Cannabis Business Association didn't bring about the kind of cohesion many hoped for. Peluso and Gonzalez with Elite Care noticed the divisions right away when they came to the area and attended meetings. And as two women in a male -dominated industry, they noticed that vibe, too. They're divided amongst themselves;' Peluso said. I'm sitting there and listening to what's going on and not once did they ask me, What do you think?' We're two women, what do we know?" In March, locals announced the formation a new trade association, the Central Coast Cannabis Council (C4). Connella, the grower in Suey Creek and a C4 member, sees it as an opportunity to reset. He said aspiring industry members will have to work together if the legal cannabis market in SLO County is going to move forward successfully. It's a fresh start, and hopefully we learn from our own mistakes;' Connella said. "I think [the conflict] is a product of the black market. It's a'my turf type of mentality. But that's not what has gotten cannabis to where it is today. We've gotten to this BIG GREENHOUSE This 250,000- square - foot nursery in Nipomo is one of the largest in the county. Per new county regulations, operator CFAM Management Group was forced to downsize its operation and lay off 52 employees. egal market by banding together and educating the community and the Legislature on the benefits of weed and how harmless it is. Those things are accomplished through teamwork, not competition:' A Staf'WriterPeterjohnson can be reached at pjohnson@newtimesslo.com. Tags: Cannabis Corner O®Email a' Favorite Share SPEAKING OF...