1

City of Clearlake Guide to

Commercial Cannabis Permits

Currently the City of Clearlake, CA is accepting applications to obtain a permit for cultivation, processing, extraction, manufacturing, testing, and distribution activities with an approved Use Permit and Regulatory Permit within areas of the City zoned Cannabis Business District. As required by the City’s regulations, use permits for the operation of a commercial cannabis business also requires a development agreement. It is noted, however, that based on the City’s Cannabis regulations, only so many commercial cannabis licenses can be approved. A list of applications is provided here that shows that the City has received over the maximum number of licenses they can issue. However, the City is in the process of reviewing these applications and may or may not approve them. Pending issuance of the maximum number of cannabis licenses allowed, the City will accept additional applications and place them on a waiting list. The following is a summary of what is expected in processing new commercial cannabis applications. The steps applicants are expected to complete are as follows: Step 1: Attend Mandatory Pre-Application Meeting Step 2: Identify Property Zoned Location Suitable for Commercial Cannabis Activity Step 3: Submit Regulatory Permit Application Packet Requirements Obtaining a Commercial Cannabis Permit is a dual submittal process. Application must be filed with both the Police Chief and Community Development Department. Step 1: Attend Mandatory Pre-Application Meeting There is a prerequisite of scheduling a mandatory pre-application meeting prior to the submission of an official application package for a Commercial Cannabis Permit. All prospective applicants must schedule a pre-application meeting with the City of Clearlake by contacting Julie Burrow, Assistant Planner at 707-994-8201 x 100. The purpose of the pre-application meeting is to provide a comprehensive review of the application process, the application content, and the expectations of the City as it relates to permitting requirements such as the security plan, floor plan, cannabis operational characteristics, employee permits, licensing fees and taxes, monitoring and compliance, legal documents, etc.

2

Step 2: Identify Property Zoned Location Suitable for Commercial Cannabis Activity According to the City of Clearlake’s Commercial Cannabis Business Regulations, all licensed Commercial Cannabis Operations are permitted within the the Commercial Cannabis Business District subject to obtaining a Cannabis Business Use Permit from the Planning Commission. The regulations restrict operations within 600 feet from any currently sited youth facilities, such as public and private schools. During review of any Cannabis Business Use Permit the Planning Commission may require setbacks and/or buffering techniques next to other sensitive uses, such as near houses or apartments, such as fencing, walls, berms or landscaping to mitigate any potential conflicts between cannabis business uses and the use of adjacent property. Please refer to the City’s Cannabis Business District mapping. The following applications for land use will need to be submitted: Application Checklist of Dispensaries (if retail dispensary or delivery only dispensary) Application Checklist of Other Cannabis Activity Permits (if other types of commercial cannabis operations, such as manufacturing, processing, cultivation, testing, distribution). Additional information on fees and regulations can be found at the following links: Step 3: Submit Regulatory Permit Application Packet Requirements It is of utmost importance to the City of Clearlake City Council to regulate the commercial cannabis industry in a manner which takes into consideration the needs of patients and their caregivers while promoting the health, safety and welfare of residents and businesses. It is the responsibility of the Community Development Department and the Police Department to implement the City’s Commercial Cannabis Regulations and the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), which was signed into law on June 25, 2017 by the Governor which created a licensing and regulatory framework for both adult use and medicinal cannabis. At this time, the City of Clearlake is accepting permit applications for commercial cannabis cultivation (indoor), manufacturing (volatile/non-volatile), testing, distribution and wholesale nurseries, in accordance with the standards of the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) and the City’s adopted Commercial Marijuana Operations. There is an application fee of $7,500.00 for initial deposit per use permit and development agreement application plus potentially additional fees for environmental review that is due when submitting an official application. The Police Chief will review the entire application package once a completed package along with receipt of paid application fees have been received and then report to the Community

3

Development Director regarding findings. Moving forward from there, a complete use permit application must be submitted to the Community Development Department. The project, depending on size, may be subject to environmental review and clearances in accordance with the California Environmental Quality Act (CEQA). Once environmental clearances are obtained, the project can then be scheduled for a public hearing with the Planning Commission. Once the Planning Commission has reviewed and approved the use permit(s) with conditions, the Community Development Director can then issue the Cannabis Business Regulatory Business. Once the permit is issued, the project can proceed with other permits and clearances as required to meet regulatory requirements and the conditions of approval from the Cannabis Business Use Permit(s). There are several Regulatory Permit Application Requirements: Application Checklist

Cannabis Permit Application Form Application Checklist of Other Cannabis Activity Permits

Please contact Julie Burrow, Assistant Planner with any questions at (707) 994-8201 x 100 or jburrow@clearlake.ca.us.

4

City of Clearlake Application# CB- ______________

14050 Olympic Dr. Clearlake, CA 95422 707-994-8201 www.clearlake.ca.us

CANNABIS BUSINESS APPLICATION For Use Permit and Regulatory Permit

(Please print clearly and fill in/provide all that apply)

Type of Commercial Cannabis Use:

_____ Commercial Cannabis Cultivation

_____ Cannabis Manufacture

_____ Cannabis Distributor

_____ Cannabis Testing Laboratory

_____ Cannabis Nursery

_____ Cannabis Processor

REQUIRED FOR A COMPLETE APPLICATION

{ } Completed and signed Application Forms

{ } Additional Documentation { } Initial Application Fee Paid: ($TBD)

Applicant’s full

name:________________________________________________________________________________________

Applicant’s mailing address:

_______________________________________________________________________________________

Applicant’s phone number: __________________________________ Email: ______________________

Applicant’s physical home address:

_________________________________________________________________________________

Applicant’s tax ID number ____________________________

____________________________________________________________

Management/ Community Relations Contact(s)

____________________________________________________________________

____________________________________________________________________________________________

____________________________________________________________________________________________

____________________________

Applicant’s Height: ______________ Weight: ____________ Hair color: ______________ Eye

color: _____________________

Address of proposed business:

__________________________________________________________________________________

5

Square footage of proposed building: _____________________

Describe the site plan and floor plan (attach additional page if necessary):

____________________________________________________________________________________________

____________________________________________________________________________________________

________________________________

Number of Managers/Supervisors: _________ Number of employees: _____________

Names and addresses of anyone who will act as an owner, manager or supervisor of the facility (attach additional

page if necessary):

____________________________________________________________________________________________

____________________________________________________________________________________________

__________________________________

Describe proposed business and operations (attach additional page if necessary):

____________________________________________________________________________________________

____________________________________________________________________________________________

__________________________________

_________________________________________________________________________________________

____________________

Anticipated gross annual revenues:

_______________________________________________________________________________

DOCUMENTS TO SUBMIT

Please provide additional information as required in Section 18-12.050, 18-12.060, and Section 5-25 including

but not limited to the following:

{ } 1. Two passport quality, current photographs of the applicant.

{ } 2. Copy of birth certificate, passport, or valid California Driver’s License (not to include an AB60 federally

restricted license).

{ } 3. Sign off by Lake County Fire Protection District permitting the use.

{ } 4. The applicant must complete a criminal history check for the State of California and F.B.I. which is

approved by the

Chief of Police or his designee.

6

{ } 5. A sketch or diagram depicting the interior configuration of the premises, including the total floor area, drawn

to scale.

{ } 6. A site plan drawing depicting the facility and all properties within 600 feet.

{ } 7. A lighting plan showing existing and proposed exterior and interior lighting placement and levels.

{ } 8. A detailed security plan.

{ } 9. An odor control plan.

{ } 10. A detailed business plan.

{ } 11. Previous addresses for the past five years.

{ } 12. Property ownership and lease details.

AGREEMENT

APPLICANT’S SIGNATURE (Attach Notarized documents) I hereby certify that I will abide by the City of Clearlake’s Commercial Cannabis Ordinance No. 200-2017

and this agreement and that the information provided in this application is, to my knowledge, true and correct.

I hereby authorize City staff, including the police department, authority to conduct a criminal background check

pursuant

to California Penal Code Section 11105(b)(11) and 13300(b)(11), which authorizes city authorities to access state and

local

summary criminal history information for employment, licensing, or certification purposes; and authorizes access to

federal level

criminal history informtion by transmitting fingerprint images and related information to the Department of Justice to

be

transmitted to the FBI every person listed as an owner manager or supervisor of the marijuana business must submit

fingerprints and other information deemed necessary by the City Manager or his designee for a background check by

the

Clearlake Police Department. I understand that any material misrepresentation may result in either denial or

revocation

of dispensary permit.

Applicant’s Signature: Date:

FOR OFFICE USE ONLY

APPROVED BY: ___________________________________________

DATE: ____________

_______________

{ } Credit Card _______ { } Debit Card________ { } Money Order { } Cash { } Check #__

7

Application Checklist for Cannabis Dispensary Permits. The following items are required to be submitted when applying for a Cannabis Dispensary Business Permit. Please note that the City restricts the number of dispensaries to three (site purchase) and two delivery only. Delivery only dispensaries are subject to a use permit from the Planning Commission, whereas an on-site sales dispensary is subject to a commercial permit issued by the City Manager. This list, while comprehensive, may not be exhaustive and other information may be required during the information completeness review period or prior to environmental review. Seven (7) full-sized copies, one (1) reduced 11” x 17” copy, and one (1) reduced 8.5” x 11” of plans are required. Two (2) copies of reports and supporting information are required. Failure to provide any of the following items may result in rejection of the land use permit application. Application. A complete land use permit application, including the one-page cannabis supplement and a consent of landowner form if the applicant is not the landowner. Application Fee. The application fee must be paid in full upon application submittal. Site Plan. The site plan shall include the site location and dimensions, road access and street improvements, all buildings and structures on the site, any easements on the site, utility information (including water source), site improvements (including driveways and parking areas), topographic contour lines (including any proposed grading), trees (existing and those proposed for removal or replanting), any building envelopes. Proof of Legal Access. Applies if access is not from a public road. No land use or construction permit shall be approved for any site unless the site has legal access and all-weather physical access to a public road. Vicinity Map. A map showing at least one-thousand (1,000) feet of surrounding area and the distances to the following uses: any pre-school, elementary school, junior high school, high school, library, park, playground, recreation or youth center, licensed drug or alcohol recovery facility, or licensed sober living facility. Distance shall be measured from the nearest point of the property line of the site that contains the cultivation to the nearest point of the property line of the enumerated use using a direct straight-line measurement.

8

Preliminary Floor Plans and Architectural Elevations. If use of structures is proposed. In accordance with the Municipal Code, the following additional information is required for a Dispensary Business Permit Application: 1. The applicant’s full name (including any current or prior aliases, or other legal names the applicant is or has been known by, including maiden names), current address, and telephone number. 2. The address where notice of action on the application is to be mailed. 3. The applicant’s previous addresses for the two (2) years immediately prior to his or her present address. 4. Written proof that the applicant is over the age of 21 years of age. 5. The applicant’s height, weight, color of eyes and hair. 6. Two (2) passport-quality, current photographs of the applicant. 7. A birth certificate, passport, or valid California Driver’s License (not to include an AB60, federally restricted license). 8. The applicant’s business license and a copy of the applicant’s seller’s permit (retail sales tax permit) issued by the State Board of Equalization. 9. All the name or names and addresses of the person or persons who will act as a manager or supervisor of the dispensary or delivery only dispensary. 10. Pursuant to California Penal Code Sections 11105(b)(11) and 13300(b)(11), which authorizes city authorities to access state and local summary criminal history information for employment, licensing, or certification purposes; and authorizes access to federal level criminal history information by transmitting fingerprint images and related information to the Department of Justice to be transmitted to the Federal Bureau of Investigation, every person listed as an owner, manager, or supervisor of the marijuana business must submit fingerprints and other information deemed necessary by the City Manager or his/her designee(s) for a background check by the Clearlake Police Department. Pursuant to California Penal Code Sections 11105(b)(11) and 13300(b)(11), which requires that there be a requirement or exclusion from employment, licensing, or certification based on specific criminal conduct on the part of the subject of the record, no person shall be issued a permit to operate a marijuana business or a related work permit unless they have first cleared the background check, as determined by the Chief of Police, as required by this section. A fee for the cost of the background investigation, which shall be the actual cost to the City to conduct the background investigation as it deems necessary and appropriate, shall be paid at the time the application

9

for a marijuana business permit is submitted. If this amount is not sufficient, the applicant shall provide additional amounts that are necessary and if the applicant is unable to provide the additional amounts necessary to complete the investigation, the investigation shall cease and shall not continue until such additional amounts are paid. Upon completion of the investigation or in the event the applicant withdraws their application, any fees paid for this process will be deemed non-refundable. 11. A written statement listing the physical size of the dispensary or delivery only dispensary, the number of managers, supervisors, employees and volunteers who will work there, and describing the nature of the proposed use of the dispensary or delivery only dispensary. 12. A security plan describing security arrangements that will ensure the safety of persons visiting and working at the dispensary or delivery only dispensary, and protect the premises from theft. The plan shall provide for: installation of security cameras; installation of a burglar alarm system monitored by a State-licensed monitoring service; and a periodic (no less than yearly) written security assessment of the site conducted by a qualified professional. 13. A sketch or diagram depicting the interior configuration of the premises, including the total floor area occupied by the dispensary or delivery only dispensary. The sketch or diagram must be drawn to a designated scale or drawn with marked dimensions of the interior of the premises to an accuracy of plus or minus six (6") inches. 14. A sketch or diagram showing exterior configuration of the premises, including the outline of all structures, parking and landscape areas, and property boundaries. The sketch or diagram must be drawn to a designated scale or drawn with marked dimensions to an accuracy of plus or minus six (6") inches. 15. A straight-line drawing accurately depicting the building (or portion thereof) and premises to be occupied by the dispensary, and all properties within six hundred (600') feet of the boundaries of the property on which the dispensary or delivery only dispensary license is requested. The drawing shall indicate the property lines of any youth-oriented facility and all residential zones or uses within one hundred (100') feet of the primary entrance of the dispensary. 16. A lighting plan showing existing and proposed exterior and interior lighting placement and levels to provide adequate security lighting and which comply with all City standards regarding lighting design and installation. 17. Written authorization for the City, its agents and employees to seek verification of the information contained in the application and/or required pursuant to this Chapter.

10

18. A notarized statement by the property owner certifying under penalty of perjury that he or she has given consent to the applicant to operate a dispensary or delivery only dispensary at the location, or providing proof that the applicant owns the property. 19. A written statement by the applicant certifying under penalty of perjury that all the information contained in the application is true and correct.

11

Application Checklist for Other Commercial Cannabis Permits. The following items are required to be submitted when applying for a land use permit for cannabis activities (other than dispensaries). Types of commercial operations include cultivation, manufacturing, nurseries, processing, and testing labs. This list, while comprehensive, may not be exhaustive and other information may be required during the information completeness review period or prior to environmental review. Seven (7) full-sized copies, one (1) reduced 11” x 17” copy, and one (1) reduced 8.5” x 11” of plans are required. Two (2) copies of reports and supporting information are required. Failure to provide any of the following items may result in rejection of the land use permit application. Application. A complete land use permit application, including the one-page cannabis supplement and a consent of landowner form if the applicant is not the landowner. Application Fee. The application fee must be paid in full upon application submittal. Site Plan. The site plan shall include the site location and dimensions, road access and street improvements, all buildings and structures on the site, any easements on the site, utility information (including water source), site improvements (including driveways and parking areas), topographic contour lines (including any proposed grading), trees (existing and those proposed for removal or replanting), any building envelopes. Proof of Legal Access. Applies if access is not from a public road. No land use or construction permit shall be approved for any site unless the site has legal access and all-weather physical access to a public road. Vicinity Map. A map showing at least one-thousand (600) feet of surrounding area and the distances to the following uses: any pre-school, elementary school, junior high school, high school, library, park, playground, recreation or youth center, licensed drug or alcohol recovery facility, or licensed sober living facility. Distance shall be measured from the nearest point of the property line of the site that contains the cannabis operation to the nearest point of the property line of the enumerated use using a direct straight-line measurement. Preliminary Floor Plans and Architectural Elevations. If use of structures is proposed.

12

Operations Plan. Includes a security plan, odor management plan, sign information, parking plan, employee safety and training plan, a statement of neighborhood compatibility, and a waste management plan (both solid and liquid waste). For any manufacturing operation, the operation plan must include a complete description of the manufacturing, materials used for processing and details of all equipment used. The following items may be required based on specific site characteristics or cannabis activities requested. Materials Plan. A list of all pesticides, fertilizers, and any other hazardous materials that may be used, and a storage plan for these materials. Storm Water Control Plan (SWCP) Application. Grading Plan. If applicable. Drainage, Erosion, and Sedimentation Control Plan. If applicable. Include SWPPP plan WDID number, if applicable. Water Management Plan. Including proposed water supply and conservation measures, and any offset requirements. Archeological Report. If applicable. Botanical/Biological Report. If located in an area with the potential to contain rare, threatened, endangered, and/or special-status plant or wildlife species (includes ESHA and some SRAs). Geologic Report. All land use permit applications for projects located within a GSA shall be accompanied by a report prepared by a certified engineering geologist and/or registered civil engineer (as to soils engineering), as appropriate. Noise Study. Where required by the Noise Element or where the project adjoins a potential noise generator, a noise study shall be required to be prepared by a qualified individual approved by the Director. Traffic Analysis. Upon application submittal, all traffic-generating uses shall be specified. Where substantial amounts of traffic are proposed or traffic safety concerns are identified, a traffic study shall be conducted by a qualified transportation engineer. Visual Analysis. For applications that propose development along significant visual corridors, as identified in the Open Space Element or the Land Use Element, a visual analysis shall be required to be prepared by a qualified individual approved by the Director.

13

In accordance with the Municipal Code, the following additional information is required for a Cannabis Commercial Business Permit Application: 1. The full name, present address, and telephone number, including such information to the Premises Owner. 2. Date of birth. 3. Tax identification number.

4. The address to which notices relating to the application is to be mailed.

5. Previous addresses for the five (5) years immediately preceding the present.

6. The height, weight, color of eyes and hair.

7. Photographs for identification purposes (photographs shall be taken by the Police Department or provide 2 passport quality photos).

8. All business, occupation, or employment for the five (5) years immediately preceding the date of submittal of the application form.

9. The Cannabis Operation business history, including whether the Business Owner and Responsible Parties while previously operating in this or another city, county or state has had a cannabis related license revoked or suspended, the reason therefore, and the business or activity or occupation subsequent to such action of suspension or revocation.

10. Complete property ownership and lease details, where applicable. If the Business Owner is not the Premises Owner, the application form must be accompanied with a notarized acknowledgment from the Premises Owner that Cannabis Operations will occur on its property.

11. A descriptive business plan for the Cannabis Operation, including a detailed list of all Cannabis Business operations and activities proposed to occur on the Premises.

12. A diagram and floor plan of the entire Premises, denoting all the use of areas proposed for Cannabis Operations, including, but necessarily limited to, cultivation, processing, testing, transportation, deliveries, and storage. The diagram and floor plan need not be prepared by a licensed professional, but must be drawn to a designated scale or drawn with marked dimensions of the interior of the Premises to an accuracy of plus or minus six (6) inches.

13. The name or names of the Operator. The Operator shall designate one or more Responsible Parties, one of which shall at all times be available as a point of contact for the City, 24 hours per day. The contact information and schedule of the Operator and Responsible Parties shall be provided to the City Manager or designee and updated within twenty-four (24) hours of any changes.

14

14. A detailed response as to how the proposed operation complies with various regulations of the City’s Code as follows (responses should cross reference various other items submitted, such as the security and/or operation plan:

a. Complete contact information for the Person or Persons having management and/or supervision of the cannabis business as well as an onsite community relations contact (should cross reference this to the operation plan).

b. Security surveillance cameras installed to provide coverage on a twenty-four (24) hour basis of all areas where Cannabis is cultivated, weighed, manufactured, packaged, stored and dispensed in a manner that provides clear and certain identification of individuals. Cameras shall remain in active, operable condition and capable of operating under any lighting condition. Security video must use standard industry format to support criminal investigations and shall be maintained for ninety (90) days (should cross reference this to the security plan).

c. A professionally monitored robbery alarm system shall be installed and maintained in good working condition. The alarm system shall be installed and include sensors to detect entry and exit from all secure areas and windows. Cannabis Operators shall keep the name and contact information of the alarm system installation company as part of the business’s onsite books and records days (should cross reference this to the security plan).

d. Established limited access areas accessible only to authorized personnel and enforcement days (should cross reference this to the security plan).

e. Description of all stored and secured product and materials in a store room, safe, or vault in a manner that prevents diversion, theft, and loss (should cross reference this to the security plan).

f. Description of its procedures for transportation delivery, and safely and securely transporting Cannabis Products and currency in accordance with state law (should cross reference this to the security plan).

g. Description of all points of ingress and egress to a cannabis business to ensure the use of commercial-grade, nonresidential door locks and window locks (should cross reference this to the security plan).

h. Provide details of odor control measures and how they will assure that odors from cannabis cannot be readily detected from outside of the structure. The Cannabis Operator shall be solely responsible for taking any and all appropriate measures to meet this standard and to install, operate and maintain appropriate odor mitigation measures consistent with the manufacturer’s specifications and requirements (should cross reference this to the operation plan).

15

h. Exterior lighting must be provided for security purposes in a manner that shall be sufficient to provide illumination and clear visibility to all outdoor areas, including all points of ingress and egress, with minimal spillover on adjacent properties. The lighting shall be stationary, directed away from adjacent properties and public rights of way, and of an intensity compatible with the neighborhood, and in compliance with all illumination standards adopted by the City on a City-wide basis (should cross reference this to the security plan).

i. For manufacturing, all Cannabis Manufacturers shall utilize only extraction processes that are (a) solventless or that employ non-flammable, nontoxic solvents that are generally recognized as safe pursuant to the federal Food, Drug, and Cosmetic Act and/or (b) use solvents exclusively within a closed loop system that meets the requirements under the Federal Food, Drug, and Cosmetic Act including use of specified solvents, prevention of off-gassing, and certification by a licensed engineer (should cross reference this to the operation plan).

j. For manufacturing, all Cannabis Manufacturers shall receive and maintain approval from the Fire Department for the closed-loop system, other equipment, the extraction operation and the facility.

k. All Cannabis Manufacturers shall meet required fire, safety, and building code requirements in one or more of the California Fire Code, National Fire Protection Association standards, the International Building Code and the International Fire Code. Cannabis Manufacturer facilities, all operations conducted therein, and all equipment used must be in compliance with all applicable state and local laws, including all building, electrical, and fire codes. Cannabis Manufactures shall prepare hazardous materials handling and safety plans as required by state law and departmental guidelines for review and approval by the Fire Chief of the Lake County Fire Protection District or his or her designee, or if the proposed location is under the jurisdiction of CalFire, review and approval by the appropriate CalFire official in coordination with the Fire Chief of the Lake County Fire Protection District.

l. A hazardous materials disclosure/inventory statement shall be provided and kept current with the Fire Department. The Cannabis Manufacturer shall further provide the Fire Department with a lock box for keys to gates and doors.

m. All processing and analytical testing devices used by the Cannabis Manufacturer must be UL listed, or otherwise approved for the intended use by the City’s Building Official or the Fire Department. Any processing devices using only non- pressurized water are exempt from such approval.

n. A Cannabis Manufacturer that produces edible Cannabis Products must comply with the provisions of all relevant state and local laws regarding the preparation, distribution, and sale of food.

16

o. All cannabis and cannabis products shall be kept in a secured manner during business and non-business hours.

p. Provide details of an odor absorbing ventilation and exhaust system so that odor generated inside the Cannabis Business facility that is distinctive to its operation is not detected outside the Cannabis Business facility, anywhere on adjacent property or public rights-of-way, on or about any exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for common use by tenants or the visiting public, or within any other unit located within the same building as the Cannabis Business facility. As such, Cannabis Business facilities must install and maintain the following equipment or any other equipment which the City Manager or designee determines has the same or better effectiveness:

1. An exhaust air filtration system with odor control that prevents internal odors from being emitted externally; or

2. An air system that creates negative air pressure between the Cannabis Business facility's interior and exterior so that the odors generated inside the Cannabis Business facility are not detectable outside the Cannabis Business facility.

q. Provide details of a trash recycling enclosure.

r. Other than address signs, no exterior signs are allowed.

s. Provide details of and fencing, landscaping, and/or walls.

t. Provide details of off-street parking and access, including a calculation of required parking in accordance with the Zoning Code.

u. Provide details for any outdoor storage.

17

18

19

20