commercial cannabis public meeting
TRANSCRIPT
SantaBarbaraCA.gov
Introductory Comments
• December 5, 2017 – City Council adopted an ordinance to regulate and permit commercial cannabis businesses (Chapter 9.44 SB Municipal Code)
• January 23, 2018 – City Council established the application process and criteria to be used for any type of permitted commercial cannabis business
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SantaBarbaraCA.gov
Introductory Comments
• Chapter 9.44.090(C) of SBMC requires the City Administrator, or his or her designee, to conduct a public meeting so that the public may comment on the proposed commercial cannabis business.
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SantaBarbaraCA.gov
Introductory Comments
Information Available on Applications:• Chapter 9.44 Santa Barbara Municipal Code:
SantaBarbaraCA.gov/CCO• Application Process: SantaBarbaraCA.gov/Cannabis• Map of Proposed Locations: SantaBarbaraCA.gov/CCO• Submit Written Comment:
• U.S. Mail: CCBPEA, P.O. Box 1990, SB, CA 93102-1990• Email: [email protected]
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SantaBarbaraCA.gov
Order of Meeting
• Introduction of Application – City Staff• Presentation by Applicant (30 minutes)• Questions by City Staff• Public Comment – 2 minutes with speaker slip• Concluding Remarks by City Staff• Adjourn
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SantaBarbaraCA.gov
Order of Meeting
• Introduction of Application – City Staff• Presentation by Applicant (30 minutes)• Questions by City Staff• Public Comment• Concluding Remarks by City Staff
• Adjourn
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SantaBarbaraCA.gov
Concluding Remarks
Information Available on Applications:• Chapter 9.44 Santa Barbara Municipal Code:
SantaBarbaraCA.gov/CCO• Application Process: SantaBarbaraCA.gov/Cannabis• Map of Proposed Locations: SantaBarbaraCA.gov/CCO• Submit Written Comment:
• U.S. Mail: CCBPEA, P.O. Box 1990, SB, CA 93102-1990• Email: [email protected]
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LEADERSHIPROSS GARTENLAUB
• Managing Member of SBMS
• Former Chief Strategy Officer & Head of Sales for Concentrate Supply Co, a brand licensed and operated by Starbuds.
• Former Chief Operations Officer for Local Product of Colorado
• Former Executive at Extract Outfitters
LEADERSHIP(CONT)
CLAY BECKER• Managing Member of SBMS
• Former General Partner at Spliffin Manufacturing, Inc.
• Former Senior product strategist at James Cameron’s, Human Health Organization (HHO)
• Intellectual property branding acquisition expert
• Former Vice President of IP Sales for Ocean Tomo Capitol Merchant Bank
• Former Vice President of West Coast Brokerage
LEADERSHIP(CONT)
RYAN HOWE• President of SBMS
• Founder of “The Canopy Health & Wellness Center”
• Former President of Thunder Bay Pictures
• Former Producer of films and live concert events
• Former co-owner and manager of Metrix Communications
LEADERSHIP(CONT)
BRAD POLLACK• Industry Professional/Consultant
• Facility design and build out• Standard Operating Procedures• Custom Workflow Manual• Custom Software Solution
• Founder of Concentrate Companies and Extract Scientific• Consulted on licenses in Colorado, Illinois, New York and Canada• Developed multiple manufacturing operations that include all currently known
extraction and manufacturing types available in the industry. • Developed industry leading brands including Concentrate Supply Co and
Nomad Extracts
FACILITY400 E. Gutierrez St.
• Parcel ID 031-343-001
• Parcel Size: 11,797 S.F.
• Gross Interior Space: 9,636 S.F.
• Zoning MI
• Setback requirements
• No sign of a marijuana manufacturing facility.
MANUFACTURING• Private Label Services
• Plant material is transported from a third party source using the Distribution entity/license.
• The third party source provides instructions regarding what to manufacture from their plant material.
• SBMS manufactures, packages and labels inventory created at a fixed fee per unit.
• The Distribution entity delivery the finished packaged and labeled inventory to the third party, collecting the fee and taxes associated with the transaction.
• The Distribution entity will file and pay all applicable taxes associated with these transactions
MANUFACTURING• Wholesale
• Plant material is purchased by SBMS from a third party source • The Distribution entity/license will perform the payment for plant material upon pick
up, and collect the applicable taxes associated with the purchase. • SBMS will determine what products to manufacture based on consumer demand.• SBMS manufactures, packages and labels inventory, to be stored a secure area within
the facility. • The SBMS marketing and sales department is responsible for selling wholesale inventory
to licensed dispensaries. • Wholesale transactions will be delivered by the Distribution entity, collecting the invoice
total and taxes associated with the transaction. • The Distribution entity will file and pay all applicable taxes associated with these
transactions
MANUFACTURINGFacility Design
Security & Surveillance
Safety
Environmental Benefits
Standard Operating Procedures
Internal Custom Software
Inventory, Financial & Performance Management
Record keeping
Workflow
Track & Trace
MANUFACTURING(CONT)
• Facility Design• Safe and efficient flow of the operating activities
• C1D1 rated room for extractions with flammable liquids and gases
• Certified closed-loop extraction equipment
• NRTL certified equipment
• Oil mist filtration systems
• Carbon filtration system
• Eye wash stations
EXTRACTION• American Society of Mechanical Engineers,
3A, National Fire Protection• Association 58 LPG compliant• Engineer Peer Reviewed:
◦ California◦ Colorado◦ Illinois◦ Maryland◦ Nevada◦ Oregon◦ Pennsylvania◦ Washington
• 3A Sanitary food grade compliant• Class 1, Division 1 compliant
MANUFACTURING(CONT)
• Security & Surveillance• Secure access facility not open to the public
• Secured loading and unloading areas• Locking hard lid dumpsters for safe disposal of waste
• Security doors • Limited and restricted access areas within the facility are controlled by key fob access,
specific to each employee.
• Security alarm• Panic buttons through out the facility
• Exterior and interior surveillance cameras• Patrol Officers• Graffiti prevention, reporting and removal
MANUFACTURING(CONT)
• Safety
• Fire alarm and suppression
• Gas detectors
• Air filtration
• Eye wash stations
• Emergency Procedures
• LPG and Flammable Liquid Storage
• Product Safety and Storage
MANUFACTURING(CONT)
• Environmental Benefits• Secure waste management and record keeping of post extracted plant
material.• Professionally managed disposal of flammable or hazardous materials.• Air quality control using the air filtration systems.
• Dedicated Intake and Exhaust for the C1D1 Extraction Room.• HEPA filtration fume hoods for flammable liquids.• Carbon filtration for odor.• Oil mist filters on vacuum pumps to capture oil and carcinogens.
• Alcohol recycling
MANUFACTURING(CONT)
• Standard Operating Procedures• Staff training and continuing education• Security, Surveillance & Access• Safety Assessment, Policy and Programs• Emergency Procedures and Solvent Safety• LPG Storage and Use • Equipment operations and maintenance• Preparation of Marijuana Materials• Quality Control• Alcohol Handling• Solvent Recycling
• Extraction operations
• Plant Material Disposal
• Vacuum oven operations
• Distillation
• Infusion
• Packaging
• Staffing
• Inventory Management &Record-keeping
MANUFACTURING(CONT)
• Internal Custom Software• Inventory Management
• Intake• Batch Creation• Production Batch & Records• Test Results and Analysis• Finished Inventory• Inventory Auditor• Waste log
• Virtual Workflow• Standardized Forms &
Templates• Logistics
• Performance Auditors• Processes
• Staff
• Financials• Staff & Payroll Records
• Sales Transactions
• Income & Expenses
• Tax Filings and Payments
• Cash and Bank Reconciliation
MANUFACTURING(CONT)
• Inventory Management• Unique Intake and Batch ID’s• Batch Tracking: Plant Material, Processes, Production Batches, Waste/Loss, Packaging into Finished
Inventory, Manifesting • Double verification of data entry through Track & Trace and Custom Software
• Financial Management• Order fulfillment and Invoicing• Detailed reporting for all income (invoices) and expenses (including taxes)• COGS, Margin Analysis
• Performance Management• Extraction and Refinement Batches per shift/day• Yields by material source, process (extraction, refinement, infusion), packaging• Units per minute Packaging and Labeling
MANUFACTURING(CONT)
• Record-keeping• Virtual
• Track & Trace
• Internal Custom Software
• Paper Documentation• Manifests
• Batch Records• Production
• Packaging
• Inventory
• Audit Reports
• Invoices
• Expense Receipts
• Tax Filing and Payment Records
• Staff & Payroll Records
• Incident Reports
• Licenses and Certifications
• Inspections
MANUFACTURING(CONT)
• Workflow• Detailed manual describing the step by step instructions for performing every
activity within the facility.
• Material Intake
• Virtual Batching
• Physical Batching
• Extraction• Hydrocarbon
• Non-Solvent
• CO2
• Alcohol
• Distillation
• Test Sampling
• Production Batches
• Material & Waste Disposal and Record-keeping
• Quality Control
• Packaging
• Labeling
• Inventory Record-keeping and Storage
• Marketing & Sales
• Ordering Platform
• Order Fulfillment
• Invoicing
• Inventory and Financial Auditing
MANUFACTURING(CONT)
• Track & Trace• Material Intake
• Production Batches
• Test Samples
• Packaged Inventory
• Manifesting
• Returns
BEST PRACTICES• Safety
• Security
• Compliance
• Education
• Proven business model to promote structured, efficient and transparent operations
• No cannabis consumption of any kind on the premises
COMMUNITYBENEFITS• Locally owned and operated
• All staff will be residents of Santa Barbara county
• Local charities and community event participation
• Promoting health & safety through community outreach
COMMUNITYRELATIONS
• Meetings with neighborhood representatives and joining neighborhood organizations
• Community Event Interview Outreach Program
• Community Barbecue Event
• Donation of Instructional Video and/or Educational Program to the Community
• On-going training and education for Police and Fire Department personnel
THANK YOUSANTA BARBARA
MANAGEMENT & STAFF TEAM• Staffing Requirements
• Leadership
• General Management
• Department Management
• Department/Shift Leads
• Technicians
• Drivers
• Staffing Procedures• Phased expansion
• Recruitment & On-boarding
• Training & Continuing Education
• Certifications
• Emergency & Safety Procedures
• Incident Investigation & Reporting
• Disciplinary Procedures
DISTRIBUTION• Custom Online ordering platform with
transportation provided by the Distribution business
• Services: Third party processing between licensed businesses (cultivators/dispensaries and manufacturers).
• B2B: Wholesale transactions between licensed businesses
• Transportation Requirements
• Manifests and Tracking
• Pick up and Delivery Requirements & Procedures
• Collections
• Tax Filing & Payments
• Record-keeping
• Security Measures for Drivers
• Preventing Diversion
• SOP for Driver Theft and Robberies
• Packaging
• Biodegradable Packaging
• Certified Child-Resistant
• Tamper Evident
(Child-Resistant Packaging)
DISTRIBUTIONSecure Storage & Transportation
• Trained Drivers• GPS Tracked• Locked Compartments • Secured Product Storage• Secured Cash Storage• Unmarked Transport Vehicles
DELIVERY• Custom online ordering platform (B2C)
• Consumers must be verified before performing transactions
• Invoicing
• Manifesting
• Delivery Requirements & Procedures
• Collections
• Tax Filing and Payments
• Delivery Driver Security• Preventing Diversion
• SOP for Driver Robbery & Theft
• Advertising & Marketing
• Vendors
Delivery(cont)
• Drivers will be issued a company smart phone that will allow SBMS to track driver
• All Delivery drivers phones will be equipped with ID scanner app