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Item 7 - Additional Materials
Personal Note and Request to Dismiss Unjust Citation Dear Mayor, Mayor Pro Tem, and City Council, I have prepared the following report for the Palm Springs City Council. It is an accurate timeline of events and documents related to the alleged violation, brought forth by the Dept. of Special Program Compliance Code Enforcement Officers. My appeal hearing with the Administrative Appeals Board is November 30th, 2022. I seek the Council’s review to determine the reasoning and facts behind a) excessive inspections, b) Code Enforcement’s constantly changing interpretation of the rules, c) Code Enforcement’s lack of or limited cannabis knowledge and training in cannabis laws and ordinance procedures. All of these have led to a frivolous fine being issued to my business, Reefer Madness. It is important to note that I worked diligently to conform to all of Code Enforcement’s “suggestions,” even though we were already in full compliance with City and State rules, regulations, and laws. I run a very proper, thorough, and consistent business. My staff members are well trained experienced professionals. We have had no incidents of any nature since opening and are a good neighbor to all nearby. For reasons I don’t understand, we are being over-scrutinized as we follow all the rules all the time. There have been at least 24 unscheduled visits or inspections from Code Enforcement at Reefer Madness in 2-1/2 years. We were inspected as recently as last Friday, and then again today. There have been at least 33 other interactions (such as phone calls, emails, parking lot visits, or drive-bys) from Code Enforcement and the Dept. of Special Program Compliance. If a second violation were to be issued by the city to a cannabis business, it would be detrimental because it can result in a 6-month license suspension – a period long enough to put a small business - like Reefer Madness - out of business. I respectfully ask that you investigate, and take seriously, the treatment I have and am receiving. I believe you can then determine that the $5,000 fine, and its consequences are un-warranted. Please keep in mind that I received no official warning of the impending fine, even though I was able to meet the “immediate” deadline to reach this new compliancy request. Please also be aware that Code Enforcement was continually updated on the progress of this project and all other requests. I feel it is important to note that I am an honest and hardworking businessman. I have always paid my taxes in full and on time. My staff and I have been subject to continual unnecessary inspections and arbitrary requests. This is evident in the timeline and facts presented in this report. I need and ask for your help. I ask that after review and discussion, the City Council take action that will dismiss the citation. I have lost many nights of sleep due to this situation but remain hopeful, because I know this is not how Palm Springs intends to operate when working with business owners. Respectfully, Steven Wijatyk Owner of Reefer Madness November 27th, 2022 Table of Contents Serious Problems with the Staff Report prepared for AAB……………………………………………………………. 2 Summary of Evidence and Documentation…………………………………………………………………………………… 3 Why We are Not in Violation of the Alleged Violations in the 7/21/22 Notice of Violation…………... 5 Timeline of Events Related to the Security of the Back Room………………………………………………………. 9 Additional Hardships…………………………………………………………………………………………………………………… 14 Passing Tax Audit from the City of Palm Springs on Reefer Madness…………………………………………… 15 EXHIBIT A – Email sent to officer Nabhan with Requested Employee Information……………………….. 16 EXHIBIT B – Email Showing Commercial Lock Installation on 2/2/22 and Confirmation…………………. 20 EXHIBIT C – Email on 7/20/22 to officer Nabhan Detailing Exact Status of Cage Upgrade…………………24 EXHIBIT D – Email Sent to officer Nabhan and Ms. Goedhart… Cage Install was Complete……………… 29 EXHIBIT E – Email from Officer Nabhan “Suggesting” the Installation of a Security Cage………………… 32 EXHIBIT F – Cert. of Analysis for Products that officer Nabhan may be Confusing with Alcoholic Products………………………………………………………………………………………………………………………………………….35 EXHIBIT G – Security Cam Photos Disputing the Photo that Nabhan took of the Momentarily Open Door……………………………………………………………………………………………………………………………………………….40 EXHIBIT H – APPROVED SITE PLAN AND FLOOR PLAN………………………………………………………………………46 EXHIBIT I – Rest Areas and Meal Break Areas – From the Ca Dept. of Industrial Relations……………….49 EXHIBIT J – Palm Springs Municipal Codes Referenced in the Notice of Violation…………………………….51 EXHIBIT K – BATHROOM PHOTOS SHOWING DOOR AND WALLS THAT GO TO THE CEILING…………….53 EXHIBIT L – California Code of Regulations CCR §15000……………………………………………………………….….55 EXHIBIT M – Photos of Our Security Monitor, Viewable by Security and All Staff & Additional Shop Photos Showing Arrangement of Display Cases Creates a Limited Access Area……………………………….58 EXHIBIT N – Tenant Improvement Job Card…………………………………………………………………………………….61 EXHIBIT 0 – Certificate of Occupancy………………………………………………………………………………………………63 EXHIBIT P – Email from Veronica Goedhart Acknowledging Opening on March 18th, 2020………………65 EXHIBIT Q – Security Change Email from Grainger with Installation Instructions…………………………….67 EXHIBIT R – Security Cage Purchase Confirmation from Grainger……………………………………………………78 EXHIBIT S – Email from officer Nabhan listing “Items of Importance” for 2-Year Anniversary…………83 EXHIBIT T – Email from Grainger Advising that Part of our Order was on Backorder…………………….87 EXHIBIT U – Email to Officer Nabhan and Reply from Officer Nabhan Concerning the Inspection Results during our 2-Year Anniversary Celebration…………………………………………………….………………..89 EXHIBIT V – Various Emails from Grainger Detailing items on Backorder and Delays……………………92 EXHIBIT W – Email to Officer Nabhan Agreeing to Switch to the Blaze Point of Sale System………..98 EXHIBIT X – Tax Audit served to Reefer Madness at the 2-Year Anniversary Celebration & Notice of Audit Completion on August 10th, 2022…………………………………………………………………….101 EXHIBIT Y – Tax Offset Notice Falsely Claiming Fine “Delinquent”……………………………………………….107 EXHIBIT Z – Staff Report Prepared by City Staff… Item 7 – Reefer Madness……………...…………………109 2 Serious Problems with the Staff Report prepared for AAB 1. On page 4 of the staff report prepared and posted for AAB on 11/23/22 regarding Reefer Madness (see EXHIBIT Z), it says there is an “Administrative Citation” provided in ATTACHMENT 7 of the staff report. However, there is only a Notice of Violation provided in the staff report. There is no citation provided with a date and time of alleged violation. 2. The hearing notice provided on 11/22/22 in the staff report references vacation rental codes and calls the address 4693 Ramon Rd. a vacation rental. 4693 is not a vacation rental, it’s a dispensary. a. There are no codes referencing cannabis in the 11/22/22 notice. For these reasons, item 7, “appeal of the administrative fine of $5000 to Reefer Madness LLC for violation of 5.55.205(A)(2) and 5.55.110 of the palm springs municipal code” was not accurately noticed for the 11/30/22 hearing. See ATTACHMENT 2 in EXHIBIT Z. 3. Page 4 of the staff report says that “Staff finds that despite multiple attempts to gain compliance via education the business is in violation of §5.55.205(A)(2) and proceeded to issue Administrative Citation AB6003.” This is false. I’ve done everything code enforcement suggested and asked for, as evident in this report, even though it was not required, because we were already in compliance. See EXHIBITS B, C, D, and Z 4. The resolution in the staff report contains serious mistakes and false allegations. a. The resolution on page 6 of the staff report (ATTACHMENT 1 In EXHIBIT Z) references a citation No. AB6001. AB6001 is a citation issued to a business that is not mine that was heard at the 5/25/22 AAB meeting. b. The resolution falsely claims, “failure to provide current register and names upon reasonable request, as required and new employee information not submitted within 10 days prior to new employment.” There is no evidence of these allegations anywhere in the staff report. I provided the requested list of employees, complete with their live scan dates, immediately the same day requested, and officer Nabhan confirmed the information in a reply email. See EXHIBIT A and ATTACHMENT 1 In EXHIBIT Z. 3 Summary of Evidence and Documentation 1. The alleged deficiencies in the Notice of Violation in (ATTACHMENT 7 of the staff report EXHIBIT Z) concern the security of my dispensary storage area. The storage area had previously been inspected and approved by Code Enforcement prior to opening and on many subsequent visits. See Page 9, “Timeline of Events.” There have been no law charges since then that would require upgrades to our storage room. More importantly, the Department of Cannabis Control recently adopted changes to the California Code of Regulations, removing the limited access storage area requirement entirely. See EXHIBIT L. 2. Reefer Madness had already voluntarily taken two separate actions to further perfect the security for the storage area with the installation of a door in the summer of 2021 and a commercial lock on 2/2/22, even though the area was already secure, approved, and met all security requirements. See EXHIBIT B. 3. On July 20st, 2022 - the date of the inspection listed on page 2 of the staff report, and all other times, Reefer Madness was in full compliance with all state and local ordinances. I was already actively engaged in a third expensive upgrade to voluntarily perfect the storage area even further, by building a security cage, within an area that was already secure, already approved, and already met all security requirements. All necessary hardware and components had already been purchased, received, and partially assembled. I detailed an email to officer Nabhan with the exact status of the upgrade, complete with photos. See EXHIBIT C. 4. The installation of the security cage was complete on July 21st, 2022- the same date of the Violation Notice. I sent an email to officer Nabhan and Director Veronica Goedhart that night. See EXHIBIT D. 5. On July 22nd, 2022, at 7:50 am, Officer Nabhan re-inspected the storage room and deemed it to be, in his words, “good to resume operations” – even though we had never actually been asked to halt operations. See EXHIBIT D – email reply at 6:34am from officer Nabhan requesting re-inspection at 7:50am before opening. 6. No definitive requirement was ever placed on this upgrade that I had elected to perform, and no deadline for curing the alleged security area deficiencies was ever provided to Reefer Madness. These upgrades were voluntary actions that have been later construed to look like they were required to bring compliance - when in fact, we were already in full compliance. The staff report EXHIBIT Z states falsely on page 2 that “a timeline for correction and re-inspection was established.” No deadline was ever provided, and no timeline was established. See the second page of EXHIBIT E, where officer Nabhan only “suggests” a cage. 7. Code enforcement had been updated several times on the steps and progress toward this upgrade that had previously only been “suggested.” See EXHIBITS B, C, D, and E. 8. The inspection reports in ATTACHMENT 4 and ATTACHMENT 6 of the staff report EXHIBIT Z contain serious mistakes and false allegations. For example, the July 20th inspection report ATTACHMENT 6 says there are “alcoholic beverages or tobacco products onsite.” There is not, and there has never been such products onsite, and there is no evidence of such products provided. I was present for these inspections and 4 officer Nabhan never provided such allegation until the publishing of this Staff Report. Also, I never received a copy of these inspection reports, prior to the publishing of the Staff Report on 11/23/22 for AAB. If this “alcoholic beverages or tobacco products on- site” allegation was true, I think that officer Nabhan would have taken a photograph to prove it. There are photos provided of cardboard boxes with the words “Green Habitat – Champagne” written on them within ATTACHMENT 6 of the staff report EXHIBIT Z. Green Habit is a brand of flower, and the strain name is Champagne. I think that officer Nabhan is confusing some of the cannabis strain names and product names with alcoholic beverage products because of their lack of training and lack of familiarity with cannabis products. See EXHIBIT F for Metrc’s Certificate of Analysis (COAs) of items in our store which I think that officer Nabhan may be confusing with alcoholic beverages. I have included COAs for Green Habitat “Champagne,” Pabst Blue Ribbon “Seltzers,” Rebel Coast “Wine,” and Lagunitas “Hi-Hops” - all of which are non-alcoholic THC beverages. Also, if they were attempting “to gain compliance via education” as stated on page 4 of the staff report, why were these inspection reports never shared with me until the staff report was published on 11/23/22? 9. The evidence prepared in the staff report contains photos from inside the secure back- room storage area, taken by officer Nabhan during his inspection and re-inspection. This is the limited access area, which has no public view and no public access. The posting of the report with these photos compromises the secure privacy of my storage room and makes me worry. It reveals to the world the location of my cash safes, and valuable products, so a person with criminal intent looking at the staff report may attempt to rob me and know exactly where to find things. I think the photos taken from inside my back room should have been sealed from public access, if even needed for the staff report at all. See photos in ATTACHMENT 6 of EXHIBIT Z 10. The allegations prepared in the Staff Report contain 1 photo taken by officer Nabhan from the customers point of view, what appears to be showing that the door to the back room is left partially open. Officer Nabhan’s photo does not tell the full story. Officer Nabhan had requested a budtender retrieve Gustavo from the back room. The door was momentarily open as the budtender passed through to retrieve Gustavo. Once the budtender cleared the threshold and was not visible from officer Nabhan’s position, Nabhan took a photo of the momentarily open door. The door was momentarily open because one of my staff had just passed through the threshold, followed by other staff, and they were in the process of closing the door. The door was closed in 36 seconds or less after several staff had gone in and out. There were 6 staff plus a security guard on duty at the time. From several different security camera angles, it appears that officer Nabhan took the photo quickly and discretely while all my staff in the vicinity were facing the other way. It is important to note the layout of the store here, as well. No customer would be able to climb the counter shown and get to the back room, especially since staff is behind the counter and security is in front of the counter. Most importantly, this door was previously never required at all. All that was required separating the sales area from the back room, at the time of shop opening on March 18, 2020, was a fireproof curtain. See EXHIBIT G - the photos, and EXHIBIT H – the Floor Plan, and EXHIBIT M – additional shop photos. 5 Why We are Not in Violation of the Alleged Violations in the 7/21/22 Notice of Violation All responses below represent Reefer Madness’ day-to-day operating procedures that were in effect before, during and since the date of the Notice of Violation. 1. Description of the Violation(s) “Cannabis products at the business, that are not used for display purposes/samples/immediate sale, are not stored in a limited access area separate from the employee break room/personal item storage area and bathroom and are not secured in a locked safe room, safe or vault.” Response: NOT IN VIOLATION i. Cannabis products not used for display purposes are and have always been stored in a limited access safe room area separate from the retail sales area. ii. There is no employee break area because our total occupancy load is 23 persons, and we are not required to have one. Building code requires a break room for larger occupancies or other types of business. Furthermore, according to the CA Department of Industrial Relations, rest periods can be “limited to the employees work area.” Our acceptable rest areas are the lounge, the retail area, and outside the shop. Employees are not required to eat or break on premises. If employees do choose to rest, eat, or break inside, they may do so in the lounge or in the retail area. The lounge, shown in the floorplan, is a separate area from the storage area. See EXHIBIT H – the Floor Plan. See EXHIBIT I – CA Department of Industrial Relations standards which show that the necessary requirements are met. iii. The staff bathroom is and has always been separated from all storage areas by solid walls that extend from the floor to the ceiling as required by CCR §15000.7 Storage of Inventory. See EXHIBIT J, EXHIBIT K, and EXHIBIT L. iv. There is a separate bathroom for customers which is outside the dispensary and serves the site. See EXHIBIT H – site plan and floor plan. v. CCR §15000 defines that “Limited-access area means an area in which cannabis or cannabis products are stored or held and is only accessible to a licensee and authorized persons.” Cannabis storage areas are in fact only accessible to the licensee and authorized staff. See EXHIBIT L and EXHIBIT M 2. PSMC 5.55.205(A(2)) (b) “Dispensaries shall implement and maintain sufficient security measures to include, but are not limited to, the following: b- Establish limited access areas accessible only to authorized dispensary personnel.” 6 Response: NOT IN VIOLATION i. There is a limited access storage area with a locking door that requires key for entry, and only authorized personnel have a key. See EXHIBIT B ii. Surrounding the storage area, there is a continuous, 38-inch-high sales counter that prevents customers from coming within 10 feet of the door to the storage area. Furthermore, there is a security guard on site during business hours, and there are security cameras recording every inch of the premises and site. There is a 65-inch security monitor in plain view for staff and security to see. There are panic buttons throughout the shop that staff can push to alert police of a hold-up. A minimum of 2 staff are required behind the counter at all times, and staff can easily and discreetly reach these panic buttons. See EXHIBIT H and EXHIBIT M. 3. PSMC 5.55.205(A(2)) (c) “Store all Cannabis goods in a secured and locked safe room, safe or vault, and in a manner as to prevent diversion, theft, and loss, except for limited amounts of Cannabis goods used for display purposes, samples, or immediate sale.” Response: NOT IN VIOLATION i. There is a locked storage area in the back of the store, and only authorized personnel have a key. See EXHIBIT B and EXHIBIT M. ii. Limited amounts of cannabis goods are on display in the locking display cases. Only authorized personnel have keys for these cases. Immediate sales are made from these cases. See EXHIBIT M. iii. In addition to locks, the arrangement of these display cases presents a continuous barricade preventing customer access to the locked door leading to the secured storage area. See EXHIBIT M. 4. CCR 15000.7 (a) “a- All inventory stored on the licensed premises shall be secured in a limited-access area.” Response: NOT IN VIOLATION i. All Cannabis inventory is, and always has been, either stored in the limited access back-room storage area or stored in the locking display cases in the retail area which is also a limited access area. See EXHIBIT M. ii. On November 7th, 2022, CCR 15000.7 (a) and (b) were updated and the “limited access area” storage requirement was completely removed. It now reads, “(a) All cannabis and cannabis products must be stored within the licensed premises. (b) A licensee shall not store cannabis goods outdoors.” All our cannabis and cannabis products are and have always been stored within the licensed premises indoors. These changes to the code clarify that if we took away the door separating the storage area from the retail area, and if we took away the security cage, we 7 would still be in full compliance with CCR 15000.7. Therefore, there is absolutely no question that we are, and have always been, in full compliance. See EXHIBIT L. 5. CCR 15000.7 (b) “Employee break rooms, changing facilities, and bathrooms shall be separated from all storage areas.” Response: NOT IN VIOLATION i. There is no employee break room, because our total occupancy load is 23 persons, and we are not required to have one. Building code requires a break room for larger occupancies or other types of business. Furthermore, according to the CA Department of Industrial Relations, rest periods can be “limited to the employees work area.” Our acceptable rest areas are the lounge, the retail area, and outside the shop. Employees are not required to eat or break on premises. If employees do choose to rest, eat, or break inside, they may do so in the lounge or in the retail area. The lounge, shown in the floorplan, is a separate area from the storage area. See EXHIBIT H – the Floor Plan. See EXHIBIT I – CA Department of Industrial Relations standards. ii. There are no changing facilities. iii. The staff bathroom is separated from all storage areas by solid walls that extend from the floor to the ceiling as required by CCR §15000.7 Storage of Inventory. See EXHIBIT K and EXHIBIT L iv. It is important to note that CCR §15000.7 was updated on November 7th, 2022, to clarify the meaning of “separation” from storage areas, and clarify the possibility that a shop may not have a break area. “Separation” means that solid walls need to extend all the way to ceiling, which in our case, they do and always have. See EXHIBIT L which says “(c) Bathrooms and changing facilities shall be separated from all storage areas by solid walls that extend from the floor to the ceiling. Employee break areas, if any, shall be separate and distinct from areas where cannabis and cannabis products are stored.” v. There is a separate bathroom for customers which is outside the dispensary and serves the site. See EXHIBIT H – the Floor Plan and the Site Plan 6. PSMC 5.55.110 “It is the responsibility of each Adult-Use Cannabis Business to ensure that it is, at all times, operating in a manner compliant with all applicable state and local laws, and any regulations promulgated thereunder.” Response: NOT IN VIOLATION Reefer Madness has always been, and continues to be, compliant with all state and local regulations. See EXHIBIT J and EXHIBIT L. 8 7. The notice says “This condition must be corrected immediately in the following manner:” “Please move all cannabis products at the business, that are not used for display purposes, samples, immediate sale, to a limited access area separate from any employee break rooms, changing facilities, and bathrooms. Dispensaries must implement and maintain sufficient security measures to prevent diversion, theft, and loss of cannabis products including but not limited to, storing all cannabis products, except for limited amounts of cannabis products used for display purposes, samples, or immediate sale, in a secure and locked safe room, safe, or vault” Response: NOT IN VIOLATION All cannabis products already were in a secured and locked safe room area separate from the bathroom. There is no break room or changing facilities. Employees do not change clothes at work. Building code does not required our small shop to have a designated break room. The CA Department of Industrial Relations, says rest periods also can be “limited to the employees work area.” Our rest areas are the lounge, the retail area, and outside the shop. Employees are not required to eat or break on premises. If employees do choose to rest, eat, or break inside, they may do so in the lounge or in the retail area. The lounge is shown in the floorplan and is a separate area from the storage area. See EXHIBIT H – the Floor Plan. See EXHIBIT I – CA Department of Industrial Relations standards. Sufficient security measures were already in place to prevent diversion, theft, and loss of cannabis products. Security measures include the arrangement of our display cases, which prevent customers from reaching the back room, a door and lock on the back room, security cameras covering every inch of the facility, panic buttons to alert police of a hold-up, and onsite security during business hours. See EXHIBI B and EXHIBIT M We require at least 2 staff behind the counter at all times, plus a security guard on the premises. We also have a supervisor and a buyer stationed in the back room. From the back room, the supervisor and buyer order product, restock product, and put products in the Point-of-Sale System. If someone were to attempt to climb over the counter, they would be deterred by the security guard as well as the staff behind the counter. If a person managed somehow to climb over the counter, and if they then somehow got through the locked door into the back room, they would be intercepted by the buyer and supervisor working in the back room, who have immediate access to panic buttons to alert police of a hold-up. It is important to note that this storage area was initially approved only with a fireproof curtain screening public view, since the retail counter arrangement, on its own, limited access to the back area. We have cameras covering every inch of the shop as well as the exterior and parking areas. Staff and security continuously monitor activities from the 65-inch security monitor. There are panic buttons accessible to the staff from behind the counter, as well as panic buttons accessible to the supervisor and buyer in the back room, and if a panic button is pressed, it will immediately alert police of a hold-up situation. Please see EXHIBIT M – photos of security monitor and arrangement. 9 Timeline of Events Related to the Security of the Back Room • From January 2, 2020, to February 11, 2020, there were multiple inspections and sign- off by the Building Department, the Planning Department, the Fire Department, and the Police Department. These departments inspected the interior floor plan, known as a Tenant Improvement, to ensure it matched the approved plans. We were determined to be in full compliance and each department signed off the job-card which was required to obtain a Certificate of Occupancy. See EXHIBIT N • On February 12, 2020, we were in full compliance and the Certificate of Occupancy was issued to Reefer Madness at 4693 Ramon Rd. See EXHIBIT O • The areas behind the counter, extending into the back room, were approved as the limited access area. The only thing separating the back room from the area behind the counter sales area, at that time, was a fireproof curtain. See EXHIBIT H – floor plan • 13 days before opening the shop for the first time, on March 5th, 2020, I contacted Veronica Goedhart by phone at the Department of Special Programs requesting a special pre-opening compliance inspection. I wanted to be sure the entire shop was up to the expectations of the City of Palm Springs, and I wanted to be certain that my operation was in full compliance. • Ms. Goedhart said that the Department of Special Program Compliance normally does not perform Code inspections prior to a shop opening. However, we were able to arrange for a “proactive” inspection anyways. • On the evening of Thursday March 12, 2020, three Code Enforcement Officers met me at the site. The Officers inspected the sales area, the back room, and the lounge area. They found we were in full compliance. They then advised we were approved to commence business operations. One of the Officers present was Mitchell Nabhan. • The fact I took the initiative to request this unprecedented inspection, in which I passed with flying colors, shows my clear intent to operate professionally, and to the fullest extent of the law. The shop was ready to open at the time of inspection, complete with Cannabis products in the locked display cases. No changes were required, and none were made, and on March 18th, 2020, I opened the shop for the first time. See email from Veronica Goedhart confirming my opening, EXHIBIT P • During the summer of 2021, over a year after opening, I elected independently to replace the fire-proof curtain separating the back room from the sales area with a solid door to improve the aesthetic of the shop. This was never asked of me, nor required of me, by any person or department. See EXHIBIT M • On February 2nd, 2022, Officer Nabhan came in for one of many random, inspections. He expressed concern that “someone could jump over the sales counter, enter the back room, and steel product.” He requested that a lock be placed on the door to the storage area. That was done immediately, the same day. Code enforcement was 10 advised, and they thanked me for responding so quickly in an email the next day. This was almost 2 years after we opened. See EXHIBIT B o I cannot fathom how someone would jump the counter and enter the back room since we have a security guard on-site and staff behind the counters at all times as well as security cameras covering every inch of the shop and we all monitor activities in the shop from a 65-inch monitor. We also have panic buttons to alert police of a hold-up. Someone jumping the counter was never a concern to Code Enforcement in 2020, when Officer Nabhan and 2 other officers performed the proactive inspection. This also was never a requirement of the approved Tenant Improvement plans. Nonetheless, to satisfy officer Nabhan after completion of the inspection, I went to Home Depot and purchased a commercial lock for the back-room door. I installed the lock that same night, and I emailed Officer Nabhan photos of the installed lock. Please see EXHIBIT B • Officer Nabhan replied to me the following day by email on Feb 3rd, 2022, saying “I saw that you installed a lock on the door into the back office/storage area, thank you for getting that done so quickly as that was an important fix.” See the 3rd page of EXHIBIT B, Officer Nabhan’s reply, as it relates to the lock. • Officer Nabhan then went on to “suggest” that a cage also be installed in the already secure and approved back room to further separate the room. From his email dated 2/3/22, he says: “You had mentioned the idea of installing a cage/barrier into the inventory storage space, that may be the way to go too in addition to the new lock you just installed to ensure that you’re satisfying the requirement.” The whole purpose of the pre-opening, proactive inspection, was to ensure I was in full compliance, and to avoid having to correct issues later. Although I am always open to suggestions that concern maximizing security, I see no reason for this to be required of me, as I was already in full compliance since the proactive inspection. It should be noted the cage splitting the back room was never suggested in the proactive inspection, or in 2 full years of operation and 20+ random, inspections. Nonetheless, I immediately began research to install the suggested cage. See the 3rd page of EXHIBIT B, Officer Nabhan’s reply, as it relates to the lock. • I researched ways to accomplish this retrofit to an already approved operation. On March 2nd, 2022, I spoke with a representative at Grainger, Inc. (a reputable supply company) who emailed me a PDF of a kit that would work in my application. See EXHIBIT Q • After reviewing the drawings of the kit, on March 8th, 2022, I placed an order with the recommended items. I paid $1,971.96 for the items, and the same day I received a confirmation email that one item in the kit had already shipped. EXHIBIT R • On March 15th, 2022, Officer Nabhan stopped by for another random inspection. Officer Nabhan did not inspect the back room, but he asked about it and if I procured a cage for it. I showed Officer Nabhan the shipping emails and explained the cage was on the way. 11 Officer Nabhan did not ask when it was expected to arrive, and he did not provide a deadline for its installation. • Also on March 15th, 2022, officer Nabhan sent me an email, advising me to follow his “items of importance” during our upcoming 2-year anniversary where we had planned a ribbon cutting ceremony through the Palm Springs Chamber of Commerce. Officer Nabhan also called me on the phone and quizzed me about the occupancy rating of my lounge. I was already familiar with all the laws and rules concerning gatherings such as our anniversary, so it seemed as though they were laying the framework for a warning, so that if they found something wrong during the anniversary, they probably would have been cited us for it. It seemed like they were digging to find something wrong, which I do not understand because we have been in full compliance. See email in EXHIBIT S • On March 18th, 2022, around 8:15 PM, while in the middle of our Reefer Madness 2-year anniversary celebration, two Code Enforcement Officers came into the shop for a random, inspection. Officer Wade asked some questions about our anniversary celebration, looked around, and eventually stated he had no issues or concerns, and left with the other Officer. There were no questions about the cage progress and there were no concerns with the back room. • On March 21st, 2022, Grainger advised via email that part of our order was on backorder with the manufacturer. Various items on the order began arriving at the store. See EXHIBIT T • Also on March 21st, 2022, I followed up with Officer Nabhan regarding the Code Officers that came in on March 18th, 2022. Officer Nabhan replied, however there was no discussion or concerns about the cage or back room. He did not indicate what they had been looking for, and if they had completed their investigation of the anniversary celebration. All that he indicated was that there were no complaints “as of now.” EXHIBIT U • On March 22nd, 2022, I received an email that the delivery date of various items for the cage were changing, and certain items would not arrive until April due to them shipping directly from suppliers. EXHIBIT V • On March 28th, 2022, I received an email confirming shipping of various items in the kit. EXHIBIT V • On April 18th, Officer Nabhan stopped in for a random inspection, wanting to talk with our vendor Solstice, who was there for a PAD. Officer Nabhan was at the shop for over 30 minutes. Officer Nabhan was not concerned with the status of the cage, and he did not express any concerns with the back room. • In May, various parts for the cage arrived at the shop, and I started laying out the parts as they arrived. It became apparent that various pieces were still missing or defective, such as special 90-degree fasteners. It also became apparent that they sent me the incorrect lock mechanism. They sent two right-hand locks, but a left-hand lock is what I needed. EXHIBIT C 12 • On July 20th, 2022, Office Nabhan showed up for another random, inspection. I was not yet on site. Office Nabhan began discussions with retail staff (not a supervisor, as claimed in the inspection report on ATTACHMENT 6 of the staff report EXHIBIT Z) that there should have been a security cage in the storage area already. Because there was not, he informed all my staff members of a possible $5,000 fine. o This type of conversation should have only taken place with an owner or store manager, and not shared in a manner of intimidation to the staff members. It should be noted, that as a result of this interaction with code enforcement, two of my staff called out sick the next day. Officer Nabhan should have discussed this with the owner or a store manager, instead of using the information to intimidate staff. o Additionally, Officer Nabhan claimed that the back room was a break room, but it was never a break room. Because we are a small 23-person occupancy, building code does not require a break room. Our rest areas are the lounge, the retail area, and outside the shop. Employees are not required to eat or break on premises. If employees do choose to rest, eat, or break inside, they may do so in the lounge or in the retail area. See EXHIBIT I o About 30 minutes into what turned into a 1 hour and 30 min inspection, I arrived at the premises. Officer Nabhan then “suggested” that he believed the existing Point of Sale system being used to track cannabis product was inadequate. To satisfy his request, I agreed to change to a different POS system “recommended” by Code Enforcement at a cost of over $10,000.00. See Exhibit W o During this same inspection Officer Nabhan requested detailed employee records including hire dates, live scan dates and results, home addresses, and even staff phone numbers. I requested to know why he needed my staff’s phone numbers and if he intended on calling them, and after some discussion, Officer Nabhan changed his mind and said that phone numbers were not required. The requested staff information was emailed to Officer Nabhan the same day. See EXHIBIT A. Although we were more than happy to accommodate this request, the requested information was not normal for a business that has been up and running for 2.5 years in full compliance. Staff and I are, and have always been, in full compliance with live scan procedures. o It is important to note, during the July 20th, 2022, inspection, I offered to show Officer Nabhan the partially assembled cage and the missing and defective parts. He ignored the offer to inspect. o I updated officer Mitchell Nabhan of the cage progress through email that night. See EXHIBIT C for email to Officer Nabhan to update him on the situation (including pictures of parts). The right-hand lock could be installed upside down, which would make it difficult to use. It also became apparent prior to assembly that the steel posts were defective, with holes drilled in the wrong places, which would make assembly extremely difficult. Ultimately, I installed the lock upside down, to complete the installation. It is important to note that because I used the defective parts available, and rushed the install at officer Nabhan’s request, 13 this caused more work for me later, since the lock broke a key in half inside the lock on 11/18/22, requiring repair to regain access. • The following afternoon on 7/21/22, Officer Nabhan showed up at the shop again explaining that we are being fined $5,000, and he handed me an envelope containing the Notice of Violation. I asked him some questions concerning the reasoning behind the Notice and fine. He confirmed that he received the email update concerning my progress the night before, but he declined my offer to show him that is was nearly complete. I finished installing the cage that day, and that night, I took photos which I sent to Officer Nabhan and Ms. Goedhart. To make the cage installation work, I had used wood 2x4 on the ends to replace the defective metal posts and missing hardware, and I had to modify and install the door latch mechanism upside down. See EXHIBIT C and EXHIBIT D. • On the following morning of July 22, 2022, at 6:34 AM, officer Nabhan responded to my email asking if I could provide access at 7:50 AM to “re-inspect the area,” again. See EXHIBIT D. Although this seemed un-necessary, I agreed to meet him there at 7:50 AM. I had already offered to show him the cage the day before and he declined, and I had already sent him a photo of the fully installed cage the night prior. o Officer Nabhan arrived at 7:50am, with another officer present. Officer Nabhan looked over the cage, pushed on it with his shoulders like he wanted to knock it down, then he started taking more photos in the back area. He then informed me that he’s going to need to check with the fire department to see if the cage violates any of their requirements. It’s important to note that he never followed up with me to let me know if there were any concerns from the Fire Department. o He then asked me “what changes have you made to the back room since it was approved at opening?” I reminded him that we had replaced the curtain into the back room with a door for aesthetics, during the summer of 2021, and that we had put a lock in the door the day he requested it, February 2nd, 2022, and that now we installed the cage to meet his ongoing new requests. He asked me if we had opened in 2016, presumably because there were building code and law changes between 2016 and 2020 that don’t apply. I reminded him again we did not open until March 18, 2020. He seemed confused that they had approved a fireproof curtain, even though he had inspected the area with the curtain on March 12, 2020, prior to opening. See EXHIBIT P, email from Veronica confirming our opening day was March 18, 2020. o Officer Nabhan began looking around for other issues. At one point, Officer Nabhan shouted falsely, like a coach, that we had a customer in the store without a security guard on duty. My budtender and the customer were both startled by the accusation, because 1) he should not be acting in an intimidating manner, and 2) the security guard was in fact there. I pointed to the security camera monitor and confirmed our security guard was just outside 14 the main entrance door adjusting our a-frame sign. The security guard is not required to be always inside, he’s allowed and encouraged to also address security issues outside the entrance door and in the parking lot. o When officer Nabhan was finally finished with this inspection, he said we were “good to resume operations.” His statement is confusing - because I was never asked to cease operations. • I have received (3) letters now from City of Palm Springs Citation Processing Center demanding payment for the citation, and the most recent one from 10/25/22, saying that if I don’t pay by 11/24/22 they will turn me over to Franchise Tax board for further collection. My appeal hearing isn’t until 11/30/22. The Notice of Violation specifies that if I chose to appeal the fine, “payment of the administrative fine is suspended pending a final decision by the Administrative Appeals Board.” I should not be receiving these letters since I filed for appeal and my appeal has not yet been heard. I have called the City of Palm Springs Citation Processing Center a total of 13 times, and spent over 2 hours on hold, and I have not been able to reach someone that can assist me in resolving this issue. See EXHIBIT Y along with the last page of the staff report. Additional Hardships: • In February 2022, I became sick with COVID-19. • On or around May 1st, I became sick with COVID related bronchitis, and I was in bed for over a week but recovered over time. • On or around May 27th, my team and I suffered the loss of our Lead Budtender and friend, Josh DeGroat, who died of a heart attack. • My sister Jessica Adkins (previously employed by Reefer Madness until she became sick) was diagnosed with Leukemia in September 2022. 15 Tax audit from the City of Palm Springs on Reefer Madness: • On March 18th, 2022, during the morning just before Mayor Middleton arrived for our official 2-year anniversary ribbon cutting, the postal service brought us a certified letter from the City of Palm Springs informing me that Reefer Madness is “on notice, for a tax audit,” and the letter requested an extensive list of tax and sales records from us due by April 21st, 2022. This was very frustrating, and I was flustered during the ribbon cutting ceremony. I kept thinking about how we were just put “on notice for a tax audit” even though we hadn’t done anything wrong. See EXHIBIT X • On or around May 29th, I engaged Barton CPA to assist with the ongoing tax audit imposed by the City of Palm Springs at our 2nd anniversary celebration. • Around June 10th and on June 19th, I submitted extensive additional items for the audit to the city’s finance department in accordance with the deadline they provided. • On June 21st, the auditor requested specific receipts, and on June 30th, I uploaded requested receipts in accordance with the deadline provided. • On July 5th, I received an email from finance confirming the receipts were received, and that they would let me know if anything further was needed. I had not received anything further at that that time stating whether the audit was finished or not. • On August 11, 2022, I received an email from Andrew Neri from Finance informing me that the tax audit was complete. The letter “commended” Reefer Madness for “our responsibilities in collecting and paying local taxes.” To this date, I've paid about $1.8M in sales and excise taxes, which go to the City and State. See EXHIBIT X 16 EXHIBIT A Email sent to officer Nabhan with Requested Employee Information *I sent the requested information immediately the same day officer Nabhan requested it. Steven Wijatyk <steven.j.wijatyk@gmail.com> Employee Roster for Reefer Madness Mitchell Nabhan <mitchell.nabhan@palmspringsca.gov>Wed, Jul 20, 2022 at 3:37 PM To: Steven Wijatyk <steven.j.wijatyk@gmail.com> Hi Steven, Thanks! No ques ons at this me. I'll review this against the city's employee livescan database and will reach out if there are any concerns or related follow-up. Mitch Nabhan | Code Compliance Supervisor Department of Special Program Compliance a: 425 N Civic Dr, Palm Springs, CA 92262 e: mitchell.nabhan@palmspringsca.gov w: www.palmspringsca.gov p: 760-323-8116 x8745 From: Steven Wijatyk <steven.j.wijatyk@gmail.com> Sent: Wednesday, July 20, 2022 3:02 PM To: Mitchell Nabhan <mitchell.nabhan@palmspringsca.gov> Subject: Employee Roster for Reefer Madness NOTICE: This message originated outside of The City of Palm Springs -- DO NOT CLICK on links or open a achments unless you are sure the content is safe. Hi Mitch, As requested today, here is the roster of current employees. Please let me know if you have any questions or concerns. I also have each email from the city approving each employee - please let me know if you need any of those. Best Regards, Steven Wijatyk 17 EXHIBIT B Email Showing Commercial Lock Installed on 2/2/22 and Confirmation by Officer Nabhan *I installed the lock immediately the same day officer Nabhan requested it. Steven Wijatyk <steven.j.wijatyk@gmail.com> Lock installed on back room doors 1 message Steven Wijatyk <steven.j.wijatyk@gmail.com>Thu, Feb 3, 2022 at 12:35 AM To: Mitchell Nabhan <mitchell.nabhan@palmspringsca.gov> Hi Mitch, I installed a lock today on the doors between the sale area and the back room. It requires a key from the sale area side, but no key required to escape from the back room. We'll keep it closed and locked so it will be unlikely for an intruder to access the back room, if they hop the counter. I believe this now meets the "limited access" requirement. Please let me know if you think this meets the requirement. The pictures are attached. Best Regards, Steven Wijatyk Reefer Madness 3 attachments 20220202_232715.jpg 2405K 20220202_232745.jpg 2417K 20220202_235215.jpg 2363K Steven Wijatyk <steven.j.wijatyk@gmail.com> Reefer Madness Inspection - Follow Up Questions Mitchell Nabhan <mitchell.nabhan@palmspringsca.gov>Thu, Feb 3, 2022 at 8:57 AM To: "steven.j.wijatyk@gmail.com" <steven.j.wijatyk@gmail.com> Hi Steven, I went thru the state's regula ons to find answers to some of the follow up ques ons that you had. Included at the bo om of the email is the link to the DCC's text of regula ons, you can use it to navigate to the par cular sec ons that I'll be referencing. -Selling Food/Snacks, you had asked if it was possible to sell chips or candy as an op on within the dispensary. You can reference Chapter 3, CCR 15407 which discusses the sale of Non-Cannabis Goods. It state's that "In addi on to cannabis goods, a licensed retailer may sell only cannabis accessories and the branded merchandise of any licensee. Licensed retailers may provide customers with promo onal materials." So I interpret that as a clear no on food/chips/snacks/candy. This also e's in to your ques on related to the sale of Hemp. If the product is a cannabis accessory that includes hemp as an ingredient, my interpreta on is that it would be permi ed. "Cannabis Accessories" are defined within the State's Health & Safety Code, sec on 11018.2. -Returns/Exchanges, Chapter 3, CCR 15410 discusses the regula ons for Customer Return of Cannabis Goods. There's five parts to the sec on, but the most relevant to your ques on are: (b) A licensed retailer may accept customer returns of cannabis goods that were previously sold to a customer. (c) A licensed retailer shall not resell cannabis goods that have been returned. (e) Defec ve manufactured cannabis products returned by customers to a licensed retailer may be destroyed or returned to the licensed distributor from whom the cannabis goods were obtained. So according to the regulations as I interpret them, if you have a customer that wishes to exchange a cannabis product due to it being defective. You would have to process it as a return, with money's paid being refunded, and then complete a new sale. -Cannabis Events, Chapter 5, CCR 15601 discusses the requirements for temporary cannabis events, and the section following discusses temporary cannabis event sales. It's a bit of a read, but if that's something that your business is interested in I suggest you familiarize yourself with it. Additionally, The city also has requirements that would need to be fulfilled in addition to the State's requirements, those are outlined in the Palm Springs Cannabis Ordinance, PSMC 5.55.100. I think those were the main follow ups you had asked about, but if there was anything I missed shoot me a message. **Additionally ** I saw that you installed a lock on the door into the back office/storage area, thank you for getting that done so quickly as that was an important fix. After going thru the State's regulations, Chapter 1, CCR 15000.7 discusses the requirements for Inventory Storage. Below are some points of importance to consider (a) All inventory stored on the licensed premises shall be secured in a limited-access area. (c) Employee break rooms, changing facilities, and bathrooms shall be separated from all storage areas. As you currently have it, the back office area seemed to be an all in one that included the employee storage/lockers, and bathroom. You had mentioned the idea of installing a cage/barrier into the inventory storage space, that may be the way to go to in addition to the new lock you just installed to ensure that you you're satisfying the requirement and creating that clear separation of the areas. https://cannabis.ca.gov/wp-content/uploads/sites/2/2021/10/DCC-Cannabis-Regulations- Sept.-2021.pdf Department of Cannabis Control, Text of Regulations Department of Cannabis Control Medicinal and Adult Use Commercial Cannabis Regulations Page 1 of 216 . Department of Cannabis Control . Medicinal and Adult -Use Commercial Cannabis Regulations cannabis.ca.gov Mitch Nabhan | Code Compliance Officer Palm Springs Police Department a: 200 S Civic Dr, Palm Springs, CA 92262 e: mitchell.nabhan@palmspringsca.gov w: www.palmspringsca.gov p: 760-323-8116 x8745 18 EXHIBIT C Email on 7/20/22 to officer Nabhan Detailing the Exact Status of the Security Cage Upgrade along with Photos, Including Description of Defective Parts Steven Wijatyk <steven.j.wijatyk@gmail.com> back room / POS follow-up Steven Wijatyk <steven.j.wijatyk@gmail.com>Thu, Jul 21, 2022 at 2:05 AM To: Mitchell Nabhan <mitchell.nabhan@palmspringsca.gov> Hi Mitch, Thanks for responding, I just reviewed all the information you provided. Update: I moved the safe and scraped the floor where the cage will mount directly to the concrete for maximum strength and security (see attached picture 1). The safe will go on the inside of the cage making it an extremely secure limited access area. Please have a look at the other photos 2 - 8, where I have laid out the physical parts I have and how they go together. The problem is that Grainger only sent me (4) of the 90-degree fasteners (see photos 2, 4, and 5), and I'm still waiting to receive more. I need at least (8) of these 90-degree fasteners in order to properly connect the top half and bottom half panels of the cage to a steel post on each end. The steel posts are supposed to mount to the floor and to the wall. Without those fasteners, I will most likely have to use a wood post between the cage top/bottom panels and the walls at the end - using a wood post is not ideal, but this is what I will attempt to do. A wood post won't be as strong as the steel posts that I had planned for, but it will meet your requirements. The reason I am installing this myself is that I don't want contractors/workers/strangers behind the sales counter or in the back room (limiting access). Also, the only way to do it right, is usually to "do-it-yourself." As you are probably already aware, I'm not like Harvest or other multi-store corporate operators, and I don't have the support of a large company or investors. I have to do a lot myself. I hope this explanation helps. I have also provided each of my staff their own key to the lock on the barn doors, and I've re-trained my staff to keep that key attached to their badge at all times, and keep the barn doors closed and locked when they pass through. Respectfully, Steven Wijatyk On Wed, Jul 20, 2022 at 4:36 PM Mitchell Nabhan <mitchell.nabhan@palmspringsca.gov> wrote: Hi Steven, Thank you for the update. I'll have some more follow up items coming tomorrow, but related to the ques ons about establishing limited access areas there are a few parts referenced in the city's cannabis ordinance, as well as the part that I've men oned in previously emails related to the state regula ons. they are as follows: PSMC 5.55.210 Security Measures A - A permi ed adult-use cannabis business shall implement sufficient security measures to deter and prevent the unauthorized entrance into areas containing Cannabis goods, and to deter and prevent the the of cannabis goods at the adult-use cannabis business. Except as may otherwise be determined by the City Manager or their designee(s), these security measures shall include, but shall not be limited to, all of the following: 2 - Establishing limited access areas accessible only to authorized adult-use cannabis business personnel. PSMC 5.55.205 Miscellaneous Opera ng Requirements A - Addi onal Requirements for Dispensaries. 2 - Dispensaries shall implement and maintain sufficient security measures to both deter and prevent unauthorized entrance into areas containing Cannabis goods in compliance with Section 26070(j) of the California Business and Professions Code and any rules promulgated by the State licensing authority. Security measures shall include, but are not limited to, the following: b - Establish limited access areas accessible only to authorized dispensary personnel c - Store all Cannabis goods in a secured and locked safe room, safe, or vault, and in a manner as to prevent diversion, theft, and loss, except for limited amounts of Cannabis goods used for display purposes, samples, or immediate sale CCR 15000.7 Storage of Inventory a - All inventory stored on the licensed premises shall be secured in a limited-access area. c - Employee break rooms, changing facilities, and bathrooms shall be separated from all storage areas. *The state regulations have mentions of limited-access areas throughout their text in different articles related to locks, security measures, surveillance, premise diagram, and premise modification. Please ensure that you are reviewing those to ensure compliance with all. Link to the State regulations: https://cannabis.ca.gov/wp-content/uploads/sites/2/2022/07/DCC-Cannabis-Regulations-as-of- 6.6.2022.pdf Link to the City of Palm Springs Cannabis Ordinance: https://library.qcode.us/lib/palm_springs_ca/pub/municipal_code/item/title_5-chapter_5_55 Mitch Nabhan | Code Compliance Supervisor Department of Special Program Compliance a: 425 N Civic Dr, Palm Springs, CA 92262 e: mitchell.nabhan@palmspringsca.gov w: www.palmspringsca.gov p: 760-323-8116 x8745 From: Steven Wijatyk <steven.j.wijatyk@gmail.com> Sent: Wednesday, July 20, 2022 3:51 PM To: Mitchell Nabhan <mitchell.nabhan@palmspringsca.gov> Subject: back room / POS follow-up NOTICE: This message originated outside of The City of Palm Springs -- DO NOT CLICK on links or open a achments unless you are sure the content is safe. Hi Mitch, To address your concerns with the possible limitations of our existing POS, I just signed a contract today with Blaze to begin implementation of their systems (see attached screenshot from my email). I've been looking over different POS platforms since last year, and since doing multiple product demos with Blaze and Trees in April of this year to evaluate compatibility with our daily operations, I had narrowed it down to those two platforms. There are many factors to consider when selecting a fully cannabis compatible platform, and this is a difficult (and costly) process. Most of these platforms require equipment that you can only purchase from their certified partners, making it costly and a lot of work. I had begun implementation with Flowhub early last year (and even paid them the $800 non-refundable implementation fee) only to discover later that there would likely be problems with their system that forced me to continue searching for a different platform. For example, I learned from other Flowhub users as well as from an email that went out from their Tech Support team, that on 4/20/21 (the cannabis holiday), Flowhubs servers crashed resulting in shops having to perform transactions by hand with pen and paper, without their POS. I am glad I discovered these issues in time, and I did not follow through with the implementation of Flowhub or the purchasing of any of their special equipment. I think I still have the emails from Flowhub detailing their server crash, as well as the receipt for the $800 that I unfortunately wasted to begin implementation with them. Regarding the cage for the backroom, although I am still waiting on the correct fasteners for proper installation, I will begin installing it today as best and as professionally as I can with fasteners from Home Depot, and although probably not as good and not as strong as the OEM fasteners that I'm still waiting on, this should meet your requirements. Please let me know if there are any other concerns with this. Best Regards, Steven Wijatyk. 8 attachments 4.jpg 1926K 1.jpg 2516K 5.jpg 2089K 2.jpg 2078K 3.jpg 2318K 6.jpg 1512K 7.jpg 1585K 8.jpg 2708K 19 EXHIBIT D Email Sent to officer Nabhan and Veronica Goedhart showing that Cage Install was Complete. Email Reply at 6:34 AM from officer Nabhan requesting Re- inspection at 7:50 AM, before opening. Steven Wijatyk <steven.j.wijatyk@gmail.com> Cage is installed 3 messages Steven Wijatyk <steven.j.wijatyk@gmail.com>Fri, Jul 22, 2022 at 12:01 AM To: Mitchell Nabhan <mitchell.nabhan@palmspringsca.gov>, Veronica Goedhart <Veronica.Goedhart@palmspringsca.gov> Cage is installed please see picture 20220721_235929.jpg 2787K Mitchell Nabhan <mitchell.nabhan@palmspringsca.gov>Fri, Jul 22, 2022 at 6:34 AM To: Steven Wijatyk <steven.j.wijatyk@gmail.com> Hi Steven, Thank you for the update. If it works for you, I can meet you or a member of your staff that has access to the business at 7:50a this morning to re-inspect the area. Assuming everything checks out ok, you should be able to resume opera ons this morning without any no ceable disrup on to your customers and staff. Mitch Nabhan | Code Compliance Supervisor Department of Special Program Compliance a: 425 N Civic Dr, Palm Springs, CA 92262 e: mitchell.nabhan@palmspringsca.gov w: www.palmspringsca.gov p: 760-323-8116 x8745 From: Steven Wijatyk <steven.j.wijatyk@gmail.com> Sent: Friday, July 22, 2022 12:01 AM To: Mitchell Nabhan <mitchell.nabhan@palmspringsca.gov>; Veronica Goedhart <Veronica.Goedhart@palmspringsca.gov> Subject: Cage is installed NOTICE: This message originated outside of The City of Palm Springs -- DO NOT CLICK on links or open a achments unless you are sure the content is safe. [Quoted text hidden] Steven Wijatyk <steven.j.wijatyk@gmail.com>Fri, Jul 22, 2022 at 6:57 AM To: Mitchell Nabhan <mitchell.nabhan@palmspringsca.gov> Hi Mitch, Yes, I can meet you there at 7:50 this morning. -Steven [Quoted text hidden] 20 EXHIBIT E Email From Officer Nabhan “Suggesting” the Installation of a Security Cage with NO Definitive Requirement or Deadline Steven Wijatyk <steven.j.wijatyk@gmail.com> Reefer Madness Inspection - Follow Up Questions Mitchell Nabhan <mitchell.nabhan@palmspringsca.gov>Thu, Feb 3, 2022 at 8:57 AM To: "steven.j.wijatyk@gmail.com" <steven.j.wijatyk@gmail.com> Hi Steven, I went thru the state's regula ons to find answers to some of the follow up ques ons that you had. Included at the bo om of the email is the link to the DCC's text of regula ons, you can use it to navigate to the par cular sec ons that I'll be referencing. -Selling Food/Snacks, you had asked if it was possible to sell chips or candy as an op on within the dispensary. You can reference Chapter 3, CCR 15407 which discusses the sale of Non-Cannabis Goods. It state's that "In addi on to cannabis goods, a licensed retailer may sell only cannabis accessories and the branded merchandise of any licensee. Licensed retailers may provide customers with promo onal materials." So I interpret that as a clear no on food/chips/snacks/candy. This also e's in to your ques on related to the sale of Hemp. If the product is a cannabis accessory that includes hemp as an ingredient, my interpreta on is that it would be permi ed. "Cannabis Accessories" are defined within the State's Health & Safety Code, sec on 11018.2. -Returns/Exchanges, Chapter 3, CCR 15410 discusses the regula ons for Customer Return of Cannabis Goods. There's five parts to the sec on, but the most relevant to your ques on are: (b) A licensed retailer may accept customer returns of cannabis goods that were previously sold to a customer. (c) A licensed retailer shall not resell cannabis goods that have been returned. (e) Defec ve manufactured cannabis products returned by customers to a licensed retailer may be destroyed or returned to the licensed distributor from whom the cannabis goods were obtained. So according to the regulations as I interpret them, if you have a customer that wishes to exchange a cannabis product due to it being defective. You would have to process it as a return, with money's paid being refunded, and then complete a new sale. -Cannabis Events, Chapter 5, CCR 15601 discusses the requirements for temporary cannabis events, and the section following discusses temporary cannabis event sales. It's a bit of a read, but if that's something that your business is interested in I suggest you familiarize yourself with it. Additionally, The city also has requirements that would need to be fulfilled in addition to the State's requirements, those are outlined in the Palm Springs Cannabis Ordinance, PSMC 5.55.100. I think those were the main follow ups you had asked about, but if there was anything I missed shoot me a message. **Additionally ** I saw that you installed a lock on the door into the back office/storage area, thank you for getting that done so quickly as that was an important fix. After going thru the State's regulations, Chapter 1, CCR 15000.7 discusses the requirements for Inventory Storage. Below are some points of importance to consider (a) All inventory stored on the licensed premises shall be secured in a limited-access area. (c) Employee break rooms, changing facilities, and bathrooms shall be separated from all storage areas. As you currently have it, the back office area seemed to be an all in one that included the employee storage/lockers, and bathroom. You had mentioned the idea of installing a cage/barrier into the inventory storage space, that may be the way to go to in addition to the new lock you just installed to ensure that you you're satisfying the requirement and creating that clear separation of the areas. https://cannabis.ca.gov/wp-content/uploads/sites/2/2021/10/DCC-Cannabis-Regulations- Sept.-2021.pdf Department of Cannabis Control, Text of Regulations Department of Cannabis Control Medicinal and Adult Use Commercial Cannabis Regulations Page 1 of 216 . Department of Cannabis Control . Medicinal and Adult -Use Commercial Cannabis Regulations cannabis.ca.gov Mitch Nabhan | Code Compliance Officer Palm Springs Police Department a: 200 S Civic Dr, Palm Springs, CA 92262 e: mitchell.nabhan@palmspringsca.gov w: www.palmspringsca.gov p: 760-323-8116 x8745 21 EXHIBIT F Certificates of Analysis for Products that Officer Nabhan may be Confusing with Alcoholic Products *These products DO NOT contain alcohol, only THC Regulatory Compliance Testing 1 of 4 CC Testing Labs 18417 Bryant St Northridge, CA 91325 (818) 797-1500 http://www.cctestinglabs.com Lic# C8-0000068-LIC ISO/IEC Standard 17025:2017 Testing Laboratory TL-819 Champagne METRC Sample: 1A406030000A28E000004374; METRC Batch: 1A4060300011686000000832 Sample ID: 2206CCT2950.7569 Strain: Champagne Matrix: Plant Type: Flower - Cured Sample Size: 36 g; Batch: 22.2579 lb Produced: 05/25/2022 Collected: 06/21/2022 Received: 06/21/2022 Completed: 06/24/2022 Batch#: 1004 Distributor Green Habitat LLC Lic. # C11-0000147-LIC 756 East Washington Blvd Los Angeles, CA 90021 Producer VSV MUTUAL GROUP, INC. Lic. # CCL19-0004085 7222 Hinds Ave, Los Angeles, CA 91605 Summary Test Date Tested Result Batch Pass Cannabinoids 06/22/2022 Complete Moisture 06/21/2022 11.6% - Complete Water Activity 06/21/2022 0.57 aw - Pass Terpenes 06/22/2022 Complete Microbials 06/22/2022 Pass Mycotoxins 06/24/2022 Pass Pesticides 06/24/2022 Pass Heavy Metals 06/22/2022 Pass Foreign Matter 06/21/2022 Pass Cannabinoids Complete 30.430% Total THC 0.125% Total CBD 31.693% Total Cannabinoids Analyte LOD LOQ Result Result mg/g mg/g % mg/g THCa 0.13330 0.26670 32.827 328.27 Δ9-THC 0.13330 0.26670 1.640 16.40 Δ8-THC 0.13330 0.26670 ND ND THCV 0.13330 0.26670 ND ND CBDa 0.13330 0.26670 0.070 0.70 CBD 0.13330 0.26670 0.064 0.64 CBDV 0.13330 0.26670 ND ND CBN 0.13330 0.26670 ND ND CBGa 0.13330 0.26670 1.183 11.83 CBG 0.13330 0.26670 0.101 1.01 CBC 0.13330 0.26670 ND ND Total THC 30.430 304.297 Total CBD 0.125 1.247 Total 31.693 316.933 Date Tested: 06/22/2022 Total THC = THCa * 0.877 + ∆9-THC; Total CBD = CBDa * 0.877 + CBD; Total cannabinoid concentration (mg/g) = (cannabinoid acid form concentration (mg/g) x 0.877) + cannabinoid concentration (mg/g); LOQ = Limit of Quantitation; The reported result is based on a sample weight with the applicable moisture content for that sample; All LQC samples were performed and met the prescribed acceptance criteria in 4 CCR section 15730. Instrument: HPLC UV-DAD; Method: CCTL-PM002. Samples were collected as per 4 CCR Section 15707 11.6% Moisture Content Moisture Analyzer 0.57 aw Water Activity Rotronic AwTherm Pass Foreign Matter Intertek Magni er Lamp Foreign Material Method: CCTL-PM-003. Moisture Content Method: CCTL-PM-027. Water Activity Method: CCTL-PM-028. This product has been tested by California Cannabis Testing Lab (CCTL) using valid testing methodologies and a quality system as required by state law. Values reported relate only to the product tested. CCTL makes no claims as to the ef cacy, safety or other risks associated with any detected or non-detected levels of any compounds reported herein. This Certi cate shall not be reproduced except in full, without the written approval of CCTL.Samples were collected as per 4 CCR Section 15707. Con dent Cannabis All Rights Reserved support@con dentcannabis.com (866) 506-5866 www.con dentcannabis.com Satish Annigeri Scienti c Director 06/24/2022 Regulatory Compliance Testing 1 of 4 California Ag Labs430 C StMarysville, CA 95901 (530) 599-9001/www.calaglabs.comLic# C8-0000001-LICPabst Strawberry KiwiMETRC Sample: 1A4060300014F8E000004669; METRC Batch: 1A4060300005BCF000001584Sample ID: 2109CRG1393.3307Strain: Strawberry KiwiMatrix: IngestibleType: BeverageSample Size: 32 units; Batch: 19,465 units Produced: 09/24/2021Collected: 09/27/2021Received: 09/27/2021Completed: 09/30/2021Batch#: D11SK-05 DistributorSpacestationLic. # C11-0001185-LIC1250 Harter AveWoodland, CA 95776 ProducerEpic Bro EnterprisesLic. # CDPH-100037101230 Harter Ave Suite J Woodland CA, 95776 SummaryTest Date Tested ResultBatchPassCannabinoids09/28/2021 PassResidual Solvents 09/27/2021 PassMicrobials09/28/2021 PassMycotoxins09/30/2021 PassPesticides09/30/2021 PassHeavy Metals 09/28/2021 PassForeign Matter 09/27/2021 Pass Cannabinoids Pass 10.578 mg/serving 10.578 mg/container Total THC ND ND Total CBD 10.578 mg/serving 10.578 mg/container Total Cannabinoids 10.578 mg/serving10.578 mg/containerTotal Potential Cannabinoids Analyte LOD LOQ Result Result Result Result Result Resultmg/g mg/g % mg/g mg/mL mg/unit mg/serving mg/containerTHCa0.001 0.001 ND ND ND ND ND ND Δ9-THC 0.001 0.001 0.003 0.029 0.030 10.578 10.578 10.578 Δ8-THC 0.001 0.001 ND ND ND ND ND NDCBDa0.001 0.001 ND ND ND ND ND NDCBD0.000 0.001 ND ND ND ND ND NDCBDV0.001 0.001 ND ND ND ND ND NDCBN0.000 0.001 ND ND ND ND ND NDCBGa0.001 0.001 ND ND ND ND ND NDCBG0.001 0.001 ND ND ND ND ND NDCBC0.001 0.001 ND ND ND ND ND NDTotal0.003 10.578 10.578 10.578 Notes: 1 Unit = Beverage, 358.6565g. 1 mL = 1.0103g. 1 unit(s) per serving. 1 serving(s) per container. Method: HPLC SOP-420 Total THC = THCa * 0.877 + ∆9-THC; Total CBD = CBDa * 0.877 + CBD LOQ = Limit of Quantitation; The reported result is based on a sample weight with the applicable moisture content for that sample; Unless otherwise stated all quality control samples performed within speci×cations established by the Laboratory. NTNot TestedMoisture Content NTNot TestedWater Activity Pass Foreign Matter Methods: Foreign Matter Analysis Microscopy SOP-421; Moisture Content MOC63u SOP-422; Water Activity Rotronics Water Activity Probe SOP-428. This product has been tested by California Ag Labs using valid testing methodologies and a quality system as required by state law. All LQC samples were performed and met the prescribed acceptance criteria in 16 CCR section 5730, pursuant to 16 CCR section 5726(e)(13). Values reported relate only to the product tested. California Ag Labs makes no claims as to the ef×cacy, safety or other risks associated with any detected or non-detected levels of any compounds reported herein. This Certi×cate shall not be reproduced except in full, without the written approval of California Ag Labs. Con×dent CannabisAll Rights Reservedsupport@con×dentcannabis.com(866) 506-5866www.con×dentcannabis.comSeth DixonLab Director09/30/2021 Sonoma Lab Works 1201 Corporate Center Parkway License: C8-0000015-LIC Santa Rosa, CA 95407 Phone: (707)757-7757 www.sonomalabworks.com Regulatory Compliance Testing CRFT Manufacturing 21R008066 Non-Inhalable Hi-Fi Hops Tuner 6 - 4 packs 9564 UnitsTotal Batch: Sample Name: Sample Type: Batch #: CDPH-10002270 2330 Circadian Way, Santa Rosa CA 10/7/2021Date Received: Distributor License #: david@sonomalabworks.comLaboratory Director David Chen 10/07/2021 V8.1.0 Distributor Address: Date Collected: Distributor: All results in this report apply to samples collected in accordance with CA Code of Regulations Title 16 Article 3. This report is generated by Sonoma Lab Works, LLC and contains confidential and/or legally privileged information from Sonoma Lab Works, LLC. If you are not the client listed in this report, or the client this report is issued to, you are hereby notified that any disclosure, copying, electronic dissemination, electronic archiving, or distribution of this information or the taking of any action in reliance on the contents of this report is strictly prohibited. Sonoma Lab Works, LLC cannot determine putative resulting hazards associated with materials submitted for analysis, and reserves the right to dispose. Sonoma Lab Works, LLC cannot assume responsibility for the effect or impact of field sampling methodologies and techniques as they can affect sample analyses. The client listed in this report is singularly responsible for all use, interpretation, and reliance of results contained within this report. Uncertainty measurements available upon request. Density (g/ml) Sample Information 1 Certificate of Analysis 2765 Giffen Ave, Santa Rosa CA Date C11-0000937-LIC 1420.00 Page 1 of 2 Average Weight/Package (ml) Kind House Inc 10/8/2021 Dates of Analysis: Client License #: Client: Client Address: Sample Code: Sample Matrix: METRC Tag: Primary Sample:20 Units 1A4060300001902000010503 Water Soluble 21C002628 10/7/2021 - 10/8/2021 Total d9 THC (mg) per package CBD (mg) per package Total CBD (mg) per package d9 THC (mg) per package 21.30 21.30 21.30 21.30 Test Summary Overall Batch Result Pass Total d9 THC (mg) per serving Total Calculated CBD (mg/ml) 0.02 Total CBD (mg) per serving 5.32 Total Cannabinoids (mg) per serving 10.65 Residual Solvents (Detect/No Detect)Detect Pass PassMicrobial Result (Pass/Fail)ND PassPesticide Screen (Detect/No Detect)ND Heavy Metals Screen (Detect/No Detect)PassND PassMycotoxin Screen (Detect/No Detect)ND Total Terpenes (%)N/ANT Percent Moisture (%)NTNT Water Activity (Aw)NTNT PassForeign Material (Present/Absent)ND 5.32 Pass 0.02 Total Calculated d9-THC (mg/ml) Sonoma Lab Works 1201 Corporate Center Parkway License: C8-0000015-LIC Santa Rosa, CA 95407 Phone: (707)757-7757 www.sonomalabworks.com Regulatory Compliance Testing RCUNITY Non-Inhalable Rebel Coast Unity 924 UnitsTotal Batch: Sample Name: Sample Type: Batch #: CDPH-10004294 14835 Bessemer St, Van Nuys CA 9/11/2020Date Received: Distributor License #: david@sonomalabworks.comLaboratory Director David Chen 09/10/2020 V8.1.0 Distributor Address: Date Collected: Revision: 12/10/18 DC Distributor: All results in this report apply to samples collected in accordance with CA Code of Regulations Title 16 Article 3. This report is generated by Sonoma Lab Works, LLC and contains confidential and/or legally privileged information from Sonoma Lab Works, LLC. If you are not the client listed in this report, or the client this report is issued to, you are hereby notified that any disclosure, copying, electronic dissemination, electronic archiving, or distribution of this information or the taking of any action in reliance on the contents of this report is strictly prohibited. Sonoma Lab Works, LLC cannot determine putative resulting hazards associated with materials submitted for analysis, and reserves the right to dispose. Sonoma Lab Works, LLC cannot assume responsibility for the effect or impact of field sampling methodologies and techniques as they can affect sample analyses. The client listed in this report is singularly responsible for all use, interpretation, and reliance of results contained within this report. Uncertainty measurements available upon request. Green Spectrum Trading, Inc Density (g/ml) Sample Information 1 Certificate of Analysis 14835 Bessemer St., Van Nuys CA Date C11-0000760-LIC 750.00 Page 1 of 2 Average Weight/Package (ml) Green Spectrum Trading, Inc 9/17/2020 Dates of Analysis: Client License #: Client: Client Address: Sample Code: Sample Matrix: METRC Tag: Primary Sample:8 Units 1A4060300007081000000624 Water Soluble 20C002782 9/16/2020 - 9/17/2020 Test Summary Overall Batch Result Pass Total d9 THC (mg) per serving Total Calculated CBD (mg/ml) 0.05 Total CBD (mg) per serving 0.00 Total Cannabinoids (mg) per serving 9.16 Residual Solvents (Detect/No Detect)Detect Pass PassMicrobial Result (Pass/Fail)ND PassPesticide Screen (Detect/No Detect)Detect Heavy Metals Screen (Detect/No Detect)PassND PassMycotoxin Screen (Detect/No Detect)ND Total Terpenes (%)N/ANT Percent Moisture (%)NTNT Water Activity (Aw)NTNT PassForeign Material (Present/Absent)ND 9.16 Pass 0.00 Total Calculated d9-THC (mg/ml) 22 EXHIBIT G Security Camera photos Disputing the Photo that Officer Nabhan took of the Momentarily Open Back Room Door. *The door was only momentarily open because officer Nabhan requested someone retrieve Gustavo from the back room. 23 Below are a series of photos taken from my security cameras, over a 36 second time interval, when officer Nabhan had just entered the shop. These photos dispute any allegation that we “leave the door open.” It is important to note that I copied Photo 3, directly from the staff report, which falsely implies we left the door open. The door was only momentarily open because several staff were in the process of moving in and out from the back room: Photo 1. 10:30:57 AM. The middle arrow points to Irene crossing the threshold of the door into the back room to get Gustavo - who was requested by officer Nabhan. The left arrow points to officer Nabhan’s face as he observes Irene cross the threshold. The bottom right arrow points to our shop security guard Rami who had walked to the counter. Irene and Rami both have their backs to Nabhan, as he prepares to take a photo. Photo 2. 10:31:00 AM. Exactly 3 seconds after Irene clears the threshold, and while Rami (bottom right arrow) still has his back to officer Nabhan, officer Nabhan (top left arrow) holds up his phone camera to take a photo. The door is expected to be open momentarily (middle arrow) because Irene had just immediately passed through the threshold. 24 Photo 3. Officer Nabhan’s photo from the Staff Report falsely showing the door “left open.” This photo must have been taken at exactly 10:31:00 AM, when my security cameras capture officer Nabhan hold up his phone camera in Photo 2. Irene is not visible from this angle since she is behind the threshold (big arrow), which is why the door is momentarily open. Rami, our security guard, is in the bottom right by the small red arrow, in a green shirt. It is important to note the layout of the store here, as well. No customer would be able to climb the counter and get to the back room especially with a security guard right there. Photo 4. 10:31:00 AM. Security Cam 1 observes officer Nabhan taking a photo using his phone’s camera. 25 Photo 5. 10:31:01 AM. Security Cam 9 observes my staff are facing away while Nabhan quickly takes a photo. (Rami is bottom left, green shirt, red arrow; budtender Yaya’s head is bottom left, red arrow, above Rami). They cannot see Nabhan take the photo (top right, red arrow). Photo 6. 10:31:04 AM. Irene returns (right arrow) exactly 4 seconds after Irene passed through the threshold to the back to alert Gustavo assistance is needed. Officer Nabhan has just finished taking his photo and leans his head down (left arrow). 26 Photo 7. 10:31:08 AM. Gustavo (red arrow) passing through the threshold to come meet officer Nabhan, as requested by officer Nabhan. Photo 8. 10:31:29 AM. exactly 21 seconds later, we see Puna (red arrow) exit the back room. She is the last person to pass the threshold. 27 Photo 9. 10:31:34. The door remains shut (red arrow). Only 36 seconds have passed, and a total of 3 staff went in and out several times, and closed the door. 28 EXHIBIT H APPROVED SITE PLAN AND FLOOR PLAN 29 EXHIBIT I Rest Areas and Meal Break Areas – From the California Department of Industrial Relations *The blue highlighted excerpts show a description of acceptable rest and meal break areas. Our rest areas are the lounge, the retail area, and outside the shop. Employees are not required to eat or break on premises. If employees do choose to rest, eat, or break inside, they may do so in the lounge or in the retail area. 30 31 EXHIBIT J Palm Springs Municipal Codes Referenced in the Notice of Violation 32 Palm Springs, California Municipal Code, Title 5 BUSINESS REGULATIONS, Chapter 5.55 ADULT-USE CANNABIS RELATED BUSINESSES AND ACTIVITIES 5.55.110 Compliance with Laws. It is the responsibility of each Adult-Use Cannabis Business to ensure that it is, at all times, operating in a manner compliant with all applicable state and local laws, and any regulations promulgated thereunder. Nothing in this Chapter shall be construed as authorizing any actions which violate state law or local law with respect to the operation of an Adult-Use Cannabis Business. It shall be the responsibility of the owners and the operators of the Adult- Use Cannabis Business to ensure that the Adult-Use Cannabis Business is, at all times, operating in a manner compliant with MAUCRSA, all applicable state and local laws, regulations and guidelines, any subsequently enacted State Law or regulatory, licensing, or certification requirements, and any specific, additional operating procedures or requirements which may be imposed as conditions of approval of the Adult-Use Cannabis Permit. Nothing in this Chapter shall be construed as authorizing any actions which violate State Law with regard to the operation of an Adult-Use Cannabis Business. (Ord. 2005 § 4, 2019; Ord. 1933 § 2, 2017) 5.55.205 Miscellaneous Operating Requirements. A. Additional Requirements for Dispensaries. 1. Dispensaries shall be located only in zoning districts that specifically provide for this use. 2. Dispensaries shall implement and maintain sufficient security measures to both deter and prevent unauthorized entrance into areas containing Cannabis good in compliance with Section 26070(j) of the California Business and Professions Code and any rules promulgated by the State licensing authority. Security measures shall include, but are not limited to, the following: a. Prevent individuals from loitering on the premises of the dispensary if they are not engaging in activity expressly related to the operations of the dispensary; b. Establish limited access areas accessible only to authorized dispensary personnel; c. Store all Cannabis goods in a secured and locked safe room, safe, or vault, and in a manner as to prevent diversion, theft, and loss, except for limited amounts of Cannabis goods used for display purposes, samples, or immediate sale; d. Install security cameras on site; and e. Provide for on-site security personnel meeting the requirements and standards contained within applicable State regulations and applicable City requirements. 33 EXHIBIT K BATHROOM PHOTOS SHOWING DOOR AND WALLS THAT GO TO THE CEILING. *There have been no changes to the bathroom since approved on March 12, 2020. The staff bathroom is and has always been separated from all storage areas by solid walls that extend from the floor to the ceiling as required by CCR §15000.7 Storage of Inventory, as shown in the photos on the following page. The door to the bathroom has always been marked “employees only” and staff is trained to only direct customers to the separate bathroom which is outside the dispensary and serves the site. 34 35 EXHIBIT L California Code of Regulations CCR §15000 *IMPORTANT UPDATE as of November 7, 2022: On November 7th, 2022, §15000.7 was updated and the “limited access area” storage requirement was completely removed. It now reads, “(a) All cannabis and cannabis products must be stored within the licensed premises. (b) A licensee shall not store cannabis goods outdoors.” All our cannabis and cannabis products are and have always been stored within the licensed premises. This wording clarifies that if we took away the door separating the storage area from the retail area, and if we took away the security cage, we would still be in full compliance. Therefore, there is absolutely no question that we are, and have always been, in full compliance. 36 Department of Cannabis Control Medicinal and Adult-Use Commercial Cannabis Regulations (November 2022) California Code of Regulations Title 4 Division 19. Department of Cannabis Control Chapter 1. All Licensees Article 1. Division Definitions and General Requirements §15000 definitions, “Limited-access area” means an area in which cannabis or cannabis products are stored or held and is only accessible to a licensee and authorized persons. NEW CODE: 37 OLD CODE: (from the Bureau of Cannabis Control (BCC) website): Note: about a year ago, the BCC became a Department, known as the Department of Cannabis Control. Since then, they have made important changes and updates to the California Code over the former Cannabis Order of Adoption. This code is improperly referenced in the Notice of Violation because it is now obsolete: 38 EXHIBIT M Photos of Our Security Monitor, Viewable by Security and All Staff & Additional Shop Photos Showing Arrangement of Display Cases Creates a Limited Access Area 39 40 41 EXHIBIT N Tenant Improvement Job Card With Compliance Signoff by the Building Dept., The Fire Dept., The Planning Dept., and the Police Dept. *This would not have been signed off by all departments if we were not in compliance prior to opening. 42 EXHIBIT O Certificate of Occupancy *This would not have been issued by all departments if we were not in compliance prior to opening. 43 EXHIBIT P Email from Veronica Goedhart Acknowledging Opening on March 18th, 2020 E Steven Wijatyk <steven.j.wijatyk@gmail.com> Reefer Madness now open Veronica Goedhart <Veronica.Goedhart@palmspringsca.gov>Wed, Mar 18, 2020 at 12:26 PM To: Steven Wijatyk <steven.j.wijatyk@gmail.com> Congrats on opening for business! I will keep an eye out for their live scans and will notify you as soon as received. Veronica E. Goedhart Director, Department of Special Program Compliance Office – 760-322-8370 / Ext. 8370 Email: veronica.goedhart@palmspringsca.gov From: Steven Wijatyk [mailto:steven.j.wijatyk@gmail.com] Sent: Wednesday, March 18, 2020 11:58 AM To: Veronica Goedhart <Veronica.Goedhart@palmspringsca.gov> Subject: Reefer Madness now open Hi Veronica, I have contracted O'Linn security and they started on site at 10 am. I am now open. Alanna and Jason submitted live scans at the UPS store yesterday. Please let me know as soon as you recieve results so that I may know if I can move forward with making them my employees. The door to the lounge is closed and dead-bolt locked with a sign explaining the lounge area closure. I am prepared to excercise separation procedures in the dispensary area and avoid handshakes, etc. Please let me know if you have any questions or concerns. Best Regards, Steve Wijatyk 44 EXHIBIT Q Security Cage email from Grainger with Installation Instructions Steven Wijatyk <steven.j.wijatyk@gmail.com> wire cage info donotreply_tps <donotreply_tps@grainger.com>Wed, Mar 2, 2022 at 4:21 PM To: "steven.j.wijatyk@gmail.com" <steven.j.wijatyk@gmail.com> Thank you for contacting Grainger: Our goal at Grainger is to provide superior customer service, 24/7. Your request is very important to us. To ensure you receive a response in a timely manner please send all future email requests (for orders, quotes, pricing, availability, etc.) to customersupport@grainger.com or call us 1-800- GRAINGER (1-800-472-4643). Carlos wirecrafters18888916_TD.PDF 1896K WireCraftersInstallation Instructions INCLUDED IN THIS MANUAL General Information 2 Slide Door Receiver 17 Panels & Posts 3 Tunnel Door 18 Adjustable panels 4 Basic Ceiling 19 TES-4 & JSPE Detail 5 2” x 2” Horizontal Ceiling Tube 20 Hinge Door Hardware 6 2” x 4” Horizontal Ceiling Tube 21 Hinge Door Inside Swing 7 2” x 6” Horizontal Ceiling Tube 22 Hinge Door Outside Swing 8 Ceiling Tube Masonry Connections 23 Dutch Door 9 Physical Barrier 24 Double Hinge Door 10 Barrier Hinge Door Outside Swing 25 Slide Door Hardware 11 Barrier Hinge Door Inside Swing 26 Slide Door Outside 12-13 Rack Back® 27 Slide Door Inside 14-15 Rack Back® Hinge Door 28 Slide Door Panel Assembly 16 Component Location Work Sheet 29 WireCrafters, LLC. General Information 6208 Strawberry Lane 502/363-6691 www.wirecrafters.com Louisville, Kentucky 40214 502/361-3857 FAX 1-800-626-1816 The following General Installation Instructions should be used as a guide for installing WireCrafters Style 840 Partitions. Because of the varying job site conditions, and infinite layout possibilities, there is no “recommended” way to install the product. Good common sense and proper safety precautions must be used during installation. The product may be unstable during installation; proper temporary bracing should be used until all hardware is tightened and the product is properly anchored to the floor. Permanent field bracing may be installed at installer’s/owner’s discretion. Install problems arising from job site conditions should be referred to a professional installer. Refer product assembly questions to WireCrafters. TOOLS RECOMMENDED Chalk line & marker Drill with adjustable clutch and 3/8” nut driver (2) Step ladders if installing ceiling Tape Measure Hammer Drill with 3/8” masonry bit (2) C clamps or Vise-Grip® type clamps Level (2) 9/16” open end wrenches and/or #1 & #2 Phillips Screw Driver Hacksaw (2) 9/16” deep socket ratchets 1/2” deep socket or 1/2” open end wrench SELF DRILLING SCREW INSTALLATION RECOMMENDATIONS When installing self drilling screws use a standard variable speed screw gun equipped with an adjustable clutch or depth locating nose piece. Take care not to over tighten or strip, set drill accordingly. DO NOT USE IMPACT TYPE GUN WHEN INSTALLING SELF DRILLING SCREWS. Securely clamp component parts in place before attaching with self drilling screws. INSTALLER TIPS 1. Installation is best accomplished with a two or three person crew. 2. Before starting, review all installation instructions pertinent to your layout (i.e. panels, doors, etc.) 3. “Face Side” of the partition is the outside, where nuts and bolts will NOT be visible or accessible. “Inside” of the partition has one leg of the panel frame pointing in. Assembly hardware will be on the inside of most layouts. 4. Panels install horizontally between posts, 2” mesh opening should be parallel with floor. 5. Identify all panels by part number. If possible stage parts where they will be installed. 6. Special size panels have metal tags on the mesh and are referenced on drawing. 7. Make sure all posts are installed plumb (vertically perpendicular to floor). Shims (not provided) may be necessary. 8. Use a 3-1/4” spacer block (not provided) to support far end of panel during setup. 9. Begin installation process at a building wall, end or corner of layout. 10. Gauge hinge door opening by width of transom panel. 11. Gauge slide door opening by door width (e.g. 48” between posts for 4’ wide slide door). When necessary, slide door openings may be narrowed to adjust length of adjacent run. 12. Standard hinge, double hinge, and slide doors are universal and may be installed inside or outside swing, left or right hand. Dutch and special doors are not universal and must be installed as shown out on drawing. 13. Installer should cut off any bolts or hardware protruding into aisle ways or around door openings. 14. Installer should touch up all nicks, marks, and scratches with touch up paint provided. Panels and Posts Installation 1. Use a chalk line to outline the partition layout on the floor. a. Out to out dimensions shown on drawing are to face side of posts. b. Post base plates project 2-1/2” beyond outline of partition. 2. Lag end post (A) to floor per Fig. 1 using two anchors provided. a. If end of partition mounts directly to building wall, support panel with 3-1/4” spacer block, and mount panel to wall with appropriate wall mount kit. 3. Mount bottom panel (B) to post (A) a. Per Fig. 2 for corner post using two 3/8” corner bolts, or b. Per Fig. 3 for run post using two 3/8” x 3” straight bolts, or c. If mounting directly to building wall, skip this step. d. Note: Panels install horizontally; 2” mesh opening parallel with floor. 4. Attach opposite end of panel (B) to second post (C) a. per Fig.2 for corner post, or b. Per Fig.3 for run post. 5. Lag post to floor using two anchors provided 6. Install top panel (D) between posts and bolt to lower panel (B) per Fig 4 using 3/8” x 1” nuts and bolts. WireCrafters Panels and Posts WireCrafters TES-4 & JSPE Details POST SPLICE INSTRUCTIONS 1. Force the JSPE (A) into the bottom post (B) until it bottoms out on panel bolt (C). 2. Force (D) until the top and bottom posts meet flush. WireCrafters Hinge Door Hardware Pack WireCrafters Slide Door Hardware Pack WireCrafters Outside Slide Door INSTALLER NOTES 1. Doors wider than 5’ are made up of multiple door panels (see page 16), and use two pieces of track spliced at Splice Track Bracket (A). 2. Component parts attach using self-drilling screws. Use variable speed screw gun with adjustable clutch or depth locating nose piece. Use care not to over tighten and strip threads. DO NOT USE IMPACT TYPE GUNS. Securely clamp part in place before attaching with self drilling screws. 3. Partition wall should be set up and anchored to floor. It is CRITICAL that posts are plumb and in line. Door opening should be square. Outside Slide Door 1. Check that door posts are anchored and plumb. 2. Using a 3/8” x 3” bolt, install Splice Track Bracket (A) on face side of door post (B) opposite door receiver post (C). Note: if enclosure has ceiling use a 3/8” x 1” bolt to attach bracket see Fig.1. 3. Place two 4 wheel trolley trucks (F) into track (D). Using one 3/8” x 1” bolt, attach track bracket (G-1) to track. a. Check that trucks roll freely in track. 4. Slide open end of track (D) into Splice Track Bracket (A). Using one 3/8” x 3” bolt, attach track bracket (G-1) to receiver post (C) see Fig 2. 5. Invert Track Bracket (G-2) and attach to far end of Track (D) using one 3/8” x 1” bolt. If end of track aligns with post, do not invert track bracket. a. For doors wider than 5’ i. Attach inverted bracket to far end of second track section. ii. Slide open end of second track section (D) into open end of Splice Track Bracket (A). 6. Using one 3/8” x 1-1/2” bolt and two slide door shims (O), attach the inverted track bracket on the far end of Track (D) to the wire mesh panel. a. Per Fig. 3 place one flat slide door shim between the Track Bracket (G-2) and the mesh, and the other Slide Door Shim on the inside of the mesh and fasten in place with one 3/8” x 1-1/2” bolt and hex nut. TRACK MUST BE LEVEL. b. Should Track Bracket (G-2) align with post, attach upright track bracket to post with 3/8” bolt. 7. For doors wider than 5’ or taller than 8’, assemble door panels to form door assembly. See Slide Door Panel Assembly page 16. 8. Hang door (I) on Trolley Trucks. a. Two 9/16” round holes on top of door assembly match trolley bolts. b. Trolley bolts should have one nut above and below door frame; upper “jam” nut should be backed off until door operation is finalized. 9. Lag door guide (M) to floor with two floor anchors see Fig 4. 10. Raise door to desired sweep space using lower trolley nut. a. Stock doors without lower angle cover bar have 3-1/4” sweep space. b. Stock doors with lower angle cover bar have 1-3/4” sweep space. c. Door must be level for proper operation. 11. Door should slide freely, if not check that trolley trucks are properly aligned in track. 12. If applicable, install cylinder lock in door, see page 11. 13. Install Lock Receiver (N). See Fig 5. and slide door receiver instructions on page 17. 14. Fine tune door by tightening/loosening trolley truck nuts. a. When door operates smoothly and locks consistently, tighten top jam nut. b. Be sure not to cock trolleys sideways when tightening jam nut. It may be necessary to hold bolt with pliers while tightening jam nut. WireCrafters Outside Slide Door SLIDE DOOR PANEL ASSEMBLY 1. Attach door panel (A) to leaf panel(s) (B) with 3/8” x 1” bolts. a. 10’ wide doors have 4’ 2” wide door panel, 4’ wide leaf panel, and 2’ wide leaf panel. 2. For 10’ high doors, attach 2’ high DEP panel (C) a. Attach two 18” DEP Channels (D) with 3/8” x 1” carriage bolts to splice connection between door and DEP see Fig.1. 3. For 8’ high doors, attach one 18” DEP Channel (D) per joint, to top frame with 3/8” x 1” carriage bolts, see Fig.2. 4. Attach lower angle cover bar (E) to bottom of door with 3/8” bolts and nuts. WireCrafters 6’ or Wider Slide Door Panel Assembly WireCrafters Slide Door Receiver Note:Component parts attach using self-drilling screws. Use variable speed screw gun with adjustable clutch or depth locating nose piece when installing self-drilling screws. DO NOT USE IMPACT TYPE GUNS. RECEIVER LOCATION : 1. Measure from floor to center of the installed slide door’s lock opening-normally 49” for stock doors. a. Be sure proper sweep space has been set before measuring. 2. Subtract 10” from the above measurement to get the dimension from the floor to the bottom of Lock Receiver (A)-normally 39” for stock doors. a. Mark post. 3. Place leg of Lock Receiver (A) with eight slotted holes against receiver post. a. See Fig.1 for receiver (A) orientation. b. Align bottom of receiver with spot marked in Step 2 above. 4. Align opposing leg of Lock Receiver (A) with square holes with edge of post. 5. Attach Lock Receiver (A) to door post with four self-drilling screws. 6. Using four 5/16” x 1” carriage bolts, securely attach Lock Receiver (B) to (A). 7. Fine tune door up or down so that the door’s tubular lock tongue guard overlaps lock receiver tube. DOOR MUST BE LEVEL. WireCrafters Ceiling Tube Masonry Connections 45 EXHIBIT R Security Cage Purchase Confirmation from Grainger Steven Wijatyk <steven.j.wijatyk@gmail.com> Grainger Online Order Confirmation #1441083939 / P.O. #WEB1925942800 1 message Grainger <Grainger@service.grainger.com>Tue, Mar 8, 2022 at 9:22 AM Reply-To: Grainger <CustomerFeedback@service.grainger.com> To: steven.j.wijatyk@gmail.com My Account | Order History | Help | All Products Hello Steven Wijatyk, Thank you for placing an order with Grainger. We confirm that the following order has been received. Order #1441083939 PO #WEB1925942800 Company Name : STEVEN WIJATYK Subtotal $1,594.26 Estimated Tax $147.46 Estimated Shipping $230.24 $1,971.96 Availability, Shipping, Tax & Promotions are not final until your order is processed. All final charges will be reflected on the associated invoice. Reefer Madness 4693 E Ramon Rd Palm Springs, CA 92264-1525 US VISA ****3136 WIRECRAFTERS Wvnwr Prtn Cmpnts, 8 Ft, 2x1in Item # 35W486 Price $202.80 / each STATUS Ships from Supplier Expected to Arrive on or Before Thu Mar 24* TOTAL $202.80 QTY 1 PO Line # 1 WIRECRAFTERS Wvnwr Prtn Cmpnts, 8 Ft, 1x2in Item # 35W485 Price $177.66 / each STATUS Ships from Supplier Expected to Arrive on or Before Thu Mar 24* TOTAL $177.66 QTY 1 PO Line # 2 WIRECRAFTERS Sliding Gate, 3 Ft X 8 Ft 1/4 In, Enamel Item # 35W557 Price $536.34 / each STATUS Ships from Supplier Expected to Arrive on or Before Fri Mar 25* TOTAL $536.34 QTY 1 PO Line # 3 WIRECRAFTERS Hardware Pack, Plain, Steel Item # 35W614 Price $8.27 / each STATUS Ships from Supplier Expected to Arrive on or Before Thu Mar 24* TOTAL $8.27 QTY 1 PO Line # 4 WIRECRAFTERS Hardware Pack, Plain, Steel Item # 35W609 Price $8.35 / each STATUS Ships from Supplier Expected to Arrive on or Before Thu Mar 24* TOTAL $50.10 QTY 6 PO Line # 5 WIRECRAFTERS Post To Wall Clip, Powder Coated, Steel Item # 35W615 Price $9.51 / each STATUS Ships from Supplier Expected to Arrive on or Before Thu Mar 24* TOTAL $76.08 QTY 8 PO Line # 6 WIRECRAFTERS Run , Post, 8.4 Ft Item # 35W547 Price $85.93 / each STATUS Ships from Supplier Expected to Arrive on or Before Thu Mar 24* TOTAL $257.79 QTY 3 PO Line # 7 WIRECRAFTERS Sliding Door Lock, Plain, Steel Item # 35W633 Price $100.19 / each STATUS Preparing to Ship Expected to Arrive Wed Mar 9* TOTAL $100.19 QTY 1 PO Line # 8 WIRECRAFTERS STATUS Ships from Supplier TOTAL $135.23 QTY 1 GRAINGER CHOICE REPLACEMENT PARTS KEEPSTOCK KNOWHOW® Sliding Door Turn Knobs, Plain, Steel Item # 38XZ68 Price $135.23 / each Expected to Arrive on or Before Fri Mar 18* PO Line # 9 WIRECRAFTERS Base Plate, Powder Coated, Steel Item # 35W611 Price $8.30 / each STATUS Ships from Supplier Expected to Arrive on or Before Thu Mar 24* TOTAL $49.80 QTY 6 PO Line # 10 *Within the continental U.S. when your order is received by 5 p.m. local time at your local shipping facility, which may be in a different time zone from you. Deliveries occur Monday-Friday, excluding holidays. Currently subject to limited product availability on select high-demand, pandemic-related items. About Us Contact Us Find a Branch Privacy Policy Terms of Sale ©1994–2022, W.W. Grainger, Inc. 100 Grainger Parkway, Lake Forest, IL 60045–5201. All rights reserved. This email was sent to steven.j.wijatyk@gmail.com. To ensure emails are inboxed directly, please add grainger@service.grainger.com as a contact. This is an automated email. Please do not reply. These items are sold for domestic consumption in the US. If exported, purchaser assumes full responsibility for compliance with US export controls. All US and Export orders are subject to the Grainger Terms of Sale as set forth on the website and/or an existing contract, if applicable. Products shipped directly from suppliers to customers are subject to supplier availability. Certain items are not eligible for purchase by individual consumers without a Grainger business account. If you are not a registered business customer or did not place this order under a logged in account, your order is subject to review and Grainger may refuse to accept your request for certain products. Steven Wijatyk <steven.j.wijatyk@gmail.com> P.O. #{WEB1925942800}: Order Has Shipped 1 message Grainger <Grainger@service.grainger.com>Tue, Mar 8, 2022 at 11:11 AM Reply-To: Grainger <CustomerFeedback@service.grainger.com> To: steven.j.wijatyk@gmail.com My Account | Order History | Help | All Products Hello Steven Wijatyk, The products detailed below are confirmed as shipped. Please allow 24 hours for your tracking information to be active. FedEx 078101573923978 WIRECRAFTERS Sliding Door Lock, Plain, Steel Item # 35W633 QTY Shipped 1 Order #1441083939 PO #WEB1925942800 Reefer Madness Reefer Madness 4693 E Ramon Rd Palm Springs, CA 92264 US FedEx ORM-D Ground-Normal VISA ****3136 46 EXHIBIT S Email from officer Nabhan listing “Items of Importance” for our 2-Year Anniversary Steven Wijatyk <steven.j.wijatyk@gmail.com> 2-Year Anniversary Event - March 18 2022 Mitchell Nabhan <mitchell.nabhan@palmspringsca.gov>Thu, Mar 17, 2022 at 4:14 PM To: Steven Wijatyk <steven.j.wijatyk@gmail.com> Cc: Veronica Goedhart <Veronica.Goedhart@palmspringsca.gov> Hi Steven, Just wanted to touch base again and follow up on our conversa ons from earlier this week regarding your scheduled events celebra ng your two-year anniversary. There’s been some discussion amongst city hall staff about clarifying what is/isn’t permi ed for cannabis businesses that would like to host events/gatherings with live entertainment, and it’s looking like we’ll be ge ng some related communica on out to the licensee’s in the coming weeks. Un l that informa on gets disseminated, any proposed events/gatherings will be reviewed on a case-by-case basis. For the events scheduled at your business on Friday, March 18th, in addi on to your normal retail compliance prac ces, please ensure the following items of importance are managed appropriately throughout the day: The business does not exceed its permi ed occupancy limits. Posted occupancy limits include staff/employees and should not be interpreted as in addi on to staff/employees. The business, or hosted vendors, does not provide free Cannabis goods to any person. The business, or hosted vendors, does not setup any promo onal tables/areas on the exterior of the premises. The parking lot remains open, and unobstructed for normal vehicular traffic. The Mobile Food Vendor does not occupy or block more than one parking space, and any adjacent sidewalks, walkways, or easements remain unobstructed. Any temporary signage or promo onal signage is displayed in accordance with the city ’s sign ordinance as well as the city and state’s cannabis regula ons for permi ed pos ng and adver sements. Consump on of Cannabis goods remains restricted to the consump on lounge space. If you have any related follow up ques ons, feel free to send them my way. Good luck with your planned ac vi es! Mitch Nabhan | Code Compliance Officer Palm Springs Police Department a: 200 S Civic Dr, Palm Springs, CA 92262 e: mitchell.nabhan@palmspringsca.gov w: www.palmspringsca.gov p: 760-323-8116 x8745 47 EXHIBIT T Email from Grainger Advising that Part of our Order was on Backorder with the Manufacturer Steven Wijatyk <steven.j.wijatyk@gmail.com> An item on order 1441083939 is backordered with a delayed ship date 1 message Grainger <Grainger@service.grainger.com>Mon, Mar 21, 2022 at 3:08 AM Reply-To: Grainger <CustomerFeedback@service.grainger.com> To: steven.j.wijatyk@gmail.com My Account | Order History | Help | All Products Order #1441083939 has a backordered item Dear Steven Wijatyk, The item listed below is currently on backorder. Your Grainger team is working to obtain more information from our supplier and will ship the item as soon as possible, (separately from the rest of your order). We apologize for any inconvenience and will notify you of the new expected ship date as soon as we have it. If you would like to cancel the item, or select an alternate product, please contact us or call 1-800-472-4643 at any time before we ship the item. Item Summary Description Qty. Ordered Order Unit Original Delivery Date Current Status Sliding Door Turn Knobs,Plain,Steel Item #: 38XZ68 1 EA 03/18/2022 Backordered Check Order Status ► You may continue to monitor the status of this order online. We will notify you when your item ships. Thank you. We look forward to serving you in the future. Grainger Customer Care 1-800-472-4643 Order Details 48 EXHIBIT U Email to Officer Nabhan and Reply from Officer Nabhan concerning the Inspection Results during our 2-Year Anniversary Celebration Steven Wijatyk <steven.j.wijatyk@gmail.com> 2-Year Anniversary Event - March 18 2022 Mitchell Nabhan <mitchell.nabhan@palmspringsca.gov>Mon, Mar 21, 2022 at 4:48 PM To: Steven Wijatyk <steven.j.wijatyk@gmail.com> Cc: Veronica Goedhart <Veronica.Goedhart@palmspringsca.gov> Hi Steven, I haven't been made aware of any complaints as of now, but we're s ll reconciling the weekend's reports/complaints from all of the city's repor ng mediums. Officer Wade, one of the code officers who stopped by, provided me with an update related to his visit and he didn't men on any areas of concern to follow up on. I'm glad to hear that everything went smoothly on your end, if anything ends up on my desk I'll let you know. Mitch Nabhan | Code Compliance Officer Palm Springs Police Department a: 200 S Civic Dr, Palm Springs, CA 92262 e: mitchell.nabhan@palmspringsca.gov w: www.palmspringsca.gov p: 760-323-8116 x8745 From: Steven Wijatyk <steven.j.wijatyk@gmail.com> Sent: Monday, March 21, 2022 3:30 PM To: Mitchell Nabhan <mitchell.nabhan@palmspringsca.gov> Cc: Veronica Goedhart <Veronica.Goedhart@palmspringsca.gov> Subject: Re: 2-Year Anniversary Event - March 18 2022 NOTICE: This message originated outside of The City of Palm Springs -- DO NOT CLICK on links or open a achments unless you are sure the content is safe. Hi Mitch, I am just following up. Everything went smoothly on Friday and there were no issues from my perspective at Reefer Madness. Two Code Compliance Officers stopped in to check on us in the evening. Were there any complaints or concerns? Was everything okay from the City's perspective? Best Regards, Steven Wijatyk On Thu, Mar 17, 2022 at 7:38 PM Steven Wijatyk <steven.j.wijatyk@gmail.com> wrote: Hi Mitch, Thank you for looking out for us and following up. We will follow your guidelines, and we don't expect any problems. I hope that future gatherings, such as this one, will be possible. If I think of any other questions, I'll be sure to reach out. Best Regards, Steven Wijatyk On Thu, Mar 17, 2022 at 4:14 PM Mitchell Nabhan <mitchell.nabhan@palmspringsca.gov> wrote: Hi Steven, Just wanted to touch base again and follow up on our conversa ons from earlier this week regarding your scheduled events celebra ng your two-year anniversary. There’s been some discussion amongst city hall staff about clarifying what is/isn’t permi ed for cannabis businesses that would like to host events/gatherings with live entertainment, and it ’s looking like we’ll be ge ng some related communica on out to the licensee’s in the coming weeks. Un l that informa on gets disseminated, any proposed events/gatherings will be reviewed on a case-by-case basis. For the events scheduled at your business on Friday, March 18th, in addi on to your normal retail compliance prac ces, please ensure the following items of importance are managed appropriately throughout the day: The business does not exceed its permi ed occupancy limits. Posted occupancy limits include staff/employees and should not be interpreted as in addi on to staff/employees. The business, or hosted vendors, does not provide free Cannabis goods to any person. The business, or hosted vendors, does not setup any promo onal tables/areas on the exterior of the premises. The parking lot remains open, and unobstructed for normal vehicular traffic. The Mobile Food Vendor does not occupy or block more than one parking space, and any adjacent sidewalks, walkways, or easements remain unobstructed. Any temporary signage or promo onal signage is displayed in accordance with the city ’s sign ordinance as well as the city and state’s cannabis regula ons for permi ed pos ng and adver sements. Consump on of Cannabis goods remains restricted to the consump on lounge space. If you have any related follow up ques ons, feel free to send them my way. Good luck with your planned ac vi es! Mitch Nabhan | Code Compliance Officer Palm Springs Police Department a: 200 S Civic Dr, Palm Springs, CA 92262 e: mitchell.nabhan@palmspringsca.gov w: www.palmspringsca.gov p: 760-323-8116 x8745 49 EXHIBIT V Various Emails from Grainger Detailing items on Backorder and Delays MY ACCOUNT ORDER HISTORY CART Steven Wijatyk <steven.j.wijatyk@gmail.com> Order #1441083939 Delivery Date has changed Grainger <Grainger@service.grainger.com>Tue, Mar 22, 2022 at 4:01 AM Reply-To: Grainger <CustomerFeedback@service.grainger.com> To: steven.j.wijatyk@gmail.com ALL PRODUCTS | HOT BUYS | CLEARANCE ITEMS | KNOW HOW | HELP DELIVERY DATE CHANGE NOTICE Dear Steven Wijatyk, Please note the delivery date has changed for items in your order. If you would like to cancel a product you ordered or select an alternate product, please contact us or call 1-800-472-4643. If we do not hear from you before we ship the product, we will assume that you have agreed to the new delivery date. ORDER DETAILS Order #1441083939 PO #WEB1925942800 STATUS TOTAL QTY Wvnwr Prtn Cmpnts, 8 Ft, 2x1in Item # 35W486 Old Delivery Date 03/24/2022 New Delivery Date 04/01/2022 Ships from supplier QTY 1 Wvnwr Prtn Cmpnts, 8 Ft, 1x2in Item # 35W485 Old Delivery Date 03/24/2022 New Delivery Date 04/01/2022 Ships from supplier QTY 1 Sliding Gate, 3 Ft X 8 Ft 1/4 In, Enamel QTY 1 Item # 35W557 Old Delivery Date 03/25/2022 New Delivery Date 04/04/2022 Ships from supplier Hardware Pack, Plain, Steel Item # 35W614 Old Delivery Date 03/24/2022 New Delivery Date 04/01/2022 Ships from supplier QTY 1 Hardware Pack, Plain, Steel Item # 35W609 Old Delivery Date 03/24/2022 New Delivery Date 04/01/2022 Ships from supplier QTY 6 Post To Wall Clip, Powder Coated, Steel Item # 35W615 Old Delivery Date 03/24/2022 New Delivery Date 04/01/2022 Ships from supplier QTY 8 Run , Post, 8.4 Ft Item # 35W547 Old Delivery Date 03/24/2022 New Delivery Date 04/01/2022 Ships from supplier QTY 3 Sliding Door Lock, Plain, Steel Item # 35W633 Old Delivery Date 03/09/2022 New Delivery Date Shipped QTY 1 Sliding Door Turn Knobs, Plain, Steel Item # 38XZ68 Old Delivery Date 03/18/2022 New Delivery Date QTY 1 Backordered Base Plate, Powder Coated, Steel Item # 35W611 Old Delivery Date 03/24/2022 New Delivery Date 04/01/2022 Ships from supplier QTY 6 Steven Wijatyk REEFER MADNESS 4693 E Ramon Rd Palm Springs CA 92264-1525 ORDER FOR REEFER MADNESS 4693 E Ramon Rd Palm Springs CA 92264-1525 We will deliver according to the following terms and conditions: Incoterms© 2010 FCA About Us Contact Us My Account Find a Branch Privacy Policy Terms of Sale ©1994–2022, W.W. Grainger, Inc. 100 Grainger Parkway, Lake Forest, IL 60045–5201. All rights reserved. This email was sent to steven.j.wijatyk@gmail.com. To ensure emails are inboxed directly, please add grainger@service.grainger.com as a contact. This is an automated email, please do not reply. Steven Wijatyk <steven.j.wijatyk@gmail.com> P.O. #{WEB1925942800}: Order Has Shipped Grainger <Grainger@service.grainger.com>Mon, Mar 28, 2022 at 12:30 PM Reply-To: Grainger <CustomerFeedback@service.grainger.com> To: steven.j.wijatyk@gmail.com My Account | Order History | Help | All Products Hello Steven Wijatyk, The products detailed below are confirmed as shipped. Please allow 24 hours for your tracking information to be active. Xpo 876218954 WIRECRAFTERS Wvnwr Prtn Cmpnts, 8 Ft, 2x1in Item # 35W486 QTY Shipped 1 WIRECRAFTERS Wvnwr Prtn Cmpnts, 8 Ft, 1x2in Item # 35W485 QTY Shipped 1 WIRECRAFTERS Sliding Gate, 3 Ft X 8 Ft 1/4 In, Enamel Item # 35W557 QTY Shipped 1 WIRECRAFTERS Hardware Pack, Plain, Steel Item # 35W614 QTY Shipped 1 WIRECRAFTERS Hardware Pack, Plain, Steel Item # 35W609 QTY Shipped 6 WIRECRAFTERS Post To Wall Clip, Powder Coated, Steel Item # 35W615 QTY Shipped 8 WIRECRAFTERS Run , Post, 8.4 Ft Item # 35W547 QTY Shipped 3 WIRECRAFTERS Sliding Door Turn Knobs, Plain, Steel Item # 38XZ68 QTY Shipped 1 WIRECRAFTERS Base Plate, Powder Coated, Steel Item # 35W611 QTY Shipped 6 Order #1441083939 PO #WEB1925942800 Reefer Madness Reefer Madness 4693 E Ramon Rd Palm Springs, CA 92264 Xpo VISA ****3136 Item # 39FP19 Wrdrb Lockr, Lvrd, 3 Wd, 2 Tier, Medium Gray Item # 41D989 Pallet Rack Shim, Length 4 In Item # 48WG61 Shelf Bin, Blue, 78 cu. in.Vol Capacity Item # 492P18 Dry Erase Board, Magnetic, Wall Mounted 50 EXHIBIT W Email to officer Nabhan Agreeing to Switch to the Blaze Point of Sale System at a cost of around $10,000 DocuSign with Blaze showing the Service Agreement Steven Wijatyk <steven.j.wijatyk@gmail.com> back room / POS follow-up Steven Wijatyk <steven.j.wijatyk@gmail.com>Wed, Jul 20, 2022 at 3:51 PM To: Mitchell Nabhan <mitchell.nabhan@palmspringsca.gov> Hi Mitch, To address your concerns with the possible limitations of our existing POS, I just signed a contract today with Blaze to begin implementation of their systems (see attached screenshot from my email). I've been looking over different POS platforms since last year, and since doing multiple product demos with Blaze and Trees in April of this year to evaluate compatibility with our daily operations, I had narrowed it down to those two platforms. There are many factors to consider when selecting a fully cannabis compatible platform, and this is a difficult (and costly) process. Most of these platforms require equipment that you can only purchase from their certified partners, making it costly and a lot of work. I had begun implementation with Flowhub early last year (and even paid them the $800 non-refundable implementation fee) only to discover later that there would likely be problems with their system that forced me to continue searching for a different platform. For example, I learned from other Flowhub users as well as from an email that went out from their Tech Support team, that on 4/20/21 (the cannabis holiday), Flowhubs servers crashed resulting in shops having to perform transactions by hand with pen and paper, without their POS. I am glad I discovered these issues in time, and I did not follow through with the implementation of Flowhub or the purchasing of any of their special equipment. I think I still have the emails from Flowhub detailing their server crash, as well as the receipt for the $800 that I unfortunately wasted to begin implementation with them. Regarding the cage for the backroom, although I am still waiting on the correct fasteners for proper installation, I will begin installing it today as best and as professionally as I can with fasteners from Home Depot, and although probably not as good and not as strong as the OEM fasteners that I'm still waiting on, this should meet your requirements. Please let me know if there are any other concerns with this. Best Regards, Steven Wijatyk. Docusign for Blaze.pdf 169K 51 EXHIBIT X Tax Audit served to Reefer Madness on March 18th, 2022, at the 2-Year Anniversary Celebration Notice of Audit Completion on August 10th, 2022 *Note: We were commended for accurately paying all our taxes 52 EXHIBIT Y Tax Offset Notice Falsely Claiming the Fine “Delinquent” and Stating that if the $5000 Payment is Not received by 11/24/22, they will Submit the Fine to the Franchise Tax Board for Collection. *Note: I have called the City of Palm Springs Citation Processing Center a total of 13 times, and spent over 2 hours on hold, and I have not been able to reach someone that can assist me in resolving this issue. 53 EXHIBIT Z Staff Report Prepared by City Staff and Posted on 11/23/22 for the Administrative Appeals Board 11/30/22 Meeting Item 7 – Reefer Madness ADMINISTRATIVE APPEALS BOARD STAFF REPORT DATE: November 30, 2022 SUBJECT: APPEAL OF THE ADMINISTRATIVE FINE OF $5,000 TO REEFER MADNESS, LLC FOR VIOLATION OF 5.55.205(A)(2) and 5.55.110 OF THE PALM SPRINGS MUNICIPAL CODE BY: Office of Special Programs Compliance Department SUMMARY Steven Wijatyk, on behalf of Reefer Madness, LLC has requested an appeal of the administrative citation and fine of $5,000.00 for failure to keep stored cannabis products in a secured and locked safe room, safe, or vault and failure to comply with all State and Local laws. RECOMMENDATION: 1)Open the Appeal Hearing and accept public testimony. 2)Adopt Resolution No. __ , A RESOLUTION OF THE ADMINISTRATIVE APPEALS BOARD OF THE CITY OF PALM SPRINGS, CALIFORNIA, ON THE APPEAL OF THE ADMINISTRATIVE FINE OF $5,000 TO REEFER MADNESS, LLC FOR VIOLATION OF 5.55.205 (A)(2) and 5.55.200.110 OF THE PALM SPRINGS MUNICIPAL CODE BACKGROUND: On November 6, 2019, City Council adopted Ordinance 2005 amending Palm Springs Municipal Code ("PSMC") 5.55, Cannabis Related Business and Activities. Prior to the amendment Chapter 5.55 did not establish penalties and enforcement for violations of the municipal code. The intent of the amendment was to establish significant penalties and provisions for enforcement. On October 14, 2021, City Council adopted a Resolution updating the City of Palm Springs Administrative Fine Schedule, establishing fine amounts for violations of the cannabis regulations contained in PSMC Chapter 5.55. The City provided outreach materials to cannabis businesses and stakeholders informing them of these changes. Additionally, in October 2021, the Department of Special Program Compliance monthly newsletter provided a copy of the administrative fee schedule to all business owners and stakeholders Administrative Appeals Board Staff Report November 30, 2022 -Page 2 Cannabis Related Business and Activities Appeal -Reefer Madness, LLC and in February 2022 introduced the implementation of code enforcement for cannabis. Prior to the issuance of citations, code enforcement staff provided in-person outreach and warnings to cannabis businesses advising of violations. On February 2, 2022, the code compliance officer assigned to cannabis enforcement conducted an on-site cannabis compliance inspection accompanied by the business owner, Steven Wijatyk, that included a full audit of the business operating practices to check for compliance with all applicable state and local adult-use cannabis-related business operating requirements. During this inspection, it was noted that there were items found to be out of compliance related to the business's limited access areas, inventory storage, and video surveillance system (ATTACHMENT "4"). All the non compliant items were discussed with the business owner, and a timeline for correction and reinspection was established. On February 3, 2022, the code compliance officer assigned to cannabis enforcement sent a follow-up email to the business owner, Steven Wijatyk, providing guidance and references to applicable state and local regulations related to questions that came up from the business during our post-inspection discussion from the previous day. The email also included specific guidance and references related to the inventory storage area that was found to be out of compliance (ATTACHMENT "5"). On March 15, 2022, the code compliance officer assigned to cannabis enforcement conducted a follow-up on-site inspection to check for compliance for the items that were identified as needing to be corrected from the previous operational audit. The business owner, Steven Wijatyk, detailed the corrections made to the video surveillance system and the installation of a locking mechanism to secure the limited access area. He also stated that he had procured materials to create a locked safe room for inventory storage but was awaiting a part that was left out of the original shipment of the materials so that item remained out of compliance but was expected to be corrected not long after. On July 20, 2022, the code compliance officer assigned to cannabis enforcement conducted an on-site cannabis compliance inspection accompanied by a supervisor at the business, Gustavo Flores, that included an audit of the business operating practices to check for compliance with all applicable state and local adult-use cannabis-related business operating requirements. During this inspection, it was noted that the corrections needed to the inventory storage area, as detailed in prior visits, remained outstanding and the limited access areas were being left unsecured (ATTACHMENT "6"). STAFF ANALYSIS: Reefer Madness, located at 4693 Ramon Road operates as a dispensary and lounge. They commenced operations in March 2020. In July 2022, during an on-site drop in inspection it was found that Reefer Madness did not have their cannabis product kept in a secured and locked safe room, safe, or vault, and that their limited access areas were Administrative Appeals Board Staff Report November 30, 2022 -Page 4 Cannabis Related Business and Activities Appeal -Reefer Madness, LLC for limited amounts of Cannabis goods used for display purposes, samples, or immediate sale. 2 Staff finds that despite multiple attempts to gain compliance via education the business is in violation of §5.55.205(A)(2) and proceeded to issue Administrative Citation AB6003, in the amount of $5,000, to Reefer Madness LLC. The Administrative Citation and Notice of Violation Letter (ATTACHMENT "7") was delivered in person at the cannabis dispensary to the business owner, Steven Wijatyk, by the code compliance officer assigned to cannabis enforcement. \/ lAovd� w;Jl£l�hJ - Veronica Goedhart, Director Special Program Compliance Attachments: 1 2 3 4 5 6 Resolution no. __ Decision of the Administrative Appeals Board Notice of Appeal Hearing Administrative Citation Appeal Letter Cannabis Retail Inspection - February 2022 Findings February 2022 Emails re Inspection Follow-Up Cannabis Retail Inspection - July 2022 Findings Notice of Violation and Citation AB 6003 7 2 State law provides local jurisdictions with Local Control, providing the ability to enact rules and regulations that are stricter than State laws. Business and Professions Code Section 26200 Division 10-Cannabis Chapter 20 Local Control. 26200. (a) (1) This division shall not be interpreted to supersede or limit the authority of a local jurisdiction to adopt and enforce local ordinances to regulate businesses licensed under this division, including, but not limited to, local zoning and land use requirements, business license requirements, and requirements related to reducing exposure to secondhand smoke, or to completely prohibit the establishment or operation of one or more types of businesses licensed under this division within the local jurisdiction. ATTACHMENT 1 ATTACHMENT 2 ATTACHMENT 3 ATTACHMENT 4 ATTACHMENT 5 ATTACHMENT 6 ATTACHMENT 7