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File #: ID 22-1630    Version: 1 Name:
Type: Action Item Status: Passed
File created: 10/14/2022 In control: City Council
On agenda: 11/3/2022 Final action: 11/3/2022
Title: Approve the Second Amendment with Make Green Go LLC, for Cannabis Social Equity Business Technical Assistance extending the term to April 28, 2023 and increasing the contract value to $150,000.
Sponsors: Office of Mayor & City Manager
Attachments: 1. MGG Original Contract, 2. MGG First Amendment, 3. MGG Second Amendment

REPORT TO THE CITY COUNCIL

 

 

FROM:                     GEORGEANNE A. WHITE, City Manager

Office of the Mayor & City Manager

 

BY:                                          JENNIFER RUIZ, Deputy City Manager

                                          Office of the Mayor & City Manager

 

SUBJECT

Title

Approve the Second Amendment with Make Green Go LLC, for Cannabis Social Equity Business Technical Assistance extending the term to April 28, 2023 and increasing the contract value to $150,000.

 

Body

RECOMMENDATION

 

Staff recommends the approval of the second amendment to the agreement with Make Green Go LLC (MGG) to extend the term of their contract.

 

EXECUTIVE SUMMARY

 

Staff recommends approval of the Second Amendment with MGG and authorization for the City Manager or designee to enter into such amendment. The contract amendment will allow the City to continue to provide technical assistance support during the application process for cannabis social equity applicants pursuant to FMC 9-3316(b)(6)(vi) and will authorize technical assistance to be provided during the next (third) application round.

 

BACKGROUND

 

Fresno Municipal Code (FMC) Section 9-3316(b)(6)(vi) states, “If qualified as an equity applicant, the equity applicant's fees shall be waived and commercial cannabis business permit application assistance and compliance assistance shall be given. An equity applicant shall also be provided any other assistance as required by state law, as may be amended.” The cannabis social equity applicants from the first and second application rounds are still working on the conditional use permits and other final requirements in pursuit of the final commercial cannabis business permit. The City is also anticipating a third round of applications to fill available permits to commence towards the end of calendar year 2022 or early 2023.

On August 1, 2021, the City entered into a contract with MGG after conducting an RFP process. As part of their technical assistance contract, MGG has provided live webinars with social equity applicants and industry experts on: Business Plans, Capitalization and Location, Interviews, Safety and Security Plans, Marketing, Compliance, and other topics. They have provided direct one-on-one support to applicants on topics such as: business plans, finding compliant locations, grant opportunities, review of partnership agreements, lease documents, clarifying application requirements, finding and working with consultants, and developing company bylaws. The City has received positive feedback from applicants regarding MGG’s services.

 

In April 2021, the City of Fresno was awarded the State of California Cannabis Equity Act grant. This grant authorizes up to $120,000 for technical support services, which covers the costs of the MGG contract. The City anticipates that the maximum grant amount for technical assistance will be expended by the end of October 2022.

 

The original contract amount was $100,000.00 and expired on July 28, 2022. On August 18, 2022 the City Council approved a non-cost extension of the contract to October 31,2022 to expend the remaining grant funds on allowable grant activities.  The purpose of this contract amendment is to ensure the assistance can continue to be provided to qualified cannabis social equity applicants throughout the duration of the application process.

 

As of October 7, 2022, two cannabis retail businesses are operating in the City of Fresno.  Seventeen additional cannabis retail businesses have preliminary approval and are working on their land use and building approvals. Of those, four are social equity businesses. Two retail permits remain to be filled in the City and those permits are eligible to be filled by a social equity applicant. In addition, seven cannabis businesses have preliminary approval of a microbusiness permit. Of those, two are social equity applicants. Nine additional non-retail permits (microbusiness, cultivation, manufacturing or distribution) remain to be filled in the City and two of those permits are eligible to be filled by a social equity applicant. The City anticipates a third application process to fill the remaining available permits to commence towards the end of calendar year 2022 or early 2023.

 

ENVIRONMENTAL FINDINGS

 

Pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15378, this item is not a project for the purposes of CEQA.

 

LOCAL PREFERENCE

 

Local preference was not considered because this is an amendment to an existing agreement.

 

FISCAL IMPACT

 

Funding is appropriated in the Fiscal Year 23-24 budget.

 

Attachments:                     

1.                     MGG Original Contract

2.                     MGG First Amendment

3.                     MGG Second Amendment