REPORT TO THE CITY COUNCIL
FROM: GEORGEANNE A. WHITE, City Manager
Office of Mayor & City Manager
BY: JENNIFER RUIZ, Project Manager
Office of Mayor & City Manager
SUBJECT
Title
Actions pertaining to Commercial Cannabis Activity:
Approve a No-Cost Extension Agreement Amendment with Make Green Go LLC for Cannabis Social Equity Business Technical Assistance to October 31, 2022.
Body
RECOMMENDATION
Approve the No-Cost Extension of the Contract with Make Green Go LLC for Cannabis Social Equity Business Technical Assistance to October 31, 2022.
EXECUTIVE SUMMARY
Staff recommends approval of First Amendment with MGG and authorization for the City Manager or designee to enter into such agreement. 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).
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.
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 original contract amount was $100,000.00 and expires on July 28, 2022. Approximately $20,000.00 remain in the contract budget. The purpose of this contract amendment is to ensure the assistance can continue to be provided to qualified cannabis social equity applicants throughout the term of the Cannabis Equity Act grant and commercial cannabis business permit application process.
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