Study Session Item 5a
STAFF REPORT
Council Study Session
DATE: September 2, 2025
TO: Honorable Mayor and Council Members
FROM: Amy Nilsen, City Manager
SUBJECT: Overview of Cannabis Regulatory Environment in the State of California from HdL Companies
STAFF RECOMMENDATION:
Receive and file the presentation from HdL Companies regarding cannabis regulations and consider whether to maintain the current prohibition on commercial cannabis or to develop a program that permits and regulates commercial cannabis businesses.
BACKGROUND:
• February 3, 2025 – Under Future Agenda Items, the City Council requested a discussion on a cannabis ordinance.
• February 18, 2025 – City staff presented on prioritizing ordinance development and longrange planning activities. The City Council directed staff to prioritize development of a cannabis ordinance.
• April 21, 2025 – City staff initiated a discussion on the City’s budget outlook and potential revenue generation options. Retail cannabis was identified as one possible source of additional general fund revenue.
• May 5, 2025 – City staff requested a supplemental budget of $49,750 to prepare a commercial cannabis program and ordinance. The City Council did not approve the request. Staff then proposed a more cost-effective educational approach at $9,600, which did not require a supplemental budget.
• August 25, 2025 – Today’s presentation by HdL Companies marks the first step in a study session aimed at informing the discussion and development of a potential cannabis ordinance and regulatory program.
HdL Companies operates a dedicated Cannabis Division that has served hundreds of cities across California. This division assists municipalities in navigating the regulatory landscape and is recognized as a leading authority in cannabis policy development. Mark Lovelace, Senior Policy Advisor, will provide an overview of the cannabis industry and will be available to answer questions.
RECOMMENDED COUNCIL ACTION:
Study Session Item 5a
Receive and file the presentation from HdL Companies regarding cannabis regulations and consider whether to maintain the current prohibition on commercial cannabis or to develop a program that permits and regulates commercial cannabis businesses.
ATTACHMENTS:
• Cannabis Policy Study Session Presentation