APPROVED AS TO FORM AND LEGALITY
________________________
CITY ATTORNEY’S OFFICE
OAKLAND CITY COUNCIL
RESOLUTION NO. ______________ C.M.S.
RESOLUTION AMENDING COUNCIL RESOLUTION NO. 89831 C.M.S.
TO WAIVE THE LOCAL/SMALL LOCAL BUSINESS ENTERPRISE
PROGRAM REQUIREMENTS FOR C4C, INC. FOR THE
PROFESSIONAL SERVICES AGREEMENT PREVIOUSLY
AUTHORIZED BY RESOLUTION NO. 89831 C.M.S. TO IMPLEMENT
CANNABIS WORKFORCE CERTIFICATION AND ON THE JOB
TRAINING PROGRAMS FOR EQUITY EMPLOYEES FOR A TWO
YEAR PERIOD IN AN AMOUNT NOT TO EXCEED SEVEN HUNDRED
AND FORTY-FIVE THOUSAND THREE HUNDRED AND FIFTY-SEVEN
DOLLARS ($745,357)
WHEREAS, the City of Oakland (City) conducted the nation’s first race and equity analysis of the cannabis industry and adopted the nation’s first Equity Program in the Spring of 2017 with the goal of promoting equitable ownership and employment opportunities in the cannabis industry to address the disproportionate impacts of the war on drugs in marginalized communities of color; and
WHEREAS, the City’s action led to the creation of California’s Cannabis Equity Grants Program for Local Jurisdictions administered annually by the Governor’s Office of Business and Economic Development (Go-Biz). On February 7, 2022 Go-Biz awarded the City of Oakland $5,435,140.82 in Cannabis Equity Grants Program funding for 2022-2023; and WHEREAS, on May 3, 2022 the City Council adopted Resolution No. 89163 authorizing the City Administrator to appropriate up to three hundred and thirty thousand three- hundred and fifty seven dollars ($330,357) in Go-Biz funding and any additional funding from the FY 2022-2023 Midcycle Budget to assist in the recruitment, training, and retention or equity employees; and
WHEREAS, on June 30, 2023 the City Council adopted the FY 2022-2023 Midcycle Budget via Resolution No. 89283, which invested two-hundred and fifty thousand dollars ($250,000) towards cannabis workforce development programs under the Economic and Workforce Development Department’s budget plus an additional one million two hundred and fifty thousand dollars ($1,250,000) under City Council Amendment Item Number C3 for targeted
2 grants to enhance job readiness for Oakland residents who in years past have been personally subjected to the war on drugs; and
WHEREAS, fifty thousand dollars ($50,000) of the three hundred and thirty thousand three-hundred and fifty-seven dollars ($330,357) in Go-Biz funds authorized for cannabis workforce development programing have been repurposed to support cannabis equity applicants holding special events; and
WHEREAS, a total of two hundred and eighty thousand three hundred and fifty-seven dollars ($280,357) in Go-Biz funding remains available for cannabis workforce development programing, which when combined with funding from the FY 2022-2023 Midcycle Budget leaves one million seven hundred and eighty thousand three hundred and fifty seven dollars ($1,780,357) available for cannabis workforce certification and on the job training programs; and
WHEREAS, in the spring of 2022 the Economic and Workforce Development Department (EWDD) released a Request for Proposals (RFP) for an organization to develop (1) an Equity Employee certification training program to establish a pipeline of qualified prospective employees for the regulated cannabis marketplace and (2) an on the job training referral program for equity employees at Oakland cannabis businesses; and
WHEREAS, EWDD staff reviewed and scored the four RFP responses received and found C4C, Inc., doing business as Case 4 Cannabis, as the top respondent; and
WHEREAS, on July 18, 2023, the City Council approved Resolution No. 89831 C.M.S., which authorized the City Administrator to enter into a two-year professional services agreement with C4C, Inc. in an amount not to exceed seven hundred and forty-five thousand three hundred and fifty-seven dollars ($745,357) to implement cannabis workforce certification and on the job training programs; and
WHEREAS, C4C, Inc. will be responsible for disbursing One Million Thirty-Five Thousand Dollars ($1,035,000) in funds already approved by Council through Resolution No. 89283 C.M.S. and Resolution No. 89163 C.M.S. for an on the job training program, among other responsibilities; and
WHEREAS, C4C, Inc. proposes partnering with Merritt College for training and the Oakland Private Industry Council for recruitment and verification of Equity Employees; and
WHEREAS, pursuant to Resolution No. 89831 C.M.S., funding for the professional services agreement includes two hundred and eighty thousand three hundred and fifty-seven dollars ($280,357) in Go-Biz funding for which the grant term expires on October 31, 2023;
WHEREAS, the state Go-Biz grant administrator has advised staff that funds from the Go-Biz grant must be expended by the end of the grant term and staff has obtained an extension of the grant term by forty-five (45) days;
WHEREAS, the Local Business Enterprise/Small Local Business Enterprise (“LBE/SLBE”) Program, Ordinance No. 13647 C.M.S. requires a minimum 50-percent (50%) 3 participation for all professional service contracts valued at or over fifty thousand dollars ($50,000) when there are at least three certified businesses listed in the industry, trade, or profession that constitutes a major category of work; and if at least three L/SLBEs are not certified, then the requirement is either waived, or the 50% requirement may be set at a percentage from 50 % to 0%, but not less than 20% if at least one L/SLBE is certified and available; and
WHEREAS, in order to execute the professional services agreement with C4C, Inc. and expend the state Go-Biz grant funds in a timely manner staff requires a waiver of the L/SLBE program requirements and thus seeks a waiver in order to avoid losing the grant funds; and
WHEREAS, the Council may waive the City’s LBE/SLBE program requirements if it is in the best interests of the City to do so; and
WHEREAS, the Council finds and determines that it is in the best interests of the City to waive the L/SLBE program requirements for the reasons set forth above; now, therefore, be it
RESOLVED: That the City Council hereby amends Resolution No. 89831 C.M.S. to find and determine pursuant to Part I of Oakland’s Local and Small Local Business Enterprise Program guidelines adopted by Ordinance no. 13647 C.M.S. that for the reasons stated above and in the City Administrator’s report accompanying this resolution, that waiver of the L/SLBE program requirements is in the best interest of the City and so waives the requirements for the professional services agreement with C4C, Inc.; and be it
FURTHER RESOLVED: That the City Administrator or their designee is authorized to take any other action necessary and consistent with this Resolution and its basic purposes.
IN COUNCIL, OAKLAND, CALIFORNIA, PASSED BY THE FOLLOWING VOTE: AYES - FIFE, GALLO, JENKINS, KALB, KAPLAN, RAMACHANDRAN, REID, AND PRESIDENT FORTUNATO BAS NOES – ABSENT – ABSTENTION –
ATTEST: ASHA REED City Clerk and Clerk of the Council of the City of Oakland, California 3312576v1