September 12, 2023
Economic Development
DATE: September 12, 2023
TO: Mayor Martinez and Members of the City Council
FROM: Lina Velasco, Director of Community Development
Nannette Beacham, Director of Economic Development
Lizeht Zepeda, Senior Business Assistance Officer
Shané Johnson, Senior Administrative Analyst
Lilia Corral, Management Analyst
Subject:
Make Green Go, LLC Contract and SCI Consulting Group
Contract Amendment
FINANCIAL IMPACT: Make Green Go, LLC.’s contract will be funded by the $1,319,360 GO-BIZ Type II Cannabis Equity Grant
awarded by the CA Governor's Office of Business and
Economic Development (10661065-400538-36G07).
Additionally, funding in the amount of $25,000 for the SCI Consulting Group contract amendment is included in the
approved FY 2023-2024 budget (01361165-400201-
36G07).
PREVIOUS COUNCIL
ACTION:
March 1, 2022; December 7, 2021; November 21, 2021;
April 10, 2021; June 19, 2018; January 18, 2018
STATEMENT OF THE
ISSUE:
The City of Richmond, City Manager's Office, Economic
Development was awarded a $1,319,360 GO-BIZ Type-II
Cannabis Equity Grant for local jurisdictions to implement the Cannabis Equity Program. In addition, the
Community Development Department has been working
with SCI Consulting Group to amend the City’s cannabis
regulations. City staff is seeking approval of contract with Make Green Go, LLC. to provide direct technical
assistance regarding business planning and growth, as
well as regulatory compliance and application assistance AGENDA
REPORT
September 12, 2023
for the City’s Cannabis Equity Program, and a fifth
contract amendment with SCI Consulting Group to
support the implementation and management of the
Cannabis Equity Program.
RECOMMENDED ACTION:
APPROVE a contract with Make Green Go, LLC. in an
amount not to exceed $121,000, to provide direct
technical assistance for the City’s Cannabis Equity
Program, for a term beginning September 20, 2023, and
ending on December 31, 2025; APPROVE a fifth contract
amendment with SCI Consulting Group in an amount not
to exceed $25,000 to support the implementation and
management of the Cannabis Equity Program, for a term
ending on December 31, 2025; and AUTHORIZE the
Directors of Community Development and Economic
Development to negotiate and approve additional
scope(s) of work, if necessary, for additional amounts not to exceed $60,000, for each contract respectively –
Economic Development Department (Nannette Beacham
510-621-1306).
DISCUSSION:
Background
During the November 21, 2017, Richmond City Council meeting, councilmembers voiced their desire to develop an equity program for commercial cannabis activities.
Subsequently, on April 10, 2021, the City Council authorized staff to conduct a cannabis equity assessment and develop a local equity program. Economic Development staff worked with SCI Consulting Group to develop an Equity Assessment and Equity Manual, establishing an equity program for the City of Richmond. In order to develop the Equity Assessment and Equity Manual, SCI Consulting Group and City staff members hosted multiple community meetings. They also interviewed cannabis stakeholders (current or prospective cannabis operators, prospective equity applicants, non-cannabis private stakeholders, and local business leaders). The interviews provided an in-depth look at the current cannabis industry and provided insight into the current strengths and challenges of Richmond's cannabis industry. On December 7, 2021, the City Council adopted Resolution No.148-21, establishing a city-wide Cannabis Equity Program, including approval of the Equity Assessment and Equity Manual pursuant to the California Cannabis Equity Act of 2018 (Attachment 1).
On December 14, 2021, Economic Development staff members applied for California Governor's Office of Business and Economic Development (GO-Biz) Type II funding to implement the Cannabis Equity Program. In preparation for the application, City staff members and SCI Consulting Group prepared a budget that would support three (3) to
September 12, 2023
five (5) equity applicants with licensing, establishing a Cannabis business, and/or expanding an existing business. Using this as the base, and adding costs associated with City staff time, consultant support in implementation, and soliciting and acquiring contracts with technical assistance providers, the City requested $1,319,360 in Type II grant funding. On February 7, 2022, GO-Biz released a press release awarding the City of Richmond the $1,319,360, the full amount requested.
Request for Proposals (RFP)/Request for Qualifications (RFQ) On June 6, 2022, the Economic Development Department released a Request for Proposals (RFP)/Request for Qualifications (RFQ) to solicit highly qualified firms to assist the City in implementing the City of Richmond’s Cannabis Equity Program and supporting Cannabis Equity Applicants to start and grow their businesses (Attachment 2).
Key aspects of the scope of services included:
Technical Assistance Program: Preparation of business plans; the complete cycle of business formation, operations, steady growth, and planned exits; accounting practices; insurance requirements; inventory and quality control procedures; local permitting requirements; state licensing requirements; real estate assistance in finding a viable location; and review applications for completeness and accuracy.
Regulatory Compliance: Ensure cannabis equity applicants accurately and fully complete state and local cannabis applications and are fully compliant with state and local regulations. Host workshops and group training with equity applicants that cover: state and local regulatory requirements, flow chart, or check-list for businesses, cannabis license application, completion any outstanding documents, and submission of documentation to appropriate regulatory department/organization.
Legal Assistance Program: One-on-one legal consultations regarding business disputes, landlord/tenant matters, tax compliance, inventory management, compliance requirements, and similar matters. Document review and/or redlining:
letters of intent, memorandums of understanding, term sheets, lease agreements, landlord/tenant notices, incubation agreements, partnership agreements, operating agreements, bylaws, shareholder agreements, investment memos, demand letters, and similar documents.
Through the BidsOnline System, 1,574 vendors were notified of the RFP/RFQ. The RFP/RFQ closed on July 1, 2022, with five (5) responses received. All five (5) responses were scored based on evaluation criteria outlined in the RFP/RFQ, and the top two (2) firms were interviewed and ranked. Subsequently, Make Green Go, LLC. (“Make Green Go”) was selected (Attachment 3).
Based in Oakland, Make Green Go is a black-owned and woman-owned lead organization that offers culturally relevant courses through an online learning network,
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access to an online community that allows participants to connect and collaborate, and online education through an automated platform. The firm has previously worked with cities such as Oakland, Fresno, and San Francisco in delivering services related to their respective cannabis equity programs. Make Green Go’s technical assistance methodology will provide equity applicants foundational education and training resources through innovative content creation and delivery (Attachment 4).
Contract Amendment
On January 18, 2018, the City of Richmond executed a contract with SCI Consulting Group (SCI) for $9,900 to assist the City in preparing amendments to the City’s Cannabis Ordinance to develop regulations for adult-use commercial cannabis activities, personnel cultivation, and align regulations with State law (Attachment 5).
Subsequently on June 19, 2018, the City Council approved a first contract amendment as additional resources were needed to complete the Cannabis Ordinance amendments and an associated fee study (Attachment 6). A second contract amendment was approved administratively for additional time only (Attachment 7). A third contract amendment was approved by City Council on April 20, 2021, to create a Cannabis Equity Assessment and integrate the assessment into the creation of a Cannabis Equity Ordinance (Attachment 8). A fourth contract amendment was approved by City Council on March 1, 2022, to amend the Cannabis Ordinance and prepare the application process for the Cannabis Equity Program (Attachment 9).
The City of Richmond Community Development Department currently has an ongoing contract with SCI to update the City's cannabis regulations. The proposed fifth amendment to the contract would modify the scope to support the implementation and management of the Cannabis Equity Program in collaboration with Make Green Go (Attachment 10).
The scope of work would include the following:
Technical Assistance Program Oversight and Management – SCI will collaborate with Make Green Go to develop a comprehensive and effective Technical Assistance program that is tailored to the City's unique needs. SCI will ensure that the program aligns with the City’s goals and objectives and is responsive to the needs of the community.
Management of Equity Applications and Applicants – SCI will develop and design equity application forms, assist in the launch and advertisement of the application, and review and respond to applicants. Additionally, SCI will determine eligibility and facilitate enrollment into the City's equity program. Development and Management of Grant Program – SCI will assist the City with the development and management of a grant program designed to provide direct grants and fee waivers to eligible equity applicants. SCI will design the application process, assist in the review of grant applications, and facilitate the disbursement of funds.
September 12, 2023
Conclusion
City staff is seeking approval of a contract with Make Green Go in an amount not to exceed $121,000, to provide direct technical assistance regarding business planning and growth, as well as regulatory compliance and application assistance, for a term beginning September 13, 2023, and ending on December 31, 2025; and a fifth contract amendment with SCI in an amount not to exceed $25,000, to support the implementation and management of the Cannabis Equity Program, for a term ending on December 31, 2025. City staff is also seeking authorization for the Directors of Community Development and Economic Development to negotiate and approve additional scope(s) of work, if necessary, for additional amounts not to exceed $60,000, for each contract respectively.
DOCUMENTS ATTACHED:
Attachment 1 – Resolution No.148-21, Equity Assessment & Equity Manual Attachment 2 – Request for Proposals (RFP)
Attachment 3 – Scoring Matrix
Attachment 4 – Make Green Go Contract
Attachment 5 – SCI Consulting Group Short Form Contract Attachment 6 – SCI Consulting Group Amendment #1
Attachment 7 – SCI Consulting Group Amendment #2
Attachment 8 – SCI Consulting Group Amendment #3
Attachment 9 – SCI Consulting Group Amendment #4
Attachment 10 – SCI Consulting Group Amendment #5