City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-02211 1/10/2023 Consent Item 21.
Supplemental Agreement No. 2: Comprehensive Cannabis Study File ID: 2202-02211
Location: Citywide
Recommendation: Pass a Motion ratifying contract supplemental No. PRC001464-2 with Economic & Planning Systems, Inc. (EPS) increasing the total not-to-exceed amount by $110,000 to $434,000.
Contact: Davina Smith, Cannabis Manager, (916) 808-4772, [email protected]; Lindsay Brown, Administrative Officer, (916) 808-5931, [email protected], Office of Cannabis Management, Office of the City Manager
Presenter: None
Attachments:
1-Description Analysis
2-Contract Supplement
Description/Analysis
Issue Detail: In July 2021, the City of Sacramento executed contract No. PRC001464 with EPS to conduct a comprehensive study of the cannabis business industry in the City of Sacramento with the goal to inform public policy pertaining to land use, fiscal/economic, and other regulations for $249,000. In February of 2022, the contract was amended to extend the term to June 30, 2023, and increase the amount by $75,000 for a new not-to-exceed amount of $324,000, contract No.
PRC001464-1 (Council Motion No. 2022-00484). Subsequently, the Office of Cannabis Management (OCM) increased the contract by $110,000 to allow for additional analysis and research for comparable municipal land use regulations and for other cannabis land use concerns as identified and requested by the City’s Planning and Design Commission, and in preparation for presentations to Council committees and at Council meetings, contract No. PRC001464-2. This second supplement is subject to Council authorization and OCM is recommending that Council ratify the second supplemental contract.
File ID: 2022-02211 1/10/2023 Consent Item 21.
Policy Considerations: Council approval is required to execute supplemental agreements that further increase the agreement amount by more than $25,000 after the council has approved a supplemental agreement that increased the agreement’s amount to $250,000 or more. Sacramento City Code Section 3.64.040.A.1.c.
Economic Impacts: None.
Environmental Considerations: The proposed activity is not a project pursuant to CEQA. CEQA Guidelines Section 15378(b)(2). The activity is a continuing administrative or maintenance activity, such as the purchase for supplies, personnel-related actions, general policy, and procedure making and is not subject to CEQA. CEQA Guidelines Section 15060(c)3).
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: The recommended contract supplement provides resources for EPS to complete the additional analysis and research, and preparation for presentations to Council committees and Council meetings.
Financial Considerations: Sufficient funding is available in the operating budget to award the contract extension.
Local Business Enterprise (LBE): Not applicable.
SUPPLEMENTAL CONTRACT
(Rev. 11-1-19)
Project Title and Job Number: Cannabis Study Date: 10/11/2022 Purchase Order #: 62367 Supplemental Contract No.: 2
The City of Sacramento ("City") and _Economic & Planning Systems, Inc._("Contractor"), as parties to that certain Professional Services Agreement designated as Contract Number _PRC001464_, including any and all prior supplemental contracts modifying the contract (the contract and all supplemental contracts are hereafter collectively referred to as the "Contract"), hereby supplement and modify the Contract as follows:
1. The Scope of Services specified in Exhibit A of the Contract is amended as follows:
Attachment 1 to Exhibit A is amended to read as:
A. Section 4 is amended to read as follows : “Phase II: Additional In- Depth Policy -Related Focus Areas. After completion of the Study, the City may request that EPS conduct additional in-depth analysis of focus areas, tasks, category groups, or other matters related to the Study.” B. Section 4(a), ‘Group 1 Land Use Regulation Additional In- Depth Analysis,’ is added to read as follows: “EPS shall conduct additional analysis and research for comparable municipal land use regulations of the various cannabis industry sectors and adjacent uses, and for other cannabis land use concerns as identified and requested by the City’s Planning and Design Commission.”
2. In consideration of the additional and/or revised services described in section 1, above, the maximum not -to-exceed amount that is specified in Exhibit B of the Contract for payment of Contractor's fees and expenses, is increased by _$110,000_, and the Contract’s maximum not-to-exceed amount is amended as follows:
Agreement's original not-to-exceed amount: _$249,000_
Net change by previous supplemental contracts: __$75,000_ Not-to-exceed amount prior to this supplemental contract: _$324,000_ Increase by this supplemental contract: _$110,000_
New not-to exceed amount including all supplemental contracts: _$434,000_
3. Contractor agrees that the amount of increase or decrease in the not- to-exceed amount specified in section 2, above, shall constitute full compensation for the additional and/or revised services specified in section 1, above, and shall fully compensate Contractor for any and all direct and indirect costs that may be incurred by Contractor in connection with such additional and/or revised services, including costs associated with any changes and/or delays in schedules or in the delivery of other services by Contractor.
4. Contractor warrants and represents that the person or persons executing this supplemental contract on behalf of Contractor has or have been duly authorized by Contractor to sign this supplemental contract and bind Contractor to the terms hereof.
5. Except as specifically revised herein, all terms and conditions of the Contract shall remain in full force and effect, and Contractor shall perform all of the services, duties, obligations, and conditions required under the Contract, as supplemented and modified by this supplemental contract.
[SIGNATURES ON FOLLOWING PAGE]
SUPPLEMENTAL CONTRACT
(Rev. 11-1-19)