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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: June 5, 2024
To: Honorable Mayor and City Council Members
From: Rochelle Clayton, Acting City Manager;
Joshua Dramitinos, Deputy Director of Economic Development Department: Economic Development
Subject: Amendment No. 2 to the Professional Services
Agreement with SCI Consulting for Cannabis
Monitoring and Financial Audit Services (All Wards)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the City Manager to execute Amendment No. 2 to the Professional Services Agreement (PSA) with SCI Consulting, extending the PSA into its fifth and final year for professional consulting services related to Cannabis Monitoring and Financial Audit Services.
Executive Summary
The recommended action will approve the final option of the agreement with SCI Consulting to provide professional consulting services related to cannabis pre-permit issuance inspections, annual audits, regulatory compliance, and to ensure vendor compliance with cannabis business tax reporting, remittance, and applicable laws, extending the term of the PSA to January 31, 2025.
Background
The City of San Bernardino Municipal Code Chapter 5.10 establishes the regulations and standards for Commercial Cannabis Business (CCB) activities within the City. The City Council initially adopted Chapter 5.10 through Ordinance MC-1464 in March 2018.
In October 2018, the City Council amended Chapter 5.10 with Ordinance No. MC- 1503. The City Council then adopted Resolution 2018-227 to place Ordinance No. MC- 1503 on the November 2018 ballot for voter approval. In November 2018, the voters approved Ordinance No. MC-1503.
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Under the City of San Bernardino Municipal Code, Chapter 5.10: to operate a commercial cannabis business in the City, a person must obtain a valid CCB Permit from the City and a valid license for the cannabis operation from the State of California Department of Cannabis Control (SBMC, § 5.10.060). The City offers six types of permits: cultivation; distribution; manufacturing; microbusiness; retail; and testing. (SBMC, § 5.10.060). Chapter 5.10 currently caps the number of Commercial Cannabis Business Permits that the City may issue at 17 retail and is unlimited for all other license types.
The City of San Bernardino is responsible for overseeing the management and the monitoring of all permitted commercial cannabis locations under Chapter 5.10 of the City of San Bernardino Municipal Code as amended by Ordinance No. MC-1503.
The PSA with SCI was structured with an initial term of three (3) years and included two (2) one year (1) extension options. The initial term of the PSA was set to expire on January 30, 2023. The City has already exercised the first one-year extension option, extending the PSA through January 31, 2024. Staff recommends that the City exercise the second and final extension option, extending the PSA through January 31, 2025.
Discussion
Both parties have mutually agreed to continue the agreement beyond the current January 31, 2024, expiration date while drafting the final amendment to extend the term of the PSA through January 31, 2025. On February 1, 2024, the City received a written request from SCI to extend the term of the PSA through December 31, 2024 (Attachment 2).
This will be the final extension option allowed under the terms of the PSA. SCI Consulting has been instrumental in assisting the City in providing professional consulting services related to the City-wide Cannabis Program. Amendment No. 2 to the PSA with SCI aims to ratify the extension periods in accordance with the originally agreed-upon terms and memorializes the written request to extend the PSA; extending the PSA through December 31, 2024.
2021-2025 Strategic Targets and Goals
This project is consistent with Goal No 1. Improved Operational & Financial Capacity and Goal No 4. Economic Growth & Development. The contract amendment and extension will contribute to ensure that the City is clean and attractive while providing the infrastructure designed for long-term economic growth.
Fiscal Impact
There is no fiscal impact associated with the recommended action. There is sufficient funding within the proposed Fiscal Year 2024-2025 Operating Budget.
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Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the City Manager to execute Amendment No. 2 to the Professional Services Agreement (PSA) with SCI Consulting, extending the PSA into its fifth and final year for professional consulting services related to Cannabis Monitoring and Financial Audit Services.
Attachments
Attachment 1 PSA with SCI Consulting Group
Attachment 2 Written Request from SCI Consulting Group Attachment 3 Resolution No. 2020-111 - PSA with SCI Consulting Ward:
All Wards
Synopsis of Previous Council Actions:
December 4, 2019 Mayor and City Council approved a Professional Services Agreement with SCI Consulting Group
June 3, 2020 Mayor and City Council adopted Resolution No. 2020-111 executing a Professional Services Agreement with SCI Consulting for Cannabis Monitoring and Audit Services.