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6.D. - Page 1 of 19 <br />/<�ik <br />Redwood <br />CitylCallifornia <br />Faunded 1867 <br />A,&/ <br />DATE: July 13, 2020 <br />SUBJECT <br />STAFF REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br />Agreement with Hinderliter, de Llamas & Associates (HdL Companies) to develop and manage the City's <br />cannabis delivery business permit renewal program and compliance audit process <br />RECOMMENDATION <br />By motion, approve and authorize the City Manager to execute an approximately 13 month Agreement <br />for Services with Hinderliter, de Llamas & Associates (HdL Companies) to produce the necessary <br />documents and processes and administer the cannabis business permit renewal and compliance audit <br />process in an amount not to exceed $120,000, including City Manager authority to extend the agreement <br />for two additional one-year periods, for a total contract amount of $360,000. <br />STRATEGIC PLAN GUIDING PRINCIPLE <br />Economic Vitality <br />BACKGROUND <br />In response to the 2016 State law allowing the adult use of cannabis, the City of Redwood City began the <br />process of evaluating City regulations regarding the cultivation, storage, distribution, delivery, sale, <br />taxation and smoking of adult use and medical cannabis. <br />On October 23, 2017 the City Council discussed a phased approach to cannabis regulations to: <br />• Use regulations to enable safe adult access to cannabis as voters requested and local survey <br />responses supported while working with schools and youth -serving organizations to deter youth <br />access <br />• Recover all costs of regulation <br />• Adapt as the market evolves and public health data becomes available <br />Page 1 of 4 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore <br />331 <br />