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6.D. - Page 3 of 19 <br />administrative services to municipalities in the state of California. HdL Companies has specific knowledge, <br />expertise and experience developing and implementing programs to monitor cannabis business <br />operations. HdL Companies currently has similar cannabis audit compliance contracts with 75 cities across <br />California. <br />FISCAL IMPACT <br />The total amount of the agreement for services is up to $120,000 for one year, with the option of two - <br />one year extensions, for a total of $360,000, over three years. A mid -year budget amendment to record <br />the expected revenue offset and expenditures will be completed later this year. The total aggregate <br />contract with HdL Companies for all services citywide is $482,200. HdL Companies will be compensated <br />on their time spent on cannabis delivery application renewals. Funds for this agreement will be directly <br />reimbursed by the City's cannabis delivery businesses via their annual payment renewal fee. <br />ENVIRONMENTAL REVIEW <br />This activity is not a project under California Environmental Quality Act (CEQA) as defined in CEQA <br />Guidelines, section 15378, because it has no potential for resulting in either a direct or reasonably <br />foreseeable indirect physical change in the environment. <br />PUBLIC NOTICE <br />Public notification was achieved by posting the agenda, with the agenda items being listed, at least 72 <br />hours prior to the meeting. <br />ALTERNATIVES <br />The City Council may elect not to award the agreement to HdL Companies and direct staff to identify <br />another option for administering the cannabis business permit renewal application process. <br />ATTACHMENTS <br />Attachment A — Agreement for Services with HdL Companies <br />REPORT PREPARED BY: <br />Alex Khojikian, Assistant City Manager <br />akhojikian@redwoodcity.org <br />(650) 780-7302 <br />Page 3 of 4 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore <br />333 <br />