REPORT TO THE CITY COUNCIL June 13, 2019 FROM: JENNIFER K. CLARK, Director Development and Resource Management SUBJECT ..Title Approve a consultant services agreement between the City of Fresno and Quad Knopf, Inc., to prepare an Environmental Impact Report evaluating the proposed regulation and permitting of commercial cannabis activities not to exceed the amount of $300,000. ..Body RECOMMENDATION Staff recommends that the City Council approve the contract with Quad Knopf, Inc., to complete an Environmental Impact Report evaluating the Proposed Regulation and Permitting of Commercial Cannabis Activities not to exceed $300,000 and authorize the execution of related documents by the Director of Development and Resource Management Director or designee. EXECUTIVE SUMMARY The proposed EIR will complete a programmatic assessment of the addition of Cannabis to the City's Development Code to allow cannabis operations within the City. The scope of work will comply with Appendix G of the State CEQA Guidelines. BACKGROUND On December 14, 2017, the Fresno City Council directed staff to initiate the process to amend the zoning code to allow medicinal cannabis operations, cultivation, manufacturing, extraction, testing, distribution, delivery, and dispensaries within the City. Subsequently, in March 2018, the Director initiated an amendment to the zoning code to allow for adult use cannabis cultivation, manufacturing, extraction, testing, and distribution - but not adult use retail sales or delivery. On December 13, 2018, the Fresno City Council adopted a cannabis regulatory ordinance including requirements for medicinal and adult use cannabis permits, operation requirements, location restrictions, and application requirements. The proposed EIR will complete a programmatic assessment of the addition of Cannabis to the City's Development Code to allow cannabis operations within the City. The scope of work will comply with Appendix G of the State CEQA Guidelines. A Request for Proposals for Consultant Services was published on February 13, 2019. Two proposals were received. A review committee evaluated the proposals and determined that Quad Knopf was the most responsive proposal based upon price, timeline to complete, and local staff. Ascent Environmental, Inc. $347,255 Quad Knopf, Inc. $282,963 The EIR is anticipated to be completed and presented to City Council for certification before the end of 2019. ENVIRONMENTAL FINDINGS This approval is not a project as defined by CEQA Guidelines Section 15378. LOCAL PREFERENCE Quad Knopf is a local firm for purposes pursuant to Fresno Municipal Code Section 4-109. FISCAL IMPACT $132,900 was appropriated in FY2019 for the purpose of initiating the Cannabis assessment; the remainder of the cost will be recouped through associated application fees identified through a nexus study. Attachment: Consultant Services Agreement