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File Number: 16-371
<br />processing facilities. ICF’s related tasks included expert panel review of approximately 100
<br />applications in technical areas that span corporate structure, financial management,
<br />cultivation, security, operations, drug diversion, patient access, as well as review of tax returns
<br />and credit reports for several hundred individual applicant team members, and score report
<br />development.
<br />As part of its contract with the City, the ICF consultant team worked with an inter-departmental
<br />stakeholder group consisting of staff from various Departments, including the City Manager’s
<br />Office, Community Development Department, Finance Department, and the City Attorney’s
<br />Office. In 2016, this team was expanded to include representatives from the Police
<br />Department.
<br />On December 15, 2014, a request for applications from parties interested in serving as San
<br />Leandro’s first dispensary operator was publicly released and 15 teams ultimately applied for
<br />the first dispensary permit. Following a robust review of the 15 applicant proposals, the
<br />following three teams (in alphabetical order) were identified as having demonstrated the
<br />optimal combination of knowledge, expertise, experience, and alignment with the
<br />Council-adopted criteria:
<br />· Blum San Leandro
<br />· Davis Street Wellness Center
<br />· Harborside San Leandro
<br />On September 8, 2015, a recommendation from the City Manager was presented to the City
<br />Council, and the City Council unanimously voted to award the first dispensary permit to
<br />Harborside San Leandro.
<br />Based upon City Council direction provided at subsequent Council meetings in late 2015 and
<br />early 2016, on June 6, 2016, the City Council adopted various amendments to the dispensary
<br />ordinance, including a provision that allows for the issuance of a second dispensary permit.
<br />In late 2015, the City Council directed the City Council Rules Committee to develop a process
<br />to award the second permit. Following extensive discussions by the Rules Committee, its
<br />recommendations were presented to the City Council on February 16, 2016. At that meeting,
<br />the Council directed staff to limit the selection process for the second dispensary permit to
<br />only the two remaining teams from the list of three business teams provided above, i.e. Blum
<br />San Leandro (hereafter referred to as “Blum SL”), and Davis Street Wellness Center
<br />(hereafter referred to as “DSWC”). As part of its actions, the Council affirmed the Rules
<br />Committee’s recommendation to allow these two teams to submit updated application
<br />materials, which would be scored using Council-adopted criteria. The criteria included Site
<br />Planning, Finance, Operations and Community Benefits.
<br />Based upon this direction, on April 28, 2016, the City Manager’s office distributed to the two
<br />teams a new Request for Applications, and invited the teams to provide responses to various
<br />questions, including questions related to their proposed financing, operations, security plans,
<br />proposed locations, and community benefits programs. Copies of those application materials
<br />are attachments to this report. With ICF’s assistance, numerical scores were applied to the
<br />applications based upon the quality of the team’s responses to the various questions.
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