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REQUEST FOR <br />COUNCIL ACTION <br />At M11115610,1111 , Is] I N;! i N� I I I I `. [ el 7 11114 <br />APRIL 21, 2015 <br />TITLE: <br />AMEND AN AGREEMENT FOR PUBLIC <br />ACCOUNTING SERVICES IN <br />CONJUNCTION WITH THE MEDICAL <br />MARIJUANA REGISTRATION <br />APPLICATION RANDOM SELECTION <br />PROCESS WITH WHITE NELSON DIEHL <br />EVANS LLP <br />(STRATEGIC PLAN NO. , 1; 5 4) <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />111:1=1i19:4101 <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 15' Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager and Clerk of the Council to execute the attached amendment to the <br />agreement with White Nelson Diehl Evans LLP (Consultant) to conduct a random selection <br />"lottery" process under the provisions of Measure BB (Ordinance No. NS 2864) for an additional <br />amount of $9,000 not to exceed a total contracted amount of $34,000, subject to non - substantive <br />changes approved by the City Manager and City Attorney. <br />DISCUSSION <br />On December 1, 2014, the City, in accordance with the voter - approved ballot measure BB, <br />entered into an agreement with the Consultant to conduct a random selection "lottery" process to <br />select locations which would be allowed to submit applications for a Regulatory Safety Permit to <br />operate a Medical Marijuana Collective within the City. <br />At the time the original Consultant Agreement was signed the estimated number of applications <br />that would be received for this process was anticipated to be approximately 200. This estimate <br />was based on information derived from other jurisdictions which had engaged in open or lottery <br />type selection processes. However, at the conclusion of the Medical Marijuana Registration <br />Application period on January 15, 2015, the City was in receipt of 632 Medical Marijuana <br />Registration Applications, over 3 times the number initially projected. This increase in <br />applications received resulted in a substantial increase in the time, staffing, and materials <br />required by the Consultant in order to continue to ensure that the selection process was <br />performed in a fair, independent and impartial manner as approved in the original agreement. <br />To adjust for the increase in applications, the original agreement was amended on January 23, <br />2015, to accommodate the expanded scope of work and clarify the role of the consultant in <br />connection with increased due diligence services, preparation, and post lottery reporting. These <br />additional measures resulting from the increase in Medical Marijuana Registration Applications <br />25D -1 <br />