PREPARED BY: KIERON SLAUGHTER DATE OF MEETING: 9/2/2025
SUBJECT:
TITLE
CONSIDER ADOPTING RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN PABLO APPROVING AND ESTABLISHING A RANKED ELIGIBILITY LIST PURSUANT TO THE CITY'S REQUEST FOR QUALIFICATIONS (RFQ) SOLICITING UP TO THREE (3) APPLICATIONS FOR OPERATOR PERMITS AUTHORIZING THE RETAIL SALE OF CANNABIS IN SAN PABLO
CEQA: This proposed action is not a project as defined by CEQA.
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
BODY
COMPLIANCE STATEMENTS
FY 2025-2027 Council Priority Workplan Compliance Statements:
Approving a ranked eligibility list is the next step in accomplishing a major policy goal contained in the FY 2025-27 City Council Priority Workplan of Focus on Economic Development and Fiscal Diversification, Priority #405 - Explore and Sustain New Revenue Enhancements to the City's General Fund, and Priority #410 - Explore and Research Cannabis Commercial Uses and Impacts, effective April 7, 2025.
CEQA Compliance Statement
CEQA: This proposed action is not a project as defined by CEQA. CEQA Guidelines Section 15378(b)(5) states that "project" does not include organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
BACKGROUND
On March 3, 2025, the City Council adopted Ordinance 2025-001, amending the San Pablo
Municipal Code (Title 17 - Zoning Ordinance) Chapter 17.32, Section 17.32.030; Chapter 17.34, Section 17.34.030; Chapter 17.36, Section 17.36.030; Chapter 17.62, Section 17.62.130; and Chapter 17.70, Section 17.79.040 to revise existing regulations pertaining to the personal cultivation of cannabis and to establish land use standards applicable to certain permitted commercial cannabis businesses in the City of San Pablo.
On April 21, 2025, the City Council adopted Resolution 2025-145, approving and authorizing the issuance of a Request for Qualifications (RFQ) for cannabis operator permits for retail sales and adopting procedures governing appeals, if any, of decisions related to the approval and establishment of the eligibility list in connection with the RFQ process.
As stated in the April 21, 2025, agenda report, in response to adopted policies already contained in the FY 2025-27 City Council Priority Workplan, City staff explored commercial cannabis uses that could enhance general fund revenues following the recent passage of Measure M - Commercial Cannabis Business License Tax by 72.65% via local voters in November 2024.
Pursuant to Ordinance 2025-001, the San Pablo Municipal Code now allows for up to a maximum of three (3) retail cannabis businesses to obtain approval to operate within the City of San Pablo. The adopted legal and regulatory framework under Ordinance 2025-001 includes multiple layers of review for prospective retail cannabis businesses including a Request for Qualifications (RFQ), issued by the City to recruit and evaluate potential operators, an Operator Permit application process, and a Conditional Use Permit application process. The RFQ process has been administered by the City's Economic Development & Housing Division, with the goal of soliciting, evaluating, and ranking potential operators against the selection criteria set forth in the RFQ, further ensuring that potential operators can meet the requirements of Ordinance 2025-001.
Request For Qualifications (RFQ) Release and Solicitation Process
On April 22, 2025, the City released the RFQ for Cannabis Operator Permit for Retail Sales and received six (6) proposals prior to the RFQ due date of June 26, 2025.
A multi-departmental review panel consisting of five (5) City staff members was convened to independently evaluate and rank the RFQ submittals. Those submittals were scored based upon the following criteria and maximum point values:
1. Business Experience & Qualifications 20 points
2. Location Suitability & Compliance 20 points
3. Business & Operating Plan 10 points
4. Community Benefits 10 points
5. Financial Stability & Resources 20 points
6. Proposal Clarity & Implementation 20 points
7. Local Hire/Ownership Plans (Optional but incentivized) 20 points
Following the panel's evaluation, the list below reflects staff's ranked eligibility list of the eligible applicants who it recommends be permitted to move forward in the process to apply for a Cannabis Operator Permit from the Zoning Administrator. Pursuant to the requirements of Ordinance 2025-001, only the top three (3) ranked applicants are invited to proceed with a formal application.
RANK
APPLICANT
SCORE TOTAL
1.
Embarc
111.8
2.
Stiiizy
107.8
3.
Off The Charts - San Pablo Dam Road
103.6
4.
Off The Charts - Rumrill Blvd
102
5.
Rumrill Development Company
94.8
6.
7 Stars
90.6
Scores reflect an average of five (5) panelists scoring in six categories and one bonus category.
A detailed breakdown of the scoring results for each of the six (6) categories in the RFQ selection criteria is set forth immediately below:
Business Experience & Qualifications (Max 20)
Location Suitability & Compliance (Max 20)
Business & Operating Plan
(Max 10)
Community Benefits (Max 10)
Financial Stability & Resources (Max 20)
Proposal Clarity & implementation (Max 20)
Local Hire/Ownership Plans [Optional but incentivized]
(Max 20)
Score
7 Stars
15.4
16
8.2
6.6
16.4
15.4
12.6
90.6
Embarc
18.8
19.4|10 10|9.2
18
18.8
18.6
111.8
Off The Charts (Rumrill)
19
14.8|10 10|8.4
17.8
17.6
15.4
102
Off The Charts (SPDR)
19
17|10 10|8.4
17.4
17.4
15.4
103.6
Rumrill Dev. Co.
14.4
19
6.6
7.6
12.8
14.6
19.8
94.8
Stiiizy
19.6
18.8
9.2
8.8
18.6
18.4
14.4
107.8
The Zoning Administrator separately evaluates and issues any Operator Permits, with decisions appealable to the City Manager. Once applicants have secured an Operator Permit, they must then also obtain a Conditional Use Permit, which requires approval from the Planning Commission at a public hearing. Planning Commission decisions are appealable to City Council. Once an operator has successfully obtained both the required Operator Permit and Conditional Use Permits, along with all other necessary state or local permits, approvals, and licenses, that operator will be authorized to begin operations in the City.
FISCAL IMPACT
The City of San Pablo estimates up to $2.2 million in general fund revenue, based on the HdL Fiscal Analysis on Commercial Cannabis Industry (Issued May 3, 2023), and the presented 10-year Multi-Year Financial Forecast model developed and presented to the City Council by PFM Financial Consultants on December 13, 2023, via Resolution 2023-167.
ATTACHMENTS:
Att A - Resolution
Att B - Request for Qualifications (RFQ) Cannabis Operator Permits Eligibility List
Appeal Procedures