Professional Services Agreement between January 10, 2022 City of Atwater and HdL Companies Page 8 of 16
Terminate this Agreement.
Section 5. INDEMNIFICATION AND PROFESSIONAL’S RESPONSIBILITIES.
5.1 General Requirement. Professional shall indemnify, defend with counsel selected by the City, and hold harmless the City and its officials, officers, employees, agents, and volunteers from and against any and all losses, liability, claims, suits, actions, damages, and causes of action arising out of any personal injury, bodily injury, loss of life, or damage to property, or any violation of any federal, state, or municipal law or ordinance, to the extent caused, in whole or in part, by the willful misconduct or negligent acts or omissions of Professional or its employees, subcontractors, or agents, by acts for which they could be held strictly liable, or by the quality or character of their work. The foregoing obligation of Professional shall not apply when (1) the injury, loss of life, damage to property, or violation of law arises wholly from the negligence or willful misconduct of the City or its officers, employees, agents, or volunteers and (2) the actions of Professional or its employees, subcontractor, or agents have contributed in no part to the injury, loss of life, damage to property, or violation of law.
It is understood that the duty of Professional to indemnify and hold harmless includes the duty to defend as set forth in Section 2778 of the California Civil Code. Acceptance by City of insurance certificates and endorsements required under this Agreement does not relieve Professional from liability under this indemnification and hold harmless clause. This indemnification and hold harmless clause shall apply to any damages or claims for damages whether or not such insurance policies shall have been determined to apply. By execution of this Agreement, Professional acknowledges and agrees to the provisions of this Section and that it is a material element of consideration.
5.2 PERS Indemnification. In the event that Professional or any employee, agent, or subcontractor of Professional providing services under this Agreement is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of City, Professional shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Professional or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.
5.3 Design Professionals. To the extent that the services under this Agreement include design professional services subject to California Civil Code Section 2782.8, as may be amended from time to time, Professional’s duty to indemnify under Sections 5.1 and 5.2 shall only be to the maximum extent permitted by California Civil Code Section 2782.8.
Section 6. STATUS OF PROFESSIONAL.
6.1 Independent Contractor. At all times during the term of this Agreement, Professional shall be an independent contractor as defined in Labor Code Section 3353, and shall not be an
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employee of City. Nothing contained in this Agreement shall be construed to be inconsistent with the foregoing relationship or status. City shall have the right to control Professional only insofar as the results of Professional's services rendered pursuant to this Agreement and assignment of personnel pursuant to Section 1.3; however, otherwise City shall not have the right to control the means by which Professional accomplishes services rendered pursuant to this Agreement. Professional shall have no power or authority by this Agreement to bind the City in any respect. All employees and agents hired or retained by Professional are employees and agents of Professional and not of the City. The City shall not be obligated in any way to pay any wage claims or other claims made against Professional by any such employees or agents, or any other person resulting from performance of this Agreement.
Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Professional and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any and all claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (PERS) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits.
Professional shall not allow any employee to become eligible for a claim for PERS benefits.
6.2 Professional Not an Agent. Except as City may specify in writing, Professional shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Professional shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever.
Section 7. LEGAL REQUIREMENTS.
7.1 Governing Law. The laws of the State of California shall govern this Agreement.
7.2 Compliance with Applicable Laws. Professional and any subcontractors shall comply with all laws and regulations applicable to the performance of the work hereunder, including but not limited to, the California Building Code, the Americans with Disabilities Act, and any copyright, patent or trademark law. Professional’s failure to comply with any law(s) or regulation(s) applicable to the performance of the work hereunder shall constitute a breach of contract.
7.3 Other Governmental Regulations. To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, Professional, and any subcontractors, shall comply with all applicable rules and regulations to which City is bound by the terms of such fiscal assistance program.
7.4 Licenses and Permits. Professional represents and warrants to City that Professional and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required to practice their respective professions. Professional represents and warrants to City that Professional and its
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employees, agents, any subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to practice their respective professions. In addition to the foregoing, Professional and any subcontractors shall obtain and maintain valid Business Licenses from City during the term of this Agreement.
7.5 Nondiscrimination and Equal Opportunity. Professional shall not discriminate, on the basis of a person’s race, religion, color, national origin, age, physical or mental handicap or disability, medical condition, marital status, sex, or sexual orientation, against any employee, applicant for employment, subcontractor, bidder for a subcontract, or participant in, recipient of, or applicant for any services or programs provided by Professional under this Agreement.
Professional shall comply with all applicable federal, state, and local laws, policies, rules, and requirements related to equal opportunity and nondiscrimination in employment, contracting, and the provision of any services that are the subject of this Agreement, including but not limited to the satisfaction of any positive obligations required of Professional thereby.
Professional shall include the provisions of this Section in any subcontract approved by the Contract Administrator or this Agreement.
Section 8. TERMINATION AND MODIFICATION.
8.1 Termination. City may cancel this Agreement at any time and without cause upon written notification to Professional.
Professional may cancel this Agreement upon thirty (30) days’ prior written notice to City and shall include in such notice the reasons for cancellation.
In the event of termination, Professional shall be entitled to compensation for services performed to the satisfaction of the City to the effective date of termination; City, however, may condition payment of such compensation upon Professional delivering to City any or all documents, photographs, computer software, video and audio tapes, and other materials provided to Professional or prepared by or for Professional or the City in connection with this Agreement.
8.2 Extension. City may, in its sole and exclusive discretion, extend the end date of this Agreement beyond that provided for in Section 1.1. Any such extension shall require a written amendment to this Agreement, as provided for herein. Professional understands and agrees that, if City grants such an extension, City shall have no obligation to provide Professional with compensation beyond the maximum amount provided for in this Agreement. Similarly, unless authorized by the Contract Administrator, City shall have no obligation to reimburse Professional for any otherwise reimbursable expenses incurred during the extension period.
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8.3 Amendments. The Parties may amend this Agreement only by a writing signed by all the Parties.
8.4 Assignment and Subcontracting. City and Professional recognize and agree that this Agreement contemplates personal performance by Professional and is based upon a determination of Professional’s unique personal competence, experience, and specialized personal knowledge. Moreover, a substantial inducement to City for entering into this Agreement was and is the professional reputation and competence of Professional.
Professional may not assign this Agreement or any interest therein without the prior written approval of the Contract Administrator. Professional shall not subcontract any portion of the performance contemplated and provided for herein, other than to the subcontractors noted in the proposal, without prior written approval of the Contract Administrator.
8.5 Survival. All obligations arising prior to the termination of this Agreement and all provisions of this Agreement allocating liability between City and Professional shall survive the termination of this Agreement.
8.6 Options upon Breach by Professional. If Professional materially breaches any of the terms of this Agreement, City’s remedies shall include, but not be limited to, the following:
8.6.1 Immediately terminate the Agreement. City shall not in any manner be liable for Professional’s actual or projected lost profits had Professional completed the services required by this Agreement;
8.6.2 Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Professional pursuant to this Agreement;
8.6.3 Retain a different professional to complete the work described in Exhibit A not finished by Professional; or
8.6.4 Charge Professional the difference between the cost to complete the work described in Exhibit A that is unfinished at the time of breach and the amount that City would have paid Professional pursuant to Section 2 if Professional had completed the work.
Section 9. Confidentiality. Professional understands and agrees that, in the performance of services under this Agreement or in the contemplation thereof, Professional may have access to confidential information or other materials exempt from public disclosure, and that such information may contain sensitive or confidential data, the disclosure of which to third parties may be damaging to City (“Confidential Information”) or any third party. Professional shall not, either during or after the Term, disclose to any third party any Confidential Information without the prior written consent of City. If City gives Professional written authorization to make any such disclosure, Professional shall do so only within the limits and to the extent of that authorization.
Section 10. KEEPING AND STATUS OF RECORDS.
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10.1 Records Created as Part of Professional’s Performance. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form, that Professional prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of the City. Professional hereby agrees to deliver those documents to the City upon termination of the Agreement. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for the City and are not necessarily suitable for any future or other use. City and Professional agree that, until final approval by City, all data, plans, specifications, reports and other documents are confidential and will not be released to third parties without prior written consent of both parties.
10.2 Professional’s Books and Records. Professional shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services or expenditures and disbursements charged to the City under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of final payment to the Professional to this Agreement.
10.3 Inspection and Audit of Records. Any records or documents that Section 10.2 of this Agreement requires Professional to maintain shall be made available for inspection, audit, and/or copying at any time during regular business hours, upon oral or written request of the City. Under California Government Code section 8546.7, if the amount of public funds expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), the Agreement shall be subject to the examination and audit of the State Auditor, at the request of the City or as part of any audit of the City, for a period of three (3) years after final payment under the Agreement.
Section 11. MISCELLANEOUS PROVISIONS.
11.1 Attorneys’ Fees and Costs. If a Party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing Party shall be entitled to reasonable attorneys’ fees and costs, in addition to any other relief to which that Party may be entitled. The court may set such fees in the same action or in a separate action brought for that purpose.
11.2 Venue. In the event that either Party brings any action against the other under this Agreement, the Parties agree that trial of such action shall be vested exclusively in the state courts of California in the County of Merced or in the United States District Court, Eastern District of California.
11.3 Severability. If a court of competent jurisdiction finds or rules that any provision of this Agreement is invalid, void, or unenforceable, the provisions of this Agreement not so adjudged shall remain in full force and effect. The invalidity in whole or in part of any
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provision of this Agreement shall not void or affect the validity of any other provision of this Agreement.
11.4 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement.
11.5 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the parties.
11.6 Use of Recycled Products. Professional shall prepare and submit all reports, written studies and other printed material on recycled paper to the extent it is available at equal or less cost than virgin paper.
11.7 Conflict of Interest. Professional may serve other clients, but none whose activities within the corporate limits of City or whose business, regardless of location, would place Professional in a “conflict of interest,” as that term is defined in the Political Reform Act, codified at California Government Code section 81000 et seq.
Professional shall not employ any City official in the work performed pursuant to this Agreement. No officer or employee of City shall have any financial interest in this Agreement that would violate California Government Code sections 1090 et seq.
Professional hereby warrants that it is not now, nor has it been in the previous 12 months, an employee, agent, appointee, or official of the City. If Professional was an employee, agent, appointee, or official of the City in the previous twelve months, Professional warrants that it did not participate in any manner in the forming of this Agreement. Professional understands that, if this Agreement is made in violation of Government Code section 1090 et seq., the entire Agreement is void and Professional will not be entitled to any compensation for services performed pursuant to this Agreement, including reimbursement of expenses, and Professional will be required to reimburse the City for any sums paid to the Professional. Professional understands that, in addition to the foregoing, it may be subject to criminal prosecution for a violation of Government Code section 1090 and, if applicable, will be disqualified from holding public office in the State of California.
11.8 Solicitation. Professional agrees not to solicit business at any meeting, focus group, or interview related to this Agreement, either orally or through any written materials.
11.9 Contract Administration. This Agreement shall be administered by Lori Waterman ("Contract Administrator"). All correspondence shall be directed to or through the Contract Administrator or his or her designee.
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11.10 Notices. Any written notice to Professional shall be sent to:
HdL Companies
120 S. States College Blvd., Ste 200
Brea, CA 92821
Email Address (for Insurance Update Requests)
[email protected]
Any written notice to City shall be sent to:
Lori Waterman, City Manager
750 Bellevue Road
Atwater, CA 95301
11.11 Professional Seal. Where applicable in the determination of the contract administrator or when required by law, the first page of a technical report, first page of design specifications, and each page of construction drawings shall be stamped/sealed and signed by the licensed professional responsible for the report/design preparation. The stamp/seal shall be in a block entitled "Seal and Signature of Registered Professional with report/design responsibility," as in the following example.
_________________________________________
Seal and Signature of Registered Professional with
report/design responsibility.
11.12 Integration. This Agreement, including the scope of work attached hereto and incorporated herein as Exhibit A, and the fee schedule attached hereto and incorporated herein as Exhibit A, represents the entire and integrated agreement between City and Professional and supersedes all prior negotiations, representations, or agreements, either written or oral.
11.13 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement.
11.14 Time is of the Essence. Time is of the essence in this Agreement for each covenant and term of a condition herein.
11.15 Authority. All Parties to this Agreement warrant and represent that they have the power and authority to enter into this Agreement and the names, titles, and capacities herein stated on behalf of any entities, persons, states, or firms represented or purported to be represented by such entities, persons, states or firms and that all former requirements
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necessary or required by the state or federal law in order to enter into the Agreement have been fully complied with.
11.16 Drafting and Ambiguities. Each Party acknowledges that it has reviewed this Agreement with its own legal counsel, and based upon the advice of that counsel, freely entered into this Agreement. Each Party has participated fully in the review and revision of this Agreement. Any rule of construction that ambiguities are to be resolved against the drafting party does not apply in interpreting this Agreement.
11.17 Headings. Headings used in this Agreement are for reference purposes only and shall not be considered in construing this Agreement.
11.18 IRS Form W-9. Professional shall complete and submit Internal Revenue Service Form W9 to the City before execution of this Agreement. The City’s Finance Director shall have authority to waive this requirement.
[signatures on the following page]
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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.
CITY PROFESSIONAL
____________________________ ______________________________ Lori Waterman, City Manager Andrew Nickerson, President ____________________________ ______________________________ Date Date
Attest:
____________________________
Lucy Armstrong, City Clerk
____________________________
Date
Approved as to Form:
_________________________________
Frank Splendorio, City Attorney
EXHIBIT A
SCOPE OF WORK AND FEE SCHEDULE
City of
Atwater
Cannabis Monitoring and Compliance Services
May 13, 2021
SUBMITTED BY
HdL Companies
120 S. State College Blvd., Ste 200
Brea, CA 92821
hdlcompanies.com
CONTACT
David McPherson
T: 714.879.5000
E: [email protected]
Proposal for Cannabis Management Services
for the City of Atwater May 13, 2021
1 TABLE OF CONTENTS
I. LETTER OF TRANSMITTAL ............................................................................ 2 II. PROPOSED SCOPE OF SERVICES ................................................................ 3 III. COST ................................................................................................................. 8 IV. OPTIONAL SERVICES......................................................................................9 V. EXPERIENCE AND RESOURCES ..................................................................12 VI. REFERENCES ...............................................................................................17
Proposal for Cannabis Management Services
for the City of Atwater May 13, 2021
2 I. LETTER OF TRANSMITTAL
May 13, 2021
Lori Waterman
City Manager
City of Atwater
750 Bellevue Road
Atwater, CA 95301
Re: Proposal for Cannabis Monitoring and Compliance Services Dear Ms. Waterman,
Thank you for the opportunity to submit this proposal for cannabis management services for the City of Atwater. The enclosed scope of services provides a comprehensive program to assist the City with monthly noticing and reporting for collection of public benefit fees, semi-annual financial audits and compliance inspections of all cannabis retailers, and additional hours of technical assistance and subject matter expertise to be used as needed by the City. This proposal also includes a number of optional services for the City’s consideration, including supplemental background checks and secured collection of cash payments by armored car.
HdL was incorporated in 1983 and has over 30 years of experience providing revenue enhancement and consulting services to local governments in California. HdL is a consortium of three companies established to maximize local government revenues by providing audit, compliance, economic development, consulting services and software products. Its audit and consulting services include sales, use and transaction taxes, property taxes, transient occupancy taxes, and a Cannabis Management Program. HdL’s systematic and coordinated approach to revenue management and economic data analysis is currently being utilized by over 500 agencies in six states. The firm currently serves 49 counties, 311 cities and 132 transactions tax districts in California.
Our knowledgeable team of professionals have more than 46 years’ combined experience in the establishment and implementation of cannabis regulatory programs including establishing landuse regulations, registration processes, operation regulations for cannabis facilities, staffing plans, cost recovery, structuring cannabis business taxes and conducting compliance and financial audits.
We look forward to the opportunity to partner with the City of Atwater in developing a strategy which meets your program needs. If you have any questions or require additional information, please feel free to contact me by email at [email protected] or David McPherson at [email protected] or by phone at 714.879.5000.
Sincerely,
Andy Nickerson
President, HdL Companies
Proposal for Cannabis Management Services
for the City of Atwater May 13, 2021
3 II. PROPOSED SCOPE OF SERVICES
In June of 2018 the City of Atwater issued an RFP for a cannabis business pilot project. The RFP originally allowed for all types of cannabis businesses, with a limit of 2 retailers, but the cap on retailers was subsequently lifted by the City Council. The City has been licensing cannabis businesses since 2019. California’s 3 cannabis licensing agencies show 7 active cannabis business licenses in the City, including 4 retailers, 1 distributor, 1 microbusiness (retail/distribution/manufacturing), and 1 manufacturer.
The City has an existing cannabis license tax (Measure A) that imposes a tax of up to 15% of the gross receipts of each business. However, cannabis business applicants are given the option of avoiding this tax by entering into a development agreement with the City that would require the business to instead provide a public benefit fee of either 5% of gross receipts or $15,000 per month, whichever is greater.
The City is now seeking the services of HdL to provide monthly noticing and reporting for collection of cannabis public benefit fees, along with annual revenue audits of each subject business to ensure that they are complying with the terms of their development agreement and are reporting and remitting the proper amount of revenue to the City. In addition, the City is requesting HdL provide 2 on-site compliance inspections per year for each business. The City has also requested that HdL provide all forms, guidelines and processes for assessing nonperformance penalties and interest on any unpaid revenues.
To address these requests, HdL has developed this proposal to provide the City with all of the following services:
Monthly noticing and reporting for remittance of cannabis public benefit fees in compliance with each development agreement, including all necessary forms, guidelines and processes for assessing non-performance penalties and interest on any unpaid non-performance penalties.
Annual revenue audits of each permitted cannabis business operating in the City. 2 on-site compliance inspections per year of each permitted cannabis business operating in the City.
20 hours of technical assistance and subject matter expertise to be used as needed at the City’s request.
Optional services including supplemental background checks of owners, managers or principals.
The scope of services below offers these services in a “menu” format to allow the City to select those services it needs. The scope also offers various combinations for audits and inspections, should the City desire to modify the requested frequency or schedule for each service.
Proposal for Cannabis Management Services
for the City of Atwater May 13, 2021
4 Objective 1: Administration of Monthly Public Benefit Collection HdL shall develop monthly self-reporting and remittance procedures that will enable cannabis businesses to report their monthly gross receipts to the City and to remit the appropriate amount of fees or taxes. The procedures shall provide a means for calculating the appropriate payment amount for each business, along with guidelines and forms for remittance to the City.
Businesses with approved development agreements in place will be required to remit a minimum payment of $15,000 per month, or 5% of gross receipts, whichever is higher. Those businesses without such development agreements will be required to remit 15% of gross receipts. Monthly reporting and remittance shall be subject to verification through twice-annual financial audits under Objective 2, below. Any over or under-reporting shall be corrected at that time and an appropriate payment adjustment shall be made, including any penalties.
HdL can fully facilitate the monthly collection of public benefit amounts for the City. We shall develop all necessary procedures, guidelines and forms, and will administer a secure portal through which businesses can file returns and submit payments. Our revenue management services will provide monthly notification to each cannabis business to inform them when payments are due.
HdL will provide a report to the City each month with the total amounts collected. HdL shall also provide the City with guidance and best-practices regarding cash handling policies, protocols and procedures.
HdL can set up the payment collection program in various ways, subject to the City’s preference and direction:
Credit card
There is a 2.9% surcharge on all payments made with credit card. The City may choose to absorb the cost of the surcharge or pass it through to the business.
E-check
There is no surcharge to the City or the business when businesses pay by e-check.
Cash
There is no surcharge for payment by cash. Under this option, the business would file the public benefit return through the secure online portal and would submit the cash payment directly to the City at a physical location. The City would notify HdL of the amount received. HdL will reconcile the payment with the return filed by the business and will provide the business with a confirmation number for reference. HdL is unable to accept cash payments directly on behalf of the City.
Armored car service
Upon request HdL can provide a quote for an armored car service to physically collect public benefit amounts from each business. The cost for this service would vary based on the frequency and number of businesses that will participate. This service is discussed in more detail under Section IV: Optional Services.
Proposal for Cannabis Management Services
for the City of Atwater May 13, 2021
5 Objective 2: Annual Revenue Audits
HdL will conduct an annual revenue audit of each cannabis business to verify the accuracy of the revenue reported and remitted to the City during the review period and will recommend a tax assessment should the audit reveal any unreported revenue. As part of the audit process, HdL will conduct a risk-based review of each business using our proprietary Cannabis Analytical Testing System (CATS™). CATS was designed by HdL to address the unique challenges associated with auditing the cannabis industry. CATS allows audit staff to cross-analyze multiple business records to identify reporting variances, discrepancies and outliers to produce the most accurate measure of gross receipts on behalf of the City.
To initiate the process, the City shall provide HdL with a list of all licensed cannabis businesses subject to audit. HdL shall work with the City to determine the appropriate review period for each business and to develop a schedule for conducting all audits. As the time for each audit approaches, HdL will prepare a notification letter informing the licensee of the impending audit and providing a list of all records and documentation the business is required to provide, including remote access to the business’s point-of-sale (POS) system where applicable. HdL recommends that the notification letter be sent by the City to communicate HdL’s authority to conduct the audit and to encourage cooperation by the business.
The full annual audit shall include:
Review Point-of-Sale (POS) system structure
Review inventory system (subject to METRC data)
Analyze and compare POS data with other available data sources, including:
o City cannabis tax returns
o State tax returns
o Federal tax returns
o METRC sales and inventory data
o CDTFA data
o Bank statements
o ATM merchant statements
o Sales receipts
o Other financial documents as available
Identify any variances or over/under reporting
Calculate any taxes or fees due to the City
Prepare and issue report
Where cannabis cultivation is taxed on a square-footage basis, the audit shall include one annual site inspection to verify compliance with maximum permitted canopy area. Square footage audits may also consider documented findings from inspections by the City, CDFA or other agencies, where available.
A business that holds multiple state cannabis licenses shall be considered a single business for audit purposes, provided that all licenses are held and operated under the
Proposal for Cannabis Management Services
for the City of Atwater May 13, 2021
6 same name, ownership, location, and a single tax ID number. Any variation may indicate separate business entities requiring separate audits. Any such determination shall be made on a case-by-case basis in consultation with the City.
HdL will provide a draft audit report to the commercial cannabis business. The business will be given an appropriate opportunity to respond or appeal the report in accordance with the City ordinance. HdL will review any documentation provided by the business to dispute the findings and will adjust the tax/fee assessment as necessary prior to issuing the final report to the City.
The cost for this service assumes a standard 12-month review period. This may be increased up to a maximum of 24 months, in accordance with the statute of limitations for tax audits. This cost also assumes reasonable cooperation from the licensee. Noncooperation by the licensee may result in additional charges at HdL’s hourly rate, or in termination of the audit and potential enforcement action by the City. Any such action or additional charges would be determined in consultation with the City.
The cost does not include assistance with administrative appeals or enforcement of audit findings, cannabis tax policy questions or guidance, or other services not directly associated with preparing the revenue audit report. Any costs associated with such additional services would be billed at HdL’s hourly rate.
Objective 3: Compliance Inspections
HdL will conduct two (2) on-site compliance inspections annually, as requested by the City, for each permitted cannabis business to determine compliance with State and/or local laws. If HdL identifies any non-compliant activities, we will provide the City with a recommended appropriate action to address the deficiency and to ensure future compliance by the permittee.
The cost for these services includes all of the following:
Notifying permittee of pending inspection
On-site inspection to ensure that each business complies with all State and local laws and regulatory protocols for all of the following:
o Inventory management
o Cash handling procedures
o Access control
o Video surveillance
o Product safety
o Alarm system maintenance and safety
o Lock standards
o Packaging and labeling
o Waste management
o Transportation documentation
o Surveillance equipment maintenance
o Occupational badges
Proposal for Cannabis Management Services
for the City of Atwater May 13, 2021
7 o Business records
o Other items as necessary to ensure compliance with laws Preparation of a draft report detailing the findings of the inspection and providing recommendations for improvement where needed. If the inspection identifies any violations of law or other non-compliance issues, then HdL will prepare a notice to comply as an included part of the report.
All travel costs associated with the inspection
All phone, email and other communications involved in preparing for, scheduling and coordinating the inspections and providing the report.
The cost for this service does not include any follow-up re-inspection or review of any supplemental documents provided to address or contest any findings of non-compliance, nor does it include any assistance with the appeal of any enforcement action by the City. Any costs associated with such additional services would be billed at HdL’s hourly rate.
Objective 4: Technical Assistance and Subject Matter Expertise HdL will provide up to 20 hours of general consulting to be utilized on an as-needed basis at the City’s request. Such assistance may include technical assistance, subject matter expertise, education, monitoring of changes to State laws and regulations, participation in conference calls, responding to staff inquires via phone and email, reviewing staff reports to the City Council, assisting with responses to inquiries from the public, or other issues yet to be determined as requested by the City.
Proposal for Cannabis Management Services
for the City of Atwater May 13, 2021
8 III. COST
The proposed services are broken down into specific line items in the cost table below. HdL’s fees are based on time, materials and travel-related expenses associated with the execution of the services. All City costs would be payable by the permittees. Any additional services requested by the City will be billed at HdL’s hourly rate. Prices are valid for 90 days from the date of this proposal.
Scope of Service Objectives
For Each Commercial Cannabis Business
Estimated
Cost
Objective 1: Administration of monthly public benefit fees1 $400 per business
per year
Objective 2: Annual revenue audits $7,500
per permittee
per year
Objective 3: Conduct two compliance inspections per year $2,550 per permittee
per year
Objective 4: Up to 20 hours @ $250/hour $5,000
Annual Cost Per Business $10,450
Estimated First-Year Cost
Administration of fees (7 businesses @ $400 each)
Revenue audits (7 businesses @ $7,500 each)
Compliance Inspections (7 businesses @ $1,250 each
Subject matter expertise
$2,800
$52,500
$17,850
$5,000
TOTAL NOT TO EXCEED $78,150
1 Credit card transactions would be subject to a 2.9% surcharge Conflicts of Interest and Non-Disclosure
HdL Companies works solely with public agencies and has no private-sector clients in the cannabis industry. All cannabis business information will be kept confidential by HdL and will not be shared internally beyond those HdL employees who are required to have access for purposes of conducting the work contemplated herein, or for administrative purposes as necessary.
Proposal for Cannabis Management Services
for the City of Atwater May 13, 2021
9 IV. Optional Services
Supplemental Background Checks
HdL is qualified to provide background checks of all owners, principals, managers and employees of cannabis businesses. Our background checks supplement the State-required Live Scan fingerprint check, which will only disclose Department of Justice (DOJ) records regarding arrests or convictions. California’s licensing agencies are only allowed to consider convictions for certain “red line” offenses such as serious or violent felonies, or certain felonies involving fraud, minors or drug trafficking, as automatic disqualifiers before granting or denying a license.
Our supplemental background checks expand upon the Live Scan information to identify other factors that local governments may wish to consider before granting discretionary business licenses or permits. These considerations may include other felony offenses, misdemeanor convictions, arrest records, civil judgements, restraining orders, the terrorist screening database, the national sex offender registry, delinquent child support payments, bankruptcies, employment and credit records, and more. Our search includes up to 5 variations on the subject’s name and will alert if additional aliases are found which might warrant further investigation.
Our comprehensive background process checks the subject’s name and social security number against over 200 million databases nationwide, including all of the following1:
7 yr. unlimited county courts and criminal records search Social Security, name and address comparison
DMV search
National Criminal Court report
National Sex offender registry
Federal criminal history
State Department of Public Safety
State Department of Corrections
Terror watch list
Bankruptcy, lien and judgments
Delinquent child support payments
Employment credit report
o Financial summary
o Personal information comparison
o Address comparison
o Employment comparison
o Credit bureau report / credit history
o Public records search
1 Renewals and background checks for employees include a lesser level of investigation.
Proposal for Cannabis Management Services
for the City of Atwater May 13, 2021
10 Any felony convictions that would be automatic disqualifiers pursuant to B&P 26057 (Violent and Serious Felony Convictions) must be confirmed through the Live Scan process. The degree to which other records may be used to inform the approval or renewal of a local business license or permit is subject to local ordinance requirements.
HdL offers separate rates for owners, principals or managers of cannabis businesses and for regular employees or line staff. We also offer a lower rate for annual renewals after the initial background check has been completed. Our rates include an HdL-designed employee identification badge with the city or county logo which meets all State regulatory requirements.
All costs for background checks would be directly recoverable from each business.
Prices valid as of the date of this proposal and subject to change without notice.
HdL provides an online portal for applicants to submit their application and authorization for background checks and all necessary documentation. Applicants provide their payment directly to HdL through the portal, so there is no cost to the City.
Armored Car Pickup of Cash Payments
HdL has developed an innovative partnership with HardCar Distribution to offer a seamless solution for collection of cash tax or fee payments from permitted cannabis businesses.
HardCar provides for secured pickup and transportation of cash from cannabis businesses using armored cars manned by trained military veterans. The cash can then be delivered directly to the City or deposited into an insured financial institution on the City’s behalf. HardCar recently became the first company in California to legally transport cannabis cash into the Federal Reserve.
Working with HardCar, HdL can provide for the secured collection of cash cannabis tax or fee payments from licensed businesses at a frequency as determined by the City. The cash payments will be transported and deposited in the Federal Reserve on behalf of the City.
Payment amounts for each permittee will be reported to HdL for administration and tracking.
The cost for this service would vary based on the collection frequency and the number of participating businesses. HdL can provide a quote for this service upon request from the City.
Background Checks Owner,
principal or
manager
Employee or
line staff
Initial background check $300 $100
Annual renewal $100 $75
Proposal for Cannabis Management Services
for the City of Atwater May 13, 2021
11 Cannabis Revenue Audits and Regulatory Compliance Inspections HdL’s Cannabis Management Team has over 52 years combined experience conducting over 18,000 cannabis compliance inspections, revenue audits and investigations in California, Colorado and Nevada. HdL can provide annual compliance reviews and cannabis revenue audits at the following rates for each cannabis business permitted in the City.
Combined cost per business:
A. Conduct one (1) revenue audit annually for each permit at a rate of $7,000.
B. Conduct one (1) compliance review annually for each permit at a rate of $1,275.
C. Conduct one (1) revenue audit and one (1) compliance review annually for each permit at a rate of $8,275.
D. Conduct one (1) revenue audit and two (2) compliance reviews annually for each permit at a rate of $9,550.
E. Conduct one (1) revenue audit and three (3) compliance reviews annually for each permit at a rate of $10,825.
F. Conduct one (1) revenue audit and four (4) compliance reviews annually for each permit at a rate of $12,100.
Hourly Rates for HdL Staff
The prices in this proposal are based on the hourly rates for HdL staff as shown in the chart below. Any additional services requested by the client that are not specifically described in this proposal would be billed at the standard rate for the assigned staff person.
HdL Staff Person Title Hourly Rate
David McPherson Compliance Director $250
Matt Eaton Deputy Compliance Director $250
Ajay Kolluri Deputy Audit Director $250
Mark Lovelace Senior Policy Advisor $250
Kami Miller Senior Compliance Inspector $195
David Ross Senior Compliance Inspector $195
Michelle Shaw Compliance Inspector $195
Jeff Burris Compliance Inspector $195
Elizabeth Eumurian Senior Auditor $195
Alfredo Marquez Senior Auditor $195
Odette Mikhail Auditor $195
Tao Lu Auditor $195
Mark Brogan Auditor $195
All rates current as of the date of this proposal
Proposal for Cannabis Management Services
for the City of Atwater May 13, 2021
12 IV. EXPERIENCE AND RESOURCES
Company Profile
Founded in 1983, HdL is a consortium of three companies established to maximize local government revenues by providing audit, compliance, economic development, consulting services and software products. Its audit and consulting services include sales, use and transaction taxes, property taxes, transient occupancy taxes, and a Cannabis Management Program. The firm also provides a variety of enterprise software processing tools for business licensing, code enforcement, animal control, building permits and tracking/billing of false alarms. HdL’s systematic and coordinated approach to revenue management and economic data analysis is currently being utilized by over 500 agencies in six states. The firm currently serves 49 counties, 311 cities and 132 transactions tax districts in California.
HdL’s key staff has extensive experience serving local government and many have previously held positions in city management, finance, planning, economic development or revenue collection. HdL is a Corporate Partner of the League of California Cities and California State Association of Counties and works extensively with the County Auditor’s Association of California, California Society of Municipal Finance Officers (CSMFO) and California Municipal Revenue and Tax Association (CMRTA) on anticipation and planning of programs to strengthen local government revenues.
This close understanding of local government needs coupled with extensive databases and advanced methodology provides for the most relevant, productive and responsive revenue recovery; forecasting; and economic services available.
Our team of professionals has over 52 years of direct experience establishing and implementing cannabis regulatory and taxation programs, including establishing land-use regulations, permit processes, staffing plans, and cost recovery fees; structuring cannabis business tax fees; regulatory compliance; financial audits; and law enforcement training. Our team has conducted over 18,000 cannabis compliance inspections and investigations in California, Colorado and Nevada.
Key Personnel
David McPherson, Compliance Director
David McPherson works with local agencies to prepare them to mitigate regulatory issues surrounding Proposition 64 and SB 94. Prior to joining HdL, David served 28 years in local government for the County of Orange and the cities of Newport Beach, San Jose and Oakland. David’s experience as a law enforcement officer, compliance auditor, and tax administrator has provided him a wealth of experience that makes him uniquely qualified to manage HdL’s Cannabis Management Program. While working for the City of Oakland, he became the first Tax Administrator in the country to successfully tax, regulate and audit medical marijuana businesses. David has over 10 years of experience working with cannabis regulatory programs.
Proposal for Cannabis Management Services
for the City of Atwater May 13, 2021
13 David is one of the state’s most recognized experts in cannabis regulatory policies, compliance implementation and tax policies. His unique knowledge in horticulture, processing and dispensary operations while working for the City of Oakland has made him one of the pioneers in creating a Cannabis Management Program. He uses his experience to assist local and state agencies in developing cannabis policies for regulation, compliance, auditing and economic development. He worked closely with the League of Cities on the development of the Medical Cannabis Regulation and Safety Act (MCRSA) and helped shape SB 94, the Medicinal Adult-Use Cannabis Regulation and Safety Act (MAUCRSA).
David provides technical support on cannabis-related matters to the League of Cities, the Police Chief’s Association, Rural County Representatives of California and the California State Association of Counties. In addition, David is working collaboratively with the Department of Consumers Affairs, Department of Food & Agriculture, Department of Health Services and the State Board of Equalization on the implementation of best practices for regulating the cannabis industry for local agencies.
David received his Bachelor’s Degree in History from California State University, Fullerton and his Master’s Degree in Public Administration from California State University, Long Beach. While at Long Beach, he was named “Future Urban Administrator of the Year”.
Matt Eaton, Deputy Compliance Director
Matt Eaton is the Deputy Compliance Director at HdL and plays a critical role in implementing the Cannabis Compliance Program for local agencies. Prior to joining the firm, he was a progressive law enforcement professional with 30 years’ experience conducting criminal/regulatory investigations, and corporate/individual background investigations.
While working as a Supervisory Investigator at the Colorado Department of Revenue in the Marijuana Enforcement Division (MED), Matt managed criminal investigators and civilian staff in the Denver Metro and Longmont field offices. During his six-year tenure at the MED, he conducted approximately 10,000 criminal investigations and compliance reviews, including regulatory and financial investigations. He is a subject matter expert on track and trace systems and understands the complexity of reviewing data to ensure businesses are in compliance with state and local regulations. Matt was responsible for planning, developing and implementing report and field inspection protocols for the agency. He also played an instrumental role in recommending changes to current regulations and identifying essential language for new legislation in Colorado. Matt is well known for his ability to maintain working relationships with cannabis industry leaders and external stakeholders in resolving issues.
Matt received his Bachelor of Science Degree from Biola University and maintained Police Officer Service Training (POST) certification for over 30 years in California and Colorado. He has also served as an adjunct instructor teaching law enforcement principle related to criminology, correctional processes, procedural law, interviews, interrogations and criminal evidence at AIMS Community College in Greeley, Colorado.
Proposal for Cannabis Management Services
for the City of Atwater May 13, 2021
14 Ajay Kolluri, Deputy Director of Policy and Audits
Ajay Kolluri is the Deputy Director of Audits and Operations for HdL’s Cannabis Division. Ajay is responsible for overseeing the cannabis audit team and the daily operations of the division, which includes special projects such as community outreach, surveys, grant solicitation, revenue analysis, cost recovery fee studies, contracts, budgeting, and marketing. Ajay previously served as Program Manager for the Office of Cannabis Oversight (OCO) at City of Long Beach. Working within the City Manager’s Office, Ajay was responsible for the licensing, regulation and enforcement of all commercial cannabis activity in the City, with one of the largest legal cannabis markets in the state. During his tenure with the OCO, Ajay oversaw the issuance over 200 cannabis business licenses, generating over $10 million in annual revenue for the City. Ajay has experience in all aspects of cannabis oversight, including public health and education, planning and zoning, building inspections, enforcement, social equity, fee development, economic analysis and revenue projections.
Prior to overseeing the OCO, Ajay worked in public finance, serving as Budget Analyst for the Department of Financial Management in the City of Long Beach. Ajay holds a Bachelor’s degree in business economics from the University of California, Santa Barbara, and a Master’s degree in public policy from the University of Michigan.
Mark Lovelace, Senior Policy Advisor
Mark Lovelace has 16 years of broad experience in public policy, community engagement and advocacy and is recognized as a leader in advancing the statewide discussion of medical and recreational cannabis as a policy issue in California.
Mark served on the Humboldt County Board of Supervisors from 2009 through 2016 where he was instrumental in developing a comprehensive approach to regulating cannabis, including a voter-approved tax on commercial cultivation and an innovative track and trace pilot program. Mark established and co-chaired the Medical Marijuana Working Group for the California State Association of Counties (CSAC) and helped draft CSAC’s legislative platform for cannabis issues. Mark pioneered the first regional summit on cannabis issues in 2015 which helped guide the development of SB 643 and AB 243, two components of the Medical Cannabis Regulation and Safety Act (MCRSA).
Mark has worked extensively with public agencies and statewide associations on cannabis issues, including CSAC, Rural County Representatives of California, the Association of California Water Agencies, the North Coast Resource Partnership, California Department of Fish and Wildlife, the State Water Board, the North Coast Regional Water Board, the Bureau of Cannabis Control, State legislators, and others. He has led numerous presentations, workshops and panel discussions on cannabis issues and has been a sought-after speaker on the topic for government agencies, community organizations and industry groups.
Mark received his Bachelor of Science degree in Industrial Design from San Jose State University. Prior to his time on the Board, he worked for many years as a respected advocate on land use, planning, development and environmental issues.
Proposal for Cannabis Management Services
for the City of Atwater May 13, 2021
15 Kami Miller, Senior Compliance Inspector
Kami Miller is a Senior Compliance Inspector at HdL whose primary role is to ensure cannabis compliance and identify the risk assessment in the supply chain process of each permitted business. Prior to joining the firm, she served three years as a Marijuana Compliance Manager for the Department of Public Behavior and Health (DPBH) for the State of Nevada. During this time Kami played a key role in Nevada’s implementation of its Medical Marijuana Program in which she was responsible for statewide monitoring of medical marijuana facilities that included cultivation, production, testing labs and retail stores.
During her tenure at the DPBH, Kami managed compliance auditors and support staff in the Las Vegas office. She conducted approximately 1,000 compliance and financial inspections for which she developed the inspection protocols documentation to create comprehensive reports. In addition, her experience with various cannabis track and trace systems allowed her to develop industry supply chain practices for the Department of Taxation.
Kami received her Bachelor of Business Administration in E-Commerce and Supply Chain Management from Tennessee State University.
Michelle Shaw, Compliance Inspector
Michelle is a Cannabis Compliance Inspector at HdL and is tasked with conducting onsite inspections, examinations and other actions to monitor compliance with established standards for local licensed cannabis businesses. Prior to joining HdL, she was a Compliance Specialist Officer at a large, multinational bank where she managed, validated and oversaw the effectiveness and accuracy of numerous compliance issues within the consumer retail space. Throughout her eight years of experience at the bank, she performed onsite assessments of affiliate businesses to determine compliance/non-compliance of their processes and procedures pursuant to bank standards and state regulations.
A graduate of Cypress College, Michelle holds a Foundations of Banking Risk certificate from the Global Association of Risk Professionals and a paralegal certificate from the Southern California College of Business and Law.
Alfredo Marquez, Senior Auditor
Alfredo Marquez is a Senior Auditor at HdL. His primary role is to conduct cannabis tax audits.
Alfredo previously worked for a publicly traded corporation as a Senior Internal Auditor where he performed risk assessments of new business acquisitions, financial and Sarbanes & Oxley audits. He also conducted compliance audits in the areas of commercial and government contracts, export and import activities, and general information technology controls. In these roles he worked with employees at various levels within the organization across North America, Latin America, Europe, and Asia in order to meet organizational objectives. Alfredo has recently done work for the Cities of Cotati, Cloverdale, Desert Hot Springs, Perris, Port Hueneme, and Vallejo. He earned his Bachelor’s degree in Accounting from the University of La Verne.
Proposal for Cannabis Management Services
for the City of Atwater May 13, 2021
16 Elizabeth Eumurian, Senior Auditor
Elizabeth Eumurian is a Senior Auditor at HdL. Her primary role is to conduct financial audits, evaluate cannabis applications and conduct background checks. As part of the audit program, she will be conducting and preparing analytical information through the CATS™ program to prepare Tax Analytical Remittance Reports (TARR) summaries to evaluate under reporting or anomalies in the remittance of tax payments to local jurisdictions.
Elizabeth previously worked as a senior auditor in the entertainment industry. In this role, she executed testing procedures for targeted audit programs, analyzed findings and prepared audit and compliance reports. She also has experience working for a large financial institution analyzing data for reporting anomalies and performing internal audits. Elizabeth has recently done work for Blythe, California City, Coachella, Cotati, Desert Hot Springs, Long Beach, Mammoth Lakes, Moreno Valley, Perris, San Bernardino, and Vallejo.
Elizabeth earned her Bachelor of Arts degree in History from California State University and holds a certificate in CannaBusiness from Oaksterdam University.
Odette Mikhail, Auditor
Odette Mikhail is an Auditor at HdL. Her primary role is to conduct financial audits. Odette previously worked as a senior auditor at public accounting firms. In this role, she executed testing procedures for audit and review engagements, identified accounting issues, reviewed internal controls, and prepared financial reports and statements. Odette earned her Bachelor of Science degree in Accounting and Business Administration from Ain Shams University in Cairo, Egypt.
Tao Lu, Auditor
Tao Lu works as an Auditor for HdL’s Cannabis Management Team. Tao has two and a half years’ experience as an accountant with an emphasis in information technology and food manufacturing industries. He also has public audit work experience at RSM China.
Tao was born and raised in China. He earned a Bachelor’s Degree in Accounting and Finance from Syracuse University in New York before relocating to Southern California with his family.
Mark Brogan, Auditor
Mark Brogan works as an Auditor for HdL’s Cannabis Management Team. Mark previously worked for the City of San Jose as a Financial Analyst and later as a Supervisor in the Revenue Management Division of the City’s Department of Finance. Mark also worked in the City’s Housing Department prior to his time with the Department of Finance.
Mark holds a Bachelor’s Degree in Business Administration from San Jose State University, with a minor in Economics. Mark is also an accomplished triathlete and has successfully completed numerous marathons and Iron Man competitions.
Proposal for Cannabis Management Services
for the City of Atwater May 13, 2021
17 V. REFERENCES
City of Modesto
Steve Mitchell
Acting Planning Manager
Phone: 209.577.5287
Email: [email protected]
City of Cotati
Damien O’Bid
City Manager
Phone: 707.843.0298
Email: [email protected]
City of Port Hueneme
Tony Stewart
Director of Community Development
Phone: 805.986.6520
Email: [email protected]
City of Desert Hot Springs
Geoffrey Buchheim
Finance Director
Phone: 760.329.6411 Ext 227
Email: [email protected]
City of Maywood
Jennifer Vasquez
City Manager
Phone: 323.562.5721
Email: [email protected]
CITY COUNCIL
AGENDA REPORT
MEETING DATE: January 10, 2022
TO: Mayor and City Council
FROM: Greg Thompson, Community Development Director
PREPARED BY: Christina Thurman, Executive Assistant
SUBJECT: Approving a Master On-Call Provider list with various consultants for California Government Relations and
Lobbying Services (Public Works/Community Development
Director Thompson)
RECOMMENDED COUNCIL ACTION
Approval of the establishment of a Master On-Call Provider list with various consultants for California Government Relations and Lobbying Services I. BACKGROUND/ANALYSIS:
BACKGROUND:
The City interacts with numerous government agencies and public utilities, including but not limited to the California Department of Parks and Recreation, the California State Water Resources Control Board, the California Department of Transportation, the California Department of Housing and Community Development, the Department of Justice, and the County of Merced. The City is interested in contracting with several highly qualified firms that can engage decision-makers on legislative, quasi-legislative, and policy-related actions. The services referenced in this staff report are necessary to comply with demands for services, special projects, and compliance with state and federal laws and requirements.
On November 17, 2021, staff released a Request for Qualifications (RFQ’s) for oncall California Government Relations and Lobbying Services. The purpose of the request was to seek relationships and contracts for services of government relations and lobbying firms that could serve as a conduit for communication with elected officials and other agencies. As a registered lobbyist with the Secretary of State, the consultant(s) will be bound by the Political Reform Act and the regulations of the Fair Political Practices Commission, including compliance with lobbying reporting requirements by filing disclosure reports on behalf of the City.
On December 3, 2021, a committee comprised of City staff, reviewed the Statements of Qualifications received under the published request using a qualifications-based
CITY COUNCIL
Paul Creighton, Mayor
Danny Ambriz Tyler Button
John Cale Brian Raymond
Agenda Report - Page 2
selection process in determining which consultants to contract with on an “On-Call” basis.
By establishing a Master On-Call Provider list to be utilized as needed, the process for securing specialized services is eliminated. This alone can provide an immediate and significant benefit for the City as it will save time and resources. As tasks are identified, City Staff will review the on-call provider list and select the most qualified Firm to perform the task.
At this time, we are not requesting to establish a budget, as that will be determined at a later date through a Specific Task Order Professional Services Agreement. As specific Task Orders are identified, the item will be presented to Council at that time to establish the budget and approval.
ANALYSIS:
The establishment of this list will allow the City Manager to request the services of the retained Consultants on an individual project basis as the need arises. The City will solicit a proposal for a specific scope of service from the retained consultants.
Proposals will be evaluated based on scope, understanding and schedule. The successful proposal will be given a Specific Task Order executed by the Consultant and the City under the approved "On-Call" Professional Services Agreement once the cost fee has been negotiated and taken to Council for approval. Should the City Manager fail to successfully negotiate an acceptable maximum fee for services for a specific project with the Consultant involved, the City reserves the right to seek and retain said services through other means, other consultants, or contractors.
The selected consultants will not limit the City’s ability to seek other proposals for professional services that, at the City’s sole discretion, are outside the scope, ability or availability of the currently retained consultants. The purpose of the establishment of the on-call list is for the convenience of the City for projects that are routine and general in nature. For specialized projects, the City will likely conduct a project specific RFQ.
The successful consultants will assist the City in the following proposed scope of services, but with it would not be limited to the following:
Work with City Council, the City Manager, and key staff to discuss goals, objectives, opportunities, and priorities.
Support a positive relationship with the Governor’s office, State Legislature, State Water Resources Control Board, the California Department of Parks and Recreation, the California Department of Transportation, and/or other agencies. Identify and monitor legislation and state regulatory processes, including pertinent administrative, legislative and regulatory matters that may impact the City.
Provide legislative and regulatory lobbying, as needed Engage key officials (executive, legislative and local government) and stakeholders to support the City’s objectives to secure permits, grants,
Agenda Report - Page 3
incentives, and favorable laws and regulations.
Pursue legislative, regulatory and/or policy directives to help address issues with transportation, utility, homelessness, drug and alcohol rehabilitation, and sober living groups.
Pursue greater public funding for the City.
Coordinate meetings with State Legislators and agency department leaders to provide the City the opportunity to meet face-to-face with key decision-makers on pertinent City issues
Assist with communications and messaging
Lobby for the City’s position on legislation and regulatory matters of interest.
II. FISCAL IMPACTS:
Prior to the execution of a Specific Task Order under the "On-Call" Professional Services Agreement, staff will return to Council for approval of sufficient budget appropriation. At that time, the Finance Department will verify sufficient appropriation in the approved Budget to fund said specific Task Order .This item has been reviewed by the Finance Department..
III. LEGAL REVIEW:
This item has been reviewed by the City Attorney’s Office.
IV. EXISTING POLICY:
This item is consistent with goal number one (1) of the City of Atwater's 2020-2025 Strategic Plan: to ensure the City's continued financial stability.
V. ALTERNATIVES:
N/A
VI. INTERDEPARTMENTAL COORDINATION:
N/A
VII. PUBLIC PARTICIPATION:
The public will have an opportunity to provide comments on this item prior to City Council action.
VIII. ENVIRONMENTAL REVIEW:
Agenda Report - Page 4
This item is not a “project” under the California Environmental Quality Act (CEQA) as professional services agreements do not cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to Public Resources Code section 21065.
IX. STEPS FOLLOWING APPROVAL:
Upon approval by City Council, the Professional Services Agreements (EXHIBIT "A") will be executed and processed per City policies and procedures.
Submitted by:
Greg Thompson, Public Works/Community Development Director Approved by:
Lori Waterman, City Manager
Attachments: