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CITY OF SAN LUIS OBISPO
PROFESSIONAL SERVICES AGREEMENT
This agreement (Agreement) is made and entered into in the City of San Luis Obispo on ____________,
by and between the City of San Luis Obispo, a municipal corporation and charter city (City) and Booth
Management Consulting hereinafter referred to as Consultant (collectively referred to as the
“Parties”).
WITNESSETH:
WHEREAS, the City desires to utilize Consultant to perform services necessary for the
administration of the City’s Cannabis Program, specifically in the oversight of cannabis operator
permits. (the “Services”); and
WHEREAS the Consultant will provide the following services: conduct one annual cannabis
tax audit of each licensed cannabis business; and
WHEREAS, Consultant is qualified to perform this type of Service and has submitted a written
proposal to do so, which has been accepted by City; and
WHEREAS, the aforementioned services of Consultant are necessary for the continued
operation of the City’s Cannabis Program; and
WHEREAS, the operator permit fees and application fees adopted by the City Council have
captured the total costs involved to ensure the City is 100% reimbursed for the staff time,
consultants fees, and other expenses.
NOW, THEREFORE, in consideration of their mutual promises, obligations, and covenants
hereinafter contained, the Parties hereto agree as follows:
1.TERM. The term of this Agreement shall be from the date this Agreement is made and entered, as
first written above, for two years. The parties may mutually agree in writing to extend the
term of this agreement for an additional three years, subject to the same terms and
conditions as set forth herein.
2.INCORPORATION BY REFERENCE. City Notice Requesting Proposals / Qualifications for
Cannabis Consulting Services and Consultant's proposal are hereby incorporated in and made
a part of this Agreement, attached as Exhibit A. The City’s insurance requirements are hereby
incorporated in and made part of this Agreement, attached as Exhibit B. To the extent that there
are any conflicts between the Consultant’s fees and scope of work and the City’s terms and
conditions as stated herein, the City’s terms and conditions shall prevail unless specifically
agreed otherwise in writing signed by both Parties.
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3. CITY’S OBLIGATIONS. For providing services as specified in this Agreement, City will pay
and Consultant shall receive therefor compensation set forth in Exhibit A.
4. CONSULTANT’S OBLIGATIONS. For and in consideration of the payments and agreements
herein before mentioned to be made and performed by City, Consultant agrees with City to
do everything required by this Agreement including that work as set forth in Exhibit A.
5. PAYMENT OF TAXES. The contract prices shall include full compensation for all taxes that
Consultant is required to pay.
6. LICENSES AND PERMITS. At all times during the term of this Agreement, Consultant shall
have in full force and effect, all licenses required of it by law for the performance of the
Services described in this Agreement. The Consultant shall procure all permits and licenses,
pay all charges and fees, and give all notices necessary under this Agreement.
7. COMPLIANCE WITH LAW. The Consultant shall keep itself informed of and shall observe
and comply with all applicable State and Federal laws and regulations, and county and City
of San Luis Obispo ordinances, regulations and adopted codes, which in any manner affect
those employed by Consultant or in any way affect the performance of the Services pursuant
to this Agreement. The City, and its officers and employees, shall not be liable at law or in
equity occasioned by failure of the Consultant to comply with this Section. Failure to comply
with local ordinances may result in monetary fines and cancellation of this Agreement.
8. COMPLIANCE WITH INDUSTRY STANDARD. Consultant shall provide services acceptable to
City in strict conformance with the Agreement. Consultant shall also provide in accordance with
the standards customarily called for under this Agreement using the degree of care and skill
ordinarily exercised by reputable providers of such services. Where approval by the City, the City
Manager, the Mayor, or other representative of City is required, it is understood to be general
approval only and does not relieve Consultant of responsibility for complying with all applicable
laws, codes, policies, regulations, and good business practices.
9. INDEPENDENT CONSULTANT.
a. Consultant is and shall at all times remain as to the City a wholly independent
Consultant. The personnel performing the Services under this Agreement on behalf
of Consultant shall at all times be under Consultant's exclusive direction and control.
Neither City nor any of its officers, employees, or agents shall have control over the
conduct of Consultant or any of Consultant's officers, employees, or agents, except
as set forth in this Agreement. Consultant shall not at any time or in any manner
represent that it or any of its officers, employees, or agents are in any manner
officers, employees, or agents of the City. Consultant shall not incur or have the
power to incur any debt, obligation, or liability whatsoever against City, or bind City
in any manner.
b. No employee benefits shall be available to Consultant in connection with the
performance of this Agreement. Except for the fees paid to Consultant as provided in
the Agreement, City shall not pay salaries, wages, or other compensation to
Consultant for performing the Services hereunder for City. City shall not be liable for
compensation or indemnification to Consultant for injury or sickness arising out of
performing services hereunder.
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10. PRESERVATION OF CITY PROPERTY. The Consultant shall provide and install suitable
safeguards, approved by the City, to protect City property from injury or damage. If City
property is injured or damaged resulting from Consultant’s operations, it shall be replaced
or restored at Consultant’s expense. The City’s facilities shall be replaced or restored to a
condition as good as when the Consultant began the work.
11. IMMIGRATION ACT OF 1986. The Consultant warrants on behalf of itself and all
subconsultant engaged for the performance of the Services that only persons authorized to
work in the United States pursuant to the Immigration Reform and Control Act of 1986 and
other applicable laws shall be employed in the performance of the Services hereunder.
12. NON-DISCRIMINATION. In the performance of the Services, the Consultant agrees that it
will not engage in, nor permit such subconsultant as it may employ, to engage in
discrimination in employment of persons because of age, race, color, sex, national origin or
ancestry, sexual orientation, or religion of such persons.
13. PAYMENT TERMS. The City’s payment terms are 30 days from the receipt of an original
invoice and acceptance by the City of the materials, supplies, equipment, or services
provided by the Consultant (Net 30). Consultant will submit invoices monthly for actual
services performed. Invoices shall be submitted on or about the first business day of each
month, or as soon thereafter as practical, for services provided in the previous month. Final
June invoices shall be received no later than the 5th business day of July to meet City fiscal
year-end deadlines. Payment shall be made within thirty (30) days of receipt of each invoice
as to all non-disputed fees. If the City disputes any of Consultant's fees it shall give written
notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set
forth on the invoice. Any final payment under this Agreement shall be made within forty-five
(45) days of receipt of an invoice, therefore.
14. INSPECTION. City shall at all times have the right to inspect the work being done under this
Agreement and Consultant shall furnish City with every reasonable opportunity and
assistance required for City to ascertain that the Services of the Consultant are being
performed in accordance with the requirements and intentions of this Agreement. All work
done, and all materials furnished, if any, shall be subject to the City’s inspection and
approval. The inspection of such work shall not relieve Consultant of any of its obligations
under the Agreement.
15. RELEASE OF INFORMATION.
a. All information gained by Consultant in performance of this Agreement shall be
considered confidential and shall not be released by Consultant without City's prior
written authorization. Consultant, its officers, employees, agents, or subconsultant,
shall not, without written authorization from the City Manager or unless requested by
the City Attorney, voluntarily provide declarations, letters of support, testimony at
depositions, response to interrogatories, or other information concerning the work
performed under this Agreement. Response to a subpoena or court order shall not be
considered "voluntary" provided Consultant gives City notice of such court order or
subpoena.
b. Consultant shall promptly notify City should Consultant, its officers, employees,
agents, or subconsultant be served with any summons, complaint, subpoena, notice
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of deposition, request for documents, interrogatories, request for admissions, or
other discovery request (“Discovery”), court order, or subpoena from any person or
party regarding this Agreement, unless the City is a party to any lawsuit, arbitration,
or administrative proceeding connected to such Discovery, or unless Consultant is
prohibited by law from informing the City of such Discovery. City retains the right, but
has no obligation, to represent Consultant and/or be present at any deposition,
hearing, or similar proceeding as allowed by law. Unless City is a party to the lawsuit,
arbitration, or administrative proceeding and is averse to Consultant in such
proceeding, Consultant agrees to cooperate fully with City and to provide the
opportunity to review any response to Discovery requests provided by Consultant.
However, City's right to review any such response does not imply or mean the right
by City to control, direct, or rewrite said response.
16. OWNERSHIP OF DOCUMENTS.
a. Consultant shall maintain complete and accurate records with respect to sales,
costs, expenses, receipts, and other such information required by City that relate to
the performance of the Services under this Agreement. Consultant shall maintain
adequate records of services provided in sufficient detail to permit an evaluation of
services. All such records shall be maintained in accordance with generally
accepted accounting principles and shall be clearly identified and readily
accessible. Consultant shall provide free access to the representatives of City or its
designees at reasonable times to such books and records; shall give City the right to
examine and audit said books and records; shall permit City to make transcripts or
copies therefrom as necessary; and shall allow inspection of all work, data,
documents, proceedings, and activities related to this Agreement. Such records,
together with supporting documents, shall be maintained for a period of three (3)
years after receipt of final payment.
b. Upon completion of, or in the event of termination or suspension of this Agreement,
all original documents, designs, drawings, maps, models, computer files, surveys,
notes, and other documents prepared in the course of providing the Services under
this Agreement shall become the sole property of the City and may be used, reused,
or otherwise disposed of by the City without the permission of the Consultant. With
respect to computer files, Consultant shall make available to the City, at the
Consultant's office and upon reasonable written request by the City, the necessary
computer software and hardware for purposes of accessing, compiling, transferring,
copying and/or printing computer files. Consultant hereby grants to City all right, title,
and interest, including any copyright, in and to the documents, designs, drawings,
maps, models, computer files, surveys, notes, and other documents prepared by
Consultant in the course of providing the Services under this Agreement.
17. INDEMNIFICATION AND DEFENSE. To the fullest extent permitted by law (including, but not
limited to California Civil Code Sections 2782 and 2782.8), Consultant shall indemnify,
defend, and hold harmless the City, and its elected officials, officers, employees, volunteers,
and agents (“City Indemnitees”), from and against any and all causes of action, claims,
liabilities, obligations, judgments, or damages, including reasonable legal counsels’ fees
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and costs of litigation (“claims”), arising out of the Consultant’s performance or
Consultant’s failure to perform its obligations under this Agreement or out of the operations
conducted by Consultant, including the City’s passive negligence, except for such loss or
damage arising from the sole or active negligence or willful misconduct of the City. In the
event the City Indemnitees are made a party to any action, lawsuit, or other adversarial
proceeding arising from Consultant’s performance of this Agreement, the Consultant shall
provide a defense to the City Indemnitees or at the City’s option, reimburse the City
Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of
such claims.
18. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE.
a. The City may at any time, for any reason, with or without cause, suspend or terminate this
Agreement, or any portion hereof, by serving upon the Consultant at least thirty (30) days
prior written notice. Upon receipt of said notice, the Consultant shall immediately cease
all work under this Agreement, unless the notice provides otherwise. If the City suspends
or terminates a portion of this Agreement such suspension or termination shall not make
void or invalidate the remainder of this Agreement.
b. In the event this Agreement is terminated pursuant to this Section, the City shall pay to
Consultant the actual value of the work performed up to the time of termination, provided
that the work performed is of value to the City. Upon termination of the Agreement
pursuant to this Section, the Consultant will submit an invoice to the City pursuant to
Section 14.
19. TERMINATION FOR CAUSE. If, during the term of the Agreement, the City determines the
Consultant is not faithfully abiding by any term or condition contained herein, the City may
notify the Consultant in writing of such defect or failure to perform. This notice must give the
Consultant a ten (10) calendar day notice of time thereafter in which to perform said work or
cure the deficiency.
a. If the Consultant has not performed the work or cured the deficiency within the ten
(10) days specified in the notice, such shall constitute a breach of the Agreement and
the City may terminate the Agreement immediately by written notice to the
Consultant to said effect (“Notice of Termination”). Thereafter, neither party shall
have any further duties, obligations, responsibilities, or rights under the Agreement
except to comply with the obligations upon termination.
b. In said event, the Consultant shall be entitled to the reasonable value of its services
performed from the beginning date in which the breach occurs up to the day it
received the City’s Notice of Termination, minus any offset from such payment
representing the City’s damages from such breach. “Reasonable value” includes
fees or charges for goods or services as of the last milestone or task satisfactorily
delivered or completed by the Consultant as may be set forth in the Agreement
payment schedule; compensation for any other work or services performed or
provided by the Consultant shall be based solely on the City’s assessment of the
value of the work-in-progress in completing the overall scope.
c. The City reserves the right to delay such payment until completion or confirmed
abandonment of the project, as may be determined in the City’s sole discretion, so
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as to permit a full and complete accounting of costs. In no event, however, shall the
Consultant be entitled to receive in excess of the not to exceed amount shown in this
Agreement.
20. INSURANCE. Consultant shall maintain prior to the beginning of and for the duration of this
Agreement insurance coverage as specified in Exhibit B attached to and made part of this
Agreement.
21. BUSINESS LICENSE & TAX. The Consultant must have a valid City of San Luis Obispo
business license & tax certificate before execution of the contract. Additional
information regarding the City’s business tax program may be obtained by calling
(805) 781-7134.
22. SAFETY PROVISIONS. The Consultant shall conform to the rules and regulations
pertaining to safety established by OSHA and the California Division of Industrial Safety.
23. PUBLIC AND EMPLOYEE SAFETY. Whenever the Consultant operations create a
condition hazardous to the public or City employees, it shall, at its expense and without
cost to the City, furnish, erect and maintain such fences, temporary railings, barricades,
lights, signs and other devices and take such other protective measures as are necessary
to prevent accidents or damage or injury to the public and employees.
24. UNDUE INFLUENCE. Consultant declares and warrants that no undue influence or pressure was
used against or in concert with any officer or employee of the City in connection with the award,
terms or implementation of this Agreement, including any method of coercion, confidential
financial arrangement, or financial inducement. No officer or employee of the City has or will
receive compensation, directly or indirectly, from Consultant, or from any officer, employee or
agent of Consultant, in connection with the award of this Agreement or any work to be conducted
as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement
entitling the City to any and all remedies at law or in equity.
25. ASSIGNMENT. The Consultant shall not assign, transfer, convey or otherwise dispose of the
contract, or its right, title or interest, or its power to execute such a contract to any individual
or business entity of any kind without the previous written consent of the City.
a. As required above, before retaining or contracting with any subconsultant for any services
under this Agreement, City must consent to such assignment of performance in writing.
For City to evaluate such proposed assignment, Consultant shall provide City with the
identity of the proposed subconsultant, a copy of the proposed written contract between
Consultant and such subconsultant, which shall include an indemnity provision similar
to the one provided herein and identifying City as an indemnified party, or an incorporation
of the indemnity provision provided herein, and proof that such proposed subconsultant
carries insurance at least equal to that required by this Agreement or obtain a written
waiver from City for such insurance.
26. AMENDMENT. Any amendment, modification, or variation from the terms of this Agreement shall
be in writing and shall be effective only upon approval by the appropriate review authority
according to the City’s Financial Management Manual. Consultant shall not be compensated for
any services rendered in connection with its performance of this Agreement which are in addition
to those set forth herein, unless such additional services are authorized by the City in advance and
in writing.
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27. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated
herein by reference, shall constitute the complete Agreement between the Parties hereto. No oral
agreement, understanding, or representation not reduced to writing and specifically incorporated
herein shall be of any force or effect, nor shall any such oral Agreement, understanding, or
representation be binding upon the Parties hereto. Each party is entering into this Agreement
based solely upon the representations set forth herein and upon each party's own independent
investigation of any and all facts such party deems material.
28. NOTICE. All notices to the Parties hereto under this Agreement shall be in writing and shall be sent
either by (i) personal service, (ii) delivery by a reputable document delivery service, such as, but
not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii)
United States Mail, certified, postage prepaid, return receipt requested. All such notices shall be
delivered to the addressee or addressed as set forth below:
To City: Community Development Department
City of San Luis Obispo
Attention: Ivana Gomez (igomez@slocity.org)
To Consultant: Booth Management Consulting
Robin L. Booth, CPA, CFE
robinb@bmc-llc.net
29. GOVERNING LAW. Any action arising out of this Agreement shall be brought in the Superior
Court of San Luis Obispo County, California, regardless of where else venue may lie. The
validity, interpretation, construction and performance of this Agreement, and all acts and
transactions pursuant hereto and the rights and obligations of the Parties hereto shall be
governed, construed and interpreted in accordance with the laws of the State of California,
without giving effect to principles of conflicts of law.
30. AUTHORITY TO EXECUTE AGREEMENT. Both City and Consultant do covenant that each
individual executing this Agreement on behalf of each party is a person duly authorized and
empowered to execute Agreements for such party.
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IN WITNESS WHEREOF, the Parties hereto have caused this instrument to be executed the day and year
first above written.
CITY CONSULTANT
_______________________________
By:
_______________________________
By
APPROVED AS TO FORM:
_______________________________
By: J. Christine Dietrick, City Attorney
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CITY OF SAN LUIS OBISPO, CA
QUALIFIED CPA OR AUDIT FIRM TO
P ERFORM TAX AUDITS ON CANNABIS
BUSINESSES - 01
D UE: JULY 25, 2025 AT 2:00 PM EST
Submitted to:
BidNet
Department of Finance
City of San Luis Obispo
Via BidNet
Submitted by:
7320 Lee Deforest Drive, Suite 103
Columbia, MD 21046
Reply to:
Robin L. Booth, CPA, CFE Principal
Telephone: 410-309-4929, ext. 2010
Email: robinb@bmc-llc.net
Fax: 667-200-5972
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City of San Luis Obispo, CA
T az Audits on Cannabis Businesses
RFP Cannabis-01
July 25, 2025
ii
Use or disclosure of proposal data is subject to the restriction on the title page of this proposal.
TABLE OF CONTENTS
Proposal
1. SUBMITTAL FORMS ............................................................................................... 3
1.1 Proposal Submittal Summary ........................................................................... 3
1.2 Certificate of Insurance ................................................................................... 4
1.3 References ..................................................................................................... 7
2. QUALIFICATIONS .................................................................................................. 9
2.1 Firm Experience .............................................................................................. 9
2.1.1 Understanding of Approach ............................................................ 11
2.1.2 Lessons Learned .............................................................................. 12
2.1.3 Relevant Experience ......................................................................... 13
2.2 Personnel Qualifications................................................................................ 14
2.2.1 Organizational Chart ........................................................................ 14
2.2.2 Team Qualifications & Experience ..................................................... 17
2.2.3 Resumes ......................................................................................... 18
2.3 Standard Hourly Billable Rates ....................................................................... 24
2.4 Statement of Past Contract Disqualifications .................................................. 25
3. WORK PROGRAM ................................................................................................ 26
3.1 Management Approach ................................................................................. 26
3.1.1 Post Award/Contract Kick-Off Meeting .............................................. 26
3.1.2 Project Tools & Systems ................................................................... 26
3.1.3 Conflict of Interest ........................................................................... 28
3.1.4 Communication and Escalation ........................................................ 29
3.2 Approach to Performing Tax Audits ................................................................. 31
3.2.1 Overall Audit Process ....................................................................... 32
3.2.2 Pre-Audit Planning ........................................................................... 33
3.2.3 Planning .......................................................................................... 34
3.2.4 Interviews and Walkthroughs ............................................................ 36
3.2.5 Reporting ......................................................................................... 36
3.2.6 Quality Control ................................................................................ 37
3.3 Schedule & Estimated Hours by Task and Sub-Task ......................................... 40
APPENDIX A – PEER REVIEW ................................................................................... 42
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T az Audits on Cannabis Businesses
RFP Cannabis-01
July 25, 2025
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1. SUBMITTAL FORMS
1.1 Proposal Submittal Summary
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1.2 Certificate of Insurance
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1.3 References
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2. QUALIFICATIONS
2.1 Firm Experience
We at Booth Management Consulting, LLC (BMC) are thrilled to present our proposal to de-
liver top-notch Cannabis Revenue Audit Services to the wonderful City of San Luis Obispo,
CA (“the City”). Our team possesses the essential technical skills, extensive knowledge, val-
uable experience, and the tools and methodologies to effectively handle cannabis-related
revenue audits. Rest assured; our services will strictly adhere to the high standards estab-
lished by the American Institute of Certified Public Accountants (AICPA). We are genuinely
excited about the opportunity to work with the City and contribute to its success.
BMC is a CPA firm based in Maryland, offering extensive top-notch services, including audit-
ing, attestation, contract and grants management, accounting, human resources, and ad-
ministrative support for organizations. Our company proudly holds certifications from the
U.S. Small Business Administration as an Economically Disadvantaged Woman Owned
Small Business (EDWOSB) and a Disadvantaged Business Enterprise (DBE), along with be-
ing recognized as a Small, Woman, and Minority Business Enterprise (MBE) by the Maryland
Department of Transportation. Our remarkable team comprises highly qualified profession-
als, including Certified Public Accountants (CPAs), Certified Fraud Examiners (CFEs), Certi-
fied Internal Auditors (CIAs), and other experienced auditors and accountants across multi-
ple states. From Georgia to Washington State, our dedicated team is committed to
delivering excellence and expertise. Below is our company profile.
Table 1. Company Profile.
Company Name Booth Management Consulting, LLC
Headquarter Address 7230 Lee Deforest Drive, Suite 103, Columbia, MD 21046
Demographics Regional Firm
Year Founded November 4, 1998, 25 years, five months
Corporate Structure Limited Liability Company – S Corp
Web Page URL http://www.bmc-llc.net
SAM UEI K5DVUN4SFMF4
DUNS 0695271419
Federal EIN#
SIC 8721 Accounting, Auditing, and Bookkeeping
Authorized Point of Contact
Name
Robin Booth, CPA, CFE Principal
Point of Contact Phone Number 410-309-4929, ext. 2010; Cell Phone; 410-984-7458
Fax No 667-200-5972
Point of Contact Email Address robinb@bmc-llc.net
Avg. Number of employees over
last three years Employees
152 Full-time Employees (3-year average)
Office Locations Maryland, Washington State, and Texas
Line of Credit Facility $10 million
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Insurances General Liability, Professional Liability, Errors and Omis-
sions, Cyber Security, Fidelity Bond, Workmen’s Compen-
sation, Umbrella
FY 2022 Annual Revenue $12 million
Licensed CPA Firm Maryland Licensed CPA Firm #40609, expires 4/12/2026
Peer Reviewed Firm Last Peer Review, August 20, 2022, “Passed” with no defi-
ciencies. The report is available on request.
We do not have a local office in the State of California; however, we have full-time employ-
ees in California.
BMC Employees: All of the proposed staff are currently full-time employees of BMC.
Statement of Availability: Our firm will be immediately available to start and complete the
project within the requested timeframe.
Assurances: BMC will be aware of, comply with, and enforce all applicable Federal, State,
and local laws, regulations, and ordinances as required for this scope of work and a poten-
tial contract.
Errors and Omissions of Deliverables: BMC will create a Quality Control Plan (QCP) to en-
sure timely and high-quality deliverables. Our framework includes quality planning, assur-
ance, and control, with a pyramid approach allowing different levels of QC depending on the
deliverable and staffing. Team members are held accountable through cross-functional
quality control checks, peer reviews, and internal reviews. A specific Quality Control plan
will be developed upon contract award.
We have the following competitive advantages:
• 25+ years of experience in compliance and financial auditing for cash-based busi-
nesses, including AICPA Statements of Attestation Engagements and Statements on
Consulting Engagements.
• Accounting, tax, and auditing knowledge of the cannabis industry and businesses oper-
ating in the industry.
• An agile technology-based approach to project management, including web-based pro-
ject management, timekeeping, contract management, and HRIS systems that transfer
seamlessly to a telework environment and ensure the completion of deliverables by
contract due dates.
• Excellent Contractor Performance Ratings (CPARS) on Federal contracts for auditing
and attestation engagements. Excellent references on the State and local municipality
levels.
• Extremely price competitive because our rates are not burdened with subrecipient han-
dling costs since we will perform all work as a prime contractor.
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• One-stop shop for communications as the prime contractor with no subrecipients pro-
posed.
2.1.1 Understanding of Approach
The City is seeking a contractor to perform annual revenue audits of 13 cannabis busi-
nesses operating in the City. In this section, we detail our understanding of each of the
tasks required in this solicitation.
When embarking on a revenue audit, it is important to start by understanding how the
industry operates and the diverse range of products it offers. Take the marijuana indus-
try, for instance – it does not just consist of cannabis but also includes dried flowers,
hashish, hash oil, tinctures, infusions, edibles, and paraphernalia. Equally crucial is
grasping the various licenses that govern revenue generation for businesses. In Califor-
nia, for instance, different types of cannabis licenses are issued by the state.
• Growing cannabis (cultivation)
• Transporting cannabis (distribution)
• Making cannabis products (manufacturing)
• Testing cannabis or cannabis products (testing laboratory)
• Selling cannabis (retail)
This holistic understanding sets the stage for a thorough and insightful revenue audit.
Section 3.2 discusses the revenue audit procedures that will be designed specifically
for the City’s 13 cannabis licenses, four of which are retail. For instance, for a cannabis
cultivation operator, we will conduct a site visit to verify the grow facility's square footage,
including the area devoted to marijuana cultivation.
In conducting a revenue audit for a marijuana business, the methods employed share
similarities with those for auditing other cash-intensive businesses. While some mari-
juana businesses have robust internal controls to ensure accurate transaction records,
others may lack proper bookkeeping and record-keeping, and many operate without
bank accounts. Notably, the nature of marijuana businesses often involves a reliance
on cash transactions, with some customers opting for cash payments to safeguard their
privacy. Additionally, in numerous states, known marijuana businesses face difficulty
in opening bank accounts due to stringent bank regulations. Consequently, these busi-
nesses assert the essentiality of dealing in cash. Despite these challenges, it is im-
portant to recognize the resilience and innovation within the marijuana industry as it
navigates these unique circumstances.
Cash-intensive businesses raise concerns because funds used for purchases are often
not deposited into bank accounts. Unlike checks and credit card receipts, cash trans-
actions are not recorded until the funds are used. This makes it easy for the taxpayer,
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RFP Cannabis-01
July 25, 2025
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business partner, or shareholder to withdraw cash for personal use. Most medical cen-
ters deposit enough funds for rental and other expenses into their bank accounts.
Transactions for business expenses paid with cash are easier to identify than those
used for personal expenses.
As a general rule, investigating an unreported gross receipts case for a medical mariju-
ana business can be challenging due to the high volume of cash transactions. While
each case is unique, it is important to gather information to determine if gross receipts
have been under-reported.
We will conduct revenue audits by leveraging the procedures in the Internal Revenue
Service’s Participant Guide for the Cannabis industry, hereinafter referenced as the IRS
Guide. The IRS guide will be customized for the City’s revenue audits.
2.1.2 Lessons Learned
The Canadian Public Accountancy Board (CPAB) inspected 42 cannabis businesses from
2019 to 2020 and found significant issues in 22 of those cases. These findings highlight the
need for prompt action to enhance audit quality and safeguard capital markets. Of those
findings, we identified one that is related to revenue audits and have identified the proposed
steps to address it.
Finding: Understanding the entity and its environment
The auditor’s understanding of the company and its environment, including internal controls
and its legal environment, is essential to the auditors’ planning and executing of the audit.
CPAB identified inconsistencies in the auditor’s risk assessment and audit procedures
performed related to compliance with laws, regulations, and fraud.
BMC Proposed Mitigating Actions
We will perform the following procedures to understand the entity and its control
environment:
1. The business will be required to complete a comprehensive Internal Control Question-
naire (ICQ) to provide detailed information about its control environment.
2. We will interview the personnel included in the ICQ.
3. BMC audit staff assigned will be required to complete extensive training on the CA can-
nabis statutes and regulations before beginning the audit.
Our risk assessment will incorporate risk factors associated with cash-intensive
businesses, highly regulated industries, and high risk of fraud.
In the table below, we include lessons learned from performing similar tasks for other
contracts.
Table 2. Lessons Learned
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Lessons Learned Mitigation Action
Issues with receipt of large files and
Personal Identification (PII) data
We will provide businesses with a username and password
to access Microsoft Teams and upload requested
documents. The City will also have access to the same
documents. However, personally identifiable information
(PII) will not be uploaded to this site. We will obtain such
information during onsite fieldwork, by mail, or through
encrypted files sent by email.
Businesses are not aware of our firm
performing these services
The City can include us as recipients of the notification
letters sent to businesses, in which we will be introduced as
contracted auditors. These letters will direct businesses to
respond to our requests. We can supply a template for this
notification letter. After that, we will send a follow-up
message requesting a meeting with the business to discuss
the details of the audit or inspection, such as its nature,
timing, and scope.
The business is non-responsive to
requests for participation and information
in the audit or inspection process.
BMC will send at least two follow-up requests, copying the
City. We will ask the City to contact them if there is still no
response. If those efforts are unsuccessful, we will work with
the City to determine the resolution process.
Untimely communications on the project
status
We suggest holding a monthly conference call between the
City and our team to review the status of tasks, discuss any
challenges or project impediments, and review milestones
and critical tasks and deadlines. Meeting notes will be
prepared and sent after each meeting.
2.1.3 Relevant Experience
Even though the cannabis industry is still emerging, we have a unique advantage in of-
fering revenue audit services as requested in this solicitation. Our most pertinent expe-
rience lies in working with cash-intensive businesses, implementing new substance
control programs and licenses, direct involvement with cannabis businesses, and au-
diting highly regulated industries.
Since 2023, we have direct experience in the cannabis industry as a subcontractor to
Launch Industries, Inc. on contracts with the Washington State Department of Com-
merce (WA) and a newly awarded contract with the City of Sacramento, CA. We provide
grants management and technical assistance to 39 Social Equity Applicants (SEAs) who
are retail operators. Each of these applicants has received approximately $200,000 in
grant funds to open retail locations. We have worked closely with each of these busi-
nesses, offering the following technical assistance.
Accounting Human
Resources Business
Structure Financial
Modeling Raising
Capital
Inventory
Purchasing &
Management
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RFP Cannabis-01
July 25, 2025
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We collaborated with the WA SEAs to create internal control policies and procedures
for cash, inventory, employees, and other related processes. Our team offered tailored
support in establishing and overseeing their inventory and accounting systems, creating
forecasts and projections, and identifying banks and financial partners to secure capi-
tal.
For 20+ years, we have provided accounting services to cash-intensive businesses, in-
cluding restaurants and retail businesses, where underreporting of income, fraud, and
money laundering are key risks. For 6 years, Robin Booth, BMC’s founder, and Principal,
owned and operated a restaurant in Maryland with her husband. She managed the day-
to-day operations and understood the risks associated with a cash-intensive business.
She will apply this experience as the Principal working with the audit team,
We also have experience monitoring and auditing controlled substance businesses and
organizations, specifically the recipients of opioid funds received by States as a result of
litigation filed against companies involved in the manufacturing, distribution, and dispens-
ing of opioid pharmaceuticals. In 2020, we assisted the Mississippi Department of Employ-
ment Services (MDES) in the development of the WIOA National Dislocated Worker
Grant/WIA National Emergency Grants (NDWGs) Opioid grant program. This program aimed
to provide employment, training, and career services to individuals affected by opioid abuse
or living in communities that were disproportionately impacted by opioids. We audited the
grant recipients after awarding the grants to ensure they were using the funds as per the
grant requirements. Our monitoring process included reviewing the files of eligible partici-
pants to verify the impact of opioid usage. The program has been successful, and MDES has
awarded three rounds of grants under this program.
2.2 Personnel Qualifications
2.2.1 Organizational Chart
P roject Leadership: At the head of the team is Robin Booth, CPA, CFE, CIA who serves as
the Principal.
Mrs. Booth has 25+ years of experience in auditing, compliance, and
technical assistance to businesses throughout the U.S.
Role on this Project. Robin will be the principal of this project. She
will be the primary point of contact with the City regarding contract
issues, project execution, subcontractor management, risk
management, quality control, and deliverables. She will be
supported as follows:
• Manager, Accounting Services Division – Tashae Swan, CPA manages BMC’s Ac-
counting Service Division (ASD). She has 10+ years of relevant experience She will
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T az Audits on Cannabis Businesses
RFP Cannabis-01
July 25, 2025
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work closely with Mrs. Booth. Ms. Swan is performing technical assistance services
on the WA Commerce contract. They will lead the team of auditors performing the
services.
The organizational chart below details our proposed team consisting of the following:
The Project Management Team (hereinafter referred to as the “PM Team”) represents
full-time BMC non-billable employees, including G&A, at proposed fully burdened rates
that will support the contract.
The Project Team consists of a highly qualified, multi-disciplined team led by our firm’s
experienced management team.
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RFP Cannabis-01
July 25, 2025
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CITY OF SAN LUIS OBISPO
PROJECT TEAM
Project Management Team
(PM Team)
Kadedra Walters
Contract Administrator
Tracia Young
Senior HR Manager
Project Team
Robin Booth, CPA,CFE, CIA
Principal
Tashae Swan, CPA
Manager
Dashawn Herring
Auditor
Figure 3: Project
Organizational Chart
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July 25, 2025
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2.2.2 Team Qualifications & Experience
The table below reflects the labor categories, the number of BMC personnel available for this
contract per labor category, a description of their duties, and education and experience require-
ments. This corresponds to the Organizational Chart. Resumes are in Section 2.3 below.
Table 4: Team Staffing Matrix
Name
Labor Category
Relevant
Contracts Education Experience
Robin Booth,
CPA, CFE, CIA
Principal
All Contracts CPA, CFE, CIA
BS in Accounting
30+ years of auditing experience
22+ years of small business
auditing experience
25+ years with BMC
Tashae Swan,
CPA
Manager
All Contracts CPA
BS in Accounting
8+ years of auditing experience,
4 years with BMC
Dashawn
Herring
Auditor
All Contracts Masters in accounting
BS in
Accounting,
CPA candidate
1 year of audit and accounting
experience with BMC
Below is a summary of the roles and responsibilities for each engagement team position.
Table 5: Team Roles and Responsibilities Summary
Labor Category Description
Principal POC for contract issues, review audit work plans, checklists, and other planning doc-
uments. Review, approve, and monitor the Quality Control Plan. Review work pa-
pers, drafts, and final reports. Participate in status, and other meetings as re-
quested. Work with the audit team to prepare and conduct training, if applicable.
Closely monitor Problem Resolution Log ensuring timely resolutions of issues. Ad-
dress engagement performance issues. Monitor the COI mitigation. The Principal,
who is a licensed CPA will review, sign, and submit the final report/analysis.
Manager Develop audit work program. Review draft and final reports. Review work papers. Par-
ticipate in entrance, exit, status, and other meetings as requested. Review and sub-
mit monthly status reports. Monitor the project management system to ensure the
completion of critical tasks and deadlines.
Auditor Report directly to the Manager to carry out the assigned audit. Prepare lead sheets,
conduct substantive testing, and other less complex procedures. Perform tests of
controls, risk assessments, and other more complex procedures.
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RFP Cannabis-01
July 25, 2025
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2.2.3 Resumes
2.2.3.1 Principal – Robin Booth, CPA, CFE
Robin Booth, CPA, CFE, CIA – Principal
Education BS Accounting, Bowie State University
Certifications/
Professional
Credentials
• Certified Public Accountant (CPA)
• Certified Fraud Examiner (CFE)
• AICPA COSO Certified Internal Auditor (CIA)
• Certified QuickBooks Pro Advisor
• Certified eFAACT Government Accounting System Advisor
Experience • 1998 – Present: Booth Management Consulting, LLC, Managing Princi-
pal
• 30+ years of Federal Grants management, monitoring, technical assis-
tance, and training experience.
• 100+ Training and speaking engagements as a Subject Matter Expert for
2 CFR Part 200, Uniform Guidance
Descriptions of
Duties and Major
Projects
Booth Management Consulting, LLC, Managing Principal
NeighborWorks America
U.S. Department of Housing and Urban Development
U.S. Agency for International Development
Defense Logistics Agency, Defense Contract Audit Agency
U.S. Department of Transportation, Federal Transit Administration and Federal
Aviation Administration
City of Columbus, OH
As the Principal working with Managers on various contracts, Ms. Booth
performs the following:
• Serve as the primary POC for multiple clients.
• Develop the project schedules, audit and project plans, work pro-
grams, Quality Control Plans, and other planning documents.
• Provide technical assistance and subject matter expertise to teams for
the 2 CFR Part 200, GAGAS, SSAE, and various other Federal programs.
• Responsible for developing and facilitating training on complex and
emerging topics for clients and nationally as a recognized subject mat-
ter expert.
• Review selected work papers for findings and recommendations.
• Review draft and final reports.
• Assist clients in negotiating reports and findings.
• Participates in status meetings and entrance and exit conferences, as
requested.
• Responsible for risk management and problem resolution.
Docusign Envelope ID: 8B3FD8AF-D555-4642-A608-29F9D9AEE674
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T az Audits on Cannabis Businesses
RFP Cannabis-01
July 25, 2025
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Robin Booth, CPA, CFE, CIA – Principal
Awards &
Recognition
• 2023 Bowie State University Hall of Fame
• 2022 Maryland Association of Certified Public Accountants Women to
Watch Honoree
• 2022 Enterprising Woman Award
• 2021 Women Presidents’ Organization (WPO) Achievement Award
• 2019 Joe Manns Black Wall Street Award, Maryland Aviation Administra-
tion
• 2004 Nominee, U.S. Small Business Administration, Small Business of
the Year
• 2004 U.S. Small Business Administration, Maryland Accountant of the
Year
• 2002 NAACP Small Business of the Year Award
• 2003 Emerging Business, Maryland Department of Business & Eco-
nomic Development
Professional
Organizations
• American Institute of Certified Public Accountants (AICPA)
• Maryland Association of Certified Public Accountants (MACPA)
• National Association of Black Accountants (NABA)
• National Grants Management Association (NGMA)
• Association of Certified Fraud Examiners (ACFE)
• Better Business Bureau (Corporate)
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T az Audits on Cannabis Businesses
RFP Cannabis-01
July 25, 2025
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2.2.3.2 Manager – Tashae Swan, CPA
Tashae Swan, CPA - Accounting Manager
Education Bachelor of Science Degree / Major: Accounting, Bowie State University Bowie,
MD, 2008-2012
Training/
Systems/
Certifications
• Certified Public Accountant, Maryland
• Proficient in Microsoft Office; specialized knowledge in ERP software
• eFAACT
• QuickBooks
• Lawson
Relevant
Experience
Manager, Booth Management Consulting (BMC), Columbia, MD,
2021 — Present
Related Contracts in References
• Subcontractor to Launch Industries, LLC on a contract with Washing-
ton State Department of Commerce, Cannabis Technical Assistance
• Nevada Division of Mortgage Lending
Ms. Swan is the Accounting Manager of the Accounting and Support Services
Division of BMC. She executes approved audit and project plans, Quality
Control Plans, and work programs. She assigns and oversees the completion of
tasks, ensuring they are completed by the contractual due dates.
Ms. Swan also performs the following tasks:
• Primary POC for clients when performing the work.
• Review workpapers for findings and questioned costs.
• Perform technical assistance and training.
• Prepare examination and audit report templates to be completed by the
Team.
• Ensures all contract deliverables are met.
• Discuss any preliminary findings with the client.
• Participates in entrance and exit conferences.
• Participates in onsite visits for large and more complex engagements.
• Develops and updates the work programs for multiple Federal grant pro-
grams.
• Develop risk factors and a risk assessment tool completed during pre-
award and updated post-aware to determine the nature, timing, and ex-
tent of monitoring activities.
• Develop and/or update desk review processes for low-risk engage-
ments.
• Provide technical guidance as required.
• Ensures effective communication with the entire team.
For NeighborWorks America and the City of Columbus, Ms. Swan performs
the following tasks.
• Conducts assigned audit/review engagements successfully from begin-
ning to end.
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RFP Cannabis-01
July 25, 2025
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Tashae Swan, CPA - Accounting Manager
• Identifies and communicates issues raised, offering recommended so-
lutions relevant to business and risk.
• Supervises staff assigned to engagements, providing guidance and over-
all review of deliverables.
• Develops audit programs and testing procedures relevant to risk and test
objectives.
• Obtains and reviews evidence, ensuring audit/review conclusions are
well-documented.
• Ensures adherence at all times to all applicable departments and pro-
fessional standards.
• Communicates assigned tasks to the engagement team clearly and con-
cisely, ensuring high-quality, accurate, and efficient results.
• Organizes personal efforts with those assigned Auditors/Auditors to be
risk-based, productive, and efficient at all times.
• Prepare a comprehensive project report for submission to the Client.
Woodstock Job Corps Center – MTC, Finance/Administration Director
2016 - 2021
• Reviewed and approved team member financial reports for accuracy
before submission
• Drafted reports consisting of year-end audits, monthly financials, quar-
terly reporting, and Department of Labor cost reporting.
• Independently implemented and outlined company standard operating
procedures for Woodstock Job Corps Center - MTC
• Ensured compliance and maintained stability and consistency with De-
partment of Labor/Management and Training Corporation standards.
• Monitored and regulated expenditures to ensure budgetary compliance.
Professional
Organizations
• Maryland Association of Certified Public Accountants (MACPA)
• National Association of Black Accountants (NABA)
• National Grants Management Association (NGMA)
• Association of Certified Fraud Examiners (ACFE)
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July 25, 2025
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2.2.3.3 Auditor – Dashawn Herring
DaShawn Herring – Accounting Clerk
Education Morgan State University, Baltimore, MD
Master’s Degree in Accounting
2025
Marist College, Poughkeepsie, NY
Bachelor’s Degree in Accounting
2021
Skills Systems
Proficient in Windows, Microsoft Office Suite, MS Word,
PowerPoint, Excel, Teams
QuickBooks
Drake
Tableau
Salesforce
SAP
Get Paid
Ariba
Coupa
Intacct
Training
Generally Accepted Accounting Principles (GAAP)
Financial Analysis
General Ledger
Reconciliations
A/P and A/R
Fund Accounting
Payroll
Relevant Experi-
ence
Booth Management Consulting, LLC
Accountant 2024 - Present
Related Contracts in References
• Subcontractor to Launch Industries, LLC on a contract with Washing-
ton State Department of Commerce, Cannabis Technical Assistance
• Nevada Division of Mortgage Lending
Tasks Include:
• Responsible for the accuracy of data in financial systems. Enter, evalu-
ate, and monitor data frequently to ensure accuracy and report finan-
cial data and/or concerns.
• Perform audit testing, reconciliations, and comparative analysis.
• Process requests for reimbursements from subrecipients for multiple
clients. This includes reviewing the original budget and grant agree-
ment for approved expenditures, reviewing the submitted budget vs.
actual reports to ensure submitted expenditure was approved on the
original budget, reviewing the submitted supporting documentation to
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July 25, 2025
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verify that costs are allowable, reasonable, and necessary consistent
with the Uniform Guidance.
• Responsible for the processing, set-up, request, and changes for ac-
counts payable and payroll
• Ensure timely and accurate handling of transactions, including but not
limited to payroll-related items: new/terminated employees, salaries,
taxes, benefits, and other deductions.
• Handle accounts payable-related items: process invoices and expense
reports, enter vendor information, update/ monitor 1099 vendors, and
identify/monitor discrepancies.
• Enter required financial transactions as needed with supporting docu-
mentation.
• Prepare bank reconciliations for all accounts, ensure accuracy in the
general ledger, and gather and monitor financial data as needed
Account Manager 2023 - 2024
Collect customer payments by payment due dates to ensure targets.
are achieved related to delinquent balances and average.
days-to-collect.
Efficiently resolve any customer questions and concerns in a
professional manner
Operates as the point of contact for your customer portfolio on
behalf of various clients.
Build and maintain strong relationships with clients
Access Supports for Living
Accountant 2022 - 2023
Prepare quarterly payroll budget reports and claim preparations.
Create other detailed financial reports based on financial statuses
and data.
Gather financial information and prepare documents before
monthly close.
Perform bank reconciliations; Reconcile accounts and review
expense data, net worth, and assets.
General ledger reconciliation
Preparation of recurring and adjusting journal entries within areas
of responsibility
SCM CPA’s
Payroll Clerk 2021 - 2022
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RFP Cannabis-01
July 25, 2025
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Maintained payroll information by calculating, collecting, and
entering data.
Initiated direct deposits and prepared manual checks for over 30
employees.
Maintained employee confidence and protected payroll operations
by keeping confidential information.
Verified timekeeping records and handled any discrepancies with
employees.
Monthly, quarterly, and annual sales tax process and filing
2.3 Standard Hourly Billable Rates
Below are the proposed rates for the labor categories.
Labor Category
Year 1
Hourly Rate
Year 2
Hourly Rate
Principal 200.00$ 206.00$
Accounting Manager 120.00$ 123.60$
Staff Auditor 60.00$ 61.80$
NOTE
There is a 3% escalation rate for year 2.
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2.4 St atement of Past Contract Disqualifications
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3. WORK PROGRAM
3.1 Management Approach
The approach discussed herein assumes that the services will be performed remotely.
However, we may recommend an onsite visit if the cannabis business is non-responsive or
if we determine that a business is “high-risk.”
3.1.1 Post Award/Contract Kick-Off Meeting
Upon receiving notification of the contract award, our team will be ready for a kick-off call
immediately. As arranged by the City, we will participate in the post-award meeting to intro-
duce our team members and their roles and backgrounds, meet the project leadership, re-
view the scope of work (SOW) and deliverables, and establish communications.
3.1.2 Project Tools & Systems
Over the last 26+ years, we have developed a work plan that has proven effective in
managing projects and ensuring timely completion. Our plan utilizes technology and online
capabilities to maintain continuous communication through email, internet or cloud-based
project management, HRIS, timekeeping, accounting, database management systems, and
Microsoft Teams for tools such as conferencing, webinars, shared drives, and a 24/7 toll-
free number. We will review each project's tools and systems at the post-award/kick-off
meeting, discuss access to the document repository, provide usernames, passwords, and
links to various systems, and explain the purpose/use of each system discussed in the
following figure.
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Figure 1. Project Systems
Additional information about the key systems discussed in the figure above is below.
Project Management (RedBooth): We will use RedBooth (formerly Team Box), a web-based
project management system, to track tasks, milestones, and due dates. Stakeholders and
team members will be given access to workspaces. BMC staff will update tasks, milestones,
and communication logs daily. We have successfully used RedBooth with local municipalities
and will train designated personnel to use the platform.
Microsoft Teams: Businesses will be given access to Teams to upload documents as re-
quested. Each business will notify BMC when they have uploaded documents, and BMC will
email an acknowledgment of receipt. We will also provide access to the City and BMC en-
gagement team members to view and download documents once available. Only assigned
individuals will have access to the workspace.
Knowledgebase: We have developed a knowledgebase of all pertinent statutes, regulations,
laws, audit programs, checklists, and toolkits. The knowledge base will consist of CA DCC reg-
ulations, the IRS participant audit guide, relevant IRS regulations, Health and Safety, report tem-
plates by type of report, recent alerts or publications, professional alerts, and other relevant
guidance. It will be updated as forms, checklists, and templates are developed. The Knowledge-
base is in Teams as a separate folder in the contract administration workspace - allowing the
City and the BMC team access to the pertinent information.
Timekeeping, Job Costing, and Expense Reporting System: Our company uses eFAACT, a
RedBooth
Project
Management
System
Artifacts
•Web-based
management
•Internal
communications
•Stakeholder
engagement
•Deliverable
tracking
•Activities list
•Critical tasks
lists and due
dates
•Communicaiton
logs
•Staffing
Knowledgebase
Project Report
Management
Artifacts
•Pertinent
statues, laws,
and regulations
•Checklists,
forms, and
templates
•Checklists,
toolkits, and
audit programs
•Reference tools
•RedBooth-
enabled
•Stakeholder
accessible
•Training and
Video Library
eFAACT
Intergrated
Timekeeping,
Expense
Reporting, Job
Costing
Artifacts
•Electronic
timekeeping,
expense
reporting
•Mobile app
accessible on
computers,
phone, and
iPads
•Job Costing
system to track
costs by task
order,
deliverable,
CLIN, labor
category,
site/location,
etc.
Microsoft Teams
Project
Communication
Artifacts
•Teams platform
•Shared folders
•Central email
address for
stakeholder
communication
with entire
Project Team:
ᩁ翽
audits@bmc-
llc.net
•Remote
meetings/confer
ence calls
•Chat and
message board
with customers
•Client access to
upload
documents.
Bamboo
HRIS System
Artifacts
•Web-based
electronic HRIS
system
•Document
management
•Benefits
management
•Performance
evaluations and
assessments
•Employee
satisfaction
surveys
•Corporate
message and
chat board
•Includes
required
compliance
notices
R3 Business
Solutions
Contract
Management
System
Artifacts
•Web-based
system
•Centralized
contract
mangaement
•Track FAR/DFAR
clauses, CLINS
and flow-downs
•Track Contract
Deliverables
•Instant Contract
Briefs and
Waterfall
Reports
•Includes
required
compliance
notices
Docusign Envelope ID: 8B3FD8AF-D555-4642-A608-29F9D9AEE674
City of San Luis Obispo, CA
T az Audits on Cannabis Businesses
RFP Cannabis-01
July 25, 2025
Page | 28
web-based electronic timekeeping and job costing system that integrates with QuickBooks.
It includes a contracts management module to track costs by contract, task order, and Con-
tract Line-Item Numbers. Individuals log their timecards onto the system daily and charge
time to authorized work orders. This system provides real-time reporting and task order
tracking through a job status report. Access can be provided to designated officials, and
user-designed dashboards can be created to provide snapshots of key task order monitoring
information. It facilitates the entry, tracking, updating, and status checking of task orders,
including invoices and payment information.
CaseWare: Our company uses CaseWare for our electronic work papers engagement
workflow. Staff are trained to use CaseWare and have active licenses, resulting in cost
efficiencies for this requirement. We will give the City access to the work papers for review,
download them, and provide a copy.
Email: We have established a SanLuisObispoaudits@bmc-llc.net central email address
to communicate with the entire BMC team simultaneously. This allows the City and any of
its personnel to communicate with the entire team when needed, although we will provide
an individual email address for each team member.
Travel Management (Egencia): We use Egencia for travel management. Employees can
book travel (subject to pre-established rules consistent with GSA per diems) and charge it
to the contract.
3.1.3 Conflict of Interest
BMC has an Organizational Conflict of Interest Plan (OCI Plan) to identify and mitigate any
conflicts of interest arising from its contracts and Task Orders (TO). The OCI Plan outlines
measures such as organizational firewalls to ensure BMC can handle contracts objectively
and provide impartial advice to the City. Additionally, it allows the City to access BMC's
technical expertise when necessary. After the OCI process, all personnel assigned to the
contract must complete and sign a "personnel conflict of interest certification" to disclose
any overlapping interests they may have with other entities. We can submit an OCI Plan and
sign COI certifications if a contract is awarded.
Docusign Envelope ID: 8B3FD8AF-D555-4642-A608-29F9D9AEE674
City of San Luis Obispo, CA
T az Audits on Cannabis Businesses
RFP Cannabis-01
July 25, 2025
Page | 29
3.1.4 Communication and Escalation
3.1.4.1 Risk Management
BMC constantly strives to expand our understanding of our customers and related policy
changes that affect our work. We try to achieve this in several ways: conduct regular
discussions with clients to determine their satisfaction with our performance and
recommend that a certain portion of every meeting be devoted to an open discussion of the
City's concerns with the team’s performance. Our experience is that early identification of
problems and honest exploration of performance issues work best for all involved. To
ensure the highest possible standards, our management will review performance,
anticipate potential problem areas, and
provide quality assurance checks for all
services performed and materials developed.
Risk mitigation begins in the project planning
stage and is monitored throughout the
project's life. The Risk Management process
the Team will use embraces the concept of
ongoing risk management to continually
assess project risk, determine the priority of
risks, and define and implement strategies to
mitigate the risks. Figure: Risk Management
Process depicts our process as summarized
below:
Identify potential risks to manage-
ment via a defined hierarchical pro-
cess with a well*designed escalation
procedure:
Analyze identified risks to determine
that they are valid and provide information about possible impact.
Response Planning gives the information from the risk analysis and determines mit-
igation actions.
Monitor and Control risks and response actions.
Report on all the potential risks and proposed mitigation actions through metrics
and progress reports.
Team BMC will monitor the three major risks of the contract: Cost, Schedule, and
Performance. The most critical Cost and Schedule risk will occur during validation activity
tasks. Our approach addresses and mitigates the risks by preliminary reviewing all material
and potential risk areas. This allows for logical and equitable procedures to inform the
client, and the consultants involved in the task and to resolve risks when they are identified.
Performance risk is identified through Quality Reviews, which evaluate process compliance
with relevant regulations, standards, and guidelines. Difficult and complex issues may
Figure Risk Management Process.
Risks are identified throughout the project and are analyzed
on an ongoing basis to deal with changing conditions and
priorities on the project.
Docusign Envelope ID: 8B3FD8AF-D555-4642-A608-29F9D9AEE674
City of San Luis Obispo, CA
T az Audits on Cannabis Businesses
RFP Cannabis-01
July 25, 2025
Page | 30
trigger this risk. Our approach ensures access to the right BMC member to resolve issues
and meet functional process needs within the compliance framework. Communication
plans will be in place to collaborate with the City and determine the appropriate response.
3.1.4.2 Problem Resolution Log
Our firm uses an Excel tool to manage project-related issues and resolutions, completion
tracking, feedback capture, data categorization by project phase, identification of areas for
improvement, process review and updates, and potential project impact analysis.
To prioritize and identify Problem Resolution Log entries, we use a ranking system called
"Hot Zones." The system rates issues based on the number of occurrences and priority, with
Green (1-7) for low, Yellow (8-12) for medium, or Red (13-20) for high priority. High-priority
issues are resolved first to minimize impacts on the project. See Figure 6 for a sample of the
Problem Resolution Log and "Hot Zone" Ranking.
Figure 5: BMC Problem Resolution Log and "Hot Zone" Ranking Sample
The report will use successful resolutions as lessons learned and best practices. A Problem
Resolution log will be created to incorporate successful resolutions into the final Lessons
Learned/Best Practice Report.
Docusign Envelope ID: 8B3FD8AF-D555-4642-A608-29F9D9AEE674
City of San Luis Obispo, CA
T az Audits on Cannabis Businesses
RFP Cannabis-01
July 25, 2025
Page | 31
3.2 Approach to Performing Tax Audits
We will perform the revenue audits consistent with Standards for Attestation Engagements
(SSAE), including examinations (audits) for compliance with regulations. The main
objectives of the revenue audit are to ensure the completeness of income, ascertain
efficiency in internal control, determine the degree of compliance, and ensure timely
recognition of revenue. We will perform the audit of revenue by testing the key audit
assertions:
• Occurrence. Assessing whether the recorded revenue has occurred, as there is a
risk that it may not have.
• Completeness. Completeness means ensuring that the revenue balance reported
on the income statement and third-party reports includes all revenue transactions
occurring during the period.
• Rights and Obligations. The assertion of rights and obligations is linked to risks and
rewards. It is important to consider the entity’s rights and obligations regarding the
products sold or services rendered to customers.
• Classification. Verifying whether revenue transactions are classified in accordance
with applicable accounting standards, statutes, laws, and regulations.
• Cut Off. Cut-off assertion ensures that revenues are recorded in the correct ac-
counting period.
Due to the cannabis industry's cash-intensive nature, there will be an emphasis on
understanding cash. Common controls over cash include segregation of duties,
authorization, regular bank reconciliation, regular cash count, and limiting access to cash.
For revenue audits of cannabis businesses, we will use the IRS Participant’s audit guide as
a baseline for the audit procedures incorporating requirements under the SSAE. We will also
look for signs of fraud during revenue audits. For instance, examining unusual transactions,
fictitious sales, or revenue manipulation. The entire audit team will perform these services.
Docusign Envelope ID: 8B3FD8AF-D555-4642-A608-29F9D9AEE674
City of San Luis Obispo, CA
T az Audits on Cannabis Businesses
RFP Cannabis-01
July 25, 2025
Page | 32
3.2.1 Overall Audit Process
The figure below is an overview of the audit process:
Figure 2. Overall Audit Process
PRE-AUDIT PLANNING
Customize the audit work
program for the City
Initial notification letter is
sent from the City,
introducing BMC and
notifying the business of
the audit.
BMC sends notification
letter to business
requesting an introductory
conference call.
Introductory Call
Review scope, schedule,
BMC staff, POC, and
process
Send Internal Control
Questionnaire (ICQ) and
Document Request List
(DRL)
PLANNING
Review documents and
complete risk
assessment and
planning
Perform analytical
procedures
Send audit confirmation
letter, length of audit,
interview dates, audit
team contact
information, and
required business staff
Send interview and
walkthrough schedule
INTERVIEWS &
WALKTHROUGH
Conduct interviews,
walkthroughs, and
follow up on open items.
Perform additional
analytical procedures.
Discuss preliminary
findings (ongoing) /
Prepare Notification of
Findings for the City
only.
Send fieldwork open
items list.
REPORTING
Draft report for BMC QC
(Preliminary if findings,
Final if no findings)
Draft report, with tax or
fees, to the City for
review. Update draft
report with City
comments
Exit Conference
Schedule with business
and City to review draft
report.
Response from the
business on the draft
report.
Issue final report,
including tax or
computations, to the
business and City.
If findings or requested
by business,
recommend technical
assistance.
Docusign Envelope ID: 8B3FD8AF-D555-4642-A608-29F9D9AEE674
City of San Luis Obispo, CA
T az Audits on Cannabis Businesses
RFP Cannabis-01
July 25, 2025
Page | 33
We have successfully used the approach in the figure above on other contracts where
multiple audits occur simultaneously. Unless otherwise indicated by the city, all audits
will be performed remotely.
3.2.2 Pre-Audit Planning
3.2.2.1 Audit Work program
We have developed an audit work program that we can customize to comply with the City’s
specific regulations, cannabis agreements, and tax laws. The work program consists of the
following:
• General audit procedures
• Risk Assessment
• Review of internal controls
• Various reconciliations and comparative analyses, including revenue reconcilia-
tion, sales receipts, POS sales, bank statements, and trend analysis.
• Computation of tax liability and payments, including discrepancies between re-
ported and actual receipts.
• Interview Questions
• Final report schedules
An example of our work program can be reviewed at Cannabis Audit
Wb_Template_V4.7.2025.xlsx.
3.2.2.2 Introductory Call
After the City indicates that we can proceed and/or sends the notification letter to the busi-
nesses, whichever occurs first, within two (2) business days, we will send a follow-up email
requesting availability for an introductory conference where we will introduce our team, es-
tablish POCs, provide an overview of the audit process, and discuss scheduling of the onsite
review. By conducting introductory calls, we establish communications, schedule the dates
for document exchange, ensure the businesses understand the overall process, allow them
the opportunity to ask questions, and generally facilitate a more effective review. We will
invite the City to participate in the call. All participants will be asked to sign the introductory
conference agenda immediately following the call.
3.2.2.3 Internal Control Questionnaire
After the introductory call, we will send an electronic Internal Control Questionnaire (ICQ)
and Document Request List (DRL) that they will complete online and upload the requested
information. Click Internal Control Questionnaire PDF.pdf for a pdf version of the online
ICQ/DRL.
The ICQ consists of questions concerning the businesses management and organizational
structure, accounting system, inventory system, internal controls over cash and other
relevant processes, and segregation of duties.
Docusign Envelope ID: 8B3FD8AF-D555-4642-A608-29F9D9AEE674
City of San Luis Obispo, CA
T az Audits on Cannabis Businesses
RFP Cannabis-01
July 25, 2025
Page | 34
3.2.2.4 Document Request List (DRL)
The DRL is in the ICQ and documents requested include:
Point of Sales Report (Monthly)
METRC Reports
CDTFA Quarterly Reports
Federal & State Tax Returns
Financial Statements
Bank Statements
Merchant Statements (PayPal, CashApp, Venmo, etc)
Development Agreement
ATM Agreement
We will work with the City to customize this list to be specific to the City.
3.2.3 Planning
We will begin the pre-audit planning phase immediately after the kick-off call. This will con-
sist of, but not be limited to:
1. Meetings with the City to finalize the audit plan, discuss document exchange, and agree
to an audit schedule.
2. We will send a document request to the City consisting of, but not limited to:
a. A list of the cannabis businesses being audited. The list should include the busi-
ness name, type of license holder (retail, etc.), identification of multi-state li-
cense holders, contact information, year license issued, etc.
b. Any reports or data submitted to the City.
c. All filed state and City tax reports.
d. Prior tax audits for the businesses.
e. Financial statements submitted by the businesses.
3. If prior audit reports are available, we will review and recommend any changes to the
report.
4. In our project management system, we will create the critical tasks due dates, assign the
tasks, and create communication logs for all assigned audits.
Docusign Envelope ID: 8B3FD8AF-D555-4642-A608-29F9D9AEE674
City of San Luis Obispo, CA
T az Audits on Cannabis Businesses
RFP Cannabis-01
July 25, 2025
Page | 35
3.2.3.1 Risk Assessment
Upon receipt of the documents requested during the planning phase, we will proceed with
analytical procedures, including preparing a risk assessment to determine if additional pro-
cedures are required. The risk factors for the assessment will consist of the following:
1. Volume of business
2. Liquidity
3. Automation of transactions.
4. Debt covenants.
5. Susceptibility of manipulation, etc.
6. Design and implementation of controls.
7. Control and policy related to incentives.
8. Opportunities to commit fraud include complex organizational structures, a lack of
monitoring of financial reporting, or ineffective internal controls (e.g., over the cash
cycle, including receipts and disbursements in predominantly cash-based busi-
nesses).
9. Incentives/pressures to commit fraud, including high levels of competition, signifi-
cant market volatility, and stringent regulatory requirements.
10. The presence of potential attitudes/rationalizations, including a lack of timely reme-
diation by management.
The risk assessment is Tab G in our cannabis audit work program (Cannabis Audit
Wb_Template_V4.7.2025.xlsx). We will discuss the risk category (low, medium, high) with
the City and confirm the final audit procedures. For those operators that are rated “high”
risk, we will recommend the additional procedures discussed in Section 3.2.3.3.
3.2.3.2 Analytical Procedures
We will use the documents obtained from the City and business to perform the initial ana-
lytical procedures as summarized below:
1. Analyze the business's bank accounts to reconcile its financial records with its
filed tax returns. We understand that not all cash may be deposited into the bank,
but this analysis is important for making comparisons to other analyses.
2. Compare the POS sales, bank statements, tax returns, and financial statements to
determine the most reliable source of revenue for computing the tax liability.
3. Verify that all taxable income, consistent with their cannabis agreement, have been
reported by reviewing the income reported on financial statements and comparing it
to the amount reported as taxable on returns.
Docusign Envelope ID: 8B3FD8AF-D555-4642-A608-29F9D9AEE674
City of San Luis Obispo, CA
T az Audits on Cannabis Businesses
RFP Cannabis-01
July 25, 2025
Page | 36
4. Analyze the City, state, and Federal tax returns for consistency in reporting.
5. Analyze the sources of income and the income reported in return for any discrep-
ancies.
6. Compare prior year revenue to identify significant variances and obtain an expla-
nation.
7. Perform comparative and trend analysis of CDFTA, City tax reports, POS system
data, financial statements, and Federal tax returns.
3.2.3.3 Additional Audit Procedures
For businesses assessed as “high risk” we will review the following information when
there are inconsistencies in the analytical procedures that indicate potential underre-
porting of gross receipts:
• Utilities records through the current date
• Retail and/or wholesale pricing information for the audit period.
• Sales tax information.
• Information from any ATM/Cash machines in the selling establishment.
3.2.4 Interviews and Walkthroughs
After reviewing their ICQ and documents submitted and completing the risk assess-
ment and analytical procedures, we will interview to obtain clarification on information
reviewed, conduct a walkthrough of their POS system, discuss variances and discrep-
ancies in the reconciliations and documents submitted. Interviews will also consist of:
1. Inquiry about the cash on hand and accumulated funds.
2. Inquiry and walkthrough of handling cash receipts, including any automation.
3. Confirm the information and obtain clarification in the Internal Control Question-
naire.
4. Interview the personnel who work on the accounting and POS systems to obtain
an understanding of the procedures and their roles and responsibilities.
3.2.5 Reporting
3.2.5.1 Draft Audit Report
The specific objective of the reporting phase is to prepare the draft and final reports and
wrap up the audit.
We will issue a revenue audit consistent with SSAE standards for an examination. The re-
port will include the following:
1. Independent Accountant’s Report
2. Schedule of Findings and Recommendations, including recomputed taxes and fees,
as applicable.
Docusign Envelope ID: 8B3FD8AF-D555-4642-A608-29F9D9AEE674
City of San Luis Obispo, CA
T az Audits on Cannabis Businesses
RFP Cannabis-01
July 25, 2025
Page | 37
3. Exhibits relative to claimed and audited gross receipts and tax computations.
The draft audit report will be sent to the City for their input and feedback before sharing it
with the business. Any feedback from the City will be incorporated, and an updated draft of
the report will then be provided to the business.
3.2.5.2 Exit Conference
BMC will arrange a formal exit conference to go over the draft report and discuss any
findings, if applicable. BMC will prepare an exit conference agenda, and all participants will
be required to sign it as an acknowledgment of their participation. Any outstanding issues
after the meeting will be included in the exit conference meeting notes and the due date for
responding to those issues.
The business will be asked to submit a response to the report in writing and on its letterhead.
If there are no findings, the business’ response is acceptance of the report.
3.2.5.3 Final Audit Rep ort
If there are findings, the business will respond to each of the findings with concurrence or
disagreement. BMC will review the company's response. If they disagree with the findings,
an Auditor’s response will be provided, indicating whether the finding has changed or
remained unchanged, along with the basis for the decision.
3.2.6 Quality Control
Our quality control procedures follow the AICPA Statement on Quality Control Standards
(SQCS) NO. 3. All reports undergo review by the Manager and final review by the Principal.
Reviewers sign off electronically using our electronic workpapers, CaseWare. Managers
review 100% of all work papers, while the Principal reviews 100% of the findings.
The diagram below outlines our Team's quality management process. Our framework uti-
lizes industry’s best practices, focusing on three essential elements: quality planning, as-
surance, and control. A more detailed QC Plan will be provided if we are awarded the call
order.
Figure 1 Quality Control Plan
Docusign Envelope ID: 8B3FD8AF-D555-4642-A608-29F9D9AEE674
City of San Luis Obispo, CA
T az Audits on Cannabis Businesses
RFP Cannabis-01
July 25, 2025
Page | 38
Below is a summary of our approach to ensure that all reports are completed promptly,
consistent with GAGAS and contract
requirements, and are subject to a complete
quality control review.
3.2.6.1 Quality Control Procedures
Our quality control methodology is based on early
detection, proactive corrective measures, and
constant communication and information. The
methodology also ensures the timely completion
of deliverables is acceptable to the City. To
facilitate this methodology, we use six quality
control procedures.
Figure 4. QC Procedures
1. Internal/Random Reviews: The Principal
conducts internal reviews on work progress to ensure substance, form, relevancy,
and compliance. The nature, timing, and extent of the reviews depend on deadlines,
the complexity of the delivery, and staff progress. These reviews supervise subordi-
nate staff work and detect issues early. They track the status of action steps and as-
sess if the Team is on target to complete deliverables and meet quantitative perfor-
mance measures. The reviews also identify problem areas and allow management to
implement corrective measures promptly. Planned and random reviews are con-
ducted as needed.
2. Peer Reviews: As a first level of quality control, BMC will conduct peer reviews. A
peer review is conducted by a colleague with similar professional experience and
knowledge who did not work on the deliverable. The QC team and/or principal will
determine the nature, timing, and extent of such reviews.
3. QC Review Checklists: BMC will create a report checklist for each deliverable type
defined in the solicitation to ensure it meets the specific requirements. For this pro-
ject, we will create the following checklists:
a. Reviewer QC Checklist – The Manager should complete both the appropriate
column of the work paper checklist and the draft report. Both checklists and
the draft report should be sent to me for a final review.
b. Engagement Checklist – The Principal should complete the appropriate col-
umn of the work paper checklist and the Reviewer QC Checklist.
c. Report Checklist—Before submitting a report, the preparer completes a Re-
port checklist and reviews it with the Manager, and Principal. The checklist
ensures that all GAGAS and contractual requirements are met. A checklist
has been developed for City audits.
Docusign Envelope ID: 8B3FD8AF-D555-4642-A608-29F9D9AEE674
City of San Luis Obispo, CA
T az Audits on Cannabis Businesses
RFP Cannabis-01
July 25, 2025
Page | 39
4. Team Feedback: The Team, including the City, will provide early feedback on de-
liverables. Regular briefings and meetings will identify issues impacting project
completion.
5. Continuous Reviews: Our approach aims to detect problems, inconsistencies,
and errors early on by regular briefing, posting deliverables frequently, submitting
weekly status reports, and holding regular meetings. The QC Team and Principal
can access deliverables daily to identify any problem areas, evaluate the effective-
ness of procedures, and make necessary adjustments and corrections. These re-
views are unscheduled and can be performed by any team member.
3.2.6.2 Review Levels
The table below details the due date for submission of each deliverable for review, who will
prepare the initial document, and who will review the deliverable.
Table 3. QC Review Levels
Type Due Date for Review Preparer 1st Reviewer Final review
Workpapers Seven days before the
draft report's due date
Auditor Manager Principal
Findings &
Recommendations
Seven days before the
draft report's due date
Auditor Manager Principal
Draft Report Three days before the
due date
Auditor Manager Principal
Final Report Two days before the
due date for the final
report
NA Manager Principal
(Lowest to highest)
Docusign Envelope ID: 8B3FD8AF-D555-4642-A608-29F9D9AEE674
City of San Luis Obispo, CA
T az Audits on Cannabis Businesses
RFP Cannabis-01
July 25, 2025
Page | 40
3.3 Schedule & Estimated Hours by Task and Sub-Task
Phase
Section of
Proposal Procedures
Staff
Auditor
Accounting
Manager Principal
Total Hours
per Audit Duration
Meetings 3.1.1
Project kick-off, monthly status
meetings, conflict of interest and
implementation of tools 1 1 1 3
Within 30
days of
award
1 1 1 3
Audit work program 3.2.2.1 Customize tax audit work program,
including the ICQ and DRL, to comply
with City requirements
0.25 0.25 0.25 0.75 Within 30
days of
award
Introductory Call 3.2.2.2 Notification letter and introductory call
with each operator to review the scope,
timing, and audit schedule. Includes
preparation of agenda and notes.
1 0.5 0.5 2 Week 1
Internal Control
Questionnaire (ICQ) &
Document Request
List (DRL)
3.2.2.3 &
3.2.2.4
Send electronic ICQ and DRL to
operators. Follow-up with operators until
completed. Allow 10 days to provide.
Inventory documents as received
2 0 0 2 Week 2-3
3.25 0.75 0.75 4.75
Risk Assessment 3.2.3.1 Review documents submitted and ICQ,
prior year audits, etc. and prepare a risk
assessment to determine if alternative
procedures are required.
2 0.5 0 2.5 Week 3-4
Analytical Procedures 3.2.3.2 Perform extraction and reconciliation of
data, review bank statements, financial
statements, POS sales receipts, and
other documents. Identify
descrepancies and variances.
10 2 0 12 Week 4-5
12 2.5 0 14.5
TOTAL HOURS
TOTAL HOURS
TOTAL HOURS
PLANNING
The objective is to conduct annual tax audits of all licensed cannabis businesses operating in the City of San Luis Obispo. The
purpose of the audit is to verify the accuracy of reported gross receipts and cannabis tax remittances to the City.Point-of-sale (POS)
and Metrc data.
PRE-AUDIT PLANNING
MANAGEMENT APPROACH
In the table below we show the detailed schedule by task and sub-task to complete 1 tax audit. The RFP did not include the number
of audits, accordingly, we could not provide a comprehensive pricing.
Docusign Envelope ID: 8B3FD8AF-D555-4642-A608-29F9D9AEE674
City of San Luis Obispo, CA
T az Audits on Cannabis Businesses
RFP Cannabis-01
July 25, 2025
Page | 41
Phase
Section of
Proposal Procedures
Staff
Auditor
Accounting
Manager Principal
Total Hours
per Audit Duration
Open Items List &
Interview Questions
3.2.4 To verify it is accurate, complete, and
adequately supported in the
corresponding cost documentation.
1 0.5 0 1.5 Week 4-5
Interviews and
walkthroughs
3.2.4 Schedule and conduct interviews to
review open items from the ICQ, missing
documentation, descrepancies, and
inconsistencies identified during the
planning phase.
2 2 1 5 Week 5-6
3 2.5 1 6.5
Draft Audit Report 3.2.5.1 Draft audit report 3 0 0 3 Week 6-7
Quality Control 3.2.6 BMC internal review of draft report 0 2 1 3 Week 6-7
City Review of Draft
Report
3.2.5.1 Draft audit report sent to City BEFORE
sent to operator for comment
0 0 0 0 Week 7-8
Exit Conference 3.2.5.2 Review draft report with business.
Request their response on letterhead.
1 1 1 3 Week 7-8
Final Audit Report 3.2.5.3 Final audit report, including business
response, to City. City to provide to
business.
0 1 1 2 Week 7-8
1 2 2 5
Total Hours 20.25 8.75 4.75 33.75
INTERVIEWS AND WALKTHROUGHS
REPORTING
TOTAL HOURS
TOTAL HOURS
Docusign Envelope ID: 8B3FD8AF-D555-4642-A608-29F9D9AEE674
City of San Luis Obispo, CA
T az Audits on Cannabis Businesses
RFP Cannabis-01
July 25, 2025
Page | 42
APPENDIX A – PEER REVIEW
Docusign Envelope ID: 8B3FD8AF-D555-4642-A608-29F9D9AEE674
City of San Luis Obispo, CA
T az Audits on Cannabis Businesses
RFP Cannabis-01
July 25, 2025
Page | 43
Docusign Envelope ID: 8B3FD8AF-D555-4642-A608-29F9D9AEE674
City of San Luis Obispo, CA
T az Audits on Cannabis Businesses
RFP Cannabis-01
July 25, 2025
Page | 44
Docusign Envelope ID: 8B3FD8AF-D555-4642-A608-29F9D9AEE674
The City of San Luis Obispo is committed to including disabled persons in all of our services, programs and activities.
Telecommunications Device for the Deaf (805) 781-7410.
Notice Requesting Proposals Qualified CPA or Audit Firm to Perform Tax Audits on Cannabis
Businesses – Cannabis-01
The City of San Luis Obispo is requesting sealed proposals from qualified certified public accountants (CPA)
or audit firms to provide cannabis tax audit services in support of the City’s cannabis business tax
compliance and enforcement efforts. The proposed contract shall not exceed $69,000 over a two-year
period.
All firms interested in receiving further correspondence regarding this Request for Proposals (RFP) will be
required to complete a free registration using BidNet. (https://www.bidsync.com/bidsync-app-
web/vendor/register/Login.xhtml). All proposals must be received via BidNet by the Department of
Finance at or before July 25, 2025, when they will be opened electronically via BidNet on the proposal
end date and time.
The preferred method for bid submission is electronic via BidNet Direct. However, if you wish to submit
a paper copy, please submit it in a sealed envelope plainly marked “Proposal for Food and Beverage
Vendor Company,” to the Department of Finance, at 990 Palm Street, San Luis Obispo, CA, 93401, at or
before 3 pm on July 7, 2025.
Questions should be submitted electronically in BidNet, and the City will answer in BidNet.
Project packages and additional information may be obtained at the City’s BidNet Direct website at
www.BidNetDirect.com.
For technical help with BidNet contact BidNet tech support at 800-835-4603.
Ivana Gomez
Cannabis Business Coordinator
City of San Luis Obispo
Igomez@slocity.org
(805)781-7147
Erin Keller
Senior Business Analyst
City of San Luis Obispo
EKeller@slocity.org
(805)781-7296
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The City of San Luis Obispo is committed to including disabled persons in all of our services, programs and activities.
Telecommunications Device for the Deaf (805) 781-7410.
Table of Contents
INTRODUCTION…………………………………………………………………………………………………………………………….1
SCOPE OF WORK…………………………………………………………………………………………………………………………..1
SCHEDULE…………………………………………………………………………………………………………………………………….1
BUDGET………………………………………………………………………………………………………………………………………. 1
SPECIAL TERMS…………………………………………………………………………………………………………………………….3
PROPOSAL SUBMITTAL FORM……………………………………………………………………………………………………...9
REFERENCES…………………………………………………………………………………………………………………………………10
STATEMENT OF PAST CONTRACT DISQUALIFICATIONS………………………………………………………………...12
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A. INTRODUCTION
The City of San Luis Obispo is seeking proposals from qualified CPAs or audit firms (hereby referred to as
“Consultant”) to provide cannabis tax audit services in support of the City’s cannabis business tax
compliance and enforcement efforts. The proposed contract shall not exceed $69,000 over a two-year
period.
B. SCOPE OF WORK
The Consultant will conduct annual tax audits—typically each fall—of all licensed cannabis businesses
operating in the City of San Luis Obispo. The purpose of the audit is to verify the accuracy of reported
gross receipts and cannabis tax remittances to the City.Point-of-sale (POS) and Metrc data.
Audit activities may include, but are not limited to, review and analysis of:
• Point-of-sale (POS) system data and Metrc inventory records
• Cannabis tax returns submitted to the City, California Department of Tax and Fee Administration
(CDTFA), and relevant federal agencies
• Bank statements, sales receipts, and other supporting financial documents
The Consultant shall provide written reports summarizing findings and may be asked to present
recommendations or clarifications during or after the audit period.
During the contract term, the Consultant must avoid actual or perceived conflicts of interest and act solely
in the interest of the City and its residents. The Consultant may not provide services to any private
cannabis-related client operating within the corporate boundaries of San Luis Obispo during the duration
of this agreement.
C. PROJECT SCHEDULE
Tasks Preliminary Schedule
Release Bid July 3, 2025
Questions Deadline July 18, 2025
Bid Closed July 25, 2025
Review Proposals & Interview Finalists By August 8, 2025
Award Contract By August 15, 2025 (10 days after award)
D. PROJECT BUDGET
The budget for a contractual agreement with a qualified cannabis consultant is not to exceed $69,000
over a two year period.
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D. GENERAL TERMS AND CONDITIONS
PROPOSAL REQUIREMENTS
1. Requirement to Meet All Provisions. Each individual or firm submitting a proposal (bidder) shall
meet all the terms, and conditions of the Request for Proposals (RFP) project package. By virtue
of its proposal submittal, the bidder acknowledges agreement with and acceptance of all
provisions of the RFP specifications.
2. Proposal Submittal. Each proposal must be submitted on the form(s) provided in the
specifications and accompanied by any other required submittals or supplemental materials.
Proposal documents shall be submitted electronically via BidNet. However, if you can’t submit
electronically, please send your bid copy in a sealed envelope to the Department of Finance, City
of San Luis Obispo, 990 Palm Street, San Luis Obispo, CA, 93401. To guard against premature
opening, the proposal should be clearly labeled with the proposal title, project number, name of
bidder, and date and time of proposal opening. No FAX submittals will be accepted.
3. Insurance Certificate. Each proposal must include a certificate of insurance showing:
a. The insurance carrier and its A.M. Best rating.
b. Scope of coverage and limits.
c. Deductibles and self-insured retention.
The purpose of this submittal is to generally assess the adequacy of the bidder’s insurance
coverage during proposal evaluation; as discussed under paragraph 12 below, endorsements are
not required until contract award. The City’s insurance requirements are detailed in Section E.
4. Proposal Quotes and Unit Price Extension. The extension of unit prices for the quantities
indicated and the lump sum prices quoted by the bidder must be entered in figures in the spaces
provided on the Proposal Submittal Form(s). Any lump sum bid shall be stated in figures. The
Proposal Submittal Form(s) must be totally completed. If the unit price and the total amount
stated by any bidder for any item are not in agreement, the unit price alone will be considered as
representing the bidder’s intention and the proposal total will be corrected to conform to the
specified unit price.
5. Proposal Withdrawal and Opening. A bidder may withdraw its proposal, without prejudice prior
to the time specified for the proposal opening, by submitting a written request to the Director of
Finance for its withdrawal, in which event the proposal will be returned to the bidder unopened.
No proposal received after the time specified or at any place other than that stated in the “Notice
Inviting Bids/Requesting Proposals” will be considered. All proposals will be opened and declared
publicly. Bidders or their representatives are invited to be present at the opening of the
proposals.
6. Submittal of One Proposal Only. No individual or business entity of any kind shall be allowed to
make or file, or to be interested as the primary submitter in more than one proposal, except an
alternative proposal when specifically requested; however, an individual or business entity that
has submitted a sub-proposal to a bidder submitting a proposal, or who has quoted prices on
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materials to such bidder, is not thereby disqualified from submitting a sub-proposal or from
quoting prices to other bidders submitting proposals.
7. Communications. All timely requests for information submitted in writing will receive a written
response from the City. Telephone communications with City staff are not encouraged but will
be permitted. However, any such oral communication shall not be binding on the City.
CONTRACT AWARD AND EXECUTION
8. Proposal Retention and Award. The City reserves the right to retain all proposals for a period of
60 days for examination and comparison. The City also reserves the right to waive non-substantial
irregularities in any proposal, to reject any or all proposals, to reject or delete one part of a
proposal and accept the other, except to the extent that proposals are qualified by specific
limitations. See the “special terms and conditions” in Section C of these specifications for
proposal evaluation and contract award criteria.
9. Competency and Responsibility of Bidder. The City reserves full discretion to determine the
competence and responsibility, professionally and/or financially, of bidders. Bidders will provide,
in a timely manner, all information that the City deems necessary to make such a decision.
10. Contract Requirement. The bidder to whom award is made (Consultant) shall execute a written
contract with the City within ten (10) calendar days after notice of the award. The contract shall
be made in the form adopted by the City and incorporated in these specifications.
CONTRACT PERFORMANCE
11. The City’s contract terms and conditions that Consultant will be expected to execute and be
bound by are attached hereto as Exhibit A.
E. SPECIAL TERMS AND CONDITIONS
1. Contract Award. The contract will be awarded to the most qualified bidder that, in the City’s sole
discretion in accordance with the Proposal Evaluation and Selection criteria set forth herein (if
applicable), provides the best proposal.
2. Sales Tax Reimbursement.
For sales occurring within the City of San Luis Obispo, the City receives sales tax revenues.
Therefore, for bids from retail firms located in the City at the time of proposal closing for which
sales tax is allocated to the City, 1% of the taxable amount of the bid will be deducted from the
proposal by the City in calculating and determining the most qualified lowest cost bidder.
3. Labor Actions.
In the event that the successful proposer is experiencing a labor action at the time of contract
award (or if its suppliers or subconsultant are experiencing such a labor action), the City reserves
the right to declare said proposer is no longer the most qualified, responsive proposer and to
accept the next acceptable proposal from a proposer that is not experiencing a labor action, and
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to declare it to be the most qualified, responsive proposer.
4. Failure to Accept Contract.
The following will occur if the proposer to whom the award is made (Consultant) fails to enter
into the contract: the award will be annulled; any bid security will be forfeited in accordance with
the special terms and conditions if a proposer's bond or security is required; and an award may
be made to the next lowest responsible, responsive proposer who shall fulfill every stipulation as
if it were the party to whom the first award was made.
5. Contract Term.
The supplies or services identified in this specification will be used by the City for two years. The
prices quoted for these items must be valid for the entire period indicated above unless otherwise
conditioned by the proposer in its proposal.
6. Contract Extension.
The term of the contract may be extended by mutual consent for an additional three years.
7. Supplemental Purchases
Supplemental purchases may be made from the successful proposer during the contract term in
addition to the items listed in the Detail Proposal Submittal Form. For these supplemental
purchases, the proposer shall not offer prices to the City in excess of the amounts offered to other
similar customers for the same item. If the proposer is willing to offer the City a standard discount
on all supplemental purchases from its generally prevailing or published price structure during
the contract term, this offer and the amount of discount on a percentage basis should be provided
with the proposal submittal.
8. Consultant Invoices.
The Consultant may deliver either a monthly invoice to the City with attached copies of detail
invoices as supporting detail, or in one lump-sum upon completion.
9 Non-Exclusive Contract. The City reserves the right to purchase the items listed in the Detail
Proposal Submittal Form, as well as any supplemental items, from other vendors during the
contract term.
10. Unrestrictive Brand Names. Any manufacturer's names, trade names, brand names or catalog
numbers used in the specifications are for the purpose of describing and establishing general
quality levels. Such references are not intended to be restrictive. Proposals will be considered for
any brand that meets or exceeds the quality of the specifications given for any item. In the event
an alternate brand name is proposed, supplemental documentation shall be provided
demonstrating that the alternate brand name meets or exceeds the requirements specified
herein. The burden of proof as to the suitability of any proposed alternatives is upon the proposer,
and the City shall be the sole judge in making this determination.
11. Delivery. Prices quoted for all supplies or equipment to be provided under the terms and
conditions of this RFP package shall include delivery charges, to be delivered F.O.B. San Luis
Obispo by the successful proposer and received by the City within 90 days after authorization to
proceed by the City.
12. Start and Completion of Work. Work on this project shall begin immediately after contract
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execution and shall be completed within 90 calendar days thereafter, unless otherwise negotiated
with City by mutual agreement.
13. Change in Work. The City reserves the right to change quantities of any item after contract award.
If the total quantity of any changed item varies by 25% or less, there shall be no change in the
agreed upon unit price for that item. Unit pricing for any quantity changes per item in excess of
25% shall be subject to negotiation with the Consultant.
14. Submittal of References. Each proposer shall submit a statement of qualifications and references
on the form provided in the RFP package.
15. Statement of Contract Disqualifications. Each proposer shall submit a statement regarding any
past governmental agency bidding or contract disqualifications on the form provided in the RFP
package.
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PROPOSAL CONTENT RFP
1. Proposal Content. Your proposal must include the following information:
Submittal Forms
a. Proposal submittal summary.
b. Certificate of insurance.
c. References from at least three firms for whom you have provided similar services.
Qualifications
d. Experience of your firm and those of sub-consultants in performing work and projects
relevant to the Scope of Services outlined and described in the request.
e. Resumes of the individuals who would be assigned to this project, including any sub-
consultants, with their corollary experience highlighted and specific roles in this project
clearly described.
f. Standard hourly billing rates for the assigned staff, including any sub-consultants.
g. Statement and explanation of any instances where your firm or sub-consultant has been
removed from a project or disqualified from proposing on a project.
Work Program
h. Detailed description of your approach to completing the work.
i. Detailed schedule by task and sub-task for completing the work.
j. Estimated hours for your staff in performing each phase and task of the work, including
sub-consultants, so we can clearly see who will be doing what work, and how much time
it will take.
k. Detailed budget by task and sub-task for completing the work.
l. Services or data to be provided by the City.
m. Services and deliverables provided by the Consultant(s).
n. Any other information that would assist us in making this contract award decision.
o. Description of assumptions critical to development of the response which may impact
cost or scope.
Requested Changes to Terms and Conditions
p. The City desires to begin work soon after selecting the preferred Consultant and expects
the Consultant to execute the City’s contract and all of the terms therein, as set forth in
Exhibit A. To expedite the contracting process, each submittal shall include requested
redlined changes to terms and conditions, if necessary. Please be advised that
Consultant’s requested changes to the City’s terms and conditions will be considered by
City staff when scoring and determining the competency and responsibility of the
proposer.
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Proposal Length
q. The proposal length should only be as long as required to be responsive to the RFP,
including attachments and supplemental materials.
2. Proposal Evaluation and Selection. Proposals will be evaluated by a review committee and
evaluated on the following criteria:
a. Understanding of the work required by the City.
b. Quality, clarity and responsiveness of the proposal.
c. Demonstrated competence and professional qualifications necessary for successfully
performing the work required by the City.
d. Recent team experience in successfully performing similar services.
e. Creativity of the proposed approach in completing the work.
f. Value.
g. Writing skills.
h. References.
i. Background and experience of the specific individuals managing and assigned to this
project.
As reflected above, contract award will not be based solely on price, but on a combination of factors as
determined to be in the best interest of the City. After evaluating the proposals and discussing them
further with the finalists or the tentatively selected Consultant, the City reserves the right to further
negotiate the proposed work and/or method and amount of compensation.
3. Ownership of Materials. All original drawings, plan documents and other materials prepared by
or in possession of the Consultant as part of the work or services under these specifications shall
become the permanent property of the City and shall be delivered to the City upon demand.
4. Release of Reports and Information. Any reports, information, data, or other material given to,
prepared by or assembled by the Consultant as part of the work or services under these
specifications shall be the property of the City and shall not be made available to any individual
or organization by the Consultant without the prior written approval of the City.
5. Copies of Reports and Information. If the City requests additional copies of reports, drawings,
specifications, or any other material in addition to what the Consultant is required to furnish in
limited quantities as part of the work or services under these specifications, the Consultant shall
provide such additional copies as are requested, and City shall compensate the Consultant for the
costs of duplicating of such copies at the Consultant's direct expense.
6. Required Deliverable Products. The Consultant will be required to provide:
a. One electronic submission - digital-ready original .pdf of all final documents. If you wish
to file a paper copy, please submit in sealed envelope to the address provided in the RFP.
b. City staff will review any documents or materials provided by the Consultant and, where
necessary, the Consultant will be required to respond to staff comments and make such
changes as deemed appropriate.
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ALTERNATIVE PROPOSALS
7. Alternative Proposals. The proposer may submit an alternative proposal (or proposals) that it
believes will also meet the City's project objectives but in a different way. In this case, the
proposer must provide an analysis of the advantages and disadvantages of each of the alternative
and discuss under what circumstances the City would prefer one alternative to the other(s).
8. Attendance at Meetings and Hearings. As part of the work scope and included in the contract
price is attendance by the Consultant at up to [number] public meetings to present and discuss
its findings and recommendations. The consultant shall attend as many "working" meetings with
staff as necessary in performing work-scope tasks.
9. Accuracy of Specifications. The specifications for this project are believed by the City to be
accurate and to contain no affirmative misrepresentation or any concealment of fact. Bidders are
cautioned to undertake an independent analysis of any test results in the specifications, as City
does not guaranty the accuracy of its interpretation of test results contained in the specifications
package. In preparing its proposal, the bidder and all subconsultant named in its proposal shall
bear sole responsibility for proposal preparation errors resulting from any misstatements or
omissions in the plans and specifications that could easily have been ascertained by examining
either the project site or accurate test data in the City's possession. Although the effect of
ambiguities or defects in the plans and specifications will be as determined by law, any patent
ambiguity or defect shall give rise to a duty of bidder to inquire prior to proposal submittal. Failure
to inquire shall cause any such ambiguity or defect to be construed against the bidder. An
ambiguity or defect shall be considered patent if it is of such a nature that the bidder, assuming
reasonable skill, ability and diligence on its part, knew or should have known of the existence of
the ambiguity or defect. Furthermore, failure of the bidder or subconsultant to notify City in
writing of specification or plan defects or ambiguities prior to proposal submittal shall waive any
right to assert said defects or ambiguities subsequent to submittal of the proposal.
To the extent that these specifications constitute performance specifications, the City shall not be
liable for costs incurred by the successful bidder to achieve the project’s objective or standard
beyond the amounts provided there for in the proposal.
In the event that, after awarding the contract, any dispute arises as a result of any actual or alleged
ambiguity or defect in the plans and/or specifications, or any other matter whatsoever,
Consultant shall immediately notify the City in writing, and the Consultant and all subconsultant
shall continue to perform, irrespective of whether or not the ambiguity or defect is major,
material, minor or trivial, and irrespective of whether or not a change order, time extension, or
additional compensation has been granted by City. Failure to provide the above-mentioned
written notice within one (1) working day of Consultant's becoming aware of the facts giving rise
to the dispute shall constitute a waiver of the right to assert the causative role of the defect or
ambiguity in the plans or specifications concerning the dispute.
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SECTION I: PROPOSAL SUBMITTAL FORM
The undersigned declares that she or he has carefully examined [_________] which is hereby made a part
of this proposal; is thoroughly familiar with its contents; is authorized to represent the proposing firm;
and agrees to perform the specified work for the following cost quoted in full:
BID ITEM:
Total Base Price
Sales tax []
Other
TOTAL $
Delivery of equipment to the City to be within _______ calendar days after contract execution and written
authorization to proceed.
q Certificate of insurance attached; insurance company’s A.M. Best rating: __________________.
Firm Name and Address
Contact Phone
Signature of Authorized Representative
Date
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G. REFERENCES
Number of years engaged in providing the services included within the scope of the specifications under
the present business name: .
Describe fully the last three contracts performed by your firm that demonstrate your ability to provide
the services included with the scope of the specifications. Attach additional pages if required. The City
reserves the right to contact each of the references listed for additional information regarding your firm's
qualifications.
Reference No. 1:
Agency Name
Contact Name
Telephone & Email
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
Reference No. 2:
Agency Name
Contact Name
Telephone & Email
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
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Reference No. 3
Agency Name
Contact Name
Telephone & Email
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
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H. STATEMENT OF PAST CONTRACT DISQUALIFICATIONS
The proposer shall state whether it or any of its officers or employees who have a proprietary interest in
it, has ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal,
state, or local government project because of the violation of law, a safety regulation, or for any other
reason, including but not limited to financial difficulties, project delays, or disputes regarding work or
product quality, and if so to explain the circumstances.
Do you have any disqualification as described in the above paragraph to declare?
Yes q No q
If yes, explain the circumstances.
Executed on at _______________________________________ under penalty of
perjury of the laws of the State of California, that the foregoing is true and correct.
______________________________________
Signature of Authorized Proposer Representative
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INSURANCE REQUIREMENTS FOR PROFESSIONAL SERVICES
Without limiting CONSULTANT’s indemnification of CITY, and prior to commencement of Work,
CONSULTANT shall obtain, provide and maintain at its own expense during the term of this
AGREEMENT, policies of insurance of the type and amounts described below, and in a form
satisfactory to CITY.
General liability insurance. CONSULTANT shall maintain commercial general liability insurance
with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less
than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and
property damage.
The policy must include contractual liability that has not been amended. Any endorsement
restricting standard ISO “insured contract” language will not be accepted.
Automobile liability insurance. CONSULTANT shall maintain automobile insurance at least as
broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all
activities of the Consultant arising out of or in connection with Work to be performed under this
AGREEMENT, including coverage for any owned, hired, non-owned or rented vehicles, in an amount
not less than $1,000,000 combined single limit for each accident.
Professional liability (errors & omissions) insurance. CONSULTANT shall maintain professional
liability insurance that covers the Services to be performed in connection with this AGREEMENT, in
the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date,
continuity date, or retroactive date must be before the effective date of this AGREEMENT and
CONSULTANT agrees to maintain continuous coverage through a period no less than three (3) years
after completion of the services required by this AGREEMENT.
Workers’ compensation insurance. CONSULTANT shall maintain Workers’ Compensation
Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000).
CONSULTANT shall submit to CITY, along with the certificate of insurance, a Waiver of Subrogation
endorsement in favor of CITY, its officers, agents, employees, and volunteers.
Umbrella or excess liability insurance. CONSULTANT shall obtain and maintain an umbrella or
excess liability insurance policy with limits that will provide bodily injury, personal injury and property
damage liability coverage at least as broad as the primary coverages set forth above, including
commercial general liability, automobile liability, and employer’s liability. Such policy or policies
shall include the following terms and conditions:
• A drop-down feature requiring the policy to respond if any primary insurance that would
otherwise have applied proves to be uncollectible in whole or in part for any reason;
• Pay on behalf of wording as opposed to reimbursement;
• Concurrency of effective dates with primary policies;
• Policies shall “follow form” to the underlying primary policies; and
• Insureds under primary policies shall also be insureds under the umbrella or excess
policies.
Proof of insurance. CONSULTANT shall provide certificates of insurance to CITY as evidence of the
insurance coverage required herein, along with a waiver of subrogation endorsement for workers’
compensation. Insurance certificates and endorsements must be approved by CITY’s Risk Manager
prior to commencement of performance. Current certification of insurance shall be kept on file with
CITY at all times during the term of this contract. CITY reserves the right to require complete, certified
copies of all required insurance policies, at any time.
Duration of coverage. CONSULTANT shall procure and maintain for the duration of the contract
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insurance against claims for injuries to persons or damages to property, which may arise from or in
connection with the performance of the Work hereunder by CONSULTANT, his agents,
representatives, employees or subconsultant.
Primary/noncontributing. Coverage provided by CONSULTANT shall be primary and any insurance
or self-insurance procured or maintained by CITY shall not be required to contribute with it. The limits
of insurance required herein may be satisfied by a combination of primary and umbrella or excess
insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that
such coverage shall also apply on a primary and non-contributory basis for the benefit of CITY before
the CITY’s own insurance or self-insurance shall be called upon to protect it as a named insured.
CITY’s rights of enforcement. In the event any policy of insurance required under this AGREEMENT
does not comply with these specifications or is canceled and not replaced, CITY has the right but not
the duty to obtain the insurance it deems necessary, and any premium paid by CITY will be promptly
reimbursed by CONSULTANT or CITY will withhold amounts sufficient to pay premium from
CONSULTANT payments. In the alternative, CITY may cancel this AGREEMENT.
Acceptable insurers. All insurance policies shall be issued by an insurance company currently
authorized by the Insurance Commissioner to transact business of insurance or is on the List of
Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of
A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of
Best’s Key Rating Guide, unless otherwise approved by the CITY’s Risk Manager.
Waiver of subrogation. All insurance coverage maintained or procured pursuant to this
AGREEMENT shall be endorsed to waive subrogation against CITY, its elected or appointed officers,
agents, officials, employees and volunteers or shall specifically allow CONSULTANT or others
providing insurance evidence in compliance with these specifications to waive their right of recovery
prior to a loss. CONSULTANT hereby waives its own right of recovery against CITY and shall require
similar written express waivers and insurance clauses from each of its subconsultant.
Enforcement of contract provisions (non estoppel). CONSULTANT acknowledges and agrees that
any actual or alleged failure on the part of the CITY to inform CONSULTANT of non-compliance with
any requirement imposes no additional obligations on the CITY nor does it waive any rights
hereunder.
Requirements not limiting. Requirements of specific coverage features or limits contained in this
Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any
coverage normally provided by any insurance. Specific reference to a given coverage feature is for
purposes of clarification only as it pertains to a given issue and is not intended by any party or insured
to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the CONSULTANT
maintains higher limits than the minimums shown above, the CITY requires and shall be entitled to
coverage for the higher limits maintained by the CONSULTANT. Any available insurance proceeds in
excess of the specified minimum limits of insurance and coverage shall be available to the CITY.
Notice of cancellation. CONSULTANT agrees to oblige its insurance agent or broker and insurers to
provide to CITY with a thirty (30) day notice of cancellation (except for nonpayment for which a ten
(10) day notice is required) or nonrenewal of coverage for each required coverage.
Additional insured status. General liability policies shall provide or be endorsed to provide that
CITY and its officers, officials, employees, and agents, and volunteers shall be additional insureds
under such policies. This provision shall also apply to any excess/umbrella liability policies.
Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in
compliance with these requirements if they include any limiting endorsement of any kind that has
not been first submitted to CITY and approved of in writing.
Separation of insureds. A severability of interests provision must apply for all additional insureds
ensuring that CONSULTANT’s insurance shall apply separately to each insured against whom claim
is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall
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not contain any cross-liability exclusions.
Pass through clause. CONSULTANT agrees to ensure that its subconsultant, subconsultant, and
any other party involved with the project who is brought onto or involved in the project by
CONSULTANT, provide the same minimum insurance coverage and endorsements required of
CONSULTANT. CONSULTANT agrees to monitor and review all such coverage and assumes all
responsibility for ensuring that such coverage is provided in conformity with the requirements of this
section. CONSULTANT agrees that upon request, all agreements with consultants, subconsultant,
and others engaged in the project will be submitted to CITY for review.
CITY’s right to revise specifications. The CITY reserves the right at any time during the term of the
contract to change the amounts and types of insurance required by giving the CONSULTANT ninety
(90) days advance written notice of such change. If such change results in substantial additional
cost to the CONSULTANT, the CITY and CONSULTANT may renegotiate CONSULTANT’s
compensation.
Self-insured retentions. Any self-insured retentions must be declared to and approved by CITY.
CITY reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by
a deductible. Self-insurance will not be considered to comply with these specifications unless
approved by CITY.
Timely notice of claims. CONSULTANT shall give CITY prompt and timely notice of claims made or
suits instituted that arise out of or result from CONSULTANT’s performance under this AGREEMENT,
and that involve or may involve coverage under any of the required liability policies.
Additional insurance. CONSULTANT shall also procure and maintain, at its own cost and expense,
any additional kinds of insurance, which in its own judgment may be necessary for its proper
protection and prosecution of the work.
Verification of Coverage. Consultant shall furnish the City with a certificate of insurance showing
maintenance of the required insurance coverage, as well as endorsements effecting general liability
coverage.. All endorsements are to be received and approved by the City before work commences.
Docusign Envelope ID: 8B3FD8AF-D555-4642-A608-29F9D9AEE674