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REV: 06-29-2023 MI <br />Exhibit “A” <br />Scope of Services and Fees <br />The services provided are broken down into specific line items in the cost table below. The <br />Original Agreement included certain objectives that would be billed at a per-unit cost and others <br />that would be billed on an hourly basis. The actual costs would be billed on an invoice basis, <br />based on the number of audits, inspections and background checks conducted, the number <br />renewal applications reviewed (billed hourly) and the hours of technical assistance used. The <br />table below provides revised per-unit cost for Objective 2, Compliance Inspections, which <br />increased from $1,500 to $2,000 per inspection. All other costs remain the same. <br />The hours and costs in the table below do not include any additional items that are not <br />contemplated by the scope of services in the Original Agreement, such as follow-up re-inspection <br />or review of any supplemental documents provided to address or contest any findings of non- <br />compliance or assistance with the appeal of any enforcement actions by the City. <br />Scope of Service Objectives Estimated Cost <br />Objective 1: Annual Financial Audits¹$10,000 per business <br />Objective 2: Compliance Inspections <br />Assumes 2 inspections per business per year¹ at $2,000 <br />per inspection <br />$4,000 per business per year <br />Objective 3: Background Checks <br />Cost paid directly by applicants. <br />No cost to City <br />Objective 4: Permit Renewal Application Evaluations¹Hourly Rate <br />Objective 5: Technical Assistance and Subject Matter <br />Expertise <br />Up to 36 hours per year of the contract <br />$9,000 per year <br />TOTAL ANNUAL COST PER BUSINESS (Objectives 1 and <br />2) <br />Does not include background checks or permit <br />renewal evaluation <br />$14,000 <br />ESTIMATE OF TOTAL COSTS: <br />Financial Audits (assumes 8 businesses at $10,000 <br />each) <br />Compliance Inspections (assumes 8 businesses at <br />$4,000 each) <br />Permit Renewal Evaluations (assumes 8 businesses, 3 <br />hours per business at $250/hr) <br />Background Checks (cost paid directly by applicants) <br />Technical assistance (assumes 24 hours at $250/hr) <br />$80,000 <br />$32,000 <br />$6,000 <br />No cost to City <br />$6,000 <br />TOTAL NOT TO EXCEED $124,000 <br />¹ Costs may be recoverable from permittees through <br />annual regulatory fee <br />ATTY/AGR.2023/Amend. No.3/Hinderliter, de Llamas & Associates (Cannabis Management Services) (Page 4 of 4)