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Page 2 of 4 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />For the previous four years, HDL has provided the City with technical support on the City’s cannabis <br />program. The City’s existing agreement with HDL expires in July 2024. <br />To ensure that the City can continue to administer the cannabis program accurately, fairly and in a fiscally <br />prudent manner, the City issued a Request for Proposals (RFP) on March 12, 2024, to identify qualified <br />entities who may be interested in providing the City with compliance, administration and fiscal auditing <br />support of cannabis businesses. The City received three responses. <br />The purpose of this staff report is to seek City Council approval of a new agreement with HdL to provide <br />subject matter expertise and technical support on cannabis management services. <br />ANALYSIS <br />The scope of services within the Request for Proposal included the following objectives: <br />1. Conducting annual financial (tax) audits; <br />2. Conducting on-site compliance inspections; <br />3. Conducting background checks and producing photo identification (ID) badges for cannabis store <br />owners and employees; <br />4. Evaluating annual permit renewal applications; and <br />5. Providing technical assistance and subject matter expertise. <br /> <br />Proposals submitted in response to the City’s RFP underwent evaluation based on the qualifications of <br />the firm and project team, their history and experience in delivering similar services, as well as the <br />proposed cost/fee schedule. Please see Table 1 below for more detail on each proposal. <br />Table 1 – Summary of Proposals <br /> <br />Firm Estimated Annual Cost History & Experience <br />HdL Companies Year 1: $119,400 <br />Once under contract, prices shall be <br />honored for the first full year, with <br />successive years subject to an annual <br />increase based upon the Consumer Price <br />Index for the Los Angeles-Long Beach- <br />Anaheim region. <br />Conducted over 1200 compliance <br />inspections, 300 cannabis tax audits for <br />cities in California. <br />Tulip & Oak $76,000 + Technical Assistance @ $125-150 <br />per hour <br />Technical assistance provider to 50+ <br />cannabis businesses in California. No <br />experience with public sector <br />organizations. <br />Tetra Growth <br />Systems, LLC <br />Year 1: $152,703 + $5000 travel x person x <br />trip <br />Year 2: $155,747 + $5000 travel x person x <br />trip <br />Technical assistance provider to cannabis <br />businesses in California. Based in South <br />Carolina. Firm has no experience with <br />California public sector. <br /> <br />6.F. - Page 2 of 21 <br />46