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EXHIBIT A <br />SCOPE OF SERVICES <br />The work would involve the following Tasks and Subtasks: <br />Task 1. Kickoff Meeting and Develop Framework for Auditing & Compliance: <br />The first steps of this engagement would be to meet with City staff to understand their priority areas of <br />concern, finalize the scope of work, and develop protocols and checklists for use in the financial and <br />auditing processes. Subtasks during this phase would include: <br />• Meet with City - refine scope and discuss priority areas for compliance reviews. <br />• Review San Leandro Ordinance, updated State regs, and other requirements. <br />• Develop protocols and checklists for financial and operational audits, refine with City. <br />Task 2. Desk -Based Audit: <br />The team would conduct annual desk -based audits of each business to ensure that their operational plans <br />and financial systems are compliant with state and local requirements, and adequate to ensure ongoing <br />compliance. This would include the following elements: <br />• Financial Plans and Systems: Review business performance standards and prohibited <br />operations, review conditions for renewal of permits including land use conditions, review process for <br />revocation/suspension/appeals. Establish protocols and timelines for monitoring outcomes, audit <br />initiation/notification. Request existing or pending reports/findings from other state and local agencies. <br />• Operational Plans and Systems: Review overall business plan and operational plan; review <br />security plan; review safety plans; review environmental plans. <br />Task 3.On-Site Audits & Compliance Reviews: <br />Following the desk -based review, the team would conduct one annual on -site inspection at each operating <br />business to verify that the systems described by licensees are being implemented as proposed and ensure <br />that businesses are complying with relevant state and local requirements. The City has noted the cannabis <br />manufacturer is still in R&D mode; which will reduce financial audit hours, but compliance reviews will still <br />require close to full effort. <br />• Financial Audit: Document financial operations, products available. Meet finance/ accounting <br />personnel. Note sales, payroll, banking, bill paying and inventory protocols. Request POS documentation <br />and collect pertinent records for review. <br />• Operational Compliance Review: Inspect implementation of and compliance with all key <br />elements of operational plans (e.g., inventory management, record -keeping, employee records, <br />transportation manifests, visitor logs, sample testing, posting of certifications), safety and security plans <br />(e.g., perimeter security, alarm systems standards and maintenance, video surveillance systems and <br />practices, video retention requirements), and environmental plans (e.g., hazardous/volatile materials, <br />packaging and labeling, waste disposal, neighborhood impact mitigation). <br />Task 4. Reporting: <br />Based on the City's preferences, our team will produce either (a) two separate compliance memos <br />(financial vs. operational) per business per year, or (b) one integrated memo covering all aspects of the <br />business. These memos will include both findings from the inspection and any corrective actions <br />recommended to address areas of non-compliance. <br />Consulting Services Agreement between City of San Leandro and 09/092020 <br />MuniServices for Audits/Compliance Reviews of Cannabis Businesses Exhibit A — Page 1 of 1 <br />