Attachment 1 - HdL Cannabis Consultant ProposalTown of
Los Gatos
Cannabis Management Services
January 24, 2022
SUBMITTED BY
HdL Companies
120 S. State College Blvd., Ste 200
Brea, CA 92821
hdlcompanies.com
CONTACT
David McPherson
T: 714.879.5000
E: dmcpherson@hdlcompanies.com
ATTACHMENT 1
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Proposal for Cannabis Management Services
for the Town of Los Gatos
January 24, 2022
TABLE OF CONTENTS
I. COVER LETTER ........................................................................................................................ 2
II. PROPOSED SCOPE OF SERVICES ............................................................................................. 3
III. COST ....................................................................................................................................... 7
IV. OPTIONAL SERVICES ............................................................................................................... 8
V. EXPERIENCE AND RESOURCES ................................................................................................ 8
VI. REFERENCES ......................................................................................................................... 17
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Proposal for Cannabis Management Services
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January 24, 2022
I. COVER LETTER
January 24, 2022
Robert Schultz
Town Attorney
Town of Los Gatos
110 E. Main Street
Los Gatos, CA 95030
Re: Proposal for Cannabis Outreach and Policy Development
Dear Mr. Schultz,
Thank you for the opportunity to submit this proposal for cannabis management services for the
Town of Los Gatos. The enclosed scope of services provides a comprehensive program to assist
the City with presentations at meetings and workshops, a community survey, an analysis of the
potential impacts and revenues that may be generated by cannabis businesses, development of
a draft regulatory ordinance and a tax ordinance, and additional hours of general subject matter
expertise to be used as needed by the Town.
HdL is recognized as the industry leader in the development, implementation and enforcement
of cannabis management programs for local governments in California. We have partnered with
over 175 California cities and counties on cannabis-related programs, including ordinance
development and review, community outreach and education, merit-based application and
permitting processes, cost recovery studies, compliance inspections, financial audits, fiscal
analyses and law enforcement training.
Our cannabis team has unmatched expertise, with more than 65 years’ combined experience in
the development, implementation and enforcement of cannabis regulatory and tax programs.
Our team members have conducted over 18,000 cannabis compliance inspections and financial
audits in California, Colorado and Nevada, and have reviewed, scored and processed over 3,500
cannabis business applications in the last six years in California. HdL Companies works solely
with public agencies and has no private-sector clients in the cannabis industry.
We look forward to the opportunity to partner with the Town of Los Gatos in developing a strategy
which meets your program needs. If you have any questions or require additional information,
please feel free to contact me by email at anickerson@hdlcompanies.com or David McPherson
at dmcpherson@hdlcompanies.com or by phone at 714.879.5000.
Sincerely,
Andy Nickerson
President, HdL Companies
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Proposal for Cannabis Management Services
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January 24, 2022
II. PROPOSED SCOPE OF SERVICES
The Town of Los Gatos currently prohibits any and all commercial cannabis businesses. In
January of 2021, the Los Gatos Town Council gave direction to staff to explore possibilities for
allowing licensed cannabis business within the town limits.
In response to this direction, the Town Attorney held a series of 10 meetings with various
community groups to gather input from the public. The majority of the public in attendance
expressed an interest in allowing cannabis businesses within the Town as a means of
generating revenue, but also expressed concerns about potential health and safety impacts.
Staff also conducted an online survey to gauge the community’s interest, opposition or
concerns.
On January 18th, staff provided an update and report to the Council outlining the responses
from the community and requesting authorization to engage the services of a cannabis
consultant to evaluate potential amendments to the Town’s cannabis ordinance and the
development of a cannabis tax ordinance to be placed before the voters at the November
general election. The Council approved this request on a 4 to 1 vote and approved a budget
adjustment of $50,000 for this work.
It is anticipated the selected consultant will conduct further outreach to the community and will
develop information to help inform the Council’s decision making on the issue. This may include
preparation of a fiscal analysis to provide projections for the impacts and potential revenues that
may be generated from a cannabis tax, as well as presentations to the Council, Planning
Commission, Finance Commission or other boards or committees, along with public workshops
and an online community survey.
The consultant would also assist the Town in developing a new or amended cannabis regulatory
ordinance and a commercial cannabis business tax ordinance to be placed before the voters at
the November ballot. It is anticipated that approval and implementation of the regulatory
ordinance would likely be dependent upon voter approval of the tax measure. It is also
understood that approval of any cannabis regulatory ordinance would require some level of
CEQA revue, which would likely not occur until the voters have provided their concurrence.
It’s anticipated that the Town may allow up to 3 cannabis retailers, but that there is likely not
demand or support for cultivation, manufacturing or distribution businesses. Direction regarding
the number and type of businesses to allow will ultimately be up to the Town Council.
To assist with this endeavor, the town is now requesting that HdL provide a proposal with the
following scope of services:
A series of meetings with individual Town Council Members to provide a common
baseline understanding of the legal cannabis industry and to address questions or
concerns they may have.
Attendance or presentations at up to 4 public meetings or workshops to explore issues
or concerns from the community.
Conducting an online community survey to gauge overall support or opposition.
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Proposal for Cannabis Management Services
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A fiscal study to analyze the impacts and potential revenues that could be generated by
cannabis businesses, as well as sales tax revenues that are currently being lost through
leakage to deliveries from nearby communities.
Developing a draft cannabis tax ordinance and associated ballot measure to be placed
before the voters in November.
Developing a draft cannabis regulatory ordinance to provide a regulatory program,
should the tax measure be approved by the voters.
Additional hours of general subject matter expertise to be used as needed.
Each of these service objectives is described in greater detail below.
Objective 1: Attendance, Support or Presentations at Meetings or Workshops
HdL shall provide attendance or presentations at up to 5 meetings or workshops to help inform
discussion and development of a potential cannabis ordinance and associated regulatory
program. It is anticipated that this objective may include a series of individual meetings with
each Council Member, a public meeting of the Town Council to provide policy direction,
attendance at meetings of the Planning Commission, Finance Commission or other boards or
committees, and the first reading of the draft regulatory ordinance. These meetings are
described below.
A series of meetings with individual members of the Town Council to discuss issues and
to address potential questions or concerns from the community. This series of meetings
would count as a single meeting for purposes of this proposal.
A presentation at a public meeting or workshop to provide an overview of what a
regulated cannabis industry might look like for the Town, including revenue projections.
This meeting would also provide an opportunity for the Town Council to provide policy
direction to staff for development of a regulatory ordinance.
Attendance and support at a Planning Commission hearing for consideration of the draft
cannabis regulatory ordinance.
Attendance and support at a meeting of the Finance Commission or other boards or
committees as needed or requested
Attendance and support at the first reading of the cannabis regulatory ordinance before
the Town Council.
The cost for this objective includes planning and coordination with staff, preparation of a
presentation or materials as necessary, meetings attendance, and any follow up. The actual
use and scheduling of these meetings would be determined in consultation with Town staff. This
objective assumes that all meeting attendance would be virtual. Physical attendance would
incur an additional travel charge.
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Proposal for Cannabis Management Services
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Objective 2: Conduct a Community Survey
HdL shall design and conduct an online community survey that will gather input from residents
to gauge their level of support, opposition, interest or specific areas of concern regarding
possible commercial cannabis businesses in the Town of Los Gatos. The survey will be
designed so that responses can be keyed to the demographics of the Town to ensure they
accurately reflect the sentiments of Los Gatos residents and to minimize the potential for
intentionally skewing the results.
HdL will prepare a list of questions and any other content for the survey. The Town will host the
survey on its website using a readily-available service such as Survey Monkey or OpenGov.
Surveys may also be circulated in hard-copy at in-person community meetings, if so desired by
the Town. HdL shall compile all survey responses and shall provide a written report
summarizing the results.
Objective 3: Conduct a Fiscal Analysis
Consultant HdL shall conduct a fiscal analysis of the potential cannabis industry in the Town of
Los Gatos to help inform development of a commercial cannabis business tax ordinance and
associated ballot measure. The analysis would seek to develop estimates for the number and
size of each type of commercial cannabis business that may seek to locate in the Town, as well
as estimates for the gross receipts and tax revenue that may be generated from each type of
business under a variety of tax structures and rates.
The analysis would focus primarily on cannabis storefront retailers as the most likely business
type to establish itself within the Town. The analysis would discuss both the potential for
collecting new revenue through a cannabis business tax and the potential to recapture existing
retail taxes that are currently being lost through leakage to deliveries made into the Town by
cannabis retailers from nearby communities.
This proposal assumes that HdL will provide one initial draft report for staff to review and critique
plus one iterative draft that will incorporate any requested revisions prior to providing the final
report. Any additional drafts, iterations or documentation that may be requested by the City
would be in addition to the costs shown in the table below and shall be billed at HdL’s hourly
rate. HdL will advise the Town in advance if additional requested revisions may result in
potential exceedances.
Objective 4: Develop Draft Cannabis Regulatory Ordinance
HdL shall develop a draft commercial cannabis regulatory ordinance that is consistent with State
laws and reflects industry best practices. HdL will work with Town staff to identify local concerns
and priorities, including land use issues and sensitive uses, and to design appropriate regulatory
processes and mitigations as necessary to protect the health, safety and welfare of the
community. The ordinance will allow the Town to specify the number and types of businesses
to be permitted, application and renewal procedures, location requirements, site security
measures, inspections and enforcement protocols, operational procedures, and other
requirements specific to each allowable type of cannabis business.
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Objective 5: Develop Draft Cannabis Tax Ordinance
HdL shall develop a draft commercial cannabis tax ordinance to generate Town revenues from
licensed cannabis businesses. The ordinance will set maximum tax rates for each type of
cannabis business permitted by the Town and will allow the Town Council to set the rates as
desired up to the maximum rate. The ordinance shall also specify the schedule and procedures
for remitting taxes and shall allow the Town to conduct audits of cannabis businesses to ensure
they are reporting and remitting the proper amounts.
HdL shall also provide the ballot resolution as necessary to place the tax measure on the ballot
and shall provide revenue projections as required for the ballot statement.
Objective 5: Technical Assistance and Subject Matter Expertise
HdL will provide up to 20 hours of general consulting to be utilized on an as-needed basis at the
Town’s request. Such assistance may include technical assistance, subject matter expertise,
education, monitoring of changes to State laws and regulations, participation in conference
calls, responding to staff inquires via phone and email, reviewing staff reports to the Town
Council, assisting with responses to inquiries from the public, or other issues yet to be
determined as requested by the Town.
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Proposal for Cannabis Management Services
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III. COST
The proposed services are broken down into specific line items in the cost table below. This
proposal does not include any additional items that are not contemplated by this scope of
services. Any additional services requested by the City will be billed at HdL’s hourly rate.
Prices are valid for 90 days from the date of this proposal to allow time for consideration and
negotiating a service agreement. Once under contract, prices shall be honored for the first full
year, with successive years subject to an annual increase based upon the Consumer Price
Index for the Los Angeles-Long Beach-Anaheim region.
Scope of Service Objectives
Estimated
Cost
Objective 1: Attendance or Presentations at Meetings or Workshops
Assumes 5 remote meetings @ $2,000 each
$10,000
Objective 2: Conduct a Community Survey
$9,000
Objective 3: Conduct a Fiscal Analysis
Generally $10,000 to $20,000; depends on specifics
$10,000
Objective 4: Develop a Draft Cannabis Regulatory Ordinance
$8,000
Objective 5: Develop a Draft Cannabis Tax Ordinance $8,000
Objective 6: Technical Assistance and Subject Matter Expertise
Assumes 20 hours at $250/hr
$5,000
Travel (if and as needed for meeting attendance) $100 per day
TOTAL NOT TO EXCEED $50,000
All City costs other than those associated with development of the cannabis tax
measure may be fully recoverable from applicants or permittees.
Conflicts of Interest and Non-Disclosure
HdL Companies works solely with public agencies and has no private-sector clients in the
cannabis industry.
Drafts and Final Work Products
All work products assume one initial draft for review and comment, one iterative draft to
incorporate any desired changes, and one final draft for presentation or publication. Additional
drafts requested by the client may result in additional charges at HdL’s hourly rate.
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Proposal for Cannabis Management Services
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IV. OPTIONAL SERVICES
Cost Recovery Fee Analysis
HdL will conduct a fiscal analysis to determine appropriate application and permitting fees. The
analysis shall consider the costs of all Town staff time, overhead, fringe benefits, consultants
and any other services associated with each step of the cannabis permitting and regulatory
process, including both initial application processing and annual permit renewals. HdL staff has
experience developing cannabis regulatory fees and doing a “fit gap” analysis of staff
responsibilities and time allotted to this program to establish appropriate fees for the Town’s
level of oversight and enforcement of the regulatory process.
Application Process Development
HdL shall design an application process that includes review, scoring, ranking, interviews and
assistance with final selection of cannabis business permittees. The process shall be tailored to
provide merit-based ranking or a lottery where appropriate or required for awarding a specified
number of permits and to provide a quality assurance standard for those business types where
there is no such limit. The process shall include evaluation criteria consistent with state law and
the Town’s ordinance, to ensure that applicants have addressed all requirements before being
allowed to move forward to the permitting process.
HdL will advise the Town on the most appropriate process for its needs, depending upon the
number of permits available and the anticipated number of applicants. HdL shall provide all
necessary application forms, as well as procedures, guidelines, indemnification forms,
background information releases, and other required documents and shall ensure that all
information desired by the Town is incorporated into the application form and procedures.
Application Reviews, Ranking and Interviews
HdL staff will conduct an initial screening of all applications for completeness based upon an
objective checklist of required documentation. Applications which have been deemed
complete will move forward for a full review, including scoring and ranking. Applicants must
provide detailed information on how they plan to meet the required criteria. An applicant’s
point score shall be based on their demonstrated ability to meet or exceed minimum
requirements in each category.
Reviews shall include narrative comments that identify both strengths and weaknesses of
each application as well as any deficiencies or areas of concern. Reviews shall be adequately
detailed to inform the subsequent interview process but shall not contain any
recommendations for approval or denial, other than a numerical score.
HdL will design and conduct an interview panel for all applicants that receive passing scores.
The interview panel shall consist of designated Town staff, assisted by a subject-matter expert
from HdL serving as facilitator. Interviews shall be one hour long, with a half hour between to
allow for reaction, discussion and note taking by the panel.
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Supplemental Background Checks
HdL is qualified to provide background checks of all owners, principals, managers and
employees of cannabis businesses to supplement the State-required Live Scan fingerprint
check, which will only disclose Department of Justice (DOJ) records regarding arrests or
convictions. Our supplemental background process expands upon the Live Scan information
by checking the subject’s social security number and up to 5 variations of their name or aliases
against over 200 million databases nationwide.
Our supplemental background checks can identify other factors that local governments may
wish to consider before granting discretionary business licenses or permits, including other
felony offenses, misdemeanor convictions, arrest records, civil judgements, restraining
orders, the terrorist screening database, the national sex offender registry, delinquent child
support payments, bankruptcies, employment and credit records, and more.
HdL provides an online portal for applicants to submit their application and authorization for
background checks and all necessary documentation. Applicants provide their payment
directly to HdL through the portal, so there is no cost to the City.
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V. EXPERIENCE AND RESOURCES
Company Profile
Founded in 1983, HdL is a consortium of three companies established to maximize local
government revenues by providing audit, compliance, economic development, consulting
services and software products. Its audit and consulting services include sales, use and
transaction taxes, property taxes, transient occupancy taxes, and a Cannabis Management
Program. The firm also provides a variety of enterprise software processing tools for
business licensing, code enforcement, animal control, building permits and tracking/billing of
false alarms. HdL’s systematic and coordinated approach to revenue management and
economic data analysis is currently being utilized by over 500 agencies in six states. The
firm currently serves 49 counties, 311 cities and 132 transactions tax districts in California.
HdL’s key staff has extensive experience serving local government and many have previously
held positions in city management, finance, planning, economic development or revenue
collection. HdL is a Corporate Partner of the League of California Cities and California State
Association of Counties and works extensively with the County Auditor’s Association of
California, California Society of Municipal Finance Officers (CSMFO) and California
Municipal Revenue and Tax Association (CMRTA) on anticipation and planning of programs
to strengthen local government revenues.
This close understanding of local government needs coupled with extensive databases
and advanced methodology provides for the most relevant, productive and responsive
revenue recovery; forecasting; and economic services available.
Our team of professionals has over 65 years of direct experience establishing and
implementing cannabis regulatory and taxation programs, including establishing land-use
regulations, permit processes, staffing plans, and cost recovery fees; structuring
cannabis business tax fees; regulatory compliance; financial audits; and law enforcement
training. Our team has conducted over 18,000 cannabis compliance inspections and
investigations in California, Colorado and Nevada.
Key Personnel
David McPherson, Compliance Director
David McPherson works with local agencies to prepare them to mitigate regulatory issues
surrounding Proposition 64 and SB 94. Prior to joining HdL, David served 28 years in local
government for the County of Orange and the cities of Newport Beach, San Jose and
Oakland. David’s experience as a law enforcement officer, compliance auditor, and tax
administrator has provided him a wealth of experience that makes him uniquely qualified to
manage HdL’s Cannabis Management Program. While working for the City of Oakland, he
became the first Tax Administrator in the country to successfully tax, regulate and audit
medical marijuana businesses. David has over 10 years of experience working with cannabis
regulatory programs.
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David is one of the state’s most recognized experts in cannabis regulatory policies,
compliance implementation and tax policies. His unique knowledge in horticulture,
processing and dispensary operations while working for the City of Oakland has made him
one of the pioneers in creating a Cannabis Management Program. He uses his experience
to assist local and state agencies in developing cannabis policies for regulation, compliance,
auditing and economic development. He worked closely with the League of Cities on the
development of the Medical Cannabis Regulation and Safety Act (MCRSA) and helped shape
SB 94, the Medicinal Adult-Use Cannabis Regulation and Safety Act (MAUCRSA).
David provides technical support on cannabis-related matters to the League of Cities, the
Police Chief’s Association, Rural County Representatives of California and the California
State Association of Counties. In addition, David is working collaboratively with the
Department of Consumers Affairs, Department of Food & Agriculture, Department of Health
Services and the California Department of Tax and Fee Administration on the implementation
of best practices for regulating the cannabis industry for local agencies.
David received his Bachelor’s Degree in History from California State University, Fullerton
and his Master’s Degree in Public Administration from California State University, Long
Beach. While at Long Beach, he was named “Future Urban Administrator of the Year”.
Matt Eaton, Deputy Compliance Director
Matt Eaton is the Deputy Compliance Director at HdL and plays a critical role in implementing
the Cannabis Compliance Program for local agencies. Prior to joining the firm, he was a
progressive law enforcement professional with 30 years’ experience conducting
criminal/regulatory investigations, and corporate/individual background investigations.
While working as a Supervisory Investigator at the Colorado Department of Revenue in the
Marijuana Enforcement Division (MED), Matt managed criminal investigators and civilian
staff in the Denver Metro and Longmont field offices. During his six-year tenure at the MED,
he conducted approximately 10,000 criminal investigations and compliance reviews,
including regulatory and financial investigations. He is a subject matter expert on track and
trace systems and understands the complexity of reviewing data to ensure businesses are
in compliance with state and local regulations. Matt was responsible for planning, developing
and implementing report and field inspection protocols for the agency. He also played an
instrumental role in recommending changes to current regulations and identifying essential
language for new legislation in Colorado. Matt is well known for his ability to maintain working
relationships with cannabis industry leaders and external stakeholders in resolving issues.
Matt received his Bachelor of Science Degree from Biola University and maintained Police
Officer Service Training (POST) certification for over 30 years in California and Colorado. He
has also served as an adjunct instructor teaching law enforcement principle related to
criminology, correctional processes, procedural law, interviews, interrogations and criminal
evidence at AIMS Community College in Greeley, Colorado.
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Ajay Kolluri, Deputy Director of Policy and Audits
Ajay Kolluri is the Deputy Director of Audits and Operations for HdL’s Cannabis Division. Ajay
is responsible for overseeing the cannabis audit team and the daily operations of the division,
which includes special projects such as community outreach, surveys, grant solicitation,
revenue analysis, cost recovery fee studies, contracts, budgeting, and marketing. Ajay
previously served as Program Manager for the Office of Cannabis Oversight (OCO) at City
of Long Beach. Working within the City Manager’s Office, Ajay was responsible for the
licensing, regulation and enforcement of all commercial cannabis activity in the City, with one
of the largest legal cannabis markets in the state. During his tenure with the OCO, Ajay
oversaw the issuance over 200 cannabis business licenses, generating over $10 million in
annual revenue for the City. Ajay has experience in all aspects of cannabis oversight,
including public health and education, planning and zoning, building inspections,
enforcement, social equity, fee development, economic analysis and revenue projections.
Prior to overseeing the OCO, Ajay worked in public finance, serving as Budget Analyst for
the Department of Financial Management in the City of Long Beach. Ajay holds a Bachelor’s
degree in business economics from the University of California, Santa Barbara, and a
Master’s degree in public policy from the University of Michigan.
Mark Lovelace, Senior Policy Advisor
Mark Lovelace has 16 years of broad experience in public policy, community engagement
and advocacy and is recognized as a leader in advancing the statewide discussion of medical
and recreational cannabis as a policy issue in California.
Mark served on the Humboldt County Board of Supervisors from 2009 through 2016 where
he was instrumental in developing a comprehensive approach to regulating cannabis,
including a voter-approved tax on commercial cultivation and an innovative track and trace
pilot program. Mark established and co-chaired the Medical Marijuana Working Group for
the California State Association of Counties (CSAC) and helped draft CSAC’s legislative
platform for cannabis issues. Mark pioneered the first regional summit on cannabis issues
in 2015 which helped guide the development of SB 643 and AB 243, two components of the
Medical Cannabis Regulation and Safety Act (MCRSA).
Mark has worked extensively with public agencies and statewide associations on cannabis
issues, including CSAC, Rural County Representatives of California, the Association of
California Water Agencies, the North Coast Resource Partnership, California Department of
Fish and Wildlife, the State Water Board, the North Coast Regional Water Board, the Bureau
of Cannabis Control, State legislators, and others. He has led numerous presentations,
workshops and panel discussions on cannabis issues and has been a sought-after speaker
on the topic for government agencies, community organizations and industry groups.
Mark received his Bachelor of Science degree in Industrial Design from San Jose State
University. Prior to his time on the Board, he worked for many years as a respected advocate
on land use, planning, development and environmental issues.
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David Ross, Senior Compliance Inspector
David Ross is a Certified Fraud Examiner with 7 years of experience conducting gaming and
non-gaming audits and investigations of tribal gaming facilities. David’s experience includes
conducting forensic accounting investigations into cash larceny, expense reimbursement
fraud, check fraud, credit card fraud, payroll fraud, wire fraud, insider trading, construction
fraud in addition to litigation support.
David previously worked as Surveillance Officer and Internal Auditor for the Shingle Springs
Tribal Gaming Commission, where he was responsible for analyzing financial statements for
a facility with revenues exceeding $20 million per month. David also analyzed internal
controls and established policies and procedures to ensure compliance with federal, state
and local regulations. In addition, David conducted surveillance reviews and investigations
into criminal activity including check and credit card fraud, skimming, money laundering, drug
activity and other violations.
David holds a Bachelor’s Degree in Business Administration from Vanguard University in
Costa Mesa and a Master’s Degree in Finance from California State University San
Bernardino. He is a member of the Association of Certified Fraud Examiners.
Michelle Shaw, Compliance Inspector
Michelle conducts onsite inspections, examinations and other actions to monitor compliance
with established standards for local licensed cannabis businesses. Prior to joining HdL, she
was a Compliance Specialist Officer at a large, multinational bank where she managed,
validated and oversaw the effectiveness and accuracy of numerous compliance issues within
the consumer retail space. Throughout her eight years of experience at the bank, she
performed assessments of affiliate businesses to determine compliance/non-compliance of
their processes and procedures pursuant to bank standards and state regulations.
A graduate of Cypress College, Michelle holds a Foundations of Banking Risk certificate from
the Global Association of Risk Professionals and a paralegal certificate from the Southern
California College of Business and Law.
Jeff Burris, Background Investigator / Compliance Inspector
Jeff Burris has over 28 years’ experience as a Law Enforcement Professional. Jeff began his
career with the Orange County Sheriff’s Office before moving to the Ontario Police
Department, where he advanced to Corporal, Police Detective and Sergeant before retiring
as a Lieutenant.
Jeff worked various investigative assignments during his career, including both criminal and
non-criminal investigations. While working as a Police Detective Jeff conducted personnel
background investigations for sworn, non-sworn, administrative, and confidential employees.
These investigations included criminal checks, credit checks, prior employment verification,
personal reference verification, driving records, pre-polygraph questioning, neighborhood
canvassing, and oral interviews. His assignments also included annual State audits for
regulatory compliance.
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Jeff received his Bachelor of Science degree in Occupational Management from the
California State University in Long Beach. Jeff has completed numerous specialized training
courses in investigative techniques, including a course in background investigations by the
California Commission on Peace Officer Standards and Training (CA POST), and is a former
member of the California Background Investigators Association (CBIA).
Elizabeth Eumurian, Senior Auditor
Elizabeth Eumurian is a Senior Auditor at HdL. Her primary role is to conduct financial audits,
evaluate cannabis applications and conduct background checks. As part of the audit program,
she will be conducting and preparing analytical information through the CATS™ program to
prepare Tax Analytical Remittance Reports (TARR) summaries to evaluate under reporting or
anomalies in the remittance of tax payments to local jurisdictions.
Elizabeth previously worked as a senior auditor in the entertainment industry. In this role, she
executed testing procedures for targeted audit programs, analyzed findings and prepared
audit and compliance reports. She also has experience working for a large financial institution
analyzing data for reporting anomalies and performing internal audits. Elizabeth has recently
done work for Blythe, California City, Coachella, Cotati, Desert Hot Springs, Long Beach,
Mammoth Lakes, Moreno Valley, Perris, San Bernardino, and Vallejo.
Elizabeth earned her Bachelor of Arts degree in History from California State University and
holds a certificate in CannaBusiness from Oaksterdam University.
Odette Mikhail, Auditor
Odette Mikhail conducts cannabis revenue audits at HdL. Odette previously worked as a
senior auditor at public accounting firms. In this role, she executed testing procedures for
audit and review engagements, identified accounting issues, reviewed internal controls, and
prepared financial reports and statements. Odette earned her Bachelor of Science degree in
Accounting and Business Administration from Ain Shams University in Cairo, Egypt.
Tao Lu, Auditor
Tao Lu works as an Auditor for HdL’s Cannabis Management Team. Tao has two and a half
years’ experience as an accountant with an emphasis in information technology and food
manufacturing industries. He also has public audit work experience at RSM China. Tao was
born and raised in China. He earned a Bachelor’s Degree in Accounting and Finance from
Syracuse University in New York before relocating to Southern California with his family.
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Valerie Carter, Auditor
Valerie Carter works as an Auditor for HdL’s Cannabis Management Team. Valerie has over
5 years of public sector work experience focusing on public policy, auditing and revenue tax
implementation. She was a Tax Auditor II for the City of Oakland’s Revenue Management
Bureau and an Assistant Management Analyst for the City of Berkeley’s Transportation
division. Valerie earned a Bachelor’s Degree in Business Administration from Cal Poly
Pomona, with an emphasis on Finance, Real Estate, and Law.
Eric Magana, Auditor
Eric Magana works as an Auditor for HdL’s Cannabis Management Team, conducting
revenue audits of licensed cannabis businesses to ensure they are accurately reporting their
revenues and remitting the proper amount of fees or taxes. Prior to joining HdL, Eric worked
as a Loan Specialist for the U.S. Small Business Administration, where he processed over
5,000 business loans and grant applications. Eric holds a Bachelor’s Degree in Economics
and Administrative Studies from University of California at Riverside.
Teresa Schneider, Background Investigator / Compliance Inspector
Teresa Schneider served for 28 years with the Montclair Police Department, including 12
years in the Background Investigations Unit. In this capacity, Teresa was responsible for
conducting background investigations of all City business license applicants, as well as all
sworn and non-sworn positions within the police and fire departments and of civilians
requesting access to police department records.
Theresa previously served 4 years in the U.S. Army’s nursing program at Fort Campbell,
Kentucky. During this time she attended college at the University of Kentucky and Austin
Peay State University. After receiving an Honorable Discharge in 1990, Teresa was hired by
the Montclair Police Department. During her 28-year career, she worked numerous
assignments, including patrol, K9, detective bureau, court liaison, volunteer coordinator, and
red-light automated enforcement. Teresa received many awards throughout her career,
including Officer of the Year.
Cheryl Lee-Steele, Business Application Reviewer
Cheryl Lee-Steele is a Business Application Reviewer at HdL whose primary role is to
evaluate cannabis business applications for compliance with State law, local ordinance and
industry best practices. A small business owner and bookkeeper for over 30 years, she has
direct knowledge of best business practices and how to comply with regulatory requirements.
Cheryl attended Chaffee College for accounting and is a Certified Public Bookkeeper through
the National Association of Certified Public Bookkeepers.
16
Proposal for Cannabis Management Services
for the Town of Los Gatos
January 24, 2022
Lisa Davis, Business Application Reviewer
Lisa Davis is a Business Application Reviewer at HdL whose primary role is to evaluate
cannabis business applications for compliance with State law, local ordinance and industry
best practices. A small business owner and operator for 20 years prior to joining the firm,
she is familiar with operational best practices, inventory control measures and compliance
with government and industry regulations and standards.
Kristi Lervold, Administrative Assistant
Kristi is the Administrative Assistant for cannabis team. In this role she supports individual
team members, coordinates internal processes, and assists with client requests, contracts,
billing reconciliation and invoicing. Kristi’s 18-year career includes ten years as the
administrative assistant to HdL’s CFO, handling various operational responsibilities and
supporting financial functions, as well as experience in the occupational health industry,
facilitating services for federal, state, and local government clients.
Kristi holds a Bachelor’s of Science degree in Business Management with a minor in
Business Administration.
17
Proposal for Cannabis Management Services
for the Town of Los Gatos
January 24, 2022
VI. REFERENCES
City of Monterey
Hans Uslar
City Manager
Phone: 831.646.3760
Email: uslar@monterey.org
City of Watsonville
Suzi Merriam
Community Development Director
Phone: 831.768.3074
Email: suzi.merriam@cityofwatsonville.org
City of Oceanside
Jonathan Borrego
Deputy City Manager
Phone: 760.435.3918
Email: jborrego@oceansideca.org
City of Union City
Mark Evanoff
Deputy City Manager
Phone: 510.675.5345
Email: marke@unioncity.org
City of Redwood City
Alex Khojikian
Deputy City Manager
Phone: 650.780.7302
Email: akhojikian@redwoodcity.org