San Luis Obispo City Council
May 5, 2026

City Council
AGENDA

Tuesday, May 5, 2026, 5:30 p.m.

Council Chambers, 990 Palm Street, San Luis Obispo
Agenda has been amended to add a Closed Session Item 1b. Closed Session will begin at 4:30 PM Council meetings may be viewed remotely on Channel 20, the City’s YouTube Channel, and on the City’s website under the Public Meeting Agendas web page. Attendees of City Council or Advisory Body meetings are eligible to receive one hour of complimentary parking; restrictions apply, visit Parking for Public Meetings for more details.

INSTRUCTIONS FOR PUBLIC COMMENT:

Public Comment prior to the meeting (must be received 3 hours in advance of the meeting):

Mail - Delivered by the U.S. Postal Service. Address letters to the City Clerk's Office at 990 Palm Street, San Luis Obispo, California, 93401.

Email - Submit Public Comments via email to [email protected]. In the body of your email, please include the date of the meeting and the item number (if applicable). Emails will not be read aloud during the meeting.

Voicemail - Call (805) 781-7164 and leave a voicemail. Please state and spell your name, the agenda item number you are calling about, and leave your comment. Verbal comments must be limited to 3 minutes. Voicemails will not be played during the meeting. *All correspondence will be archived and distributed to councilmembers, however, submissions received after the deadline may not be processed until the following day.

Public Comment during the meeting:

Meetings are held in-person. To provide public comment during the meeting, you must be present at the meeting location.

Electronic Visual Aid Presentation. To conform with the City's Network Access and Use Policy, Chapter 1.3.8 of the Council Policies & Procedures Manual, members of the public who desire to utilize electronic visual aids to supplement their oral presentation must provide display-ready material to the City Clerk by 12:00 p.m. on the day of the meeting. Contact the City Clerk's Office at [email protected] or (805) 781-7114.

Pages

1. CLOSED SESSION (4:30 PM START)

1.a CALL TO ORDER
Mayor Erica A. Stewart will call the Closed Session of the San Luis Obispo City Council to order at 4:30 PM in the Council Hearing Room at City Hall, 990 Palm Street, San Luis Obispo.

1.b CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Pursuant to Government Code § 54956.8
Property: Assessor Parcel Number 002-412-010
Agency Negotiators: Robert Hill, Natalie Harnett,
Greg Hermann, Christine Dietrick,
Whitney McDonald
Negotiating Parties: Mello Lucille Trust
Under Negotiation: Price and terms of payment.

1.c ADJOURNMENT
The Council will hold a Regular Meeting of the San Luis Obispo Council in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo.

2. LAGUNA MIDDLE SCHOOL COMMUNITY SERVICE AWARDS
PRESENTATION (5:00 PM TO 5:30 PM)
The City Council will recognize Laguna Middle School students who completed 30 hours or more of community service.

3. CALL TO ORDER
Mayor Erica A. Stewart will call the Regular Meeting of the San Luis Obispo City Council to order.

4. PLEDGE OF ALLEGIANCE
Council Member Mike Boswell will lead the Council in the Pledge of Allegiance.

5. PRESENTATIONS

5.a NATIONAL FOSTER CARE MONTH PROCLAMATION
Mayor Stewart will present a proclamation declaring May as "National Foster Care Month."

5.b PEACE OFFICERS MEMORIAL DAY
Mayor Stewart will present a proclamation declaring May 15, 2026 as Peace Officers Memorial Day.

5.c CALIFORNIA TOURISM MONTH
Mayor Stewart will present a proclamation declaring May as California Tourism Month.

5.d CITY MANAGER REPORT
Receive a brief report from City Manager Whitney McDonald.

6. PUBLIC COMMENT PERIOD FOR ITEMS NOT ON THE AGENDA
The Council welcomes your input. State law does not allow the Council to discuss or take action on issues not on the agenda, except that members of the Council or staff may briefly respond to statements made or questions posed by persons exercising their public testimony rights (Gov. Code sec. 54954.2). Staff may be asked to follow up on such items.

7. CONSENT AGENDA
Matters appearing on the Consent Calendar are expected to be noncontroversial and will be acted upon at one time. A member of the public may request the Council to pull an item for discussion. Pulled items shall be heard at the close of the Consent Agenda unless a majority of the Council chooses another time. The public may comment on any and all items on the Consent Agenda within the three-minute time limit.

Recommendation:

To approve Consent Calendar Items 6a to 6g.

7.a WAIVE READING IN FULL OF ALL RESOLUTIONS AND

ORDINANCES
Recommendation:

Waive reading of all resolutions and ordinances as appropriate.

7.b MINUTES REVIEW - APRIL 21, 2026 COUNCIL MINUTES 11
Recommendation:

Approve the minutes of the City Council meeting held on April 21, 2026.

7.c CONSIDERATION OF THE 2026-27 HUMAN SERVICES GRANT

FUNDING RECOMMENDATIONS
19 Recommendation:

As recommended by the Human Relations Commission,
approve the 2026-27 Human Services Grant funding allocations in the amount of $150,000;

1. Authorize the City Manager to execute agreements with each grant recipient; and

2. Authorize staff to negotiate the insurance terms with the grant recipients as needed, in consultation with the City Attorney’s Office and the City's Risk Manager.

3. 7.d AUTHORIZATION TO ADVERTISE A REQUEST FOR

QUALIFICATIONS FOR HUMAN RESOURCES CONSULTING

SERVICES
41 Recommendation:

Authorize the issuance of a Request for Qualifications (“RFQ”) for Human Resources consulting services; and

1. Authorize Human Resources to create an On-Call List from the proposals received and deemed to be responsive; and

2. Authorize the City Manager or designee to execute contracts on an as-needed basis, with the agencies in the on-Call List during the five-year period July 1, 2026 – June 30, 2031.

3. 7.e GRANT AGREEMENT FOR THE ESTABLISHMENT OF A MEDIATION

SERVICES PROGRAM
73 Recommendation:

Authorize the City Manager to execute a one-time grant agreement, in a final form satisfactory to the City Attorney, with the Center for Dispute Resolution at San Luis Obispo College of Law for the establishment of a program to provide community mediation services and authorize the disbursement of funds in the amount of up to $10,000.

7.f APPOINTED OFFICIALS’ COMPENSATION 127
Recommendation:

Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, amending a Contract of Employment for City Manager,” approving an
amendment to the City Manager’s employment contract; and

1. Authorize the Mayor to execute the amended contract of employment with the City Manager, adjusting the City
Manager’s 401(a) contribution.

2. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, amending a Contract of Employment for City Attorney,” approving an amendment to the City Attorney’s employment contract; and

3. Authorize the Mayor to execute the amended contract of employment with the City Attorney, adjusting the City Attorney’s salary and expanding flexibility in the use of sick leave to care for a family member.

4. Adopt a Regular and Contract Employee Salary Schedule effective April 9, 2026, as required by California Public Employees Retirement System (CalPERS)

5. 7.g FINAL ADOPTION OF ORDINANCE NO. 1756 (2026 SERIES) AMENDING MUNICIPAL CODE SECTION 13.08.395 (PRIVATE
SEWER LATERALS/SYSTEMS) AND SECTION 13.08.396
(WASTEWATER FLOW OFFSET)
155
Recommendation:

Adopt Ordinance No. 1756 (2026 Series) entitled “An
Ordinance of the City Council of the City of San Luis Obispo, California, Amending Section 13.08.395 (Private Sewer
Laterals/Systems) and Section 13.08.396 (Wastewater Flow Offset) of the City of San Luis Obispo Municipal Code”, which modifies the Citywide Sewer Lateral Inspection Program to include repair or replacement of poor or failed condition laterals as determined through the Inspection Upon Sale process and dissolves the mandatory Wastewater Flow (Private Sewer
Lateral) Offset Program requirements.

1. Find the action exempt from the California Environmental Quality Act (CEQA).

2. 8. PUBLIC HEARING AND BUSINESS ITEMS

8.a INTRODUCE AN ORDINANCE AMENDING TITLE 5 (PERMITS,
LICENSES, AND REGULATIONS), TITLE 16 (SUBDIVISION
REGULATIONS), AND TITLE 17 (ZONING REGULATIONS) OF THE
MUNCIPAL CODE. (60 MINUTES)
179
Recommendation:

As recommended by the Planning Commission, introduce a Draft Ordinance entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, Amending Title 16 (Subdivision Regulations), Title 17 (Zoning Regulations), and Title 5 (Licenses, Permits, and Regulations) of the Municipal Code regarding Accessory Dwelling Units, Junior Accessory Dwelling Units, Urban Lot Splits, Mobile Homes, and other Clarifications and Changes to Regulations Associated with Housing, with an Exemption from Environmental Review (CEQA).”

8.b AUTHORIZATION TO ADVERTISE 2026 ROADWAY SEALING
PROJECT, SPECIFICATION NO. 2000617 (90 MINUTES)
257
Recommendation:

Approve the project plans and special provisions, plans and special provisions plans and special provisions for the 2026 Roadway Sealing Project, Specification Number 2000617; and,

1. Authorize staff to advertise for bids for the 2026 Roadway Sealing Project; and,

2. Authorize the City Manager to award the construction contract for the 2026 Roadway Sealing Project pursuant to Section

3.24.190 of the Municipal Code for the bid total, if the lowest responsible bid is within the Publicly Disclosed Funding Limit of $3,932,000; and,

3. Appropriate $236,542 from the unreserved SB1 Fund balance to the project; and,

4. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, Authorizing
Appropriation of $236,542 from unreserved SB1 Fund Balance to support the 2026 Roadway Sealing Project, Specification Number 2000617; and,

5. Authorize the Finance Director to make the following transfers to the 2026 Roadway Sealing Project Account (2000617):
a. Transfer $62,000 of Capital Outlay LRM from Bridge
Maintenance (2000029); and,
b. Transfer $100,000 of Capital Outlay LRM from the Traffic Maintenance and Replacement Project Account (No. 2001003); and,
c. Transfer $150,000 from Completed Projects; and,

6. 7. Authorize the City Engineer to approve Contract Change Orders up to the available project budget, including any amendments authorized by the City Manager.

8.c AMENDMENTS TO COUNCIL’S POLICIES AND PROCEDURES TO
IMPLEMENT SENATE BILL 707 UPDATES TO THE BROWN ACT (30

MINUTES)
341
Recommendation:

Adopt a Draft Resolution approving amendments to the Council Policies and Procedures for the implementation of Senate Bill 707, including the adoption of Disruption of Telephonic and/or Internet Services Policy.

9. LIAISON REPORTS AND COMMUNICATIONS
Not to exceed 15 minutes. Council Members report on subcommittee assignments, listed below, and other City activities. At this time, any Council Member or the City Manager may ask a question for clarification, make an announcement, or report briefly on their activities. In addition, subject to Council Policies and Procedures, they may provide a reference to staff or other resources for factual information, request staff to report back to the Council at a subsequent meeting concerning any matter or take action to direct staff to place a matter of business on a future agenda. (Gov. Code Sec. 54954.2) Mayor
Stewart
Vice Mayor
Francis
Council Member
Boswell
Council Member
Marx
Council Member
Shoresman
SLO Council of
Governments
Airport Land Use Community
Action
Partnership
Air Pollution
Control District
CP Campus
Planning
Committee
Regional
Economic Action
Coalition
Nacimiento Water
Project
SLO Climate
Coalition
County Water
Resources
Advisory
Committee
Downtown
Association
Board
CA Men’s
Colony Advisory
Committee
Zone 9 Advisory
Committee
Local Agency
Formation
Commission
Homeless
Services
Oversight
Committee
Performing Arts
Center
Commission
Integrated Waste
Management
Authority
SLO Regional
Transit Authority
Visit SLO
County Advisory
Committee
Central Coast
Clean Energy

10. ADJOURNMENT
The next Regular Meeting of the City Council will be held on May 19, 2026 at 5:30 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo.

LISTENING ASSISTIVE DEVICES for the hearing impaired - see the Clerk.

The City of San Luis Obispo wishes to make all of its public meetings accessible to the public. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the City Clerk’s Office at (805) 781-7114 at least 48 hours before the meeting, if possible. Telecommunications Device for the Deaf (805) 781-7410.

City Council meetings are televised live on Charter Channel 20 and the City's YouTube Channel: www.youtube.com/CityofSanLuisObispo. Agenda related writings or documents provided to the City Council are available for public inspection in the City Clerk’s Office located at 990 Palm Street, San Luis Obispo, California during normal business hours, and on the City’s website https://www.slocity.org/government/mayor-and-city-council/agendas-andminutes. Persons with questions concerning any agenda item may call the City Clerk’s Office at (805) 781-7114.
1 Council Minutes
April 21, 2026, 5:30 p.m.

Council Chambers, 990 Palm Street, San Luis Obispo
Council Members

Present:

Council Member Mike Boswell, Council Member Michelle
Shoresman, Vice Mayor Emily Francis, Mayor Erica A. Stewart (left meeting at 7:15 PM)
Council Members

Absent:

Council Member Jan Marx
City Staff Present: City Manager Whitney McDonald, Christine Dietrick, City Attorney, Teresa Purrington, City Clerk
_____________________________________________________________________

1. CLOSED SESSION (4:15 PM START)

1.a CALL TO ORDER
Mayor Stewart called the Closed Session to order at 4:17 PM in the Council Hearing Room of City Hall.

1.b CONFERENCE WITH LABOR NEGOTIATORS
ACTION: City Attorney Christine Dietrick indicated the Council met in Closed Session with the agency negotiator Nickole Domini. City Attorney Dietrick and City Manager McDonald were not in the Closed Session.

Nickole Domini told her that there was no reportable action taken.

1.c CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION ACTION: City Attorney Christine Dietrick indicated there was no reportable action taken.

1.d ADJOURNMENT
Closed Session adjourned at 5:30 PM to the Regular City Council meeting.

2. CALL TO ORDER

2 A Regular Meeting of the San Luis Obispo City Council was called to order on April 21, 2026 at 5:35 p.m. in the Council Chambers, 990 Palm Street, San Luis Obispo, by Mayor Stewart, with Council Member Marx absent.

3. PLEDGE OF ALLEGIANCE
Mayor Stewart led the Council in the Pledge of Allegiance.

Mayor Stewart announced that Item 7b would be moved to after Item 8a as she would be recusing herself from Item 7b as she is waiting for a determination on if she has a conflict on Item 7b due to her husband occupation as a realtor.

4. PRESENTATIONS

4.a CALIFORNIA CITIES WEEK
Mayor Stewart accepted the Proclamation on behalf of the League of California Cities Board.

4.b VOLUNTEER APPRECIATION WEEK
Mayor Stewart presented the Volunteer Appreciation Proclamation to Kiersten Anderson, Volunteer Coordinator for the City of San Luis Obispo.

4.c BIKE MONTH
Mayor Stewart presented a Proclamation to Hannah Heavenrich on behalf of SLO County Rideshare declaring May 2026 as Bike Month.

4.d CITY MANAGER REPORT
City Manager Whitney McDonald provided a report on upcoming projects.

5. PUBLIC COMMENT PERIOD FOR ITEMS NOT ON THE AGENDA
Public Comment:

Shawn Harris
--End of Public Comment--

6. CONSENT AGENDA
Public Comment:

Daniel Bohlman - Item 6c
David Smith - Item 6f
--End of Public Comment--
Motion By Vice Mayor Francis
Second By Council Member Shoresman

3 To approve Consent Calendar Items 6a to 6f.

Ayes (4): Council Member Boswell, Council Member Shoresman, Vice Mayor Francis, and Mayor Stewart
Absent (1): Council Member Marx
CARRIED (4 to 0)

6.a WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES Waive reading of all resolutions and ordinances as appropriate.

6.b MINUTES REVIEW - APRIL 7, 2026 COUNCIL MINUTES
Approve the minutes of the City Council meeting held on April 7, 2026

6.c COMMUNITY PARTNERSHIP AGREEMENT AND GRANT AGREEMENT

FOR RIGHETTI FISCALINI RANCH CONSERVATION EASEMENT WITH

THE LAND CONSERVANCY OF SAN LUIS OBISPO COUNTY

1. Approve a Community Partnership Agreement with The Land Conservancy of San Luis Obispo County; and

2. Approve a Grant Agreement for the Righetti Fiscalini Ranch conservation easement project; and

3. Authorize the City Manager to sign the Community Partnership Agreement and the Grant Agreement in a final form satisfactory to the City Attorney.

6.d APPROVE A MILLS ACT CONTRACT FOR LANDMARK PROPERTY AT 1421 GARDEN STREET
Adopt Resolution No. 11639 (2026 Series) entitled “Resolution of the City Council of the City of San Luis Obispo, California, approving a Historic Property Preservation Agreement between the City and the Owners of the Meredith House at 1421 Garden Street (Application No. HIST-0681- 2025),” as recommended by the Cultural Heritage Committee.

6.e REVIEW OF APPLICATION TO DESIGNATE 571 PISMO STREET AS A

HISTORIC LANDMARK
Adopt Resolution No. 11640 (2026 Series) entitled “Resolution by the City Council of the City of San Luis Obispo, California, designating the Property Located at 571 Pismo Street as a Landmark Historic Resource, called the George and Cordelia McCabe House (Application No. HIST - 0944-2025),” as recommended by the Cultural Heritage Committee.

4 6.f AUTHORIZATION TO AWARD TRANSIT OPERATION AND

MAINTENANCE SERVICES CONTRACT

1. Authorize the City Manager to award a contract to MV Transportation, Inc. for Transit Operation and Maintenance Services in a form approved by the City Attorney’s Office; and

2. Authorize the City Manager to approve contract amendments, provided that the cumulative value of all such amendments does not exceed 10 percent of the total contract amount, inclusive of all base term years.

7. PUBLIC HEARING AND BUSINESS ITEMS

7.a OVERVIEW OF VACANCIES AND RECRUITMENT AND RETENTION

EFFORTS
Human Resources Director Nickole Domini and Human Resources Manager Jeff Andrew provided an in-depth staff report and responded to Council questions.

Public Comments:

None
---End of Public Comment---
ACTON: By consensus the Council directed staff to receive and file the report.

8. STUDY SESSION

8.a 2026 WATER AND SEWER RATE STRUCTURE STUDY (60 MINUTES) Public Works and Utilities Director Aaron Floyd and Utilities Business Manager Shane Whitington provided an in-depth staff report and responded to Council questions.

Public Comments:

None
---End of Public Comment---
ACTION: By consensus the Council confirmed the City's prioritization of rate design attributes and directed staff to proceed with a four-year rate adoption period.

Mayor Stewart left the meeting at 7:15 PM

5 7.b ORDINANCE AMENDING TITLE 13 OF THE MUNICIPAL CODE

REGARDING PRIVATE SEWER LATERAL INSPECTIONS,

REPLACEMENTS, AND DISSOLUTION OF THE MANDATORY
WASTEWATER FLOW OFFSET PROGRAM (60 MINUTES)
Mayor Stewart declared a conflict on this item. Out of an abundance of caution is waiting for determination from the FPPC regarding if she has a conflict on this item due to her husband’s occupation as a realtor.

Utilities Branch Assistant Director Shawna Scott and Wastewater Deputy Director Chris Lehman provided an in-depth staff report and responded to Council questions.

Public Comments:

Dale Ginder
Garret Olson
Greg Wynn
Steve Delmartini
Stacy Schalde
---End of Public Comment---
Motion By Council Member Shoresman
Second By Council Member Boswell

1. Introduce Ordinance No. 1756 (2026 Series) entitled “An Ordinance of the City Council of the City of San Luis Obispo, California, Amending Section 13.08.395 (Private Sewer Laterals/Systems) and Section 13.08.396 (Wastewater Flow Offset) of the City of San Luis Obispo Municipal Code.”

2. Adopt Resolution No. 11641 (2026 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, Authorizing the Discretion of the Public Works and Utilities Director to Waive Wastewater Flow Offset Program Requirements and Resolution and Determination of Satisfaction of Conditions of Approval Related to Wastewater Flow Offsets.”

3. Find the actions exempt from the California Environmental Quality Act (CEQA).

6 Ayes (3): Council Member Boswell, Council Member Shoresman, and Vice Mayor Francis
Recused (1): Mayor Stewart
Absent (1): Council Member Marx
CARRIED (3 to 0)

9. LIAISON REPORTS AND COMMUNICATIONS
Vice Mayor Francis
 Attended the SLO County Housing Summit
 Attended the Clean California Community Ribbon Cutting  Participated in the Mock Council Meeting with Community Academy Participants
 Went on a tour of the SLO County Airport
 Attended the Volunteer Appreciation Luncheon
Council Member Boswell
 Attended the April 16th Community Action Partnership Meeting and Program Tour
 Attended the SLO County Housing Summit
 Attended the Clean California Community Ribbon Cutting  Attended the Peace Pole Ribbon Cutting
 Attended Community Academy Graduation
 Attended Earth Fest
 Went on a tour of the SLO County Airport
Council Member Shoresman
 Attended the Downtown Association Board Meeting
 Attended Community Academy Graduation
 Attended Earth Fest
 Attended the Volunteer Appreciation Event at Mitchell Park

7  Attended the Community Academy Graduation
 Holocaust Remembrance Day Event

10. ADJOURNMENT
The meeting was adjourned at 9:01 p.m. The next Regular City Council Meeting is scheduled for May 5, 2026 at 5:30 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo.

APPROVED BY COUNCIL: XX/XX/202X

Item 6c
Department: Administration
Cost Center: 1010
For Agenda of: 5/5/2025
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Samantha Vethavanam, Diversity, Equity, and Inclusion Admin Specialist SUBJECT: CONSIDERATION OF THE 2026-27 HUMAN SERVICES GRANT

FUNDING RECOMMENDATIONS

RECOMMENDATION

1. As recommended by the Human Relations Commission, approve the 2026-27 Human Services Grant funding allocations in the amount of $150,000;

2. Authorize the City Manager to execute agreements with each grant recipient; and

3. Authorize staff to negotiate the insurance terms with the grant recipients as needed, in consultation with the City Attorney’s Office and the City's Risk Manager.

POLICY CONTEXT
The purpose of the Human Relations Commission (HRC) is to advise and make recommendations to the City Council and the City Manager which promote and advance inclusion, mutual understanding, respect, and equitable treatment of all San Luis Obispo community residents. Recommendations made by the HRC to City Council help address social concerns and the needs of the community, including recommendations for funding under the Human Services Grant program. The Human Services Grant program provides financial support to non-profit organizations that promote the economic and social wellbeing of the City’s community members.

DISCUSSION
Background
The City’s Human Services Grant (HSG) program, previously called Grants-in-Aid, was originally discussed and approved by City Council on November 14, 1973, through a study session providing authority and responsibility to the HRC for funding and contract recommendations for Council consideration. The HSG is a competitive grant program that provides financial support to nonprofits that promote the economic and social well-being of the community. The HRC advises the City Council on funding priorities and grant recommendations. Applications requesting funding must include a program, project, or initiative tied to at least one funding priority, with the main funding priority taking precedence.

Item 6c
Funding Priorities
On August 6, 2025, staff from the Office of Diversity, Equity, and Inclusion brought revised HSG funding priorities to the HRC as part of the biennial review and update. The HRC provided feedback and a Community Needs Grant Workshop was held on September 3, 2025, where public comment was heard on the revised funding priorities, which were subsequently approved by the HRC. On October 21, 2025, the Council approved the revised funding priorities for the 2026-27 Human Services Grant program. The revised main funding priority is:

For the 2026-27 Fiscal Year, the main funding priority for the City of San Luis Obispo will be preventing and addressing homelessness. More specifically, the City will prioritize funding services that do the following (not listed in order of importance):
 Provide permanent housing solutions that can prevent homelessness or serve those experiencing homelessness
 Provide homelessness prevention activities that can prevent homelessness or serve those experiencing homelessness
 Provide interim housing solutions that can prevent homelessness or serve those experiencing homelessness
 Provide non-housing solutions that can prevent homelessness or serve those experiencing homelessness
More information regarding each eligible category listed above, including examples of what types of services could fall under each, was listed on the Human Services Grant webpage on the City’s website.

Council also reaffirmed secondary funding priorities to allow maximum flexibility for funding recommendations dependent upon the received applications. These priorities are not listed in order of importance and may receive funding if available:
 Hunger and malnutrition prevention
 Supportive physical and mental health services for those in need  Services for seniors, veterans, and/or people with disabilities in need  Supportive, developmental, and care services for children and youth in need  Services encouraging diversity, equity, and inclusivity in marginalized communities, including access to language services
The Office of Diversity, Equity and Inclusion’s (DEI) website and other messaging, including during required informational sessions, emphasized that the HRC will first fund all qualified applications that meet the main funding priority and only after qualified main priority applications are funded, will the HRC consider applications for the secondary funding priorities.

Furthermore, the Office of DEI emphasized that 100% of the activities funded through this

Item 6c
grant would need to occur within the City of San Luis Obispo and that grantees must make a concerted effort to primarily serve City residents with grant funds. For example, an organization requesting funds for their emergency shelter operations could only use those funds for emergency shelters within the City of San Luis Obispo.

HSG Application and Initial Review Process
On January 20, 2026, the Office of Diversity, Equity, and Inclusion formally launched the 2026-27 HSG program by advertising the availability of grant funds and information to the public, as well as to past applicants and nonprofits. HSG applications were due on February 24, 2026, by 5:00pm PST. The City received grant applications from 26 agencies requesting funding for programs totaling $452,125. After the application period closed, Office of Diversity, Equity, and Inclusion staff completed an internal review of the applications to ensure completeness and eligibility of program proposals. During this review period, two applications were removed from consideration; one due to missing documents and the other due to the fact that the agency requesting funds would be acting as a pass-through entity. Additionally, one other applicant withdrew from consideration.

The City Attorney’s Office was also consulted during the review of the applications to confirm eligibility of program proposals. All eligible applications received can be found on this webpage.

HRC Review Process
On March 18 and 19, 2026, the HRC Grant Review Subcommittee comprised of Commissioners DeTurris, Parker, and Carlotti met to review the 2026-27 HSG applications and decide on preliminary funding recommendations. The Subcommittee members focused on organizations that strongly aligned with the City’s primary funding priority, demonstrated a direct and meaningful impact on specific populations within the City, and had shown a consistent ability to provide positive value to the community members they serve. The Subcommittee also considered each organization’s track record, the clarity of their proposed outcomes, and how their work contributed to the broader well-being of the community.

On April 1, 2026, the HRC Grant Review Subcommittee presented their preliminary funding recommendations to the full HRC during a noticed public hearing (the video from that meeting can be found here). The public hearing was noticed via the New Times San Luis Obispo newspaper and via email through the City’s e-notifications system. During the discussion, the Subcommittee engaged with other Commissioners to adjust the preliminary recommendations and the Commission voted to approve the adjusted funding recommendations. HRC found that the projects recommended for funding fit the main priority and furthered Council’s adopted goals to address community needs and promote the economic social well-being of all San Luis Obispo community members.

The HRC’s final recommendations include (full descriptions provided in Attachment A):
 $5,000 to the Long-Term Care Ombudsman of San Luis Obispo (SLO) County for their Ombudsman Services
 $5,500 to Mujeres de Acción for their Rent Stabilization in SLO City Program

Item 6c
 $6,000 to Womenade SLO, Inc. for their Womenade SLO Housing Support Fund  $10,000 to Community Action Partnership SLO for their Homeless Prevention/Stable Housing Project
 $10,000 to the Court Appointed Special Advocates of SLO County for their Preventing Homelessness for Vulnerable Foster Youth Program  $10,000 to Family Care Network, Inc. for their Pathways to Stability Program  $10,000 to Jewish Family Services of SLO for their SLO City Emergency Homelessness Prevention & Support Program
 $10,000 to Middle House for their Community Service for Housing Grant  $10,000 to the SLO Noor Foundation for their Homelessness Prevention – City of San Luis Obispo Project
 $14,500 to the Food Bank Coalition of SLO County for their No-Cook Bags for Residents Experiencing Homelessness Program
 $14,500 to the Housing Authority of the City of SLO (HASLO) for their Housing Stability with Supportive Services Program
 $14,500 to Lumina Alliance for their Emergency Shelter Program for Sexual Assault and Intimate Partner Violence Survivors
 $15,000 to Restorative Partners for their Opportunity to Fund Program  $15,000 to Shower the People for their Shower the People Program Grant Contracts
Upon Council approval of the HSG funding recommendations, the City will enter into a contract with each organization that has been awarded grant funding. A copy of the grant contract template is included as Attachment B. Organizations awarded grant funding will be required to provide a mid-year and year-end report describing administrative functions, metrics and outcomes, and use of City funds related to the application for each program.

Reports are reviewed by City staff and the HRC for completeness and compliance.

As a part of executing the agreements, staff will negotiate the insurance terms with the grant recipients as needed, with the approval from the City Attorneys Office and the City's Risk Manager.

Public Engagement
The public, and more specifically nonprofits, were engaged throughout the HSG application and award process. Nonprofits received communication of available funding, and two information sessions were held in English (Spanish was provided upon request) prior to the grant period opening. One information session was held in person in the morning and the other virtually in the afternoon, to provide various options for potential applicants. The virtual session was also recorded and uploaded the HSG webpage.

Starting with the 2026-27 HSG, nonprofits interested in applying were required to review the recording of, or attend in person or virtually at, one of these information sessions, at which staff provided an overview of the updated funding framework, key changes from previous cycles, eligibility requirements, and application period timelines. Additionally, technical assistance office hours and other support were offered during the application period.

Item 6c
Applicants were also informed via email about the April 1, 2026 HRC public hearing two weeks in advance and one week in advance. This item is on the consent agenda for the May 5, 2026 City Council meeting and will follow all required posting and notification. The public can submit comments on this item at or before the meeting.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended action in this report, because the projects recommended for funding do not constitute a “Project” under CEQA Guidelines Sec. 15378, as they will not result in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.

FISCAL IMPACT
Budgeted: Yes Budget Year: 2026-27
Funding Identified: Yes
Fiscal Analysis:

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $150,000 $ $ $
State
Federal
Fees
Other:

Total $150,000 $ $ $
There is $150,000 budgeted annually for Human Services Grants in the 2025-27 Financial Plan. This recommendation is for expenditure of the FY 2026-27 budget which will be presented to City Council for adoption on June 2, 2026. If modification of the budget for Human Services Grants is directed by Council or otherwise required prior to formal budget adoption, staff will return to modify the recommendation.

ALTERNATIVES

1. The Council could decide to revise and adopt different funding recommendations. If Council decides to revise and adopt different funding recommendations, Council will need to pull the item from consent, deliberate, and vote on new final funding recommendations during the Council meeting.

2. The Council could decide to request that the HRC reconsider and recommend different funding allocations. If Council decides not to approve the recommendations and to request that the HRC consider different recommendations, the HRC would need to hold a special meeting to reconvene and modify their original recommendations. Council should also provide direction on the modifications desired

Item 6c
if they decide to go with this option. This may delay prospective grant recipients’ implementation of projects recommended for funding in the 2026-27 grant cycle.

ATTACHMENTS
A - 2026-27 Human Services Grant Final HRC Funding Recommendations B – Human Services Grant Contract Template

# Organization Project/Program
Name Description of Project/Program Requested Amount
Recommended
Amount
1 Access Central
Coast
Community Based
Living for Older Adults
and People with
Disabilities
This project will provide comprehensive community living support services to individuals with disabilities and older adults residing in SLO County. The program will help
participants in permanent housing maintain stability, will deliver prevention and diversion assistance for
households at or below 30% AMI, and provide outreach
and engagement services to individuals at risk of or
recently experiencing homelessness. Funds will support
rent and utilities for their SLO City office.
$20,000 $0
2 Assistance
League of SLO
County
Operation School Bell
This program will provide clothing and school supplies to kindergarten to 12th grade students in need, living and attending school in SLO County. Clothing sessions are
held 2-3 times a week between 8/2026 and 5/2027.

Funding will support 50 students in receiving clothing, a book, and supplies.
$20,000 $0
3 Community Action
Partnership of
SLO County
(CAPSLO)
Homeless
Prevention/Stable
Housing Program
This program will provide emergency financial assistance to City of SLO households that are at risk of being
evicted and need assistance with a rental payment, or
who need financial assistance to secure housing. The
program will also provide case management for 6
months. Funds will be used for financial assistance
payments, case manager salary, and some indirect
expenses.
$20,000 $10,000
4 CASA of SLO
County
Preventing
Homelessness for
Vulnerable Foster
Youth
This project will support partial rent for CASA’s office, a hub for homelessness prevention services. CASA
volunteers rely on secure internet access, private office space, and on-site technology to attend court hearings
alongside their youth at the CASA office. The office also serves as the primary location for volunteer trainings, youth meetings, and coordination with housing providers, mental health services, and community resources. Funds
will go to rent for their office in SLO City.
$20,000 $10,000

5 Corazón Latino Mental Health Support
Groups in City of SLO
The project will be a new Mental Health Support Group
in the City of SLO, reaching an estimated 6-10
participants per session (mix of returning/new
participants). The groups are designed to remove
barriers and improve access to mental health care by
offering them in Spanish, during evening hours, at
accessible community locations, with childcare and
meals provided at no-cost. Funds will support personnel and operating expenses, like food/beverage and
materials.
$20,000 $0
6 Family Care
Network, Inc. Pathways to Stability
This program will provide eviction prevention and shelter diversion services for transitional age youth who are at imminent risk of homelessness and ineligible for existing housing services. The program will include short-term,
financial support for eviction prevention, landlord
mediation, and intensive housing stabilization services.

Funds would support direct costs for the participants,
such as rent and utility assistance and security deposits. $20,000 $10,000
7 Food Bank
Coalition of SLO
County
No-Cook Bags for
Residents
Experiencing
Homelessness
This program provides bags of portable foods designed
for homeless residents who do not have access to a
kitchen and so cannot benefit from typical Food Bank
distribution items. No-Cook Bags are distributed by
community partners who work directly with people
experiencing homelessness, including nonprofits, faithbased organizations, law enforcement agencies, and social service providers. Funds would support the
purchase of food for 30,000 bags.
$15,000 $14,500
8 Gala Pride &
Diversity Center /
Diversity Coalition
of SLO County
Safe to Stay: A
Collaborative Housing
Justice Project
This program will provide short-term rental subsidies,
security deposits, and move-in expenses to stabilize
households at imminent risk of homelessness;
emergency hotel vouchers for individuals and families
experiencing acute housing crises; and culturally
competent navigation services. Coordinated housing
navigation will also be provided and enhanced by a
Community Forum on Housing. Funds will support direct
costs, staff time, and organization of the Forum.
$40,000 $0

9 Housing Authority
of SLO (HASLO)
Housing Stability with
Supportive Services
This program prevents homelessness and strengthens
tenancy outcomes for residents in HASLO housing, with
emphasis on people exiting homelessness, medically
vulnerable residents, seniors, families, and people with disabilities. Grant funds will provide targeted, flexible, assistance, including rental and utility gap support,
move‑in essentials, transportation, and short‑term food support.
$20,000 $14,500
10 Jewish Family
Services of SLO
SLO City Emergency
Homelessness
Prevention & Support
Program
This program will provide financial assistance to
individuals experiencing homelessness or at imminent
risk within the City of SLO. Through referrals from
established City-serving agencies JFS distributes
targeted micro-grants (up to $200) to remove immediate
barriers to housing stability. Funds would support
services like deposit support, rent gap funding, gas for Safe Parking participants, vehicle repairs needed for
employment, storage fees, and others.
$10,000 $10,000
11 Long Term Care
Ombudsman
Services of SLO
County
Ombudsman Services
This program includes resident centered advocacy,
resident empowerment, information and
assistance/referrals, systemic advocacy, complaint
investigations and resolutions, facility monitoring visits, eviction prevention, community education, facility staff trainings, and witnessing advanced health care directives for residents in skilled nursing facilities. Funds would support staff salaries.
$5,000 $5,000
12 Lumina Alliance
Emergency Shelter
Program for Sexual
Assault and Intimate
Partner Violence
This program would support the operating costs of
Lumina’s emergency shelter program in Atascadero and
San Luis Obispo with a total of 26 beds and 4 cribs for survivors of sexual assault and intimate partner violence and their children. Funds would cover a portion of the
costs of repair and maintenance, supplies, food, and
staff time.
$20,000 $14,500
13 Meals that
Connect
Preventing Hunger
and Homelessness
Through Nutritious
Meals
This program provides congregate dining and homedelivered meal programs for seniors who are the most vulnerable to malnutrition, declining health, and loss of independence. Funds would support food costs, labor,
supplies, transportation, and rent.
$15,000 $0

14 Middle House Community Service for
Housing Grant
This project would allow Middle House residents to
volunteer at non-profit organizations in exchange for
housing – one hour of volunteering would covers one
days rent (i.e. thirty hours of volunteering covers thirty days rent). The facility includes: furnished living areas, unlimited food, hot daily meals, structured drug free
environment, donated clothing, laundry facilities, internet access, cable TV and group activities. Funds would
support 800 days of rent at $25 per hour.
$20,000 $10,000
15 Mujeres de Acción Rent Stabilization in
SLO City Program
This program will provide $1,000 in direct rental
assistance to 18 families in the City of SLO at imminent risk of eviction. Mujeres will partner with local agencies, nonprofits, churches, and schools to identify vulnerable households. Volunteers will personally deliver checks,
complete a simple bilingual intake, and connect families to additional services. Funds will support direct aid and some admin.
$19,875 $5,500
16 People's Self-Help
Housing (PSHH)
Supportive Housing
Program for At-Risk
Households
This program will provide clinical case management and
behavioral health services to 204 residents of our 141
affordable housing units within the City of SLO. Staff
provide short-term therapeutic intervention while
connecting clients to longer-term community therapists, alongside individualized service planning, resource
navigation, and crisis intervention. Funds would support salaries, consulting, expenses, supplies, etc.
$20,000 $0
17 Recovery Housing
Alliance
Transitional Recovery
Housing Placement
This program will provide short-term financial assistance to subsidize rent and associated fees at qualified
recovery residences for individuals recovering from
substance use disorder who are experiencing, or are at
imminent risk of, homelessness. In addition to housing
placement, Recovery Housing Alliance will provide case
coordination, housing advocacy, and ongoing support.

Funds will support rental subsidies, intake and
coordination, supplies, and reporting.
$20,000 $0

18 Restorative
Partners Opportunity to Fund
This program provides assistance to formerly
incarcerated participants facing significant barriers to employment and housing, while advancing stability and
community reintegration. Eligible expenses include shortterm rental assistance, housing application fees, vital identification documents, public transportation, basic
hygiene supplies, and professional attire for job
interviews and housing appointments. Funds would
support transportation needs, rental assistance,
documents, clothing, etc.
$20,000 $15,000
19 Shower the People Shower the People
This program provides mobile shower services that also
include supplies and clothing for people experiencing
homelessness and operates in SLO 4 days a week for 3
to 4 hours a day, serving on average 20-35 guests per
day on site. Funds would support all aspects of the
program including clothing, gas, supplies, etc.
$15,000 $15,000
20 SLO Grassroots Project Connect
This project will provide a Community Gathering Space,
where there will be connections to local resources,
including housing, employment, medical, and mental
health, as well as direct access to food, clothing, and hygiene products for the unhoused population. Funds
would support rent (and maybe furniture, computers,
shelves, etc.)
$20,000 $0
21 SLO Legal
Assistance
Foundation
Senior Homeless
Prevention Program
This program will provide 200 hours of free legal
assistance for vulnerable SLO City seniors at risk of
homelessness due to eviction, unsafe housing, threats of foreclosure, scams, unfair or predatory practices,
Medicare coverage denials (for nursing home residents)
or a lack of understanding of their rights. Funds would support salaries, insurance, operating costs, etc.
$20,000 $0
22 SLO Noor
Foundation
Homelessness
Prevention – City of
San Luis Obispo
Project
This program provides the City of SLO and its lowincome and otherwise underserved residents with free medical, dental, vision, and mental health care services.

This will occur at the SLO Noor Free Health Clinics,
which incorporate both brick-and-mortar clinics, as well as telehealth appointments. Funds would support
personnel and direct operating costs.
$20,000 $10,000

23 Womenade SLO,
Inc.

Womenade SLO
Housing Support Fund
This program would support residents of the City of SLO who have urgent housing assistance needs, including
requests for partial rent or hotel stays for individuals or families who are facing imminent eviction, are
experiencing homelessness, or were unhoused and are
working on getting their housing established. Funds
would go to direct aid.
$6,000 $6,000
TOTAL $425,875 $150,000

CITY OF SAN LUIS OBISPO GRANT AGREEMENT

HUMAN SERVICES / DEI HIGH IMPACT GRANT PROGRAM
THIS AGREEMENT, dated ____________________________ for the convenience of the parties hereto, is between the CITY OF SAN LUIS OBISPO, a chartered municipal corporation (referred to herein as CITY), and XXXXX (referred to herein as GRANTEE).

WITNESSETH:

WHEREAS, GRANTEE has requested CITY to contribute $XXXX as submitted in GRANTEE’s application for the Human Services/DEI High Impact Grant Program, incorporated by reference and attached as Exhibit A (the “Scope of Services”); and WHEREAS, the CITY’s Human Relations Commission reviewed the request and recommended the CITY contribute to the program; and
WHEREAS, CITY has agreed to contribute $XXXX to support GRANTEE’s project as described in Exhibit A (the “Services”); and
WHEREAS, the Services further the priorities adopted by the City Council for the Human Services/DEI High Impact Grant Program and will be available to residents of the City, thereby serving both a public and municipal purpose.

NOW, THEREFORE, CITY and GRANTEE for and in consideration of the mutual benefits, promises, and agreements set forth herein, do agree as follows:

1. The Proposal and Application submitted by the GRANTEE, on XXXX, and accepted by the CITY on XXXX, is incorporated into this agreement by reference and sets forth the scope of work for which funding for the activities or programming in Exhibit A may be used.

2. GRANTEE is and shall at all times remain as to the CITY a wholly independent contractor. Any persons performing the Services under this Agreement on behalf of GRANTEE shall at all times be under GRANTEE'S exclusive direction and control.

Neither CITY nor any of its officers, employees, or agents shall have control over the conduct of GRANTEE or any persons performing the Services under this Agreement on behalf of GRANTEE. GRANTEE shall not at any time or in any manner represent that it or any persons performing the Services under this Agreement on behalf of GRANTEE are in any manner officers, employees, or agents of the CITY.

3. GRANTEE hereby certifies and agrees that the Services will promote and advance equitable treatment to all members of the CITY community, in which all persons can enjoy equal rights and opportunities without regard to race, religion, sex, national origin, sexual orientation, age, or disability.

4. GRANTEE agrees to adopt reasonable accommodation policies and procedures, or maintain compliance with existing policies and procedures, that are consistent with the Americans with Disabilities Act, 42 U.S.C. Section 12131 et seq., Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. Section 794, and California Government

Code Section 11135, and all other applicable anti-discrimination statutes, including the California Fair Employment and Housing Act.

5. GRANTEE agrees that all grant funds must be used solely for activities and purposes that are specifically approved in this Agreement, as set forth in Exhibit A, or as otherwise approved in advance in writing by the CITY.

Grant funds may NOT be used for:
 Advancing, campaigning, advocating, promotion, or highlighting political entities, ballot measures, initiatives, or candidates.
 Advancing, advocating, promoting, or highlighting any religious causes, entities, individuals, or activities. Additionally, grant funds may not be used for the purpose of disseminating religious information in any form.  Activities that result in personal financial gain.
 Payment of CITY fees, permits, or fines.
 Personal expenses not directly related to the approved project.  Payment in the form of stipends, honoraria, or similar direct payments to individuals.

Any funds spent outside of the approved scope of work or in violation of these restrictions may be deemed unallowable and subject to repayment to the CITY.

6. GRANTEE will scope their Services in proportion to the amount of funding received, if not equal to the funding requested, so that the Services’ impacts are proportional to the funding received.

7. GRANTEE agrees to acknowledge the support of the CITY in promotional and publicfacing materials related to the funded program. This acknowledgment shall include the use of the City’s standardized emblem, which will be provided by the CITY upon request. When appropriate to the program or event, the GRANTEE shall also incorporate either the CITY’s emblem and/or the Diversity, Equity, and Inclusion Icon in promotional materials, which will be provided by the specific CITY programs upon request.

8. GRANTEE agrees that within ten (10) calendar days of the effective date of this Agreement, GRANTEE shall add the following statement to the homepage of its organization and/or program website(s), if any: “Programs and projects supported by the City of San Luis Obispo funds are open and accessible to all otherwise qualified members of the public and without regard to race, religion, sex, national origin, sexual orientation, age, or disability.” The same statement shall also appear on a clearly visible “About,” “Funding,” or equivalent informational page(s) of the website. The statement shall be displayed prominently and may not be modified, except for formatting necessary to align with the website’s design. Failure to comply with this requirement within the specified timeframe may be considered a breach of this Agreement and cause for termination as stated below. GRANTEE shall send proof of added language to program administrator within the agreed upon time.

9. GRANTEE agrees to the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8), GRANTEE 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 and costs of litigation (“claims”), arising out of the GRANTEE’s performance or GRANTEE’s failure to perform its obligations under this Agreement or out of the operations conducted by GRANTEE, including the CITY’s active or passive negligence, except for such loss or damage arising from the sole 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 GRANTEE’s performance of this Agreement, the GRANTEE 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.

10. CITY agrees to pay GRANTEE a one-time only grant, in the sum of $XXXX. The grant will be paid in one installment upon receipt of a fully executed contract.

GRANTEE agrees that all funds awarded under this Agreement shall be expended solely on services provided during the grant period of XXXX through XXXX. Any funds not expended within this period shall be returned to the CITY unless otherwise approved in writing by the CITY.

11. GRANTEE agrees to retain all financial and programmatic records related to the use of CITY grant funds for a minimum of five (5) years following the completion of the grant period. The CITY reserves the right to audit grant expenditures and documentation to ensure compliance with this Agreement.

12. GRANTEE will provide CITY with a mid-year report, due XX 20, 20XX, and final program report, due XX 20, 20XX, summarizing administrative, financial, demographic, and performance outcomes and activities. Said reports shall be in the form provided by the CITY and submitted through the Diversity, Equity, and Inclusion website as described in Exhibit B. Failure to provide required reports on time may result in disqualification from future CITY grant programs for a period of up to two (2) years and may require repayment of unexpended or improperly used funds to the CITY.

13. The CITY may terminate this agreement if 1) the funds appropriated for this Grant program are no longer available, or 2) upon GRANTEE’S breach of this Agreement, including but not limited to failure to complete the Services, failure to submit required reporting, or use of grant funds for an unlawful or unpermitted purpose or for a purpose other than furtherance of the Services. Upon GRANTEE’S alleged breach, if curable, CITY shall notify GRANTEE in writing of the breach. If GRANTEE fails to cure the breach within ten (10) calendar days of receiving the notice, this Agreement shall be terminated.

13.1 If the Agreement is terminated due to GRANTEE’S breach, any funds not expended by GRANTEE in performance of the Services at the time of termination, and/or any funds expended improperly as discussed in this section or Section 4 shall be returned to the CITY within ten (10) calendar days of said termination.

14. Any funds remaining unused by XX 30/31, 20XX upon expiration of the Agreement pursuant to Section 10, or upon the termination of this Agreement pursuant to Section 13 above, shall be returned to CITY within ten (10) calendar days from the expiration

or termination date of this Agreement. Should the CITY determine, following expiration of the agreement, that funds were expended improperly as discussed in Section 5 and/or Section 13, such funds shall be returned to CITY within ten (10) calendar days of notification to the GRANTEE.

15. For any special events conducted as part of the funded program using CITY owned facilities, the GRANTEE shall provide recycling containers at the event location for the collection of recyclable materials, including office paper, newspaper, glass, aluminum, tin (bi-metal), rigid plastic, and corrugated cardboard. The GRANTEE shall ensure that recyclable materials generated during the event are properly collected and disposed of through appropriate recycling services.

15.1 If food or beverages are served at the event, the GRANTEE shall also arrange for organics (food waste) collection services when required and provide appropriate containers for the collection of food waste and other organic materials, consistent with City sustainability guidelines.

15.2 All waste, recycling, and organics generated during the event shall be serviced on-site by San Luis Garbage or another City-approved service provider. Waste shall not be hauled off-site by the GRANTEE or event staff.

The GRANTEE is responsible for monitoring disposal practices during the event to minimize contamination of recycling and organics bins.

15.3 For information regarding waste, recycling, and organics service availability, contact San Luis Garbage at (805) 543-0875.

16. GRANTEE shall maintain insurance coverage that meets the requirements in Exhibit C. GRANTEE agrees that within ten (10) calendar days of the effective date of this Agreement, GRANTEE will provide proof of insurance coverage to the CITY.

17. The CITY’s contribution is not an endorsement of any statements, opinions, findings, or conclusions made by the GRANTEE including in GRANTEE’s application materials, mid-year report, or final report, and no such statements shall be attributed in any way to the CITY.

18. GRANTEE shall not assign or transfer this Agreement, or any portion thereof, without prior written consent of the CITY.

19. GRANTEE agrees that this Agreement may be amended only by written agreement signed by both the CITY and the GRANTEE; however, consistent with City Council authorization, the City Manager or their designee may approve modifications to the allowed uses of grant funding and related scope of work. Such modifications shall be limited to minor or non-substantive changes and must be documented in writing, including via email or other CITY-approved electronic communication, provided such modifications do not increase the total grant amount or materially alter the overall purpose of the program.

For purposes of this section, minor administrative or non-substantive changes may include, but are not limited to, adjustments to program timelines (not to include grant or reporting timelines), reallocation of funds between approved budget categories, clarification of activities or deliverables, or other modifications necessary to support implementation of the approved program. Such changes shall not include increases to the total grant amount, expansion of the overall scope of services, or changes

that materially alter the purpose or intent of the program.

20. GRANTEE shall comply with all applicable federal, state, and local laws, regulations, and ordinances.

21. For purposes of notice under this Agreement, all notices shall be delivered electronically via Docusign or another City-approved electronic delivery or signature platform. Such electronic delivery shall be deemed equivalent to certified mail for purposes of official notice. Notices shall be considered effective upon transmission to the following electronic addresses:

CITY:

City of San LuisObispo
990 Palm Street
San Luis Obispo, CA93401
Email: [email protected]
Attn: Matthew Pennon, Diversity, Equity, and Inclusion Manager – Administration GRANTEE:

Name
Address
City, State, Zip Code
Email address
Phone number
Attn: Contact
IN WITNESS WHEREOF, the parties hereto have executed this agreement by their proper officers duly authorized:

Grantee
By:

CITY OF SAN LUIS OBISPO, A MUNICIPAL CORPORATION
By:

Greg Hermann, Deputy City Manager – Administration
APPROVED AS TOFORM:

By:

Christine Dietrick, City Attorney

Exhibit A - SERVICES

HUMAN SERVICES/DEI HIGH IMPACT GRANT PROGRAM

SUMMARY REQUEST
GRANTEE ORGANIZATION:

EVENT(S):

EVENT DATE(S):

Grant funding has been allocated specifically for the purpose(s) stated below:

XXXX
The Scope of Services outlined in this Exhibit represents the approved program. Any modifications to the use of funds or scope of work must be approved in advance by the CITY in writing, as stated in Section 19; however, minor administrative or nonsubstantive modifications may be implemented as described in Section 19, provided such modifications are documented in accordance with CITY requirements.

APPLICATION (begins on the following page)
[INSERT APPLICATION HERE]

Exhibit B – REPORTING GUIDELINES
GRANTEES receiving funds through the CITY are required to submit a final report to the CITY, via the online reporting form located on the CITY’s website, by the due dates outlined in the agreement. GRANTEE shall report any modifications to the approved scope of work or budget, including those approved pursuant to Section 19, in the required mid-year and final reports.

Documentation of such modifications, including email approvals or other written authorization, shall be maintained and provided to the CITY upon request.

Each report must include the following four sections:

1. Administrator’s Report
A summary of services, programs, or activities provided (as described in Exhibit A). This section should include:
 Any updates or changes to operations or service delivery.  Barriers or challenges faced and how they were addressed.  Any partnerships, collaborations, or community engagement efforts that enhanced inclusion or belonging.
 Success stories, testimonials, or examples that illustrate community impact.

2. Statistical & Performance Report
Summarize measurable outcomes and demographic data for your programs. This section should include:
 Total number of individuals served.
 Total number of City residents served.
 Feedback associated with services provided (survey results, % satisfied, key feedback, etc.)
 Demographic data collected
 Metrics of Success

3. Financial Report
Provide a clear accounting of how the City’s grant funds were used or are planned to be used. Report must include:
 A breakdown of expenditures by category (e.g., staffing, outreach, materials, events).  Identification and explanation of any unused funds.
 Note: City grant funds may not be used for:
o Advancing, campaigning, advocating, promotion, or highlighting political entities, ballot measures, initiatives, or candidates.
o Advancing, advocating, promoting, or highlighting any religious causes, entities, individuals, or activities. Additionally, grant funds may not be used for the purpose of disseminating religious information in any form. o Activities that result in profit or personal financial gain. o Payment for City fees or permits
o Personal expenses not directly related to the approved project

o Payment in the form of stipends, honoraria, or similar direct payments to individuals.

4. Reflection & Impact
Please take a moment to reflect on your work and share insights:
 What outcomes or successes are you most proud of?
 What lessons or insights have you gained during this grant period?  How did your work contribute to inclusion, belonging, or equity in the San Luis Obispo community?
 What additional support or resources could help strengthen your impact? Report Submission
All reports must be submitted online at: https://forms.slocity.org/Forms/DEIGrantReport No emailed submissions will be accepted.

Exhibit C – INSURANCE REQUIREMENTS
Without limiting GRANTEE’s indemnification of CITY, and prior to commencement of work, GRANTEE shall obtain, provide, and maintain at its own expense during the term of this Agreement, policies of insurance of the types and amounts described below and in a form that is satisfactory to CITY.

General liability insurance. GRANTEE 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.

Sexual abuse / molestation insurance. If the primary purpose of GRANTEE’S work includes interacting with minors under the age of 18, GRANTEE shall procure and maintain sexual abuse/molestation liability coverage with limits of no less than $1,000,000 per occurrence and $2,000,000 general aggregate. Coverage may be provided as part of a commercial general liability coverage, professional liability coverage, or as a separate policy.

Workers’ Compensation Insurance. If applicable, GRANTEE shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). GRANTEE 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.

Additional Insured Status. General liability, automobile liability, and umbrella/excess liability insurance policies shall provide or be endorsed to provide that CITY and its officers, officials, employees, agents, and volunteers shall be additional insured under such policies.

Undisclosed coverage limitations are prohibited. None of the coverages required herein shall comply 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.

Notice of Cancellation. GRANTEE agrees to oblige its insurance agent or broker and insurers to provide the 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.

If any of the GRANTEE’s insurers are unwilling to provide such notice, then GRANTEE shall have the responsibility of notifying the CITY immediately in the event of GRANTEE’s failure to renew any of the required insurance coverages or insurer’s cancellation or non-renewal.

Separation of Insureds. A severability of interests’ provision must apply for all additional insureds ensuring that GRANTEE’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 not contain any cross-liability exclusions.

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, or require proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention through confirmation from the underwriter.

Timely Notice of Claims. GRANTEE shall give CITY prompt and timely notice of claims made or suits instituted that arise out of or result from GRANTEE’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.

Additional Insurance. GRANTEE 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. Should GRANTEE obtain and maintain an excess liability policy, such policy shall be excess over commercial general liability, automobile liability, and/or employer’s liability policies. Such policy or policies shall include wording that the excess liability policy follows the terms and conditions of the underlying policies.

Verification of Coverage. GRANTEE shall furnish the CITY with a certificate of insurance showing maintenance of the required insurance coverage, as well as endorsements affecting general liability coverage. All endorsements are to be received and approved by the CITY before work commences.

Item 6d
Department: Human Resources
Cost Center: 3001
For Agenda of: 5/5/2026
Placement: Consent
Estimated Time: N/A
FROM: Nickole Domini, Human Resources Director
Prepared By: Diana Federico, Human Resources Analyst
SUBJECT: AUTHORIZATION TO ADVERTISE A REQUEST FOR QUALIFICATIONS

FOR HUMAN RESOURCES CONSULTING SERVICES

RECOMMENDATION

1. Authorize the issuance of a Request for Qualifications (“RFQ”) for Human Resources consulting services; and

2. Authorize Human Resources to create an On-Call List from the proposals received and deemed to be responsive; and

3. Authorize the City Manager or designee to execute contracts on an as-needed basis, with the agencies in the on-Call List during the five-year period July 1, 2026 – June 30, 2031.

POLICY CONTEXT
Municipal Code 3.24.070 (Authority to Hire Consultants) provides the criteria to contract for professional services using the RFQ process. Additionally, the City’s Purchasing Policy states that a formal request for proposals for Professional Services should be issued if the expenditure will exceed $39,999. The Human Resources Department often finds that outside consulting services are needed to support the City or advise on an urgent personnel matter. In these instances, there is not sufficient notice to issue a formal request for proposals, and it is unclear what the total cost of consultant services will be.

To support unplanned needs, the Human Resources Department is proposing to fulfill this purchasing requirement in advance, so qualified consultants may be hired quickly as needs arise.

DISCUSSION
Background
This request originated from the City’s need to access specialized Human Resources support to fulfill unanticipated needs as well as recurring tasks that are best handled externally to ensure an objective process.

Item 6d
The Human Resources Department oversees tasks throughout the year that require specialized expertise or are highly sensitive in nature and timing. For example, the annual appointed official’s evaluation process, executive recruitments, and classification or organizational assessments have been handled by various consultants for many years.

While some of these needs can be anticipated, other requests arise at the last minute and demand more urgent action. If an outside consultant is needed to provide those services, and delegated purchasing thresholds may be exceeded, it causes delays in completing important work. These services are often high-cost and time-sensitive, making it inefficient to seek quotes or initiate a request for proposals for each individual need.

Establishing an On-Call list of qualified providers would streamline procurement, reduce delays, and ensure that reliable, pre-approved consultants may be contracted to provide services in a timely manner. The draft RFQ is included as Attachment A.

Next Steps
Once approved by City Council, the City will issue a RFQ and will develop an On-Call list from the proposals received and deemed to be responsive. The On-Call list will be established for five fiscal years (through Fiscal Year 2030-31).

ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.

FISCAL IMPACT
Budgeted: N/A Budget Year: FY 2026-27
Funding Identified: N/A
Fiscal Analysis:

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $ $ $0.00
State
Federal
Fees
Other:

Total $ $ $ $0.00
The RFQ does not obligate any funds or commit the City to utilize any of the Consultants added to the on-call list. At the time an on-call Consultant is engaged for a particular matter, funds will be identified to pay for the services, consistent with the City’s purchasing policy.

Item 6d

ALTERNATIVES
Council could decide not to authorize an RFQ for Human Resources Consulting Services. If Council chooses this alternative, staff will need to continue securing multiple quotes for each individual service request, even when needs are urgent and exceed delegated purchasing thresholds. This process can delay timely action and requires repeated outreach to the same firms for updated pricing. Establishing an approved on-call list through a competitive RFQ process would allow the City to lock in consultant rates for up to five years, reducing how often firms are asked to resubmit quotes and ensuring more consistent pricing. Without this structure in place, the City risks slower response times, decreased operational efficiency, and higher overall costs over time.

Council could decide to modify the RFQ for Human Resources Consulting Services. Council could revise the RFQ language, such as adding or reducing the types of consulting services being requested.

ATTACHMENTS:

A – Draft RFQ for Human Resources Consulting Services

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 Qualifications for Human Resources Services The City of San Luis Obispo is requesting sealed proposals for general Human Resources services.

All firms interested in receiving further correspondence regarding this Request for Qualifications (RFQ) will be required to complete a free registration using BidNet Direct (www.bidnetdirect.com).

All proposals must be received via BidNet Direct by May 29, 2026 at 5:00 p.m., when they will then be opened electronically via BidNet Direct 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 Human Resources Services” to the Department of Finance, at 990 Palm Street, San Luis Obispo, CA, 93401, at or before 5:00 pm on May 29, 2026.

Project packages and additional information may be obtained at the City’s BidNet Direct website at www.BidNetDirect.com.

For technical help with BidNet Direct please contact BidNet Direct tech support at 800-835-4603.

TABLE OF CONTENTS
A. INTRODUCTION......................................................................................................................................... 1 B. SCOPE OF WORK ....................................................................................................................................... 1 C. GENERAL TERMS AND CONDITIONS ........................................................................................................ 4 D. SPECIAL TERMS AND CONDITIONS .......................................................................................................... 6 E. PROPOSAL REQUIREMENTS ...................................................................................................................... 7 E. FORM OF AGREEMENT............................................................................................................................. 9 F. PROPOSAL SUBMITTAL FORM: REFERENCES .......................................................................................... 10 G. PROPOSAL SUBMITTAL FORM: STATEMENT OF PAST CONTRACT DISQUALIFICATIONS ....................... 12 EXHIBIT A : FORM OF AGREEMENT............................................................................................................. 13 EXHIBIT B – INSURANCE REQUIREMENTS................................................................................................... 23

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A. INTRODUCTION
About the City of San Luis Obispo
The City of San Luis Obispo (“City”) is nestled on the Central Coast of California, halfway between Los Angeles and San Francisco. With approximately 490 regular employees, the City’s nine departments serve the public in carrying out the policies and programs prioritized by the City Council, and implementing the City's charter and municipal code. The City’s mission statement explains the organization's focus in carrying its responsibilities. Its organizational values guide and inspire the day to day operations of the City.

Project Overview
The City of San Luis Obispo’s Human Resources department is seeking proposals from qualified and experienced advisors to provide an array of Human Resources services to support the department on an as-needed basis. This RFP will establish an On-Call List which the City can utilize as needed.

B. SCOPE OF WORK
The City is requesting proposals for consultant services in a variety of different areas to establish a list of qualified firms and individuals for contract work the City may need during the five-year period July 1, 2026 through June 30, 2031. The City requests information regarding the qualifications of consultants interested in providing human resources-related services, as needed, via an established list of On-Call consultants (“On-Call List”). Placement on the On-Call List does not guarantee that the firm or individual consultant will be engaged to provide services. Services will be used on an as-needed, case-by-case or matter-by-matter basis. Outside consultant engagements for which proposals are sought may involve one or more of the following areas:

Service Description and Examples of Tasks Please Check if You Are Qualified and Applying to
Perform This Service
Evaluation services,
including Appointed
Official and 360‑ degree
assessments
Collect structured feedback on leadership
competencies; facilitate stakeholder
engagement; conduct 360-degree
evaluations to capture input from peers,
reports, and supervisors to inform
development plans and accountability;
summarize feedback and facilitate
conversations with Elected Officials and
Appointed Officials.
☐
Workplace investigations Conduct impartial workplace investigations in response to complaints or policy
violations and recommend corrective
actions.

Determine scope, jurisdiction, and required
compliance steps; develop an investigation
☐

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plan, including issues, witnesses, timelines
and documentation; conduct interviews in a
neutral and procedurally compliant manner;
gather, review, and preserve evidence;
maintain detailed records; prepare findings
reports supported by facts, analysis and,
policy conclusions; provide briefing to HR,
leadership, and legal counsel while
maintaining confidentiality.

Performance and
employee relations
support
Assist supervisors in preparing and
delivering difficult performance feedback;
Develop and review Performance
Improvement Plans (PIPs); Provide guidance
on handling employee behavioral issues,
inappropriate workplace conduct, or conflict
between team members; facilitate meetings
to mediate conflicts and support a positive
work environment; Advise leaders on
progressive discipline steps to ensure
compliance with internal policy and
applicable labor laws; support drafting of
documentation.
☐
Executive recruitment Partner with HR and leadership to define competencies, develop job postings, source
and pre-screen candidates, coordinate panel
interviews, manage candidate
communications, support reference checks,
and maintain detailed records.
☐
Group dynamic and
Conflict resolution
facilitation
Assess how teams communicate, make
decisions, and handle differing viewpoints;
measure trust, participation, psychological
safety, and meeting effectiveness; identify
steps needed and recommend action items
to improve collaboration and outcomes.

Evaluate the frequency, sources, and impact
of workplace conflict; measure perceptions
of fairness, timeliness, and manager
effectiveness to guide training, process
improvements and other suggested
resolutions.
☐
Executive coaching Establish coaching goals; conduct intake interviews; review performance data; assess
strengths, gaps, and development needs;
facilitate coaching sessions focused on skillbuilding, reflection and practice; provide ☐

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structured feedback, document progress,
support long-term development planning,
and transition back to standard performance
management.

Classification and
compensation support
Evaluate pay equity, job leveling clarity,
market competitiveness, and internal
consistency; produce results to inform pay
structure updates, transparency initiatives,
and related tasks.
☐
Recruitment consulting
and support
Assess and refine talent acquisition
processes; streamline recruiting workflows.
☐
Benefits administration
support
Evaluate plans, costs, utilization and
satisfaction with benefits programs;
measure enrollment ease, communication
clarity, and perceived value to guide plan
design, new offerings and communications.
☐
Risk and safety support Review and/or develop agency policies and programs; conduct site inspections, field
visits, and hazard assessments; identify gaps
and regulatory exposures; evaluate data and
trends; recommend corrective actions,
controls, and safer work practices; deliver
safety training; support accident
investigations; review contracts; support
compliance documentation and reporting.
☐
Interactive
Accommodation Process
Support
Develop job function analyses; facilitate
interactive process meetings; complete
associated documentation.
☐
Policy development Evaluate the clarity, accessibility, accuracy of policies; assess compliance gaps; prioritize
updates and improve communication and
rollout strategies; develop new policies or
programs to meet regulatory requirements.
☐
Organizational and
strategic planning
support
Facilitate strategic planning sessions and
document development; evaluate alignment
to vision, goal clarity, prioritization, and
cross-functional coordination; assist with
progress tracking and communication
effectiveness to strengthen strategic
execution.
☐
Governance support Examine roles, decision rights, and

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accountability mechanisms; measure
transparency, compliance, and
board/committee effectiveness to refine
governance structures.
☐
Leadership development Assess leadership competency needs, program quality, and perceived impact on
performance; measure improvements in
coaching, communication, inclusion, and
change leadership to guide curriculum;
facilitate retreats.
☐
Team building Evaluate team cohesion, trust, role clarity, and collaboration norms; measure
engagement and cross-functional
effectiveness to tailor team-building
activities and follow-up action plans.
☐
Labor relations Collective bargaining strategy; grievance and arbitration support; contract/MOU
interpretation.
☐
General HR consulting
and project management
Input, assessment and/or action planning
around organizational culture or structure,
engagement, workforce planning, change
management, succession planning, strategic
planning, etc.
☐
C. 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 Qualifications (RFQ) project package. By virtue of its proposal submittal, the bidder acknowledges agreement with and acceptance of all provisions of the RFQ 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 in BidNet, please email a copy to the contacts listed in the RFQ package, if you can’t email it, please send a 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:

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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; endorsements are not required until contract award. The City’s insurance requirements are detailed in Exhibit B to the Agreement

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 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.

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 D 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 (Contractor) 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.

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D. 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 subcontractors 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 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 (Contractor) 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 general Human Resources services. 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 one-year, and annually thereafter, for a total of four 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. Contractor Invoices. The Contractor 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

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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 RFQ 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 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 Contractor.

14. Submittal of References. Each proposer shall submit a statement of qualifications and references on the form provided in the RFQ 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 RFQ package.

E. PROPOSAL REQUIREMENTS

1. Proposal Content. Your proposal must include the following information:

Submittal Forms
a. Cover letter
 Submit a letter on your company letterhead that includes a statement of intent to perform the requested services and confirm that all elements of the RFQ have been reviewed and understood. The letter should include a brief summary of the proposer’s qualifications. The letter should be signed by an officer authorized to bind the proposer to all content in the proposal, and shall include the name, address, phone number and e-mail address of the person(s) to contact who will be authorized to represent the proposal.
 Table of contents – The table of contents shall identify all ofthe forms submitted and the contents of the proposal in a format consistent with the proposal requirements. b. Fee Schedule / Rate Sheet
 Hourly rates by role; fixed fees for common tasks (e.g., investigations per case, classification study per job); travel/reimbursables; any not to exceed amounts.

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c. Certificate of insurance.
d. References from at least three firms for whom you have provided similar services. e. Statement of past contract disqualifications.

Qualifications
f. Qualifications & Approach
o Firm overview; core competencies; years in public sector HR; relevant certifications (PHR/SPHR/SHRM CP/SHRM SCP; investigation training, etc.) o If applicable, the staff to be assigned to the matters in key service areas. o Brief Resumés of the individuals who would be performing services. o Your experience performing assignments in the proposed service areas identified in Section B. Scope of Work.
 Describe relevant training, privacy policies or practices, neutrality protocols, chain of custody for evidence, interview procedures, and complaint intake processes, as applicable. Examples: investigation report template (sanitized), classification study outputs, evaluation tools (360 instrument summary), policy drafts.
o Data Security & Confidentiality Plan related to handling of sensitive HR data; secure storage; access controls; records retention; compliance with California Public Records Act (CPRA) and privacy laws
o Background Check & Investigator Qualifications (if doing investigations) o Any other information that would assist us in making an award decision.

Proposal Length
g. Proposal length should only be as long as required to be responsive to the RFQ, including attachments and supplemental materials.

2. Proposal Evaluation and Selection. Proposals will be evaluated based 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. Value
e. References.
f. 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 contractor, the City reserves the right to further negotiate the proposed work and/or method and amount of compensation.

3. Proposal Review and Award Schedule. The following is an outline of the anticipated schedule for proposal review and contract award:

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a. Issue RFQ May 7, 2026
b. Receive proposals May 7 – May 30, 2026
c. Complete proposal evaluations June 15, 2026
d. Conduct finalist interviews and finalize recommendation June 16 – June 30, 2026

4. Ownership of Materials. All original drawings, plan documents and other materials prepared by or in possession of the Contractor 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.

5. Release of Reports and Information. Any reports, information, data, or other material given to, prepared by or assembled by the Contractor 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 Contractor without the prior written approval of the City.

6. Copies of Reports and Information. If the City requests additional copies of reports, drawings, specifications, or any other material in addition to what the Contractor is required to furnish in limited quantities as part of the work or services under these specifications, the Contractor shall provide such additional copies as are requested, and City shall compensate the Contractor for the costs of duplicating of such copies at the Contractor's direct expense.

7. Required Deliverable Products. The Contractor 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 RFQ. b. City staff will review any documents or materials provided by the Contractor and, where necessary, the Contractor will be required to respond to staff comments and make such changes as deemed appropriate.

F. FORM OF AGREEMENT
Please see Exhibit A for a sample agreement with the City’s general contract terms and conditions, and Exhibit B for Insurance Requirements. Provisions specific to the provider’s services that are the subject of this RFQ will be negotiated by the parties.

The City desires to begin work on an as-needed basis after selecting the preferred Consultants and expects the Consultants 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 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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G. PROPOSAL SUBMITTAL FORM: 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. PROPOSAL SUBMITTAL FORM: 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 ☐ No
 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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EXHIBIT A – FORM OF AGREEMENT

CITY OF SAN LUIS OBISPO

PROFESSIONAL SERVICES AGREEMENT
This agreement (Agreement) is made and entered into in the City of San Luis Obispo on [DATE], by and between the City of San Luis Obispo, a municipal corporation and charter city (City) and [FILL] hereinafter referred to as Consultant (collectively referred to as the “Parties”).

WITNESSETH:

WHEREAS, on [date], City requested proposals for [______________], per Project No. [xxxx] (the “Project”); and [Remove if no RFQ]
WHEREAS, the City wants to [generally describe the service we want performed] (the “Services”); and
WHEREAS, Consultant is qualified to perform this type of Services and has submitted a written proposal to do so, which has been accepted by City; and WHEREAS [describe any other supporting rationale for this Agreement]. [There can be as many WHEREAS sentences as needed to fully describe how the City and Consultant entered into the Agreement. If no additional sentences are needed this can be erased.] 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, until [date], or upon acceptance and completion of said Services, whichever occurs sooner. [If you plan to have an option to extend the agreement for some period after the term ends, insert that extension language here]

2. INCORPORATION BY REFERENCE. [Title of City’s RFQ] and Consultant's proposal dated [date] are hereby incorporated in and made a part of this Agreement, attached as Exhibit A. [If no RFQ attach Consultant/Consultant Proposal As Exhibit A]. The City’s insurance requirements are hereby incorporated in and made part of this Agreement, attached as Exhibit B. [Check with the City’s Risk Manager as to the risk level of the Agreement and to verify Consultant has sufficient insurance coverage forthat risk level BEFORE routing the Agreement to the Parties.] [If RFQ; the Consultant/Consultant Proof of Insurance should be with their bid package and can be attached and incorporated by reference in Exhibit A. You can remove the insurance as Exhibit B]. If no RFQ; then you must attach the insurance proof as Exhibit B] To the extent that

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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.

3. CITY’S OBLIGATIONS. For providing services as specified in this Agreement, and upon receipt of an invoice, City will pay and Consultantshall receive compensation as set forth in Consultant’s proposal and pursuant to the Payment Terms set forth in Exhibit B.

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. Consultantshall not incur or have the power to incur any debt, obligation, or liability whatsoever against City, or bind City in any manner.

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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.
c. Consultant/Consultant’s duties and services under this agreement shall not include preparing or assisting the public entity with any portion of the public entity’s preparation of a request for proposals, request for qualifications, or any other solicitation regarding a subsequent or additional contract with the public entity. The public entity entering this agreement shall at all times retain responsibility for public contracting, including with respect to any subsequent phase of this project. Consultant/Consultant’s participation in the planning, discussions, or drawing of project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications. Consultant/Consultant shall cooperate with the public entity to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by Consultant pursuant to this agreement.”

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 subConsultants 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 subConsultants 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. WORK SCHEDULED/TIME OF COMPLETION.

Note: This section is optional and should be included for time-sensitive projects City and Consultant agree that time is of the essence in this Agreement. City and Consultant further agree that Consultant's failure to perform on or at the times set forth in this Agreement will damage and injure City, but the extent of such damage and injury is difficult or speculative to ascertain. Consequently, City and Consultant agree that any failure to perform by Consultant at or within the times set forth herein shall result in liquidated damages for each and every day such

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performance is late or delayed. City and Consultant agree that such sum is reasonable and fair.

Furthermore, City and Consultant agree that this Agreement is subject to Government Code Section 53069.85 and that each party hereto is familiar with and understands the obligations of said Section of the Government Code.

14. 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.

15. 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.

16. 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 subConsultants, 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 subConsultants be served with any summons, complaint, subpoena, notice 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

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response does not imply or mean the right by City to control, direct, or rewrite said response.

17. CONFLICTS OF INTEREST. Consultant covenants that neither they nor any officer or principal of their firm have any interest in, or shall acquire any interest, directly or indirectly, which will conflict in any manner or degree with the performance of the Services hereunder. Consultant further covenants that in the performance of this Agreement, no person having such interest shall be employed by them as an officer, employee, agent, or subConsultant. Consultant further covenants that Consultant has not contracted with nor is performing any services, directly or indirectly, with any developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) owning property in the City or the study area and further covenants and agrees that Consultant and/or its subConsultants shall provide no service or enter into any agreement or agreements with a/any developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) owning property in the City or the study area prior to the completion of the work under this Agreement.

18. 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.

19. 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

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reasonable legal counsels’ fees 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 the ir costs of defense, including reasonable legal fees, incurred in defense of such claims. The review, acceptance or approval of the Consultant’s work or work product by any indemnified party shall not affect, relieve or reduce the Consultant’s indemnification or defense obligations. This Section survives the completion of the services or the termination of this contract. The provisions of this section are not limited by and do not affect the provisions of this contract relating to insurance. Consultant’s indemnification obligations under this section extend to any claims arising out of or related to the negligence, recklessness, or willful misconduct of any sub-Consultants/ subConsultants.

20. 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.

21. 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.

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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 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.

22. 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.

23. 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.

24. SAFETY PROVISIONS. The Consultant shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety.

25. 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.

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26. 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.

27. 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. NOTE: Use content below if applicable to the services rendered.

Because of the personal nature of the services to be rendered pursuant to this Agreement, only [Insert name], an employee of Consultant, shall perform the services described in this Agreement. [Insert name] may use assistants, under their direct supervision, to perform some of the services under this Agreement. Consultant shall provide City fourteen (14) days' notice prior to the departure of [Insert name] from Consultant's employ. Should [Insert name] leave Consultant's employ, the City shall have the option to immediately terminate this Agreement, within three (3) days of the close of notice of [Insert name]’s departure. Upon termination of this Agreement, Consultant's sole compensation shall be payment for actual services performed up to, and including, the date of termination or as may be otherwise agreed to in writing between the City and the Consultant.
b. 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, Consultantshall 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.

28. 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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29. 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.

30. 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: [DEPT]
City of San Luis Obispo
[ADDRESS]
Attention: Human Resources
To Consultant: Name
Mailing Address

31. 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.

32. 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.

IN WITNESS WHEREOF, the Parties hereto have caused this instrument to be executed the day and year first above written.

CITY CONSULTANT

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_______________________________
By: [Name]
Its: [Title of City Manager or Department Head]
_______________________________
By: [Name]
Its: [Title]
APPROVED AS TO FORM:
_______________________________
By: J. Christine Dietrick, City Attorney

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EXHIBIT B – INSURANCE REQUIREMENTS
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.

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 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 subconsultants.

Primary/noncontributing. Coverage provided by CONSULTANT shall be primary and any insurance or selfinsurance 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.

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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 subconsultants.

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 not contain any cross-liability exclusions.

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Pass through clause. CONSULTANT agrees to ensure that its subconsultants, subConsultants, 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, subConsultants, 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.

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: May 5, 2026
TO: Mayor and Council
FROM: Greg Hermann, Deputy City Manager
Prepared By: Samantha Vethavanam, Diversity, Equity, and Inclusion Admin Specialist VIA: Whitney McDonald, City Manager
SUBJECT: ITEM #7e. – GRANT AGREEMENT FOR THE ESTABLISHMENT OF A

MEDIATION SERVICES PROGRAM
Staff received the following questions, regarding the recommended action to authorize the City Manager to execute a one-time agreement with the Center for Dispute Resolution at San Luis Obispo College of Law (CDRSLO) for the establishment of a program to provide community mediation services and authorize the disbursement of funds in the amount of up to $10,000. The questions are below with responses provided verbatim by Erica Flores Baltodano, Campus Dean, San Luis Obispo College of Law and Interim Director, CDRSLO, shown in italics:
1) County Contribution: What financial contribution is the County making to support CDRSLO?
“We are finalizing a contract for $20,000 in start-up funding from the County via the courts. This is in addition to the $43,000 service contract beginning in July for dispute resolution services at San Luis Obispo County Superior Court (the Board of Supervisors delegates management of Dispute Resolution Program Act funds to the Court).

In addition to these County funds, we have met with individual County Supervisors who are eager to connect CDRSLO with County departments interested in partnering with CDRSLO to provide dispute resolution services to constituents, as Creative Mediation once did. We will pursue other pots of relevant grant funding from the County to support ongoing infrastructure costs as available and pursue County contracts for service consistent with CDRSLO’s model of sustainable phased growth.”

ITEM 7e. – GRANT AGREEMENT FOR MEDIATION SERVICES PROGRAM Page 2 2) Cal Poly Contribution: What is Cal Poly's financial commitment to this effort? “Discussions with Cal Poly for start-up funding and restoration of the SLO Solutions program are ongoing and multi-faceted, particularly considering Cal Poly’s recent focus on implementing CSU’s bold new Student Success Framework. We reported to the City and Cal Poly as soon as we received start-up funds from the County and will report to Cal Poly and Cuesta College if we receive start-up funds from the City to demonstrate a growing collective community effort to restore critical community mediation services.”
3) Service Area Eligibility: Will the mediation services be limited to those within City limits, or will they be available to residents throughout the County or just outside City limits?
“CDRSLO will be the only community mediation center in San Luis Obispo County, with the closest neighboring centers being located in Santa Maria to the south, Fresno to the east, and Monterey to the north. We aim to fill this gap in available dispute resolution services in accordance with CDRSLO’s model of sustainable phased growth. As contracts become available for particular constituents, populations, or demographic areas CDRSLO will serve those San Luis Obispo County residents. For example, the contract with the Superior Court that is anticipated to begin in July will provide a spectrum of dispute resolution services for SLO County residents who have or are considering filing small claims court claims.

As additional contracts or grants are acquired with other public, educational or foundation partners, services will be provided to those constituents accordingly.

Start-up funds received from the City of San Luis Obispo will not be used to directly fund the costs of ongoing service delivery to any residents but, rather, will be used to prepare the center to deliver services as additional contracts are established to serve particular areas or groups within the county.”
4) Fundraising Status Update: What is the status of fundraising for startup costs? How close is CDRSLO to receiving the funding needed to begin providing services?
“We have raised $34,600 from community members and anticipate receiving an additional $20,000 from the County (as noted above) once the contract is finalized toward our initial short-term fundraising goal. A $10,000 grant from the City of San Luis Obispo will help ensure that we meet our original goal and are able to establish the infrastructure needed to begin service delivery. CDRSLO will begin providing small claims mediation services in July and as funding and other contracts become available, we expect to start expanding services in the fall.”

Item 6e
Department: Administration
Cost Center: 1010
For Agenda of: 5/5/2025
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Samantha Vethavanam, Diversity, Equity, and Inclusion Admin Specialist SUBJECT: GRANT AGREEMENT FOR THE ESTABLISHMENT OF A MEDIATION

SERVICES PROGRAM

RECOMMENDATION
Authorize the City Manager to execute a one-time grant agreement, in a final form satisfactory to the City Attorney, with the Center for Dispute Resolution at San Luis Obispo College of Law for the establishment of a program to provide community mediation services and authorize the disbursement of funds in the amount of up to $10,000. (Attachment A)

POLICY CONTEXT
On February 13, 2026, Mayor Stewart and the City Council received a letter from the Center for Dispute Resolution at San Luis Obispo College of Law (CDRSLO) requesting grant funds to support the development of a new community mediation center intended to restore critical dispute resolution services to residents of San Luis Obispo.

Subsequently, this request was discussed at the February 17, 2026, City Council meeting where Council directed staff to gather more information about CDRSLO’s request and how the funding would be used. CDRSLO followed up with City Council in another letter dated March 1, 2026, to provide this additional information. At the March 3, 2026, City Council meeting, Council discussed the possibility of granting $10,000 that had been previously set-aside for mediation services for this request. Staff were ultimately directed to come back to the Council with a draft grant agreement for review and approval.

DISCUSSION
Background
The SLO Solutions Program was created in 2004 by Creative Mediation who worked with the City of San Luis Obispo, Cuesta College, and Cal Poly University to develop a specific approach to resolving community disputes. The City has contracted with Creative Mediation for the SLO Solutions Program since its inception in 2004. On September 1, 2023, the City executed a two-year agreement for purchase of services with Creative Mediation to offer the SLO Solutions Program to residents of San Luis Obispo. The SLO Solutions Program provided residents with unlimited access to community mediation

Item 6e
programs. The total cost of the services was $46,584 with the City paying $30,256 and partners Cal Poly University and Cuesta College paying $12,904 and $3,424 respectively.

The program was to run from July 1, 2023, to June 30, 2025.

The program provided no-cost conflict coaching, referral, and mediation services, as well as SLO Solutions workshops to residents and students in San Luis Obispo. The program additionally alleviated administrative burden on the City of San Luis Obispo by re-directing many interactions that would have required City staff time to mediation, as well as toward non-profit partners, such as the San Luis Obispo Legal Assistance Foundation. In June 2025, however, Creative Mediation closed unexpectedly due to the closure of its parent non-profit, Wilshire Community Services.

Grant Request
In response to the current gap in mediation services within the City, the San Luis Obispo College of Law contacted the Mayor and City Council on February 13, 2026, offering to host in-person mediation services using their facilities. To launch this effort, however, the San Luis Obispo College of Law identified a need for funding to cover start-up costs, including technology, website development, office equipment, initial staffing, and other operational essentials.

The total anticipated start-up cost is $89,718, of which the San Luis Obispo College of Law is proposing to contribute $32,840 in in-kind support. Through its newly established Center for Dispute Resolution, the San Luis Obispo College of Law has requested $30,000 from the City of San Luis Obispo to help offset these costs, while seeking the remaining $26,878 from additional community partners.

Previous Council Action
As noted above, the City Council discussed this request at the February 17, 2026, Council meeting during Item 6a., Review of the FY 2025-26 Second Quarter Budget Report.

During this item, the Council discussed the request and posed questions of staff. Staff noted that there was a total of $30,000 set-aside for mediation services over the next two fiscal years (FYs) through the contract with Creative Mediation. The Council discussed the possibility of granting less than the request as well as the repercussions of providing CDRSLO a grant given that the City plans to issue a Request for Proposals (RFP) for mediation services in summer 2026. Ultimately, Council directed staff to reach out to CDRSLO and gather more information regarding what, specifically, the requested funds would be used for and what could be included in a grant agreement.

CDRSLO followed up with another letter dated March 1, 2026, outlining the need for the request for $30,000, how the funds would be used, and how the funds would assist with the start-up and sustainability of the center. There was then a follow up discussion at the March 3, 2026, Council meeting during Item 6b., FY 2026-27 Budget Supplement Preview and Discussion of Operational Initiatives. City staff reiterated that there was $15,000 setaside for mediation services for each of the next two FYs and that, if Council were interested in granting funds, they could grant $10,000 for this current FY and save $5,000 if immediate mediation needs come up. Staff also clarified that there would not be a

Item 6e
conflict of interest if CDRSLO was awarded a grant and later responded to the RFP for mediation services.1 Council directed staff to come back with a draft grant agreement for the $10,000 to CDRSLO for the establishment of community mediation services for their review and approval.

Current Funding
Since CDRSLO’s March 1, 2026, communication with the City, the San Luis Obispo County Superior Court publicly announced its intention to award CDRSLO a $43,000 contract for small claims court mediation services beginning July 1, 2026. As the Court's procurement web page indicates, CDRSLO was the only bidder. Recognizing that CDRSLO was formed quickly to fill an urgent gap in services and that there are start-up costs associated with forming a new community mediation center to meet community needs, the Court is providing CDRSLO with an additional $20,000 in start-up funding to pre-date the July small claims court mediation contract. Meanwhile CDRSLO's Founders Circle has grown to include two new Bronze-level ($10,000) members (Loker Law and Mediation Central) and discussions are ongoing with other law firms, private mediators, individual donors, and community partners, including Cal Poly University.

Overview of the Draft Grant Agreement
The attached draft grant agreement outlines the conditions for the City’s proposed contribution of up to $10,000 to CDRSLO for start-up costs related to the establishment of community mediation services. Relevant sections include:
 Scope & Role: The Grantee’s submitted request is attached to the grant agreement as Exhibit A. Funds must be used only for approved purposes specified in Exhibit C of the grant agreement including a staff computer, outreach efforts, and software costs. Prohibited uses include political or religious activities, personal gain, stipends, City fees, or unrelated expenses. Misuse of funds may require repayment.
 Equity & Compliance: Funded activities must promote equitable access and nondiscrimination and must comply with all applicable laws and City requirements.  Funding & Timeline: The City provides a one-time $10,000 grant, paid upfront.

Funds must be spent within one year, with unused funds returned unless approved otherwise.
 Visibility & Public Access: Grantee agrees to acknowledge the support of the City in promotional and public-facing materials related to the funded program and must post a public nondiscrimination statement on their website within 10 calendar days of execution of the grant agreement.
 Reporting & Records: Grantee must submit a final report within 20 days of the end of the grant period and must retain records for 5 years. Failure to produce a final report may affect future funding eligibility.
 Insurance Coverage: Grantee shall maintain insurance coverage that meets the requirements included in Exhibit D.

1 The City Attorney’s office does not believe the prohibition against financial interests by a public official in a government contract (Government Code §1090) is implicated here, but the “safe harbor” language from Govt. Code §1097.6 has been added to the proposed grant agreement for the avoidance of doubt.

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 Administrative Terms: City funding does not equal endorsement of Grantee views or actions.

This draft grant agreement is on the consent agenda for the May 5, 2026, City Council meeting and will follow all required posting and notification. The public can submit comments on this item at or before the meeting.

CONCURRENCE
The proposed grant agreement has the concurrence of City Administration and has been approved as to form by the City Attorney’s office.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this report, because the projects recommended for funding do not constitute a “Project” under CEQA Guidelines Sec. 15378, as they will not result in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.

FISCAL IMPACT
Budgeted: Yes Budget Year: 2025-26
Funding Identified: Yes
Fiscal Analysis:

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $15,000 $10,000 $5,000 $
State
Federal
Fees
Other:

Total $15,000 $10,000 $5,000 $
The identified funding source for this grant agreement would be the Contract Services budget of the Police Department’s Neighborhood Services division in the General Fund.

The Department generally budgets $15,000 annually for these services.

ALTERNATIVES

1. Council may request changes to the draft Grant Agreement. If Council decides to request changes to the draft Grant Agreement, Council will need to pull the item from consent, deliberate, and provide direction to staff on the requested changes.

Item 6e

2. Council could decide not to authorize the City Manager to finalize and execute the draft Grant Agreement. If Council decides not to authorize the City Manager to finalize and execute the draft Grant Agreement, Council will need to pull the item from consent, deliberate, and vote to not approve the agreement or the grant to CDRSLO.

3. Council may increase or decrease the amount of the recommended grant of $10,000. If Council elects to increase or decrease the recommended grant amount, Council will need to pull the item from consent, deliberate, and vote on a new amount.

If the amount should exceed $10,000 the funding would need to come from either the unassigned fund balance or reallocated funds that have been determined to not be needed in the calendar year.

ATTACHMENTS
A - Grant Funding Request for Establishment of Community Mediation Services B - Response to Council Request for More Information Regarding CDRSLO Grant Funding Request
C - September 1, 2023, Agreement for Purchase of Services for SLO Solutions Program D - Draft Grant Agreement for the Establishment of Community Mediation Services with CDRSLO

To: City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
From: Advisory Board
Center for Dispute Resolution at San Luis Obispo College of Law 4119 Broad Street #200
San Luis Obispo, CA 93401
Attn: Mayor and City Council
Re: Grant Funding Request for Establishment of Community Mediation Services February 13, 2026
Dear Mayor Stewart and Honorable City Council Members:

This letter is written to formally request your consideration of granting funds to support the development of a new community mediation center intended to restore critical dispute resolution services to residents of San Luis Obispo.

As you are likely aware, San Luis Obispo’s former community mediation center, Creative Mediation, closed unexpectedly in June of 2025 due to the closure of its parent non-profit, Wilshire Community Services. This sudden termination of services left a significant resource gap for residents of San Luis Obispo, particularly with the loss of mediation, conflict coaching and related conflict resolution services. These services were particularly essential to SLO PD, City code enforcement, and other community partners such as Cal Poly, Cuesta, the Superior Court of San Luis Obispo, the Legal Assistance Foundation, and other nonprofits that regularly referred residents for free and low-cost dispute resolution services.

You may also be aware that former volunteers and staff of Creative Mediation are currently working closely with San Luis Obispo College of Law (a branch of Monterey College of Law) to create a new community mediation center to fill this critical gap in services. The new Center for Dispute Resolution at San Luis Obispo College of Law (CDRSLO), is currently raising funds to support critical infrastructure development. In addition to seeking support from local

philanthropists, CDRSLO is requesting fiscal support from key community partners, including the City of San Luis Obispo, Cal Poly, and Cuesta College.

Fortunately, San Luis Obispo College of Law is able to provide space for the delivery of in-person mediation services; however, costs associated with technology needs such as website development, office equipment, preliminary staff to establish the center and other essential expenses must be raised in order to launch programs to meet community needs. Attached, you will find an outline of anticipated CDRSLO start-up costs and several letters of support from community partners. We thank you in advance for your review and consideration of a one-time grant of $30,000.00 to help restore access to conflict resolution services to the San Luis Obispo community. Support from the City of San Luis Obispo and other key community partners listed herein will help establish a fully functioning and sustainable community mediation center to serve residents for decades to come.

Sincerely,
CDRSLO Advisory Board Members
Lisa Sperow
President/CEO
Monterey College of Law
[email protected]
(831) 717-7290
Erica Flores Baltodano
Campus Dean
San Luis Obispo College of Law
[email protected]
(805) 322-3412
Dena Dowsett
Assistant Dean of Market Development
Monterey College of Law
[email protected]
(831) 233-9861

Nicolina Galante
Community Mediator/Former Division Manager at Creative Mediation [email protected]
Samantha Watkins
Former Director, Creative Mediation
Mediator/Owner
Solve Consulting and Mediation, LLC
[email protected]
(805) 440-3154
Steffanie Medina
Former Director, Creative Mediation
Mediator/Owner, Flow LLC
[email protected]
(805) 202-8539
Jason Mockford
Senior Director, Leadership & Service
California Polytechnic State University
[email protected]
(805) 756-5457
Kelly Donohue
Former Community Mediator
[email protected]
(310) 666-8013

Center for Dispute Resolution at the San Luis Obispo College of Law Start-Up Budget Estimates
Expense Budget
IT, Website and Telephone
● Initial expense to establish dedicated phone line
● Purchase of case management software
● Initial expense to develop cloud-based file sharing
● Initial expense to establish video conferencing subscription ● Development of Interactive website
20,450
Tech Equipment
● Staff computer
2,500
Community Outreach
● Materials and Print Services
● Social Media
2,000
Insurance
● Initial installment to establish Professional Liability and Workplace coverage
2,100
Staffing
● Hiring Costs
● Salary for director (anticipated 0.7 FTE)
● Specialized training in community mediation
29,828
SLO College of Law In-Kind Investment
● Designated Office Space
● Conference Room
● Caucus Rooms
● Training Rooms
● Wifi
● Photocopier and Scanner
● Office Furniture and Supplies
● Administrative Support and Overhead
32,840
Anticipated Start Up Expenses $89,718.00
SLO College of Law In-Kind Investment ($32,840.00)
Funds Needed $56,878.00
Requested Grant Monies from City of SLO $30,000.00
Additional Funds to be Raised through Private Donor Fundraising and Contributions from other Key Community Partners (Cal Poly, Cuesta, etc.)
$26,878.00

Providing Access to justice since 1992
3232 South Higuera Street, Suite 101D, San Luis Obispo, CA 93401 Phone: (805) 543-5140 www.slolaf.org
January 29, 2026
Erica Baltodano
Campus Dean
San Luis Obispo College of Law
4119 Broad Street, Suite 200
San Luis Obispo, CA 93401
Re: Center for Dispute Resolution at San Luis Obispo College of Law Dear Dean Baltodano:

I was thrilled to hear about SLO College of Law’s efforts to establish a Center for Dispute Resolution at San Luis Obispo College of Law to restore local access to free and low-cost conflict resolution services. When Creative Mediation (a Wilshire Community Services program) closed last year, our community lost an important program that helped countless SLO County residents resolve their disputes and avoid protracted litigation. All of us in the legal services business referred to Creative Mediation on a regular basis. There is now a gap in services that we are hoping SLO College of Law will be able to fill.

Most people don’t know that Creative Mediation was SLOLAF’s first program. SLOLAF was incorporated in 1992 as San Luis Obispo Legal Alternatives, Inc. with the support of a collaboration of professionals representing legal aid, law enforcement, social services, churches, and financial institutions. It was called “Conflict Resolution Program” until 2001 when the name was changed to “Creative Mediation Services.” With SLOLAF’s support, in 2002, Creative Mediation spun off and formed its own non-profit and operated successfully and independently until it was absorbed by Wilshire Community Services. It was such a loss when that program shut down.

If there is anything I can do to further support San Luis Obispo College of Law’s efforts to launch the Center for Dispute Resolution, please let me know.

Sincerely,
Stephanie Barclay
Executive Director

To: City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
From: Advisory Board
Center for Dispute Resolution at San Luis Obispo College of Law 4119 Broad Street #200
San Luis Obispo, CA 93401
Attn: Mayor and City Council
Re: Response to Council Request for More Information Regarding CDRSLO Grant Funding Request
March 1, 2026
Dear Mayor Stewart and Honorable City Council Members:

Thank you for your consideration and robust discussion regarding the grant request made by the Center for Dispute Resolution at San Luis Obispo College of Law (CDRSLO) at the February 17th City Council meeting. We understand that the council would like more information about the requested $30,000 for one-time funds to support the establishment of a new community mediation center.

In order to begin providing services to community members, the first critical step for the new mediation center is to hire a staff member who will provide the administrative oversight for establishing necessary technology and physical infrastructure, developing a pool of trained volunteer mediators, responding to RFPs to secure sustainable program funding, and facilitating other preparations for program start up. The staffing costs as outlined in the Start-Up Budget Estimate represent only the initial staffing costs to be incurred before programs are established with ongoing contract funding streams.

The total costs for establishing the center, including both the initial pre-program staff expense and other costs associated with preparing for program start up, are estimated at $89,718. The

San Luis Obispo College of Law has offered to provide physical space, wifi and office supplies, bringing the total needed down to $56,878.

The Center for Dispute Resolution is seeking the support of the City of San Luis Obispo as the critical first partner to help offset these one-time costs. A contribution of $30,000 from the city would allow for the following initial costs to be covered:
● Purchase of Staff Computer: $2,500
● Community Outreach (Digital and Print): $2,000
● Initial Insurance: $2,100
● Staffing, Specialized Training and [a portion of] Initial Salary: $23,400 Our hope is that other key partners, such as Cal Poly and Cuesta College, will join with the city to help cover the remaining $26,878 needed, as outlined in the original request for grant funding. Those additional costs include:
● IT, Website and Telephone: $20,450
● Remaining Portion of Initial Staff Salary: $6,428
In addition to seeking funding from key community partners to offset the one-time start-up costs outlined above, the CDRSLO Advisory Board has been working to establish a network of philanthropic supporters from the community to develop a sustainable funding mix that will lead to a successful, sustainable community mediation center that can serve our community for decades to come. As you know, developing relationships with private donors requires stewardship over time, and the dividends of these efforts will take time to come to fruition.

Onboarding a staff member to serve as the hub of the wheel from an administrative perspective is sure to accelerate these efforts.

We want to deeply thank the city for considering this request to play a critical role in supporting the re-establishment of this essential community resource. Our volunteer advisory board is committed to seeing this project through, as we know firsthand how vital conflict resolution services have been to our community. Thank you for your consideration and support.

Sincerely,
CDRSLO Advisory Board Members
Lisa Sperow
President/CEO
Monterey College of Law
[email protected]
(831) 717-7290

Erica Flores Baltodano
Campus Dean
San Luis Obispo College of Law
[email protected]
(805) 322-3412
Dena Dowsett
Assistant Dean of Market Development
Monterey College of Law
[email protected]
(831) 233-9861
Nicolina Galante
Community Mediator/Former Division Manager at Creative Mediation [email protected]
Samantha Watkins
Former Director, Creative Mediation
Mediator/Owner
Solve Consulting and Mediation, LLC
[email protected]
(805) 440-3154
Steffanie Medina
Former Director, Creative Mediation
Mediator/Owner, Flow LLC
[email protected]
(805) 202-8539

Jason Mockford
Senior Director, Leadership & Service
California Polytechnic State University
[email protected]
(805) 756-5457
Kelly Donohue
Former Community Mediator
[email protected]
(310) 666-8013
Attachments: Start-Up Budget Estimates

Center for Dispute Resolution at the San Luis Obispo College of Law Start-Up Budget Estimates
Expense Budget
IT, Website and Telephone
● Initial expense to establish dedicated phone line
● Purchase of case management software
● Initial expense to develop cloud-based file sharing
● Initial expense to establish video conferencing subscription ● Development of Interactive website
20,450
Tech Equipment
● Staff computer
2,500
Community Outreach
● Materials and Print Services
● Social Media
2,000
Insurance
● Initial installment to establish Professional Liability and Workplace coverage
2,100
Staffing
● Hiring Costs
● Salary for director (anticipated 0.7 FTE)
● Specialized training in community mediation
29,828
SLO College of Law In-Kind Investment
● Designated Office Space
● Conference Room
● Caucus Rooms
● Training Rooms
● Wifi
● Photocopier and Scanner
● Office Furniture and Supplies
● Administrative Support and Overhead
32,840
Anticipated Start Up Expenses $89,718.00
SLO College of Law In-Kind Investment ($32,840.00)
Funds Needed $56,878.00
Requested Grant Monies from City of SLO $30,000.00
Additional Funds to be Raised through Private Donor Fundraising and Contributions from other Key Community Partners (Cal Poly, Cuesta, etc.) $26,878.00

CITY OF SAN LUIS OBISPO

AGREEMENT FOR PURCHASES OF SERVICES
This 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, hereinafter referred to as City, and CAP POLY CORPORATION, hereinafter referred to as Consultant.

W I T N E S S E T H:

WHEREAS, the City wants to offer a SLO Solutions Program to residents of San Luis Obispo, through a 2 year contract (July 1, 2023 to June 30, 2025) with Creative Mediation, which would provide residents with unlimited access to community mediation programs and will cost a total of $46,584 with offsetting costs paid by Cal Poly University and Cuesta College, thereby reducing the City’s net cost to $30,256 for the contract period; and
WHEREAS, the City has agreed to contract with Creative Mediation for that portion of the program costs prorated to the City ($30,256); and
WHEREAS, Cal Poly University has agreed to execute a separate contract with Creative Mediation for Cal Poly’s portion of the SLO Solutions Program costs ($12,904); and WHEREAS, Cuesta College has agreed to execute a separate contract with Creative Mediation for Cuesta’s portion of the SLO Solutions Program costs ($3,424); and WHEREAS, the City, Cal Poly and Cuesta College have all agreed to execute an agreement to participate in the SLO Solutions Program; and
WHEREAS, Contractor is qualified to perform this type of service and has submitted a proposal to do so, which has been accepted by City.

NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows:

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, and include work started on July 1, 2023, and after, until June 30, 2025.

2. INCORPORATION BY REFERENCE. Consultant's proposal is hereby incorporated in and made a part of this Agreement, attached as Exhibit A. The City’s standard terms and conditions are attached as Exhibit B The City’s insurance requirements are hereby incorporated in and made part of this Agreement, attached as Exhibit C. 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.

DocuSign Envelope ID: 3F96FBCB-3A6A-422C-90A6-69889932C9DD 9/1/2023 | 11:44 AM PDT

3. CITY'S OBLIGATIONS. For providing services as specified in this Agreement, and upon receipt of an invoice, City will pay and Contractor shall receive therefor compensation set forth in Exhibit A.

4. CONSULTANT’S OBLIGATIONS. For and in consideration of the payments and agreements hereinbefore mentioned to be made and performed by City, Contractor agrees with City to do everything required by this Agreement and the said specifications set forth in Exhibit A.

5. AMENDMENTS. Any amendment, modification or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the City Manager.

6. 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.

7. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as follows:

City City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
Attn: Christine Wallace
Consultant Creative Mediation
Wilshire Community Services 285 South Street, Suite J
San Luis Obispo, CA 93401

8. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that everyone executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party.

IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written.

CITY OF SAN LUIS OBISPO:

By:_____________________________________
Police Chief
APPROVED AS TO FORM: CONSULTANT:
________________________________ By: _____________________________________ City Attorney
DocuSign Envelope ID: 3F96FBCB-3A6A-422C-90A6-69889932C9DD

1 For More Information Contact: Creative Mediation
Phone: 805-549-0442
Web: www.creativemediation.org
Creative Mediation’s “SLO Solutions Program”
Providing real solutions to community challenges.

July 1, 2023 – June 30, 2025
About the SLO Solutions Program
Many of America’s communities struggle to address issues that are critical to their environmental, social and economic health. With shrinking resources, it becomes increasingly difficult to manage the changing demands of civic administration and community involvement.

To avoid adversarial and ineffective methods of confronting conflict, public officials and civicminded community leaders must find forums that bring people together to seek common ground.

In 2004, Creative Mediation worked with the City of San Luis Obispo, Cuesta College, and Cal Poly to develop and implement a unique approach to resolving community disputes. Out of this ingenuity was born the SLO Solutions program. This opened new windows of opportunity for resolving a range of conflicts including landlord-tenant, roommate and neighbor-neighbor disputes. This program offers prevention and resolution services to support a civil and healthy community for all. Today the program continues to provide no-cost conflict coaching, referral, and mediation services, as well as SLO Solutions workshops to residents and students in San Luis Obispo.

The SLO Solutions Program is funded by the City of San Luis Obispo, Cal Poly State University, and Cuesta College. Each partner pays fees based on the number of residents they are allocated within the city. Residents living in the City of San Luis Obispo have unlimited access to the program at no cost to those individuals. It also alleviates the administrative burden on City Government by re-directing many inappropriate interactions with judicial and public officials to mediation, thus saving time and money.

As the local not-for-profit community mediation center, Creative Mediation has been serving San Luis Obispo County for more than 25 years. Our center is well known as an alternative to the courts and small claims court judges consistently refer cases for mediation. The SLO Solutions Program provides broad and convenient access to our services through sponsorship from the partner agencies.

Why Use Mediation to Resolve Conflict?
There are many social and economic costs associated with a failure to resolve community conflict in a proactive manner. Unresolved conflict leads to gridlock and impasse. The possibility of devising meaningful solutions fades as people take sides and hold their ground. Financial and social resources are spent fighting particular options rather than seeking common solutions.

Most importantly, when common ground and understanding are not found, the community loses.

In our community, unresolved conflict can create serious and varied consequences, which include:
▪ Public safety concerns ▪ Student/Community unrest
DocuSign Envelope ID: 3F96FBCB-3A6A-422C-90A6-69889932C9DDExhibit A

2 For More Information Contact: Creative Mediation
Phone: 805-549-0442
Web: www.creativemediation.org
▪ Lack of trust with community members
and public officials
▪ Marginalizing student contributions in
the community
▪ Unclear communication and patterns of
misunderstanding
▪ Reduced productivity and collaboration
▪ Increased administration overhead
▪ Increased stress
SLO Solutions is not a program designed to replace, augment or in any way impact the legal rights, policies, protocols, or programs of the agencies involved. This program is not a substitute for or a supplement to the intra-agency or inter-agency dispute resolution process. It is specifically for the residents of the City on a resident to resident basis.

Examples of Community Solutions in Action
The SLO Solutions Program primarily features mediation and conflict coaching services. The processes used in mediation are needed in many different aspects of civic life; they are not always just about resolving disputes. The processes are also useful for consensus building among people who come to an issue from differing perspectives. Sometimes mediation can take the form of bringing people from different interest groups together to work on a particular project.

At other times, it can help groups or individuals establish constructive dialogue to move past a point of conflict to address shared areas of disagreement.

There are many appropriate situations where trained mediators can improve the civic health of our community, including the following:
▪ Landlord/Tenant Disputes
▪ Student/Non-Student Disputes
▪ Neighbor to Neighbor Disputes
▪ Facilitated Neighborhood Meetings
▪ Community Agencies & Essential
Services
▪ Business to Business
▪ Intra-business/Organization
communication skills
How the SLO Solutions Program Works
Mediation and conflict coaching services are provided free of charge to residents (both student and non-student), as well as employees of the city. SLO Solutions Workshops are offered on and off campus. The advantage of a SLO Solutions Program lies in the outreach and promotion work that is an ongoing effort of Creative Mediation. Creative Mediation provides access to multiple approaches to promoting the use of the service, thus enabling the city and other program partners to derive the greatest benefits. As residents make use of the SLO Solutions Program, city services such as police, planning, and code enforcement tend to experience less demand for help in issues which are not really appropriate for them to address. In addition, residents are able to shape solutions which meet their needs and result in a healthier community spirit.

DocuSign Envelope ID: 3F96FBCB-3A6A-422C-90A6-69889932C9DD

3 For More Information Contact: Creative Mediation
Phone: 805-549-0442
Web: www.creativemediation.org
What Are the Benefits of the SLO Solutions Program?
First and foremost, conflict coaching offers the opportunity for residents to talk directly with a mediator to discuss their situation, determine their needs and priorities, and de-escalate their emotional reactions. For those choosing mediation, the presence of a neutral third party reduces stress, while also encouraging both parties to be accountable and reasonable. Mediation is a voluntary, non-adversarial process where both parties fully participate and the mediator can facilitate the negotiation of an agreement. To ensure parties’ comfort and privacy, mediation sessions are held in an informal and confidential environment, where parties can address a range of private matters. Mediation can be beneficial to not only the parties involved, but to other members of the community as well. More benefits include:
▪ Solve Problems Quickly – Mediation and conflict coaching are efficient ways to solve a wide range of community and neighborhood issues. What is more, it saves time, saves money, is convenient and always confidential.
▪ Community Empowerment – Community members increase their command of situations when they take personal responsibility for resolving their problems. ▪ Neighborhood Safety – Community members and police have alternative ways of handling conflict. The community mediation center is a source for conflict management that can de-escalate disputes, create safer communities and reduce tensions. ▪ Avoid Court Involvement and Save Taxpayer Dollars – Disputes that are resolved outside of court through mediation save taxpayer dollars and promote less adversarial outcomes and settlements.
▪ Joint Ownership – Community members share responsibility with University, Community College, and City officials and the local police for ensuring their community’s safety and well being.
▪ Better Community Relations – Police, University officials and civic leaders model and provide a forum for productive dialogue and peaceful problem-solving.

DocuSign Envelope ID: 3F96FBCB-3A6A-422C-90A6-69889932C9DD

4 For More Information Contact: Creative Mediation
Phone: 805-549-0442
Web: www.creativemediation.org
SLO Solutions Program Services & Fees:

The SLO Solutions Program is funded by the sponsor agencies and is based on the total number of individuals served.

Total Annual Program Cost:

Number of San Luis Obispo Residents Served: 45,119 (x .483) = $21,792 Marketing Costs = $ 1,500
Total Annual Program Cost = $23,292
Breakout of Two Year Program Cost:

July ’23 – June ’25 Number of San Luis Obispo Residents Served 45,119 (x .483) = $21,792
July ’23 – June ’25 Number of San Luis Obispo Residents Served 45,119 (x. 483) = $21,792
July ‘23 – June ’25 Marketing Costs = $ 1,500
July ‘23 – June ’25 Marketing Costs = $ 1,500
Total 24-Month Program Cost = = $46,584
24-Month Contract Fee Breakdown by charges by sponsor:

CUESTA COLLEGE
Marketing 7.35% x $3000 = $ 221
SLO Solutions Program Fee - Cuesta College Students in San Luis Obispo: 7.35% x $43,584 = $3,203 Total Cuesta College (7.35% of Total SLO Solutions Contract based on population) = $3,424

CAL POLY
Marketing 27.7% x $3000 = $ 831
SLO Solutions Program Fee - Cal Poly Students in San Luis Obispo: 27.7% x $43,584 = $12,073 Total Cal Poly (27.7% of Total SLO Solutions Contract based on population) = $12,904

CITY OF SAN LUIS OBISPO
Marketing 64.95% x $3000 = $ 1,948
SLO Solutions Program Fee - Non-Student Residents in San Luis Obispo: 64.95% x $43,584 = $28,308 Total City of SLO (64.95% of Total SLO Solutions Contract based on population) = $30,256 Total Contract for SLO Solutions: = $46,584
The 2023– 25 SLO Solutions contract begins July 1st, 2023 and continues through June 30th, 2025.

DocuSign Envelope ID: 3F96FBCB-3A6A-422C-90A6-69889932C9DD

5 For More Information Contact: Creative Mediation
Phone: 805-549-0442
Web: www.creativemediation.org
Program Services:

The SLO Solutions Program offers residents the following services:

A. Information, Referral & Assistance: A Conflict Resolution Specialist is available by telephone, to assist residents who have specific questions relating to a conflict. Through this conversation the resident may clarify issues of concern, be given specific information about common practices related to their specific dispute (e.g., landlord-tenant, neighbor v. neighbor, etc.) and receive a referral to an appropriate agency/resource or information about Creative Mediation. (Up to 15-minute contact)
B. Conflict Coaching: A Conflict Resolution Specialist assists a caller to think through a conflict situation, including clarifying issues and interests of involved parties, exploring approaches to dealing with the situation and solution options and assisting with the selection of an approach to resolution. A follow-up call may be arranged to determine the outcome of the situation, with the understanding that mediation would be the next step if negotiation is unsuccessful. (An average of 20+ min).

Beginning in Fall 2021, fully trained volunteer mediators will be available to provide prescheduled, face-to-face conflict coaching sessions to SLO Solutions clients. This expansion will allow Creative Mediation to serve even more residents in need of conflict resolution services.

C. Phone/Shuttle Mediation: Conciliation is the resolution of a conflict through the intervention of a neutral third party, without the disputing parties coming together in a face to face mediation. In a limited number of cases, Dispute Resolution Specialist works with a resident, clarifying issues of concern, explaining approaches to seeking resolution and gaining agreement by the party to pursue mediation and case intake. A case development process involving contacts with both/all involved parties is initiated, and during that process a resolution of concerns is achieved to the satisfaction of the involved parties.

D. Mediation Services: Mediation through Creative Mediation involves a face to face meeting between disputing parties who call Creative Mediation directly or are referred by city staff or community agencies. With the assistance of a panel of trained volunteer mediators, parties work through a non-adversarial problem-solving process and attempt to develop a mutually acceptable resolution to the issues of concern. There is a two-fold focus: development of a satisfying and durable agreement and the preservation of an effective relationship in situations where the parties will continue to be in contact with each other.

E. Administration of a Community Mediation Program: In collaboration with the contracting city, Creative Mediation will administer a Mediation Program responsive to the unique needs of the community. Creative Mediation may utilize a Program development advisory committee and solicit input from city staff to develop an understanding of (1) unique areas of concern in the city, (2) potential approaches to Program initiation and implementation and (3) long term goals for the Program. Professional staff will manage and support the work of volunteers who provide the direct service to clients in most DocuSign Envelope ID: 3F96FBCB-3A6A-422C-90A6-69889932C9DD

6 For More Information Contact: Creative Mediation
Phone: 805-549-0442
Web: www.creativemediation.org
instances.

F. Facilitation of Community/Neighborhood Meetings: Working with local representatives, Creative Mediation will provide facilitation of community meetings that bring multiple stakeholders together and seek common understanding for awareness and decision making. These meetings proactively reach out to community members in nonconflict situations, bringing them together to share feedback in a productive environment. (Up to two meetings of a maximum 15 participants each are included with the SLO Solutions Program fee. Additional meetings can be scheduled as needed at Creative Mediation’s regular service fee rates.)
G. Promotion and Use of Conflict Resolution Services: A member city will participate in Creative Mediation’s community outreach Program which is designed to familiarize city staff, students, community service providers and the public with the use of nonadversarial conflict resolution services in a variety of conflict situations. This effort involves making presentations, developing press releases, targeted social-media coverage and identifying referral points where community members can receive information about Creative Mediation’s services. Member cities are also expected to promote the use of conflict resolution services.

H. Recruitment and Training of Community Volunteers: Creative Mediation will develop and maintain a pool of trained volunteer mediators, case developers and facilitators to serve the conflict resolution needs of the community. Additionally, Creative Mediation hosts two student interns/volunteer mediators for a minimum of six months, two times per year. As a result, a number of community members will become skillful in the interestbased approach to conflict resolution. Creative Mediation volunteers complete approximately 45 hours of training and practicum in alignment with ACR’s Model Standards of Training for Mediator Conflict Programs.

I. Community Solutions Workshops: Creative Mediation will offer opportunities for community members, city employees and volunteers to improve and enhance their conflict resolution skills. There will be opportunities for learning and practicing the essential elements of mediation and collaborative decision-making. Creative Mediation will coordinate with student leaders to hold SLO Solutions Workshops on the Cal Poly and Cuesta campuses.

J. Discounted Conflict Mediation Services: If the City of SLO, Cal Poly, or Cuesta wants to utilize additional conflict resolution services offered by Creative Mediation, they will receive a 20% discount.

Marketing:

Creative Mediation will work with the SCLC SLO Solutions sub-committee and the program partners to continue to market the SLO Solutions program to City residents, using such materials as posters, flyers, advertisements, and social media.

DocuSign Envelope ID: 3F96FBCB-3A6A-422C-90A6-69889932C9DD

7 For More Information Contact: Creative Mediation
Phone: 805-549-0442
Web: www.creativemediation.org
Information about Creative Mediation
Creative Mediation is a public benefit corporation serving San Luis Obispo County since 1993.

Our work is designed to facilitate effective communication and conflict resolution for individuals, organizations and communities. To achieve this mission, Creative Mediation engages in three primary activities: mediation, facilitation and training. Creative Mediation endeavors to involve all sectors of the community in its efforts including, but not limited to individual community members, businesses and business leaders, government, education, public agencies and nonprofit organizations.

Other Services Available Through Creative Mediation
Specialized conflict resolution training and professional services, available for a fee, through Creative Mediation, will be defined as requests for “specialized services” and are not included in the city’s SLO Solutions Program fee. Estimates of total charges for conflict resolution, facilitation or training services in a specific case will be provided by Creative Mediation when the service is being arranged. These charges will be based on the number of hours involved in providing the service. Other services include:

Specialized Services
A neutral third party assists a group of people to achieve their goals within a structured meeting or meetings. These goals may include identification of concerns and underlying interests, clear communication of differing opinions and development of a systematic, interest-based approach to problem solving.

Specialized Training
Creative Mediation partners with Flow, LLC to offer training opportunities for supervisory personnel, public contact employees, department managers, and others which include theory and practice of interest-based conflict resolution, negotiation and mediation skills, communication skills and meeting management.

Specialized Mediation
Volunteer community mediators are best utilized in situations in which resolutions can be developed in a relatively short period of time. When there are multiple parties, complex issues or the need for specialized knowledge, professional mediators from the Creative Mediation staff and/or outside consultants may be needed.

Conflict Resolution System Design
Creative Mediation works with local professional trainers and coaches in assisting organizations in building internal conflict resolution capacity, i.e., the development of policies and procedures for interest-based dispute prevention and early resolution. This service is tailored to the unique needs of the individual group but is based on recognized and proven design principles.

Cal Poly Internship Program
Creative Mediation partners with the Cal Poly Psychology and Child Development departments to provide internship opportunities for students as part of their graduation requirement. The focus of the program is peer-facilitated conflict coaching to students on campus with regard to landlordtenant, roommate, and neighbor conflicts.

DocuSign Envelope ID: 3F96FBCB-3A6A-422C-90A6-69889932C9DD

EXHIBIT B

GENERAL TERMS AND CONDITIONS

1. Business License & Tax. The Contractor 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.

2. Ability to Perform. The Contractor warrants that it possesses, or has arranged through subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out and complete the work hereunder in compliance with all federal, state, county, city, and special district laws, ordinances, and regulations.

3. Laws to be Observed. The Contractor shall keep itself fully informed of and shall observe and comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances, regulations and adopted codes during its performance of the work.

4. Payment of Taxes. The contract prices shall include full compensation for all taxes that the Contractor is required to pay.

5. Permits and Licenses. The Contractor shall procure all permits and licenses, pay all charges and fees, and give all notices necessary.

6. Safety Provisions. The Contractor shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety.

7. Public and Employee Safety. Whenever the Contractor’s 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.

8. Preservation of City Property. The Contractor 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 the Contractor’s operations, it shall be replaced or restored at the Contractor’s expense. The facilities shall be replaced or restored to a condition as good as when the Contractor began work.

9. Immigration Act of 1986. The Contractor warrants on behalf of itself and all DocuSign Envelope ID: 3F96FBCB-3A6A-422C-90A6-69889932C9DD

subcontractors engaged for the performance of this work that only persons authorized to work in the United State pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work hereunder.

10. Non-Discrimination. In the performance of this work, the Contractor agrees that it will not engage in, nor permit such subcontractors 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.

11. Work Delays. Should the Contractor be obstructed or delayed in the work required to be done hereunder by changes in the work or by any default, act, or omission of the City, or by strikes, fire, earthquake, or any other Act of God, or by the inability to obtain materials, equipment, or labor due to federal government restrictions arising out of defense or war programs, then the time of completion may, at the City’s sole option, be extended forsuch periods as may be agreed upon by the City and the Contractor. In the event that there is insufficient time to grant such extensions prior to the completion date of the contract, the City may, at the time of acceptance of the work, waive liquidated damages that may have accrued for failure to complete on time, due to any of the above, after hearing evidence as to the reasonsfor such delay, and making a finding as to the causes of same.

12. 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 Contractor (Net 30).

13. Inspection. The Contractor shall furnish City with every reasonable opportunity for City to ascertain that the services of the Contractor are being performed in accordance with the requirements and intentions of this contract. 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 Contractor of any of its obligations to fulfill its contract requirements.

14. Audit. The City shall have the option of inspecting and/or auditing all records and other written materials used by Contractor in preparing its invoices to City as a condition precedentto any payment to Contractor.

15. Interests of Contractor. The Contractor covenants that it presently has no interest, and shall not acquire any interest—direct, indirect or otherwise—that would conflict in any manner or degree with the performance of the work hereunder. The Contractor further covenants that, in the performance of this work, no subcontractor or person having such an interest shall be employed. The Contractor certifies that no one who has or will have any financial interest in performing this work is an officer or employee of the City. It is hereby expressly agreed that, in the performance of the work hereunder, the Contractor shall at all times be deemed an independent contractor and not an agent or employee of the City.

DocuSign Envelope ID: 3F96FBCB-3A6A-422C-90A6-69889932C9DD

16. Hold Harmless and Indemnification.
(a) Non-design, non-construction Professional Services: 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 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 active or passive negligence, except for such loss or damage arising from the sole 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. (b) Non-design, construction Professional Services: To the extent the Scope of Services involve a “construction contract” as that phrase is used in Civil Code Section 2783, this paragraph shall apply in place of paragraph A. 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 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, except for such loss or damage arising from the active negligence, sole 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. (c) Design Professional Services: In the event Consultant is a “design professional”, and the Scope of Services require Consultant to provide “design professional services” as those phrases are used in Civil Code Section 2782.8, this paragraph shall apply in place of paragraphs A or B. 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 all claims, damages, injuries, losses, and expenses including costs, attorney fees, expert consultant and expert witness fees arising out of, pertaining to or relating to, the negligence, recklessness or willful misconduct of Consultant, except to the extent caused by the sole negligence, active negligence or willful misconduct of the City.

Negligence, recklessness or willful misconduct of any subcontractor employed by Consultant shall be conclusively deemed to be the negligence, recklessness or willful misconduct of Consultant unless adequately corrected by Consultant. 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. In no event shall the cost to defend charged to Consultant DocuSign Envelope ID: 3F96FBCB-3A6A-422C-90A6-69889932C9DD

under this paragraph exceed Consultant’s proportionate percentage of fault. However, notwithstanding the previous sentence, in the event one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, Consultant shall meet and confer with other parties regarding unpaid defense costs.
(d) The review, acceptance or approval of the Consultant’s work or work product by any indemnified party shall not affect, relieve or reduce the Consultant’s indemnification or defense obligations. This Section survives completion of the services or the termination of this contract. The provisions of this Section are not limited by and do not affect the provisions of this contract relating to insurance.

17. Contract Assignment. The Contractor 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.

18. Termination for Convenience. The City may terminate all or part of this Agreement for any or no reason at any time by giving 30 days written notice to Contractor. Should the City terminate this Agreement for convenience, the City shall be liable as follows: (a) for standard or off-the-shelf products, a reasonable restocking charge not to exceed ten (10) percent of the total purchase price; (b) for custom products, the less of a reasonable price for the raw materials, components work in progress and any finished units on hand or the price per unit reflected on this Agreement. For termination of any services pursuant to this Agreement, the City’sliability will be the lesser of a reasonable price for the services rendered prior to termination, or the price for the services reflected on this Agreement. Upon termination notice from the City, Contractor must, unless otherwise directed, cease work and follow the City’s directions as to work in progress and finished goods.

19. Termination. If, during the term of the contract, the City determines that the Contractor is not faithfully abiding by any term or condition contained herein, the City may notify the Contractor in writing of such defect or failure to perform. This notice must give the Contractor a 10 (ten) calendar day notice of time thereafter in which to perform said work or cure the deficiency.

If the Contractor has not performed the work or cured the deficiency within the ten days specified in the notice, such shall constitute a breach of the contract and the City may terminate the contract immediately by written notice to the Contractor to said effect. Thereafter, neither party shall have any further duties, obligations, responsibilities, or rights under the contract except, however, any and all obligations of the Contractor’s surety shall remain in full force and effect, and shall not be extinguished, reduced, or in any manner waived by the terminations thereof.

In said event, the Contractor 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 Contractor as may be set forth in DocuSign Envelope ID: 3F96FBCB-3A6A-422C-90A6-69889932C9DD

8 the Agreement payment schedule; compensation for any other work, services or goods performed or provided by the Contractor shall be based solely on the City’s assessment of the value of the work-inprogress in completing the overall work scope.

The City reserves the right to delay any such payment until completion or confirmed abandonment of the project, as may be determined in the City’s sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall the Contractor be entitled to receive in excess of the compensation quoted in its proposal.

DocuSign Envelope ID: 3F96FBCB-3A6A-422C-90A6-69889932C9DD

EXHIBIT C

INSURANCE REQUIREMENTS
Consultants
Without limiting Consultant’s indemnification of City, and prior to commencement of work, Consultant obtain, provide, and maintain at its own expense during the term of this Agreement, policies of insurance of the types and amounts described below and in a form that is 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.

Umbrella or excess liability insurance. [If required to meet higher limits]. Consultant may obtain and maintain an umbrella liability insurance policy with limits that will provide bodily injury, personal injury, and property damage liability coverage, including commercial general liability, automobile liability, and employer’s liability. Such policy or policies shall • A drop include the following terms and conditions: -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, other than bankruptcy or insolvency of said primary insurer;
• “Pay on behalf of” wording as opposed to “reimbursement”; • Concurrency of effective dates with primary policies.

Excess insurance. Should Consultant obtain and maintain an excess liability policy, such policy shall be excess over commercial general liability, automobile liability, and employer’s liability policies. Such policy or policies shall include wording that the excess liability policy follows the terms and conditions of the underlying policies.

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 DocuSign Envelope ID: 3F96FBCB-3A6A-422C-90A6-69889932C9DD

Subrogation endorsement in favor of City, its officers, agents, employees, and volunteers Notice of cancellation. Consultant agrees to oblige its insurance agent or broker and insurers to provide the 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.

If any of the Consultant’s insurers are unwilling to provide such notice, then Consultant shall have the
responsibility of notifying the City immediately in the event of Consultant’s failure to renew any of the required insurance coverages or insurer’s cancellation or non-renewal.

Additional insured status. General liability, automobile liability, and umbrella/excess liability insurance policies shall provide or be endorsed to provide that City and its officers, officials, employees, agents, and volunteers shall be additional insureds under such policies.

Prohibition of undisclosed coverage limitations. None of the coverages required herein shall comply 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 not contain any cross-liability exclusions.

Pass through clause. Consultant agrees to ensure that its subconsultants, subcontractors, and any other party who is brought onto or involved in the project/service by Consultant (hereinafter
collectively “subcontractor”), 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. However, in the event Consultant’s subcontractor cannot comply with this requirement, which proof must be submitted to the City, Consultant shall be required to ensure that its subcontractor provide and maintain insurance coverage and endorsements sufficient to the specific risk of exposure involved with subcontractor’s scope of work and services, with limits less than required of the Consultant, but in all other terms consistent with the Consultant’s requirements under this agreement. This provision does not relieve the Consultant of its
contractual obligations under the agreement and/or limit its liability to the amount of insurance coverage provided by its subcontractors. This provision is intended solely to provide Consultant with the ability to utilize a subcontractor who may be otherwise qualified to perform the work or services but may not carry the same insurance limits as required of the Consultant under this agreement given the limited scope of work or services provided by the subcontractor.

Consultant
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agrees that upon request, all agreements with subcontractors, 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, or require proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention through confirmation from the underwriter.

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.

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CITY OF SAN LUIS OBISPO GRANT AGREEMENT
THIS AGREEMENT, dated ____________________________ for the convenience of the parties hereto, is between the CITY OF SAN LUIS OBISPO, a chartered municipal corporation (referred to herein as CITY), and the Center for Dispute Resolution at San Luis Obispo College of Law (referred to herein as GRANTEE).

WITNESSETH:

WHEREAS, GRANTEE requested $30,000 from the CITY in one-time start-up funds to establish a new community mediation center (the “Activities”) following the unexpected and sudden closure of Creative Mediation in June 2025 which greatly diminished the community’s access to free and low-cost dispute resolution services; and
WHEREAS, on May 5, 2026, the City Council agreed to contribute $10,000 to support GRANTEE’s request; and
WHEREAS, the Activities proposed by GRANTEE upon development of the community mediation center would help fill the resource gap left by the loss of Creative Mediation; and WHEREAS, the Activities further the priorities of the City Council and neighborhood wellness through the establishment of services that will be available to residents of the City, thereby serving both a public and municipal purpose.

NOW, THEREFORE, CITY and GRANTEE for and in consideration of the mutual benefits, promises, and agreements set forth herein, do agree as follows:

1. The Request submitted by the GRANTEE on March 1, 2026, is incorporated into this agreement by reference and attached as Exhibit A. The specific scope of work for which funding may be used is set forth in Exhibit C.

2. GRANTEE is and shall at all times remain as to the CITY a wholly independent contractor. Any persons performing the Activities under this Agreement on behalf of GRANTEE shall at all times be under GRANTEE'S exclusive direction and control.

Neither CITY nor any of its officers, employees, or agents shall have control over the conduct of GRANTEE or any persons performing the Activities under this Agreement on behalf of GRANTEE. GRANTEE shall not at any time or in any manner represent that it or any persons performing the Activities under this Agreement on behalf of GRANTEE are in any manner officers, employees, or agents of the CITY.

3. Government Code §1097.6: GRANTEE’s duties and services under this agreement shall not include preparing or assisting the CITY with any portion of the CITY’s preparation of a request for proposals, request for qualifications, or any other solicitation regarding a subsequent or additional contract with the CITY. CITY shall at all times retain responsibility for public contracting, including with respect to any subsequent phase of this project. GRANTEE’s participation in the planning, discussions, or drawing of project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications. GRANTEE shall cooperate with the CITY to ensure that all bidders for a subsequent contract on any subsequent

phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by GRANTEE pursuant to this agreement.

4. GRANTEE hereby certifies and agrees that the Activities will promote and advance equitable treatment to all members of the CITY community, in which all persons can enjoy equal rights and opportunities without regard to race, religion, sex, national origin, sexual orientation, age, or disability.

5. GRANTEE agrees that all grant funds must be used solely for activities and purposes that are specifically approved in this Agreement, as set forth in Exhibit C and in accordance with Section 6 below, or as otherwise approved in advance in writing by the CITY.

Grant funds may NOT be used for:
• Advancing, campaigning, advocating, promotion, or highlighting political entities, ballot measures, initiatives, or candidates.
• Advancing, advocating, promoting, or highlighting any religious causes, entities, individuals, or activities. Additionally, grant funds may not be used for the purpose of disseminating religious information in any form. • Activities that result in profit or personal financial gain. • Payment of CITY fees, permits, or fines.
• Personal expenses not directly related to the approved project. • Payment in the form of stipends, honoraria, or similar direct payments to individuals.

Any funds spent outside of the approved scope of work or in violation of these restrictions may be deemed unallowable and subject to repayment to the CITY.

6. GRANTEE will scope their Request in proportion to the amount of funding received, if not equal to the funding requested, so that the Request’s impacts are proportional to the funding received.

7. GRANTEE agrees to acknowledge the support of the CITY in promotional and publicfacing materials related to the funded program. This acknowledgment shall include the use of the City’s standardized emblem, which will be provided by the CITY upon request.

8. GRANTEE agrees that within ten (10) calendar days of the effective date of this Agreement, GRANTEE shall add the following statement to the homepage of its organization and/or program website(s), if any: “Any activities supported by the City of San Luis Obispo funds are open and accessible to all otherwise qualified members of the public and without regard to race, religion, sex, national origin, sexual orientation, age, or disability.” The same statement shall also appear on a clearly visible “About,” “Funding,” or equivalent informational page(s) of the website. The statement shall be displayed prominently and may not be modified, except for formatting necessary to align with the website’s design. Failure to comply with this requirement within the specified timeframe may be considered a breach of this

Agreement and cause for termination as stated below. GRANTEE shall send proof of added language to program administrator within the agreed upon time.

9. GRANTEE agrees to hold CITY harmless and to defend CITY against, from, and in any claim, action, proceeding, or hearing wherein there is an allegation charging liability on the part of the CITY as a result of any act or omission, negligent or otherwise, by GRANTEE.

10. CITY agrees to pay GRANTEE a one-time only grant, in the sum of $10,000, to be used for the Activities as described in Exhibit C and in accordance with this Agreement. The grant will be paid in one installment upon receipt of a fully executed contract. GRANTEE agrees that all funds awarded under this Agreement shall be expended within one (1) year of the date of execution of this Agreement. Any funds not expended within this period shall be returned to the CITY unless otherwise approved in writing by the CITY.

11. GRANTEE agrees to retain all financial and programmatic records related to the use of CITY grant funds for a minimum of five (5) years following the completion of the grant period. The CITY reserves the right to audit grant expenditures and documentation to ensure compliance with this Agreement.

12. GRANTEE will provide CITY with final program report, which will be due within twenty (20) days of the last date of the grant period which will summarize any administrative, financial, and performance outcomes related to the Activities. Said reports shall be in the form provided by the CITY as described in Exhibit B. Failure to provide required reports on time may result in disqualification from future CITY grant programs for a period of up to two (2) years and may require repayment of unexpended or improperly used funds to the CITY.

13. The CITY may terminate this agreement if 1) the funds appropriated for these Activities are no longer available, or 2) upon GRANTEE’S breach of this Agreement, including but not limited to failure to complete the Activities, failure to submit required reporting, or use of grant funds for an unlawful or unpermitted purpose or for a purpose other than furtherance of the Activities. Upon GRANTEE’S alleged breach, if curable, CITY shall notify GRANTEE in writing of the breach. If GRANTEE fails to cure the breach within ten (10) calendar days of receiving the notice, this Agreement shall be terminated.

13.1 If the Agreement is terminated due to GRANTEE’S breach, any funds not expended by GRANTEE in performance of the Activities at the time of termination, and/or any funds expended improperly as discussed in this section or Section 5 shall be returned to the CITY within ten (10) calendar days of said termination.

14. Any funds remaining unused by the last date of the grant period upon expiration of the Agreement pursuant to Section 10, or upon the termination of this Agreement pursuant to Section 13 above, shall be returned to CITY within ten (10) calendar days from the expiration or termination date of this Agreement. Should the CITY determine, following expiration of the Agreement, that funds were expended improperly as discussed in Section 5 or Section 13, such funds shall be returned to CITY within ten (10) calendar days of notification to the GRANTEE.

15. Intentionally omitted.

16. GRANTEE acknowledges and agrees that the CITY’s contribution is not necessarily an endorsement of any statements, opinions, findings, or conclusions made in GRANTEE’s Request or final report, and no such statements shall be attributed in any way to the CITY. Further, CITY’s contribution is not necessarily an endorsement of any actions GRANTEE may make, or of any statements or opinions GRANTEE may express.

17. GRANTEE shall not assign or transfer this Agreement, or any portion thereof, without prior written consent of the CITY.

18. GRANTEE agrees that this agreement may be amended only by written agreement signed by both the CITY and the GRANTEE.

19. GRANTEE shall comply with all applicable federal, state, and local laws, regulations, and ordinances.

20. For purposes of notice under this Agreement, all notices shall be delivered electronically via DocuSign or another City-approved electronic delivery or signature platform. Such electronic delivery shall be deemed equivalent to certified mail for purposes of official notice. Notices shall be considered effective upon transmission to the following electronic addresses:

CITY:

City of San LuisObispo
990 Palm Street
San Luis Obispo, CA93401
Attn: Greg Hermann, Department Head - Administration
GRANTEE:

Center for Dispute Resolution at San Luis
Obispo College of Law
4119 Broad Street, #200
San Luis Obispo, CA 93401
[email protected]
(805) 322-3412
Attn: Erica Flores Baltodano
IN WITNESS WHEREOF, the parties hereto have executed this agreement by their proper officers duly authorized:

Grantee
By:

CITY OF SAN LUIS OBISPO, A MUNICIPAL CORPORATION
By:

Greg Hermann, Deputy City Manager – Administration
APPROVED AS TOFORM:

By:

Christine Dietrick, City Attorney

To: City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
From: Advisory Board
Center for Dispute Resolution at San Luis Obispo College of Law 4119 Broad Street #200
San Luis Obispo, CA 93401
Attn: Mayor and City Council
Re: Response to Council Request for More Information Regarding CDRSLO Grant Funding Request
March 1, 2026
Dear Mayor Stewart and Honorable City Council Members:

Thank you for your consideration and robust discussion regarding the grant request made by the Center for Dispute Resolution at San Luis Obispo College of Law (CDRSLO) at the February 17th City Council meeting. We understand that the council would like more information about the requested $30,000 for one-time funds to support the establishment of a new community mediation center.

In order to begin providing services to community members, the first critical step for the new mediation center is to hire a staff member who will provide the administrative oversight for establishing necessary technology and physical infrastructure, developing a pool of trained volunteer mediators, responding to RFPs to secure sustainable program funding, and facilitating other preparations for program start up. The staffing costs as outlined in the Start-Up Budget Estimate represent only the initial staffing costs to be incurred before programs are established with ongoing contract funding streams.

The total costs for establishing the center, including both the initial pre-program staff expense and other costs associated with preparing for program start up, are estimated at $89,718. The Exhibit A

San Luis Obispo College of Law has offered to provide physical space, wifi and office supplies, bringing the total needed down to $56,878.

The Center for Dispute Resolution is seeking the support of the City of San Luis Obispo as the critical first partner to help offset these one-time costs. A contribution of $30,000 from the city would allow for the following initial costs to be covered:
● Purchase of Staff Computer: $2,500
● Community Outreach (Digital and Print): $2,000
● Initial Insurance: $2,100
● Staffing, Specialized Training and [a portion of] Initial Salary: $23,400 Our hope is that other key partners, such as Cal Poly and Cuesta College, will join with the city to help cover the remaining $26,878 needed, as outlined in the original request for grant funding. Those additional costs include:
● IT, Website and Telephone: $20,450
● Remaining Portion of Initial Staff Salary: $6,428
In addition to seeking funding from key community partners to offset the one-time start-up costs outlined above, the CDRSLO Advisory Board has been working to establish a network of philanthropic supporters from the community to develop a sustainable funding mix that will lead to a successful, sustainable community mediation center that can serve our community for decades to come. As you know, developing relationships with private donors requires stewardship over time, and the dividends of these efforts will take time to come to fruition.

Onboarding a staff member to serve as the hub of the wheel from an administrative perspective is sure to accelerate these efforts.

We want to deeply thank the city for considering this request to play a critical role in supporting the re-establishment of this essential community resource. Our volunteer advisory board is committed to seeing this project through, as we know firsthand how vital conflict resolution services have been to our community. Thank you for your consideration and support.

Sincerely,
CDRSLO Advisory Board Members
Lisa Sperow
President/CEO
Monterey College of Law
[email protected]
(831) 717-7290

Erica Flores Baltodano
Campus Dean
San Luis Obispo College of Law
[email protected]
(805) 322-3412
Dena Dowsett
Assistant Dean of Market Development
Monterey College of Law
[email protected]
(831) 233-9861
Nicolina Galante
Community Mediator/Former Division Manager at Creative Mediation [email protected]
Samantha Watkins
Former Director, Creative Mediation
Mediator/Owner
Solve Consulting and Mediation, LLC
[email protected]
(805) 440-3154
Steffanie Medina
Former Director, Creative Mediation
Mediator/Owner, Flow LLC
[email protected]
(805) 202-8539

Jason Mockford
Senior Director, Leadership & Service
California Polytechnic State University
[email protected]
(805) 756-5457
Kelly Donohue
Former Community Mediator
[email protected]
(310) 666-8013
Attachments: Start-Up Budget Estimates

Center for Dispute Resolution at the San Luis Obispo College of Law Start-Up Budget Estimates
Expense Budget
IT, Website and Telephone
● Initial expense to establish dedicated phone line
● Purchase of case management software
● Initial expense to develop cloud-based file sharing
● Initial expense to establish video conferencing subscription ● Development of Interactive website
20,450
Tech Equipment
● Staff computer
2,500
Community Outreach
● Materials and Print Services
● Social Media
2,000
Insurance
● Initial installment to establish Professional Liability and Workplace coverage
2,100
Staffing
● Hiring Costs
● Salary for director (anticipated 0.7 FTE)
● Specialized training in community mediation
29,828
SLO College of Law In-Kind Investment
● Designated Office Space
● Conference Room
● Caucus Rooms
● Training Rooms
● Wifi
● Photocopier and Scanner
● Office Furniture and Supplies
● Administrative Support and Overhead
32,840
Anticipated Start Up Expenses $89,718.00
SLO College of Law In-Kind Investment ($32,840.00)
Funds Needed $56,878.00
Requested Grant Monies from City of SLO $30,000.00
Additional Funds to be Raised through Private Donor Fundraising and Contributions from other Key Community Partners (Cal Poly, Cuesta, etc.) $26,878.00

Exhibit B
Reporting Guidelines
GRANTEES receiving funds through the CITY OF SAN LUIS OBISPO are required to submit a final program report to the CITY OF SAN LUIS OBISPO, to their program administrator.

Each report must include the following four sections:

1. Administrator’s Report
A summary of services, programs, or activities provided (as described in Exhibit A). This section should include:
• Any updates or changes to operations or service delivery. • Barriers or challenges faced and how they were addressed. • Any partnerships, collaborations, or community engagement efforts that enhanced inclusion or belonging.
• Success stories, testimonials, or examples that illustrate community impact.

2. Financial Report
Provide a clear accounting of how the City’s grant funds were used or are planned to be used. Report must include:
• A breakdown of expenditures by category (e.g., staffing, outreach, materials, events). • Identification and explanation of any unused funds.
• Note: City grant funds may not be used for:
o Advancing, campaigning, advocating, promotion, or highlighting political entities, ballot measures, initiatives, or candidates.
o Advancing, advocating, promoting, or highlighting any religious causes, entities, individuals, or activities. Additionally, grant funds may not be used for the purpose of disseminating religious information in any form. o Activities that result in profit or personal financial gain. o Payment for City fees or permits
o Personal expenses not directly related to the approved project o Payment in the form of stipends, honoraria, or similar direct payments to individuals.

3. Reflection & Impact
Please take a moment to reflect on your work and share insights:
• What outcomes or successes are you most proud of?
• What lessons or insights have you gained during this grant period? • What additional support or resources could help strengthen your impact?

Exhibit C

CITY OF SAN LUIS OBISPO GRANT

SUMMARY OF ACTIVITIES
GRANTEE ORGANIZATION: Center for Dispute Resolution at the San Luis Obispo College of Law
ACTIVITY(IES): Establishment of a new community mediation center Grant funding has been allocated specifically for the purpose(s) stated below:
• Purchase of Staff Computer: $250
• Community Outreach (Digital and Print): $500
• IT & Communications (a portion of case management software subscription, set-up, and training costs and website design and CMS integration costs): $ 9,250 Any requests for modifications to the use of funds specified above must be approved in advance by the CITY in writing.

Exhibit D – Insurance Requirements
Without limiting GRANTEE’s indemnification of City, and prior to commencement of work, GRANTEE shall obtain, provide, and maintain at its own expense during the term of this Agreement, policies of insurance of the types and amounts described below and in a form that is satisfactory to City.

General liability insurance. GRANTEE 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.

Excess insurance. Should GRANTEE obtain and maintain an excess liability policy, such policy shall be excess over commercial general liability, automobile liability, and/or employer’s liability policies. Such policy or policies shall include wording that the excess liability policy follows the terms and conditions of the underlying policies.

Workers’ compensation insurance. If applicable, GRANTEE shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). GRANTEE 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.

Additional insured status. General liability, automobile liability, and umbrella/excess liability insurance policies shall provide or be endorsed to provide that City and its officers, officials, employees, agents, and volunteers shall be additional insureds under such policies.

Undisclosed coverage limitations are prohibited. None of the coverages required herein shall comply 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.

Notice of cancellation. GRANTEE agrees to oblige its insurance agent or broker and insurers to
provide the 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.

If any of the GRANTEE’s insurers are unwilling to provide such notice, then GRANTEE shall have the responsibility of notifying the City immediately in the event of GRANTEE’s failure to renew any
of the required insurance coverages or insurer’s cancellation or non-renewal.

Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that GRANTEE’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 not contain any cross-liability exclusions.

Pass through clause. GRANTEE agrees to ensure that its subconsultants, sub-grantees, and any other party who is brought onto or involved in the project/service by GRANTEE (hereinafter

collectively “sub-grantee”), provide the same minimum insurance coverage and endorsements required of GRANTEE. GRANTEE 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. However, in the event GRANTEE’s sub-grantee cannot comply with this requirement, which proof must be submitted to the City, GRANTEE shall be required to ensure that its sub-grantee provide and maintain insurance coverage and endorsements sufficient to the specific risk of exposure involved with sub-grantee’s scope of work and services, with limits less than required of the GRANTEE, but in all other terms consistent with the GRANTEE’s requirements under this agreement. This provision does not relieve the GRANTEE of its contractual obligations under the agreement and/or limit its liability to the amount of insurance coverage provided by its sub-grantees. This provision is intended solely to provide GRANTEE with the ability to utilize a sub-grantee who may be otherwise qualified to perform the work or services but may not carry the same insurance limits as required of the GRANTEE under this agreement given the limited scope of work or services provided by the sub-grantee. GRANTEE agrees that upon request, all agreements with sub-grantee, 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 GRANTEE ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the GRANTEE, the City and GRANTEE may renegotiate GRANTEE’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, or require proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention through confirmation from the underwriter.

Timely notice of claims. GRANTEE shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from GRANTEE’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.

Additional insurance. GRANTEE 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. GRANTEE shall furnish the City with a certificate of insurance showing maintenance of the required insurance coverage, as well as endorsements affecting general liability coverage. All endorsements are to be received and approved by the City before work commences.

Item 6f
Department: Human Resources
Cost Center: 2007
For Agenda of: 5/5/2026
Placement: Consent
Estimated Time: N/A
FROM: Mayor Erica A. Stewart
Prepared By: Nickole Domini, Human Resources Director
SUBJECT: APPOINTED OFFICIALS’ COMPENSATION

RECOMMENDATION

1. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, amending a Contract of Employment for City Manager,” approving an amendment to the City Manager’s employment contract; and

2. Authorize the Mayor to execute the amended contract of employment with the City Manager, adjusting the City Manager’s 401(a) contribution.

3. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, amending a Contract of Employment for City Attorney,” approving an amendment to the City Attorney’s employment contract; and

4. Authorize the Mayor to execute the amended contract of employment with the City Attorney, adjusting the City Attorney’s salary and expanding flexibility in the use of sick leave to care for a family member.

5. Adopt a Regular and Contract Employee Salary Schedule effective April 9, 2026, as required by California Public Employees Retirement System (CalPERS)

POLICY CONTEXT
The appointed officials’ evaluations were conducted in accordance with the Appointed Officials Evaluations Guide. The recommendations in this report are consistent with the Council adopted Compensation Philosophy.

DISCUSSION
Background
In 1999, Council implemented a structured annual evaluation process to formally review the performance of its two appointed officials, the City Manager and City Attorney. The process is facilitated by a consultant who collects Council input on appointed officials’ performance and their progress achieving Council adopted goals, typically in March or April of each year. This process also includes review and consideration of changes to the appointed officials’ compensation and benefits.

The Council met in closed session with a consultant on March 19, 2026, to review the performance of the City Manager and City Attorney. The Council concluded that both had

Item 6f
performed admirably and accomplished the 2025-26 goals provided by Council. In prior years, compensation discussions were included as part of the initial closed session following completion of their evaluations. However, due to recent changes in the law, specifically updates to Government Code section 54956(b), public employers are prohibited from discussing appointed officials’ compensation in closed session at a special meeting. Since the March 19, 2026, closed session to discuss performance was noticed as part of a special meeting, the closed session to discuss City Manager and City Attorney compensation was scheduled separately for April 21, 2026, as part of a regular City Council meeting to ensure compliance with law.

Relevant Market Compensation Review
A review of market compensation data collected in January 2026 for the City Attorney and the City Manager classifications found that both roles are currently compensated below the median of comparator agencies1 when looking at total compensation. The results showed that the City Attorney is approximately 4.5% below the median, and the City Manager is approximately 5.5% below the median.

Timing of Compensation Adjustments
Unlike all other City positions, the City Manager and City Attorney do not have a salary range or band, and the only scheduled opportunity to review their compensation packages occurs during their annual evaluations. In addition to any adjustments made at that time, they are also eligible to receive the same cost-of-living adjustments that the Council approves for management employees as part of the Management Compensation Resolution.

As part of this year’s review, the Council carefully considered several factors in determining compensation adjustments for the appointed officials including performance, the level of leadership and expertise required to address the complex issues facing the City, comparative market data, the fact that neither appointed official requested, and thus did not receive any compensation changes in 2025 as part of their evaluation process, and the overall fiscal sustainability of the City. After considering all these elements, the Council recommends the following adjustments to the salary and benefits for the City Manager and the City Attorney.

City Manager Compensation Changes
The Council recommends a three (3%) percent increase to the City’s contribution toward the 401(a) supplemental retirement plan for the City Manager. This adjustment brings the total City contribution from three (3%) percent to six (6%) percent of the City Manager’s salary.

This change will go into effect as soon as administratively feasible, which is estimated to be in July 2026.

City Attorney Compensation Changes

1 The comparator agencies referenced are the same agencies included in the Benchmark Compensation Study presented to the Council in February 2022.

Item 6f
The Council recommends a two (2%) percent salary increase for the City Attorney effective the first full pay period of April 2026.

In addition, the Council will allow the City Attorney to use her sick leave balance for her own care or the care of her family members, without being subject to the family care usage limit, which is currently 48 hours per year (or 56 hours if the family member is hospitalized).

Revised Salary Schedule
In compliance with Public Employees’ Retirement Law and the Public Employees’ Pension Reform Act of 2013 (PEPRA), CalPERS requires the City to provide publicly available pay schedules. It also defines eight (8) requirements for such schedules, including that the schedule be duly approved and adopted by the employer’s governing body in accordance with requirement of applicable public meetings laws, it is posted on the employer's website, and it is retained by the employer and available for public inspection for not less than five (5) years. Publicly available pay schedules are a critical component to verify all members’ pay rates when calculating members’ retirement benefits. Maintaining a compliant pay schedule will support transparency and expedite CalPERS’ review process. The attached salary schedule (Attachment E) meets these requirements for the proposed salary adjustments for the City Attorney.

Public Engagement
Compensation for appointed officials at comparison agencies was considered by Council.

No other public engagement was conducted as appointed officials are appointed and serve at the will of the Council.

CONCURRENCE
No other departments were asked to review this report as the appointed officials’ evaluations and compensation fall under the authority of the Council.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.

FISCAL IMPACT
Budgeted: No Budget Year: 2026-27
Funding Identified: Yes

Item 6f
Fiscal Analysis:

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $0 $17,048 $ $17,048
State
Federal
Fees
Other:

Total $0 $17,048 $ $17,048
Providing increases to the City Attorney beginning with the first full pay period in April 2026 will result in approximately $1,399.91 in additional funding needed through the end of the current fiscal year, and approximately $7,498 annually ongoing. The department has sufficient salary savings to absorb the increase for the remainder of the 2025–26 fiscal year, and the ongoing funding will be incorporated into the supplemental budget for FY 2026–27 that will be presented to the Council on June 2, 2026.

The increase for City Manager is estimated to cost $9,550 in FY 2026–27 and on an ongoing basis. This ongoing cost will also be incorporated into the supplemental budget for FY 2026–27.

ALTERNATIVES
Renegotiate adjustments to the City Manager and City Attorney compensation based on new or different information. This alternative is not recommended because this process represents a good faith negotiation between the appointed officials and the Council.

ATTACHMENTS
A. Draft Resolution amending the City Manager’s Employment Contract B. Exhibit A to the Draft Resolution amending the City Manager’s Employment Contract C. Draft Resolution amending the City Attorney’s Employment Contract and Salary Schedule
D. Exhibit A to the Draft Resolution amending the City Attorney’s Employment Contract and Salary Schedule
E. Exhibit B to the Draft Resolution amending the City Attorney’s Employment Contract and Salary Schedule

R ______
RESOLUTION NO. _____ (2026 SERIES)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS

OBISPO, CALIFORNIA, AMENDING A CONTRACT OF EMPLOYMENT

FOR CITY MANAGER
WHEREAS, on August 20, 2024, the City Council approved a contract of employment appointing Whitney McDonald to the position of City Manager; and WHEREAS, the City Council conducted a performance evaluation of this appointed official on March 19, 2026 in closed session, in accordance with the Appointed Officials’ Performance Process as modified in December of 2011; and WHEREAS, the City Council met in closed session on April 21, 2026 to discuss compensation changes for the City Manager which resulted in an increase to the City contribution toward the 401 (a) supplemental retirement plan.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:

SECTION 1. The City Council hereby approves the amended contract of employment attached hereto as Exhibit A.

SECTION 2. The City Council shall evaluate the performance of the City Manager annually.

Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote:

AYES:

NOES:

ABSENT:

The foregoing resolution was adopted this _____ day of ____________ 2026. ___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk

Resolution No. _____ (2026 SERIES) Page 2
R ______
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington
City Clerk

Exhibit A

AMENDED CONTRACT OF EMPLOYMENT WITH

WHITNEY MCDONALD CITY MANAGER
THIS CONTRACT, originally entered into as of the 20th day of August 2024, is now amended this 5th day of May 2026 by and between the CITY OF SAN LUIS OBISPO, State of California, a municipal corporation and charter city (hereinafter referred to as "CITY"), and WHITNEY MCDONALD, a contract employee (hereinafter referred to as “CITY MANAGER”);
WITNESSETH:

WHEREAS, Charter Section 703 provides that the SAN LUIS OBISPO CITY COUNCIL (hereinafter referred to as “COUNCIL”) is responsible for the appointment and removal of the CITY MANAGER, and
WHEREAS, the COUNCIL, on behalf of the CITY acknowledges and accepts the responsibility for supervision of the CITY MANAGER; and WHEREAS, the COUNCIL wishes to appoint a CITY MANAGER and to set the terms and conditions of said employment; and
WHEREAS, WHITNEY MCDONALD desires to continue in her position of CITY MANAGER consistent with certain terms and conditions of said employment, as set forth in this CONTRACT.

NOW, THEREFORE, the parties do mutually agree as follows:

Section 1. Effective Date.

A. The appointment of WHITNEY MCDONALD is effective August 20, 2024.

B. Nothing in this Contract shall prevent, limit or otherwise interfere with the right of the COUNCIL to terminate the services of CITY MANAGER at any time, subject only to San Luis Obispo CITY Charter Section 709 and the provisions set forth in Section 12 of this Contract.

C. Nothing in this Contract shall prevent, limit or otherwise interfere with the right of CITY MANAGER to resign at any time from her position with the CITY, subject only to the provision set forth in Section 13 of this Contract.

Section 2. Duties and Salary.

A. CITY agrees to employ WHITNEY MCDONALD as full-time City Manager of the City to perform the functions and duties specified in the Charter and Municipal Code and to perform such other legally permissible and proper duties and functions as the COUNCIL may from time-to-time assign.

B. It is recognized CITY MANAGER is an exempt employee, but is expected to engage in those hours of work that are necessary to fulfill the obligations of the City Manager’s position. The parties acknowledge CITY MANAGER, in her first year of employment and until further consideration thereafter between CITY MANAGER and the Council, will not regularly participate in a formal 9-80 work schedule as is provided to department heads and certain other City employees as part of the City’s Trip Reduction Incentive Program.

However, CITY MANAGER is authorized, with appropriate
notification to Council, to from time to time modify her regular work schedule in order to take time off with pay, subject to otherwise applicable leave policies and within available leave balances, while ensuring appropriate coverage of her duties as City Manager. Leave pursuant to this provision shall not be used in lieu of vacation or administrative leave, which leave balances shall be utilized where the hours spent performing duties of the City Manager are less than forty (40) hours in a given work week.

C. COUNCIL agrees to pay CITY MANAGER for her services rendered pursuant hereto, an annual base salary of $309,062, payable in installments at the same time as the other management employees of the CITY are paid. In addition, COUNCIL agrees to increase said base salary by the cost-of-living adjustment approved by the COUNCIL for all CITY management employees under any successor Management Compensation Resolutions.

Section 3. Benefits.

A. In addition to the salary set forth in Section 2 of this CONTRACT, and except as otherwise specifically set forth herein, CITY MANAGER shall be entitled to the same benefits as those offered by the CITY to the CITY MANAGER, in accordance with the
Management Compensation Resolution, Resolution 11580 (2025 Series) and any successors.

B. CITY MANAGER hereby agrees that her monthly car allowance will be $300 per month.

C. CITY will contribute 3.0% of salary to CITY MANAGER’s 401 (a) supplemental retirement plan. As soon as administratively feasible, which is anticipated to be in July 2026, the CITY contribution will increase from 3.0% to 6.0% of salary to CITY MANAGER’s 401 (a) supplemental retirement plan.

Section 4. Performance Evaluation.

A. By April 30, 2027, COUNCIL and CITY MANAGER shall establish mutually agreeable written goals, performance objectives, and priorities for the performance period ending March 30, 2028. An annual formal Council evaluation will be conducted in March of 2027 in accordance with the City's Appointed Official Evaluation Process.

Consistent with the schedule outlined above, based on the Appointed Officials Evaluation Process, and subject to performance as assessed by the COUNCIL, the CITY MANAGER compensation shall be reviewed by COUNCIL in April 2027 consistent with the Management Pay-for-Performance System in place at that time.

B. Each calendar year thereafter, COUNCIL shall review and evaluate the performance and compensation of CITY MANAGER in
accordance with the adopted Appointed Officials Evaluation Process, best management practices, and informed by comparison agency data.

Section 5. Outside Activities, Conduct and Behavior.

A. CITY MANAGER shall not engage in teaching, consulting or other non-CITY connected business without the prior approval of COUNCIL.

B. CITY MANAGER shall comply with all local and state requirements regarding conflicts-of-interest.

Section 6. Dues and Subscriptions.

COUNCIL agrees to budget for and to pay for professional dues and subscriptions of CITY MANAGER necessary for her continuation and full participation in national, regional, state, and local associations, including, for example, the Rotary Club, and organizations necessary and desirable for her continued professional participation, growth, and advancement, and for the good of the CITY.

Section 7. Professional Development.

A. COUNCIL hereby agrees to budget for and to pay for travel and subsistence expenses of CITY MANAGER for professional and

official travel, meetings, and occasions adequate to continue the professional development of CITY MANAGER and to adequately pursue necessary official functions for the CITY, including but not limited to the League of California Cities meetings and conferences, International City/County Managers’ Association and such other national, regional, state, and local governmental organizations, groups and/or committees.

B. COUNCIL also agrees to budget for and to pay for travel and subsistence expenses of CITY MANAGER for short courses, institutes, and seminars that are necessary for her professional development and for the good of the CITY.

C. Other professional development may be agreed upon from time to time between the COUNCIL and CITY MANAGER.

Section 8. General Expenses.

COUNCIL recognizes that certain expenses of a non-personal and jobaffiliated nature are incurred by the CITY MANAGER, and hereby agrees to authorize the Finance Director to reimburse or to pay said general and reasonable expenses, consistent with CITY policies, upon receipt of duly executed expense or petty cash vouchers, receipts, statements or personal affidavits. In the event that there is a question as to the whether an anticipated expense is within the scope of City policy, the City Manager shall consult with and obtain the confirmation of policy consistency from the Finance Director and, if necessary, the City Attorney, prior to incurring any such expense. In the event that the CITY MANAGER incurs any expense without such prior confirmation, the CITY MANAGER agrees that any expenses later determined by the Finance Director and/or City Attorney to be inconsistent with City policy will be reimbursed by the CITY MANAGER to the City within 30 days of receipt of notice of such disallowed expense.

Section 9. Indemnification.

In addition to that required under state and local law, CITY shall defend, save harmless, and indemnify CITY MANAGER against any claims, demands, causes of actions, losses, damages, expenses (including but not limited to attorney’s fees as may be authorized against public entities or officers consistent with state law) or liability of any kind whether stated in or arising from tort, professional liability or any other legal action or equitable theory, whether groundless or otherwise, arising out of an alleged act or omission occurring in the performance of WHITNEY MCDONALD’S duties as CITY MANAGER to the fullest extent permitted by law. CITY may compromise and settle any such claim or suit, and shall pay the amount of any settlement or judgment rendered thereon. This Section shall survive termination of this Agreement.

Section 10. Other Terms and Conditions of Employment.

The COUNCIL, in consultation with CITY MANAGER, shall fix any such other terms and conditions of employment, as it may determine from time to time, relating to the performance of CITY MANAGER, provided such terms and conditions are not inconsistent with or in conflict with the provisions of this CONTRACT, the CITY Charter or any other law.

Section 11. No Reduction of Pay and/or Benefits.

COUNCIL shall not at any time during the term of this CONTRACT, reduce the salary, compensation or other financial benefits of CITY MANAGER, except to the degree of such a reduction across-the-board for all employees of the CITY or CITY MANAGER provides written consent to the reduction.

Section 12. Termination and Severance Pay.

A. In the event CITY MANAGER’S employment is terminated by the COUNCIL without cause, or she resigns at the request of a majority of the COUNCIL during such time that she is otherwise willing and able to perform the duties of CITY MANAGER, and if CITY MANAGER signs, delivers to the City Council, and does not revoke, the General Release Agreement in the form attached hereto as Exhibit A, the COUNCIL agrees to pay her a lump sum cash payment equal to six (6) months compensation. Compensation shall include base salary, car allowance, and City contribution to deferred compensation, and City contribution to health insurance at time of separation. In addition to the above, CITY MANAGER shall be eligible for California Joint Powers Authority Chief Executive Separation Payment consistent with the terms of the City’s Memorandum of Coverage.

B. In the event that CITY MANAGER is terminated for “good cause” the COUNCIL shall have no obligation to pay the lump sum severance payment mentioned above. For the purpose of this CONTRACT, “good cause” shall mean any of the following:
(1) Malfeasance, dishonesty for personal gain, willful violation of law, corrupt misconduct, or conviction of any felony. (2) Conviction of a misdemeanor arising directly out of CITY MANAGER’s duties pursuant to this Agreement.
(3) Willful abandonment of duties outlined in this Agreement. “Good cause” shall not mean a mere loss of support or confidence by a majority of the COUNCIL.

C. Any termination of employment shall be done consistent with limitations established in the City Charter Section 709, which shall be interpreted to exclude termination for “good cause” as set forth above. Additionally, the CITY shall provide a minimum of 30 days prior written notice to CITY MANAGER of the intent to terminate this Agreement.

D. In the event the CITY and the CITY MANAGER agree to a separation from employment, for any reason or no reason, the CITY and the CITY MANAGER agree that no member of the COUNCIL, the City Management staff, nor the CITY MANAGER, shall make any written, oral or electronic statement to any member of the public, the press, or any city employee concerning the CITY MANAGER’S termination except in the form of a joint press release or statement, the content of which is mutually agreeable to the City and the CITY MANAGER.

The joint press release or statement shall not contain any text or information that is disparaging to either party. Either party may verbally repeat the substance of the joint press release or statement in response to an inquiry. Nothing herein shall be construed to prevent the City from referring to or responding to inquiries about third party or outside agency investigations or actions pertaining to the official performance of the CITY MANAGER.

Section 13. Resignation.

In the event CITY MANAGER voluntarily resigns her position with the CITY, she shall give the COUNCIL at least 45 days advance written notice.

Section 14. General Provisions.

A. The text herein shall constitute the entire CONTRACT between the parties.

B. This CONTRACT shall be binding upon and inure to the benefit of the heirs at law and executors of the parties.

C. It is the intent of the COUNCIL that this CONTRACT and the appointment of WHITNEY MCDONALD as CITY MANAGER are in
accordance with the requirements and provisions of the Charter.

Wherever legally enforceable, the provisions of this CONTRACT shall be construed in a manner consistent with the Charter. If any provision of this CONTRACT conflicts with the Charter, the Charter shall control to the fullest extent legally enforceable.

D. If any provision, or any portion thereof, contained in this CONTRACT is held unconstitutional, invalid or unenforceable, the remainder of

this CONTRACT, or portion thereof, shall be deemed severable, shall not be affected, and shall remain in full force and effect.

IN WITNESS WHEREOF, CITY and EMPLOYEE have executed this Contract on the day and year first set forth above.
_____________________________ _______________

WHITNEY MCDONALD DATE
_____________________________ ________________
ERICA A. STEWART, MAYOR DATE
ATTEST:
____________________________ ________________

TERESA PURRINGTON DATE

CITY CLERK
APPROVED AS TO FORM:
__________________________________
J. CHRISTINE DIETRICK

CITY ATTORNEY

R ______
RESOLUTION NO. _____ (2026 SERIES)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS

OBISPO, CALIFORNIA, AMENDING A CONTRACT OF EMPLOYMENT

FOR CITY ATTORNEY
WHEREAS, on January 2, 2010, the City Council approved a contract of employment appointing Christine Dietrick to the position of City Attorney; and WHEREAS, the City Council conducted a performance evaluation of this appointed official on March 19, 2026 in closed session, in accordance with the Appointed Officials’ Performance Process as modified in December of 2011; and WHEREAS, the City Council met in closed session on April 21, 2026 to discuss compensation changes for the City Attorney which resulted in a salary increase and expanding flexibility in the use of sick leave to care for a family member; and WHEREAS, the City must maintain compliance with Public Employees’ Retirement Law and the Public Employees’ Pension Reform Act of 2013 which requires publicly available salary schedules that are duly approved by the employer’s governing body.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:

SECTION 1. The City Council hereby approves the amended contract of employment attached hereto as Exhibit A.

SECTION 2. The City Council shall evaluate the performance of the City Attorney annually.

SECTION 3. The City agrees to amend the City Attorney specification salary grade, as shown in Exhibit B attached hereto, effective April 9, 2026.

Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote:

AYES:

NOES:

ABSENT:

The foregoing resolution was adopted this _____ day of ___________ 2026 ___________________________
Mayor Erica A. Stewart
ATTEST:

Resolution No. _____ (2026 SERIES) Page 2
R ______
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
Markie Kersten
Assistant City Attorney II
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington
City Clerk

Exhibit A

AMENDED CONTRACT OF EMPLOYMENT WITH
J. CHRISTINE DIETRICK CITY ATTORNEY
THIS CONTRACT, originally entered into as of the 1st day of January 2010, is now amended this 5
th day of May 2026 by and between the CITY OF SAN LUIS OBISPO, State of California, a municipal corporation and charter city (hereinafter referred to as "CITY"), and J. CHRISTINE DIETRICK, a contract employee (hereinafter referred to as "CHRISTINE DIETRICK");
WITNESSETH:

WHEREAS, Charter Section 701 provides that the SAN LUIS OBISPO CITY COUNCIL (hereinafter referred to as "COUNCIL") is responsible for the appointment and removal of the CITY ATTORNEY, and
WHEREAS, the COUNCIL, on behalf of the CITY acknowledges and accepts the responsibility for supervision of the CITY ATTORNEY; and WHEREAS, the COUNCIL is desirous of appointing a CITY ATTORNEY and wishes to set the terms and conditions of said employment; and WHEREAS, CHRISTINE DIETRICK desires to continue in her position of CITY ATTORNEY consistent with certain terms and conditions of said employment, as set forth in this CONTRACT.

NOW, THEREFORE, the parties do mutually agree as follows:

Section 1. Effective Date.

A. The appointment of CHRISTINE DIETRICK is effective January 1, 2010.

B. Nothing in this Contract shall prevent, limit, or otherwise interfere with the right of the COUNCIL to terminate the services of CHRISTINE DIETRICK at any time, subject only to San Luis Obispo CITY Charter Section 709 and the provisions set forth in Section 12 of this Contract.

C. Nothing in this Contract shall prevent, limit or otherwise interfere with the right of CHRISTINE DIETRICK to resign at any time from her position with the CITY, subject only to the provision set forth in Section 13 of this Contract.

Section 2. Duties and Salary.

A. CITY agrees to employ CHRISTINE DIETRICK as full-time CITY ATTORNEY of the City to perform the functions and duties specified in the Charter and Municipal Code and to perform such other legally permissible and proper duties and functions as the COUNCIL may from time to time assign.

B. COUNCIL agrees to pay CHRISTINE DIETRICK, for her services rendered pursuant hereto, an annual base salary of $312,104 effective the first full pay period in April 2026, payable in installments at the same time as the other management employees of the CITY are paid. In addition, COUNCIL agrees to increase said base salary by the cost-of-living adjustment approved by the COUNCIL for all CITY management employees under any successor Management Compensation Resolutions.

Section 3. Benefits.

A. In addition to the salary set forth in Section 2 of this CONTRACT, CHRISTINE DIETRICK shall be entitled to a car allowance of $250 per month, a City contribution of 5.0% of salary to a 401(a) supplemental retirement plan, the ability to cash out up to three weeks' vacation once during the calendar year, upon CHRISTINE DIETRICK'S request, and the same benefits as those offered by the CITY to the CITY ATTORNEY, in accordance with the Management Compensation Resolution, Resolution No. 11580 (2025 Series) and any successors.

B. CHRISTINE DIETRICK shall be entitled to use her sick leave balance for her own care or the care of a family member, as defined in Labor Code section 245.5(c), without being subject to the family care usage limit, which is currently 48 hours per year (or 56 hours if the family member is hospitalized).

Section 4. Performance Evaluation.

A. By April 30, 2010, COUNCIL and CHRISTINE DIETRICK shall establish mutually agreeable written goals, performance objectives, and priorities for the performance period ending March 30, 2011. Further, Council shall conduct an "interim" evaluation by October 29, 2010. An annual formal Council evaluation will be conducted in March of 2011 in accordance with the City's Appointed Official Evaluation Process. Consistent with the schedule outlined above, based on the Appointed Officials Evaluation Process, and subject to performance as assessed by the COUNCIL, the CITY ATTORNEY compensation shall be reviewed by COUNCIL in April 2011 consistent with the Management Pay-for-Performance System in place at that time.

B. Each calendar year thereafter, COUNCIL shall review and evaluate the performance and compensation of CHRISTINE DIETRICK in accordance with the adopted Appointed Officials Evaluation Process, best management practices, and informed by comparison agency data.

Section 5. Outside Activities, Conduct and Behavior.

A. CHRISTINE DIETRICK shall not engage in teaching, consulting or other non-CITY connected business without the prior approval of COUNCIL.

B. CHRISTINE DIETRICK shall comply with all local and state requirements regarding conflicts-of-interest.

Section 6. Dues and Subscriptions.

COUNCIL agrees to budget for and to pay for professional dues and subscriptions of CHRISTINE DIETRICK necessary for her continuation and full participation in national, regional, state, and local associations, and organizations necessary and desirable for her continued professional participation, growth, and advancement, and for the good of the CITY.

Section 7. Professional Development.

A. COUNCIL hereby agrees to budget for and to pay for travel and subsistence expenses of CHRISTINE DIETRICK for professional and official travel, meetings, and occasions adequate to continue the professional development of CHRISTINE DIETRICK and to adequately pursue necessary official functions for the CITY, including but not limited to the League of California Cities Annual Conference, League of California Cities City Attorneys Department Conference, the Straus Institute for Mediation at Pepperdine University, and such other national, regional, state, and local governmental organizations, groups and/or committees.

B. COUNCIL also agrees to budget for and to pay for travel and subsistence expenses of CHRISTINE DIETRICK for short courses, institutes, and seminars that are necessary for her professional development and for the good of the CITY.

C. Other professional development may be agreed upon from time to time between the COUNCIL and CHRISTINE DIETRICK.

Section 8. General Expenses.

COUNCIL recognizes that certain expenses of a non-personal and job- affiliated nature are incurred by the CITY ATTORNEY, and hereby agrees to authorize the Finance Director to reimburse or to pay said general and reasonable expenses, consistent with CITY policies, upon receipt of duly executed expense or petty cash vouchers, receipts, statements, or personal affidavits.

Section 9. Indemnification.

In addition to that required under state and local law, CITY shall defend, save harmless, and indemnify CHRISTINE DIETRICK against any claims, demands, causes of actions, losses, damages, expenses (including but not limited to attorney's fees as may be authorized against public entities or officers consistent with state law) or liability of any kind whether stated in or arising from tort, professional liability or any other legal action or equitable theory, whether groundless or otherwise arising out of an alleged act or omission occurring in the performance of CHRISTINE DIETRICK'S duties as CITY ATTORNEY to the fullest extent permitted by law. CITY may compromise and settle any such claim or suit and shall pay the amount of any settlement or judgment rendered thereon.

Section 10. Other Terms and Conditions of Employment.

The COUNCIL, in consultation with CHRISTINE DIETRICK, shall fix any such other terms and conditions of employment, as it may determine from time to time, relating to the performance of CHRISTINE DIETRICK, provided such terms and conditions are not inconsistent with or in conflict with the provisions of this CONTRACT, the CITY Charter or any other law.

Section 11. No Reduction of Pay and/or Benefits.

COUNCIL shall not at any time during the term of this CONTRACT, reduce the salary, compensation or other financial benefits of CHRISTINE DIETRICK, except to the degree of such a reduction across-the-board for all employees of the CITY or CHRISTINE DIETRICK provides written consent to the reduction.

Section 12. Termination and Severance Pay.

A. In the event CHRISTINE DIETRICK'S employment is terminated by the COUNCIL, or she resigns at the request of a majority of the COUNCIL during such time that she is otherwise willing and able to perform the duties of CITY ATTORNEY, the COUNCIL agrees to pay her a lump sum cash payment equal to nine (9) months compensation (salary and all appointed officials fringe benefits). Additionally, CITY shall extend to CHRISTINE DIETRICK the right to continue and purchase at her expense health insurance pursuant to the terms and condition of the Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) or any successor legal requirement. CHRISTINE DIETRICK is the CITY ATTORNEY for the purposes of the benefits under the California Joint Powers Insurance Authority of which the CITY is a member. Any associated severance benefit as a result of termination shall be in accordance with the terms and conditions of the California Joint Powers Insurance Authority's Memorandum of Liability Coverage in effect at the time of termination.

B. In the event that CHRISTINE DIETRICK is terminated for "good cause" the COUNCIL shall have no obligation to pay the lump sum severance payment mentioned above. For the purpose of this CONTRACT, "good cause" shall

mean any of the following:
(1) Malfeasance, dishonesty for personal gain, willful violation of law, corrupt misconduct, or conviction of any felony.
(2) Conviction of a misdemeanor arising directly out of CHRISTINE DIETRICK's duties pursuant to this Agreement.
(3) Willful abandonment of duties outlined in this Agreement. i. "Good cause" shall not mean a mere loss of support or confidence by a majority of the COUNCIL.

C. Any termination of employment shall be done consistent with limitations established in the City Charter Section 709. Additionally, the CITY shall provide a minimum of 30 days prior written notice to CHRISTINE DIETRICK of the intent to terminate this Agreement.

Section 13. Resignation.

In the event CHRISTINE DIETRICK voluntarily resigns her position with the CITY, she shall give the COUNCIL at least two (2) months advance written notice.

Section 14. General Provisions.

A. The text herein shall constitute the entire CONTRACT between the parties.

B. This CONTRACT shall be binding upon and inure to the benefit of the heirs at law and executors of the parties.

C. It is the intent of the COUNCIL that this CONTRACT and the appointment of CHRISTINE DIETRICK as CITY ATTORNEY are in accordance with the requirements and provisions of the Charter. Wherever possible, the provisions of this CONTRACT shall be construed in a manner consistent with the Charter. If any provision of this CONTRACT conflicts with the Charter, the Charter shall control.

D. If any provision, or any portion thereof, contained in this CONTRACT is held unconstitutional, invalid or unenforceable, the remainder of this CONTRACT, or portion thereof, shall be deemed severable, shall not be affected, and shall remain in full force and effect.

IN WITNESS WHEREOF, CITY and EMPLOYEE have executed this Contract on the day and year first set forth above.

_____________________________ _______________
J. CHRISTINE DIETRICK DATE
____________________________ ________________
MAYOR ERICA A. STEWART DATE
ATTEST:
____________________________ ________________

TERESA PURRINGTON DATE

CITY CLERK
APPROVED AS TO FORM:
____________________________

MARKIE KERSTEN

ASSISTANT CITY ATTORNEY II

CITY OF SAN LUIS OBISPO REGULAR AND LIMITED TERM EMPLOYEE SALARY SCHEDULE Effective April 9, 2026 Title Job Code Grade Bargaining
Unit
Biweekly
Minimum
Biweekly
Maximum
Biweekly
Step 1
Biweekly
Step 2
Biweekly
Step 3
Biweekly
Step 4
Biweekly
Step 5
Biweekly
Step 6
Biweekly
Step 7
Biweekly
Step 8
Biweekly
Step 9
ACCOUNTANT 22300 300 MME $ 3,294 $ 4,117 $ - $ - $ - $ - $ - $ - $ - $ - $ - ACTIVE TRANSPORTATION MANAGER 22301 318 MME $ 3,925 $ 4,905 $ - $ - $ - $ - $ - $ - $ - $ - $ - ADMINISTRATION EXECUTIVE ASSISTANT 33100 257 CNF $ 2,530 $ 3,106 $ 2,530 $ 2,663 $ 2,803 $ 2,951 $ 3,106 $ - $ - $ - $ - ADMINISTRATIVE ASSISTANT I 41700 400 CEA $ 1,887 $ 2,317 $ 1,887 $ 1,986 $ 2,091 $ 2,201 $ 2,317 $ - $ - $ - $ - ADMINISTRATIVE ASSISTANT II 42700 402 CEA $ 1,988 $ 2,441 $ 1,988 $ 2,093 $ 2,203 $ 2,319 $ 2,441 $ - $ - $ - $ - ADMINISTRATIVE ASSISTANT III 43700 405 CEA $ 2,147 $ 2,636 $ 2,147 $ 2,260 $ 2,379 $ 2,504 $ 2,636 $ - $ - $ - $ - ADMINISTRATIVE ASSISTANT III CONFIDENTIAL 33702 247 CNF $ 2,281 $ 2,800 $ 2,281 $ 2,401 $ 2,527 $ 2,660 $ 2,800 $ - $ - $ - $ - ADMINISTRATIVE SPECIALIST 44700 408 CEA $ 2,322 $ 2,851 $ 2,322 $ 2,444 $ 2,573 $ 2,708 $ 2,851 $ - $ - $ - $ - AQUATICS COORDINATOR 44601 412 CEA $ 2,577 $ 3,164 $ 2,577 $ 2,713 $ 2,856 $ 3,006 $ 3,164 $ - $ - $ - $ - ASSISTANT CITY ATTORNEY I 25100 346 MME $ 5,160 $ 6,449 $ - $ - $ - $ - $ - $ - $ - $ - $ - ASSISTANT CITY ATTORNEY II 25102 360 MME $ 5,937 $ 7,422 $ - $ - $ - $ - $ - $ - $ - $ - $ - ASSISTANT CITY MANAGER COMMUNITY SERVICES 27100 225 DPH $ 8,108 $ 10,133 $ - $ - $ - $ - $ - $ - $ - $ - $ - ASSISTANT DIRECTOR OF PUBLIC WORKS 26124 366 MME $ 6,355 $ 7,943 $ - $ - $ - $ - $ - $ - $ - $ - $ - ASSISTANT DIRECTOR OF UTILITIES 26125 366 MME $ 6,355 $ 7,943 $ - $ - $ - $ - $ - $ - $ - $ - $ - ASSISTANT PLANNER 42402 417 CEA $ 2,933 $ 3,600 $ 2,933 $ 3,087 $ 3,249 $ 3,420 $ 3,600 $ - $ - $ - $ - ASSOCIATE PLANNER 43300 422 CEA $ 3,337 $ 4,098 $ 3,337 $ 3,513 $ 3,698 $ 3,893 $ 4,098 $ - $ - $ - $ - BEAUTIFICATION GARDENER 42914 411 CEA $ 2,509 $ 3,080 $ 2,509 $ 2,641 $ 2,780 $ 2,926 $ 3,080 $ - $ - $ - $ - BUILDING INSPECTOR I 41500 415 CEA $ 2,786 $ 3,420 $ 2,786 $ 2,933 $ 3,087 $ 3,249 $ 3,420 $ - $ - $ - $ - BUILDING INSPECTOR II 44500 418 CEA $ 3,010 $ 3,696 $ 3,010 $ 3,168 $ 3,335 $ 3,511 $ 3,696 $ - $ - $ - $ - BUILDING PERMIT SERVICES SUPERVISOR 24200 313 MME $ 3,741 $ 4,676 $ - $ - $ - $ - $ - $ - $ - $ - $ - BUSINESS ANALYST 22302 300 MME $ 3,294 $ 4,117 $ - $ - $ - $ - $ - $ - $ - $ - $ - CANNABIS BUSINESS COORDINATOR 44408 422 CEA $ 3,337 $ 4,098 $ 3,337 $ 3,513 $ 3,698 $ 3,893 $ 4,098 $ - $ - $ - $ -

CAPITAL IMPROVEMENT PROGRAM ADMINISTRATIVE

MANAGER
26117 323 MME $ 4,120 $ 5,150 $ - $ - $ - $ - $ - $ - $ - $ - $ - CAPITAL PROJECTS MANAGER I 41302 417 CEA $ 2,933 $ 3,600 $ 2,933 $ 3,087 $ 3,249 $ 3,420 $ 3,600 $ - $ - $ - $ - CAPITAL PROJECTS MANAGER II 42304 421 CEA $ 3,255 $ 3,996 $ 3,255 $ 3,426 $ 3,606 $ 3,796 $ 3,996 $ - $ - $ - $ - CAPITAL PROJECTS MANAGER III 43303 424 CEA $ 3,517 $ 4,318 $ 3,517 $ 3,702 $ 3,897 $ 4,102 $ 4,318 $ - $ - $ - $ - CHIEF BUILDING OFFICIAL 26300 353 MME $ 5,526 $ 6,907 $ - $ - $ - $ - $ - $ - $ - $ - $ - CITY ATTORNEY 28000 200 APO $ 12,004 $ 12,004 $ - $ - $ - $ - $ - $ - $ - $ - $ - CITY BIOLOGIST 22304 318 MME $ 3,925 $ 4,905 $ - $ - $ - $ - $ - $ - $ - $ - $ - CITY CLERK 26000 333 MME $ 4,546 $ 5,683 $ - $ - $ - $ - $ - $ - $ - $ - $ - CITY COUNCIL MEMBER 18000 104 CCM $ 1,070 $ 1,070 $ - $ - $ - $ - $ - $ - $ - $ - $ - CITY MANAGER 28001 206 APO $ 11,887 $ 11,887 $ - $ - $ - $ - $ - $ - $ - $ - $ - CODE ENFORCEMENT OFFICER I 41501 416 CEA $ 2,858 $ 3,508 $ 2,858 $ 3,008 $ 3,166 $ 3,333 $ 3,508 $ - $ - $ - $ - CODE ENFORCEMENT OFFICER II 44501 419 CEA $ 3,089 $ 3,793 $ 3,089 $ 3,252 $ 3,423 $ 3,603 $ 3,793 $ - $ - $ - $ - CODE ENFORCEMENT SUPERVISOR 25300 313 MME $ 3,741 $ 4,676 $ - $ - $ - $ - $ - $ - $ - $ - $ - CODE ENFORCEMENT TECHNICIAN I 41502 405 CEA $ 2,147 $ 2,636 $ 2,147 $ 2,260 $ 2,379 $ 2,504 $ 2,636 $ - $ - $ - $ - CODE ENFORCEMENT TECHNICIAN II 42500 407 CEA $ 2,262 $ 2,777 $ 2,262 $ 2,381 $ 2,506 $ 2,638 $ 2,777 $ - $ - $ - $ - COMMUNICATIONS COORDINATOR 42703 408 CEA $ 2,322 $ 2,851 $ 2,322 $ 2,444 $ 2,573 $ 2,708 $ 2,851 $ - $ - $ - $ - COMMUNITY RESOURCES AND SERVICES SPECIALIST 42418 410

LIMITED
TERM
$ 2,446 $ 3,003 $ 2,446 $ 2,575 $ 2,710 $ 2,853 $ 3,003 $ - $ - $ - $ - CONSTRUCTION ENGINEERING MANAGER 26202 341 MME $ 4,902 $ 6,127 $ - $ - $ - $ - $ - $ - $ - $ - $ -

CONSTRUCTION ENGINEERING MANAGER

PROFESSIONAL ENGINEER
26214 346 MME $ 5,160 $ 6,449 $ - $ - $ - $ - $ - $ - $ - $ - $ - CONTROL SYSTEMS ADMINISTRATOR 44400 426 CEA $ 3,705 $ 4,548 $ 3,705 $ 3,900 $ 4,105 $ 4,321 $ 4,548 $ - $ - $ - $ - DATA ANALYST 22311 300 MME $ 3,294 $ 4,117 $ - $ - $ - $ - $ - $ - $ - $ - $ - DEPUTY BUILDING OFFICIAL 26305 340 MME $ 4,867 $ 6,083 $ - $ - $ - $ - $ - $ - $ - $ - $ - DEPUTY CITY ATTORNEY I 21101 316 MME $ 3,854 $ 4,816 $ - $ - $ - $ - $ - $ - $ - $ - $ - DEPUTY CITY ATTORNEY II 22101 326 MME $ 4,246 $ 5,307 $ - $ - $ - $ - $ - $ - $ - $ - $ -

EXHIBIT B

CITY OF SAN LUIS OBISPO REGULAR AND LIMITED TERM EMPLOYEE SALARY SCHEDULE Effective April 9, 2026 Title Job Code Grade Bargaining
Unit
Biweekly
Minimum
Biweekly
Maximum
Biweekly
Step 1
Biweekly
Step 2
Biweekly
Step 3
Biweekly
Step 4
Biweekly
Step 5
Biweekly
Step 6
Biweekly
Step 7
Biweekly
Step 8
Biweekly
Step 9
DEPUTY CITY ATTORNEY III 23101 336 MME $ 4,683 $ 5,854 $ - $ - $ - $ - $ - $ - $ - $ - $ - DEPUTY CITY CLERK I 41701 405 CEA $ 2,147 $ 2,636 $ 2,147 $ 2,260 $ 2,379 $ 2,504 $ 2,636 $ - $ - $ - $ - DEPUTY CITY CLERK II 42701 408 CEA $ 2,322 $ 2,851 $ 2,322 $ 2,444 $ 2,573 $ 2,708 $ 2,851 $ - $ - $ - $ - DEPUTY CITY MANAGER 26112 210 DPH $ 7,047 $ 8,810 $ - $ - $ - $ - $ - $ - $ - $ - $ -

DEPUTY DIRECTOR OF COMMUNITY DEVELOPMENT CITY

PLANNER
26115 353 MME $ 5,526 $ 6,907 $ - $ - $ - $ - $ - $ - $ - $ - $ - DEPUTY DIRECTOR OF FINANCE CITY CONTROLLER 26121 353 MME $ 5,526 $ 6,907 $ - $ - $ - $ - $ - $ - $ - $ - $ - DEPUTY DIRECTOR OF PUBLIC WORKS CITY ENGINEER 26104 358 MME $ 5,802 $ 7,253 $ - $ - $ - $ - $ - $ - $ - $ - $ -

DEPUTY DIRECTOR OF PUBLIC WORKS MAINTENANCE

OPERATIONS
26103 353 MME $ 5,526 $ 6,907 $ - $ - $ - $ - $ - $ - $ - $ - $ -

DEPUTY DIRECTOR OF PUBLIC WORKS MOBILITY

SERVICES
26119 353 MME $ 5,526 $ 6,907 $ - $ - $ - $ - $ - $ - $ - $ - $ -

DEPUTY DIRECTOR OF UTILITIES ENGINEERING AND

PLANNING
26113 353 MME $ 5,526 $ 6,907 $ - $ - $ - $ - $ - $ - $ - $ - $ - DEPUTY DIRECTOR OF UTILITIES WASTEWATER 26105 353 MME $ 5,526 $ 6,907 $ - $ - $ - $ - $ - $ - $ - $ - $ - DEPUTY DIRECTOR OF UTILITIES WATER 26106 353 MME $ 5,526 $ 6,907 $ - $ - $ - $ - $ - $ - $ - $ - $ - DEPUTY FIRE CHIEF 26107 369 MME $ 6,969 $ 8,711 $ - $ - $ - $ - $ - $ - $ - $ - $ - DEPUTY POLICE CHIEF 76100 810 PSO $ 7,665 $ 9,410 $ 7,665 $ 8,068 $ 8,493 $ 8,940 $ 9,410 $ - $ - $ - $ - DIRECTOR OF COMMUNITY DEVELOPMENT 27000 210 DPH $ 7,047 $ 8,810 $ - $ - $ - $ - $ - $ - $ - $ - $ - DIRECTOR OF FINANCE 27001 210 DPH $ 7,047 $ 8,810 $ - $ - $ - $ - $ - $ - $ - $ - $ - DIRECTOR OF HUMAN RESOURCES 27002 210 DPH $ 7,047 $ 8,810 $ - $ - $ - $ - $ - $ - $ - $ - $ - DIRECTOR OF PARKS AND RECREATION 27003 210 DPH $ 7,047 $ 8,810 $ - $ - $ - $ - $ - $ - $ - $ - $ - DIRECTOR OF PUBLIC WORKS AND UTILITIES 27008 215 DPH $ 7,880 $ 9,850 $ - $ - $ - $ - $ - $ - $ - $ - $ - DIVERSITY EQUITY AND INCLUSION MANAGER 26002 340 MME $ 4,867 $ 6,083 $ - $ - $ - $ - $ - $ - $ - $ - $ - ECONOMIC DEVELOPMENT ANALYST 22316 300 MME $ 3,294 $ 4,117 $ - $ - $ - $ - $ - $ - $ - $ - $ - ECONOMIC DEVELOPMENT AND TOURISM MANAGER 26108 340 MME $ 4,867 $ 6,083 $ - $ - $ - $ - $ - $ - $ - $ - $ - EMERGENCY MANAGER 22500 318 MME $ 3,925 $ 4,905 $ - $ - $ - $ - $ - $ - $ - $ - $ - ENGINEER I 41300 419 CEA $ 3,089 $ 3,793 $ 3,089 $ 3,252 $ 3,423 $ 3,603 $ 3,793 $ - $ - $ - $ - ENGINEER II 42300 423 CEA $ 3,429 $ 4,209 $ 3,429 $ 3,609 $ 3,799 $ 3,999 $ 4,209 $ - $ - $ - $ - ENGINEER III 43301 426 CEA $ 3,705 $ 4,548 $ 3,705 $ 3,900 $ 4,105 $ 4,321 $ 4,548 $ - $ - $ - $ - ENGINEERING INSPECTOR I 41401 414 CEA $ 2,714 $ 3,332 $ 2,714 $ 2,857 $ 3,007 $ 3,165 $ 3,332 $ - $ - $ - $ - ENGINEERING INSPECTOR II 42404 417 CEA $ 2,933 $ 3,600 $ 2,933 $ 3,087 $ 3,249 $ 3,420 $ 3,600 $ - $ - $ - $ - ENGINEERING INSPECTOR III 43401 423 CEA $ 3,429 $ 4,209 $ 3,429 $ 3,609 $ 3,799 $ 3,999 $ 4,209 $ - $ - $ - $ - ENGINEERING INSPECTOR IV 44402 426 CEA $ 3,705 $ 4,548 $ 3,705 $ 3,900 $ 4,105 $ 4,321 $ 4,548 $ - $ - $ - $ - ENGINEERING TECHNICIAN I 41402 407 CEA $ 2,262 $ 2,777 $ 2,262 $ 2,381 $ 2,506 $ 2,638 $ 2,777 $ - $ - $ - $ - ENGINEERING TECHNICIAN II 42405 409 CEA $ 2,383 $ 2,925 $ 2,383 $ 2,508 $ 2,640 $ 2,779 $ 2,925 $ - $ - $ - $ - ENGINEERING TECHNICIAN III 43402 414 CEA $ 2,714 $ 3,332 $ 2,714 $ 2,857 $ 3,007 $ 3,165 $ 3,332 $ - $ - $ - $ - ENTERPRISE SYSTEM DATABASE ADMINISTRATOR 44401 426 CEA $ 3,705 $ 4,548 $ 3,705 $ 3,900 $ 4,105 $ 4,321 $ 4,548 $ - $ - $ - $ - ENVIRONMENTAL COMPLIANCE INSPECTOR SBP 44403 484 CEA $ 2,762 $ 4,162 $ 2,762 $ 2,907 $ 3,060 $ 3,221 $ 3,390 $ 3,568 $ 3,756 $ 3,954 $ 4,162 EXECUTIVE ASSISTANT TO THE POLICE CHIEF 43100 408 CEA $ 2,322 $ 2,851 $ 2,322 $ 2,444 $ 2,573 $ 2,708 $ 2,851 $ - $ - $ - $ - FACILITIES MAINTENANCE SUPERVISOR 25201 300 MME $ 3,294 $ 4,117 $ - $ - $ - $ - $ - $ - $ - $ - $ - FACILITIES MAINTENANCE TECHNICIAN SBP 42900 473 CEA $ 2,195 $ 3,308 $ 2,195 $ 2,310 $ 2,432 $ 2,560 $ 2,695 $ 2,837 $ 2,986 $ 3,143 $ 3,308 FINANCE CASHIER 41407 400 CEA $ 1,887 $ 2,317 $ 1,887 $ 1,986 $ 2,091 $ 2,201 $ 2,317 $ - $ - $ - $ - FINANCIAL ANALYST 22310 300 MME $ 3,294 $ 4,117 $ - $ - $ - $ - $ - $ - $ - $ - $ - FINANCIAL ASSISTANT 41408 400 CEA $ 1,887 $ 2,317 $ 1,887 $ 1,986 $ 2,091 $ 2,201 $ 2,317 $ - $ - $ - $ - FINANCIAL SPECIALIST 42412 408 CEA $ 2,322 $ 2,851 $ 2,322 $ 2,444 $ 2,573 $ 2,708 $ 2,851 $ - $ - $ - $ - FIRE BATTALION CHIEF 55200 505 FFA $ 6,011 $ 7,380 $ 6,011 $ 6,327 $ 6,660 $ 7,011 $ 7,380 $ - $ - $ - $ - FIRE CAPTAIN 54500 621 FFA $ 4,519 $ 5,548 $ 4,519 $ 4,757 $ 5,007 $ 5,271 $ 5,548 $ - $ - $ - $ - FIRE CHIEF 27006 216 DPH $ 8,008 $ 10,011 $ - $ - $ - $ - $ - $ - $ - $ - $ - FIRE ENGINEER 53500 615 FFA $ 3,940 $ 4,837 $ 3,940 $ 4,147 $ 4,365 $ 4,595 $ 4,837 $ - $ - $ - $ -