San Luis Obispo City Council
September 1, 2026

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to identify any supplemental tasks necessary or recommend any alternatives that may enhance the project or reduce its costs.
e. Additional Information: Describe any other information not previously mentioned that the consultant believes should be given consideration. This could include any additional tasks not included in the Required Services section above. Identify subconsultants, if any.
f. Client References: Please provide references from at least three (3) firms for whom you have provided similar services. References must be local/municipal/county agencies only. Please include:

1. Agency Name

2. Contact Name & Title

3. Telephone & Email

4. Street Address

5. City, State, Zip Code

6. Description of services provided including contract amount, when provided and project outcome
Requested Changes to Terms and Conditions
a. The City desires to begin work soon after selecting the preferred Consultant and expects the Consultant 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’s 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.

2. Proposal Evaluation and Selection. Proposals will be evaluated by a review committee and evaluated 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. Recent team experience in successfully performing similar services. e. Creativity of the proposed approach in completing the work. f. Value
g. Writing skills.
h. References.
i. Background and experience of the specific individuals managing and assigned to this project.
j. Information about how your company mitigates the environmental impact of its services, such as greenhouse gas emissions, amount of waste generated, water and energy use, or other areas related to your products and services.

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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:
a. Issue RFP 9/2/26
b. Pre-Proposal Conference (optional) 9/8/26
c. Receive proposals 9/11/26
d. Complete proposal evaluations 9/18/26
e. Conduct finalist interviews and finalize recommendation 9/23/26 f. Execute contract by 9/30/26
g. Start work 10/1/26

4. Pre-Proposal Conference. An optional pre-proposal conference call will be held to answer any questions that prospective bidders may have regarding this RFP:

September 8, 2026
Contact Debbie Malicoat at [email protected] for conference call link

5. 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.

6. 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.

7. 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.

8. 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 RFP. b. Corresponding computer files compatible with the following programs whenever possible unless otherwise directed by the project manager:

Word Processing: MS Word
Spreadsheets: MS Excel
Desktop Publishing: InDesign

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Virtual Models: Sketch Up
Digital Maps: Geodatabase shape files in
State Plan Coordinate System as
specified by City GIS staff
c. 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.

ALTERNATIVE PROPOSALS

9. Alternative Proposals. The proposer may submit an alternative proposal (or proposals) that it believes will also meet the City's project objectives but in a different way. In this case, the proposer must provide an analysis of the advantages and disadvantages of each alternative and discuss under what circumstances the City would prefer one alternative to the other(s).

10. Attendance at Meetings and Hearings. As part of the workscope and included in the contract price is attendance by the Contractor at up to [number] public meetings to present and discuss its findings and recommendations. Contractor shall attend as many "working" meetings with staff as necessary in performing work-scope tasks.

11. Accuracy of Specifications. The specifications for this project are believed by the City to be accurate and to contain no affirmative misrepresentation or any concealment of fact. Bidders are cautioned to undertake an independent analysis of any test results in the specifications, as City does not guaranty the accuracy of its interpretation of test results contained in the specifications package. In preparing its proposal, the bidder and all subcontractors named in its proposal shall bear sole responsibility for proposal preparation errors resulting from any misstatements or omissions in the plans and specifications that could easily have been ascertained by examining either the project site or accurate test data in the City's possession. Although the effect of ambiguities or defects in the plans and specifications will be as determined by law, any patent ambiguity or defect shall give rise to a duty of bidder to inquire prior to proposal submittal. Failure to so inquire shall cause any such ambiguity or defect to be construed against the bidder. An ambiguity or defect shall be considered patent if it is of such a nature that the bidder, assuming reasonable skill, ability and diligence on its part, knew or should have known of the existence of the ambiguity or defect. Furthermore, failure of the bidder or subcontractors to notify City in writing of specification or plan defects or ambiguities prior to proposal submittal shall waive any right to assert said defects or ambiguities subsequent to submittal of the proposal.

To the extent that these specifications constitute performance specifications, the City shall not be liable for costs incurred by the successful bidder to achieve the project’s objective or standard beyond the amounts provided there for in the proposal.

In the event that, after awarding the contract, any dispute arises as a result of any actual or alleged ambiguity or defect in the plans and/or specifications, or any other matter whatsoever, Contractor shall immediately notify the City in writing, and the Contractor and all subcontractors shall continue to perform, irrespective of whether or not the ambiguity or defect is major, material, minor or trivial, and irrespective of whether or not a change order, time extension, or additional compensation has been granted by City. Failure to provide the hereinbefore described written notice within one (1) working day of contractor's becoming aware of the facts giving rise

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to the dispute shall constitute a waiver of the right to assert the causative role of the defect or ambiguity in the plans or specifications concerning the dispute.

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F: PROPOSAL SUBMITTAL FORM
The undersigned declares that she or he has carefully examined [__________] which is hereby made a part of this proposal; is thoroughly familiar with its contents; is authorized to represent the proposing firm; and agrees to perform the specified work for the following cost quoted in full:

BID ITEM:

Total Price Scope A
Annual Price Scope B
Other
TOTAL $

Delivery of equipment to the City to be within _______ calendar days after contract execution and written authorization to proceed.
q Certificate of insurance attached; insurance company’s A.M. Best rating: __________________.

Firm Name and Address
Contact Phone
Signature of Authorized Representative
Date

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G. 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

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. 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 ____________, by and between the City of San Luis Obispo, a municipal corporation and charter city (City) and ____________ (collectively referred to as the “Parties”).

WITNESSETH:

WHEREAS, on [date], City requested proposals for Consulting Services to conduct a Citywide User Fee Study and Prepare a Central Service Cost Allocation Plan and Labor Rates, (the “Project”); 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 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 June 30, 2029, or upon acceptance and completion of said Services, whichever occurs sooner.

2. INCORPORATION BY REFERENCE. City Request for Proposal for Consulting Services to conduct a Citywide Service and Fee Study and Consultant's proposal are hereby incorporated in and made a part of this Agreement, attached as Exhibit A. 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.

3. CITY’S OBLIGATIONS. For providing services as specified in this Agreement, City will pay and Consultant shall receive therefor compensation in a total sum not to exceed $_______.

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

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

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

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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. 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.

Payment shall be made within thirty (30) days of receipt of each invoice as to all nondisputed 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.

14. 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.

15. 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,

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

16. 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.

17. 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 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

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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.

18. 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.

19. 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. 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-inprogress 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.

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20. 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.

21. 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.

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

23. 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.

24. 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.

25. 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. 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, Consultant shall 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.

26. 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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27. 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.

28. 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: City of San Luis Obispo
Finance Department
990 Palm Street
San Luis Obispo, CA 93401
To Consultant: Name
Mailing Address

29. 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.

30. 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
_______________________________
By: [Name]
Its: [Title of City Manager or Department Head]
_______________________________
By: [Name]
Its: [Title]

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APPROVED AS TO FORM:
_______________________________
By: J. Christine Dietrick, City Attorney

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EXHIBIT A
[Placeholder for RFP and Consultant’s Proposal]

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EXHIBIT B – INSURANCE
Insurance Requirements – Standard Professional Services The Contractor 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 the Contractor, its agents, representatives, employees or subcontractors.

Minimum Scope of Insurance. Coverage shall be at least as broad as:

1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001).

2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto).

3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance.

Minimum Limits of Insurance. Contractor shall maintain limits no less than:

1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit of $2,000,000.

2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.

3. Employer's Liability: $1,000,000 per accident for bodily injury or disease.

Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses.

Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:

1. The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Contractor; products and completed operations of the Contractor; premises owned, occupied or used by the Contractor; or automobiles owned, leased, hired or borrowed by the Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, official, employees, agents or volunteers.

2. For any claims related to this project, the Contractor's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Contractor's insurance and shall not contribute with it.

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3. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.

4. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty
(30) days' prior written notice by certified mail, return receipt requested, has been given to the City.

Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII.

Verification of Coverage. Contractor shall furnish the City with a certificate of insurance showing maintenance of the required insurance coverage. Original endorsements effecting general liability and automobile liability coverage required by this clause must also be provided. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before work commences.

Item 6g
Department: Public Works
Cost Center: 5201
For Agenda of: 9/1/2026
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Public Works & Utilities Director
Prepared By: Alex Fuchs, Mobility Services Business Manager SUBJECT: APPROVAL OF SLO TRANSIT’S 2026 TRANSIT ASSET MANAGEMENT

PLAN AND CONTINGENCY FLEET PLAN

RECOMMENDATION

1. Adopt a draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving San Luis Obispo (SLO) Transit’s 2026 Transit Asset Management Plan and Contingency Fleet Plan, and authorizing the City Manager to approve future administrative updates to the plans” (Attachment A);

2. Authorize SLO Transit’s Accountable Executive, the City Manager, to sign the final version of the 2026 Transit Asset Management Plan (Attachment B); and

3. Authorize SLO Transit’s Accountable Executive, the City Manager, to sign the final version of the Contingency Fleet Plan (Attachment C); and

4. Authorize the City Manager to approve amendments and future administrative updates to the Plans as necessary to maintain compliance with applicable Federal Transit Administration requirements and to address changing operational conditions.

REPORT-IN-BRIEF
The City Council is being asked to consider the 2026 Transit Asset Management (TAM) Plan and Contingency Fleet Plan for SLO Transit. The TAM Plan is required by the Federal Transit Administration (FTA) for recipients of federal transit funding and establishes a framework for managing transit vehicles, facilities, equipment, and other capital assets to maintain a State of Good Repair.
1 The Contingency Fleet Plan is not required by the FTA but was developed to provide SLO Transit with additional operational flexibility as the agency transitions to a predominantly zero-emission fleet. SLO Transit has experienced varying levels of reliability and parts availability among its battery-electric buses, including extended downtime associated with a Proterra bus and operating limitations affecting a New Flyer bus. At the same time, the six new Gillig battery-electric buses placed into service in March 2026 have demonstrated relatively consistent performance.

1 State of Good Repair is defined as, “Condition in which a capital asset can operate at a full level of performance”

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The proposed Contingency Fleet Plan would allow eligible vehicles that have reached the end of their minimum useful life2to be retained as inactive reserve vehicles and placed into service only when needed for emergencies, prolonged vehicle outages, or other operational contingencies. The Plan is intended to provide an additional safeguard for service reliability while the City's transition to zero-emission technology continues.

POLICY CONTEXT
Section 405 – Fleet Management of the City’s Financial Management Manual establishes responsibilities, policies, and procedures for managing the City’s fleet. The section recognizes that the City has established a separate transit fleet and acknowledges that transit equipment, including vehicles, has a specialized roll and unique requirements that necessitate separate certification and record keeping. Management of the transit fleet is subject to applicable federal regulations and FTA oversight.

The Moving Ahead for Progress in the 21st Century Act (MAP-21), enacted in July 2012, amended federal transit law and required the FTA to establish a national TAM system. In July 2016, the FTA published a final rule establishing TAM requirements for recipients of federal financial assistance.

As a recipient of the FTA financial assistance, the City is required to maintain a TAM Plan, establish performance measures, and to report asset-related information annually through the FTA’s National Transit Database. Compliance with these requirements is necessary for the City to remain eligible for federal funding.

TAM requirements differ based on the number of vehicles an agency operates during peak regular service. SLO Transit is classified as a Tier II provider because it operates 100 or fewer vehicles during peak regular service. The required elements of a TAM Plan for Tier II providers are described below.

1. Capital Asset Inventory - An inventory of the number and type of capital assets3. This includes all capital assets owned by the provider, except non-vehicle equipment with an acquisition value under $50,000.

2. Condition Assessment - Condition assessments of inventoried assets for which the provider has direct capital responsibility. The assessments must provide enough information to monitor and predict asset performance and to inform investment prioritization.

3. Decision-Support Tool - A description of the decision-support tools the agency uses to estimate capital investment needs over time and develop its investment priorities.

4. Prioritized List of Investments - A prioritized list of capital assets to be improved or replaced to maintain or improve a State of Good Repair.

2 The FTA minimum useful life for heavy-duty buses is 12 years or 500,000 miles 3 The FTA defines Capital asset as, “a unit of rolling stock, a facility, a unit of equipment, or an element of infrastructure used for providing public transportation”

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The 2026 TAM Plan, included as Attachment B, aligns with the City’s Climate Action Plan and the State’s Innovative Clean Transit (ICT) regulation, both of which support reducing greenhouse gas emissions. Consistent with these goals, the TAM Plan continues to prioritize SLO Transit’s transition to zero-emission technologies by focusing on procurement of zero-emission vehicles and charging infrastructure.

The FTA does not require transit agencies to develop or maintain a Contingency Fleet4 Plan. However, FTA policy permits transit agencies to retain vehicles beyond their useful life and use those vehicles for non-routine or contingency purposes. Specifically, FTA Circular 5010.1F, Award Management Requirements, Subsection 3.n.4, “Contingency Fleet” on document page 154, permits agencies that have introduced or are transitioning to a zero-emission fleet to include eligible vehicles in a contingency fleet.

DISCUSSION
The 2026 TAM Plan and Contingency Fleet Plan serve complementary purposes. The TAM Plan provides the federally required framework for managing SLO Transit's capital assets and identifying future investment needs, while the Contingency Fleet Plan provides an operational safeguard to help maintain service reliability during the transition to a predominantly zero-emission fleet.

Contingency Fleet Plan
SLO Transit does not currently have a Contingency Fleet Plan. Staff is proposing the Plan at this time because the transition to zero-emission technology has introduced additional fleet management considerations, including vehicle reliability, parts availability, specialized maintenance requirements, and potentially longer repair periods. These challenges are not unique to SLO Transit and have been experienced by transit agencies transitioning to battery-electric technology nationwide.

SLO Transit has experienced varying levels of reliability among its battery-electric buses, depending on manufacturer, vehicle age, and component availability. These experiences demonstrate the value of maintaining a limited inactive reserve fleet that can be used if significant vehicle outages affect the City's ability to maintain scheduled service. To help mitigate these risks, many California transit agencies, including San Luis Obispo Regional Transit Authority, Monterey-Salinas Transit, and Santa Barbara Metropolitan Transit District, have established contingency fleets to provide operational flexibility during the transition to zero-emission technologies.

The 2025 Short-Range Transit Plan (SRTP) update recognizes the need to continue operating diesel-powered buses during the transition to a zero-emission fleet and recommends refurbishing several mid-life diesel-powered buses to extend their useful life and maintain sufficient active fleet capacity to support future service delivery. However, the SRTP does not address the establishment or use of a separate contingency fleet, as this was not considered at the time the plan was updated.

4 Contingency fleet means inactive rolling stock reserved or retained for emergencies or other unforeseen and justified activities.

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The proposed Contingency Fleet Plan would not change SLO Transit's long-term transition to zero-emission technology and would not be used to support routine daily operations. Instead, eligible vehicles that have reached their minimum useful life would be retained as inactive reserve vehicles and could be placed into service only when needed for emergencies, prolonged vehicle outages, or other operational contingencies.

Maintaining a small fleet of reserve vehicles may result in slightly higher costs being paid to the City’s transit services contractor for periodic preventative maintenance activities.

Staff will track and monitor any related costs as part of the management and oversight of the contingency fleet.

The final draft of the Contingency Fleet Plan, included as Attachment C, establishes the procedures for maintaining and activating these vehicles and includes all required FTA elements.

Battery Electric Bus Performance
The City's experience with its current battery-electric fleet provides context for the proposed contingency fleet approach. SLO Transit operates buses from multiple manufacturers, each with varying levels of reliability and aftermarket support. Table 1 summarizes the issues by bus manufacturer and the number of each bus brand in the fleet. In September 2023, Proterra filed for Chapter 11 bankruptcy, Phoenix Motorcars subsequently assumed responsibility for providing third-party support for Proterra buses.

Since then, parts for Proterra buses have remained in limited supply and often have a long lead time, resulting in extended periods of downtime. SLO Transit’s Proterra bus has been out of service since March 2026 due to a failed air compressor. The City’s transit operation and maintenance services provider, MV Transportation, is currently working to source parts and third-party assistance to complete the repair.

New Flyer, one of the other bus manufacturers, remains in business but is currently addressing a nationwide recall affecting battery systems on certain model year buses.

SLO Transit’s New Flyer bus is subject to the recall and is tentatively scheduled for battery system replacement at the end of this calendar year. Although the bus remains available for service, it cannot be charged beyond 75 percent of its battery capacity, which limits the bus’s ability to operate certain service assignments. The bus has also experienced a separate issue involving an imbalance among its individual battery packs. This condition can cause the battery management system to shut down the bus. New Flyer is working to resolve this issue so the bus can remain in service until the battery system is replaced.

By comparison, the six new Gillig electric buses put into service in March 2026 have demonstrated relatively consistent performance. The buses have experienced minor issues, including intermittent air conditioning failures and ADA ramp deployment issues, but Gillig has responded promptly to address these issues and minimize vehicle downtime. Despite the reliability challenges experienced with some vehicles, batteryelectric buses accounted for nearly half of all service miles driven between April and June 2026. This percentage is expected to continue increasing as the MV Transportation team becomes more familiar with SLO Transit’s service requirements and optimizes fleet

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assignments and charging operations.

Table 1 - Summary of Issues by Electric Bus Manufacturer Bus Manufacturer No. of Buses Issues
Proterra 1
 Lack of manufacturer support
 Limited parts supply availability
 Failed air compressor
New Flyer 1
 Open recall on battery system
 Imbalance among battery packs causing
bus to shut down
Gillig 8
5  Intermittent air conditioning issues
 ADA ramp deployment failure (2 buses)
Overall, the experience to date demonstrates that reliability varies among manufacturers, while the newest Gillig buses have generally demonstrated consistent performance. The City therefore continues to move forward with its zero-emission fleet transition while maintaining an operational safeguard to address potential extended vehicle outages.

Charging Infrastructure
As of the date of this report, SLO Transit is nearing completion of Phase Two of its charging infrastructure buildout, which will provide sufficient capacity for all 10 batteryelectric buses to charge simultaneously. Two additional battery-electric buses are ready to enter service and, once those buses are placed into service, SLO Transit will have a total of 10 battery-electric buses in its active fleet. The expanded charging capacity is expected to allow a majority of SLO Transit’s service to be provided by battery-electric buses going forward. A Contingency Fleet Plan will ensure that any future significant issues affecting the electric buses do not interfere with service delivery.

Previous Council or Advisory Body Action
City Council approved SLO Transit's initial TAM Plan on January 16, 2018. The TAM Plan was subsequently updated in 2022 but was not presented to Council, in part due to turnover in transit staff between 2021 and 2023. The FTA reviewed the 2022 update as part of the City's subsequent Triennial Review and determined that it complied with applicable federal requirements; no findings were issued related to the TAM Plan.

The 2026 TAM Plan and Contingency Fleet Plan were not presented to the Mass Transportation Committee for consideration because they address administrative and compliance requirements rather than matters within the Committee’s purview, which includes changes to routes, schedules, capital projects, fares, marketing, and additional services.

5 6 buses were delivered in 2025 and are currently in service. 2 buses were delivered in 2026 and being readied for service.

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Public Engagement
The TAM Plan and Contingency Fleet Plan address asset management, capital procurement, and operational continuity and do not propose changes to transit fares, routes, service levels, or access to service. Accordingly, no separate public engagement process was conducted for these plans. Public comment remains available through written correspondence to City Council prior to the meeting or public testimony at the Council meeting.

CONCURRENCE
The City’s transit operations and maintenance services contractor, MV Transportation, reviewed both the draft 2026 Transit Asset Management Plan and the draft Contingency Fleet Plan and concur with the recommended actions in this report. Additionally, FTA Region 9 Office reviewed the draft Contingency Fleet Plan and confirmed that they did not have any comments or suggested modifications.

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

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 $ 0 $ 0 $ 0 $ 0
Transit Fund $ 0 $ 0 $ 0 $ 0
Federal $ 0 $ 0 $ 0 $ 0
Fees $ 0 $ 0 $ 0 $ 0
Total $ 0 $ 0 $ 0 $ 0
The recommended actions in this report do not have a direct fiscal impact. However, failure to update and approve SLO Transit’s Transit Asset Management (TAM) Plan by the October 1, 2026, deadline would place the City out of compliance with FTA requirements. This could result in a finding during a future FTA Triennial Review and require corrective actions to restore compliance. Continued findings of noncompliance could affect the City's eligibility to receive future federal financial assistance.

ALTERNATIVES

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1. Council could decide not to approve the 2026 Transit Asset Management Plan.

Should Council pursue this option, SLO Transit would not be in compliance with applicable FTA requirements. This could result in a finding during a future FTA Triennial Review and require the City to implement corrective actions to restore compliance. Continued noncompliance could affect the City's eligibility to receive future federal financial assistance.

2. Council could decide not to approve the Contingency Fleet Plan. Should Council pursue this option, staff would dispose of vehicles that have reached or exceeded their minimum useful life in accordance with FTA requirements once replacement vehicles have entered revenue service. SLO Transit would continue to rely on the replacement fleet and work with its contracted operations and maintenance provider to meet service requirements. However, the City would have fewer reserve vehicles available to respond to unforeseen maintenance issues, service disruptions, or other operational contingencies during the transition to a zero-emission fleet.

3. Council could decide to direct staff to make changes to either or both plans prior to approval. Should Council pursue this option, staff will incorporate the changes into the final versions of the plans and route them for the City Manager’s approval. If Council directs staff to make significant changes to the 2026 Transit Asset Management Plan, then there is limited time for staff to revise the plan and return to Council for consideration before the October 1, 2026, deadline.

ATTACHMENTS
A - Draft Resolution approving the 2026 Transit Asset Management Plan and Contingency Fleet Plan
B - 2026 Transit Asset Management Plan, Final Draft
C - Contingency Fleet Plan, Final Draft

R ______
RESOLUTION NO. _____ (2026 SERIES)

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

OBISPO, CALIFORNIA, APPROVING SAN LUIS OBISPO (SLO)
TRANSIT’S 2026 TRANSIT ASSET MANAGEMENT PLAN AND

CONTINGENCY FLEET PLAN, AND AUTHORIZING THE CITY

MANAGER TO APPROVE FUTURE ADMINISTRATIVE UPDATES TO

THE PLANS
WHEREAS, the City of San Luis Obispo receives federal financial assistance from the Federal Transit Administration (FTA) under the Urbanized Area Formula Grants program for the operation of San Luis Obispo (SLO) Transit, a public transportation system; and
WHEREAS, the FTA requires transit operators to develop, implement, and update their Transit Asset Management (TAM) Plan at least every four years in accordance with 49 Code of Federal Regulations (CFR) Part 625; and
WHEREAS, SLO Transit is a Tier II transit provider under 49 CFR Part 625 and is therefore required to develop and carry out a TAM Plan addressing the applicable Tier II requirements, including an inventory of capital assets, condition assessments of inventoried assets, a description of the decision-support process used to make capital investment decisions, and a prioritized list of investments to maintain or improve the capital assets; and
WHEREAS, the City has prepared an update to the TAM Plan in accordance with 49 CFR Part 625, which also supports the City’s Climate Action Plan and compliance with the State of California’s Innovative Clean Transit regulations; and WHEREAS, FTA Circular 5010.1F, Award Management Requirements, permits the use of a contingency fleet consisting of inactive rolling stock retained for emergencies or other unforeseen and justified activities, including the transition to zero-emission vehicles, provided such vehicles have met applicable minimum useful life requirements and are properly stored, maintained, and documented in a contingency plan; and WHEREAS, SLO Transit is transitioning to a zero-emission bus fleet and has developed a Contingency Fleet Plan to establish the criteria and procedures for retaining eligible vehicles in a contingency fleet, including documentation of vehicle useful life, justification for contingency fleet status, activation periods, storage and protection, and required maintenance activities; and
WHEREAS, approval of the 2026 Transit Asset Management Plan and Contingency Fleet Plan will support the City's continued compliance with applicable FTA requirements and provide a basis for managing SLO Transit's capital assets and contingency fleet in response to changing operational conditions; and

Resolution No. _____ (2026 Series) Page 2
R ______
WHEREAS, the City Council desires to authorize the City Manager, as SLO Transit’s Accountable Executive, to approve future administrative updates to the 2026 Transit Asset Management Plan and Contingency Fleet Plan when such updates are necessary to maintain compliance with applicable FTA requirements or address changing operational conditions.

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

1. Approve San Luis Obispo (SLO) Transit’s 2026 Transit Asset Management Plan and Contingency Fleet Plan and authorize the City Manager, as SLO Transit’s Accountable Executive, to sign the final versions of these Plans; and

2. Authorize the City Manager, or their designee as authorized by the City Manager, to approve administrative updates, amendments, and revisions to the 2026 Transit Asset Management Plan and Contingency Fleet Plan that are necessary to maintain compliance with applicable federal laws and regulations or to reflect changes in SLO Transit's capital assets, asset condition, inventory, maintenance practices, or operational conditions.

SECTION 1. Environmental Review. The California Environmental Quality Act (CEQA) does not apply to the recommended action because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.

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 1st day of September 2026. ___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk

Resolution No. _____ (2026 Series) Page 3
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

City of San Luis Obispo, Title, Subtitle

City of San Luis Obispo
San Luis Obispo (SLO) Transit
990 Palm Street
San Luis Obispo, CA 93401
Transit Asset Management (TAM) Plan
Approved September 1, 2026
Accountable Executive
Whitney McDonald, City Manager
Date

Table of Contents
Introduction .................................................................................................................................... 3 Target Setting Methodology........................................................................................................... 4 Asset Inventory ............................................................................................................................... 5 Revenue Vehicles........................................................................................................................ 5 Equipment – Non-Revenue Service Vehicles.............................................................................. 5 Facilities....................................................................................................................................... 6 Asset Condition Assessment........................................................................................................... 7 Revenue and Non-Revenue Vehicles Condition ......................................................................... 7 Facilities Condition...................................................................................................................... 7 Decision Support Tools ................................................................................................................... 8 Investment Prioritization ................................................................................................................ 8 Transition to Fully Electric Fleet.................................................................................................. 9 Charging Infrastructure............................................................................................................... 9 Cutaway Replacement................................................................................................................ 9 ADA Van Replacement.............................................................................................................. 10 Appendices.................................................................................................................................... 10

Introduction
The City of San Luis Obispo (City) is centrally located along California's Central Coast, halfway between San Francisco and Los Angeles. The City is the County Seat for San Luis Obispo County and as such, it is also the governmental, economic, medical and educational hub for the other cities in the county. San Luis Obispo has a population of roughly 47,063 (US Census, 2021) with an estimated additional population of 22,279 students when California Poly Technic State University is in session.

SLO Transit is the local fixed-route transit operation for the City, operating under the City’s Public Works and Utilities Department. As of September 2025, SLO Transit operates 11 vehicles at peak along eight fixed-routes, one tripper route, and one express route; within the 23 square miles of the city limits of San Luis Obispo and the adjacent California Poly Technic State University campus.

SLO Transit operates Monday through Friday, approximately from 6:00 a.m. to 11:00 p.m. and Saturday and Sunday from 8:00 a.m. to 8:00 p.m.

Similar to other agencies across the nation that were affected by the pandemic, SLO Transit has steadily increased service and ridership over the last four years and is on track to return to prepandemic levels of service by fall 2026. SLO Transit’sridership demographics reflect a broad cross section of riders, including but not limited to seniors, persons with disabilities, socially or economically transit dependent, K-12 Students, collegial students, working professionals, and choice riders. The operation of all fixed-route services is contracted out to a third-party vendor; currently awarded to MV Transportation, Inc.

For door-to-door demand response paratransit services, SLO Transit provides part of its funding allocation, off-the-top, to the county's consolidated para-transit service provider known as RunAbout. Run-About is operated by the San Luis Obispo Regional Transit Authority (RTA), who also provides regional fixed-route services as well as local fixed-route services in the North County, South County, and Morro Bay areas.

SLO Transit aligns with the City’s Climate Action Plan, which centers on reducing greenhouse gas emissions along with following the California Air Resources Board (CARB) adopted Innovative Clean Transit (ICT) fleet regulations by converting its existing diesel-powered fleet to a 100 percent zero-emission bus (ZEB) fleet by 2040. In response to the City’s Climate Action Plan, and the State’s ICT regulation, SLO Transit developed its Zero-Emission Bus Rollout Plan which documents the agency’s plan for replacing its diesel-powered fleet with electric powered buses.

SLO Transit currently has eight electric buses in service with two more scheduled to be in service by fall 2026. The State’s and City’s climate action goals is a determining factor in supporting the investment decisions for bus replacement prioritization.

SLO Transit operates fewer than 100 vehicles in revenue service during peak regular service across all non-rail fixed route modes and is therefore considered a Tier II provider as defined by 49 Code of Federal Regulations (CFR) Part 625.

Whitney McDonald, City Manager, is the designated Accountable Executive and has the authority to set transit asset management policies, approve the Transit Asset Management (TAM) Plan,

City of San Luis Obispo, Title, Subtitle

and direct the allocation of resources necessary to achieve and maintain a State of Good Repair in accordance with 49 CFR Part 625.

Target Setting Methodology
As part of an ongoing scheduling and planning process, SLO Transit reviews the percentage of vehicles within the asset classes that have met or exceeded their Federal Transit Administration (FTA)-defined Useful Life Benchmark (ULB). SLO Transit’s plan states that no more than 50 percent of the revenue vehicle, fixed route fleet is to exceed the ULB. Table 1 below outlines SLO Transit’s 2026 through 2030 performance targets and measures. These targets align with the FTA’s TAMplate application, the FTA’s Transit Economic Requirements Model (TERM) scale for the maintenance and bus yard facility rating, and with SLO Transit’s annual National Transit Database (NTD) reporting.

Table 1 - Asset Performance Targets and Measures
Asset Category
Performance Measure Asset Class 2026 Target
2027
Target
2028
Target
2029
Target
2030
Target
Age - % of vehicles that have
met or exceeded their ULB
BU - Bus 21% 7% 7% 29% 29%
CU - Cutaway N/A 0% 0% 0% 0%
DB – Double Decker 100% 100% 100% 100% 0%
RT – Rubber Tire
Vintage Trolley 100% 100% 0% 0% 0%
Age - % of vehicles that have
met or exceeded their Useful
Life Benchmark (ULB)
Non-Revenue /
Service Automobiles,
Trucks and
Equipment.
100% 0% 50% 50% 50%
Condition - % of facilities with
a condition rating below 3.0
on the TERM Scale
Maintenance Facility 0% 0% 0% 0% 0%

City of San Luis Obispo, Title, Subtitle

Asset Inventory
This section provides an inventory of City-owned transit assets. Table 2 is a summary of the transit asset inventory including quantity, average age, average mileage (vehicles only), and average and total replacement cost estimates. The following assets fall into three FTA-defined categories:

1. Revenue Vehicles

2. Equipment

3. Facilities
Revenue Vehicles
SLO Transit currently operates a total of 16 revenue vehicles made up of 14 Low-floor heavy-duty buses, 1 Double Decker bus, 1 medium-duty cutaway bus, and 1 Rubber-tired Vintage Trolley.

The existing cutaway bus’s engine failed in December 2024 and was disposed of in September 2025. SLO Transit plans to purchase a new battery electric cutaway bus in 2026 which is expected to enter service by 2027.

SLO Transit’s Short-Range Transit Plan includes a target that no more than 50 percent of its revenue vehicles should exceed their useful life benchmarks (ULBs)1in terms of vehicle age. SLO Transit’s priority is to replace existing diesel-powered buses that have surpassed their ULBs with battery-electric (BEB) buses. SLO Transit currently has 8 BEBs in service and 2 additional BEBs have been delivered but have not yet entered revenue service. SLO Transit anticipates that the 2 additional BEBs will enter service in fall 2026. These 10 BEBs were purchased to replace older diesel-powered buses that have exceeded their ULBs.

The City’s adopted 2025-27 Financial Plan includes the purchase of 1 battery electric cutaway bus in Fiscal Year (FY) 2025-26 to replace the recently disposed of gasoline-powered model (page 293) as well as the purchase of 3 BEBs in FY 2026-27 to replace existing diesel-powered buses (page 267).

Equipment – Non-Revenue Service Vehicles
SLO Transit currently owns 1 Ford F-350, utility truck and 1 ADA Van both of which are used by the operations and maintenance contractor. SLO Transit’s TAM Plan includes a target that no more than 50 percent of its support vehicles (non-revenue) to exceed their ULBs. The ADA Van is scheduled to be replaced with a battery-electric equivalent in 2026. Even though the Zeroemission Rollout Plan does not require procurement of non-revenue zero-emission vehicles, the

1 FTA tracks the performance of revenue vehicles (Rolling Stock) and non-revenue service vehicles (Equipment), by asset class, by calculating the percentage of vehicles that have met or exceeded the useful life benchmark (ULB). FTA has set a default ULB as the expected service years for each vehicle class in the table below. ULB is the average number of years at which a vehicle would reach a 2.5 rating on the FTA Transit Economic Requirements Model (TERM) scale, assuming a standard maintenance schedule.

City of San Luis Obispo, Title, Subtitle

City’s Fleet Purchasing Policy requires all new City-owned fleet vehicles to be zero-emission if zero-emission equivalents are available.

Facilities
SLO Transit maintains and operates its fleet from an operations and maintenance facility located at 29 Prado Road, San Luis Obispo, CA. The facility is composed of 24 bus bays, two maintenance bays with lift-jacks, a bus wash facility, administrative offices, and electric vehicle charging infrastructure.

With the age of the facility being 38 years, SLO Transit conducts monthly inspections to assess the condition and function of different facility elements. Any deficiencies are documented and repaired. Installation of four dual-port charging stations, two power blocks, and transformer upgrades was recently completed. This equipment is in addition to the existing two single-port charging stations installed in 2024. This equipment is sufficient to support the operation of 10 BEBs; however, additional equipment will need to be purchased and installed to support the full transition to a zero-emission fleet.

The City is also working on a multi-site solar panel project which includes installation of panels at the transit operations and maintenance yard to offset daytime electrical needs of the facility.

Table 2 - Asset Inventory Summary
Asset Category / Class Total No.

Average
Age (in
Years)
Average
Annual
Mileage
Average
Replacement
Cost/Value
Total
Replacement
Cost/Value
Revenue Vehicles 16 7.3 25,225 $ 1,403,400 $ 25,260,600 BU – Bus 14 5.8 29,994 $ 1,410,000 $ 22,560,000
CU – Cutaway2-- -- -- $ 300,600 $ 300,600
DD – Double Decker Bus 1 17 7,925 $ 1,750,000 $ 1,750,000 RT – Rubber-tired Vintage Trolley 1 18 4,373 $ 650,000 $ 650,000 Equipment (Non-Revenue Vehicles) 2 12 4,780 $ 105,000 $ 210,000 Ford F-350 1 10 2,175 $ 60,000 $ 60,000
ADA Van 1 14 7,385 $ 150,000 $ 150,000
Facilities 1 38 -- $ 10,000,000 $ 10,000,000
Bus Maintenance Facility 1 38 -- $ 10,000,000 $ 10,000,000

2 Historically, SLO Transit has operated a cutaway bus as part of its revenue fleet. However, the existing cutaway bus’s engine failed in December 2024 and was disposed of in September 2025. SLO Transit plans to purchase a new zero-emission cutaway bus in 2026 which is expected to enter service by 2027.

City of San Luis Obispo, Title, Subtitle

Asset Condition Assessment
Revenue and Non-Revenue Vehicles Condition
SLO Transit has assessed its rolling stock condition using an age-based methodology in alignment with the FTA’s default Useful Life Benchmark (ULB), supplemented by maintenance performance data and contractor-reported reliability metrics. SLO Transit utilizes the FTA’s ULBs of 12 years for heavy-duty buses (which includes the Double Decker bus), 12 years for the Rubber-tired Vintage Trolley, and 10 years for the cutaway bus. An overall condition assessment is used for the bus maintenance facility.

With the majority of diesel-powered buses being replaced by BEBsin 2026, SLO Transit is working closely with its operations and maintenance services contractor to review ongoing preventative maintenance requirements and performance metrics to ensure the BEBs remain in a state of good repair. In the upcoming years, SLO Transit expects to implement a planned service expansion which will increase the use and mileage of these BEBs.

At the time of this plan update, 31 percent of SLO Transit’s revenue vehicle fleet has either met or exceeded its ULB. The percentage of vehicle at or beyond its useful life decreased significantly when 6 new BEBs entered service in March 2026. SLO Transit anticipates that this percentage will decrease further with 2 additional BEBs expected to enter service in fall 2026. The older diesel buses replaced by these new BEBs will be removed from active service and retired.

Facilities Condition
Facilities condition is assessed using FTA’s TERM scale. The TERM scale rates the condition of an asset on a scale of one to five:
 1 = Poor (asset is in need of immediate repair or replacement or may have critically damaged components)
 2 = Marginal (asset is reaching or is just past the end of its useful life; there are an increasing number of defective or deteriorated components and increasing maintenance needs)
 3 = Adequate (asset has reached its mid-life; some moderately defective or deteriorated components)
 4 = Good (asset shows minimal signs of wear, some slightly defective or deteriorated components)
 5 = Excellent (asset is new with no visible defects)
SLO Transit has set a standard of not falling below a 3 on the FTA-defined TERM scale and has currently rated it at a 3.5. While the facility currently meets a state of good repair, its age and current status present long-term issues related to electrical capacity and fleet electrification needs, which are being addressed through a phased capital project for infrastructure electrification.

City of San Luis Obispo, Title, Subtitle

Table 3 - Asset Condition Assessment
Asset Category / Class Total No.

Average
Age (in
Years)
Average
Annual
Mileage
Average
TERM
Condition
Average
Value
% At or
Past ULB
Revenue Vehicles 16 7.3 25,225 -- $ 1,200,000 31%
BU – Bus 14 5.8 29,994 -- $ 1,410,000 21%
DD – Double Decker Bus 1 17 7,925 -- $ 1,750,000 100%
RT – Rubber Tire Vintage Trolley 1 18 4,373 -- $ 650,000 100% Equipment (Non-Revenue Vehicles) 2 12 4,780 -- $ 105,000 50% Ford F350 1 10 2,175 -- $ 60,000 0%
ADA Van 1 14 7,385 -- $ 150,000 100%
Facilities 1 38 -- 3.5 $ 10,000,000 0%
Bus Maintenance Facility 1 38 -- 3.5 $ 10,000,000 0%
Decision Support Tools
The following tools and planning documents are used in making investment decisions:

Transit Fleet Roster - SLO Transit uses Microsoft Excel to track and maintain its fleet data including mileage, age, costs, and the percentage of fleet that has met or exceeded its ULB.

Short-Range Transit Plan - The Short-Range Transit Plan identifies projects and fleet requirements to maintain compliance with state mandates as well as implement planned service expansion needs.

ICT Zero-Emission Roll-Out Plan - The Innovative Clean Transit (ICT) fleet regulation requires transit agencies to shift to an all-electric fleet by 2040. SLO Transit developed its Zero-Emission Roll-Out Plan to align with the state regulations along with the City of San Luis Obispo’s Climate Action Plan to achieve community-wide carbon neutrality by 2035.

FTA TAMPlate - FTA’s TAMPlate model was used to derive targets and tables for revenue vehicles, non-revenue support vehicles, facilities, conditional assessments and costs.

Investment Prioritization
Investment priorities are determined based on the following criteria:

City of San Luis Obispo, Title, Subtitle

 Asset condition relative to Useful Life Benchmarks
 Impact on safety and service reliability
 Compliance with state and federal regulatory requirements  Support of zero-emission fleet transition
 Ability to maintain or improve the State of Good Repair SLO Transit has operated a majority of its diesel-powered fleet beyond their Useful Life Benchmarks(ULBs) due to the pandemic, staff turnover, and changes in federal and state funding availability; all of which delayed procurement of replacement buses. The City has prioritized carbon-neutrality goals outlined in its Climate Action Plan which adopted specific sector goals aimed at reducing greenhouse gas emissions. Along with the City’s Climate Action Plan, SLO transit is following the State’s Innovative Clean Transit (ICT) regulation which impacts transit vehicle procurement for small agencies beginning in 2026.

SLO Transit is in the process of transitioning its diesel-powered fleet to a battery electric, zeroemission fleet. The transition to an all-electric fleet remains a top priority for SLO Transit and, as such, all further purchases of revenue and non-revenue vehicles will be BEBs assuming market availability at time of purchase. SLO Transit has identified associated capital investment priorities that will support the electrification of its fleet. These priority investments are discussed below and are summarized in Table 4 below.

Transition to Fully Electric Fleet
A top priority is to transition the existing diesel-powered fleet to an all-electric fleet. Along with the State’s ICT requirements, SLO Transit’s dedication to fleet reliability and safety remains a top priority in allocating funds to these assets. With a significant percentage of existing buses past their ULBs and a steady uptick in maintenance requirements over the past five years, SLO Transit has made funding the transition a top priority.

Charging Infrastructure
In order to transition to an all-electric fleet, the City’s transit operations and maintenance facility requires improvements to install the necessary electric vehicle charging infrastructure. In 2024, the City completed the groundwork, electrical upgrades, and installation of 2 single-port charging stations to support the 2 BEBs in service. A second project is nearing completion to install four additional dual-port charging stations and support equipment, transformer upgrades, and minor groundwork needed to support the 8 BEBs delivered in 2025 and 2026.

Future construction is needed to complete the charging infrastructure build-out. Given the critical role charging infrastructure plays in SLO Transit’s continued transition to zero-emission operation, investment in future infrastructure projects is ranked as a ‘High’ priority.

Cutaway Replacement
The City’s gasoline-powered cutaway bus experienced an engine failure in December 2024 and was disposed of in September 2025. The City’s adopted financial plan includes budget for

City of San Luis Obispo, Title, Subtitle

purchase of a replacement cutaway bus with a battery-electric equivalent in 2026. With the cutaway’s main purpose of serving a tripper route, this project investment priority is ranked lower compared to other fleet replacements.

ADA Van Replacement
Also, due to the age of this support vehicle along with maintenance issues, the ADA Van is scheduled to be replaced in 2026 with a battery-electric equivalent. This support vehicle is used by contracted personnel to provide service for riders left behind due to overcrowding. The contractor also provides support vehicles used in the performance of the contract, so replacement of the City’s ADA Van is considered a ‘Medium’ priority.

Table 4 - Investment Priorities List
Project Name Project
Year Asset Category Asset Class Unit Cost Priority
Replace (1) ADA Van
No. 1202 2026 Equipment Other Rubber Tire Vehicles $ 150,000 Medium Replace (1) Cutaway
No. 1167 2026 Revenue Vehicles CU – Cutaway $ 300,600 Medium Replace (1) 40’ Diesel Bus
No. 1366
2027 Revenue
Vehicles BU – Bus $ 1,410,000 High
Charging Infrastructure 2027 Facilities Facility $ 700,000 High Replace (1) Trolley
No. 0856 2028 Revenue Vehicles
RT – Rubber Tire
Vintage Trolley $ 650,000 Low
Replace (3) 40’ Diesel Buses
Nos. 1768, 1769, 1770 2029 Revenue Vehicles BU – Bus $ 4,230,000 Medium Appendices
Appendix A - Fleet Replacement Module Table
Appendix B – Asset Register Table

Appendix A - Fleet Replacement Module
2026 2027 2028 2029 2030
Fleet Type No. of
Units
Cost
(in 2026
Dollars)
No. of
Units
Cost
(in 2026
Dollars)
No. of
Units
Cost
(in 2026
Dollars)
No. of
Units
Cost
(in 2026
Dollars)
No. of
Units
Cost
(in 2026
Dollars)
2011 Cutaway Bus 1 $ 300,600
2012 ADA Van 1 $ 150,000
2013 Heavy-duty bus 1 $ 1,410,000
2009 Double Decker
bus 1 $ 1,750,000
2008 Replica Trolley 1 $ 650,000
2017 Heavy-duty bus 3 $ 4,230,000
Total Cost in Current
Year Dollars $ 450,600 $ 1,410,000 $ 2,400,000 $ 4,230,000 $ 0 Inflation Rate 0 10% 20% 30% 40%
Compounded
Inflation 1 1.10 1.20 1.30 1.40
Total Cost in
Replacement Year
Dollars
$ 450,6000 $ 1,551,000 $ 2,880,000 $ 5,499,000 $ 0

Appendix B - Asset Register
Revenue Vehicle Assets
Current Year 2026 2026
Revenue Vehicles
Asset Agency Fleet Asset Age Acquisition Vehicle Repolacement Useful Life Useful Life Category ID Class (Yrs.) Year Mileage Cost/Value Benchmark Remaining Revenue Vehicle 1264 BU 14 2012 428,131 $1,410,000 12 -2 Revenue Vehicle 1365 BU 13 2013 487,840 $1,410,000 12 -1 Revenue Vehicle 1366 BU 13 2013 452,197 $1,410,000 12 -1 Revenue Vehicle 1768 BU 9 2017 360,773 $1,410,000 12 3
Revenue Vehicle 1769 BU 9 2017 375,037 $1,410,000 12 3
Revenue Vehicle 1770 BU 9 2017 327,691 $1,410,000 12 3
Revenue Vehicle 2271 BU 4 2022 28,953 $1,410,000 12 8
Revenue Vehicle 2272 BU 4 2022 46,637 $1,410,000 12 8
Revenue Vehicle 2573 BU 1 2025 3,794 $1,410,000 12 11
Revenue Vehicle 2574 BU 1 2025 5,017 $1,410,000 12 11
Revenue Vehicle 2575 BU 1 2025 2,408 $1,410,000 12 11
Revenue Vehicle 2576 BU 1 2025 1,952 $1,410,000 12 11
Revenue Vehicle 2577 BU 1 2025 4,374 $1,410,000 12 11
Revenue Vehicle 2578 BU 1 2025 4,440 $1,410,000 12 11
Revenue Vehicle 963 DB - Double Decker 17 2009 134,728 $1,750,000 12 -5 Revenue Vehicle 856 RT - Rubber-tire Vintage 18 2008 78,720 $650,000 12 -6 Equipment (Non-Revenue Vehicles)
Asset Agency Fleet Asset Age Vehicle Repolacement Useful Life Useful Life Category ID Class (Yrs.) Mileage Cost/Value Benchmark Remaining Equipment 1636 Service Truck 10 2016 21,750 $60,000 14 4 Equipment 1202 MV - Mini Van 14 2012 103,389 $150,000 8 -6

San Luis Obispo (SLO)
Transit
Contingency Fleet Plan
Prepared by:

City of San Luis Obispo
Public Works and Utilities Department
990 Palm Street
San Luis Obispo, CA 93401
www.slocity.org

Revision History
Revision No. Date Description

1.0 September 1, 2026 Approval of initial plan
Document Approval
Approved By Position Date Signature
Whitney McDonald City Manager MMM, DD, YYYY
This Contingency Fleet Plan is approved by the City Manager, who serves as the Accountable Executive for San Luis Obispo (SLO) Transit, as authorized by the City Council of the City of San Luis Obispo on September 1, 2026. The City Manager is also authorized to approve future administrative updates to the Plan as necessary to maintain compliance with applicable Federal Transit Administration requirements and to address changing operational conditions.

Purpose
The Contingency Fleet Plan (Plan) is to ensure the continued provision of safe, reliable, and efficient public transit service during the City of San Luis Obispo’s (City) transition from conventional diesel-powered buses to battery-electric buses (BEBs).

The City operates a fixed-route fleet of 18 revenue vehicles. Due to the relatively small fleet size, the temporary unavailability of even a few vehicles may significantly impact service delivery. As such, maintaining a contingency fleet is necessary to ensure continuity of operations during the phased transition to zero-emission technologies.

This Plan establishes the policy and procedures for maintaining and deploying a limited contingency fleet of legacy vehicles. This Plan also outlines the periodic need and justification for the City’s contingency fleet as required by the Federal Transit Administration (FTA) prior to establishing a contingency fleet.

Staff reviews this plan annually and updates it as necessary to support the contingency fleet and related processes and procedures. The City’s active rolling stock is not part of the contingency fleet and the City does not calculate or include contingency fleet vehicles into its spare ratio.

Regulatory Framework
This Plan is developed in accordance with applicable federal requirements governing transit asset management and federally funded property. While the Code of Federal Regulations does not specifically define or regulate contingency fleets, this Plan is consistent with 49 CFR Part 625 (Transit Asset Management), which requires recipients to implement lifecycle management practices for capital assets.

In addition, this Plan aligns with guidance set forth by FTA Circular 5010.1F (Award Management Requirement) which permits recipients to retain vehicles beyond their minimum useful life and to use these vehicles for non-routine or contingency purposes, provided that such use is appropriately documented and the vehicles are excluded from spare ratio calculations.

The City will maintain compliance with FTA spare ratio requirements1 by excluding contingency fleet vehicles from spare ratio calculations and maintaining clear fleet documentation that distinguishes between active fleet vehicles and inactive2 vehicles.

The City will also ensure consistency between this Plan and National Transit Database (NTD) reporting, including proper classification of contingency vehicles.

Collectively, these authorities provide the regulatory basis for the limited retention and controlled use of contingency vehicles to support service continuity during the City’s transition to 100 percent zero-emission fleet operations. Additionally, this Plan supports compliance with California’s Innovative Clean Transit Regulation, which requires full transition to zero-emission bus fleets by 2040.

Policy Statement
The City actively maintains a contingency transit fleet in compliance with FTA requirements and, as such, is in addition to the normal spare ratio as allowed by federal regulations. The contingency fleet will be used only for emergency responses, employee training, or to maintain service delivery levels throughout the City’s transition to a zeroemission fleet. The contingency fleet will be maintained per original equipment manufacturer (OEM) requirements to ensure mechanical reliability and readiness.

Contingency Fleet Composition
The contingency fleet will consist of diesel buses that have met or exceeded the Useful Life Benchmark (ULB) requirements. In the case of large, heavy-duty transit buses, the ULB is at least 12 years of service or an accumulation of at least 500,000 miles. Table 1 is the list of contingency fleet vehicles which is a reasonable and proportional contingency capacity for an 18-vehicle fleet. Consistent with FTA expectations, the size of the contingency fleet reflects the operational needs of a small system and the risks associated with phased BEB deployment.

1 The FTA does not set a specific spare ratio for agencies with fewer than 50 vehicles operated in maximum fixed-route service (i.e. City of San Luis Obispo); however, the FTA expects the number of spare buses to be reasonable, considering the number of vehicles and variety of vehicle types and sizes. 2 Contingency vehicles are considered inactive and are not assigned to daily service.

Table 1 - List of Contingency Fleet Vehicles
Fleet ID Model
Year Make Description
Year
Removed
from Service
Mileage (at
time of
Removal)*
Useful
Life
0861 2008 Gillig Heavy-duty,
35-foot 2026 484,210
12 years
or 500,000
miles
1264 2012 Gillig Heavy-duty,
40-foot 2026 437,276
12 years
or 500,000
miles
1365 2013 Gillig Heavy-duty,
40-foot 2026 493,253
12 years
or 500,000
miles
*Mileage shown is as of June 30, 2026. Mileage will be updated prior to plan approval Permitted Uses
Contingency vehicles may be deployed only under the following circumstances:

Zero-Emission Vehicle Constraints
 Range limitations and/or operational constraints of BEBs  Reduced vehicle availability due to performance issues Charging Infrastructure Limitations
 Charging equipment failures or reduced capacity
 Utility outages, including Public Safety Power Shutoffs Maintenance Backfill
 Extended maintenance or repair of BEBs
 Delays in parts or warranty service
Emergency Operations
 Natural disasters, including but not limited to wildfires or evacuations  Regional emergency response or mutual aid
Temporary Service Needs
 Short-term increases in service demand
Activation and Documentation
Requests to activate contingency fleet vehicles will be made in writing and can be made either by the City or by the City’s contracted service provider. Final approval for activation shall be made by the Mobility Services Business Manager or their designee. Written request is not required in the event of an emergency that requires immediate activation or for maintenance training purposes. Each activation of a contingency vehicle will be documented including date and duration of use, reason for activation, fleet identification number, and service or route assignment.

Maintenance and Storage
Buses in the contingency fleet are subject to a 6,000-mile preventive maintenance (PM) schedule. Periodic vehicle “start-ups” will occur between normal preventive maintenance

inspections (PMI) so the fleet remains ready for service activation at all times. Prior to activating contingency vehicles back into revenue service, the City will perform a safety inspection. If the vehicle has been inactive for more than sixty (60) days, the City will perform a full PMI.

The City may revise its vehicle inspection and/or PMI intervals if the City determines the above intervals are inadequate. The City will maintain and make available (upon request) all records associated with the contingency fleet.

The contingency fleet will be stored at the City’s Transit Operation and Maintenance Facility located at 29 Prado Road, San Luis Obispo, CA. This facility has security fencing surrounding the property, security cameras at strategic locations, and perimeter lighting.

Monitoring and Plan Updates
Annually, staff will review the Contingency Fleet Plan and the activation of contingency fleet vehicles to determine if this Plan needs to be updated. The following criteria will be used during the annual review:
 Frequency and duration of contingency fleet usage
 Causes of deployment
 Battery-electric bus reliability and availability
 Changes in Federal and State laws
 Funding availability for future battery electric bus and associated infrastructure procurements
Through the annual review and update process, the City may begin a phased reduction of the contingency fleet as the transition to zero-emission technologies progresses.

Vehicles will be considered for disposition when BEB fleet availability and infrastructure reliability demonstrate sustained operational stability. If the City determines that the number of vehicles retained in the contingency fleet can be reduced, then disposition of contingency vehicles will occur in accordance with FTA asset disposition requirements once no longer needed
Conclusion
This Fleet Contingency Plan provides a limited, controlled, and compliant framework for retaining legacy diesel vehicles during the City’s transition to a zero-emission fleet. The Plan ensures alignment with FTA requirements while maintaining the operational flexibility necessary to deliver reliable transit service to the San Luis Obispo community.

Item 7a
Department: Police
Cost Center: 8001
For Agenda of: 9/1/2026
Placement: Business
Estimated Time: 30 Minutes
FROM: Rick Scott, Police Chief
Prepared By: Aaron Schafer, Deputy Chief
SUBJECT: POLICE DEPARTMENT 2025 ANNUAL REPORT

RECOMMENDATION
Receive and file the Police Department 2025 Annual Report.

POLICY CONTEXT
The intent of this item is to provide the City Council with a general update on department activities to include the 2025 Police Department Annual Report (Attachment A).

DISCUSSION
Background
The 2025 Police Department Annual Report (Attachment A) provides an overview of the past operational year. This report covers key areas integral to the Police Department’s operations and future planning. These areas include the organizational structure, finances, community engagement, officer wellness, department statistics, technology, recruitment and retention, the Community Action Team and Community Service Officer program.

The report highlights key accomplishments, including a 16% decrease in Part 1 violent crimes (forcible rape, robbery, aggravated assault) and a 24 % decrease in Part 1 Property Crime (burglary, larceny, motor vehicle theft, and arson). Overall, Part 1 crimes decreased by 23% in 2025 compared to 2024. The Department has continued its crime prevention efforts through objectives outlined in its five-year strategic plan, and over the last 3 years, crime has decreased by 44% (2023-2025).

At the commencement of FY 2025-26, police staffing rose from 95.00 Full-Time Employees (FTE) to 97.00 FTE. In 2025, the Department added 2.00 FTE Police Officers after obtaining a Department of Justice Community Oriented Policing Services (COPS) Grant. This increase aligns with the recommendation from the 2024 staffing study, but the Department is still well short of current and forecasted needs for additional sworn and

Item 7a
professional staff. Staffing will remain a vital element in supporting the Department's commitment to enhance community safety and engagement.

The 2025 Police Department Annual Report highlights the exemplary level of service provided by the department while outlining the various aspects, divisions, and individuals that contribute to its continued success. This report not only shows the department's accomplishments but also reflects its commitment to delivering the highest standards of police services in our community.

The Police Department made significant strides in returning to a balanced, communityoriented, and proactive approach to providing emergency services. Focusing on staffing, proactive policing, and strengthening community relationships ensured a safe work environment for employees and supported them amidst a constantly changing public landscape. The department believes that proper staffing, smart policing that leverages technology, and positive morale directly impact crime reduction and the feeling of safety in the city.

Department staff worked diligently to ensure the department remained trusted, supported, and healthy, both physically and emotionally. Continuing education and proactive measures have helped reduce crime trends, and these efforts have persisted into the beginning of 2026. Select strategies include directed patrols at problem locations, specialized operations to apprehend opportunistic criminals, and community engagement through various media to reduce victimization and increase awareness. The Police Department remains dedicated to reducing crime and safeguarding the community while upholding ethical policing through quality service in an ever-evolving legal landscape.

Previous Council or Advisory Body Action
On September 2, 2025, the City Council received and filed the 2024 Police Department's Annual Report.

Public Engagement
This item is on the agenda for the September 1, 2026, City Council meeting and will follow all required postings and notifications. The public may provide comments on this item at or before the meeting.

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: Yes Budget Year: 2025-26

Item 7a
Funding Identified: Yes
Fiscal Analysis:

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

Total $ 0 $ 0 $ 0 $ 0
There is no fiscal impact associated with the Council receiving and filing this report. All lines of effort discussed in the report are included in the Police Department’s annual budget allocation as approved by the City Council.

ALTERNATIVES
The City Council could choose not to receive and file the Police Department Annual Report as presented. Council could direct staff to make modifications to the report. The Police Department believes that the Annual Report accurately reflects the crime statistics for the 2025 calendar year and provides a comprehensive review of departmental activities, providing transparency and accountability to the community.

ATTACHMENTS
A - 2025 Police Department Annual Report

A N N UA L
R E P O R T 2025
San Luis Obispo Police Department

Chief’s message
Chief of Police Rick Scott
Dear our SLO Community,
2025 proved to be an exceptional year for the safety and security of our SLO community. Over the past year, we
experienced an overall 23% reduction in crime! This includes a 16% reduction in total violent crimes and a 24% reduction in total property crimes. The department continues to prioritize personal safety for all community members and visitors alike.

The department is approximately halfway through our 5-Year Strategic Plan and the progress made so far on our shared Goals and Objectives is already yielding positive results in the community. Many objectives have been completed, but efforts to increase belonging and the true feeling of safety and security will continue long after the plan is complete.

A great example of this is the Goal related to Infrastructure and Technology to insure we are investing in our people, equipment, and technology to deliver the next generation services our community deserves. I am proud of all of our employees for prioritizing our strategic plan and delivering on these amazing work efforts! As we close out 2025 and look forward to an outstanding 2026, we want to sincerely thank the women and men of the San Luis Obispo Police Department for their continued dedication and passion for serving you. We also want to thank our amazing community for the support and trust placed in your police department to achieve your vision for a safer and more welcoming community, which we believe truly defines the SLO quality of life.

A community partnership built
on trust, focused on safety, and
shared values to ensure the SLO
quality of life.

To safeguard our community from
harm by reducing crime and
ensuring dignity, equity, and justice
for all we serve.

DEPARTMENT PURPOSE DEPARTMENT VISION

Organizational Structure & Budget
Community Engagement
Sustainable SLO & Police
Department Statistics
Technology
Recruitment & Retention
Officer Wellness
Strategic Plan
Organizational Structure & Budget
Community Engagement
Sustainable SLO & Police
Department Statistics
Technology
Recruitment & Retention
Officer Wellness
Strategic Plan
table of contents
4 5
9 10
17 18
19 20
4 5
9 10
17 18
19 20
3

Chief of Police
Executive Assistant
Deputy Chief Operations Deputy Chief Administration
Public Affairs
Manager
Day/Night
Lieutenants
SNAP
Patrol/Traffic
Sergeants
Patrol Officers
Community
Action Team
Downtown Bike
Team
Community
Service Officers
Traffic Officers
Admin
Lieutenant
Dispatch
Lieutenant
Sr. Business
Analyst
Records
Division
Dispatch
Admin.

Assistant
Detective
Bureau
Special Enforcement
Team
Property & Evidence
2025 Staffing:
97 Total Full Time Positions
63 Sworn
34 Professional Staff
Data Analyst
Hiring
Manager
Detective
Sergeant
Staffing
$23,764,483
Non Staffing
$1,834,080
organizational structure & Budget
FY 25-26

BUDGE T DEPARTMENT PROGRAMS
Administration
$2,781,586
Investigations
$4,973,125
Neighborhood Services
$327,043
$25,598,563
Patrol
$13,692,074
Support Services
$3,703,803
Traffic Safety
$1,020,933
4

The Community Safety
Advisory Council (CSAC) is
a collaborative initiative
which brings together the
department’s command
staff with the leadership of
both the PAC and Police
Roundtable to facilitate
collective initiatives and
cross-collaboration to best
inform and advise the
department on matters of
policy, policing concepts,
and quality of service.

CSAC provides a great
sounding board for the
Chief of Police and
elevates the voice of
community members
engaged in both the PAC
and Roundtable and their
respective constituents
from across the
community.

ROUNDTABLE PAC
community engagement

COMMUNITY SAFETY ADVISORY COUNCIL
SLOPD
The Roundtable is a
community based
group of volunteers
for the purpose of
regular direct
interaction and
effective
communication
between the San
Luis Obispo
community at large
and SLOPD. The
mission of the
Roundtable is to act
as a resource for the
Chief of Police in the
formation of
strategies,
development of
policing concepts,
and increasing public
awareness regarding
policing issues.

The San Luis Obispo
Police Advisory
Committee (PAC)
serves as a
community-based
group of advocates
for the purpose of
direct interaction and
effective
communication
between the San Luis
Obispo special
interest community
and SLOPD. The
mission of the PAC is
to advise the San Luis
Obispo Police
Department in the
formation of
strategies,
development of
policing concepts,
and community
outreach regarding
policing and
community safety
and unique needs
and interests of
marginalized or
underrepresented
members of our
community.
5

community engagement

COMMUNITY EVENTS & TRAINING
The department attended over 30 community events in 2025.

Achievement House Station Tour
SLO Assessor’s Office Safety
Presentation
Children’s Day in the Plaza
Day Care Visit
Grizzly Career Fair
Dia del Nino
805 Games
Law Enforcement Night at Farmers’
Market
UnDocuSupport Event
Jewish Heritage Day
Pride in the Plaza
Monday Meet Ups
History Revisited Fair
Super Heroes Day
National Night Out
Girl Scout Tour
Sheriff’s Day at the Ranch
Coffee with a Cop
Chumash Village Safety Talk
Farmers’ Market
Cops N Kids
Dia de Los Muertos
Trans Pride in the Park
Cub Scouts Bike Safety Presentation
6

community engagement

THE COMMUNITY ACTION TEAM
Identifies problems and crime trends that
negatively impact the quality of life for
residents, business owners and visitors to the
City of San Luis Obispo.

An officer and a Community Service Officer are
assigned to work with a social case worker and
a Licensed Psychiatric Technician to connect
people with services to address housing,
addiction, mental health and family
reunification.

CAT works collaboratively with various
organizations to address concerns and needs
including other City departments, social service
agencies, private businesses and non-profits.
2025 CAT Statistics
Treatment Referrals:

Family Reunifications:
157
8 Housing Referrals: 85
7

Total Citations Issued:

Total Arrests: 189
444
community engagement
The department has a total of six
Community Service Officers. CSOs are
non-sworn positions whose duties
include the following:

Assist with custody and release of
property
Provide traffic control when needed
Provide security and other assistance
at crime scenes
Issue citations for non-moving traffic
violations & enforce other violations
of the City’s Municipal Code
Respond to non-emergency calls for
service

COMMUNITY SERVICE OFFICERS
2025 CSO Statistics
8 Page 240 of 253
sustainable slo & Police
For the City of San Luis Obispo, Sustainable SLO is a
commitment to take action today to improve our
community for tomorrow. It reflects a collective effort to reduce pollution, clean up our air, protect natural
resources and open space, and make San Luis Obispo
more resilient to extreme heat, wildfires and flooding.

The City’s goal is to reduce carbon pollution by 10% each year, which is our part in the global effort to beat the climate crisis and protect our community today and for generations to come. With the City’s desire to implement the use of electric vehicles, the police department’s fleet now includes the following:

Electric bicycles used by the
Downtown Bike Team
Electric motorcycle used
by the Traffic Team
Electric SUV used by Admin staff
Electric Patrol vehicle

10 department statistics

2025 at-a-glance
PART 1 CRIMES
Homicide
Rape
Robbery
Aggravated Assault
2024 2025 % change
Commerical Burg
Residential Burg
Theft from Vehicle
Stolen Vehicle
General Theft
0 30
41 139
73 90
207
77 911
0 32
24 120
0%
7%
-41%
-14%
64 49
161
74 686
-12%
-46%
-22%
-4%
-25%
11 5-year Comparison
2021 2022 2023 2024 2025 Average
Violent Crime 225 266 245 210 176
Property Crime 1844 1745 1271 1358 1034
Total Part 1 Crime 2069 2011 1516 1568 1210 -12%
-12%
-5%
Total Part 1 Crime 1568 1210 -23%
Property Crime
Violent Crime
Total Violent Crime 210 176 -16%
Total Property Crime 1358 1034 -24%

2025 at-a-glance
Vehicle Collision Fatalities
Pedestrian Collisions
Ped. Collision Fatalities
Bicycle Collisions
Bicycle Collision Fatalities
Traffic Citations
Traffic Warnings
-50%
15%
-50%
9%
-100%
10%
-9%
2 34
2 54
1 5508
4604
1 39
1 59
0 6061
4177
In FY 2024-25, the California Office of Traffic Safety grant funded the following traffic enforcement operations:

DUI Checkpoints
DUI Saturation Patrols
Traffic Enforcement
Distracted Driving
Traffic Safety Education
Pedestrian & Bike Enforcement
3 26
16 3
3 2
2024 2025 % change
12 TRAFFIC STATISTICS
2021 2022 2023 2024 2025
5-year Comparison
Total Traffic Collisions 399 435 430 566 528
Average
8%

2025 at-a-glance

NOISE PARTY CALLS FOR SERVICE
Year
#
of
c
alls
In 2025, the department received 1,510 calls related to noise (party calls).

Noise Citations issued
Disturbment Advisory Cards (DACs) issued
260
328
13

2025 at-a-glance
Calls for service by type
Calls for service & staffing by year
14

15 Records
&
dispatch
Records
&
dispatch
The Records and Dispatch divisions are involved with Department of Justice audits, act as the custodian of criminal records and ensure compliance with State and Federal regulations.

Staff are responsible for receiving, processing and dispatching emergency and non-emergency calls for service, public outreach, processing police reports and citations, tracking and reporting crime statistics and maintaining confidential information.

2024 2025
2025 at-a-glance
All Calls Received by Dispatch
Police Calls for Service
Total Reports Processed by Records
Total Citations Processed by Records
Public Records Requests Processed
Property & Evidence Items Booked
Discovery Orders Processed
Cases Assigned to Detectives
94,806
35,321
6,847
5,546
57 7,839
772
203
89,043
34,911
5,870
6,973
85 7,731
884
183

GENERAL DEPARTMENT STATS
Suspected Child Abuse
Reports (SCARS)
Processed 299
Cyber Tips Processed
related to Internet
Crimes Against Children
66 Digital forensics analysis
conducted (cell phones,
computers, etc.) 153
16

TECHNOLOGY
Versaterm CommunityConnect
CommunityConnect is software is designed to help public safety agencies improve public relationships and gain feedback directly from those we serve.

Text messages are sent to callers through mobile-friendly surveys. The results enable the department to keep a pulse on the quality of customer service we provide to the community.

Current Department Ratings
How would you rate
dispatch?
How satisfied are you
with the department?
How would you rate
the officer you
interacted with?
93% 92% 89%

4.67 out of 5
From 3,114 responses

4.58 out of 5
From 5,709 responses

4.44 out of 5
From 5,819 responses
Total messages sent in 2025 42,323 Survey completion rate in 2025 19.2% 17

Recruitment & Retention
In the beginning of calendar year 2025, the department’s total amount of authorized positions was 97. This included 63 sworn officers and 34 professional staff. Later in the year, after FY 2025-26 started in July, Council approved the addition of two sworn police officer positions that are partially funded by a Department of Justice COPS Hiring Grant.

Staffing Numbers
Promotions
The department made several promotions in 2025, including the promotion of three officers to sergeant and one sergeant to lieutenant. The department invests in leadership development and is proud to recognize and promote individuals into these roles.

Recruitment
In 2025 the department recruited and hired positions including dispatch, police officer, and administrative staff. Staff is continuing to evaluate recruitment strategies to ensure we use current and effective methods to reach prospective candidates. Check out our deparment recruitement page at:
18 joinslopd.org

OFFICER WELLNESS
The department’s Peer Support Team provides a way
for employees and their family members to
confidentially talk about personal and professional
problems with specially trained colleagues who
understand and want to help. The peer support team is
dedicated to creating a culture of wellness by
establishing wellness-related training that engages new officers early and also reaches senior employees at
important points in their careers.

The City contracts with TCTI to provide public safety
personnel the opportunity to seek counseling services
at no cost to the employee. The objective is to support and invest in the mental health and well-being of
Police and Fire employees.

In 2025, the department implemented an officer
wellness policy requiring annual wellness check-ins for all personnel, both sworn and civilian. These annual
evaluations are intended to support employees' mental
health and promote ongoing psychological and physical
well-being.

SLOPD Peer Support
The Counseling Team International

strategic plan
As we close out the second year of the department’s 5-Year Strategic Plan in 2025, staff continued to advance the objectives outlined in the plan throughout 2025. The chart below highlights significant progress made and reflects the department’s continued commitment to achieving the goals and objectives of the strategic plan. 5-Year Strategic Plan Goals
% Complete
Average 76%
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