Item 6g
Federal
Fees
Other:
Total $ $ $ $0.00
Issuance of the RFQ will not, by itself, obligate the City to purchase services. Once the contractor pool is established, services will be requested on an as-needed basis and funded through approved department budgets. Individual work orders will be issued based on the scope and nature of the work and will follow applicable procurement requirements, including separate procurement procedures when required for Capital Improvement Program projects or other public works efforts..
ALTERNATIVES
1. The City Council could decide not to approve the RFQ. Should the City Council pursue this alternative, the City would continue to procure electrical services through individual procurements and purchase orders, as needs arise. This would limit the City’s ability to establish consistent, competitively evaluated rates and terms that are most advantageous to the City for recurring service needs.
ATTACHMENTS
A - Draft Request for Qualifications for Electrician Services
The City of San Luis Obispo is committed to including disabled persons in all of our services, programs and activities.
Telecommunications Device for the Deaf (805) 781-7410.
Notice Requesting Qualifications (RFQ) for on-call electrical maintenance repair and operational support services
The City of San Luis Obispo is requesting statements of qualifications (SOQ) and pricing proposals from qualified electrical contractors to provide on-call electrical routine maintenance, repair, emergency response, low-voltage, and related operational support services.
All firms interested in receiving further correspondence regarding this (RFQ) will be required to complete a free registration using BidNet Direct (www.bidnetdirect.com/).
SOQ’s must be received by the City in BidNet by [DATE] when they will then be opened electronically via BidNet Direct on the proposal end date and time.
The City’s preferred method for bid submission is electronic via BidNet Direct. However, if you wish to submit a paper copy, please submit it in a sealed envelope to the Department of Finance, at 990 Palm Street, San Luis Obispo, CA, 93401, at or before 3 pm on [TBD].
Questions should be submitted electronically in BidNet, and the City will answer in BidNet. Responses and Addenda will be posted through BidNet.
Project packages and additional information may be obtained at the City’s BidNet Direct website at www.BidNetDirect.com.
For technical help with BidNet Direct please contact BidNet Direct tech support at 800-835-4603.
TABLE OF CONTENTS
A. INTRODUCTION 2
B. SCOPE OF WORK 2
C. SCHEDULE 6
D. GENERAL TERMS AND CONDITIONS 6
E. SPECIAL TERMS AND CONDITIONS 9
F. PROPOSAL CONTENT 10
REQUIRED PROPOSAL CONTENTS AND FORMS
FORM A — COST PROPOSAL AND COST SCHEDULE 12
FORM B — QUALIFICATIONS AND TECHNICAL RESPONSE 14
E. EVALUATION 15
F. REFERENCES 16
G. STATEMENT OF PAST CONTRACT DISQUALIFICATIONS 18
EXHIBIT A — FORM OF AGREEMENT
EXHIBIT B ---INSURANCE REQUIREMENTS
ATTACHMENT 1 – DATA CABLING STANDARD
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A. INTRODUCTION
The City currently obtains routine electrical maintenance, repair, and emergency services primarily through project-specific quotes and purchase orders. This process requires staff to establish contractor availability, pricing, response expectations, and commercial terms separately for each assignment.
Through this solicitation, the City intends to establish a pool of qualified electrical contractors operating under pre-established labor rates, material-markup limits, disclosed service-call minimums, travel and equipment charges, response requirements, and contract terms. The City will continue to define, and authorize individual assignments through project-specific purchase orders. Contractors may be required to submit an assignment-specific quote before authorization, depending on the anticipated cost and applicable City procurement requirements.
The resulting agreements are intended primarily for recurring operational maintenance, repairs, emergency response, troubleshooting, equipment replacement, data cabling, and small facility-support assignments.
The on-call agreements will not be used for Capital Improvement Program projects. Electrical work for those projects will be scoped and procured separately under applicable public works contracting requirements.
B. SCOPE OF WORK
The City is seeking statements of qualifications and pricing proposals from electrical contractors for on-call electrical maintenance, repair, installation incidental to routine maintenance and repair, and related operational support services at various City facilities. Contractors will provide on-call electrical maintenance and repair services and perform the requirements set forth in this RFQ in compliance with all applicable laws, regulations, policies, and procedures. The Contractor shall erect barricades, warning signs, and any other devices necessary to protect City employees, the public, and property to prevent unauthorized access to work areas. The Contractor shall remove and lawfully dispose of waste, debris, and replaced materials resulting from its work, unless the City directs otherwise.
The Contractor shall provide full-service on-call electrical maintenance and repair services to City facilities as outlined in this document. The Contractor shall provide qualified personnel capable of performing municipal electrical maintenance and repair assignments of similar scope and complexity. The Contractor shall perform each assignment in a professional and workmanlike manner, minimize disruption to City operations, preserve applicable warranties, and comply with applicable laws, codes, permits, manufacturer requirements, and accepted trade practices.
The successful Contractor’s electrical maintenance and repairs shall, at a minimum, include but not be limited to the services and specifications outlined herein. Services may include but are not limited to:
Troubleshooting and diagnostic services;
Routine and preventive electrical maintenance;
Repair or replacement of failed electrical components; Lighting, circuit, panel, control, pump, and motor work; Minor electrical modifications at occupied City facilities; Emergency electrical response;
Low-voltage data and fiber-optic cabling;
Support at treatment plants, pump stations, parking facilities, public-safety facilities, offices, and other City properties; and
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Other related electrical services authorized by the City.
The Contractor shall maintain sufficient qualified personnel, tools, equipment, and vehicles to perform authorized work during regular operating hours and to respond to approved after-hours requests.
Throughout the agreement term, the Contractor shall maintain all licenses, registrations, insurance, and permits required by applicable federal, state, and local law and by the agreement.
DATA CABLING SCOPE
In addition to electrical systems, the Contractor shall demonstrate the ability to provide data cabling services to the City, including:
- Low-voltage Ethernet indoor and outdoor plant installation, maintenance, and repair. - Fiber optic cable indoor and outdoor plant installation, maintenance, and repair.
All work must be done in compliance with the specifications laid out in Attachment 1 - Communications Cabling Standards.
TERM OF SERVICE The term of the contract will be for a period of five (5) years. The contract may be canceled or any portion thereof at any time during the term of service and such cancellations shall be effective upon giving thirty (30) days written notice. The on-call contract is not a guarantee that the City will engage the Contractor for actual work.
SERVICE AVAILABILITY The Contractor shall maintain a telephone number or other City-approved method for receiving service requests 24 hours per day, seven days per week, including holidays.
Emergency requests: The Contractor must acknowledge the request promptly and have qualified personnel respond on site within two hours, unless the City authorizes a different response time.
Urgent requests: The Contractor must acknowledge the request within one hour and advise the City of its anticipated arrival time. The requested on-site response time will ordinarily not exceed four hours.
Routine requests: The Contractor must acknowledge the request within one business day and coordinate a mutually acceptable service date with the City.
Response time begins when the City contacts the Contractor through the Contractor’s designated servicerequest telephone number or other approved contact method. The Contractor shall promptly acknowledge each emergency or urgent request and provide an estimated arrival time. The Contractor shall give priority to conditions that threaten health or safety, risk damage to City property, or materially impair essential City operations.
Routine repairs and other non-urgent assignments shall be scheduled with the City based on operational needs, personnel availability, required materials, and the authorized scope of work.
If the Contractor cannot meet a required response time, it shall immediately notify the City. The City may contact another contractor without liability or obligation to the initially contacted Contractor.
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FACILITY HOURS
Scheduled maintenance and repairs shall typically occur during regular business hours and must be coordinated with the City representative responsible for the applicable facility. The City may authorize work outside regular business hours when necessary to address an emergency, reduce disruption to City operations, or accommodate facility availability.
POTENTIAL SERVICE LOCATOINS
Standard Hours 8am – 5pm
Facility Address
Aquatics Center 900 Southwood Drive
City Hall 990 Palm Street
Water Treatment Plant 1900 Stenner Creek Road
Water Resource Recovery Facility1
1 35 Prado Road
Water Distribution Pump Stations #1 12 Highland Drive, #2 141 Bressi Place, #3 1551 Bishop Street, #4 1555 Laurel Lane, #5 3 Highland
Drive, #6 1 Miossi Road, #7 500 Prado Road
Water Distribution Reservoirs 2255 Stenner Creek Road, 1 Miossi Drive Utilities Main Office 879 Morro Street
Whale Rock Reservoir 108 E 13th Street (Cayucos)
Wastewater Collection Lift Stations #1 35 Prado Road
#2 264 Tank Farm Road
#3 206 Margarita Ave
#4 3860 South Higuera
#5 51 Foothill Blvd
#6 1625 Calle Joaquin
#7 850 Fiero Lane
#8 1055 Isabella Way
#9 175 Ventura Drive
CDD and Public Works Main Office 919 Palm Street
Public Works Corporation Yard 25 Prado Road
Parks and Recreation Office 1341 Nipomo Street
Parking Office 871 Marsh Street
Parking Garages Citywide 842 Palm Street
919 Palm Street
871 Marsh Street
Ludwick Community Center 864 Santa Rosa Street
Police Department 1042 Walnut St.
Police Department Annex 1106 Walnut
Fire Station 1 2160 Santa Barbara St.
Fire Station 2 136 North Chorro St.
1 Scope of services provided to the Water Resource Recovery Facility may include medium-voltage (12kV) systems.Only contractors possessing the qualifications, trained personnel, equipment, insurance, and safety procedures required for such work will be eligible to perform these assignments.
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Fire Station 3 1280 Laurel Lane
Fire Station 4 1395 Madonna Road
*The City owns and operates other facilities not listed above that may have periodic needs for electrical services.
EMERGENCY ON-CALL SERVICE When the City requests unscheduled emergency electrical repairs, the Contractor shall respond in accordance with the Service Availability requirements. The Contractor may charge only the emergency labor rates, travel charges, equipment rates, material costs, and markups identified in its accepted Cost Proposal or otherwise authorized in writing by the City before the work is performed.
Emergency pricing will be considered as part of the City’s evaluation of the Proposer’s overall qualifications and pricing. Rates may be adjusted only as expressly permitted by the agreement.
If a Contractor is unavailable, cannot meet the required response time, or lacks the qualifications or equipment needed for an assignment, the City may contact another contractor or use another authorized procurement method without liability or obligation to the initially contacted Contractor.
BILLABLE WORK. Before beginning an assignment, the Contractor shall provide a written quote describing the proposed work and estimated charges and shall obtain the City’s written authorization. When the cause or extent of a problem cannot be determined without an initial visit, the City may authorize a quoted diagnostic visit. The Contractor shall provide a further written quote and obtain written authorization before performing additional repair work.
The Contractor may invoice only for authorized work satisfactorily performed by qualified personnel, including authorized diagnostic work even when the problem cannot be corrected during the initial visit.
The Contractor may not invoice for unauthorized work, unnecessary repairs, or work required to correct its own deficient performance.
STAFFING, WORKMANSHIP AND QUALITY LEVEL The Contractor shall maintain a valid California C-10 Electrical Contractor license and provide sufficient qualified personnel to perform authorized work safely and professionally. Apprentices must work under the supervision required by applicable law. The Contractor is responsible for the performance of its employees and subcontractors and for the quality of all work performed under the agreement.
TOOLS AND EQUIPMENT The Contractor shall furnish and maintain all tools and equipment necessary to perform authorized work safely and properly. The City may inspect equipment used for the work and require the Contractor to remove unsafe or unsuitable equipment from service.
PARTS AND MATERIALS The Contractor shall furnish all parts and materials necessary for properly maintaining and repairing electrical systems in City facilities. Markup on parts and materials may not exceed 10% of Contractor’s cost. Invoices must identify the work performed, cost of labor, parts/materials used, parts/materials cost, and parts/materials markup cost.
INSPECTIONS AND REMEDIES Inspections may be made by the City at any time to confirm that work performed meets specifications. If corrective work is required, the City will provide a written list of items and the Contractor shall correct deficiencies as directed. If deficiencies are not corrected in a timely manner, the City may perform the work using others and deduct the cost from the Contractor's payment.
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DAMAGES The Contractor will be responsible for all damages to the facility or contents caused by Contractor, their staff or subcontractors during the performance of their duties.
SAFETY & SECURITY The Contractor and staff shall follow all established safety procedures and shall take special care not to endanger themselves and the public in any way. The Contractor is responsible for the security of all doors at the conclusion of work in each room. All exterior doors should remain locked at all times. Interior doors that are found open or unlocked shall be left in the same position/condition in which they were found.
EMERGENCY SITUATIONS For medical, fire, or public-safety emergencies occurring at a City facility, call 9- 1-1 and notify the designated City representative. Report electrical and other facility-maintenance emergencies through the City’s designated emergency contact.
PREVAILING WAGES
The City will determine the prevailing-wage and related public-works requirements applicable to each assignment. When an assignment is subject to prevailing-wage requirements, the Contractor and its subcontractors shall comply with all applicable requirements, including payment of prevailing wages, DIR registration, apprenticeship requirements, posting, recordkeeping, and certified payroll reporting.
Applicable wage determinations are available from the California Department of Industrial Relations at www.dir.ca.gov. The Contractor is responsible for identifying and paying the correct wage rate for each worker classification used to perform an applicable assignment.
The on-call agreements may be used for routine electrical maintenance, repair, emergency response, and related operational services within available budget authority. The agreements are not intended for Capital Improvement Program projects or other work that requires separate procurement under the Uniform Public Construction Cost Accounting Act, City Charter, or other applicable law. Individual work orders will be reviewed to determine the appropriate procurement method based on the scope and nature of the work.
C. SCHEDULE
Preliminary Schedule Tasks
10-21-2026 Release RFQ
11-14-2026 Questions and Answers Due
11-21-2026 Bid Closing
By 12-31-2026 Award On-Call Contracts
D. GENERAL TERMS AND CONDITIONS
PROPOSAL REQUIREMENTS
1. Requirement to Meet All Provisions. Each individual or firm submitting an SOQ (proposer) shall meet all the terms, and conditions of the Request for Qualifications (RFQ). By virtue of its proposal submittal, the Proposer acknowledges agreement with and acceptance of all provisions of the RFQ.
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2. Proposal Submittal. Each proposal must be submitted on the form(s) provided in the specifications and accompanied by any other required submittals or supplemental materials. Proposal documents shall be submitted electronically via BidNet. However, if you can’t submit electronically, please send your bid copy in a sealed envelope to the Department of Finance, City of San Luis Obispo, 990 Palm Street, San Luis Obispo, CA, 93401. To guard against premature opening, the proposal should be clearly labeled with the proposal title, project number, name of bidder, and date and time of proposal opening. No FAX submittals will be accepted.
3. Insurance Certificate. Each proposal must include a certificate of insurance showing:
a. The insurance carrier and its A.M. Best rating.
b. Scope of coverage and limits.
c. Deductibles and self-insured retention.
The purpose of this submittal is to generally assess the adequacy of the bidder’s insurance coverage during proposal evaluation. Endorsements are not required until contract award. The City’s insurance requirements are detailed in Exhibit A.
4. Cost Proposal. The Proposer must complete all applicable portions of the Cost Proposal and identify its hourly labor rates, emergency and overtime rates, equipment charges, and any other requested pricing information. Proposed rates must include all costs not separately authorized under the RFQ.
5. Proposal Withdrawal and Opening. A Proposer may withdraw its proposal, without prejudice prior to the time specified for the proposal opening, by submitting a written request to the City’s Procurement contact, or following the applicable BidNet withdrawal procedure. No proposal received after the time specified or at any place other than that stated in the “Notice Inviting Bids/Requesting Proposals” will be considered.
6. Submittal of One Proposal Only. No individual or business entity may submit more than one proposal, as the prime contractor, except an alternative proposal when specifically requested; However, an individual or business entity that has submitted a subcontractor quote may participate in more than one response.
7. Communications. All timely requests for information submitted through BidNet in writing will receive a written response from the City. Telephone communication with City staff are not encouraged but will be permitted. However, any such oral communication shall not be binding on the City. Only written responses and addenda issued through BidNet Direct are binding. Proposers must not rely on oral statements or informal communications concerning the RFQ.
CONTRACT AWARD AND EXECUTION
8. Proposal Retention and Award. The City reserves the right to retain all responses for a period of 60 days for examination and comparison. The City also reserves the right to waive non-substantial irregularities in any response, to reject any or all proposals, to reject or delete one part of a proposal and accept the other, except to the extent that proposals are qualified by specific limitations, and to request clarification or additional information when determined appropriate by the City. See the “special terms and conditions” in Section C of these specifications for proposal evaluation and contract award criteria.
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9. Competency and Responsibility of Proposer. The City reserves full discretion to determine the competence and responsibility, professionally and/or financially, of proposers. Proposers will provide, in a timely manner, all information that the City deems necessary to make such a decision.
The City may consider the proposer’s professional qualifications, relevant experience, proposed personnel, available resources, financial capacity, references, past performance, and ability to satisfy the requirements of the Professional Services Agreement.
10. Contract Requirement. The Proposer to whom award is made (Contractor) shall execute a written contract with the City within the period specified in the City’s notice of award. The contract shall be substantially in the form of the Professional Services Agreement attached as Exhibit A.
CONTRACT PERFORMANCE
11. The City’s contract terms and conditions that Contractor will be expected to execute and be bound by are attached hereto as Exhibit A
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E. SPECIAL TERMS AND CONDITIONS
1. Contract Award. The contract will be awarded to the most qualified Proposer that, in the City’s sole discretion, submits the proposal or statement of qualifications determined to be most advantageous to the City under the evaluation and selection criteria stated in this Solicitation. Award will not be based solely on the lowest proposed price.
2. Ability to Perform.
In the event that the successful proposer is experiencing a labor action at the time of contract award (or if its suppliers or subcontractors are experiencing such a labor action), the City reserves the right to declare said proposer is no longer the most qualified, responsive proposer and to accept the next acceptable proposal from a proposer that is not experiencing a labor action, and to declare it to be the most qualified, responsive proposer.
3. Failure to Accept Contract.
The following will occur if the proposer to whom the award is made (Contractor) fails to enter into the contract: the award will be annulled; ; and an award may be made to the next highest ranked, responsible, responsive proposer who shall fulfill every stipulation as if it were the party to whom the first award was made.
4. Contract Term. The anticipated term of the on-call contract is for five-years with a one-year extension option, unless earlier terminated or extended in accordance with the Agreement. The Contractor shall complete the services within the schedule established in the executed Agreement.
5. Additional Services. The Contractor shall not perform services outside the approved scope of work without prior written authorization from the City. Any additional services must be authorized in accordance with the amendment provisions of the Professional Services Agreement.
6. Submittal of References. Each proposer shall submit a statement of qualifications and references on the form provided in the RFP package.
7. Contractor Invoices. Contractor shall submit invoices in accordance with the Professional Services Agreement. Unless otherwise specified, invoices shall be submitted monthly and shall identify the services performed, applicable tasks or deliverables, personnel and hours when relevant, reimbursable expenses, current charges, and total compensation billed to date on the project.
8. Non-Exclusive Contract. The City reserves the right to obtain the same or similar professional services from other Contractors during the term of the Agreement. Unless expressly stated otherwise, the Agreement does not guarantee the Contractor a minimum amount of work.
9. Start and Completion of Work. Work on on-call projects shall begin after the City provides authorization to proceed. The Contractor shall perform and complete the services in accordance with the schedule established in the quote/proposal in accordance with the City’s contract terms in Exhibit A.
11. Statement of Contract Disqualifications. Each proposer shall submit a statement regarding any past governmental agency bidding or contract disqualifications on the form provided in the RFP package.
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PROPOSAL CONTENT
FORM A: Cost Proposal including completed cost schedule and equipment rate schedule FORM B: Qualifications and Technical Response, including references and the Statement of Past Contract Disqualifications
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FORM A: Cost Proposal to Furnish Electrical On-Call Services
COST PROPOSAL FOR ON-CALL ELECTRICAL SERVICES
______________________________________________________ (“Proposer”) submits this Cost Proposal to the City of San Luis Obispo (“City”) in response to the Request for Qualifications for On-Call Electrical Maintenance, Repair, and Operational Support Services.
1. Cost Proposal
Proposer offers to provide on-call electrical services for the rates stated in the attached Cost Schedule. The initial rates will remain firm for the first year of the agreement. Thereafter, the Contractor may request one annual rate adjustment not exceeding the applicable annual percentage change in the Consumer Price Index for All Urban Consumers for the Los Angeles-Long Beach-Anaheim area. Any rate adjustment is subject to the City’s written approval and will not apply retroactively.
2. Proposer’s Representations
By signing and submitting this Cost Proposal, the Proposer represents that:
Proposer has thoroughly examined the RFQ documents and has requested clarification of any identified ambiguity or discrepancy.
Proposer is fully qualified to perform the services described in the RFQ. Proposer has carefully reviewed its response and is responsible for the accuracy and completeness of its submitted information and pricing.
This Cost Proposal is submitted on _______________________________.
Signature of Authorized Proposer Representative
Name/Title
Company Name
CSLB License No. & Expiration
California Department of Industrial Relations
Registration Number and Expiration Date
Address
Email
Phone
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FORM A
COST SCHEDULE
Contractor Name: _______________________________
Disclose every proposed charge in this Cost Schedule or an attached equipment rate schedule. Enter “$0” or “Included” when a charge is included in a labor rate. Charges not disclosed here or otherwise expressly authorized by the City will not be payable.
Item # Item Hourly Rate Comments
1 Apprentice – Regular Time
2 Journeyman Electrician — Regular Time
3 Manager or Superintendent — Regular Time
4 Other Labor Classification — Regular Time
5 Apprentice – Overtime
6 Other Labor Classification — Overtime
7 Apprentice — Saturday Sunday or Holiday
8 Journeyman Electrician — Saturday Sunday
or Holiday
9 Apprentice — Emergency Response
10 Journeyman Electrician — Emergency
Response
11 Equipment Charges See schedule Attach equipment
rate schedule
12 Service-Call or Minimum Charge State minimum
billable hours and
when applicable
13 Travel or Mobilization Charge State when
applicable; enter $0
if included in labor
rates
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14 Journeyman Electrician - Overtime
Parts/Materials may be marked up no more than 10% of the documented cost By signing below, the Proposer confirms that:
The rates in the Cost Schedule are fully burdened except for separately identified and authorized charges.
The Cost Proposal will remain valid for 60 days after the response deadline. The Proposer acknowledges receipt of the following RFQ addenda:
Contractor Name: _____________________
Authorized Representative: _____________________
Signature: _____________________
Date: _____________________
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FORM B
Response to Technical Questions
On-Call Electrician Services RFP
Please answer the following:
Experience and Qualifications (20pts)
1. How many years has your company been in business under its present business name?
2. Describe your previous experience providing electrical on-call services at public agencies and/or private companies.
3. Describe your firm’s experience providing routine maintenance, troubleshooting, emergency response, and electrical repairs at occupied facilities.
4. Describe your firm’s capabilities and experience with the following, identifying any services that would be performed by a subcontractor:
a. Low-voltage data cabling and fiber-optic systems;
b. Pumps, motors, controls, and treatment-plant electrical systems; and c. Medium-voltage systems up to 12 kV.
Complete the three reference forms included with this RFQ. References should demonstrate successful performance of on-call electrical services of similar scope and complexity within the last five years. The City may contact the listed references and consider information concerning work quality, responsiveness, cost control, communication, and contract performance.
Qualifications of Staff to be assigned (10pts)
1. Attach an organizational chart for your company, or the local office that would service this contract.
2. For the local office to serve this list the following:
a. The number and classifications of personnel available to perform City assignments. b. Names and qualifications of key staff including years in the industry and with your firm. c. Applicable licenses, certifications, and specialized training held by key staff.
3. Briefly describe your employee training program and requirements.
Service Delivery, Communication Quality Control and Safety
1. Describe the systems your company uses to communicate between supervisors, office staff and field staff.
Also describe the systems you use to assign, track, and evaluate work performed by your employees.
2. Describe how your firm will provide 24-hour emergency availability and mees the response times
3. Describe your existing customer service program, how you would monitor customer satisfaction, how complaints will be resolved and your plan for quality control.
3. Describe your communication plan to ensure proper communication between your representative and the City’s representative.
4. Describe in detail your Safety Program.
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E. EVALUATION
The City will evaluate responses using the following criteria Evaluation Criteria Points
Experience and Qualifications 20
Past Performance and References 15
Qualifications of Assigned Staff 10
Service Delivery Communication Quality & Safety 15
Cost Proposal 40
Cost Proposal (40 points) will be evaluated based on the overall competitiveness of the proposed charges, including regular, overtime, and emergency labor rates; service-call minimums; travel or mobilization charges; and equipment rates. No single hourly rate will determine the Cost Proposal score.
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F. REFERENCES
Number of years engaged in providing the services included within the scope of the specifications under the present business name: .
Provide three references for contracts completed or currently being performed within the last five years that demonstrate the Proposer’s ability to provide on-call electrical services of similar scope and complexity.
Attach additional pages if necessary.
Reference No. 1:
Agency Name
Contact Name
Telephone & Email
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
Reference No. 2:
Agency Name
Contact Name
Telephone & Email
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
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Reference No. 3
Agency Name
Contact Name
Telephone & Email
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
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G. 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 q No q
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
ON-CALL AGREEMENT FOR ELECTRICIAN SERVICES
THIS AGREEMENT is made and entered into in the City of San Luis Obispo on _____________ by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and [CONTRACTOR’S NAME IN CAPITAL LETTERS], hereinafter referred to as Contractor.
W I T N E S S E T H
WHEREAS, on [DATE], requested proposals for On-Call Electrician Services WHEREAS, pursuant to said request, Contractor submitted a proposal that was accepted by City for said services.
NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows:
1. Contract Term for On-Call Service Contracts. The term of this agreement shall be from the date this Agreement is made and entered, as first written above. The City will contract services identified in this specification for five years.
2. Cost Increases for On-Call Service Contracts and Contract Extension. Initial labor rates shall remain firm for the first year of the agreement. Thereafter, the Contractor may request one labor-rate adjustment per year, not exceeding the applicable annual percentage change in the Consumer Price Index for All Urban Consumers, All Items, Los Angeles-Long Beach-Anaheim. An adjustment requires the City’s written approval, applies prospectively only, and does not apply to previously authorized work.
The term of the contract may be extended by mutual consent for an additional year after the five-year term. During this extended period, labor rates may be increased to reflect increased labor rates and overhead provided the City is notified and those increases are incorporated into the extension.
3. Work Delays. Should the Contractor be obstructed or delayed in the work required to be done hereunder by changes in the work or by any default, act, or omission of the City, or by strikes, fire, earthquake, or any other Act of God, or by the inability to obtain materials, equipment, or labor due to federal government restrictions arising out of defense or war programs, then the time of completion may, at the City's sole option, be extended for such periods as may be agreed upon by the City and the Contractor. In the event that there is insufficient time to grant such extensions prior to the completion date of the contract, the City may, at the time of acceptance of the work, waive liquidated damages that may have accrued for failure to complete on time, due to any of the above, after hearing evidence as to the reasons for such delay, and making a finding as to the causes of same.
4. Termination for Cause. If, during the term of the contract, the City determines that the Contractor is not faithfully abiding by any term or condition contained herein, the City may notify the Contractor in writing of such defect or failure to perform. This notice must give the Contractor a 10 (ten) calendar day notice of time thereafter in which to perform said work or cure the deficiency.
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If the Contractor has not performed the work or cured the deficiency within the ten days specified in the notice, such shall constitute a breach of the contract and the City may terminate the contract immediately by written notice to the Contractor to said effect. Thereafter, neither party shall have any further duties, obligations, responsibilities, or rights under the contract except, however, any and all obligations of the Contractor's surety shall remain in full force and effect, and shall not be extinguished, reduced, or in any manner waived by the termination thereof.
In said event, the Contractor shall be entitled to the reasonable value of its services performed from the beginning date in which the breach occurs up to the day it received the City's Notice of Termination, minus any offset from such payment representing the City's damages from such breach. "Reasonable value" includes fees or charges for goods or services as of the last milestone or task satisfactorily delivered or completed by the Contractor as may be set forth in the Agreement payment schedule; compensation for any other work, services or goods performed or provided by the Contractor shall be based solely on the City's assessment of the value of the work-in-progress in completing the overall workscope.
The City reserves the right to delay any such payment until completion or confirmed abandonment of the project, as may be determined in the City's sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall the Contractor be entitled to receive in excess of the compensation quoted in its proposal.
5. Termination for Convenience. The City also reserves the right to terminate the contract for convenience, providing a 30 (thirty) calendar day notice, at any time upon a determination by the Director that termination of the contract is in the best interest of the City. Upon termination notice from the City, Contractor must, unless otherwise directed, cease work and follow the City’s directions as to work in progress and finished goods. For termination of any services pursuant to this Agreement, the City’s liability will be the lesser of a reasonable price for the services rendered prior to termination.
6. Ability to Perform. The Contractor warrants that it possesses, or has arranged through subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out and complete the work hereunder in compliance with any and all applicable federal, state, county, city, and special district laws, ordinances, and regulations.
7. Sub-contract Provisions. No portion of the work pertinent to this contract shall be subcontracted without written authorization by the City, except that which is expressly identified in the Contractor’s proposal. Any substitution of sub-Contractors must be approved in writing by the City. For any subcontract for services in excess of $25,000, the subcontract shall contain all provisions of this agreement.
8. Contract Assignment. The Contractor shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest, or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City.
9. Inspection. The Contractor shall furnish City with every reasonable opportunity for City to ascertain that the services of the Contractor are being performed in accordance with the requirements and intentions of this contract. All work done and all materials furnished, if any, shall be subject to the City's inspection and approval. The inspection of such work shall not relieve Contractor of any of its obligations to fulfill its contract requirements.
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10. Record Retention and Audit. For the purpose of determining compliance with various laws and regulations as well as performance of the contract, the Contractor and sub-Contractors shall maintain all books, documents, papers, accounting records and other evidence pertaining to the performance of the contract, including but not limited to the cost of administering the contract. Materials shall be made available at their respective offices at all reasonable times during the contract period and for three years from the date of final payment under the contract. Authorized representatives of the City shall have the option of inspecting and/or auditing all records. For Federally funded projects, access to records shall also include authorized representatives of the State and Federal government. Copies shall be furnished if requested.
11. Conflict of Interest. The Contractor shall disclose any financial, business, or other relationship with the City that may have an impact upon the outcome of this contract, or any ensuing City construction project. The Contractor shall also list current clients who may have a financial interest in the outcome of this contract, or any ensuing City construction project which will follow. The Contractor staff shall provide a Conflict of Interest Statement where determined necessary by the City.
The Contractor covenants that it presently has no interest, and shall not acquire any interest—direct, indirect or otherwise—that would conflict in any manner or degree with the performance of the work hereunder. The Contractor further covenants that, in the performance of this work, no sub-Contractor or person having such an interest shall be employed. The Contractor certifies that no one who has or will have any financial interest in performing this work is an officer or employee of the City. It is hereby expressly agreed that, in the performance of the work hereunder, the Contractor shall at all times be deemed an independent Contractor and not an agent or employee of the City.
12. Rebates, Kickbacks or Other Unlawful Consideration. The Contractor warrants that this contract was not obtained or secured through rebates, kickbacks or other unlawful consideration, either promised or paid to any City employee. For breach or violation of the warranty, the City shall have the right in its discretion; to terminate the contract without liability; to pay only for the value of the work actually performed; to deduct from the contract price; or otherwise recover the full amount of such rebate, kickback or other unlawful consideration.
13. Covenant Against Contingent Fees. The Contractor warrants by execution of this contract that no person or selling agency has been employed, or retained, to solicit or secure this contract upon an agreement or understanding, for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the Contractor for the purpose of securing business. For breach or violation of this warranty, the City has the right to annul this contract without liability; pay only for the value of the work actually performed, or in its discretion, to deduct from the contract price or consideration, or otherwise recover the full amount of such commission, percentage, brokerage, or contingent fee.
14. Compliance with Laws and Wage Rates. The Contractor shall keep itself fully informed of and shall observe and comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances, regulations and adopted codes during its performance of the work. This includes compliance with prevailing wage rates and their payment in accordance with California Labor Code.
For purposed of this paragraph, “construction” includes work performed during the design and preconstruction phases of construction, including but not limited to, inspection and land surveying work.
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15. Payment of Taxes. The contract prices shall include full compensation for all taxes that the Contractor is required to pay within the scope of Contractor’s performance of the contracted services.
16. Permits, Licenses and Filing Fees. The Contractor shall procure all permits and licenses, pay all charges and fees, and file all notices as they pertain to the completion of the Contractor’s work. The City will pay all application fees for permits required for the completion of the project including building and regulatory permit application fees. Contractor will provide a 10 day notice for the City to issue a check.
17. Safety Provisions. The Contractor shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety.
18. Public and Employee Safety. Whenever the Contractor's operations create a condition hazardous to the public or City employees, it shall, at its expense and without cost to the City, furnish, erect and maintain such fences, temporary railings, barricades, lights, signs and other devices and take such other protective measures as are necessary to prevent accidents or damage or injury to the public and employees.
19. Preservation of City Property. The Contractor shall provide and install suitable safeguards, approved by the City, to protect City property from injury or damage. If City property is injured or damaged resulting from the Contractor's operations, it shall be replaced or restored at the Contractor's expense.
The facilities shall be replaced or restored to a condition as good as when the Contractor began work.
20. Immigration Act of 1986. The Contractor warrants on behalf of itself and all sub-Contractors engaged for the performance of this work that only persons authorized to work in the United States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work hereunder.
21. Contractor Non-Discrimination. In the award of subcontracts or in performance of this work, the Contractor agrees that it will not engage in, nor permit such sub-Contractors as it may employ, to engage in discrimination in employment of persons on any basis prohibited by State or Federal law.
22. 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. Contractors 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 Contractor and all sub-Contractors named in its proposal shall bear sole responsibility for proposal preparation errors resulting from any misstatements or omissions in the 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 specifications will be as determined by law, any patent ambiguity or defect shall give rise to a duty of Contractor to inquire prior to proposal submittal. Failure to so inquire shall cause any such ambiguity or defect to be construed against the Contractor. An ambiguity or defect shall be considered patent if it is of such a nature that the Contractor, 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 Contractor or subContractors to notify City in writing of specification defects or ambiguities prior to proposal submittal shall waive any right to assert said defects or ambiguities subsequent to submittal of the proposal.
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To the extent that these specifications constitute performance specifications, the City shall not be liable for costs incurred by the successful Contractor to achieve the project’s objective or standard beyond the amounts provided therefor 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 specifications, or any other matter whatsoever, Contractor shall immediately notify the City in writing, and the Contractor and all sub-Contractors 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 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.
23. Hold Harmless and Indemnification.
(a) Non-design, non-construction Professional Services: To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8), Contractor 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 Contractor’s performance or Contractor’s failure to perform its obligations under this Agreement or out of the operations conducted by Contractor, including the City’s active or passive negligence, except for such loss or damage arising from the sole negligence or willful misconduct of the City. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Contractor’s performance of this Agreement, the Contractor shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims.
(b) Non-design, construction Professional Services: To the extent the Scope of Services involve a “construction contract” as that phrase is used in Civil Code Section 2783, this paragraph shall apply in place of paragraph A. To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8), Contractor 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 Contractor’s performance or Contractor’s failure to perform its obligations under this Agreement or out of the operations conducted by Contractor, except for such loss or damage arising from the active negligence, sole negligence or willful misconduct of the City. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Contractor’s performance of this Agreement, the Contractor shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. (c) Design Professional Services: In the event Contractor is a “design professional”, and the Scope of Services require Contractor to provide “design professional services” as those phrases are used in Civil Code Section 2782.8, this paragraph shall apply in place of paragraphs A or B. To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and
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2782.8) Contractor shall indemnify, defend and hold harmless the City and its elected officials, officers, employees, volunteers and agents (“City Indemnitees”), from and against all claims, damages, injuries, losses, and expenses including costs, attorney fees, expert Contractor and expert witness fees arising out of, pertaining to or relating to, the negligence, recklessness or willful misconduct of Contractor, except to the extent caused by the sole negligence, active negligence or willful misconduct of the City. Negligence, recklessness or willful misconduct of any subcontractor employed by Contractor shall be conclusively deemed to be the negligence, recklessness or willful misconduct of Contractor unless adequately corrected by Contractor. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Contractor’s performance of this Agreement, the Contractor shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. In no event shall the cost to defend charged to Contractor under this paragraph exceed Contractor’s proportionate percentage of fault. However, notwithstanding the previous sentence, in the event one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, Contractor shall meet and confer with other parties regarding unpaid defense costs.
(d) The review, acceptance or approval of the Contractor’s work or work product by any indemnified party shall not affect, relieve or reduce the Contractor’s indemnification or defense obligations. This Section survives completion of the services or the termination of this contract.
The provisions of this Section are not limited by and do not affect the provisions of this contract relating to insurance. Contractor’s indemnification obligations under this section extend to any claims arising out of or related to the negligence, recklessness, or willful misconduct of any subContractors/ subcontractors.
24. Non-Exclusive Contract. The City reserves the right to contract for the services listed in this proposal from other Contractors during the contract term.
25. Standards. Documents shall conform to City Standards and City furnished templates shall be used.
26. Contractor Endorsement. Technical reports, plans and specifications shall be stamped and signed by the Contractor where required.
27. Required Deliverable Products and Revisions. The Contractor will be required to provide documents addressing all elements of the workscope. Plans shall be prepared using City’s standardized title blocks and coversheets. Draft plans may be submitted for review using either the full 24x36, 22x34, or a reduced 11x17 format. Contractor shall ensure that drawings and notes are clearly legible if using the reduced format. Specifications and bid documents shall conform to standard City formats unless authorized. The City’s current Standard Specifications and Engineering Standards must be incorporated where applicable.
City staff will review any documents or materials provided by the Contractor and, where necessary, the Contractor will respond to staff comments and make such changes as deemed appropriate. Submittals shall include the previous marked up submittal (returned to the Contractor) to assist in the second review. Changes shall be made as requested or a notation made as to why the change is not appropriate. 2 copies of the draft preliminary reports, technical studies and 50% plans and estimate 1 copy of the final preliminary reports, technical studies plus markups
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3 copies of the 90% plans, specifications and estimate plus 50% markups 1 copy of the 100% plans, specifications and estimate plus 90% markups 1 copy of the final plans, specifications and estimates plus 100% markups 1 copy of the final record drawings after construction
Draft reports and plan submittals shall be submitted as paper copies.
Final documents shall be submitted as camera-ready original, unbound, each page printed on only one side, including any original graphics in place and scaled to size, ready for reproduction AND one electronic copy submitted in Adobe Acrobat format including all original stamps and signatures.
In the event the City will be compiling the final specifications, incorporating the Contractor’s work, the final specifications will also be required to be submitted in Microsoft Word format.
In the event the City will be completing the Record Drawings, the final plans will also be required to be submitted in AutoCAD.
Electronic files shall be submitted on CD and all files must be compatible with the Microsoft operating system. Each CD must be clearly labeled and have a printed copy of the directory. Files may be emailed to the City in lieu of putting them on CD.
28. Ownership of Materials. Upon completion of all work under this contract, ownership and title to all reports, documents, plans (including PDFs and AutoCAD files), specifications, and estimates produced as part of this contract will automatically be vested in the city and no further agreement will be necessary to transfer ownership to the City. The Contractor shall furnish the City all necessary copies of data needed to complete the review and approval process.
It is understood and agreed that all calculations, drawings and specifications, whether in hard copy or machine readable form, are intended for one-time use in the construction of the project for which this contract has been entered into.
The Contractor is not liable for claims, liabilities, or losses arising out of, or connected with the modification, or misuse by the City of the machine-readable information and data provided by the Contractor under this agreement. Further, the Contractor is not liable for claims, liabilities, or losses arising out of, or connected with any use by City of the project documentation on other projects, except such use as may be authorized in writing by the Contractor.
29. 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 City and shall not be made available to any individual or organization by the Contractor without the prior written approval of the City.
The Contractor shall not issue any news release or public relations item of any nature, whatsoever, regarding work performed or to be performed under this contract without prior review of the contents thereof by the City and receipt of the City’s written permission.
30. 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
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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.
31. Attendance at Meetings and Hearings. As part of the workscope and included in the contract price is attendance by the Contractor at up to 1 public meeting to present and discuss its findings and recommendations. Contractor shall attend as many "working" meetings with staff as necessary in performing workscope tasks.
32. Requests for Review. The Contractor shall respond to all requests for submittal review or contractor RFI’s within two weeks of receipt of the information from the City.
33. Project Proposal Submittal. Upon completion of the project scoping meeting, the Contractor shall submit a proposed workscope, compensation and schedule within 10 working days. The cost proposal shall include all costs including miscellaneous direct cost items.
34. Contractor Invoices. The Contractor shall submit invoices monthly for authorized work performed.
Each invoice shall identify the applicable purchase order or task order, service location, service date, and work performed. Charges shall be itemized by labor classification, personnel or employee identifier, hours and applicable rates; materials and markup; equipment; and any other authorized charges. When an invoice covers more than one distinct task or system, charges shall be identified separately for each. The Contractor shall provide supporting documentation for material charges exceeding $500, subcontractor charges, and other charges upon City request. For City fiscal-year auditing, invoices for work performed through June 30 shall be submitted by the second full week of July.
35. Payment. The City will pay the Contractor for services authorized by a purchase order or written task order and satisfactorily performed. Compensation shall be based on the labor rates and other charges in the Contractor’s accepted Cost Proposal, subject to the terms of this Agreement. Labor rates are fully burdened and include wages, benefits, overhead, and profit. Materials, equipment, travel, and other charges are payable only to the extent identified in the accepted Cost Proposal or otherwise authorized by the City in writing.
36. The Contractor shall not exceed the amount authorized for an assignment or perform additional billable work without the City’s prior written approval. The Contractor shall correct deficient work at no additional cost to the City. Payment is due within 30 days after the City receives and approves a properly itemized invoice and accepts the services performed.
37. Payment Terms. The City's payment terms are 30 days from the receipt and approval by the City of an original invoice and acceptance by the City of the materials, supplies, equipment or services provided by the Contractor (Net 30).
38. Resolution of Disputes. Any dispute, other than audit, concerning a question of fact arising under this contract that is not disposed of by agreement shall be decided by a committee consisting of the City’s Project Manager and the City Director of Public Works, who may consider written or verbal information submitted by the Contractor. Not later than thirty days after completion of all deliverables necessary to complete the plans, specifications and estimate, the Contractor may request review by the City Council of unresolved claims or disputes, other than audit, in accordance with Chapter 1.20 Appeals Procedure of the Municipal Code.
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Any dispute concerning a question of fact arising under an audit of this contract that is not disposed of by agreement, shall be reviewed by the City’s Finance Director. Not later than 30 days after issuance of the final audit report, the Contractor may request a review by the City’s Chief Fiscal Officer of unresolved audit issues. The request for review must be submitted in writing.
Neither the pendency of a dispute, nor its consideration by the City will excuse the Contractor from full and timely performance in accordance with the terms of this contract.
39. Disadvantaged Business Enterprise (DBE) Use for Federally Funded Projects. This agreement is subject to Title 49, Part 26 Code of Federal Regulations entitled “Participation by Disadvantaged Business Enterprises in Department of Transportation Financial Assistance Programs” when project work is for a federally funded project. In order to ensure the State Department of Transportation achieves its federally mandated statewide overall DBE goal, the City encourages the participation of DBEs as defined in 49 CFR 26 in the performance of this agreement. The City will make a determination on a project by project basis for reasonably expected DBE participation to compete for the sub-consulting opportunities in this agreement. The Contractor is responsible to be fully informed regarding the requirements of 49 CFR, Part 26.
The Contractor shall notify the City of any changes to its anticipated DBE participation on federally funded projects, maintain records of DBE usage and complete and submit to the City the final report of DBE utilization prior to receiving final payment. Records shall show the name and business address of each DBE and the total dollar amount actually paid to each.
The Contractorshall pay all sub-Contractors within 10 calendar days from receipt of each payment made to the Contractor by the City.
The Contractor shall carry out applicable requirements of Title 49 CFR 26 in the award and administration of US DOT assisted agreements. Failure by the Contractor to carry out these requirements is a material breach of this agreement, which may result in the termination of this agreement or such other remedy as the City deems appropriate.
40. Agreement Parties.
City: [Project Manager]
City of San Luis Obispo
919 Palm Street
San Luis Obispo, CA 93401
Contractor:
All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as shown above.
41. Incorporation by Reference. City Request for Qualifications and Contractor's proposal dated [DATE], is attached to and made a part of this Agreement. Should there be any conflict between terms set forth in the City Request for Qualifications for Electrician Services No [_____] and Contractor’s proposal dated [DATE], the terms in this agreement and City Request for Qualifications Specification No. [___]will govern.
42. Amendments. Any amendment, modification or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the City Engineer.
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43. Working Out of Scope. If, at any time during the project, the Contractor is directed to do work by persons other than the City Project Manager and the Contractor believes that the work is outside of the scope of the original contract, the Contractor shall inform the Project Manager immediately. If the Project Manager and Contractor both agree that the work is outside of the project scope and is necessary to the successful completion of the project, then a fee will be established for such work based on Contractor's hourly billing rates or a lump sum price agreed upon between the City and the Contractor. Any extra work performed by Contractor without prior written approval from the City Project Manager shall be at Contractor's own expense.
44. 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. For and in consideration of the payments and agreements hereinbefore mentioned to be made and performed by City, Contractor agrees with City to do everything required by this Agreement, the said specification and incorporated documents.
45. 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.
46. Authority to Execute Agreement. Both City and Contractor 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 OF SAN LUIS OBISPO: CONTRACTOR:
___________________________________
Name of Company
___________________________________
APPROVED AS TO FORM:
___________________________________
City Attorney
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EXHIBIT A - CONTRACTOR BID PROPOSAL
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INSURANCE REQUIREMENTS
Contractors
Without limiting Contractor’s indemnification of City, and prior to commencement of work, Contractor shall obtain, provide, and maintain at its own expense during the term of this Agreement, policies of insurance of the types and amounts described below and in a form that is satisfactory to City.
General liability insurance. Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $5,000,000 per occurrence, $10,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.
Automobile liability insurance. Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned, or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.
Umbrella or excess liability insurance. [If required to meet higher limits]. Contractor may obtain and maintain an umbrella liability insurance policy with limits that will provide bodily injury, personal injury, and property damage liability coverage, including commercial general liability, automobile liability, and employer’s liability. Such policy or policies shall include the following terms and conditions:
• A drop-down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason, other than bankruptcy or insolvency of said primary insurer;
• “Pay on behalf of” wording as opposed to “reimbursement”; • Concurrency of effective dates with primary policies.
Excess insurance. Should Contractor obtain and maintain an excess liability policy, such policy shall be excess over commercial general liability, automobile liability, and employer’s liability policies. Such policy or policies shall include wording that the excess liability policy follows the terms and conditions of the underlying policies.
Workers’ compensation insurance. Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its officers, agents, employees, and volunteers Notice of cancellation. Contractor agrees to oblige its insurance agent or broker and insurers to provide the City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
If any of the Contractor’s insurers are unwilling to provide such notice, then Contractor shall have the responsibility of notifying the City immediately in the event of Contractor’s failure to renew any of the required insurance coverages or insurer’s cancellation or non-renewal.
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Additional insured status. General liability, automobile liability, and umbrella/excess liability insurance policies shall provide or be endorsed to provide that City and its officers, officials, employees, agents, and volunteers shall be additional insureds under such policies.
Prohibition of undisclosed coverage limitations. None of the coverages required herein shall comply with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing.
Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions.
Pass through clause. Contractor agrees to ensure that its subContractors, subcontractors, and any other party who is brought onto or involved in the project/service by Contractor (hereinafter collectively “subcontractor”), provide the same minimum insurance coverage and endorsements required of Contractor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. However, in the event Contractor’s subcontractor cannot comply with this requirement, which proof must be submitted to the City, Contractor shall be required to ensure that its subcontractor provide and maintain insurance coverage and endorsements sufficient to the specific risk of exposure involved with subcontractor’s scope of work and services, with limits less than required of the Contractor, but in all other terms consistent with the Contractor’s requirements under this agreement. This provision does not relieve the Contractor of its contractual obligations under the agreement and/or limit its liability to the amount of insurance coverage provided by its subcontractors. This provision is intended solely to provide Contractor with the ability to utilize a subcontractor who may be otherwise qualified to perform the work or services but may not carry the same insurance limits as required of the Contractor under this agreement given the limited scope of work or services provided by the subcontractor. Contractor agrees that upon request, all agreements with subcontractors, and others engaged in the project, will be submitted to City for review.
City’s right to revise specifications. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Contractor ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Contractor, the City and Contractor may renegotiate Contractor’s compensation.
Self-insured retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible, or require proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention through confirmation from the underwriter.
Timely notice of claims. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.
Additional insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work.
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Verification of Coverage. Contractor shall furnish the City with a certificate of insurance showing maintenance of the required insurance coverage, as well as endorsements effecting general liability coverage.. All endorsements are to be received and approved by the City before work commences.
Item 6h
Department: Utilities
Cost Center: 6003
For Agenda of: 10/20/2026
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Public Works & Utilities Director
Prepared By: Shawna Scott, Assistant Director of Utilities SUBJECT: AUTHORIZE A CHANGE ORDER FOR CONTINUED CONTRACT
WATER TREATMENT PLANT SUPERVISOR/OPERATOR SUPPORT
RECOMMENDATION
1. Authorize a $50,001 amendment to the Water Talent contract for temporary certified T5 operator coverage at the Water Treatment Plant, increasing the total contract amount to $200,000, and authorize the City Manager to execute the amendment; and
2. Authorize the City Manager to execute subsequent extensions or amendments necessary to maintain Water Treatment Plant operational coverage, provided sufficient budget is available.
POLICY CONTEXT
The City’s Water Treatment Plant (WTP) is regulated by the California State Water Resources Control Board, Division of Drinking Water (DDW), and is classified as a Treatment Grade 5 (T5) facility. DDW regulations require that a certified T5 operator provide responsible charge and operational oversight of the facility.
The City’s Purchasing Policy requires that contracts for professional services exceeding $149,999 receive City Council authorization. Staff are requesting authorization to issue a change order in the amount of $50,001 resulting in a total contract amount of $200,000; therefore, City Council consideration and approval is required.
DISCUSSION
Background
Regulatory Requirements and Operator Certification
The WTP is classified as a Treatment Grade 5 (T5) facility, which is the highest level of treatment complexity recognized by the State. DDW regulations require that a certified T5 operator provide responsible charge and operational oversight of the facility. While a T5 operator is not required to be physically present at all times, one must be continuously available to support operations, direct process control decisions, and ensure compliance with regulatory requirements. Failure to maintain appropriate certified oversight would
Item 6h
place the City out of compliance with State regulations and could result in enforcement actions, operational limitations, or risks to water quality.
Critical Nature of Water Treatment Operations
The City currently relies on its WTP as the sole source of treated drinking water supply.
The WTP operates continuously, 17-20 hours per day, 365 days per year, and is a critical and essential public health facility. Interruptions to treatment operations exceeding approximately 24 hours would significantly impact the City’s ability to deliver potable water, maintain fire protection, and meet basic public health requirements.
Current Staffing Condition and Recruitment Status
In April 2026, the City’s previous Water Treatment Plant Supervisor (a T5 Operator) provided notice of their separation from the city, necessitating initiation of a recruitment to fill the supervisory position. The pool of T5-certified operators in California is extremely limited, and as a result, recruitment for T5-certified positions is highly competitive and typically requires extended timelines, incentives, and higher-than average recruitment costs. Based on industry conditions and recent recruitment efforts across the state, staff anticipated that filling this position would take several months following posting of the recruitment, resulting in a gap in regulatory coverage by a T5 Operator.
To bridge the gap between the departure of the prior WTP Supervisor and the hiring of a permanent replacement, staff contracted with Water Talent, a firm specializing in providing certified water treatment operators, including T5-certified personnel. This approach ensured uninterrupted compliance with DDW requirements while allowing the City sufficient time to complete a competitive recruitment process for a permanent hire.
As discussed in the Fiscal Analysis section of this report, funding for this contract position is allocated in the 2026-27 Budget.
City of San Luis Obispo Municipal Code Section 3.24.060 states that bid procedures “may be dispensed with, at the discretion and judgment of the purchasing authority as to the best interests of the city” if the purchase meets specified criteria. Therefore, a sole source professional services agreement for a contract T5-certified Water Treatment Plant Supervisor was approved by the Finance Director and City Manager, based on the findings that the action was “reasonably necessary for the preservation or protection of public peace, health, safety or welfare of persons or property” (Municipal Code Section
3.24.060.F). Execution of this agreement and retainment of contract T5 Water Treatment Plant Supervisor services through Water Talent was justified pursuant to these findings and has ensured that the City remained in regulatory compliance with DDW and maintained the preservation and protection of public health and safety related to the City’s drinking water.
The extended recruitment for a permanent T5 Water Treatment Plant Supervisor is culminating in scheduled interviews in October. It is anticipated that if the recruitment and interview process are successful, the selected individual may require time to complete standard employment processes, and depending on the individual selected, relocate to the San Luis Obispo area. As a result, staff anticipate the continuance of the existing contract agreement, and associated need for the City Council’s approval of a change
Item 6h
order to allow for expenditures beyond the $149,999 purchasing threshold allowed for City Manager approval. If the current recruitment process is not successful, extension of the Water Talent contract would be required to maintain regulatory compliance and ensure safe treatment of the city’s drinking water.
Previous Council or Advisory Body Action
On June 2, 2026, the Council unanimously adopted Resolution No. 11657, approving the FY 2026-27 Budget and appropriating the allocations presented in the Budget Supplement. The adopted budget included a Utilities Branch Significant Operating Budget Change (SOBC) of $215,000 for temporary contract staffing to provide certified T5 operator coverage at the WTP while the City recruited a permanent WTP Supervisor.
Public Engagement
The public had an opportunity to provide comment during the June 2026 budget adoption hearing, which included funding for temporary WTP contract services. The current request to issue a change order for the contract agreement and delegate authority to the City Manager for future contract amendments (subject to adopted purchasing policies) is included on the published City Council agenda, providing additional opportunities for public comment before and during the Council meeting.
CONCURRENCE
DDW has provided the City with concurrence that the contract services is an acceptable means for meeting WTP operational and regulatory needs. The Finance and Human Resources Departments were consulted and concur with the approach to the immediate staffing need and current recruitment for a permanent hire.
ENVIRONMENTAL REVIEW
The proposed action is not a project under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378(b)(5), because it involves organizational or administrative activities of governments that do not result in direct or indirect physical changes in the environment.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2026-27
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
Water Fund $200,0001 $200,000 $0 $0
Total $200,000 $200,000 $0 $0
Note: As described below, the approved budget includes $215,000, of which $200,000 is identified for contract services and $15,000 is identified for recruitment incentives. Therefore, $200,000 is shown here.
Item 6h
The proposed contract amendment requires no additional budget appropriation. On June 2, 2026, following a public hearing, the City Council approved the FY 2026-27 Budget, including $215,000 for temporary Water Treatment Plant contract services and recruitment incentives. Of this amount, $200,000 was allocated for temporary contract staffing to provide certified T5 operator coverage while the City recruits a permanent Water Treatment Plant Supervisor. The remaining $15,000 is intended for hiring incentives associated with the permanent position. As of September 28, 2026, approximately $94,600 has been expended on the Water Talent contract.
Staff request authorization to execute a $50,001 contract amendment, increasing the total contract amount to $200,000. The amendment is fully funded through the existing Water Fund appropriation. Under Section 202B of the City's Purchasing Policy, professional services contracts with a cumulative value of $150,000 or more require City Council approval. Accordingly, staff request that Council authorize the proposed amendment and delegate authority to the City Manager to execute subsequent contract extensions or amendments, subject to available budget. If subsequent contract extensions or amendments are necessary and require an increase in the contracted amount over $200,000, the associated funding would be accommodated from salary savings due to the vacant Water Treatment Plant Supervisor position and savings in other operating budgets (i.e., chemicals, electricity). This flexibility will allow the Water Treatment program to maintain necessary operational coverage and meet regulatory requirements throughout the recruitment process.
ALTERNATIVE
1. Deny the contract extension request. The City Council could deny staff’s request to issue a change order and authorize City Manager approval of potential contract amendments. This action would result in delays or gaps in regulatory coverage, and would pose risk to public health and regulatory compliance, as DDW requires oversight of the City’s WTP by a T5 Certified Operator.
ATTACHMENTS
No attachments.
Item 6i
Department: Human Resources
Cost Center: 3001
For Agenda of: 10/20/2026
Placement: Consent
Estimated Time: N/A
FROM: Nickole Domini, Human Resources Director
Prepared By: Kate Auslen, Risk and Benefits Manager
SUBJECT: CONSOLIDATION OF DEFERRED COMPENSATION AND DEFINED
CONTRIBUTION RETIREMENT PLANS TO MISSIONSQUARE
RECOMMENDATION
1. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, Authorizing the Consolidation of the City’s 457(b) Plans Record-Kept by Nationwide and Empower, and the 401(a) Plan Record-Kept by PARS/John Hancock, to ICMA Retirement Corporation Governmental Profit Sharing Plan & Trust (d/b/a MissionSquare), and Authorizing the City Manager to Execute All Necessary Documents for the Plans” (Attachment A)
2. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, Authorizing the Transition of the City's Defined Contribution Plan for Eligible Employees from Public Agency Retirement Services (PARS) to ICMA Retirement Corporation Governmental Profit Sharing Plan & Trust (d/b/a MissionSquare).” (Attachment B)
3. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, Designating the City Manager as Plan Administrator for Deferred Compensation and Defined Contribution Retirement Plans.” (Attachment C)
POLICY CONTEXT
The City of San Luis Obispo (“City”) has offered its employees voluntary participation in deferred compensation retirement plans (“Plans”) since 1979 (Resolution No. 3875).
Additional plan options have been added over the years, and the City has provided oversight of the Plans through annual plan reviews. In alignment with the Council adopted Compensation Philosophy (Resolution No. 10248 – 2011 Series), the City is committed to attracting and retaining well qualified employees by offering competitive compensation.
As part of the Human Resources Department’s work plan, enhancements to the City’s benefits program offerings are being pursued.
Per Council’s direction at the October 21, 2025, City Council meeting, a Request for Proposals (RFP) for a Deferred Compensation Recordkeeper was completed, and ICMA Retirement Corporation Governmental Profit Sharing Plan & Trust (d/b/a “MissionSquare”) was selected as the recommended recordkeeper.
Item 6i
DISCUSSION
Background
In the first quarter of the 2026 calendar year, the City issued an RFP for Plan Consultative and Fiduciary Services and Shuster Advisory Group, a HUB International Company, (“Shuster”) was selected. Working with Shuster, the City issued an RFP requesting proposals for recordkeeping and administrative services for its 457(b), 401(a), Retiree Health Savings (“RHS”) and Omnibus Budget Reconciliation Act (“OBRA”) 457(b) plans with a goal of consolidating the plans to a single recordkeeper.
RFP responses were received from five (5) leading public sector retirement plan recordkeepers. A detailed analysis was completed by Shuster and presented to the Deferred Compensation Employee Advisory Committee which was made up of representatives from each of the City’s six bargaining units. The Committee heard presentations from three finalists and provided input to the City’s Fiduciary Committee, which voted unanimously to select MissionSquare as the City’s future deferred compensation recordkeeper. During this process, staff determined that it is in the best interests of all participants to keep the OBRA plan for temporary employees with Nationwide, due to the higher proposed fee structure if MissionSquare were to administer this plan. Therefore, staff is recommending termination of the agreement with Nationwide for the regular and limited-term contract employee 457(b), but keeping the agreement with Nationwide for the temporary employee OBRA 457(b) plan.
Fiduciary Duty
As the plan sponsor, the City has certain fiduciary duties and responsibilities under State law (California State Constitution, Article XVI Section 17 and California Government Code §53215–53224). These duties and responsibilities focus on ensuring that the operation and investment of the public retirement plan is for the exclusive purpose of providing benefits to participants and beneficiaries. Fiduciary responsibilities include:
Investing the assets of the plan;
Administering the plan; and,
Engaging in a prudent process for making all decisions related to the operation of the plan, including decisions related to the plan's investments and related services.
The City has the right to contract with third-party service providers to fulfill the City’s responsibilities for the plans. The City currently utilizes MissionSquare, Nationwide, Empower, and PARS (with John Hancock as its third-party administrator) to provide recordkeeping and administration services for its 457(b), 401(a), RHS, and OBRA 457(b) plans. These recordkeepers are not fiduciaries to the plans. A Fiduciary Committee was formally established in August 2026 to ensure that the City is meeting its Fiduciary Responsibilities. Current members of the committee include the Director of Human
Item 6i
Resources, the Director of Finance, the Deputy Director of Finance / City Controller, the Risk and Benefits Manager, and the Human Resources Analyst – Benefits.
The City is not obligated to stay in the current arrangement with any provider or recordkeeper. To the extent that cost savings for administering the plans can be achieved, as well as the improvements in the investments available, plan participants are likely to experience an increase in their retirement savings accounts.
Benefits of Consolidation
The proposal from MissionSquare, as well as the preliminary terms of the agreement negotiated by Shuster, are expected to result in a 92% reduction in recordkeeping costs for the 457(b) and 401(a) plans, as well as a savings of 70% in total plan administrative fees. The consolidation will include implementing a comprehensive, low-cost, and higher quality investment menu for the plans. Additionally, the consolidation will simplify services and decision making for plan participants as well as administration of the plans for staff.
By aggregating plan assets and implementing the new investment menu, the City will:
1) Reduce plan and investment fees;
2) Enhance the investment options; and
3) Provide participants with a competitive fixed interest rate.
Staff recommends the City Council approve the consolidation of the 457(b), 401(a) and RHS plans to a single recordkeeping platform with MissionSquare. Two draft Resolutions are included in this report as PARS requires its own separate Resolution with specific language included to terminate the agreement (Attachments A and B). Because the consolidation dates are subject to change, the resolutions include authorization to make administrative amendments to revise the effective dates as needed.
Next Steps
Following Council approval, staff, Shuster, and MissionSquare will enter into a revised service agreement and begin the conversion process with a targeted completion in March 2027. Per Resolution 11603, the City Council has delegated authority to the City Manager as the Plan Administrator, who will execute the revised agreement. An updated Resolution has been provided for clarification that the City Manager is also authorized to execute Plan amendments (Attachment C).
Shuster is prepared to provide comprehensive conversion support services, including a detailed review of plan design and plan provisions, along with ongoing consultation throughout the transition. In partnership with MissionSquare, Shuster will also deliver participant communication and education, offered both on-site and through virtual meetings for current and former employees. After the conversion process is complete, Shuster will continue to assist the City with consolidating the plans and performing its fiduciary responsibilities with respect to applicable IRS requirements and California law.
Shuster and MissionSquare will also support the City in providing ongoing employee
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education, with the goal of increasing plan participation and strengthening employees’ financial and retirement planning knowledge.
Previous Council or Advisory Body Action
October 21, 2025 City Council Meeting – Authorization to Advertise RFP’s for Deferred Compensation Consultant and Deferred Compensation Recordkeeper.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: No Budget Year: 2026-27
Funding Identified: Yes
Fiscal Analysis:
Shuster’s consulting services as well as MissionSquare’s recordkeeping services are at no cost to the City, because the fees are paid out of participant plan assets. However, outside counsel specializing in employee benefits has been obtained to provide legal oversight during the conversion process. This is estimated to cost approximately $15,000 and existing funding has been identified for this one-time cost.
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $15,000 $15,000 $0 $0
State
Federal
Fees
Other:
Total $15,000 $15,000 $0 $0
ALTERNATIVES
1. Council could decide not to approve the termination of agreements with PARS, Nationwide, and Empower for its 457(b) and 401(a) plans. Should Council pursue this option, plan assets will not be consolidated to MissionSquare, and plan participants will not receive the anticipated benefits as described above.
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ATTACHMENTS
A - Draft Resolution authorizing consolidation of the City’s 457(b) and 401(a) plans from Nationwide, Empower, and PARS to MissionSquare and authorizing the City Manager or designee to execute the same
B - Draft Resolution authorizing the transition of the City’s 401(a) plan from PARS to MissionSquare
C - Draft Resolution designating the City Manager as Plan Administrator
R ______
RESOLUTION NO. _____ (2026 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AUTHORIZING THE CONSOLIDATION OF THE CITY’S 457(B) PLANS RECORD-KEPT BY NATIONWIDE AND
EMPOWER, AND THE 401(A) PLAN RECORD-KEPT BY PARS/JOHN
HANCOCK, TO ICMA RETIREMENT CORPORATION GOVERNMENTAL
PROFIT-SHARING PLAN & TRUST (D/B/A MISSIONSQUARE), AND
AUTHORIZING THE CITY MANAGER TO EXECUTE ALL NECESSARY
DOCUMENTS FOR THE PLANS
WHEREAS, the City of San Luis Obispo (“CITY”) offers its employees participation in deferred compensation retirement plans, also known as defined contribution plans (“Plans(s)”), under Section 457(b) and 401(a) of the Internal Revenue Code and the California Government Code; and
WHEREAS, ICMA Retirement Corporation Governmental Profit Sharing Plan & Trust, (d/b/a “MissionSquare”), Nationwide, and Empower currently provide recordkeeping and administrative services for the 457(b) and OBRA 457(b) Plans, and MissionSquare and PARS/John Hancock provide recordkeeping and administrative services for the 401(a) Plan; and
WHEREAS, to protect the interests of plan participants, maintain fiduciary standards, and to ensure efficient administration, the City Council has formally designated the City Manager to serve as the Plan Administrator for the CITY’s deferred compensation and defined contribution plans; and
WHEREAS, the City Council has authorized the Plan Administrator to execute all Plan related documents on behalf of the CITY, assign or delegate administrative duties as appropriate, and take whatever additional actions are necessary for the CITY to participate in the Plans and comply with relevant regulations.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:
SECTION 1. The City Council hereby approves the termination of service agreements with Nationwide and Empower for the 457(b) Plan and PARS/John Hancock for the 401(a) plan and implementation of a new consolidated service agreement with MissionSquare with an estimated effective date of April 15, 2027.
SECTION 2. The OBRA 457(b) plan agreement with Nationwide will remain in effect but may be revised or restated by the City Manager as Plan Administrator, or their designee.
SECTION 3. The City Manager is hereby authorized to execute, on behalf of the CITY and Plan participants, a recordkeeping and administrative services agreement with
Resolution No. _____ (2026 Series) Page 2
R ______
MissionSquare, and any other such agreements and contracts to administer the program, including Plan amendments.
SECTION 4. The Council hereby authorizes administrative amendments to this resolution regarding the effective implementation date.
Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _______________ 2026. ___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
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
R ______
RESOLUTION NO. _____ (2026 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AUTHORIZING THE TRANSITION OF THE
CITY'S DEFINED CONTRIBUTION PLAN FOR PLAN PARTICIPANTS
FROM PUBLIC AGENCY RETIREMENT SERVICES (PARS) TO THE
ICMA RETIREMENT CORPORATION GOVERNMENTAL PROFIT
SHARING PLAN & TRUST (D/B/A MISSIONSQUARE)
WHEREAS, the City of San Luis Obispo (“CITY”) offers its employees participation in deferred compensation retirement plans, also known as defined contribution plans (“Plan(s)”), qualifying under relevant sections of the Internal Revenue Code and the California Government Code; and
WHEREAS, the CITY currently participates in the City of San Luis Obispo Public Agency Retirement System (PARS) Defined Contribution Plan, where PARS/John Hancock provides recordkeeping and administrative services for the CITY’s 401(a) Plan; and
WHEREAS, the CITY has selected ICMA Retirement Corporation Governmental Profit Sharing Plan & Trust (d/b/a “MissionSquare”) as the new provider and wishes to terminate all services, administration, and investment contracts of Public Agency Retirement Services (PARS) as Trust Administrator, U.S. Bank, N.A. as Trustee, and John Hancock Retirement Services as Custodian/Record Keeper; and WHEREAS, the CITY desires that its defined contribution retirement plan be administered by MissionSquare and that the funds held in such plan be invested in VantageTrust, a trust established by public employers for the collective investment of funds held under their retirement and deferred compensation plans.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:
SECTION 1. The City hereby restates and establishes a 401(a) defined contribution retirement plan (the “Plan”) in the form of the ICMA Retirement Corporation Governmental Profit-Sharing Plan & Trust, pursuant to the specific provisions of the Adoption Agreement.
SECTION 2. The Plan shall be maintained for the exclusive benefit of Plan participants and their beneficiaries.
SECTION 3. The City hereby authorizes the use of the Declaration of Trust of VantageTrust, previously adopted by Resolution 8666 (and formerly titled Declaration of Trust of ICMA Retirement Trust) intending this authorization to be operative with respect to any retirement or deferred compensation plan subsequently established by the City, if the assets of the plan are to be invested in VantageTrust.
Resolution No. _____ (2026 Series) Page 2
R ______
SECTION 4. The City hereby agrees to serve as trustee under the Plan and to invest funds held under the Plan in VantageTrust.
SECTION 5. The City Manager shall be the coordinator for the Plan; shall receive reports, notices, etc., from ICMA Retirement Corporation or VantageTrust; shall cast, on behalf of the CITY, any required votes under VantageTrust; may delegate any administrative duties relating to the Plan to appropriate departments.
SECTION 6. The CITY hereby authorizes the City Manager to execute all necessary agreements with ICMA Retirement Corporation (d/b/a MissionSquare) incidental to the administration of the Plan.
SECTION 7. The City of San Luis Obispo PARS Defined Contribution Plan is hereby replaced with the City of San Luis Obispo 401(a) Defined Contribution Plan administered by MissionSquare.
SECTION 8. The Council hereby authorizes the liquidation of Plan assets on or around April 13, 2027, and the transfer of Plan assets to MissionSquare/VantageTrust, on or around April 15, 2027.
SECTION 9. Upon the complete and successful transfer of all assets to MissionSquare/VantageTrust, PARS is hereby removed as Trust Administrator, U.S.
Bank, N.A. is hereby removed as Trustee, and John Hancock Retirement Services is hereby removed as Custodian/Record Keeper of the City of San Luis Obispo PARS 401(a) Defined Contribution Plan and any accounts and agreements associated with the Trust Administrator, Trustee, and Custodian/Recordkeeper shall be terminated.
SECTION 10. The Council hereby authorizes administrative amendments to this resolution regarding the date of liquidation of Plan assets and date of transfer of Plan assets.
Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _______________ 2026. ___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Resolution No. _____ (2026 Series) Page 3
R ______
Teresa Purrington
City Clerk
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
R ______
RESOLUTION NO. _____ (2026 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, DESIGNATING THE CITY MANAGER AS PLAN
ADMINISTRATOR FOR DEFERRED COMPENSATION AND DEFINED
CONTRIBUTION PLANS
WHEREAS, the City of San Luis Obispo (“CITY”) offers its employees participation in deferred compensation and defined contribution retirement plans, (“Plan(s)”), qualifying under relevant sections of the Internal Revenue Code and the California Government Code;
WHEREAS, the Plans currently provide that (i) CITY (through the City’s governing body) or (ii) a committee or another person designated by the City will be the administrator and responsible for the administration, assets and investments of the Plans; WHEREAS, currently, the City Council is the administrator and bears the fiduciary responsibilities for the administration, assets, and investments of the Plans; WHEREAS, recent developments in the governmental deferred compensation and defined contribution marketplace have highlighted the importance of clearly identifying oversight and accountability for the City’s retirement plans; and WHEREAS, in order to protect the interests of plan participants, maintain fiduciary standards, and ensure efficient administration, staff recommends that the City Council formally designate a Plan Administrator for the City’s deferred compensation and defined contribution plans;
WHEREAS, the City deems it to be in the best interests of the City and the Plans’ participants to designate the City Manager as administrator of the Plans.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:
SECTION 1. For any Plans under contract with the CITY, the City Manager, and any City staff they may designate to assist in that role, is designated as the administrator of the Plans (“Plan Administrator”), with responsibility for the administration, assets and investments of the Plans.
SECTION 2. The Plan Administrator is hereby authorized to execute all Plan related documents on behalf of the CITY, including, but not limited to, any Plan Amendments, assign or delegate administrative duties as appropriate and take whatever additional actions are necessary for the CITY to administer the Plans and comply with relevant regulations.
Resolution No. _____ (2026 Series) Page 2
R ______
SECTION 3. This resolution hereby rescinds and replaces Resolution No. 11603 (2025 Series).
Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _______________ 2026. ___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
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
Item 6j
Department: Police
Cost Center: 8001
For Agenda of: 10/20/2026
Placement: Consent
Estimated Time: N/A
FROM: Rick Scott, Police Chief
Prepared By: Brian Amoroso, Deputy Police Chief
SUBJECT: TEMPORARY DISPATCHER INCENTIVE PROGRAM
RECOMMENDATION
1. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving a Side Letter to the July 1, 2023 to June 30, 2027 Memorandum of Understanding between the City of San Luis Obispo and the San Luis Obispo Police Staff Officers’ Association.”
2. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving a Side Letter to the July 1, 2024 through June 30, 2027, Memorandum of Understanding between the City of San Luis Obispo and the San Luis Obispo Police Officers’ Association.”
POLICY CONTEXT
Staff received direction from City Council in closed session to initiate the meet and confer process, in accordance with the City’s Employer-Employee Relations Resolution (Resolution No. 6620, 1989 Series), regarding a proposed temporary dispatcher incentive program intended to support the Police Department in maintaining critical staffing levels within the Public Safety Communications Center.
DISCUSSION
Background
The Public Safety Communications Center handles all incoming Police, Fire, and Medical emergency and non-emergency calls for service and operates 24 hours a day, 7 days a week, with a minimum of two dispatchers per shift.
The Police Department is experiencing a critically low staffing level due to a combination of factors, including retirements, employees leaving for positions at other agencies, ongoing recruitment and hiring challenges, and extended approved leaves of absence.
Effective November 2026, the department is projected to have only five of eleven fully independent working dispatchers, representing 45% of the authorized headcount, along
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with two working supervisors at full staffing. Two recently hired dispatchers have entered the training program and are not included in the active staffing percentage noted above.
Additional candidates are in the hiring pipeline; however, they remain several months away from starting a training program that typically spans six months or longer. In addition, the recruiting and onboarding process relies on experienced dispatchers to train new hires, reducing their availability for regular call-taking duties and increasing overall staffing demands needed to maintain service levels.
Addressing Staff Burnout and Center Stabilization Needs Existing dispatchers have been heroic in their dedication to work extra shifts, but exhaustion and burnout is occurring, as time-off has been severely reduced with voluntary and forced overtime. Several dispatchers have had conversations with the Communications Lieutenant that the current workload is unsustainable and could result in more attrition if the department does not provide relief in some form.
In an effort to reduce burnout and retain the current dispatchers, the department has identified two temporary incentives for Council’s consideration.
1. Incentivizing Non-Public Safety Dispatchers to Perform Dispatch Duties The department is actively training Police Community Service Officers (CSO’s) and will soon begin training Police Records Clerk’s and the Lead Police Records Clerk to provide relief to the remaining dispatchers in an effort to prevent burnout. Given their institutional knowledge and radio experience, they can be trained to an adequate level to work in the dispatch center in about 6-8 weeks. Once trained, these employees may be adjusted to work in dispatch during their normal shift or fill an overtime shift on a day off.
In recognition of their willingness to perform the function of a dispatcher in this critical time, the department recommends providing a temporary pay incentive of
5.26% per pay period to those employees who complete the difficult and intensive training program, regardless of whether they work their normal shift or a shift in dispatch, until such time the Chief of Police determines that the staffing crisis has passed and the communications center can properly function with its existing personnel.
2. Retention Stipends for Public Safety Dispatchers and Public Safety Dispatch Supervisors
The department recognizes the exhaustive work that is being performed by Public Safety Dispatchers and Public Safety Dispatch Supervisors, both in their regular shifts and volunteer and forced overtime. There is concern that existing dispatchers have become exhausted and could look for work elsewhere, further impacting the critical staffing level. One manner in which overtime shifts could be reduced is if dispatcher vacancies due to vacations were less frequent.
Item 6j
The department recommends creating temporary appreciation/retention stipends for dispatchers and dispatch supervisors to incentivize those employees who work through this difficult time. The recommended incentive for Council’s consideration is outlined below:
Dispatchers and Dispatch Supervisors will qualify for a $600 per pay period stipend if they work all their scheduled shifts in a pay period. Dispatchers and Dispatch Supervisors will qualify for an additional $400 per pay period stipend if they work all their scheduled shifts in a pay period AND work at least two 8-hour overtime shifts in the pay period.
Staff recommends that the appreciation/retention stipends remain until such time the Chief of Police determines that the staffing crisis has passed and the communications center can properly function with its existing personnel.
The department currently projects that staffing levels will remain critically low until at least mid-January 2027. To ensure continued operational stability, staff is requesting authority to extend these temporary incentives, if necessary, through the duration of the current Police Officers’ Association (“POA”) and Police Staff Officers’ Association (“SLOPSOA”) Memoranda of Understanding (“MOU”), which both expire on June 30, 2027. Following Council approval, the temporary incentive program is scheduled to take effect on October 22, 2026, which is the first full pay period after approval.
Previous Council or Advisory Body Action
Council provided direction to City negotiators in closed session.
Public Engagement
This report is on the consent agenda for October 20, 2026. The agenda and report will be posted in advance of the meeting, and the public will have an opportunity to provide feedback during public comment in advance of the Council voting on the consent agenda.
CONCURRENCE
The City reached a tentative agreement with POA and SLOPSOA, pending City Council approval.
The Police Department has worked with the Human Resources, Finance, and Information Technology Departments on developing this program including the implementation of the temporary incentives.
ENVIRONMENTAL REVIEW
California Environmental Quality Act (CEQA) does not apply to the recommended action in this report because the action does not constitute a project under CEQA Guidelines Section 15378.
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FISCAL IMPACT
Budgeted: No Budget Year: 2026-27
Funding Identified: Yes
Fiscal Analysis:
The temporary incentives will result in a one-time cost in fiscal year 2026-27. Cost estimates are based on a four-month active period for these incentives; however, these estimates could expand beyond four months if staffing levels remain critically low. The proposed incentives will increase the overtime rate; however, they will not affect CalPERS retirement benefits, as neither incentive qualifies as reportable special compensation.
Total cost estimates of the incentive programs equal $89,715, with cost offsets including savings from vacant positions and reduced overtime projected to be $66,006. Final fiscal impact costs are estimated to be $23,709. The Police Department expects to absorb these costs in other salary savings realized throughout the remainder of the fiscal year.
Additionally, there is a one-time cost of approximately $3,000 to configure the City’s payroll system for these temporary incentives. This expense will be covered by the Police Department’s operational budget. No additional funding is being requested at this time.
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $92,715 $92,715 $0 $0
State
Federal
Fees
Other:
Total $92,715 $92,715 $0 $0
ALTERNATIVES
Council could decide to not approve the temporary dispatcher incentive program. Staffing levels would not change but this could increase the likelihood of continued leave being used, forced overtime and could result in additional dispatcher attrition.
ATTACHMENTS
A – Draft Resolution approving a Side Letter to the July 1, 2023 to June 30, 2027 MOU between the City and SLOPSOA
B – Exhibit “A” to the Draft Resolution – SLOPSOA Side Letter
Item 6j
C – Draft Resolution approving a Side Letter to the July 1, 2024 to June 30, 2027 MOU between the City and POA
D – Exhibit “A” to the Draft Resolution – POA Side Letter
R ______
RESOLUTION NO. _____ (2026 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING A SIDE LETTER TO THE JULY 1, 2023, THROUGH JUNE 30, 2027, MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF SAN LUIS OBISPO AND
THE SAN LUIS OBISPO POLICE STAFF OFFICERS’ ASSOCIATION
WHEREAS, on July 11, 2023, the City Council adopted Resolution #11433 (2023 Series) ratifying the 2023-2027 Memorandum of Understanding between the City of San Luis Obispo (City) and The San Luis Police Staff Officers’ Association (SLOPSOA); and WHEREAS, the Public Safety Communications Center operates 24 hours a day, 7 days a week, with an authorized budgeted staffing level of eleven Public Safety Dispatchers and two Dispatch Supervisors, but currently faces a critically low staffing level; and
WHEREAS, the Center's staffing shortage has created an unsustainable workload for existing personnel; and
WHEREAS, exhaustion and burnout among current dispatchers threaten further attrition and compromise the center's long-term stability, necessitating implementation of temporary relief and retention incentives.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:
SECTION 1. The City Council of the City of San Luis Obispo authorizes the implementation of temporary retention incentives to mitigate burnout and curb further attrition.
SECTION 2. The Side Letter to the Memorandum of Understanding between the City and SLOPSOA, attached hereto as Exhibit “A” and incorporated herein by this reference, is hereby approved by the Council. All other terms and conditions of the MOU remain as previously approved.
SECTION 3. The City Clerk shall file and furnish a copy of this Resolution to Bryce Loll, President of SLOPSOA, and Nickole Domini, Director of Human Resources.
SECTION 4. Amendments to employee benefits for SLOPOA do 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:
Resolution No. _____ (2026 Series) Page 2
R ______
The foregoing resolution was adopted this _____ day of _______________ 2026. ___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
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
SIDE LETTER TO THE JULY 1, 2023 – JUNE 30, 2027, MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF SAN LUIS OBISPO AND
THE SAN LUIS OBISPO POLICE STAFF OFFICERS’ ASSOCIATION
The City of San Luis Obispo (hereinafter the “City”) and the San Luis Obispo Police Staff Officers’ Association (SLOPSOA) (hereinafter the “Union”), jointly referred to as the “Parties”, agree to the listed terms and conditions set forth in this Side Letter, effective on the first day of the pay period following Council approval, which is expected to occur on October 22, 2026. Except as modified by this Side Letter, all existing terms and conditions of the Memorandum of Understanding (MOU) shall remain unchanged. This side letter is as enforceable as if it were contained within the MOU.
New Article 35 – Communications Center/Public Safety
Dispatch Supervisor Temporary Incentive:
Temporary Public Safety Dispatch Supervisor Retention Incentive Pay
35.1 Public Safety Dispatch Supervisors qualify for $600 per pay period if they work all their scheduled shifts in a pay period.
Public Safety Dispatch Supervisors qualify for an additional $400 per pay period if they work all their scheduled shifts in a pay period and work at least two 8-hour overtime shifts in the same pay period.
This special pay is included in the regular rate of pay for purposes of calculating overtime.
This temporary special pay is not reportable to CalPERS as special compensation.
35.2 The temporary pay incentive will remain in effect until the Police Chief determines that the staffing crisis in the Communications Center has ended and the Center can adequately operate with its existing personnel. In any case, the temporary incentive will end no later than June 30, 2027. The Union agrees to waive the ability to meet and confer over the Police Chief’s decision to terminate the temporary incentive.
This Side Letter shall be effective following Council approval. All terms and conditions of The San Luis Obispo Police Staff Officers’ Association Memorandum of Understanding not specifically modified herein shall remain in effect for the term of the agreement as specified above.
Docusign Envelope ID: C7DE6C4E-4CB2-833D-8162-04D8D4D50231
CITY OF SAN LUIS OBISPO THE SAN LUIS OBISPO POLICE
STAFF OFFICERS’ ASSOCIATION
Rick Scott,
Police Chief
Bryce Loll,
SLOPSOA President
Whitney McDonald,
City Manager
Caleb Kemp,
SLOPSOA Vice President
Nickole Domini,
Director of Human Resources
Docusign Envelope ID: C7DE6C4E-4CB2-833D-8162-04D8D4D50231 9/30/2026 | 1:58 PM PDT
9/30/2026 | 12:25 PM PDT 9/30/2026 | 2:49 PM PDT
9/30/2026 | 2:01 PM PDT 10/2/2026 | 5:01 PM PDT
R ______
RESOLUTION NO. _____ (2026 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING A SIDE LETTER TO THE JULY 1, 2024, THROUGH JUNE 30, 2027, MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF SAN LUIS OBISPO AND
THE SAN LUIS OBISPO POLICE OFFICERS’ ASSOCIATION
WHEREAS, on July 2, 2024, the City Council adopted Resolution #11505 (2024 Series) ratifying the 2024-2027 Memorandum of Understanding between the City of San Luis Obispo (City) and The San Luis Police Officers’ Association (SLOPOA); and WHEREAS, the Public Safety Communications Center operates 24 hours a day, 7 days a week, with an authorized budgeted staffing level of eleven Public Safety Dispatchers and two Dispatch Supervisors, but currently faces a critically low staffing level; and
WHEREAS, the Center's staffing shortage has created an unsustainable workload for existing personnel; and
WHEREAS, exhaustion and burnout among current dispatchers threaten further attrition and compromise the center's long-term stability, necessitating implementation of temporary relief and retention incentives.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:
SECTION 1. The City Council of the City of San Luis Obispo authorizes the implementation of temporary retention and staffing relief incentives to mitigate burnout and curb further attrition.
SECTION 2. The Side Letter to the Memorandum of Understanding between the City and SLOPOA, attached hereto as Exhibit “A” and incorporated herein by this reference, is hereby approved by the Council. All other terms and conditions of the MOU remain as previously approved.
SECTION 3. The City Clerk shall file and furnish a copy of this Resolution to Sean Jessen, President of SLOPOA, and Nickole Domini, Director of Human Resources.
SECTION 4. Amendments to employee benefits for SLOPOA do 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:
Resolution No. _____ (2026 Series) Page 2
R ______
The foregoing resolution was adopted this _____ day of _______________ 2026. ___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
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
SIDE LETTER TO THE JULY 1, 2024 – JUNE 30, 2027, MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF SAN LUIS OBISPO AND
THE SAN LUIS OBISPO POLICE OFFICERS’ ASSOCIATION
The City of San Luis Obispo (hereinafter the “City”) and the San Luis Obispo Police Officers’ Association (SLOPOA) (hereinafter the “Union”), jointly referred to as the “Parties”, agree to the listed terms and conditions set forth in this Side Letter, effective on the first day of the pay period following Council approval, which is expected to occur on October 22, 2026. Except as modified by this Side Letter, all existing terms and conditions of the Memorandum of Understanding (MOU) shall remain unchanged. This side letter is as enforceable as if it were contained within the MOU.
New Article 48 – Communications Center/Public Safety Dispatch Temporary Incentives:
48.1 Temporary Dispatch Duty Pay
Lead Police Records Clerks, Police Community Service Officers, and Police Records Clerks I-II who complete the City’s dispatch training program, regardless of whether they work their normal shift or a shift in dispatch, will be eligible for a 5.26% pay incentive of base pay per pay period beginning the first full pay period following the completion of their training.
This special pay is included in the regular rate of pay for purposes of calculating overtime.
This temporary special pay is not reportable to CalPERS as special compensation.
48.2 Temporary Public Safety Dispatcher Retention Incentive Pay Public Safety Dispatchers qualify for $600 per pay period if they work all their scheduled shifts in a pay period.
Public Safety Dispatchers qualify for an additional $400 per pay period if they work all their scheduled shifts in a pay period and work at least two 8-hour overtime shifts in the same pay period.
This special pay is included in the regular rate of pay for purposes of calculating overtime.
This temporary special pay is not reportable to CalPERS as special compensation.
48.3 These temporary pay incentives will remain in effect until the Police Chief determines that the staffing crisis in the Communications Center has ended and the Center can adequately operate with its existing personnel. The Police Chief may choose to end one temporary incentive before the other. In any case, the temporary incentives will end no later than June 30, 2027. The Union agrees to waive the ability to meet and confer over the Police Chief’s decision to terminate the temporary incentives.
Docusign Envelope ID: 6F678968-4351-81C0-807D-91CE81EDA8E6
This Side Letter shall be effective following Council approval. All terms and conditions of The San Luis Obispo Police Officers’ Association Memorandum of Understanding not specifically modified herein shall remain in effect for the term of the agreement as specified above.
CITY OF SAN LUIS OBISPO THE SAN LUIS OBISPO
POLICE OFFICERS’ ASSOCIATION
Rick Scott,
Police Chief
Sean Jessen,
POA President
Whitney McDonald,
City Manager
Jeff Koznek,
POA Vice President
Nickole Domini,
Director of Human Resources
Docusign Envelope ID: 6F678968-4351-81C0-807D-91CE81EDA8E6 9/28/2026 | 1:19 PM PDT
9/28/2026 | 10:31 AM PDT
9/28/2026 | 2:52 PM PDT
9/30/2026 | 12:25 AM PDT
10/2/2026 | 6:02 PM PDT
Item 7a
Department: 3
Cost Center: 208-1006
For Agenda of: 10/20/2026
Placement: Public Hearing
Estimated Time: 20 minutes
FROM: Greg Hermann, Deputy City Manager
Prepared By: Jacqui Clark-Charlesworth, Tourism & Community Promotions Manager Laura Fiedler, Economic Development & Tourism Manager
SUBJECT: ANNUAL PUBLIC HEARING FOR THE TOURISM BUSINESS IMPROVEMENT DISTRICT FY 2026-27
RECOMMENDATION
1. Conduct a public hearing to receive testimony regarding the City Council’s intention to continue the San Luis Obispo Tourism Business Improvement District and determine whether a legally sufficient protest is made; and
2. If no legally sufficient protest is made, adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, declaring the basis for and the levy of the assessment for the San Luis Obispo Tourism Business Improvement District and affirming the establishment of the District.
POLICY CONTEXT
In June 2008, the Council adopted Ordinance No. 1517 establishing a Tourism Business Improvement District (TBID) as requested by the local lodging industry. The district was formed under the State’s Parking and Business Improvement Law of 1989, sections 36500 et seq. of the Streets and Highways Code and codified into the City’s Municipal Code under Chapter 12.42. Pursuant to Municipal Code Section 12.42.060 and Sections 36530 and 36533 of the State’s Parking and Business Improvement Law, the appointed TBID Advisory Board is to submit an annual report that outlines the past year’s efforts and how the funding was used and to what effect. Section 36534 further requires that, after the approval of the annual report, if the TBID is intended to continue, the Council shall adopt a resolution of intention to levy an annual assessment for that fiscal year. The resolution also sets a public hearing to receive any written or oral protests against the continuation of the TBID as required by the applicable statute.
As referenced in the City’s Municipal Code, 12.42.060 and Sections 36524 and 36525 of the California Streets and Highways Code, after approval of the annual report the City Council shall follow the public hearing process. At the hearing, the City Council shall hear and consider all protests. If written protests are received from lodging businesses in the district paying 50% or more of the annual assessment, no further proceedings to continue the levy of assessments shall take place for FY 2026-27. The protests shall be weighted
Item 6a
based upon the annual assessment for the prior year by each lodging business. (Ord. 1517 § 3 (part), 2008)
DISCUSSION
Background
As noted above, in June of 2008, the City Council adopted an ordinance establishing the Tourism Business Improvement District. The TBID allows the hotel industry to raise funds solely dedicated to tourism marketing and promotions to attract visitors to San Luis Obispo. Currently the City TBID assessment is 2% of gross receipts. The TBID is inclusive of all lodging properties in the City of San Luis Obispo including hotels, motels, bed and breakfasts, hostels, inns and owner-occupied permitted homestays.
According to the City’s Municipal Code 12.42.100, the Tourism Business Improvement District Board is an advisory body that “shall review the implementation of this chapter, the implementation of programs and activities funded through this chapter, and advise the City Council on the amount of the district’s assessments and on the services, programs, and activities to be funded by the assessments, and shall perform such other duties as required by the law, including preparing the annual report required by Section 36533 of the law.” The Board consists of seven members from the San Luis Obispo lodging industry and advises the City Council in the administration and use of the TBID assessment funds. The Board recommends projects to promote tourism through their public facing brand, Visit San Luis Obispo, that directly benefit the city’s lodging industry.
On October 6, 2026, Council reviewed and approved the San Luis Obispo Tourism Business Improvement District Board’s annual report pursuant to Municipal Code Section
12.42.060.
The City’s Municipal Code further requires that, after the approval of the annual report, Council may choose to adopt a resolution of intention to levy an annual assessment for that fiscal year and schedule a public hearing to receive any written or oral protests against the district. Resolution No. 11691 (2026 Series), setting such a hearing, was adopted on October 6, 2026.
Following the Council action on October 6, 2026, all lodging businesses within the district including hotels, motels, bed and breakfast properties and the City permitted homestays, were noticed for the public hearing scheduled for October 20, 2026. Those notices were sent on October 8, 2026, to all assessed properties.
Following the Public Hearing, should a sufficient number of written or oral protest from hotel businesses in the district which pay fifty percent or more of the assessment not be received, a continuation of the assessment will be levied for the TBID which shall be used to promote lodging at the hotels within the district and administer marketing programs that increase overnight lodging.
Previous Council or Advisory Body Action
Item 6a
As set forth in Sections 36524 and 36525 of the California Streets and Highways Code and San Luis Obispo Municipal Code Section 12.42.060, the Council has the ability to continue the San Luis Obispo TBID at the public hearing, unless oral or written protests are received from City hoteliers that will pay 50% or more of the proposed assessments.
Under Municipal Code Section 12.42.060, protests are weighted based upon the annual assessment for the prior year by each hotel. Staff will have assessment information available at the meeting, but for confidentiality reasons, this information is not made public before or at the meeting. If a sufficient negative protest occurs, no further proceedings to continue the levy of assessments for that fiscal year shall take place.
At the conclusion of the public hearing, if sufficient protest is not received, Council may then adopt a resolution affirming the continuation of the San Luis Obispo TBID, setting forth the basis for the assessment, and levying the assessment upon lodging properties in the district for FY 2026-27 (Attachment A).
Public Engagement
This item is on the agenda for the October 20, 2026, Council meeting and will follow all required postings and notifications. The public may have an opportunity to comment on this item at or before the meeting.
All Advisory Body meetings for the TBID were noticed in accordance with Brown Act standards. Legal notices regarding the Council’s consideration to continue the San Luis Obispo TBID were published in the New Times and mailed to TBID properties on October 8, 2026. For convenience, the link to the agenda was also distributed to TBID constituents and stakeholders via email.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended action in this report, because the action does not constitute a “project” under CEQA Guidelines sec. 15378.
FISCAL IMPACT
Budgeted: 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 $ $ $ $
Fees
Other: TBID $2,299,130 $0 $2,299,130 N/A
Total $2,299,130 $0 $2,299,130* N/A
Item 6a
*For FY 2026-27, the TBID projected revenue is $2,299,130 and is budgeted for program costs including staffing, which is intended to be used for tourism marketing and promotion.
All costs associated with TBID program expenditures are paid with TBID revenues. The City retains 2% of TBID revenues to offset administrative overhead in the General Fund which amounts to $45,983 in FY 2026-27 based on current revenue assumptions.
ALTERNATIVES
1. Delay the public hearing. In addition to the legal noticing, staff provided additional constituent outreach. If the City receives close to 50% protest, the Council could delay the public hearing in order verify protest submissions.
2. Do not adopt the resolution. If the Council were to decline to adopt the resolution due to an interest in disestablishing the TBID, it would subsequently need to adopt a resolution of intention to disestablish the TBID and thereafter adopt an ordinance at a public hearing disestablishing district. Upon disestablishment, any remaining revenue from the levy of assessments would need to be refunded to the owners of businesses within the area. If the TBID was disestablished, no further proceedings to reestablish the TBID or levy the assessment shall be taken for one year, and the major source of revenue used to promote San Luis Obispo as a tourism destination would be eliminated, which may impact visitation and ultimately the City’s revenue.
ATTACHMENTS
A – Draft Resolution to Continue the TBID in FY 2026-27
R ______
RESOLUTION NO. _____ (2026 Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO,
CALIFORNIA, DECLARING THE BASIS FOR AND THE LEVY OF THE ASSESSMENT
FOR THE SAN LUIS OBISPO TOURISM BUSINESS IMPROVEMENT DISTRICT AND
AFFIRMING THE ESTABLISHMENT OF THE DISTRICT
WHEREAS, the Parking and Business Improvement Law of 1989, sections 36500 et seq. of the Streets and Highways Code, authorizes cities to establish business improvement districts for several purposes, one of which is promotion of tourism; and WHEREAS, the lodging businesses within the proposed City of San Luis Obispo Tourism Business Improvement District had requested the City of San Luis Obispo establish such a self-assessment improvement district in 2008; and WHEREAS, the San Luis Obispo Tourism Business Improvement District was established in July 2008, and the San Luis Obispo Tourism Business Improvement District Law was incorporated into the Municipal Code under Chapter 12.42; and WHEREAS, the City Council appointed an advisory board to carry out the functions specified in Street and Highways Code Section 36530, and to provide oversight, guidance, and recommendations regarding the use of the assessment funds; and WHEREAS, the San Luis Obispo Tourism Business Improvement District Law and the Parking and Business Improvement Law of 1989 requires the advisory body to prepare and submit an annual report stating proposed changes, improvements and activities for the fiscal year; and
WHEREAS, such report was filed and approved by the City Council on October 6, 2026.
WHEREAS, on October 6, 2026 the City Council adopted Resolution No. 11691 (2026 Series) declaring its intention to continue the San Luis Obispo Tourism Business Improvement District in 2026-27; and
WHEREAS, notices regarding the approval of the public hearing were sent on October 8, 2026 to all assessed properties; and
WHEREAS, the City Council held a duly noticed Public Hearing on October 20, 2026 to allow for protests, as contemplated by Streets and Highway Code Section 36524; and WHEREAS, sufficient written or oral protest was not received from hotel businesses in the district which pay fifty percent or more of the assessment; NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:
a) The establishment of Tourism Business Improvement District in the City of San Luis Obispo in accordance with the San Luis Obispo Tourism Business
R ______
Improvement District Law, San Luis Obispo Municipal Code Chapter 12.42, and the California Streets and Highways Code, section 36500 et seq. (Parking and Business Improvement Law of 1989) is affirmed.
b) The assessment levied by the Tourism Business Improvement District shall be used to promote lodging at the hotels within the district and administer marketing programs that increase overnight lodging.
c) The assessment shall be levied and allocated by the City of San Luis Obispo. d) The assessment shall to be levied on all “hotels”, as that term is defined in San Luis Obispo Municipal Code section 3.04.020, to wit: any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof. e) The assessment shall be based on two percent (2%) of gross room rent. f) New hotels shall not be exempt from immediate assessment.
Upon motion of _______________________, seconded by
_______________________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________, 2026. ____________________________________
Mayor Erica A. Stewart
ATTEST:
____________________________________
Teresa Purrington, City Clerk
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, this ______ day of ______________, 2026. ____________________________________
Teresa Purrington, City Clerk