HomeMy WebLinkAboutItem 6j - Authorization to Advertise for RFPs for Deferred Comp Plan Consultant and Consolidate Recordkeeping ServicesItem 6j
Department: Human Resources
Cost Center: 3001
For Agenda of: 10/21/2025
Placement: Consent
Estimated Time: N/A
FROM: Nickole Domini, Human Resources Director
Prepared By: Kate Auslen, Risk and Benefits Manager
SUBJECT: AUTHORIZATION TO ADVERTISE REQUEST FOR PROPOSALS (RFP)
FOR A DEFERRED COMPENSATION PLAN CONSULTANT AND
FIDUCIARY INVESTMENT ADVISOR; AUTHORIZATION TO ADVERTISE
A SUBSEQUENT RFP TO CONSOLIDATE RECORDKEEPING
SERVICES
RECOMMENDATION
1.Adopt a 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 Plans” (Attachment A).
2.Authorize the Director of Human Resources to advertise a Request for Proposals
(RFP) for a Deferred Compensation Consultant (Attachment B);
3.Authorize the Director of Human Resources to advertise a RFP for a Deferred
Compensation Recordkeeper, via the selected Consultant (Attachment C); and
4.Authorize the City Manager to execute professional services agreements with the
selected consultant and selected recordkeeper.
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.
The City’s Financial Management Manual, Section 202, requires City Council approval
for purchases or contracts at or exceeding $150,000. It is unclear, but possible, that this
project is subject to the requirements of Section 202 because the total amount paid to the
consultant may exceed $150,000 over the course of the five-year term of the agreement,
though these costs are paid by employees and not the City directly. Out of caution, this
item is being presented for City Council approval.
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Item 6j
DISCUSSION
The City’s deferred compensation program allows employees to supplement their
retirement savings. Employees may contribute up to the annual maximum amount
established by the Internal Revenue Service. The program is administered through four
record-keepers, including: (1) MissionSquare, (2) Empower, (3) Nationwide, and (4) John
Hancock, with Public Agency Retirement Services (PARS) as its third-party administrator.
These record-keepers manage multiple plan types, including 457(b), 457(b) OBRA,
401(a), and Retiree Health Savings. City employees are offered the option of participating
in a ROTH IRA or Traditional IRA, but they are administered as individual plans, rather
than City sponsored plans. Beginning in January 2026, the City will also offer a Roth
457(b) plan.
Eligibility and contributions vary by plan type:
457(b) plan: Available to all regular and limited-term contract employees.
Contributions are made by employees.
457(b) OBRA plan: Mandatory for temporary employees, as the City does not
participate in Social Security and does not offer CalPERS retirement enrollment
until a specified annual work-hour threshold is met, or if they have been previously
enrolled in CalPERS retirement. Contributions are made by employees.
401(a) plan: Restricted to management employees and appointed officials.
Department heads and appointed officials receive a City contribution to their 401(a)
plan. All other contributions to this plan are made by employees.
Retiree Health Savings: No longer available for new contributions.
Recordkeepers hold existing assets until participants are eligible to withdraw
funds.
ROTH IRA: Available to all employees, with contributions made by employees. No
longer available for City payroll deduction and not a City sponsored plan, but
available to employees through a current recordkeeper.
Traditional IRA: Available to all employees, with contributions made by
employees. Not a City sponsored plan, but available to employees through a
current recordkeeper.
Roth 457(b) plan (effective January 2026): Available to regular and limited-term
contract employees, with contributions made by employees.
To enhance the value of this benefit offering, the City partnered with USI Insurance
Services in 2022 to negotiate the recordkeeping fees of the plans offered. This resulted
in reduced costs for the plan participants. As of September 2025, 72% of the City’s
workforce is enrolled in the California Public Employees’ Retirement System (CalPERS)
Public Employees’ Pension Reform Act (PEPRA) retirement tier, which provides lower
retirement benefits than the City’s first and second CalPERS tiers. In order to maintain
the City’s ability to attract and retain highly qualified employees, the Human Resources
Department has established a priority of supporting staff in identifying and utilizing
effective strategies for retirement savings.
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Item 6j
Step 1: Plan Administration
To ensure accountability and provide clear authority over plan operations, staff
recommends designating the City Manager as the official Plan Administrator for the City’s
Deferred Compensation Plans. This designation includes the authority to delegate
administrative duties as necessary and to execute all service agreements and related
documents required for the ongoing administration of the Plans and fulfillment of the City’s
fiduciary responsibilities (Attachment A).
Specifically, this authorization will allow the City Manager to:
Carry out administrative responsibilities for the Plans;
Assign or delegate administrative duties to appropriate staff;
Execute professional services agreements with the selected plan consultant and
recordkeeper following the RFP process; and
Execute any other documents necessary to ensure compliance with legal
requirements and effective Plan operations.
This structure provides a streamlined and efficient governance model, ensuring that the
Plans are administered effectively, fiduciary obligations continue to be met, and the best
interests of the current and former Plan participants are consistently served .
Step 2: Plan Consultant and Fiduciary Investment Advisor
As the sponsor of the City’s Deferred Compensation Plans, the City has fiduciary duties
and responsibilities under both State and Federal law. These duties require that the Plans
be managed and operated solely for the benefit of participants and beneficiaries.
Specifically, fiduciary obligations include:
Prudently investing plan assets;
Properly administering the Plans; and
Maintaining a prudent process for all decisions related to plan investments, fees,
and services.
While the City retains ultimate fiduciary responsibility, it has the authority to contract with
qualified third-party consultants to assist in carrying out these duties. Given the increasing
complexity of the investment marketplace, evolving fiduciary requirements, and the need
for specialized expertise, staff recommend engaging an experienced plan consultant and
fiduciary investment advisor. Such a consultant would:
Provide guidance on industry trends and fiduciary best practices;
Support compliance with applicable laws and regulations;
Offer recommendations related to plan administration, investments, fees, and
services; and
Assume fiduciary responsibility for oversight of the investment options offered to
participants.
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Engaging a plan consultant and fiduciary investment advisor will allow the City to
strengthen its oversight of the Plans, ensure fiduciary responsibilities are met, and confirm
the Plans continue to serve the best interests of participants, both current and former
employees who have invested in the Plans.
Therefore, staff requests authorization to advertise a Request for Proposals (RFP) to
engage a qualified plan consultant and advisor to assist the City in fulfilling its fiduciary
obligations, provide ongoing plan oversight, support compliance with applicable laws and
regulations, and lead the recordkeeper consolidation process as described below.
Additional detail is available in the draft Request for Proposals for a deferred
compensation consultant (Attachment B).
Following the selection of a plan consultant and recordkeeper, staff further recommend
authorizing the City Manager to execute a professional services agreement with the
selected consultant to ensure timely engagement and oversight.
Step 3: Record-Keeper Consolidation
As noted above, the City’s Plans currently utilize four record-keepers, which can create
inefficiencies in plan administration, oversight, and participant services. Industry best
practices increasingly favor consolidating services under a single record-keeper to
streamline operations and improve participant outcomes.
A single record-keeper is expected to:
Simplify administration and reporting for the City;
Reduce overall plan and participant costs;
Provide more consistent services and communications to employees; and
Enhance transparency and fiduciary oversight.
Staff is requesting authorization to advertise a Request for Proposals (RFP) fo r record-
keeping services with the goal of consolidating the Plans under one provider, using the
selected plan consultant and advisor to lead the process in consultation with an employee
committee. This approach aligns with the City’s fiduciary responsibility to operate the
Plans in the best interests of participants and to seek cost -effective, high-quality plan
services.
Further details are provided in the draft Request for Proposals for a deferred
compensation recordkeeper (Attachment C). This draft serves as a preliminary template,
as this RFP process will be led by the selected consultant, and staff will rely on their
expertise to finalize the RFP content prior to advertising.
Upon completion of the RFP process and selection of a provider, s taff recommend that
the City Manager be authorized to execute all necessary service agreements with the
selected recordkeeper.
Previous Council or Advisory Body Action
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Item 6j
1. Empower (formerly The Hartford and MassMutual): Resolution No 3875 (1979
Series). Authorized the City to purchase insurance and/or annuity contracts with the
Hartford to establish plan benefits.
2. MissionSquare (formerly ICMA): Resolution No 5522 (1984 Series). Authorized City
Manager to award and renew contracts to establish and maintain employee benefits
plans.
3. Nationwide (formerly Great Western Bank) 1993, No record available.
4. PARS: Resolution No. 9053 (2000 Series). Established defined contribution plan with
a City contribution for managers (1%) and department heads (2%).
CONCURRENCE
An employee committee comprised of representatives from each of the six bargaining
units and Human Resources staff has been assembled to provide input regarding this
project. In anticipation that this project will result in reduced costs, and in turn, higher
retirement savings, the committee is enthusiastic for this work to begin. Additionally,
Human Resources staff has consulted with the Director of Finance and the City Attorney
on the approach to completing this work.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in
this report, because the action does not constitute a “Proje ct” under CEQA Guidelines
Sec. 15378.
FISCAL IMPACT
Budgeted: No Budget Year: 2025-26
Funding Identified: N/A
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund
State
Federal
Fees
Other:
Total $0 $0 $0 $0
Issuing the RFPs do not obligate any funds or commit the City to utilize any services of
Respondents. Once a consultant and recordkeeper are selected, staff anticipates that the
full scope of services will be paid out of participant plan assets rather than the City ’s
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Item 6j
budget. In the event there is a small upfront City cost for consultant services, staff expect
that it will fall under the City Manager’s authority to approve and would be funded through
current year salary savings in the Human Resources Department, as it would be a one
time expense.
ALTERNATIVES
1. Council could decide not to approve the release of the Request for Proposals
for a Deferred Compensation Consultant. Should Council pursue this option, staff
would need to proceed without the value of professional expertise and experience, or
not proceed with the project at all. This may result in increased liability for the City as
regulations around employee benefits are complex and re quire specialized knowledge
and experience to ensure compliance.
2. Council could decide not to approve the release of the Request for Proposals
for a Deferred Compensation Recordkeeper. Should Council pursue this option,
possible outcomes include:
a) The City could maintain its four existing recordkeepers, rather than consolidating
plans to a single recordkeeper. This could result in participants continuing to pay
higher than necessary fees on their retirement assets, causes employee confusion
about which plan to select, and requires more staff time to administer the plans. It
also increases the likelihood that the plans become out of compliance, increasing
liability for the City.
b) After a consultant is selected (approximately December 2025) staff could return to
Council to request authorization to release the request for proposals for
recordkeepers (approximately February 2026). This would create a project delay
and lengthen the amount of time employees are paying higher than necessary fees
on their retirement assets.
ATTACHMENTS
A - Draft Resolution designating the City Manager as the plan administrator for deferred
compensation plans
B - Draft Request for Proposals – Deferred Compensation Consultant
C - Draft Request for Proposals – Deferred Compensation Recordkeeper
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R ______
RESOLUTION NO. _____ (2025 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, DESIGNATING THE CITY MANAGER AS PLAN
ADMINSTRATOR FOR DEFERRED COMPENSATION PLANS
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;
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 necessary
documents on behalf of the CITY, assign or delegate administrative duties as appropriate
and take whatever additional actions are necessa ry to maintain participation of the CITY
in the Plan and comply with relevant regulations.
Upon motion of Council Member ___________, seconded by Council Member
___________, and on the following roll call vote:
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Resolution No. _____ (2025 Series) Page 2
R ______
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _______________ 2025.
___________________________
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
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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 Proposals / Qualifications for Retirement Plan Consulting Services
The City of San Luis Obispo is requesting sealed proposals for retirement plan consulting services.
All firms interested in receiving further correspondence regarding this Request for Proposals (RFP) will be
required to complete a free registration using BidNet Direct (www.bidnetdirect.com/).
All proposals must be received via BidNet Direct by November 14, 2025 at 3 p.m., when they will then be
opened electronically via BidNet Direct on the proposal end date and time.
The preferred method for bid submission is electronic via BidNet Direct. However, if you wish to submit
a paper copy, please submit it in a sealed envelope plainly marked “Proposal for Retirement Plan
Consulting Services,” to the Department of Finance, at 990 Palm Street, San Luis Obispo, CA, 93401, at or
before 3pm on November 14, 2025.
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.
Proposals are subject to the California Public Records Act. Proposers should clearly mark trade secret
portions; the City will use reasonable efforts to maintain confidentiality but cannot guarantee
nondisclosure.
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TABLE OF CONTENTS
A. INTRODUCTION......................................................................................................................................... 2
B. SCOPE OF WORK ....................................................................................................................................... 2
C. MINIMUM QUALIFICATIONS ..................................................................................................................... 5
D. PROPOSAL CONTENT ............................................................................................................................... 5
E. GENERAL TERMS AND CONDITIONS ......................................................................................................... 7
F. CONTRACT AWARD AND EXECUTION ....................................................................................................... 9
G. SPECIAL TERMS AND CONDITIONS .......................................................................................................... 9
H. FORM OF AGREEMENT .......................................................................................................................... 10
I. PROPOSAL EVALUATION, SELECTION AND AWARD SCHEDULE .............................................................. 10
PROPOSAL FORM: REFERENCES .................................................................................................................. 11
PROPOSAL FORM: STATEMENT OF PAST CONTRACT DISQUALIFICATIONS................................................ 13
EXHIBIT A : FORM OF AGREEMENT ............................................................................................................. 14
EXHIBIT B: INSURANCE REQUIREMENTS FOR PROFESSIONAL SERVICES .................................................... 21
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A. INTRODUCTION
The City of San Luis Obispo (“City) is nestled on the Central Coast of California, halfway between Los
Angeles and San Francisco. With approximately 490 regular employees, the City’s ten departments serve
the public in carrying out the policies and programs prioritized by the City Council, and implementing the
City's charter and municipal code. The City’s mission statement explains the organization's focus in
carrying its responsibilities. Its organizational values guide and inspire the day to day operations of the
City.
The City’s Human Resources department is responsible for administering employee benefits programs,
including retirement plans. The City is seeking proposals from highly qualified and experienced
consultants to conduct a comprehensive review of its deferred compensation plans, facilitate a Request
for Proposals (RFP), oversee plan conversion and consolidation, as well as provide ongoing fiduciary
support such as investment advising services related to the City’s elective retirement plans. The City is
committed to providing our employees with robust and well-managed retirement savings options, and
this assignment will be critical in ensuring our plans remain competitive, compliant, and optimally
designed.
The City is specifically looking for a consultant with expertise in governmental 457(b) plans, 401(a) plans,
and Retiree Health Savings (RHS) plans including a thorough understanding of their unique regulatory
landscape and operational nuances. The City’s goal is to provide retirement plan participants with high
quality service, education and investment options at a reasonable cost. City plans are governmental plans
and therefore exempt from ERISA Title I; the City nonetheless adopts ERISA-informed best practices by
contract. The City is looking for a consultant that can provide ERISA-style §3(38) discretionary fiduciary
advisory services.
The following is the current breakdown of participants and assets in the City’s Plans, as of September 5,
2025:
Plan Type Participants with a
Balance Asset Balance
457(b) 462 $51,350,774
401(a) 100 $2,844,245
Retiree Health Savings (RHS) 213 $1,824,394
OBRA-PT (457b) 2418 $1,465,029
Totals 3,193 $57,484,442
The current recordkeepers for the plans listed above are (in no particular order) Empower, MissionSquare,
Nationwide, PARS (serving as a third-party administrator for John Hancock).
Note: Some City employees participate in ROTH IRA or Traditional IRA through a current recordkeeper.
However, they are individual plans, not City sponsored plans.
B. SCOPE OF WORK
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The selected consultant will be asked to provide input and advice in three primary areas: (1) plan
investments, (2) recordkeeper services, and (3) plan design and technical issues. The selected consultant
must be capable of providing expert review and analysis regarding the topics specified below.
Phase 1 – Recordkeeper Selection and Negotiation
a. Determine services needed to support prudent administration and operation of the plan.
b. Issue a Request for Proposal (RFP) in consultation with the City and employee
committee for recordkeeping services.
i. Develop the recordkeeper RFP (scope, questionnaires, pricing matrix, service
metrics), including, but not limited to:
1. Require proposals to commit to call center service levels, processing
timeliness, error rates, cybersecurity controls (SOC 2 Type II),
disaster recovery, and conversion milestones.
2. Require proposers to grant the City ownership of plan and
participant data, prohibit unrelated marketing, and disclose any
rollover/IRA programs offered and associated incentives.
ii. Analyze results of the RFP and present to the City, including, but not limited to:
1. Normalize and benchmark all-in costs (admin, recordkeeping,
investment vehicle expense ratios, managed account adders).
Provide side-by-side, net-of-revenue-share comparisons.
iii. Facilitate informed decision making by the City and employee committee.
iv. Coordinate the selection process, along with the employee committee
c. Negotiate service agreements and fees.
i. Provide a written review and benchmarking of all plan-related fees, including
administrative, recordkeeping, and investment management fees. Provide a
clear breakdown of costs and an assessment of their reasonableness relative to
industry standards.
ii. Provide a written review of all plan-related documentation, including the plan
document, adoption agreement, service agreements, and participant
communications, to ensure accuracy, completeness, compliance with all
applicable Internal Revenue Code requirements for governmental 457(b),
401(a), OBRA and RHS arrangements and adoption of ERISA-informed best
practices where prudent.
iii. Make recommendations that enhance participant outcomes and administrative
efficiency.
d. Advise on best practices in plan operation and administration.
Phase 2 – Recordkeeper and Plan Consolidation
a. Coordinate plan consolidation to a single record-keeper, as selected in Phase 1, , or
a rationalized structure where analysis demonstrates clear advantages in
participant outcomes, service, risk controls, and net cost. Document rationale if
any plan (e.g., OBRA or RHS trust) is retained with a specialist provider.
b. Attend conversion meetings and other meetings needed to offer insights, address
stakeholder concerns and facilitate informed decision making.
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c. Review and advise on plan documents and service agreements.
d. Consult and prepare thorough, effective participant communications to minimize
disruption to participants and meet plan sponsor obligations.
e. Ensure data integrity and legal compliance.
Phase 3 – Ongoing Fiduciary Support and ERISA-style §3(38) Discretionary Fiduciary Advising (5-year
contract anticipated)
Fiduciary Acknowledgement (Non-Discretionary, Plan-Level).
The consultant will acknowledge, in writing, a discretionary, plan-level fiduciary duties to the City with
respect to the investment menu, IPS maintenance, and vendor selection/monitoring, consistent with
governmental plan status and applicable state law; the consultant will accept fiduciary discretion over
plan assets. (ERISA-style §3(38) discretionary advisory services.)
The consultant will further acknowledge that it is prohibited from acting in a brokerage capacity for
purposes of its engagement with the City and will not accept any third party compensation related to its
engagement with the City.
1. Plan Design and Technical Guidance
a. Provide a detailed analysis of Deferred Compensation plan documents and
alignment with best practices. Make recommendations that enhance participant
outcomes and administrative efficiency.
b. Advise on best practice in plan design, plan operation and administration.
c. Advise on federal and state laws and regulations affecting the plan, including
current and proposed laws.
d. Advise on potential amendments to the 457(b), 401(a) and RHS Plan documents,
including discretionary changes, optional changes permitted under the laws
governing the plan, and mandatory changes required by governing law.
e. Address questions that may arise from time to time in the administration of the plan
concerning the interpretation of federal rules and policies and their applicability to
the City's plans and a broad range of questions related to retirement, tax-deferred
saving concepts, administration, or issues not necessarily directly related to Section
457(b) deferred compensation plan administration.
f. Perform cybersecurity monitoring, including obtaining assurance letters from
recordkeeper(s) confirming alignment with EBSA Cybersecurity Best Practices;
reviewing SOC 1/2 reports and remediation plans.
2. Plan Investments
a. Draft an investment policy and present to the City. Once adopted, make
recommendations consistent with policy during ongoing plan review
b. Evaluate performance results and investment fees relative to the appropriate
benchmark and peer rankings for each investment fund option on a quarterly basis.
i. Provide an in-depth assessment of the plan investment options, focusing
on diversification, performance, expense ratios, and overall suitability for
our participant base.
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ii. Provide recommendations for enhancements or changes to the
investment line-up to ensure compelling and competitive offerings.
c. Advise on the prudence of selecting and retaining each investment manager and
each investment fund option under the Plan, including recommending watchlist,
termination, or other appropriate actions.
d. When necessary, advise on best practices for terminating investments and
mapping liquidated funds to one or more other investment options under the
Plan.
e. Draft participant communications regarding Plan investments.
f. Present Quarterly review of Plan assets, investments, fees and plan activity.
g. Meet quarterly, at a minimum, with the city staff to discuss retirement plan details and
any issues.
h. Meet with plan participants in group and individual settings as needed to provide
education related to the plans and investments.
C. MINIMUM QUALIFICATIONS
Proposals will be considered from bidders that meet the following requirements:
1. Have at least ten (10) years of experience under a legally registered business name in providing
services of similar type and scope as described in the Scope of Services (“Services”).
2. Have not filed for bankruptcy under any business name over the past ten (10) years.
3. Not currently and has not been under investigation over the past ten (10) years by any state or
federal regulatory agency.
4. Must have a minimum of twenty (20) public sector clients with 457(b) Deferred Compensation
Plans with average assets of $50 million per client for which it provides discretionary fiduciary
investment advisory services (i.e. 3(38) advisory services as if the plan were subject to ERISA).
5. Must be able to provide discretionary fiduciary investment advisory services (i.e. 3(38) advisory
services as if the plan were subject to ERISA) and plan consulting services, including plan
document review and plan design recommendations for governmental 401(a) defined
contribution plans.
6. Must have a minimum of ten (10) public sector participant directed Health Reimbursement
Account / Retirement Healthcare Savings Account Plans (Section 115 or VEBA) with average
assets of $1.5 million per client for which it provides discretionary fiduciary investment advisory
services (i.e. 3(38) advisory services as if the plan were subject to ERISA).
7. Must have issued on behalf of a City a minimum of three (3) RFPs for plan services in the past
year.
8. A representative of the firm must be available, at minimum, for quarterly meetings on-site at
the city during Phase 1 and Phase 2, and at least annually during Phase 3. Some meetings may
be offered virtually.
9. It is strongly preferred that the firm have its Home Office/Main Office domiciled in the state of
California.
D. PROPOSAL CONTENT
Proposals must include the following information:
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Submittal Forms
1. Cover letter
a. Submit a letter on your company letterhead that includes a list of all forms submitted.
The letter should be signed by an officer authorized to bind the proposer to all content in
the proposal, and shall include the name, address, phone number and e-mail address of
the person(s) to contact who will be authorized to represent the proposal.
2. Consultant Profile
a. Please provide a consultant profile, including:
i. Firm name, address, and contact information. (Please designate a single point
of contact for purposes of interactions involving this RFP.)
ii. Type of firm: individual, partnership, corporation, or other entity.
iii. History of the firm, including number of years in existence, number of years
providing investment advisory services to public agencies, location of offices, and
total number of employees in each office.
iv. List of the names and titles of the members, partners, officers, management, and
staff of the firm.
v. Resumes of key individuals to be assigned to this project , those
individuals’ certifications and licenses and a description of their anticipated role
in this project.
vi. If subconsultant(s) will be used, please include resume and qualifications of the
subconsultant.
vii. Investment Advisor Status. Please answer the following questions:
a. Are you or your firm registered as an investment adviser under the
Investment Advisers Act of 1940 (the “Advisers Act”)?
b. Are you or your firm registered as a broker?
c. Are you or your firm affiliated with a broker-dealer?
d. Does your firm offer proprietary mutual funds or separately managed
accounts?
e. Do you or your firm receive any third-party compensation for
recommending particular investments?
f. Will you promptly notify the City of San Luis Obispo should you or your
firm’s status change regarding items a through e?
viii. What is your philosophy when it comes to investing?
ix. Please describe the ongoing fiduciary services that you are willing to provide for
the City of San Luis Obispo.
3. Qualification and Experience Summary
a. Please provide an explanation of how you meet each of the minimum qualifications set
forth in Section C: Minimum Qualifications. Please describe examples of your work and
results on similar projects as described in the scope of work.
4. Work Plan / Timeline
a. Provide a work plan that incorporates the items in Section B. Scope of Work outlined
above. The work plan should identify the expected duration of each task and reflect the
associated personnel and other resources required for all tasks to be performed. This
should include a schedule for all deliverables and a clear explanation of consultant’s and
City responsibilities.
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i. Detailed description of your approach to completing the work.
ii. Detailed schedule by task and sub-task for completing the work.
iii. Estimated hours for your staff in performing each phase and task of the work,
including sub-consultants, so we can clearly see who will be doing what work, and
how much time it will take.
iv. Services or data to be provided by the City.
v. Services and deliverables provided by the Consultant(s).
vi. Description of assumptions critical to development of the response which may
impact cost or scope.
vii. Pricing Information. Please explain how you or your firm charge(s) for services.
Please provide either standard hourly billing rates for the assigned staff, including
any sub-consultants, or a package fee for different phases of the project, clearly
explaining what is included in the fee for each phase of the project.
viii. Any other information that would assist us in making this contract award decision.
5. Certificate of insurance.
a. Please provide a certificate of insurance meeting the requirements set forth in the sample
Professional Services Agreement in Exhibit B.
i. The insurance carrier and its A.M. Best rating.
ii. Scope of coverage and limits.
iii. 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; as discussed under paragraph 12 below,
endorsements are not required until contract award.
6. References from at least three public agencies, preferably California cities that are
comparable to the City of San Luis Obispo, for whom you have provided similar services as
specified in the RFP.
7. Statement and explanation of any instances where your firm or sub-consultant has been
removed from a project or disqualified from proposing on a project.
E. GENERAL TERMS AND CONDITIONS
PROPOSAL REQUIREMENTS
1. Requirement to Meet All Provisions. Each individual or firm submitting a proposal (bidder) shall meet
all the terms, and conditions of the Request for Proposals (RFP) project package. By virtue of its
proposal submittal, the bidder acknowledges agreement with and acceptance of all provisions of the
RFP specifications.
2. Proposal Submittal. Each proposal must be submitted on the form(s) provided in the specifications
and accompanied by any other required submittals or supplemental materials. Proposal documents
shall be submitted electronically via BidNet. However, if you can’t submit electronically in BidNet.,
please email a copy to the contacts listed in the RFP package, if you can’t email it, please send a copy
in a sealed envelope to the Department of Finance, City of San Luis Obispo, 990 Palm Street, San Luis
Obispo, CA, 93401. To guard against premature opening, the proposal should be clearly labeled with
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the proposal title, project number, name of bidder, and date and time of proposal opening. No fax
submittals will be accepted.
3. Proposal Length. Proposal length should only be as long as required to be responsive to the RFP,
including attachments and supplemental materials.3.
4. Submittal of One Proposal Only. No individual or business entity of any kind shall be allowed to make
or file, or to be interested as the primary submitter in more than one proposal, except an alternative
proposal when specifically requested; however, an individual or business entity that has submitted a
sub-proposal to a bidder submitting a proposal, or who has quoted prices on materials to such bidder,
is not thereby disqualified from submitting a sub-proposal or from quoting prices to other bidders
submitting proposals.
5. Communications. All requests for information submitted in writing before the submission deadline
will receive a written response from the City within five (5) business days. Telephone communications
with City staff are not encouraged but will be permitted. However, any such oral communication shall
not be binding on the City.
6. Ownership of Materials. All original drawings, plan documents and other materials prepared by or in
possession of the Contractor as part of the work or services under these specifications shall become
the permanent property of the City and shall be delivered to the City upon demand.
7. Release of Reports and Information. Any reports, information, data, or other material given to,
prepared by or assembled by the Contractor as part of the work or services under these specifications
shall be the property of the City and shall not be made available to any individual or organization by
the Contractor without the prior written approval of the City.
8. Copies of Reports and Information. If the City requests additional copies of reports, drawings,
specifications, or any other material in addition to what the Contractor is required to furnish in limited
quantities as part of the work or services under these specifications, the Contractor shall provide such
additional copies as are requested, and City shall compensate the Contractor for the costs of
duplicating of such copies at the Contractor's direct expense.
9. Required Deliverable Products. The Contractor will be required to provide:
a. One electronic submission - digital-ready original .pdf of all final documents. If you wish to file
a paper copy, please submit in sealed envelope to the address provided in the RFP.
b. Corresponding computer files compatible with the following programs whenever possible
unless otherwise directed by the project manager:
i. Word Processing: MS Word
ii. Spreadsheets: MS Excel
c. City staff will review any documents or materials provided by the Contractor and, where
necessary, the Contractor will be required to respond to staff comments and make such
changes as deemed appropriate.
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F. CONTRACT AWARD AND EXECUTION
1. Proposal Retention and Award. The City reserves the right to retain all proposals for a period of 60
days for examination and comparison. The City also reserves the right to waive non-substantial
irregularities in any proposal, to reject any or all proposals, to reject or delete one part of a proposal
and accept the other, except to the extent that proposals are qualified by specific limitations. See the
“special terms and conditions” in Section C of these specifications for proposal evaluation and
contract award criteria.
2. Competency and Responsibility of Bidder. The City reserves full discretion to determine the
competence and responsibility, professionally and/or financially, of bidders. Bidders will provide, in
a timely manner, all information that the City deems necessary to make such a decision.
3. Contract Requirement. The bidder to whom award is made (Contractor) shall execute a written
contract with the City within thirty (30) calendar days after notice of the award. The contract shall be
made in the form adopted by the City and incorporated in these specifications.
4. Contract terms and conditions. The City’s contract terms and conditions that Consultant will be
expected to execute and be bound by are attached hereto as Exhibit A.
G. SPECIAL TERMS AND CONDITIONS
1. Contract Award. The contract will be awarded to the most qualified bidder that, in the City’s sole
discretion in accordance with the Proposal Evaluation and Selection criteria set forth herein (if
applicable), provides the best proposal.
2. Labor Actions. In the event that the successful proposer is experiencing a labor action at the time of
contract award (or if its suppliers or subcontractors are experiencing such a labor action), the City
reserves the right to declare said proposer is no longer the most qualified, responsive proposer and
to accept the next acceptable proposal from a proposer that is not experiencing a labor action, and
to declare it to be the most qualified, responsive proposer.
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; any bid security will be
forfeited in accordance with the special terms and conditions if a proposer's bond or security is
required; and an award may be made to the next lowest responsible, responsive proposer who shall
fulfill every stipulation as if it were the party to whom the first award was made.
4. Contract Term. The supplies or services identified in this specification will be used by the City for five
years. The prices quoted for these items must be valid for the entire period indicated above unless
otherwise conditioned by the proposer in its proposal.
5. Contract Extension. The term of the contract may be extended by mutual consent for an additional
one-year.
6. Start of Work. Work on this project shall begin immediately after contract execution, unless otherwise
negotiated with City by mutual agreement.
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7. Submittal of References. Each proposer shall submit a statement of qualifications and references on
the form provided in the RFP package.
8. 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.
9. Compensation and Conflicts. The proposer shall:
a. Operate on a fee-only or fully fee-transparent basis; disclose all direct/indirect compensation;
and rebate/offset any revenue sharing to the Plan.
b. Receive no compensation or incentives from recordkeepers, fund managers, or
managed-account providers related to City decisions.
c. Disclose and manage any actual or potential conflicts (e.g., sub-adviser relationships,
proprietary products, referral arrangements).
d. Agree not to use plan or participant data for unrelated marketing, cross-selling, or rollovers
without written City authorization.
H. FORM OF AGREEMENT
Please see Exhibit A for a sample agreement. with the City’s general procurement provisions. Provisions
specific to the provider’s services that are the subject of this RFP will be negotiated by the parties.
The City desires to begin work soon after selecting the preferred consultant and expects the consultant
to execute the City’s contract and all of the terms therein, as set forth in Exhibit A. To expedite the
contracting process, each submittal shall include requested redlined changes to terms and conditions, if
necessary. Please be advised that consultant’s requested changes to the City’s terms and conditions will
be considered by City staff when scoring and determining the competency and responsibility of the
proposer.
I. PROPOSAL EVALUATION, SELECTION AND AWARD SCHEDULE
1. Proposal Evaluation and Selection. Proposals will be evaluated by a review committee and
evaluated on the following criteria:
a. Understanding of the work required by the City.
b. Quality, clarity, and responsiveness of the proposal.
c. Demonstrated competence and professional qualifications necessary for successfully
performing the work required by the City.
d. Recent experience in successfully performing similar services.
e. Background and experience of the specific individuals managing and assigned to this
project.
f. Value.
g. Potential conflicts of interest.
h. References.
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As reflected above, contract award will not be based solely on price, but on a combination of factors as
determined to be in the best interest of the City. After evaluating the proposals and discussing them
further with the finalists or the tentatively selected contractor, the City reserves the right to further
negotiate the proposed work and/or method and amount of compensation.
2. Proposal Review and Award Schedule. The following is an outline of the anticipated schedule for
proposal review and contract award:
a. Issue RFP 10/22/25
b. Proposal deadline 11/14/25
c. Evaluate proposals 11/20/25 - 12/05/25
d. Finalize recommendation and notify respondents By 12/12/25
e. Execute contract Approx. 12/19/25
f. Start work Approx. 01/05/26
PROPOSAL FORM: REFERENCES
Provide detailed descriptions of three comparable public agencies your firm has worked with. For each,
identify the services performed, how they align with the scope outlined in this RFP, the results you
achieved, and how the experience demonstrates your firm’s ability to successfully deliver similar services
for the City of San Luis Obispo. Attach additional pages if required. The City reserves the right to contact
each of the references listed for additional information regarding your firm's qualifications.
Reference No. 1:
Agency Name
Contact Name
Telephone & Email
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
Reference No. 2:
Agency Name
Contact Name
Telephone & Email
Street Address
City, State, Zip Code
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Description of services provided
including contract amount, when
provided and project outcome
Reference No. 3
Agency Name
Contact Name
Telephone & Email
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
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PROPOSAL FORM: STATEMENT OF PAST CONTRACT DISQUALIFICATIONS
The proposer shall state whether it or any of its officers or employees who have a proprietary interest in
it, has ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal,
state, or local government project because of the violation of law, a safety regulation, or for any other
reason, including but not limited to financial difficulties, project delays, or disputes regarding work or
product quality, and if so to explain the circumstances.
Do you have any disqualification as described in the above paragraph to declare?
Yes No
If yes, explain the circumstances.
Executed on at _______________________________________ under penalty of
perjury of the laws of the State of California, that the foregoing is true and correct.
______________________________________
Signature of Authorized Proposer Representative
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EXHIBIT A : FORM OF AGREEMENT
CITY OF SAN LUIS OBISPO
PROFESSIONAL SERVICES AGREEMENT
This agreement (Agreement) is made and entered into in the City of San Luis Obispo on [DATE], by and
between the City of San Luis Obispo, a municipal corporation and charter city (City) and _____________
hereinafter referred to as Contractor (collectively referred to as the “Parties”).
WITNESSETH:
WHEREAS, on ________, City requested proposals for Retirement Plan Consulting Services (the
“Project”); and
WHEREAS, the City wants to enhance its deferred compensation retirement plans and receive
ongoing fiduciary and investment advising services (the “Services”); and
WHEREAS, Contractor is qualified to perform this type of Services and has submitted a written
proposal to do so, which has been accepted by City; and
NOW, THEREFORE, in consideration of their mutual promises, obligations, and covenants
hereinafter contained, the Parties hereto agree as follows:
1. TERM. The term of this Agreement shall be from the date this Agreement is made and entered, as first
written above, until ______, or upon acceptance and completion of said Services, whichever occurs
sooner.
2. INCORPORATION BY REFERENCE. City Request for Proposals for Retirement Plan Consulting Services
and Contractor's proposal dated ______ are hereby incorporated in and made a part of this Agreement,
attached as Exhibit A. The City’s insurance requirements are hereby incorporated in and made part of
this Agreement, attached as Exhibit B. To the extent that there are any conflicts between the
Contractor’s fees and scope of work and the City’s terms and conditions as stated herein, the City’s
terms and conditions shall prevail unless specifically agreed otherwise in writing signed by both Parties.
3. CITY’S OBLIGATIONS. For providing services as specified in this Agreement, and upon receipt of an
invoice, City will pay and Contractor shall receive compensation as set forth in Contractor’s proposal
and pursuant to the Payment Terms set forth in Exhibit B.
4. CONTRACTOR’S OBLIGATIONS. For and in consideration of the payments and agreements herein
before mentioned to be made and performed by City, Contractor agrees with City to do everything
required by this Agreement including that work as set forth in Exhibit A.
5. PAYMENT OF TAXES. The contract prices shall include full compensation for all taxes that
Contractor is required to pay.
6. LICENSES AND PERMITS. At all times during the term of this Agreement, Contractor shall have in
full force and effect, all licenses required of it by law for the performance of the Services described
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in this Agreement. The Contractor shall procure all permits and licenses, pay all charges and fees,
and give all notices necessary under this Agreement.
7. COMPLIANCE WITH LAW. The Contractor shall keep itself informed of and shall observe and
comply with all applicable State and Federal laws and regulations, and county and City of San Luis
Obispo ordinances, regulations and adopted codes, which in any manner affect those employed
by Contractor or in any way affect the performance of the Services pursuant to this Agreement.
The City, and its officers and employees, shall not be liable at law or in equity occasioned by failure
of the Contractor to comply with this Section. Failure to comply with local ordinances may result
in monetary fines and cancellation of this Agreement.
8. COMPLIANCE WITH INDUSTRY STANDARD. Contractor shall provide services acceptable to City in
strict conformance with the Agreement. Contractor shall also provide in accordance with the standards
customarily called for under this Agreement using the degree of care and skill ordinarily exercised by
reputable providers of such services. Where approval by the City, the City Manager, the Mayor, or other
representative of City is required, it is understood to be general approval only and does not relieve
Contractor of responsibility for complying with all applicable laws, codes, policies, regulations, and
good business practices.
9. INDEPENDENT CONTRACTOR.
a. Contractor is and shall at all times remain as to the City a wholly independent contractor.
The personnel performing the Services under this Agreement on behalf of Contractor shall
at all times be under Contractor's exclusive direction and control. Neither City nor any of
its officers, employees, or agents shall have control over the conduct of Contractor or any
of Contractor's officers, employees, or agents, except as set forth in this Agreement.
Contractor shall not at any time or in any manner represent that it or any of its officers,
employees, or agents are in any manner officers, employees, or agents of the City.
Contractor shall not incur or have the power to incur any debt, obligation, or liability
whatsoever against City, or bind City in any manner.
b. No employee benefits shall be available to Contractor in connection with the performance
of this Agreement. Except for the fees paid to Contractor as provided in the Agreement,
City shall not pay salaries, wages, or other compensation to Contractor for performing the
Services hereunder for City. City shall not be liable for compensation or indemnification
to Contractor for injury or sickness arising out of performing services hereunder.
c. Contractor/Contractor’s duties and services under this agreement shall not include
preparing or assisting the public entity with any portion of the public entity’s preparation
of a request for proposals, request for qualifications, or any other solicitation regarding a
subsequent or additional contract with the public entity. Notwithstanding the foregoing,
Contractor is specifically engaged to assist the City with the Recordkeeper RFP,
evaluation, selection, contract negotiation, conversion support, and ongoing vendor
monitoring. The City retains final procurement authority; Contractor shall ensure that all
bidders have equal access to the same information and shall adhere to City purchasing
rules.
10. 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
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damaged resulting from Contractor’s operations, it shall be replaced or restored at Contractor’s
expense. The City’s facilities shall be replaced or restored to a condition as good as when the
Contractor began the work.
11. IMMIGRATION ACT OF 1986. The Contractor warrants on behalf of itself and all subcontractors
engaged for the performance of the Services that only persons authorized to work in the United
States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws
shall be employed in the performance of the Services hereunder.
12. NON-DISCRIMINATION. In the performance of the Services, the Contractor agrees that it will not
engage in, nor permit such subcontractors as it may employ, to engage in discrimination in
employment of persons because of age, race, color, sex, national origin or ancestry, sexual
orientation, or religion of such persons.
13. PAYMENT TERMS. The City’s payment terms are 30 days from the receipt of an original invoice
and acceptance by the City of the materials, supplies, equipment, or services provided by the
Contractor (Net 30). Contractor will submit invoices monthly for actual services performed.
Invoices shall be submitted on or about the first business day of each month, or as soon thereafter
as practical, for services provided in the previous month. Final June invoices shall be received no
later than the 5th business day of July to meet City fiscal year-end deadlines. Payment shall be
made within thirty (30) days of receipt of each invoice as to all non-disputed fees. If the City
disputes any of Contractor's fees it shall give written notice to Contractor within thirty (30) days
of receipt of an invoice of any disputed fees set forth on the invoice. Any final payment under
this Agreement shall be made within forty-five (45) days of receipt of an invoice, therefore.
14. INSPECTION. City shall at all times have the right to inspect the work being done under this
Agreement and Contractor shall furnish City with every reasonable opportunity and assistance
required for City to ascertain that the Services of the Contractor are being performed in
accordance with the requirements and intentions of this Agreement. All work done, and all
materials furnished, if any, shall be subject to the City’s inspection and approval. The inspection
of such work shall not relieve Contractor of any of its obligations under the Agreement.
15. RELEASE OF INFORMATION.
a. All information gained by Contractor in performance of this Agreement shall be
considered confidential and shall not be released by Contractor without City's prior
written authorization. Contractor, its officers, employees, agents, or subcontractors, shall
not, without written authorization from the City Manager or unless requested by the City
Attorney, voluntarily provide declarations, letters of support, testimony at depositions,
response to interrogatories, or other information concerning the work performed under
this Agreement. Response to a subpoena or court order shall not be considered
"voluntary" provided Contractor gives City notice of such court order or subpoena.
b. Contractor shall promptly notify City should Contractor, its officers, employees, agents,
or subcontractors be served with any summons, complaint, subpoena, notice of
deposition, request for documents, interrogatories, request for admissions, or other
discovery request (“Discovery”), court order, or subpoena from any person or party
regarding this Agreement, unless the City is a party to any lawsuit, arbitration, or
administrative proceeding connected to such Discovery, or unless Contractor is
prohibited by law from informing the City of such Discovery. City retains the right, but has
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no obligation, to represent Contractor and/or be present at any deposition, hearing, or
similar proceeding as allowed by law. Unless City is a party to the lawsuit, arbitration, or
administrative proceeding and is averse to Contractor in such proceeding, Contractor
agrees to cooperate fully with City and to provide the opportunity to review any response
to Discovery requests provided by Contractor. However, City's right to review any such
response does not imply or mean the right by City to control, direct, or rewrite said
response.
16. OWNERSHIP OF DOCUMENTS.
a. Contractor shall maintain complete and accurate records with respect to sales, costs,
expenses, receipts, and other such information required by City that relate to the
performance of the Services under this Agreement. Contractor shall maintain adequate
records of services provided in sufficient detail to permit an evaluation of services. All
such records shall be maintained in accordance with generally accepted accounting
principles and shall be clearly identified and readily accessible. Contractor shall provide
free access to the representatives of City or its designees at reasonable times to such
books and records; shall give City the right to examine and audit said books and records;
shall permit City to make transcripts or copies therefrom as necessary; and shall allow
inspection of all work, data, documents, proceedings, and activities related to this
Agreement. Such records, together with supporting documents, shall be maintained for a
period of three (3) years after receipt of final payment.
b. Upon completion of, or in the event of termination or suspension of this Agreement, all
original documents, designs, drawings, maps, models, computer files, surveys, notes, and
other documents prepared in the course of providing the Services under this Agreement
shall become the sole property of the City and may be used, reused, or otherwise
disposed of by the City without the permission of the Contractor. With respect to
computer files, Contractor shall make available to the City, at the Contractor's office and
upon reasonable written request by the City, the necessary computer software and
hardware for purposes of accessing, compiling, transferring, copying and/or printing
computer files. Contractor hereby grants to City all right, title, and interest, including any
copyright, in and to the documents, designs, drawings, maps, models, computer files,
surveys, notes, and other documents prepared by Contractor in the course of providing
the Services under this Agreement.
17. INDEMNIFICATION AND DEFENSE. To the fullest extent permitted by law (including, but not
limited to California Civil Code Sections 2782 and 2782.8), 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 passive negligence, except for such loss or damage arising from the sole or
active negligence or willful misconduct of the City. In the event the City Indemnitees are made a
party to any action, lawsuit, or other adversarial proceeding arising from 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 the ir costs of defense, including
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reasonable legal fees, incurred in defense of such claims. 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 the
completion of the services or the termination of this contract. The provisions of this section are
not limited by and do not affect the provisions of this contract relating to insurance.
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 sub-Contractors/
subcontractors.
18. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE.
a. The City may at any time, for any reason, with or without cause, suspend or terminate this
Agreement, or any portion hereof, by serving upon the Contractor at least thirty (30) days prior
written notice. Upon receipt of said notice, the Contractor shall immediately cease all work
under this Agreement, unless the notice provides otherwise. If the City suspends or terminates
a portion of this Agreement such suspension or termination shall not make void or invalidate
the remainder of this Agreement.
b. In the event this Agreement is terminated pursuant to this Section, the City shall pay to
Contractor the actual value of the work performed up to the time of termination, provided that
the work performed is of value to the City. Upon termination of the Agreement pursuant to
this Section, the Contractor will submit an invoice to the City pursuant to Section 14.
19. TERMINATION FOR CAUSE. If, during the term of the Agreement, the City determines the
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 ten (10) calendar day notice of time thereafter in which to perform said work or cure the
deficiency.
a. If the Contractor has not performed the work or cured the deficiency within the ten (10)
days specified in the notice, such shall constitute a breach of the Agreement and the City
may terminate the Agreement immediately by written notice to the Contractor to said
effect (“Notice of Termination”). Thereafter, neither party shall have any further duties,
obligations, responsibilities, or rights under the Agreement except to comply with the
obligations upon termination.
b. In said event, the 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 or services 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
scope.
c. The City reserves the right to delay such payment until completion or confirmed
abandonment of the project, as may be determined in the City’s sole discretion, so as to
permit a full and complete accounting of costs. In no event, however, shall the Contractor
be entitled to receive in excess of the not to exceed amount shown in this Agreement.
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20. INSURANCE. Contractor shall maintain prior to the beginning of and for the duration of this Agreement
insurance coverage as specified in Exhibit B attached to and made part of this Agreement.
21. BUSINESS LICENSE & TAX. The Contractor must have a valid City of San Luis Obispo
business license & tax certificate before execution of the contract. Additional information
regarding the City’s business tax program may be obtained by calling (805) 781-7134.
22. SAFETY PROVISIONS. The Contractor shall conform to the rules and regulations pertaining to
safety established by OSHA and the California Division of Industrial Safety.
23. UNDUE INFLUENCE. Contractor declares and warrants that no undue influence or pressure was used
against or in concert with any officer or employee of the City in connection with the award, terms or
implementation of this Agreement, including any method of coercion, confidential financial
arrangement, or financial inducement. No officer or employee of the City has or will receive
compensation, directly or indirectly, from Contractor, or from any officer, employee or agent of
Contractor, in connection with the award of this Agreement or any work to be conducted as a result of
this Agreement. Violation of this Section shall be a material breach of this Agreement entitling the City
to any and all remedies at law or in equity.
24. 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.
a. As required above, before retaining or contracting with any subcontractor for any services
under this Agreement, City must consent to such assignment of performance in writing. For
City to evaluate such proposed assignment, Contractor shall provide City with the identity of
the proposed subcontractor, a copy of the proposed written contract between Contractor and
such subcontractor, which shall include an indemnity provision similar to the one provided
herein and identifying City as an indemnified party, or an incorporation of the indemnity
provision provided herein, and proof that such proposed subcontractor carries insurance at
least equal to that required by this Agreement or obtain a written waiver from City for such
insurance.
25. AMENDMENT. Any amendment, modification, or variation from the terms of this Agreement shall be
in writing and shall be effective only upon approval by the appropriate review authority according to
the City’s Financial Management Manual. Contractor shall not be compensated for any services
rendered in connection with its performance of this Agreement which are in addition to those set forth
herein, unless such additional services are authorized by the City in advance and in writing.
26. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein
by reference, shall constitute the complete Agreement between the Parties hereto. No oral agreement,
understanding, or representation not reduced to writing and specifically incorporated herein shall be
of any force or effect, nor shall any such oral Agreement, understanding, or representation be binding
upon the Parties hereto. Each party is entering into this Agreement based solely upon the
representations set forth herein and upon each party's own independent investigation of any and all
facts such party deems material.
27. NOTICE. All notices to the Parties hereto under this Agreement shall be in writing and shall be sent
either by (i) personal service, (ii) delivery by a reputable document delivery service, such as, but not
limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) United
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States Mail, certified, postage prepaid, return receipt requested. All such notices shall be delivered to
the addressee or addressed as set forth below:
To City: City of San Luis Obispo
990 Palm St, San Luis Obispo, CA 93401
Attention: Human Resources
To Contractor: [Name]
[Mailing Address]
28. 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.
29. 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 CONTRACTOR
_______________________________
By: [Name]
Its: [Title of City Manager or Department Head]
_______________________________
By: [Name]
Its: [Title]
APPROVED AS TO FORM:
_______________________________
By: J. Christine Dietrick, City Attorney
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EXHIBIT B: INSURANCE REQUIREMENTS FOR PROFESSIONAL SERVICES
Without limiting CONSULTANT’s indemnification of CITY, and prior to commencement of Work,
CONSULTANT shall obtain, provide and maintain at its own expense during the term of this AGREEMENT,
policies of insurance of the type and amounts described below, and in a form satisfactory to CITY.
General liability insurance. CONSULTANT shall maintain commercial general liability insurance with
coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than
$1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property
damage. The policy must include contractual liability that has not been amended. Any endorsement
restricting standard ISO “insured contract” language will not be accepted.
Professional liability (errors & omissions) insurance. CONSULTANT shall maintain professional liability
insurance that covers the Services to be performed in connection with this AGREEMENT, in the minimum
amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or
retroactive date must be before the effective date of this AGREEMENT and CONSULTANT agrees to
maintain continuous coverage through a period no less than three (3) years after completion of the
services required by this AGREEMENT.
Workers’ compensation insurance. CONSULTANT shall maintain Workers’ Compensation Insurance
(Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). CONSULTANT
shall submit to CITY, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor
of CITY, its officers, agents, employees, and volunteers.
Proof of insurance. CONSULTANT shall provide certificates of insurance to CITY as evidence of the
insurance coverage required herein, along with a waiver of subrogation endorsement for workers’
compensation. Insurance certificates and endorsements must be approved by CITY’s Risk Manager prior
to commencement of performance. Current certification of insurance shall be kept on file with CITY at all
times during the term of this contract. CITY reserves the right to require complete, certified copies of all
required insurance policies, at any time.
Duration of coverage. CONSULTANT shall procure and maintain for the duration of the contract insurance
against claims for injuries to persons or damages to property, which may arise from or in connection with
the performance of the Work hereunder by CONSULTANT, his agents, representatives, employees or
subconsultants.
Primary/noncontributing. Coverage provided by CONSULTANT shall be primary and any insurance or self-
insurance procured or maintained by CITY shall not be required to contribute with it. The limits of
insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance.
Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage
shall also apply on a primary and non-contributory basis for the benefit of CITY before the CITY’s own
insurance or self-insurance shall be called upon to protect it as a named insured.
CITY’s rights of enforcement. In the event any policy of insurance required under this AGREEMENT does
not comply with these specifications or is canceled and not replaced, CITY has the right but not the duty
to obtain the insurance it deems necessary, and any premium paid by CITY will be promptly reimbursed
by CONSULTANT or CITY will withhold amounts sufficient to pay premium from CONSULTANT payments.
In the alternative, CITY may cancel this AGREEMENT.
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Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized
by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line
Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial
Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless
otherwise approved by the CITY’s Risk Manager.
Waiver of subrogation. All insurance coverage maintained or procured pursuant to this AGREEMENT shall
be endorsed to waive subrogation against CITY, its elected or appointed officers, agents, officials,
employees and volunteers or shall specifically allow CONSULTANT or others providing insurance evidence
in compliance with these specifications to waive their right of recovery prior to a loss. CONSULTANT
hereby waives its own right of recovery against CITY and shall require similar written express waivers and
insurance clauses from each of its subconsultants.
Enforcement of contract provisions (non estoppel). CONSULTANT acknowledges and agrees that any
actual or alleged failure on the part of the CITY to inform CONSULTANT of non-compliance with any
requirement imposes no additional obligations on the CITY nor does it waive any rights hereunder.
Requirements not limiting. Requirements of specific coverage features or limits contained in this Section
are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage
normally provided by any insurance. Specific reference to a given coverage feature is for purposes of
clarification only as it pertains to a given issue and is not intended by any party or insured to be all
inclusive, or to the exclusion of other coverage, or a waiver of any type. If the CONSULTANT maintains
higher limits than the minimums shown above, the CITY requires and shall be entitled to coverage for the
higher limits maintained by the CONSULTANT. Any available insurance proceeds in excess of the specified
minimum limits of insurance and coverage shall be available to the CITY.
Notice of cancellation. CONSULTANT agrees to oblige its insurance agent or broker and insurers to provide
to CITY with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice
is required) or nonrenewal of coverage for each required coverage.
Additional insured status. General liability policies shall provide or be endorsed to provide that CITY and
its officers, officials, employees, and agents, and volunteers shall be additional insureds under such
policies. This provision shall also apply to any excess/umbrella liability policies.
Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in
compliance with these requirements if they include any limiting endorsement of any kind that has not
been first submitted to CITY and approved of in writing.
Separation of insureds. A severability of interests provision must apply for all additional insureds
ensuring that CONSULTANT’s insurance shall apply separately to each insured against whom claim is made
or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain
any cross-liability exclusions.
Pass through clause. CONSULTANT agrees to ensure that its subconsultants, subcontractors, and any
other party involved with the project who is brought onto or involved in the project by CONSULTANT,
provide the same minimum insurance coverage and endorsements required of CONSULTANT.
CONSULTANT agrees to monitor and review all such coverage and assumes all responsibility for ensuring
that such coverage is provided in conformity with the requirements of this section. CONSULTANT agrees
that upon request, all agreements with consultants, subcontractors, and others engaged in the project
will be submitted to CITY for review.
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CITY’s right to revise specifications. The CITY reserves the right at any time during the term of the
contract to change the amounts and types of insurance required by giving the CONSULTANT ninety (90)
days advance written notice of such change. If such change results in substantial additional cost to the
CONSULTANT, the CITY and CONSULTANT may renegotiate CONSULTANT’s compensation.
Self-insured retentions. Any self-insured retentions must be declared to and approved by CITY. CITY
reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a
deductible. Self-insurance will not be considered to comply with these specifications unless approved by
CITY.
Timely notice of claims. CONSULTANT shall give CITY prompt and timely notice of claims made or suits
instituted that arise out of or result from CONSULTANT’s performance under this AGREEMENT, and that
involve or may involve coverage under any of the required liability policies.
Additional insurance. CONSULTANT shall also procure and maintain, at its own cost and expense, any
additional kinds of insurance, which in its own judgment may be necessary for its proper protection and
prosecution of the work.
Verification of Coverage. 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.
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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 Proposals / Qualifications for Retirement Plan Consulting Services
The City of San Luis Obispo is requesting sealed proposals for retirement plan consulting services.
All firms interested in receiving further correspondence regarding this Request for Proposals (RFP) will be
required to complete a free registration using BidNet Direct (www.bidnetdirect.com/).
All proposals must be received via BidNet Direct by [DATE TBD] at 3 p.m., when they will then be opened
electronically via BidNet Direct on the proposal end date and time.
The preferred method for bid submission is electronic via BidNet Direct. However, if you wish to submit
a paper copy, please submit it in a sealed envelope plainly marked “Proposal for Technology Consulting
Services,” to the Department of Finance, at 990 Palm Street, San Luis Obispo, CA, 93401, at or before 3pm
on [DATE TBD]
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.
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TABLE OF CONTENTS
A. INTRODUCTION......................................................................................................................................... 2
B. SCOPE OF SERVICES .................................................................................................................................. 3
C. MINIMUM REQUIREMENTS ...................................................................................................................... 3
D. PROPOSAL CONTENT ............................................................................................................................... 5
E. GENERAL TERMS AND CONDITIONS ......................................................................................................... 8
F. CONTRACT AWARD AND EXECUTION ....................................................................................................... 9
G. SPECIAL TERMS AND CONDITIONS ........................................................................................................ 10
H. FORM OF AGREEMENT .......................................................................................................................... 10
I. PROPOSAL EVALUATION, SELECTION AND AWARD SCHEDULE .............................................................. 12
PROPOSAL FORM: REFERENCES .................................................................................................................. 14
PROPOSAL FORM: STATEMENT OF PAST CONTRACT DISQUALIFICATIONS................................................ 16
PROPOSAL FORM: PRICING REQUEST ......................................................................................................... 17
EXHIBIT A: FORM OF AGREEMENT .............................................................................................................. 20
EXHIBIT B: INSURANCE REQUIREMENTS FOR PROFESSIONAL SERVICES .................................................... 27
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A. INTRODUCTION
Objective
The City of San Luis Obispo (hereinafter “City” or “Plan Sponsor”) is soliciting proposals from qualified
Recordkeepers (hereinafter “Firm(s)” or “Respondent(s)”) to provide retirement plan administration,
record keeping, education, communications, and related services for the plan types listed below
(hereinafter “Plan(s)”). The City’s goal is to provide retirement plan participants with high quality service,
education and investment options at a reasonable cost. The City will use the results of this RFP to award
a service agreement that will include consolidation of all transferable Plan assets beginning on or about
July 1, 2026.
The primary goals of this Request for Proposal (hereinafter “RFP”) process include the following:
- Enhancing participant retirement outcomes;
- Improving participant education and communication;
- Improvement in operational efficiencies and automation of the Plan, including routine participant
and/or beneficiary requests;
- Reducing participant and Plan expenses through high value, low-cost, transparent fee structures;
- A dedicated and proactive service team who can resolve issues quickly;
- Robust and easy-to-use participant and plan sponsor websites, including state-of-the-art
educational, savings analysis, and data reporting tools;
- Open architecture investment platform without any proprietary fund requirements.
Proposals and selection will be completed the City’s Deferred Compensation Employee Committee, which
consists of members from each of the City’s six (6) bargaining units in consultation with the City’s Plan
Consultant and Fiduciary Investment Advisor (hereinafter “City’s Consultant”).
Plan Sponsor Overview
The City of San Luis Obispo (hereinafter “City” or “Plan Sponsor”) is nestled on the Central Coast of
California, halfway between Los Angeles and San Francisco. With approximately 490 regular employees,
the City’s ten departments serve the public in carrying out the policies and programs prioritized by the
City Council, and implementing the City's charter and municipal code. The City’s mission statement
explains the organization's focus in carrying its responsibilities. Its organizational values guide and inspire
the day to day operations of the City.
The City’s Human Resources department is responsible for administering employee benefits programs,
including retirement plans. The City currently has four recordkeepers for its deferred compensation plans,
and intends to consolidate all assets to a single recordkeeper. Once a recordkeeper is selected, the plan
conversion and consolidation process will begin. The City will utilize a consultant to assist in that process,
as well as provide ongoing fiduciary support. The City is committed to providing our employees with
robust and well-managed retirement savings options, and this assignment will be critical in ensuring our
plans remain competitive, compliant, and optimally designed.
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Plan Sponsor, Service Provider and Payroll information
Service Providers
Current Recordkeepers Empower, MissionSquare, Nationwide, PARS (serving as a
third-party administrator for John Hancock).
Plan Consultant and Fiduciary
Investment Advisor
TBD – TO BE COMPLETED ONCE CONSULTANT SELECTED
Payroll Information
Payroll and HRIS System Oracle Cloud
Payroll data processing City payroll staff generates a file that is uploaded to the
Recordkeeper portal bi-weekly. HR processes new
enrollments and address/beneficiary changes directly with
the Recordkeeper via portal or e-mail.
Plan statistics and additional information
[TO BE REVISED PRIOR TO RFP ISSUANCE]
The following is the current breakdown of participants and assets in the City’s Plans, as of September 5,
2025:
Plan Type Participants with a
Balance Asset Balance
457(b) 462 $51,350,774
401(a) 100 $2,844,245
Retiree Health Savings (RHS) 213 $1,824,394
457(b) PT-OBRA 2418 $1,465,029
Totals 3,193 $57,484,442
Note: Some City employees participate in ROTH IRA or Traditional IRA through a current recordkeeper.
However, they are individual plans, not City sponsored plans.
B. SCOPE OF SERVICES
Respondents should be able to provide industry-leading retirement plan administration, record keeping,
education, and related services for the City’s deferred compensation plans. Further detail is provided in
the Plan Statistics and Additional information section.
C. MINIMUM REQUIREMENTS
[TO BE REVISED PRIOR TO RFP ISSUANCE]
Plan Sponsor has the following expectations for the successful respondent.
1. Respondents must have a minimum of ten (10) years of experience administering governmental
Section 457 deferred compensation plans and must currently provide sole-provider
administration to a minimum of twenty (20) Section 457 deferred compensation retirement plans
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with average assets of at least $50 million each.
2. Any contract or service agreement must stipulate that there will be no front-end charges and/or
no back-end charges. In addition, there will be no restrictions or penalties associated with any
Plan- or participant-initiated transfers or withdrawals (including contract termination), with the
exception of capital preservation (stable value and/or Fixed or General Account) equity wash
and/or put provisions, and/or mutual fund specific short-term trading fees.
3. The Proposing Firm must accurately and fully disclose all fund expense and revenue sharing
arrangements associated with all funds being offered within the Plans. Fixed or General Account
products will not be excluded from this requirement. Proposing Firms offering such products must
provide an accurate assessment of product expenses and revenue remitted to the Proposing Firm.
4. The Proposing Firm must accurately and fully disclose all expenses and revenue associated with
any service made available under the Plans. This includes services such as managed accounts,
investment advice, financial planning and/or self-directed brokerage accounts.
5. The Proposing Firm must agree, under contract, not to sell and/or promote products not directly
affiliated with the Plan(s) unless given specific, written authorization by the Committee to do so.
6. Respondents must commit to providing at least four (4) full days of onsite one-on-one sessions,
with the ability to provide additional virtual and one-on-one sessions upon plan sponsor request.
7. Upon award of the contract, the selected Proposing Firm must be duly qualified to do business in
the State of California.
8. The Proposing Firm must be able to transition and continue administration of existing Plan loans.
9. The organization must be able to offer a self-directed brokerage option.
10. The Proposing Firm must be able to accommodate the joint administration of the Plans as
applicable and must be able to facilitate appropriate payroll processing, applicable account
transfers, and separate recordkeeping for each of the Plans.
11. The Proposing Firm must be willing to have representatives attend Committee meetings in person
as required (no more than quarterly).
12. The Proposing Firm must have knowledge of and comply with all applicable County, State of
California and federal regulations regarding governmental retirement plans and investment
options. All applicable laws of the City and the State of California, whether substantive or
procedural, shall apply to this contract, and all statutory, charter, and ordinance provisions that
are applicable to City contracts shall be followed with respect to this contract.
It is assumed that, by submitting a response to this RFP, your organization will conform to the Minimum
Qualifications and specifications (unless specifically adjusted/waived per written addendum). Proposing
Firms must clearly indicate any requests for additions, modifications or deletions as part of this process.
The City will respond to such submittals but does not guarantee any waiving of these minimum
requirements.
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D. PROPOSAL CONTENT
[TO BE REVISED PRIOR TO RFP ISSUANCE]
Proposals must include the following information:
Submittal Forms
1. Cover letter
a. Submit a letter on your company letterhead that includes a list of all forms submitted.
The letter should be signed by an officer authorized to bind the proposer to all content in
the proposal, and shall include the name, address, phone number and e-mail address of
the person(s) to contact who will be authorized to represent the proposal.
2. Recordkeeper Profile
a. Please provide a record-keeper profile, including:
i. Firm name, address, and contact information. (Please designate a single point
of contact for purposes of interactions involving this RFP.)
ii. Type of firm: individual, partnership, corporation, or other entity.
iii. History of the firm, including number of years in existence, number of years
providing record-keeping services to public agencies, location of offices, etc.
3. Qualification and Experience Summary
a. Please provide an explanation of how you meet each of the minimum qualifications set
forth in Section C: Minimum Qualifications.
b. Please describe examples of your experience as a recordkeeper for the plan types listed
above, and how many years have you been providing recordkeeping services for each plan
type.
c. Please describe why you believe your firm would be a good fit as the City’s Recordkeeper.
d. How many transitions has your firm completed from the City’s current recordkeepers in
the last 24 months?
e. Please acknowledge whether your proposed services can satisfy each of the following:
i. No front or back-end fees
ii. Certified Financial Planning (CFP) services
iii. Quarterly onsite in-person visits by a local representative of the record-
keeper
iv. Compliance with all County, State and Federal regulations
v. No selling or promoting other record-keeper products unless previously
approved by City
vi. Fee transparency and disclosure
vii. Ability to provide open architecture platforms, websites, phone apps, and
service representatives
viii. Ability to manage small and large plans
f. Sample login
i. Please provide demonstration logins for both the Plan Sponsor website and
Participant website.
4. Work Plan
a. Plan Sponsor Service team
i. Describe how the client service team will be structured for this engagement.
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ii. Will the client service team be dedicated or pooled?
iii. Provide a brief biography for the core team, including role on the service team,
role in the firm, industry experience, firm experience, location, and other
relevant experience and current and at-capacity caseloads for each member.
b. Information or data to be provided by the City.
a. Example: When and what type of payroll and HRIS test data be required?
c. Information or data to be provided by the Recordkeeper.
d. Description of assumptions critical to development of the response which may impact
cost or scope.
e. Any other information that would assist us in making this contract award decision.
5. Pricing Request Form
a. Please complete the pricing request form in its entirety and attach a narrative that clearly
identifies the services including in the pricing, well as disclosure of any and all other
services/transactions with additional ER or EE fees clearly identified.
b. Please provide pricing based on a bundled, open architecture platform and without an
advisor fee. Please do not provide any suggested line-ups other than the options
requested below for the stable value/fixed. If a fund in the menu generates institutional
revenue to your company there should be no change in the plan asset charge if the client
makes a fund change in the future.
c. It is required that there is no determined contract/agreement period with the record
keeper. All contracts/agreements must be open-ended with the ability of the City to
terminate the contract/agreement.
d. If there are implementation fees, please specify.
e. If there are customization fees, please specify.
f. Fee terms. Please provide detail regarding any terms and conditions related to the
proposed pricing.
i. How long will the quoted fees remain in effect after the initial contract date?
ii. How often does your firm typically adjust fees? What is the basis for the adjustment?
iii. What contract termination provisions do you typically require?
iv. Are there fees associated with converting to another recordkeeper?
v. Under what conditions would the quoted fees change (i.e. if there was a significant
change to plan design, asset size, etc)?
g. Important Notes to be Reviewed Before Completing Pricing Proposals
i. The pricing/fee and credited rates (products) are to be the same for both the
457(b) and 401(a) Plans.It is optional to provide a solution for the HRA/RHS
and 457 PT-OBRA plans. If you are providing a proposal, the product, fees
and credit can be different from what is provided for the 457(b) & 401(a)
Plans. Please include an affirmative statement as to whether you are
providing a proposal for the HRA/RHS and PT-OBRA plans as part of your
response.
ii. For all Asset charges with your managed account solution, assume voluntary
participant usage only. There can be no default or QDIA for managed
accounts.
iii. Current Credited Rates provided must be net of management fees and any
record keeping revenue retained by you, and gross of your Asset Charge.
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iv. A Fixed Product Data sheet is included with this RFP to be provided for any
stable value/fixed product proposed. If it is not provided or not complete in
our opinion, your proposal may not be considered.
v. Note that Target Date conversions will not be accepted.
f. Additional Fees and Services
Please verify your firm can provide all of the following services and whether they are
covered by the quoted fees or if there are any additional fees per service.
Recordkeeping and Administration
- Eligibility Tracking
- Enrollment Processing
- Vesting Tracking
- Hardship Processing
- In-service Processing
- RMD Processing and Communication
- Termination distributions (lump sum)
- Termination distributions (installment)
- Mandatory de minimis distributions
- Address maintenance for terminated employees
- Beneficiary maintenance
- DRO qualification
- DRO processing
- 1099-Rs
Compliance
- Plan document restatement at transition
- Plan document restatement project outside of transition
- Required plan document amendments
- Plan Sponsor requested plan document amendments
- Summary Plan Description
- Limits monitoring
- Required employee notifications
Participant Support
- Participant statements
- Core communication materials
- Targeted messaging
- Education meetings (beyond required)
- Participant advice (for non-managed accounts)
Plan Sponsor Support
- Plan sponsor meeting(s)
- Annual plan review meetings
Other
- Trust / custody services
- Fulfillment, postage and handling
6. Certificate of insurance.
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a. Please provide a certificate of insurance meeting the requirements set forth in the sample
Professional Services Agreement in Exhibit B.
i. The insurance carrier and its A.M. Best rating.
ii. Scope of coverage and limits.
iii. 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; as discussed under paragraph 12 below,
endorsements are not required until contract award.
7. References from at least three public agencies, preferably California cities that are comparable
to the City of San Luis Obispo, for whom you have provided similar services as specified in the
RFP.
8. Statement and explanation of any instances where your firm or sub-consultant has been
removed from a project or disqualified from proposing on a project.
E. GENERAL TERMS AND CONDITIONS
PROPOSAL REQUIREMENTS
1. Requirement to Meet All Provisions. Each individual or firm submitting a proposal (bidder) shall
meet all the terms, and conditions of the Request for Proposals (RFP) project package. By virtue
of its proposal submittal, the bidder acknowledges agreement with and acceptance of all
provisions of the RFP specifications.
2. Proposal Submittal. Each proposal must be submitted on the form(s) provided in the
specifications and accompanied by any other required submittals or supplemental materials.
Proposal documents shall be submitted electronically via BidNet. However, if you can’t submit
electronically in BidNet., please email a copy to the contacts listed in the RFP package, if you can’t
email it, please send a copy in a sealed envelope to the Department of Finance, City of San Luis
Obispo, 990 Palm Street, San Luis Obispo, CA, 93401. To guard against premature opening, the
proposal should be clearly labeled with the proposal title, project number, name of bidder, and
date and time of proposal opening. No fax submittals will be accepted.
3. Proposal Length. Proposal length should only be as long as required to be responsive to the RFP,
including attachments and supplemental materials.3.
4. Submittal of One Proposal Only. No individual or business entity of any kind shall be allowed to
make or file, or to be interested as the primary submitter in more than one proposal, except an
alternative proposal when specifically requested; however, an individual or business entity that
has submitted a sub-proposal to a bidder submitting a proposal, or who has quoted prices on
materials to such bidder, is not thereby disqualified from submitting a sub-proposal or from
quoting prices to other bidders submitting proposals.
5. Communications. All requests for information submitted in writing before the submission
deadline will receive a written response from the City within five (5) business days. Telephone
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communications with City staff are not encouraged but will be permitted. However, any such oral
communication shall not be binding on the City.
6. Ownership of Materials. All original drawings, plan documents and other materials prepared by
or in possession of the Contractor as part of the work or services under these specifications shall
become the permanent property of the City and shall be delivered to the City upon demand.
7. Release of Reports and Information. Any reports, information, data, or other material given to,
prepared by or assembled by the Contractor as part of the work or services under these
specifications shall be the property of the City and shall not be made available to any individual
or organization by the Contractor without the prior written approval of the City.
8. Copies of Reports and Information. If the City requests additional copies of reports, drawings,
specifications, or any other material in addition to what the Contractor is required to furnish in
limited quantities as part of the work or services under these specifications, the Contractor shall
provide such additional copies as are requested, and City shall compensate the Contractor for the
costs of duplicating of such copies at the Contractor's direct expense.
9. Required Deliverable Products. The Contractor will be required to provide:
a. One electronic submission - digital-ready original .pdf of all final documents. If you wish to file
a paper copy, please submit in sealed envelope to the address provided in the RFP.
b. Corresponding computer files compatible with the following programs whenever possible
unless otherwise directed by the project manager:
i. Word Processing: MS Word
ii. Spreadsheets: MS Excel
c. City staff will review any documents or materials provided by the Contractor and, where
necessary, the Contractor will be required to respond to staff comments and make such
changes as deemed appropriate.
F. CONTRACT AWARD AND EXECUTION
1. Proposal Retention and Award. The City reserves the right to retain all proposals for a period of
60 days for examination and comparison. The City also reserves the right to waive non-substantial
irregularities in any proposal, to reject any or all proposals, to reject or delete one part of a proposal
and accept the other, except to the extent that proposals are qualified by specific limitations. See
the “special terms and conditions” in Section C of these specifications for proposal evaluation and
contract award criteria.
2. Competency and Responsibility of Bidder. The City reserves full discretion to determine the
competence and responsibility, professionally and/or financially, of bidders. Bidders will provide,
in a timely manner, all information that the City deems necessary to make such a decision.
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3. Contract Requirement. The bidder to whom award is made (Contractor) shall execute a written
contract with the City within thirty (30) calendar days after notice of the award. The contract shall
be made in the form adopted by the City and incorporated in these specifications.
4. Contract terms and conditions. The City’s contract terms and conditions that Consultant will be
expected to execute and be bound by are attached hereto as Exhibit A.
G. SPECIAL TERMS AND CONDITIONS
1. Contract Award. The contract will be awarded to the most qualified bidder that, in the City’s sole
discretion in accordance with the Proposal Evaluation and Selection criteria set forth herein (if applicable),
provides the best proposal.
2. Labor Actions. In the event that the successful proposer is experiencing a labor action at the time of
contract award (or if its suppliers or subcontractors are experiencing such a labor action), the City reserves
the right to declare said proposer is no longer the most qualified, responsive proposer and to accept the
next acceptable proposal from a proposer that is not experiencing a labor action, and to declare it to be
the most qualified, responsive proposer.
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; any bid security will be forfeited
in accordance with the special terms and conditions if a proposer's bond or security is required; and an
award may be made to the next lowest responsible, responsive proposer who shall fulfill every stipulation
as if it were the party to whom the first award was made.
4. Contract Term. The supplies or services identified in this specification will be used by the City for five
years. The prices quoted for these items must be valid for the entire period indicated above unless
otherwise conditioned by the proposer in its proposal.
5. Contract Extension. The term of the contract may be extended by mutual consent for an additional
one-year.
6. Start of Work. Work on this project shall begin immediately after contract execution, unless otherwise
negotiated with City by mutual agreement.
7. Submittal of References. Each proposer shall submit a statement of qualifications and references on
the form provided in the RFP package.
8. 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.
H. FORM OF AGREEMENT
[TO BE REVISED PRIOR TO RFP ISSUANCE]
The City desires to begin work soon after selecting the preferred respondent. The City’s standard contract
terms are set forth in Exhibit A. Respondents should include a copy of their proposed service agreement
with their submission, and include the following provisions. Please be advised that consultant’s requested
changes to the City’s terms and conditions will be considered by City staff when scoring and determining
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the competency and responsibility of the proposer.
Service Agreement
1. Standard of Care
a. Recordkeeping agreement should set forth a standard of care for non-fiduciary services that
meets or exceeds industry standards
b. Recordkeeper will comply with all applicable laws regarding the services, and maintain any
registrations required of the recordkeeper
2. Limitations of Liability / Indemnities
a. No dollar amount for limitation of liability
b. Indemnity from third party claims applies in the event of recordkeeper’s breach of agreement,
negligence, gross negligence, or willful misconduct
c. Recordkeeper provides a full indemnity to IP infringement claims relating to recordkeeper’s
services
3. Cybersecurity / Data Protection
a. Prompt notification will be provided of any security incident involving the plan (in no event later
than 72 hours) and recordkeeper will provide appropriate remediation for any cybersecurity
incident, such as credit monitoring services at its own costs
b. Recordkeeper will notify the city of any security incident or data breach affecting its operations
or services regardless of the impact on the city. Timely notification should be provided no later
than 30 days with regular status updates until the situation is resolved.
c. Vendors hired by recordkeeper are subject to the same cybersecurity/data protection standards
as the recordkeeper.
d. Participant data will not be sold or used for non-plan purposes (e.g., cross-selling) except to the
extent specifically authorized by the agreement or by the employer.
e. All Personally Identifiable Information pertaining to data subjects shall be maintained according
to the legally required notice provided when the data was collected. Any deviation from this
notice requires formal disclosure to and consent from affected data subjects prior to any
additional processing of Personally Identifiable Information.
f. Representation that recordkeeper is fully compliant with US Department of Labor cybersecurity
guidance
g. Representation that the services provided will comply with the California Consumer Privacy Rights
Act (CPRA)
h. Provide Systems and Organization Controls (SOC 2 Type 2) report at least every two years
4. Error Correction
a. Recordkeeper will take appropriate steps to correct any errors relating to services in
accordance with any applicable IRS, DOL and State of California rules.
b. Recordkeeper will notify plan sponsor of any errors that may result in a qualification
failure or prohibited transaction and consult with the plan sponsor on correction.
5. Termination
a. Termination upon 180 days’ notice by recordkeeper
b. Recordkeeper will provide agreed upon services to transition to successor recordkeeper
upon termination of the agreement.
6. Notification of Legal Proceedings and Investigations
a. Recordkeeper will notify plan sponsor of any litigation or non-routine governmental
investigations that may affect the services.
7. Fees
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a. Any indirect compensation received by Recordkeeper will be credited back to the plan.
8. Insurance
a. See exhibit B for minimum insurance requirements provider must be able to meet
9. Other
a. Recordkeeper shall not use artificial intelligence to support any automated decision-
making related to services or benefits provided to data subjects.
Please be advised that requested changes to the City’s terms and conditions will be considered by City
staff when scoring and determining the competency and responsibility of the proposer.
I. PROPOSAL EVALUATION, SELECTION AND AWARD SCHEDULE
1. Proposal Evaluation and Selection. Proposals will be evaluated by a review committee and evaluated
on the following criteria:
a. Understanding of the work required by the City.
b. Quality, clarity, and responsiveness of the proposal.
c. Demonstrated competence and professional qualifications necessary for successfully
performing the work required by the City.
d. Recent experience in successfully performing similar services.
e. Background and experience of the specific individuals managing and assigned to this
project.
f. Value.
g. Potential conflicts of interest.
h. References.
As reflected above, contract award will not be based solely on price, but on a combination of factors as
determined to be in the best interest of the City. After evaluating the proposals and discussing them
further with the finalists or the tentatively selected recordkeeper, the City reserves the right to further
negotiate the proposed work and/or method and amount of compensation.
2. Proposal Review and Award Schedule. The following is an outline of the anticipated schedule for
proposal review and contract award:
[TO BE REVISED PRIOR TO RFP ISSUANCE]
a. Issue RFP Approx. 02/01/26
b. Proposal deadline Approx. 03/01/26
c. Evaluate proposals Approx. 03/02/26 – 03/31/26
d. Finalize recommendation and notify applicants Approx. 04/15/26
e. Execute contract Approx. 05/15/26
f. Start work Approx. 07/01/26
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PROPOSAL FORM: REFERENCES
Provide detailed descriptions of three comparable public agencies your firm has worked with. For each,
identify the services performed, how they align with the scope outlined in this RFP, the results you
achieved, and how the experience demonstrates your firm’s ability to successfully deliver similar services
for the City of San Luis Obispo. Attach additional pages if required. The City reserves the right to contact
each of the references listed for additional information regarding your firm's qualifications.
Reference No. 1:
Agency Name
Contact Name
Telephone & Email
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
Reference No. 2:
Agency Name
Contact Name
Telephone & Email
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
Reference No. 3
Agency Name
Contact Name
Telephone & Email
Street Address
City, State, Zip Code
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Description of services provided
including contract amount, when
provided and project outcome
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PROPOSAL FORM: STATEMENT OF PAST CONTRACT DISQUALIFICATIONS
The proposer shall state whether it or any of its officers or employees who have a proprietary interest in
it, has ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal,
state, or local government project because of the violation of law, a safety regulation, or for any other
reason, including but not limited to financial difficulties, project delays, or disputes regarding work or
product quality, and if so to explain the circumstances.
Do you have any disqualification as described in the above paragraph to declare?
Yes No
If yes, explain the circumstances.
Executed on at _______________________________________ under penalty of
perjury of the laws of the State of California, that the foregoing is true and correct.
______________________________________
Signature of Authorized Proposer Representative
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PROPOSAL FORM: PRICING REQUEST
[TO BE REVISED PRIOR TO RFP ISSUANCE]
Pricing Request
457(b) & 401(a) Pricing Request
#1:
Proprietary Stable Value/Fixed
with Shadow Accounting or
Blending for fixed assets subject
to 5-year spread pay - PLEASE
DESCRIBE SOLUTION PROVIDED
Please provide the Asset Charge required for an open architecture platform
assuming the use of your proprietary stable value or fixed/general account (if
applicable). You may provide as many proprietary solutions as you choose.
Explicit Asset
Charge with
Managed
Accounts
Record
Keeping
Revenue
Generated
Current Net
Crediting Rate Guarantee Period for Rate
Name of stable Value/Fixed
Name of stable Value/Fixed
457(b) & 401(a) Pricing Request
#2:
Non-Proprietary Stable
Value/Fixed with Shadow
Accounting or Blending for fixed
assets subject to 5-year spread
pay - PLEASE DESCRIBE
SOLUTION PROVIDED
Please provide the Asset Charge required for an open architecture platform
assuming the use of a third party stable value or fixed/general account (if
applicable).
Asset Charge
with
Managed
Accounts
Record
Keeping
Revenue
Generated
Current Net
Crediting Rate Guarantee Period for Rate
Name of stable Value/Fixed
HRA/RHS Plan Proposal:
Please provide description, of
proposal
Asset Charge
with
Managed
Accounts
Record
Keeping
Revenue
Generated
Current
Crediting Rate Guarantee Period for Rate
Name of stable Value/Fixed
OBRA/Part-Time Plan Proposal:
Please provide description, of
proposal
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Asset Charge
with
Managed
Accounts
Record
Keeping
Revenue
Generated
Current
Crediting Rate Guarantee Period for Rate
Name of stable Value/Fixed
Stable Value / Fixed Account
Guaranteed Interest
Please provide the following for each proprietary stable value/fixed option
proposed:
1. Current proposed gross interest rate
2. Fund management fees
3. Revenue sharing
4. Net credited rate after ALL fees and revenue sharing
5. Guaranteed Minimum Interest Rates
6. Full disclosure of ALL participant and plan sponsor transfer and termination
provisions clearly identified, including the specific definition of a "competing
fund" if applicable.
ATTACHED IS A SPREADSHEET "FIXED PRODUCT DATA" - PLEASE COMPLETE
FOR ALL PRODUCTS PROPOSED.
Please note for the following to
use $0 Fee if the service is
included in the Asset Charge
proposed
Transactional Fees Fee Explanation / Description / Details of Service Provided if
Needed
Sep from Svc Withdrawals $0
Hardship/Unforeseeable
Emergency Withdrawals $0
In-Service Withdrawals $0
Periodic Distributions:
Set up $0
Annual $0
RMD Distributions $0
Are RMDs automatically
generated? Yes/No
Are sponsors notified when
dist? Yes/No
Loans:
Initiation $0
Annual $0
QDRO Determination $0
Plan Termination Fees $0
Termination Test File Charge $0
Other Fees
Expedited Checks $0
ACH/Wire $0
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Stop Pay / Reissue and Special
Handling $0
Plan Document Fees
Initial Restatement 0
Plan Doc Regulatory Amendment $0
Plan Doc Non-Regulatory
Amendment $0
Participant Educ. at Conversion and Ongoing
Education and Enrollment at
Conversion (web or on-site?) $0
Additional Education
Days/Ongoing $0
Call Center Days and Hours
Call Center Multi-Lingual
Capabilities
Participant Advisory Services
Managed Accounts/Personal
Advice Fee Schedule
0.00%
0.00%
0.00%
0.00%
On-Line Advise $0
participant experience in detail
In Person Individual Advise $0
One-Time Financial Planning $0
Comprehensive Financial
Planning $0
Technical Capabilities
Is the participant website mobile
device capable? Yes/No
Do you provide a mobile app to
parts? Yes/No
Can ALL functions available on
the website be completed on the
app? If not, provide what is
available.
Yes/No
Is your participant website
available in languages other than
English?
Yes/No
Is your mobile app available in
languages other than English? Yes/No
Plan Sponsor Services - Please detail mailing fees if applicable
Sep from Svc Withdrawals $0
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Hardship Withdrawal
Determination/Approval $0
In-Service Withdrawals $0
Loan Determination/Approval $0
QDRO Qualifying Services $0
Delivery of enrollment materials $0
EXHIBIT A: FORM OF AGREEMENT
CITY OF SAN LUIS OBISPO
PROFESSIONAL SERVICES AGREEMENT
This agreement (Agreement) is made and entered into in the City of San Luis Obispo on [DATE], by and
between the City of San Luis Obispo, a municipal corporation and charter city (City) and _____________
hereinafter referred to as Contractor (collectively referred to as the “Parties”).
WITNESSETH:
WHEREAS, on ________, City requested proposals for Retirement Plan Recordkeeping Services
(the “Project”); and
WHEREAS, the City wants to consolidate its deferred compensation plans to a single recordkeeper
(the “Services”); and
WHEREAS, Contractor is qualified to perform this type of Services and has submitted a written
proposal to do so, which has been accepted by City; and
NOW, THEREFORE, in consideration of their mutual promises, obligations, and covenants
hereinafter contained, the Parties hereto agree as follows:
1. TERM. The term of this Agreement shall be from the date this Agreement is made and entered, as first
written above, until ______, or upon acceptance and completion of said Services, whichever occurs
sooner.
2. INCORPORATION BY REFERENCE. City Request for Proposals for Retirement Plan Consulting Services
and Contractor's proposal dated ______ are hereby incorporated in and made a part of this Agreement,
attached as Exhibit A. The City’s insurance requirements are hereby incorporated in and made part of
this Agreement, attached as Exhibit B. To the extent that there are any conflicts between the
Contractor’s fees and scope of work and the City’s terms and conditions as stated herein, the City’s
terms and conditions shall prevail unless specifically agreed otherwise in writing signed by both Parties.
3. CITY’S OBLIGATIONS. For providing services as specified in this Agreement, and upon receipt of an
invoice, City will pay and Contractor shall receive compensation as set forth in Contractor’s proposal
and pursuant to the Payment Terms set forth in Exhibit B.
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4. CONTRACTOR’S OBLIGATIONS. For and in consideration of the payments and agreements herein
before mentioned to be made and performed by City, Contractor agrees with City to do everything
required by this Agreement including that work as set forth in Exhibit A.
5. PAYMENT OF TAXES. The contract prices shall include full compensation for all taxes that
Contractor is required to pay.
6. LICENSES AND PERMITS. At all times during the term of this Agreement, Contractor shall have in
full force and effect, all licenses required of it by law for the performance of the Services described
in this Agreement. The Contractor shall procure all permits and licenses, pay all charges and fees,
and give all notices necessary under this Agreement.
7. COMPLIANCE WITH LAW. The Contractor shall keep itself informed of and shall observe and
comply with all applicable State and Federal laws and regulations, and county and City of San Luis
Obispo ordinances, regulations and adopted codes, which in any manner affect those employed
by Contractor or in any way affect the performance of the Services pursuant to this Agreement.
The City, and its officers and employees, shall not be liable at law or in equity occasioned by failure
of the Contractor to comply with this Section. Failure to comply with local ordinances may result
in monetary fines and cancellation of this Agreement.
8. COMPLIANCE WITH INDUSTRY STANDARD. Contractor shall provide services acceptable to City in
strict conformance with the Agreement. Contractor shall also provide in accordance with the standards
customarily called for under this Agreement using the degree of care and skill ordinarily exercised by
reputable providers of such services. Where approval by the City, the City Manager, the Mayor, or other
representative of City is required, it is understood to be general approval only and does not relieve
Contractor of responsibility for complying with all applicable laws, codes, policies, regulations, and
good business practices.
9. INDEPENDENT CONTRACTOR.
a. Contractor is and shall at all times remain as to the City a wholly independent contractor.
The personnel performing the Services under this Agreement on behalf of Contractor shall
at all times be under Contractor's exclusive direction and control. Neither City nor any of
its officers, employees, or agents shall have control over the conduct of Contractor or any
of Contractor's officers, employees, or agents, except as set forth in this Agreement.
Contractor shall not at any time or in any manner represent that it or any of its officers,
employees, or agents are in any manner officers, employees, or agents of the City.
Contractor shall not incur or have the power to incur any debt, obligation, or liability
whatsoever against City, or bind City in any manner.
b. No employee benefits shall be available to Contractor in connection with the performance
of this Agreement. Except for the fees paid to Contractor as provided in the Agreement,
City shall not pay salaries, wages, or other compensation to Contractor for performing the
Services hereunder for City. City shall not be liable for compensation or indemnification
to Contractor for injury or sickness arising out of performing services hereunder.
c. Contractor/Contractor’s duties and services under this agreement shall not include
preparing or assisting the public entity with any portion of the public entity’s preparation
of a request for proposals, request for qualifications, or any other solicitation regarding a
subsequent or additional contract with the public entity. The public entity entering this
agreement shall at all times retain responsibility for public contracting, including with
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respect to any subsequent phase of this project. Contractor/Contractor’s participation in
the planning, discussions, or drawing of project plans or specifications shall be limited to
conceptual, preliminary, or initial plans or specifications. Contractor/Contractor shall
cooperate with the public entity to ensure that all bidders for a subsequent contract on
any subsequent phase of this project have access to the same information, including all
conceptual, preliminary, or initial plans or specifications prepared by contractor pursuant
to this agreement.”
10. 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 Contractor’s operations, it shall be replaced or restored at Contractor’s
expense. The City’s facilities shall be replaced or restored to a condition as good as when the
Contractor began the work.
11. IMMIGRATION ACT OF 1986. The Contractor warrants on behalf of itself and all subcontractors
engaged for the performance of the Services that only persons authorized to work in the United
States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws
shall be employed in the performance of the Services hereunder.
12. NON-DISCRIMINATION. In the performance of the Services, the Contractor agrees that it will not
engage in, nor permit such subcontractors as it may employ, to engage in discrimination in
employment of persons because of age, race, color, sex, national origin or ancestry, sexual
orientation, or religion of such persons.
13. INSPECTION. City shall at all times have the right to inspect the work being done under this
Agreement and Contractor shall furnish City with every reasonable opportunity and assistance
required for City to ascertain that the Services of the Contractor are being performed in
accordance with the requirements and intentions of this Agreement. All work done, and all
materials furnished, if any, shall be subject to the City’s inspection and approval. The inspection
of such work shall not relieve Contractor of any of its obligations under the Agreement.
14. RELEASE OF INFORMATION.
a. All information gained by Contractor in performance of this Agreement shall be
considered confidential and shall not be released by Contractor without City's prior
written authorization. Contractor, its officers, employees, agents, or subcontractors, shall
not, without written authorization from the City Manager or unless requested by the City
Attorney, voluntarily provide declarations, letters of support, testimony at depositions,
response to interrogatories, or other information concerning the work performed under
this Agreement. Response to a subpoena or court order shall not be considered
"voluntary" provided Contractor gives City notice of such court order or subpoena.
b. Contractor shall promptly notify City should Contractor, its officers, employees, agents,
or subcontractors be served with any summons, complaint, subpoena, notice of
deposition, request for documents, interrogatories, request for admissions, or other
discovery request (“Discovery”), court order, or subpoena from any person or party
regarding this Agreement, unless the City is a party to any lawsuit, arbitration, or
administrative proceeding connected to such Discovery, or unless Contractor is
prohibited by law from informing the City of such Discovery. City retains the right, but has
no obligation, to represent Contractor and/or be present at any deposition, hearing, or
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similar proceeding as allowed by law. Unless City is a party to the lawsuit, arbitration, or
administrative proceeding and is averse to Contractor in such proceeding, Contractor
agrees to cooperate fully with City and to provide the opportunity to review any response
to Discovery requests provided by Contractor. However, City's right to review any such
response does not imply or mean the right by City to control, direct, or rewrite said
response.
15. OWNERSHIP OF DOCUMENTS.
a. Contractor shall maintain complete and accurate records with respect to sales, costs,
expenses, receipts, and other such information required by City that relate to the
performance of the Services under this Agreement. Contractor shall maintain adequate
records of services provided in sufficient detail to permit an evaluation of services. All
such records shall be maintained in accordance with generally accepted accounting
principles and shall be clearly identified and readily accessible. Contractor shall provide
free access to the representatives of City or its designees at reasonable times to such
books and records; shall give City the right to examine and audit said books and records;
shall permit City to make transcripts or copies therefrom as necessary; and shall allow
inspection of all work, data, documents, proceedings, and activities related to this
Agreement. Such records, together with supporting documents, shall be maintained for a
period of three (3) years after receipt of final payment.
b. Upon completion of, or in the event of termination or suspension of this Agreement, all
original documents, designs, drawings, maps, models, computer files, surveys, notes, and
other documents prepared in the course of providing the Services under this Agreement
shall become the sole property of the City and may be used, reused, or otherwise
disposed of by the City without the permission of the Contractor. With respect to
computer files, Contractor shall make available to the City, at the Contractor's office and
upon reasonable written request by the City, the necessary computer software and
hardware for purposes of accessing, compiling, transferring, copying and/or printing
computer files. Contractor hereby grants to City all right, title, and interest, including any
copyright, in and to the documents, designs, drawings, maps, models, computer files,
surveys, notes, and other documents prepared by Contractor in the course of providing
the Services under this Agreement.
16. INDEMNIFICATION AND DEFENSE. 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 passive negligence, except for such loss or damage arising from the sole or
active negligence or willful misconduct of the City. In the event the City Indemnitees are made a
party to any action, lawsuit, or other adversarial proceeding arising from 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 the ir costs of defense, including
reasonable legal fees, incurred in defense of such claims. The review, acceptance or approval of
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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 the
completion of the services or the termination of this contract. The provisions of this section are
not limited by and do not affect the provisions of this contract relating to insurance.
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 sub-Contractors/
subcontractors.
17. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE.
a. The City may at any time, for any reason, with or without cause, suspend or terminate this
Agreement, or any portion hereof, by serving upon the Contractor at least thirty (30) days prior
written notice. Upon receipt of said notice, the Contractor shall immediately cease all work
under this Agreement, unless the notice provides otherwise. If the City suspends or terminates
a portion of this Agreement such suspension or termination shall not make void or invalidate
the remainder of this Agreement.
b. In the event this Agreement is terminated pursuant to this Section, the City shall pay to
Contractor the actual value of the work performed up to the time of termination, provided that
the work performed is of value to the City. Upon termination of the Agreement pursuant to
this Section, the Contractor will submit an invoice to the City pursuant to Section 14.
18. TERMINATION FOR CAUSE. If, during the term of the Agreement, the City determines 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 ten (10) calendar day notice of time thereafter in which to perform said work or cure the
deficiency.
a. If the Contractor has not performed the work or cured the deficiency within the ten (10)
days specified in the notice, such shall constitute a breach of the Agreement and the City
may terminate the Agreement immediately by written notice to the Contractor to said
effect (“Notice of Termination”). Thereafter, neither party shall have any further duties,
obligations, responsibilities, or rights under the Agreement except to comply with the
obligations upon termination.
b. In said event, the 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 or services 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
scope.
c. The City reserves the right to delay such payment until completion or confirmed
abandonment of the project, as may be determined in the City’s sole discretion, so as to
permit a full and complete accounting of costs. In no event, however, shall the Contractor
be entitled to receive in excess of the not to exceed amount shown in this Agreement.
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19. INSURANCE. Contractor shall maintain prior to the beginning of and for the duration of this Agreement
insurance coverage as specified in Exhibit B attached to and made part of this Agreement.
20. BUSINESS LICENSE & TAX. The Contractor must have a valid City of San Luis Obispo
business license & tax certificate before execution of the contract. Additional information
regarding the City’s business tax program may be obtained by calling (805) 781-7134.
21. SAFETY PROVISIONS. The Contractor shall conform to the rules and regulations pertaining to
safety established by OSHA and the California Division of Industrial Safety.
22. UNDUE INFLUENCE. Contractor declares and warrants that no undue influence or pressure was used
against or in concert with any officer or employee of the City in connection with the award, terms or
implementation of this Agreement, including any method of coercion, confidential financial
arrangement, or financial inducement. No officer or employee of the City has or will receive
compensation, directly or indirectly, from Contractor, or from any officer, employee or agent of
Contractor, in connection with the award of this Agreement or any work to be conducted as a result of
this Agreement. Violation of this Section shall be a material breach of this Agreement entitling the City
to any and all remedies at law or in equity.
23. 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.
a. As required above, before retaining or contracting with any subcontractor for any services
under this Agreement, City must consent to such assignment of performance in writing. For
City to evaluate such proposed assignment, Contractor shall provide City with the identity of
the proposed subcontractor, a copy of the proposed written contract between Contractor and
such subcontractor, which shall include an indemnity provision similar to the one provided
herein and identifying City as an indemnified party, or an incorporation of the indemnity
provision provided herein, and proof that such proposed subcontractor carries insurance at
least equal to that required by this Agreement or obtain a written waiver from City for such
insurance.
24. AMENDMENT. Any amendment, modification, or variation from the terms of this Agreement shall be
in writing and shall be effective only upon approval by the appropriate review authority according to
the City’s Financial Management Manual. Contractor shall not be compensated for any services
rendered in connection with its performance of this Agreement which are in addition to those set forth
herein, unless such additional services are authorized by the City in advance and in writing.
25. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein
by reference, shall constitute the complete Agreement between the Parties hereto. No oral agreement,
understanding, or representation not reduced to writing and specifically incorporated herein shall be
of any force or effect, nor shall any such oral Agreement, understanding, or representation be binding
upon the Parties hereto. Each party is entering into this Agreement based solely upon the
representations set forth herein and upon each party's own independent investigation of any and all
facts such party deems material.
26. NOTICE. All notices to the Parties hereto under this Agreement shall be in writing and shall be sent
either by (i) personal service, (ii) delivery by a reputable document delivery service, such as, but not
limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) United
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States Mail, certified, postage prepaid, return receipt requested. All such notices shall be delivered to
the addressee or addressed as set forth below:
To City: City of San Luis Obispo
990 Palm St, San Luis Obispo, CA 93401
Attention: Human Resources
To Contractor: [Name]
[Mailing Address]
27. 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.
28. 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 CONTRACTOR
_______________________________
By: [Name]
Its: [Title of City Manager or Department Head]
_______________________________
By: [Name]
Its: [Title]
APPROVED AS TO FORM:
_______________________________
By: J. Christine Dietrick, City Attorney
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EXHIBIT B: INSURANCE REQUIREMENTS FOR PROFESSIONAL SERVICES
Without limiting CONSULTANT’s indemnification of CITY, and prior to commencement of Work,
CONSULTANT shall obtain, provide and maintain at its own expense during the term of this AGREEMENT,
policies of insurance of the type and amounts described below, and in a form satisfactory to CITY.
General liability insurance. CONSULTANT shall maintain commercial general liability insurance with
coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than
$1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property
damage. The policy must include contractual liability that has not been amended. Any endorsement
restricting standard ISO “insured contract” language will not be accepted.
Professional liability (errors & omissions) insurance. CONSULTANT shall maintain professional liability
insurance that covers the Services to be performed in connection with this AGREEMENT, in the minimum
amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or
retroactive date must be before the effective date of this AGREEMENT and CONSULTANT agrees to
maintain continuous coverage through a period no less than three (3) years after completion of the
services required by this AGREEMENT.
Workers’ compensation insurance. CONSULTANT shall maintain Workers’ Compensation Insurance
(Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). CONSULTANT
shall submit to CITY, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor
of CITY, its officers, agents, employees, and volunteers.
Proof of insurance. CONSULTANT shall provide certificates of insurance to CITY as evidence of the
insurance coverage required herein, along with a waiver of subrogation endorsement for workers’
compensation. Insurance certificates and endorsements must be approved by CITY’s Risk Manager prior
to commencement of performance. Current certification of insurance shall be kept on file with CITY at all
times during the term of this contract. CITY reserves the right to require complete, certified copies of all
required insurance policies, at any time.
Duration of coverage. CONSULTANT shall procure and maintain for the duration of the contract insurance
against claims for injuries to persons or damages to property, which may arise from or in connection with
the performance of the Work hereunder by CONSULTANT, his agents, representatives, employees or
subconsultants.
Primary/noncontributing. Coverage provided by CONSULTANT shall be primary and any insurance or self-
insurance procured or maintained by CITY shall not be required to contribute with it. The limits of
insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance.
Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage
shall also apply on a primary and non-contributory basis for the benefit of CITY before the CITY’s own
insurance or self-insurance shall be called upon to protect it as a named insured.
CITY’s rights of enforcement. In the event any policy of insurance required under this AGREEMENT does
not comply with these specifications or is canceled and not replaced, CITY has the right but not the duty
to obtain the insurance it deems necessary, and any premium paid by CITY will be promptly reimbursed
by CONSULTANT or CITY will withhold amounts sufficient to pay premium from CONSULTANT payments.
In the alternative, CITY may cancel this AGREEMENT.
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Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized
by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line
Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial
Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless
otherwise approved by the CITY’s Risk Manager.
Waiver of subrogation. All insurance coverage maintained or procured pursuant to this AGREEMENT shall
be endorsed to waive subrogation against CITY, its elected or appointed officers, agents, officials,
employees and volunteers or shall specifically allow CONSULTANT or others providing insurance evidence
in compliance with these specifications to waive their right of recovery prior to a loss. CONSULTANT
hereby waives its own right of recovery against CITY and shall require similar written express waivers and
insurance clauses from each of its subconsultants.
Enforcement of contract provisions (non estoppel). CONSULTANT acknowledges and agrees that any
actual or alleged failure on the part of the CITY to inform CONSULTANT of non-compliance with any
requirement imposes no additional obligations on the CITY nor does it waive any rights hereunder.
Requirements not limiting. Requirements of specific coverage features or limits contained in this Section
are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage
normally provided by any insurance. Specific reference to a given coverage feature is for purposes of
clarification only as it pertains to a given issue and is not intended by any party or insured to be all
inclusive, or to the exclusion of other coverage, or a waiver of any type. If the CONSULTANT maintains
higher limits than the minimums shown above, the CITY requires and shall be entitled to coverage for the
higher limits maintained by the CONSULTANT. Any available insurance proceeds in excess of the specified
minimum limits of insurance and coverage shall be available to the CITY.
Notice of cancellation. CONSULTANT agrees to oblige its insurance agent or broker and insurers to provide
to CITY with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice
is required) or nonrenewal of coverage for each required coverage.
Additional insured status. General liability policies shall provide or be endorsed to provide that CITY and
its officers, officials, employees, and agents, and volunteers shall be additional insureds under such
policies. This provision shall also apply to any excess/umbrella liability policies.
Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in
compliance with these requirements if they include any limiting endorsement of any kind that has not
been first submitted to CITY and approved of in writing.
Separation of insureds. A severability of interests provision must apply for all additional insureds
ensuring that CONSULTANT’s insurance shall apply separately to each insured against whom claim is made
or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain
any cross-liability exclusions.
Pass through clause. CONSULTANT agrees to ensure that its subconsultants, subcontractors, and any
other party involved with the project who is brought onto or involved in the project by CONSULTANT,
provide the same minimum insurance coverage and endorsements required of CONSULTANT.
CONSULTANT agrees to monitor and review all such coverage and assumes all responsibility for ensuring
that such coverage is provided in conformity with the requirements of this section. CONSULTANT agrees
that upon request, all agreements with consultants, subcontractors, and others engaged in the project
will be submitted to CITY for review.
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CITY’s right to revise specifications. The CITY reserves the right at any time during the term of the
contract to change the amounts and types of insurance required by giving the CONSULTANT ninety (90)
days advance written notice of such change. If such change results in substantial additional cost to the
CONSULTANT, the CITY and CONSULTANT may renegotiate CONSULTANT’s compensation.
Self-insured retentions. Any self-insured retentions must be declared to and approved by CITY. CITY
reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a
deductible. Self-insurance will not be considered to comply with these specifications unless approved by
CITY.
Timely notice of claims. CONSULTANT shall give CITY prompt and timely notice of claims made or suits
instituted that arise out of or result from CONSULTANT’s performance under this AGREEMENT, and that
involve or may involve coverage under any of the required liability policies.
Additional insurance. CONSULTANT shall also procure and maintain, at its own cost and expense, any
additional kinds of insurance, which in its own judgment may be necessary for its proper protection and
prosecution of the work.
Verification of Coverage. 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.
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