HomeMy WebLinkAboutItem 6f - RFP for Citywide User Fee Study and Cost Allocation Plan and Labor Rates Item 6f
Department: Finance
Cost Center: Revenue
For Agenda of: 9/1/2026
Placement: Consent
Estimated Time: N/A
FROM: Emily Jackson, Finance Director
Prepared By: Debbie Malicoat, Deputy Finance Director
SUBJECT: REQUEST FOR PROPOSALS FOR CONSULTING SERVICES TO
CONDUCT A CITYWIDE USER FEE STUDY AND PREPARE A CENTRAL
SERVICE COST ALLOCATION PLAN AND LABOR RATES
RECOMMENDATION
Authorize staff to issue a Request for Proposals (RFP) for Consulting Services to Conduct
a Citywide User Fee Study and Prepare a Central Service Cost Allocation Plan and Labor
Rates, and delegate award authority to the City Manager.
POLICY CONTEXT
Section 2, “User Fee Cost Recovery Goals,” of the City’s adopted City Fiscal Policies
identifies that a comprehensive analysis of City costs and fees should be made at least
every three years. The City Council reviews its fiscal policies every two years to guide
staff in development of the two-year Financial Plan. Council most recently adopted the
User Fee Cost Recovery policy on June 17, 2025, with adoption of the FY 2025-27
Financial Plan. The Policy adopted in June 2025 reflected changes directed by Council
with adoption of the prior user fee study on July 2, 2024. In advance of the upcoming
user fee study, staff sought Council’s review of the Policy again on June 2, 2026, with
adoption of the FY 2026-27 Budget Supplement; Council did not elect to make any
changes to the Policy at that time.
Additionally, Strategic Approach 5.c within the Cultural Vitality, Economic Resilience and
Fiscal Sustainability Major City Goal in the current financial plan includes direction to
conduct an RFP process to identify a consultant to prepare the City’s annual cost
allocation plan to ensure that enterprise funds are appropriately reimbursing the General
Fund for services provided to them.
Further, while the Government Code does not explicitly mandate a specific schedule for
updating fees, Sections 66016 and 66014 limit local agencies from collecting fees that
exceed the reasonable costs of providing the services, implying that periodic review is
necessary to ensure fees are not excessive.
DISCUSSION
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Background
Many City services are considered a general public good and are funded through general
tax revenues, however, some services are funded only by the users of the service. The
City's User Fee Cost Recovery policy calls for the City to review and update servic e
charges on an ongoing basis to ensure that they keep pace with changes in the cost -of-
living and changes in methods or levels of service delivery. State law generally provides
that fees for services cannot exceed the reasonable actual costs for providing services.
In implementing this provision, the City has adopted the goal of comprehensively
analyzing service costs at least every three years, with interim adjustments annually
based on changes in the Consumer Price Index (CPI). The last comprehensive fee study
was approved by Council July 2, 2024 (R11507).
In addition, the City prepares an annual Cost Allocation Plan (CAP) to ensure that
enterprise funds are appropriately reimbursing the General Fund for services provided.
The City’s current contract for this work has now expired and it is timely to issue an RFP
for this service.
Given the timing of the triennial review of user fees and the expiration of the CAP
consultant contract, issuing an RFP for both of these services in a consolidated fashion
leverages the synergies between understanding what it costs to provide all services,
whether to the community or to the enterprise funds, and then seeking appropriate cost
recovery for those services. This approach is not uncommon in municipalities in California
and staff anticipate consolidation will result in efficiencies compared to separating the
activities.
Staff are requesting authority to issue the RFP for consultant services and delegating the
authority to award the contract to the most responsive proposer to the City Manager.
Determining the most responsive proposer is based on a number of criteria such as prior
experience doing similar work, proposed approach and timeline, references, interviews,
and value for the City, not necessarily the lowest cost. All proposals will be evaluated by
a cross-departmental team to determine the finalist. In order to bring fee study results to
the Council in time for a July 2027 effective date of a new fee schedule, staff and
consultant work efforts need to begin by October 1, 2026. Delegation of award authority
to the City Manager will facilitate timely contract execution.
Previous Council or Advisory Body Action
Council has previously approved policies and provided direction to perform
comprehensive fee studies every three years.
Public Engagement
As with the 2024 fee study, staff will engage Advisory Bodies, stakeholders and the public
as to the outcome of the study. Notices of any changes to fees will be posted at public
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counters, on the City’s website and to interested individuals that have requested such
notices. Additionally, any changes would take place 60 days after the Council adopted a
new fee schedule, which is anticipated to occur in May 2027.
Staff anticipates work to begin in October 2026 with preliminary calculations completed
in January 2027. City Council review of study finding and draft recommendations is
scheduled for the March 2, 2027 City Council meeting. Based on direction received, final
recommendations will be presented for adoption at the May 4, 2027 City Council meeting.
This will allow time for communication with the community an d updates to point of sale
systems before the July 7, 2027 effective date. It will also meet the Government Code
requirement of 60 days’ notice before new fees can take effect.
CONCURRENCE
Staff from all departments involved in the calculation or collection of user fees or
preparation of the Cost Allocation Plan concur with the recommendation presented in this
Council Agenda Report.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended
action in this report because the action does not constitute a “project” under the CEQA
guidelines section 15378.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2026-27
Funding Identified: Yes
Fiscal Analysis:
Budget of $73,500 for this work effort was approved with the 2025 -27 Financial Plan.
Budget for the annual CAP is reflected in the ongoing operating budget at $13,500 with
one time funding for the triennial fee study of $60,000, approved as a Significant
Operating Budget Change (SOBC) for FY 2026-27.
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $73,500 $0 $73,500 $13,500
State
Federal
Fees
Other:
Total $73,500 $0 $73,500 $13,500
ALTERNATIVES
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Council could direct staff to issue separate RFPs for a user fee study and
preparation of a Cost Allocation Plan. Issuance of separate RFPs will reduce the
synergies achieved by combining these work efforts.
Council could direct staff to delay issuing an RFP for this work scope and instead
apply a CPI adjustment to fees. While the Government Code does not require specific
timelines to update fees, delaying the fee study may result in the City’s fees not being in
alignment with the actual costs of providing the services, which could result in the General
Fund subsidizing the cost of services provided. In addition, the City’s contract with the
current Cost Allocation Plan consultant is now expired.
ATTACHMENTS
A - RFP – User Fee Study and Cost Allocation Plan 2026
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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 for Consulting Services to Conduct a Citywide User Fee Study and
Prepare a Central Service Cost Allocation Plan and Labor Rates
The City of San Luis Obispo is requesting sealed proposals to conduct a Citywide User Fee Study,
the annual central service cost allocation plan (CAP) and the development of annual labor rates
for use in compiling reimbursement and grant application documents.
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 September 11, 2026 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 September 11, 2026.
Project packages and additional information may be obtained at the City’s BidNet Direct website at
www.BidNetDirect.com.
For technical help with BidNet Direct please contact BidNet Direct tech support at 800-835-4603.
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TABLE OF CONTENTS
A. INTRODUCTION ......................................................................................................................................... 1
B. SCOPE OF WORK ....................................................................................................................................... 2
C. PROJECT SCHEDULE .................................................................................................................................. 5
D. GENERAL TERMS AND CONDITIONS ........................................................................................................ 6
E. SPECIAL TERMS AND CONDITIONS ........................................................................................................... 8
F: PROPOSAL SUBMITTAL FORM ................................................................................................................. 15
EXHIBIT A : FORM OF AGREEMENT ............................................................................................................. 23
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A. INTRODUCTION
1. Background Information – City of San Luis Obispo. The City of San Luis Obispo is located
on California’s Central Coast, approximately halfway between Los Angeles and San
Francisco. The City encompasses an area of 3,616 square miles, and has a population of
about 47,000, not including the neighboring student population at California Polytechnic
State University (Cal Poly). It is a charter city and operates under the “Council-Mayor-City
Manager” form of municipal government. The five-member City Council consists of the
directly elected Mayor and four City Council members. San Luis Obispo is a full -service
city, with police, fire, streets, engineering, parks, recreation, water and sewer services.
Additionally, residents in the neighboring cities of Pismo Beach, Grover Beach, Arroyo
Grande, Morro Bay, Atascadero and Paso Robles (and other unincorporated areas) utilize
San Luis Obispo’s recreational services. The City’s fiscal year begins on July 1 and ends on
June 30. Additional information about the City of San Luis Obispo can be found by visiting
its website at http://www.slocity.org.
2. General Information – Request for Proposal. The City of San Luis Obispo is seeking
proposals from qualified firms with expertise performing comprehensive user fee studies,
cost allocation plans, and calculation of labor rates for local municipalities. Should any
firm submitting a proposal consider subcontracting portions of the engagement, that fact
must be clearly identified in the proposal along with the name of the proposed
subcontracting firms. Following the reward of the contract, no additional subcontracting
will be allowed without the express prior written consent of the City of San Luis Obispo.
3. General Information – User Fees. The City has established user fees for a variety of
services. Section 2A of the City of San Luis Obispo’s Fiscal Policies asserts that fees will be
reviewed on an ongoing basis to ensure that the fee price satisfies the recovery policy as
set by the City Council. A comprehensive analysis is conducted every three years to
determine if any fees need to be adjusted beyond the annual inflator. The City is impacted
by cost increases and inflationary pressures on labor, materials and supplies, and needs
to ensure that existing fees are aligned with the cost of service and provide an opportunity
for the City Council to re-align fee amounts with the adopted cost recovery policies.
The last fee study the City completed was in May 2024. In the interim, fees were adjusted
by annual changes in the Consumer Price Index. Fees may be adjusted during this interim
period based on supplemental analysis whenever there have been significant changes in
the method, level or cost of service delivery. A copy of the most recently adopted
Comprehensive Fee Schedule is available on the City’s website here.
General Information – Cost Allocation Plan and Labor Rates. Historically, the City’s
central service cost allocation plan is prepared using actual costs from the most recently
audited fiscal year, which causes a two-year time lag between the period and the year in
which the costs are utilized in the current budget. This avoids any need for a periodic true-
up process.
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The Federal Transportation Administration (FTA) is the cognizant agency for the purpose
of complying with the Office of Management and Budget (OMB) Circular A-87. The FTA
has determined that the central service cost allocation plan does not require their review.
The City requires the preparation of two CAPs each fiscal year, one which is considered
the full CAP and one which is used to apply overhead costs to federally funded grant
programs and is prepared in compliance with OMB-A87.
The current consultant preparing the central service cost allocation plan is Mahoney and
Associates and they have been invited to submit a proposal.
4. Project Lead. All questions and correspondence should be directed to Debbie Malicoat,
Deputy Finance Director. The questions and the answers will then be forwarded to all
firms that provide an email address and posted on the City’s website. All questions must
be submitted no later than September 2, 2026. Responses will be provided by September
9, 2026.
Contact with personnel other than the name above regarding this RFP may be grounds
for elimination from the selection process. The financial statements and previous Cost
Allocation Plans of the City are available on the City’s website.
B. SCOPE OF WORK
The City is seeking a consultant to review and update existing user fees, as well as identify any
new fees, as appropriate (noted as “Scope A – User Fees”). Water and Sewer (Wastewater) rates
subject to California Proposition 218, and Parking and Transit rate-based fees are NOT included
in the scope of work for this study.
In addition, the City is seeking a consultant to annually prepare central service cost allocation
plans and labor rate calculations (noted as “Scope B – Cost Allocation Plan/Labor Rates”) for a
period of three (3) years.
Ideally, the City would like the same Consultant to complete both Scope A and Scope B. However,
it will also consider proposals for either Scope A or Scope B if a consultant has specific expertise
in one and not the other. Please note that some of the tasks are overlapping in Scope A & Scope
B and can be addressed accordingly.
1. Scope A – User Fees.
a. Establish a methodology for the evaluation of User Fees. Work and meet with
City staff to refine the project scope, purpose, uses and goals of the City’s Fee
Study to ensure that the study will be both accurate and appropriate to the City’s
needs. Review project schedule and answer any questions pertaining to the
successful development of the Study.
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b. Conduct a comprehensive review of the City’s existing fees, rates, and charges ,
adopted cost recovery policies, and current technology utilized (i.e.
Energov/EPL). Meet with staff and conduct interviews as needed to gain an
understanding of the City’s processes and operations.
c. Identify the total cost of providing each City service at a reasonable activity level
and in a manner that is consistent with all applicable laws, statutes, rules and
regulations governing the collection of fees, rates, and charges by public entities
including, but not limited to Proposition 218 Costs should include appropriate
and transparent General and Administrative overhead allocations to City activities
and applicable overhead rates.
d. Compare service costs with existing cost recovery levels. This should include
service areas where the City is currently charging for services as well as areas
where the City perhaps should charge, in light of the City’s practices, or the
practices of similar and/or neighboring cities.
e. Prepare a report that identifies each facility or service, its full cost, current and
recommended cost recovery levels. The report should identify the direct cost,
the indirect cost, and the overhead cost for each service; and provide a model for
adjusting these fees and rates for the City’s current and future needs.
f. Recommend appropriate fees and charges. Recommended fees are based on the
analysis, together with the appropriate subsidy percentage for those fees where
full cost recovery may be unrealistic or undesired, based on currently adopted City
Council policies.
g. Prepare a report that identifies the current fees, and recommended fees. The
report must also identify percentage change, cost recovery percentage, and fee
comparison with other San Luis Obispo County cities or California cities that are
comparable to San Luis Obispo. A survey comparison of rates and fees with similar
cities will be used to help determine the appropriate level of subsidy, if any.
h. Report on other matters that come to your attention in the course of your
evaluation that in your professional opinion the City should con sider.
i. Prepare and deliver presentations to the City Council to facilitate understanding
of the plan and its implications for the City and support communications and
outreach; collect and document comments and concerns and provide necessary
adjustments as requested.
j. Develop or modify the existing model for adjusting fees/rates ; include the
addition of potential service areas, future service enhancements, and the ability
to calculate the estimated costs of providing the service under consideration.
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k. Prepare a final comprehensive fee study report and provide an electronic copy
(text searchable) of the plan that can be made available to City staff. This would
include related schedules and cost documentation in a format that can be edited
and updated by City staff to accommodate changes in the organization or
changes in costs. Any Comprehensive fee schedule revisions developed shall also
be made available to the City electronically, providing the ability to add or delete
and/or update information as needed.
l. Develop a Project Budget for the Fee Study – a description of the project budget
itemized according to individual tasks. Project budget should include:
i. A project schedule with activities, milestones, and deliverables.
ii. Project budget defined, at minimum, as follows:
1. By task with a collective total by milestone and deliverable;
2. Labor rates for all project team members;
3. General overhead rates;
4. Costs for expenses such as printing, travel and attendance at
meetings
iii. Proposed services to be referred to a subconsultant, anticipate
subconsultants and anticipated costs for these services.
m. Consult with the City staff should it become necessary to defend the C ity’s Fees
as a result of any legal or other challenge. If the consultant/firm believes that
additional tasks are warranted, they must be clearly identified in the proposal. As
noted above, Water and Sewer rates subject to California Proposition 218, and
Parking and Transit rate-based fees are NOT included in the scope of work for this
study.
Scope B –Cost Allocation Plan/Labor Rates - The following steps are anticipated, but are not
intended to be all inclusive or limiting:
a. Evaluate the City’s current allocation methodologies and bases. Meet with staff
and conduct interviews as needed to gain an understanding of the City’s processes
and operations.
b. Meet with all affected departments – both central service providers and those
receiving cost allocations to determine the best cost allocation nexus.
i. Conduct follow up as appropriate to finalize discussions and receive follow
up material as required.
ii. Prepare any recommendations for changes in allocation methods based on
best practices and professional experience.
iii. Incorporate the feedback obtained from the meetings referred to above
into the preparation of the CAPs.
c. Develop a model for allocating costs in a manner that reflects the appropriate
amounts of allocation based on the nexus between user departments and the
central service cost activity and its costs.
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d. Report on other matters that come to your attention in the course of your
evaluation that in your professional opinion the City should consider.
e. Present the findings to the City’s management group and make necessary
adjustments as requested.
f. Calculate the costs for each position as appropriate using hourly rates and benefit
costs provided by the Finance Department.
g. Where appropriate, utilize information from the CAPs to obtain additional
indirect cost information.
h. Provide the labor rate information in an appropriate reporting format that is
both comprehensive and easy to understand.
i. Develop a Project Budget for the CAPs/Labor Rates – a description of the project
budget itemized according to individual tasks. Project budget should include:
i. A project schedule with activities, milestones, and deliverables.
ii. Project budget defined, at minimum, as follows:
1. By task with a collective total by milestone and deliverable;
2. Labor rates for all project team members;
3. General overhead rates;
4. Costs for expenses such as printing, travel and attendance
at meetings
iii. Proposed services to be referred to a subconsultant, anticipate
subconsultants and anticipated costs for these services.
C. PROJECT SCHEDULE
Preliminary Schedule Tasks
October 1, 2026 Project kickoff
December 2026 Cost Allocation Plans/Labor Rates Complete
January 2027 User Fee Study Complete
March 2, 2027 Review user fee study findings and draft recommendations with City
Council
March 2027 Cost Allocation Plans/Labor Rates approved by City Council
May 4, 2027 Final user fee study recommendations presented to City Council
May – June Update point of sale systems, community outreach and
communication
July 7, 2027 New fee schedule takes effect
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D. 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, 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.
3. Insurance Certificate. Each proposal must include a certificate of insurance showing:
a. The insurance carrier and its A.M. Best rating.
b. Scope of coverage and limits.
c. Deductibles and self-insured retention.
d. 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. The City’s insurance requirements
are detailed in Exhibit C to the Agreement (Exhibit A to the RFP)
4. Proposal Quotes and Unit Price Extension. The extension of unit prices for the quantities
indicated and the lump sum prices quoted by the bidder must be entered in figures in the spaces
provided on the Proposal Submittal Form(s). Any lump sum bid shall be stated in figures. The
Proposal Submittal Form(s) must be totally completed. If the unit price and the total amount
stated by any bidder for any item are not in agreement, the unit price alone will be considered as
representing the bidder’s intention and the proposal total will be corrected to conform to the
specified unit price.
5. Proposal Withdrawal and Opening. A bidder may withdraw its proposal, without prejudice prior
to the time specified for the proposal opening, by submitting a written request to the Director of
Finance for its withdrawal, in which event the proposal will be returned to the bidder unopened.
No proposal received after the time specified or at any place other than that stated in the “Notice
Inviting Bids/Requesting Proposals” will be considered. All proposals will be opened and declared
publicly. Bidders or their representatives are invited to be present at the opening of the
proposals.
6. Submittal of One Proposal Only. No individual or business entity of any kind shall be allowed to
make or file, or to be interested as the primary submitter in more than one proposal, except an
alternative proposal when specifically requested; however, an individual or business entity that
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has submitted a sub-proposal to a bidder submitting a proposal, or who has quoted prices on
materials to such bidder, is not thereby disqualified from submitting a sub-proposal or from
quoting prices to other bidders submitting proposals.
7. Communications. All timely requests for information submitted in writing will receive a written
response from the City. Telephone communications with City staff are not encouraged but will
be permitted. However, any such oral communication shall not be binding on the City.
8. Proposal Retention and Award. The City reserves the right to retain all proposals for a period of
60 days for examination and comparison. The City also reserves the right to waive non-substantial
irregularities in any proposal, to reject any or all proposals, to reject or delete one part of a
proposal and accept the other, except to the extent that proposals are qualified by specific
limitations. See the “special terms and conditions” in Section C of these specifications for
proposal evaluation and contract award criteria.
9. Competency and Responsibility of Bidder. The City reserves full discretion to determine the
competence and responsibility, professionally and/or financially, of bidders. Bidders will provide,
in a timely manner, all information that the City deems necessary to make such a decision.
10. Contract Requirement. The bidder to whom award is made (Contractor) shall execute a written
contract with the City within ten (10) calendar days after notice of the award. The contract shall
be made in the form adopted by the City and incorporated in these specifications.
CONTRACT PERFORMANCE
11. The City’s contract terms and conditions that Consultant will be expected to execute and be
bound by are attached hereto as Exhibit A.
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E. SPECIAL TERMS AND CONDITIONS
1. Contract Award. The contract will be awarded to the most qualified bidder that, in the City’s sole
discretion in accordance with the Proposal Evaluation and Selection criteria set forth herein (if
applicable), provides the best proposal.
2. Sales Tax Reimbursement.
For sales occurring within the City of San Luis Obispo, the City receives sales tax revenues.
Therefore, for bids from retail firms located in the City at the time of proposal closing for which
sales tax is allocated to the City, 1% of the taxable amount of the bid will be deducted from the
proposal by the City in calculating and determining the most qualified lowest cost bidder.
3. Labor Actions.
In the event that the successful proposer is experiencing a labor action at the time of contract
award (or if its suppliers or subcontractors are experiencing such a labor action), the City reserves
the right to declare said proposer is no longer the most qualified, responsive proposer and to
accept the next acceptable proposal from a proposer that is not experiencing a labor action, and
to declare it to be the most qualified, responsive proposer.
4. Failure to Accept Contract.
The following will occur if the proposer to whom the award is made (Contractor) fails to enter into
the contract: the award will be annulled; any bid security will be forfeited in accordance with the
special terms and conditions if a proposer's bond or security is required; and an award may be
made to the next lowest responsible, responsive proposer who shall fulfill every stipulation as if
it were the party to whom the first award was made.
5. Contract Term.
The supplies or services identified in this specification will be used by the City for three (3) 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.
6. Contract Extension.
The term of the contract may be extended by mutual consent for an additional one-year, and
annually thereafter, for a total of four years.
7. Supplemental Purchases
Supplemental purchases may be made from the successful proposer during the contract term in
addition to the items listed in the Detail Proposal Submittal Form. For these supplemental
purchases, the proposer shall not offer prices to the City in excess of the amounts offered to other
similar customers for the same item. If the proposer is willing to offer the City a standard discount
on all supplemental purchases from its generally prevailing or published price structure during
the contract term, this offer and the amount of discount on a percentage basis should be provided
with the proposal submittal.
8. Contractor Invoices.
The Contractor may deliver either a monthly invoice to the City with attached copies of detail
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invoices as supporting detail, or in one lump-sum upon completion.
9 Non-Exclusive Contract. The City reserves the right to purchase the items listed in the Detail
Proposal Submittal Form, as well as any supplemental items, from other vendors during the
contract term.
10. Unrestrictive Brand Names. Any manufacturer's names, trade names, brand names or catalog
numbers used in the specifications are for the purpose of describing and establishing general
quality levels. Such references are not intended to be restrictive. Proposals will be considered for
any brand that meets or exceeds the quality of the specifications given for any item. In the event
an alternate brand name is proposed, supplemental documentation shall be provided
demonstrating that the alternate brand name meets or exceeds the requirements specified
herein. The burden of proof as to the suitability of any proposed alternatives is upon the proposer,
and the City shall be the sole judge in making this determination.
11. Delivery. Prices quoted for all supplies or equipment to be provided under the terms and
conditions of this RFP package shall include delivery charges, to be delivered F.O.B. San Luis
Obispo by the successful proposer and received by the City within 90 days after authorization to
proceed by the City.
12. Change in Work. The City reserves the right to change quantities of any item after contract award.
If the total quantity of any changed item varies by 25% or less, there shall be no change in the
agreed upon unit price for that item. Unit pricing for any quantity changes per item in excess of
25% shall be subject to negotiation with the Contractor.
13. Submittal of References. Each proposer shall submit a statement of qualifications and references
on the form provided in the RFP package.
14. Statement of Contract Disqualifications. Each proposer shall submit a statement regarding any
past governmental agency bidding or contract disqualifications on the form provided in the RFP
package.
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1. Proposal Length:
Proposal length should only be as long as required to be responsive to the RFP, including attachments and
supplemental materials, and no longer than 25 pages.
Submittal Requirements:
Proposal must contain the following, and in the following order:
1. Cover Letter (one page maximum):
a. The letter should provide a brief summary of the proposal, concisely describing the
project, its goals, and the proposed plan of implementation.
b. The letter should be addressed to Debbie Malicoat and signed by an official authorized
to bind the firm and shall contain a statement that the proposal is valid for 90 days.
c. The letter should provide the name, address, phone number and email address of your
firm’s contact person for this Request for Proposal.
2. Technical Proposal:
a. Firm Overview: Provide a description of your firm, including the size (number of
employees), number of years in business and areas of specialization.
b. Description of Project Team Experience & Qualifications: Provide a general overview
of the firm/consultant(s), and/or subconsultant(s) that will be assigned to the project.
Describe their experience in conducting similar engagements to the scope outlined in
Section B, including recent projects of a similar nature. Include information regarding
the resumes of consultant(s) that will be assigned and any other relevant information
to demonstrate the firm’s experience with engagements of similar size and scope.
Specify who the Project Manager (lead person) will be for the project and describe
projects of a similar nature in which they had “hands on” responsibility. The
qualifications of each of the principal and senior consultants should be spelled out in
this section (resumes for those individuals may be included in the Appendix). Those
who are named must have a direct, hands-on role in the project. The City may insist
on principal-level participation at every stage of the project, and any substitutions will
require prior City approval.
c. Scope of Services, Work Plan and Schedule: Provide a description of the work
program, including a description of deliverables and activities that will be undertaken.
Consultants should describe their approach for managing the project, schedule, and
communicating with the City. Provide a schedule that includes resource (both City
employees and vendor employees, if applicable) requirements, a step-by-step work
plan of all activities involved in the conduct of the work, and timelines for those steps,
identifying major steps and milestones.
d. Approach: Describe the firm/consultant’s technical approach used to gather and
analyze data, expected interaction with City staff and estimated timeline for
completing the scope of work. It should also list specific tasks necessary to fulfill the
project requirements. Proposers are encouraged to amplify the scope of services and
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to identify any supplemental tasks necessary or recommend any alternatives that
may enhance the project or reduce its costs.
e. Additional Information: Describe any other information not previously mentioned
that the consultant believes should be given consideration. This could include any
additional tasks not included in the Required Services section above. Identify
subconsultants, if any.
f. Client References: Please provide references from at least three (3) firms for whom
you have provided similar services. References must be local/municipal/county
agencies only. Please include:
1. Agency Name
2. Contact Name & Title
3. Telephone & Email
4. Street Address
5. City, State, Zip Code
6. Description of services provided including contract amount, when provided and
project outcome
Requested Changes to Terms and Conditions
a. The City desires to begin work soon after selecting the preferred Consultant and expects
the Consultant to execute the City’s contract and all of the terms therein, as set forth in
Exhibit A. To expedite the contracting process, each submittal shall include requested
redlined changes to terms and conditions, if necessary. Please be advised that
Consultant’s requested changes to the City’s terms and conditions will be considered by
City staff when scoring and determining the competency and responsibility of the
proposer.
2. Proposal Evaluation and Selection. Proposals will be evaluated by a review committee and
evaluated on the following criteria:
a. Understanding of the work required by the City.
b. Quality, clarity and responsiveness of the proposal.
c. Demonstrated competence and professional qualifications necessary for successfully
performing the work required by the City.
d. Recent team experience in successfully performing similar services.
e. Creativity of the proposed approach in completing the work.
f. Value
g. Writing skills.
h. References.
i. Background and experience of the specific individuals managing and assigned to this
project.
j. Information about how your company mitigates the environmental impact of its services,
such as greenhouse gas emissions, amount of waste generated, water and energy use, or
other areas related to your products and services.
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As reflected above, contract award will not be based solely on price, but on a combination of factors as
determined to be in the best interest of the City. After evaluating the proposals and discussing them
further with the finalists or the tentatively selected contractor, the City reserves the right to further
negotiate the proposed work and/or method and amount of compensation.
3. Proposal Review and Award Schedule. The following is an outline of the anticipated schedule for
proposal review and contract award:
a. Issue RFP 9/2/26
b. Pre-Proposal Conference (optional) 9/8/26
c. Receive proposals 9/11/26
d. Complete proposal evaluations 9/18/26
e. Conduct finalist interviews and finalize recommendation 9/23/26
f. Execute contract by 9/30/26
g. Start work 10/1/26
4. Pre-Proposal Conference. An optional pre-proposal conference call will be held to answer any
questions that prospective bidders may have regarding this RFP:
September 8, 2026
Contact Debbie Malicoat at dmalicoa@slocity.org for conference call link
5. Ownership of Materials. All original drawings, plan documents and other materials prepared by
or in possession of the Contractor as part of the work or services under these specifications shall
become the permanent property of the City and shall be delivered to the City upon demand.
6. Release of Reports and Information. Any reports, information, data, or other material given to,
prepared by or assembled by the Contractor as part of the work or services under these
specifications shall be the property of the City and shall not be made available to any individual
or organization by the Contractor without the prior written approval of the City.
7. Copies of Reports and Information. If the City requests additional copies of reports, drawings,
specifications, or any other material in addition to what the Contractor is required to furnish in
limited quantities as part of the work or services under these specifications, the Contractor shall
provide such additional copies as are requested, and City shall compensate the Contractor for the
costs of duplicating of such copies at the Contractor's direct expense.
8. Required Deliverable Products. The Contractor will be required to provide:
a. One electronic submission - digital-ready original .pdf of all final documents. If you wish
to file a paper copy, please submit in sealed envelope to the address provided in the RFP.
b. Corresponding computer files compatible with the following programs whenever possible
unless otherwise directed by the project manager:
Word Processing: MS Word
Spreadsheets: MS Excel
Desktop Publishing: InDesign
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Virtual Models: Sketch Up
Digital Maps: Geodatabase shape files in
State Plan Coordinate System as
specified by City GIS staff
c. City staff will review any documents or materials provided by the Contractor and, where
necessary, the Contractor will be required to respond to staff comments and make such
changes as deemed appropriate.
ALTERNATIVE PROPOSALS
9. Alternative Proposals. The proposer may submit an alternative proposal (or proposals) that it
believes will also meet the City's project objectives but in a different way. In this case, the
proposer must provide an analysis of the advantages and disadvantages of each alternative and
discuss under what circumstances the City would prefer one alternative to the other(s).
10. Attendance at Meetings and Hearings. As part of the workscope and included in the contract
price is attendance by the Contractor at up to [number] public meetings to present and discuss
its findings and recommendations. Contractor shall attend as many "working" meetings with staff
as necessary in performing work-scope tasks.
11. Accuracy of Specifications. The specifications for this project are believed by the City to be
accurate and to contain no affirmative misrepresentation or any concealment of fact. Bidders are
cautioned to undertake an independent analysis of any test results in the specifications, as City
does not guaranty the accuracy of its interpretation of test results contained in the specifications
package. In preparing its proposal, the bidder and all subcontractors named in its proposal shall
bear sole responsibility for proposal preparation errors resulting from any misstatements or
omissions in the plans and specifications that could easily have been ascertained by examining
either the project site or accurate test data in the City's possession. Although the effect of
ambiguities or defects in the plans and specifications will be as determined by law, any patent
ambiguity or defect shall give rise to a duty of bidder to inquire prior to proposal submittal. Failure
to so inquire shall cause any such ambiguity or defect to be construed against the bidder. An
ambiguity or defect shall be considered patent if it is of such a nature that the bidder, assuming
reasonable skill, ability and diligence on its part, knew or should have known of the existence of
the ambiguity or defect. Furthermore, failure of the bidder or subcontractors to notify City in
writing of specification or plan defects or ambiguities prior to proposal submittal shall waive any
right to assert said defects or ambiguities subsequent to submittal of the proposal.
To the extent that these specifications constitute performance specifications, the City shall not be
liable for costs incurred by the successful bidder to achieve the project’s objective or standard
beyond the amounts provided there for in the proposal.
In the event that, after awarding the contract, any dispute arises as a result of any actual or alleged
ambiguity or defect in the plans and/or specifications, or any other matter whatsoever,
Contractor shall immediately notify the City in writing, and the Contractor and all subcontractors
shall continue to perform, irrespective of whether or not the ambiguity or defect is major,
material, minor or trivial, and irrespective of whether or not a change order, time extension, or
additional compensation has been granted by City. Failure to provide the hereinbefore described
written notice within one (1) working day of contractor's becoming aware of the facts giving rise
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to the dispute shall constitute a waiver of the right to assert the causative role of the defect or
ambiguity in the plans or specifications concerning the dispute.
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F: PROPOSAL SUBMITTAL FORM
The undersigned declares that she or he has carefully examined [__________] which is hereby made a
part of this proposal; is thoroughly familiar with its contents; is authorized to represent the proposing
firm; and agrees to perform the specified work for the following cost quoted in full:
BID ITEM:
Total Price Scope A
Annual Price Scope B
Other
TOTAL $
Delivery of equipment to the City to be within _______ calendar days after contract execution and written
authorization to proceed.
q Certificate of insurance attached; insurance company’s A.M. Best rating: __________________.
Firm Name and Address
Contact Phone
Signature of Authorized Representative
Date
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G. REFERENCES
Number of years engaged in providing the services included within the scope of the specifications under the
present business name: .
Describe fully the last three contracts performed by your firm that demonstrate your ability to provide the
services included with the scope of the specifications. Attach additional pages if required. The City reserves
the right to contact each of the references listed for additional information regarding your firm's
qualifications.
Reference No. 1:
Agency Name
Contact Name
Telephone & Email
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
Reference No. 2:
Agency Name
Contact Name
Telephone & Email
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
Reference No. 3
Agency Name
Contact Name
Telephone & Email
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
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H. STATEMENT OF PAST CONTRACT DISQUALIFICATIONS
The proposer shall state whether it or any of its officers or employees who have a proprietary interest in it,
has ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state,
or local government project because of the violation of law, a safety regulation, or for any other reason,
including but not limited to financial difficulties, project delays, or disputes regarding work or product quality,
and if so to explain the circumstances.
Do you have any disqualification as described in the above paragraph to declare?
Yes ______ No ______
If yes, explain the circumstances.
Executed on at _______________________________________ under penalty of
perjury of the laws of the State of California, that the foregoing is true and correct.
______________________________________
Signature of Authorized Proposer Representative
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EXHIBIT A : FORM OF AGREEMENT
CITY OF SAN LUIS OBISPO
PROFESSIONAL SERVICES AGREEMENT
This agreement (Agreement) is made and entered into in the City of San Luis Obispo on
____________, by and between the City of San Luis Obispo, a municipal corporation and charter
city (City) and ____________ (collectively referred to as the “Parties”).
WITNESSETH:
WHEREAS, on [date], City requested proposals for Consulting Services to conduct a Citywide
User Fee Study and Prepare a Central Service Cost Allocation Plan and Labor Rates , (the “Project”);
and
WHEREAS, Consultant is qualified to perform this type of Services and has submitted a
written proposal to do so, which has been accepted by City; and
NOW, THEREFORE, in consideration of their mutual promises, obligations, and covenants
hereinafter contained, the Parties hereto agree as follows:
1. TERM. The term of this Agreement shall be from the date this Agreement is made and entered,
as first written above, until June 30, 2029, or upon acceptance and completion of said Services,
whichever occurs sooner.
2. INCORPORATION BY REFERENCE. City Request for Proposal for Consulting Services to conduct a
Citywide Service and Fee Study and Consultant's proposal are hereby incorporated in and made
a part of this Agreement, attached as Exhibit A. To the extent that there are any conflicts between
the Consultant’s fees and scope of work and the City’s terms and conditions as stated herein, the
City’s terms and conditions shall prevail unless specifically agreed otherwise in writing signed by
both Parties.
3. CITY’S OBLIGATIONS. For providing services as specified in this Agreement, City will pay and
Consultant shall receive therefor compensation in a total sum not to exceed $_______.
4. CONSULTANT’S OBLIGATIONS. For and in consideration of the payments and agreements
herein before mentioned to be made and performed by City, Consultant agrees with City to
do everything required by this Agreement including that work as set forth in Exhibit A.
5. PAYMENT OF TAXES. The contract prices shall include full compensation for all taxes that
Consultant is required to pay.
6. LICENSES AND PERMITS. At all times during the term of this Agreement, Consultant shall
have in full force and effect, all licenses required of it by law for the performance of the
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Services described in this Agreement. The Consultant shall procure all permits and licenses,
pay all charges and fees, and give all notices necessary under this Agreement.
7. COMPLIANCE WITH LAW. The Consultant shall keep itself informed of and shall observe and
comply with all applicable State and Federal laws and regulations, and county and City of San
Luis Obispo ordinances, regulations and adopted codes, which in any manner affect those
employed by Consultant or in any way affect the performance of the Services pursuant to
this Agreement. The City, and its officers and employees, shall not be liable at law or in equity
occasioned by failure of the Consultant to comply with this Section. Failure to comply with
local ordinances may result in monetary fines and cancellation of this Agreement.
8. COMPLIANCE WITH INDUSTRY STANDARD. Consultant shall provide services acceptable to
City in strict conformance with the Agreement. Consultant shall also provide in accordance with
the standards customarily called for under this Agreement using the degree of care and skill
ordinarily exercised by reputable providers of such services. Where approval by the City, the City
Manager, the Mayor, or other representative of City is required, it is understood to be general
approval only and does not relieve Consultant of responsibility for complying with all applicable
laws, codes, policies, regulations, and good business practices.
9. INDEPENDENT CONSULTANT.
a. Consultant is and shall at all times remain as to the City a wholly independent
Consultant. The personnel performing the Services under this Agreeme nt on behalf
of Consultant shall at all times be under Consultant's exclusive direction and control.
Neither City nor any of its officers, employees, or agents shall have control over the
conduct of Consultant or any of Consultant's officers, employees, or agents, except
as set forth in this Agreement. Consultant shall not at any time or in any manner
represent that it or any of its officers, employees, or agents are in any manner
officers, employees, or agents of the City. Consultant shall not incur or hav e the
power to incur any debt, obligation, or liability whatsoever against City, or bind City
in any manner.
b. No employee benefits shall be available to Consultant in connection with the
performance of this Agreement. Except for the fees paid to Consultant as provided
in the Agreement, City shall not pay salaries, wages, or other compensation to
Consultant for performing the Services hereunder for City. City shall not be liable for
compensation or indemnification to Consultant for injury or sickness arising out of
performing services hereunder.
10. PRESERVATION OF CITY PROPERTY. The Consultant shall provide and install suitable
safeguards, approved by the City, to protect City property from injury or damage. If City
property is injured or damaged resulting from Consultant’s operations, it shall be replaced
or restored at Consultant’s expense. The City’s facilities shall be replaced or restored to a
condition as good as when the Consultant began the work.
11. IMMIGRATION ACT OF 1986. The Consultant warrants on behalf of itself and all
subconsultants engaged for the performance of the Services that only persons authorized to
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work in the United States pursuant to the Immigration Reform and Control Act of 1986 and
other applicable laws shall be employed in the performance of the Services hereunder.
12. NON-DISCRIMINATION. In the performance of the Services, the Consultant agrees that it
will not engage in, nor permit such subconsultants as it may employ, to engage in
discrimination in employment of persons because of age, r ace, 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, o r services
provided by the Consultant (Net 30). Consultant will submit invoices monthly for actual
services performed. Invoices shall be submitted on or about the first business day of each
month, or as soon thereafter as practical, for services provided in the previous month.
Payment shall be made within thirty (30) days of receipt of each invoice as to all non -
disputed fees. If the City disputes any of Consultant's fees it shall give written notice to
Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth on
the invoice. Any final payment under this Agreement shall be made within forty -five (45)
days of receipt of an invoice, therefore.
14. INSPECTION. City shall at all times have the right to inspect the work being done un der this
Agreement and Consultant shall furnish City with every reasonable opportunity and
assistance required for City to ascertain that the Services of the Consultant are being
performed in accordance with the requirements and intentions of this Agreement. All work
done, and all materials furnished, if any, shall be subject to the City’s inspection and
approval. The inspection of such work shall not relieve Consultant of any of its obligations
under the Agreement.
15. RELEASE OF INFORMATION.
a. All information gained by Consultant in performance of this Agreement shall be
considered confidential and shall not be released by Consultant without City's prior
written authorization. Consultant, its officers, employees, agents, or subconsultants,
shall not, without written authorization from the City Manager or unless requested
by the City Attorney, voluntarily provide declarations, letters of support, testimony
at depositions, response to interrogatories, or other information concerning the
work performed under this Agreement. Response to a subpoena or court order shall
not be considered "voluntary" provided Consultant gives City notice of such court
order or subpoena.
b. Consultant shall promptly notify City should Consultant, its officers, employees,
agents, or subconsultants be served with any summons, complaint, subpoena, notice
of deposition, request for documents, interrogatories, request for admissions, or
other discovery request (“Discovery”), court order, or subpoena from any person or
party regarding this Agreement, unless the City is a party to any lawsuit, arbitration,
or administrative proceeding connected to such Discovery, or unless Consultant is
prohibited by law from informing the City of such Discovery. City retains the right,
but has no obligation, to represent Consultant a nd/or be present at any deposition,
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hearing, or similar proceeding as allowed by law. Unless City is a party to the lawsuit,
arbitration, or administrative proceeding and is averse to Consultant in such
proceeding, Consultant agrees to cooperate fully with City and to provide the
opportunity to review any response to Discovery requests provided by Consultant.
However, City's right to review any such response does not imply or mean the right
by City to control, direct, or rewrite said response.
16. OWNERSHIP OF DOCUMENTS.
a. Consultant shall maintain complete and accurate records with respect to sales, costs,
expenses, receipts, and other such information required by City that relate to the
performance of the Services under this Agreement. Consultant shall maintain
adequate records of services provided in sufficient detail to permit an evaluation of
services. All such records shall be maintained in accordance with generally accepted
accounting principles and shall be clearly identified and readily accessible. Consultant
shall provide free access to the representatives of City or its designees at reasonable
times to such books and records; shall give City the right to examine and audit said
books and records; shall permit City to make transcripts or copies therefrom a s
necessary; and shall allow inspection of all work, data, documents, proceedings, and
activities related to this Agreement. Such records, together with supporting
documents, shall be maintained for a period of three (3) years after receipt of final
payment.
b. Upon completion of, or in the event of termination or suspension of this Agreement,
all original documents, designs, drawings, maps, models, computer files, surveys,
notes, and other documents prepared in the course of providing the Services under
this Agreement shall become the sole property of the City and may be used, reused,
or otherwise disposed of by the City without the permission of the Consultant. With
respect to computer files, Consultant shall make available to the City, at the
Consultant's office and upon reasonable written request by the City, the necessary
computer software and hardware for purposes of accessing, compiling, transferring,
copying and/or printing computer files. Consultant hereby grants to City all right,
title, and interest, including any copyright, in and to the documents, designs,
drawings, maps, models, computer files, surveys, notes, and other documents
prepared by Consultant in the course of providing the Services under this Agreement.
17. INDEMNIFICATION AND DEFENSE. To the fullest extent permitted by law (including, but not
limited to California Civil Code Sections 2782 and 2782.8), Consultant shall indemnify,
defend, and hold harmless the City, and its elected officials, officers, employees, volunteers,
and agents (“City Indemnitees”), from and against any and all causes of action, claims,
liabilities, obligations, judgments, or damages, including reasonable legal counsels’ fees and
costs of litigation (“claims”), arising out of the Consultant’s performance or Consult ant’s
failure to perform its obligations under this Agreement or out of the operations conducted
by Consultant, including the City’s passive negligence, except for such loss or damage arising
from the sole or active negligence or willful misconduct of the City. In the event the City
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Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising
from Consultant’s performance of this Agreement, the Consultant shall provide a defense to
the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of
defense, including reasonable legal fees, incurred in defense of such claims.
18. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE.
a. The City may at any time, for any reason, with or without cause, suspend or terminate
this Agreement, or any portion hereof, by serving upon the Consultant at least thirty (30)
days prior written notice. Upon receipt of said notice, the Consultant shall immediately
cease all work under this Agreement, unless the notice provides otherwise. If the City
suspends or terminates a portion of this Agreement such suspension or termination shall
not make void or invalidate the remainder of this Agreement.
b. In the event this Agreement is terminated pursuant to this Section, the City shall pay to
Consultant the actual value of the work performed up to the time of termination,
provided that the work performed is of value to the City. Upon termination of the
Agreement pursuant to this Section, the Consultant will submit an invoice to the City
pursuant to Section 14.
19. TERMINATION FOR CAUSE. If, during the term of the Agreement, the City determines the
Consultant is not faithfully abiding by any term or condition contained herein, the City may
notify the Consultant in writing of such defect or failure to perform. This notice must give
the Consultant a ten (10) calendar day notice of time thereafter in which to perform said
work or cure the deficiency.
a. If the Consultant has not performed the work or cured the deficiency within the ten
(10) days specified in the notice, such shall constitute a breach of the Agreement and
the City may terminate the Agreement immediately by written notice to the
Consultant to said effect (“Notice of Termination”). Thereafter, neither party shall
have any further duties, obligations, responsibilities, or rights under the Agreement
except to comply with the obligations upon termination.
b. In said event, the Consultant shall be entitled to the reasonable value of its services
performed from the beginning date in which the breach occurs up to the day it
received the City’s Notice of Termination, minus any offset from such payment
representing the City’s damages from such breach. “Reasonable value” includes fees
or charges for goods or services as of the last milestone or task satisfactorily delivered
or completed by the Consultant as may be set forth in the Agreement payment
schedule; compensation for any other work or services performed or provided by the
Consultant shall be based solely on the City’s assessment of the value of the work-in-
progress in completing the overall scope.
c. The City reserves the right to delay such payment until completion or confirmed
abandonment of the project, as may be determined in the City’s sole discretion, so
as to permit a full and complete accounting of costs. In no event, however, shall the
Consultant be entitled to receive in excess of the not to exceed amount shown in this
Agreement.
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20. INSURANCE. Consultant shall maintain prior to the beginning of and for the duration of this
Agreement insurance coverage as specified in Exhibit B attached to and made part of this
Agreement.
21. BUSINESS LICENSE & TAX. The Consultant must have a valid City of San Luis Obispo
business license & tax certificate before execution of the contract. Additional
information regarding the City’s business tax program may be obtain ed by calling
(805) 781-7134.
22. SAFETY PROVISIONS. The Consultant shall conform to the rules and regulations
pertaining to safety established by OSHA and the California Division of Industrial Safety.
23. PUBLIC AND EMPLOYEE SAFETY. Whenever the Consultant operations create a condition
hazardous to the public or City employees, it shall, at its expense and without cost to the
City, furnish, erect and maintain such fences, temporary railings, barricades, lights, signs
and other devices and take such other protective measures as are necessary to prevent
accidents or damage or injury to the public and employees.
24. UNDUE INFLUENCE. Consultant declares and warrants that no undue influence or pressure was
used against or in concert with any officer or employee of the City in connection with the award,
terms or implementation of this Agreement, including any method of coercion, confidential
financial arrangement, or financial inducement. No officer or employee of the City has or will
receive compensation, directly or indirectly, from Consultant, or from any officer, employee or
agent of Consultant, in connection with the award of this Agreement or any work to be conducted
as a result of this Agreement. Violation of this Section shall be a material breach of this
Agreement entitling the City to any and all remedies at law or in equity.
25. ASSIGNMENT. The Consultant shall not assign, transfer, convey or otherwise dispose of the
contract, or its right, title or interest, or its power to execute such a contract to any individual
or business entity of any kind without the previous written consent of the City.
a. As required above, before retaining or contracting with any subconsultant for any services
under this Agreement, City must consent to such assignment of performance in writing.
For City to evaluate such proposed assignment, Consultant shall provide City with the
identity of the proposed subconsultant, a copy of the proposed written contract between
Consultant and such subconsultant, which shall include an indemnity provision similar to
the one provided herein and identifying City as an indemnified party, or an incorporation
of the indemnity provision provided herein, and proof that such proposed subconsultant
carries insurance at least equal to that required by this Agreement or obtain a written
waiver from City for such insurance.
26. AMENDMENT. Any amendment, modification, or variation from the terms of this Agreement
shall be in writing and shall be effective only upon approval by the appropriate review authority
according to the City’s Financial Management Manual. Consultant shall not be compensated for
any services rendered in connection with its performance of this Agreement which are in addition
to those set forth herein, unless such additional services are authorized by the City in advance
and in writing.
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27. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated
herein by reference, shall constitute the complete Agreement between the Parties hereto. No
oral agreement, understanding, or representation not reduced to writing and specifically
incorporated herein shall be of any force or effect, nor shall any such oral Agreement,
understanding, or representation be binding upon the Parties hereto. Each party is entering into
this Agreement based solely upon the representations set forth herein and upon each party's
own independent investigation of any and all facts such party deems material.
28. NOTICE. All notices to the Parties hereto under this Agreement shall be in writing and shall be
sent either by (i) personal service, (ii) delivery by a reputable document delivery service, such as,
but not limited to, Federal Express, which provides a receipt showing date and time of delivery,
or (iii) United States Mail, certified, postage prepaid, return receipt requested. All such notices
shall be delivered to the addressee or addressed as set forth below:
To City: City of San Luis Obispo
Finance Department
990 Palm Street
San Luis Obispo, CA 93401
To Consultant: Name
Mailing Address
29. GOVERNING LAW. Any action arising out of this Agreement shall be brought in the Superior
Court of San Luis Obispo County, California, regardless of where else venue may lie. The
validity, interpretation, construction and performance of this Agreement, and all acts and
transactions pursuant hereto and the rights and obligations of the Parties hereto shall be
governed, construed and interpreted in accordance with the laws of the State of California,
without giving effect to principles of conflicts of law.
30. AUTHORITY TO EXECUTE AGREEMENT. Both City and Consultant do covenant that each
individual executing this Agreement on behalf of each party is a person duly authorized and
empowered to execute Agreements for such party.
IN WITNESS WHEREOF, the Parties hereto have caused this instrument to be executed the day and year
first above written.
CITY CONSULTANT
_______________________________
By: [Name]
Its: [Title of City Manager or Department Head]
_______________________________
By: [Name]
Its: [Title]
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APPROVED AS TO FORM:
_______________________________
By: J. Christine Dietrick, City Attorney
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EXHIBIT A
[Placeholder for RFP and Consultant’s Proposal]
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EXHIBIT B – INSURANCE
Insurance Requirements – Standard Professional Services
The Contractor shall procure and maintain for the duration of the contract insurance against claims
for injuries to persons or damages to property which may arise from or in connection with the
performance of the work hereunder by the Contractor, its agents, representatives, employees or
subcontractors.
Minimum Scope of Insurance. Coverage shall be at least as broad as:
1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001).
2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1
(any auto).
3. Workers' Compensation insurance as required by the State of California and Employer's Liability
Insurance.
Minimum Limits of Insurance. Contractor shall maintain limits no less than:
1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property
damage. If Commercial General Liability or other form with a general aggregate limit is used,
either the general aggregate limit shall apply separately to this project/location or the general
aggregate limit shall be twice the required occurrence limit of $2,000,000.
2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.
3. Employer's Liability: $1,000,000 per accident for bodily injury or disease.
Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to
and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such
deductibles or self-insured retentions as respects the City, its officers, officials, employees and
volunteers; or the Contractor shall procure a bond guaranteeing payment of losses and related
investigations, claim administration and defense expenses.
Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be
endorsed to contain, the following provisions:
1. The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as
respects: liability arising out of activities performed by or on behalf of the Contractor; products
and completed operations of the Contractor; premises owned, occupied or used by the
Contractor; or automobiles owned, leased, hired or borrowed by the Contractor. The coverage
shall contain no special limitations on the scope of protection afforded to the City, its officers,
official, employees, agents or volunteers.
2. For any claims related to this project, the Contractor's insurance coverage shall be primary
insurance as respects the City, its officers, officials, employees, agents and volunteers. Any
insurance or self-insurance maintained by the City, its officers, officials, employees, agents or
volunteers shall be excess of the Contractor's insurance and shall not contribute with it.
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3. The Contractor's insurance shall apply separately to each insured against whom claim is made
or suit is brought, except with respect to the limits of the insurer's liability.
4. Each insurance policy required by this clause shall be endorsed to state that coverage shall not
be suspended, voided, canceled by either party, reduced in coverage or in limits except after
thirty
(30) days' prior written notice by certified mail, return receipt requested, has been given to the City.
Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating
of no less than A:VII.
Verification of Coverage. Contractor shall furnish the City with a certificate of insurance showing
maintenance of the required insurance coverage. Original endorsements effecting general liability
and automobile liability coverage required by this clause must also be provided. The endorsements are
to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements
are to be received and approved by the City before work commences.
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