HomeMy WebLinkAboutItem 12e - Class & Compensation Study, and Supplemental Budget Appropriation
DATE: March 3, 2020
TO: Honorable Mayor and City Council
FROM: Hue C. Quach, Administrative Services Director
By: Shama P. Curian, Human Resources Administrator
SUBJECT: PROFESSIONAL SERVICES AGREEMENT WITH RALPH ANDERSEN &
ASSOCIATES FOR UPDATES TO THE 2017 CLASSIFICATION AND
COMPENSATION STUDY IN THE AMOUNT OF $25,000, AND
AUTHORIZE AN ADDITIONAL $5,000 FOR CONTINGENCY WORK
BEYOND THE SCOPE OF SERVICES DEFINED
Recommendation: Approve
RESOLUTION NO. 7296 AMENDING THE FISCAL YEAR 2019-20
GENERAL FUND BUDGET AUTHORIZING A BUDGET
APPROPRIATION OF $15,000 TO COMMENCE WITH A REVIEW AND
UPDATE TO THE 2017 CLASSIFICATION AND COMPENSATION
STUDY
Recommendation: Approve
SUMMARY
In April 2017, the City utilized the services of Ralph Andersen & Associates to conduct a
comprehensive Classification and Compensation Study that assessed the industry
alignment of comparable public sector positions within the regional market.
Nonetheless, this study was not finalized to its completion nor used as a basis for
conducting negotiations at that time. In anticipation of upcoming labor negotiations with
the City’s five bargaining groups, a review and update of this report is warranted to
accurately determine the current position of the City within the labor market.
Therefore, it is recommended that the City Council approve and authorize a
Professional Services Agreement with Ralph Andersen & Associates for an update to
the 2017 Classification and Compensation Study in the amount of $25,000, authorize an
additional $5,000 for contingencies, and approve Resolution No. 7296 authorizing an
additional budget appropriation of $15,000 to complete the work. A copy of the
proposed Professional Services Agreement is attached to this agenda report.
Professional Services Agreement Ralph Andersen & Associates for Class &
Compensation Study and Supplemental Budget Appropriation
March 3, 2020
Page 2 of 4
BACKGROUND
In April 2017, the City entered into a professional services agreement with Ralph
Andersen & Associates to conduct a total compensation study to assist during labor
negotiations. The study evaluated 18 survey agencies, with 88 classifications identified
as survey jobs to be used for comparison purposes in relation to the regional labor
market. While the results of that study were never finalized, negotiations continued to
move forward with both the City and the bargaining groups making conscious efforts to
discuss terms and conditions within the fiscally responsible cost parameters
established. These focused efforts helped shape the adoption of Resolution Nos. 7203,
7204, 7205, 7206, and 7207, establishing compensation and related benefits for all
employee groups. The Resolutions reflected a continuation of the majority of existing
working terms and conditions and provided moderate cost of living adjustments.
DISCUSSION
As the terms in the current Memoranda of Understanding (“MOUs”) are set to expire on
June 30, 2020, an update to the 2017 Classification and Compensation Study is needed
to assist the City in the upcoming labor negotiations. Ralph Andersen & Associates
have agreed that the scope of work needed to bring the report up to current will include:
• A total compensation labor market survey of cities impacting the Arcadia area
job market, which includes a comprehensive review of the 2017 Classification
and Compensation Survey, and any subsequent updates to the survey for: base
salary, CalPERS employer paid retirement contributions, certification pay,
educational incentives, employer paid insurance contributions, and leave
benefits.
• Salary recommendations for all job classifications based on the results of the
labor market survey and an analysis of internal relationships.
• Presentation of preliminary and final total compensation reports of all findings
and recommendations.
If any additional work beyond the scope of work is required, the City will be billed at the
firm’s standard hourly rate of $135/hour. While $25,000 is sufficient to successfully
complete the work plus on-site trips and subsequent travel expenses, it is
recommended that additional funding be authorized to provide the ability for
consideration of additional contingency work that may result from the study. The
Administrative Services Department has estimated that the total amount of additional
work program items could total up to $5,000 which would bring the total project cost to
$30,000.
Professional Services Agreement Ralph Andersen & Associates for Class &
Compensation Study and Supplemental Budget Appropriation
March 3, 2020
Page 3 of 4
Ralph Andersen & Associates has over 47 years of local government consulting
experience serving the needs of cities, counties, special districts, and state
governments. The services provided in the study will include the following:
• Meeting with City representatives at project initiation to confirm the study
goals and deliverables.
• Review of background data including previous survey, existing class
specifications, organizational charts, salary schedules, and other relevant
information.
• Review historical practices, discuss potential changes to survey agencies,
survey job classifications, and identify data collection needs.
• Collection and analysis of compensation data from survey agencies which will
include pay structure trends and base salary analysis to ensure appropriate
comparison criteria. Develop draft and final reports incorporating all study
recommendations and supporting data.
• Presentation of findings to managers, employees, labor representatives,
project committees, and the City Council, as needed.
The approach Ralph Andersen & Associates uses to conduct classification and
compensation studies is customized to the specific needs and objectives of their clients.
While the work plan attached to the Professional Services Agreement has been proven
to be effective, they are willing to adjust their approach throughout the process to better
fit the City’s needs. Additionally, the primary contact who will be assigned to the project
is familiar with the City’s historical practices from their involvement in the Study
conducted in 2017. As such, it is recommended that Ralph Andersen & Associates be
awarded the Professional Services Agreement.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental
Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the
environment. Thus, this matter is exempt under CEQA.
FISCAL IMPACT
The proposed services for the Classification and Compensation Study based on the
expected level of involvement, including on-site meetings and any subsequent travel
expenses, is $25,000. An additional $5,000 is requested for contingencies that may
result from the study, to be used only if needed. The Human Resources Division Fiscal
Professional Services Agreement Ralph Andersen & Associates for Class &
Compensation Study and Supplemental Budget Appropriation
March 3, 2020
Page 4 of 4
Year 2019-20 Operating Budget has a placeholder amount of $15,000 for cost for a
Salary Survey. A supplemental appropriation for $15,000 is being requested to cover
the total cost of $30,000 to conduct an update to the 2017 Classification and
Compensation Study.
RECOMMENDATION
It is recommended that the City Council:
• It is recommended the City Council determines that this action does not
constitute a project and is therefore exempt under the California
Environmental Quality Act (“CEQA”); and
• Approve, and authorize and direct the City Manager to execute a
Professional Services Agreement with Ralph Andersen & Associates for
updates to the 2017 Classification and Compensation Study in the amount
of $25,000, and authorize an additional $5,000 for contingency work
beyond the scope of services defined in the City’s request for proposals;
and
• Adopt Resolution No. 7296 amending the Fiscal Year 2019-20 General
Fund Budget authorizing a budget appropriation of $15,000 to commence
with a review and update to the 2017 Classification and Compensation
Study.
Attachments: Professional Services Agreement
Resolution No. 7296
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CITY OF ARCADIA
PROFESSIONAL SERVICES AGREEMENT
This Agreement is made and entered into as of ________________, 20____ by and
between the City of Arcadia, a municipal corporation organized and operating under the laws of
the State of California with its principal place of business at 240 West Huntington Drive, Arcadia,
California 91066 (“City”), and Ralph Andersen & Associates, a California Corporation with it
principal place of business at 5800 Stanford Ranch Rd., Suite 410, Rocklin, CA 95765 (hereinafter
referred to as “Consultant”). City and Consultant are sometimes individually referred to as “Party”
and collectively as “Parties” in this Agreement.
RECITALS
A. City is a public agency of the State of California and is in need of professional
services for the following project:
Classification and Compensation Study (hereinafter referred to as “the Project”).
B. Consultant is duly licensed and has the necessary qualifications to provide such
services.
C. The Parties desire by this Agreement to establish the terms for City to retain
Consultant to provide the services described herein.
AGREEMENT
NOW, THEREFORE, IT IS AGREED AS FOLLOWS:
1. Services.
Consultant shall provide the City with the services described in the Scope of Services
attached hereto as Exhibit “A.”
2. Compensation.
a. Subject to paragraph 2(b) below, the City shall pay for such services in
accordance with the Schedule of Charges set forth in Exhibit “B.”
b. In no event shall the total amount paid for services rendered by Consultant
under this Agreement exceed the sum of $30,000. This amount is to cover all printing and related
costs, and the City will not pay any additional fees for printing expenses. Periodic payments shall
be made within 30 days of receipt of an invoice which includes a detailed description of the work
performed. Payments to Consultant for work performed will be made on a monthly billing basis.
3. Additional Work.
If changes in the work seem merited by Consultant or the City, and informal consultations
with the other party indicate that a change is warranted, it shall be processed in the following
manner: a letter outlining the changes shall be forwarded to the City by Consultant with a
statement of estimated changes in fee or time schedule. An amendment to this Agreement shall
be prepared by the City and executed by both Parties before performance of such services, or
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the City will not be required to pay for the changes in the scope of work. Such amendment shall
not render ineffective or invalidate unaffected portions of this Agreement.
4. Maintenance of Records.
Books, documents, papers, accounting records, and other evidence pertaining to costs
incurred shall be maintained by Consultant and made available at all reasonable times during the
contract period and for four (4) years from the date of final payment under the contract for
inspection by City.
5. Time of Performance
Consultant shall perform its services in a prompt and timely manner and shall commence
performance upon receipt of written notice from the City to proceed (“Notice to Proceed”).
Consultant shall complete the services required hereunder within the Activity Schedule in Exhibit
C. The Notice to Proceed shall set forth the date of commencement of work.
6. Delays in Performance.
a. Neither City nor Consultant shall be considered in default of this Agreement for
delays in performance caused by circumstances beyond the reasonable control of the non-
performing party. For purposes of this Agreement, such circumstances include but are not limited
to, abnormal weather conditions; floods; earthquakes; fire; epidemics; war; riots and other civil
disturbances; strikes, lockouts, work slowdowns, and other labor disturbances; sabotage or
judicial restraint.
b. Should such circumstances occur, the non-performing party shall, within a
reasonable time of being prevented from performing, give written notice to the other party
describing the circumstances preventing continued performance and the efforts being made to
resume performance of this Agreement.
7. Compliance with Law.
a. Consultant shall comply with all applicable laws, ordinances, codes and
regulations of the federal, state and local government, including Cal/OSHA requirements.
b. If required, Consultant shall assist the City, as requested, in obtaining and
maintaining all permits required of Consultant by federal, state and local regulatory agencies.
c. If applicable, Consultant is responsible for all costs of clean up and/ or removal of
hazardous and toxic substances spilled as a result of his or her services or operations performed
under this Agreement.
8. Standard of Care
Consultant’s services will be performed in accordance with generally accepted
professional practices and principles and in a manner consistent with the level of care and skill
ordinarily exercised by members of the profession currently practicing under similar conditions.
9. Assignment and Subconsultant
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Consultant shall not assign, sublet, or transfer this Agreement or any rights under or
interest in this Agreement without the written consent of the City, which may be withheld for any
reason. Any attempt to so assign or so transfer without such consent shall be void and without
legal effect and shall constitute grounds for termination. Subcontracts, if any, shall contain a
provision making them subject to all provisions stipulated in this Agreement. Nothing contained
herein shall prevent Consultant from employing independent associates, and subconsultants as
Consultant may deem appropriate to assist in the performance of services hereunder.
10. Independent Contractor
Consultant is retained as an independent contractor and is not an employee of City. No
employee or agent of Consultant shall become an employee of City. The work to be performed
shall be in accordance with the work described in this Agreement, subject to such directions and
amendments from City as herein provided.
11. Insurance. Consultant shall not commence work for the City until it has provided
evidence satisfactory to the City it has secured all insurance required under this section. In
addition, Consultant shall not allow any subcontractor to commence work on any subcontract until
it has secured all insurance required under this section.
a. Commercial General Liability
(i) The Consultant shall take out and maintain, during the performance
of all work under this Agreement, in amounts not less than specified herein, Commercial General
Liability Insurance, in a form and with insurance companies acceptable to the City.
(ii) Coverage for Commercial General Liability insurance shall be at
least as broad as the following:
(1) Insurance Services Office Commercial General Liability
coverage (Occurrence Form CG 00 01) or exact equivalent.
(iii) Commercial General Liability Insurance must include coverage
for the following:
(1) Bodily Injury and Property Damage
(2) Personal Injury/Advertising Injury
(3) Premises/Operations Liability
(4) Products/Completed Operations Liability
(5) Aggregate Limits that Apply per Project
(6) Explosion, Collapse and Underground (UCX) exclusion
deleted
(7) Contractual Liability with respect to this Agreement
(8) Property Damage
(9) Independent Consultants Coverage
(iv) The policy shall contain no endorsements or provisions limiting
coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured
against another; (3) products/completed operations liability; or (4) contain any other exclusion
contrary to the Agreement.
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(v) The policy shall give City, its officials, officers, employees, agents
and City designated volunteers additional insured status using ISO endorsement forms CG 20 10
10 01 and 20 37 10 01, or endorsements providing the exact same coverage.
(vi) The general liability program may utilize either deductibles or
provide coverage excess of a self-insured retention, subject to written approval by the City, and
provided that such deductibles shall not apply to the City as an additional insured.
b. Automobile Liability
(i) At all times during the performance of the work under this
Agreement, the Consultant shall maintain Automobile Liability Insurance for bodily injury and
property damage including coverage for owned, non-owned and hired vehicles, in a form and with
insurance companies acceptable to the City.
(ii) Coverage for automobile liability insurance shall be at least as
broad as Insurance Services Office Form Number CA 00 01 covering automobile liability
(Coverage Symbol 1, any auto).
(iii) The policy shall give City, its officials, officers, employees, agents
and City designated volunteers additional insured status.
(iv) Subject to written approval by the City, the automobile liability
program may utilize deductibles, provided that such deductibles shall not apply to the City as an
additional insured, but not a self-insured retention.
c. Workers’ Compensation/Employer’s Liability
(i) Consultant certifies that he/she is aware of the provisions of Section
3700 of the California Labor Code which requires every employer to be insured against liability
for workers’ compensation or to undertake self-insurance in accordance with the provisions of
that code, and he/she will comply with such provisions before commencing work under this
Agreement.
(ii) To the extent Consultant has employees at any time during the term
of this Agreement, at all times during the performance of the work under this Agreement, the
Consultant shall maintain full compensation insurance for all persons employed directly by
him/her to carry out the work contemplated under this Agreement, all in accordance with the
“Workers’ Compensation and Insurance Act,” Division IV of the Labor Code of the State of
California and any acts amendatory thereof, and Employer’s Liability Coverage in amounts
indicated herein. Consultant shall require all subconsultants to obtain and maintain, for the period
required by this Agreement, workers’ compensation coverage of the same type and limits as
specified in this section.
d. Professional Liability (Errors and Omissions)
At all times during the performance of the work under this Agreement the Consultant shall
maintain professional liability or Errors and Omissions insurance appropriate to its profession, in
a form and with insurance companies acceptable to the City and in an amount indicated herein.
This insurance shall be endorsed to include contractual liability applicable to this Agreement and
shall be written on a policy form coverage specifically designed to protect against acts, errors or
omissions of the Consultant. “Covered Professional Services” as designated in the policy must
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specifically include work performed under this Agreement. The policy must “pay on behalf of” the
insured and must include a provision establishing the insurer's duty to defend.
e. Minimum Policy Limits Required
(i) The following insurance limits are required for the Agreement:
Combined Single Limit
Commercial General Liability $1,000,000 per occurrence/ $2,000,000 aggregate
for bodily injury, personal injury, and property
damage
Automobile Liability $1,000,000 per occurrence for bodily injury and
property damage
Employer’s Liability $1,000,000 per occurrence
Professional Liability $1,000,000 per claim and aggregate (errors and
omissions)
(ii) Defense costs shall be payable in addition to the limits.
(iii) Requirements of specific coverage or limits contained in this
section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of
any coverage normally provided by any insurance. Any available coverage shall be provided to
the parties required to be named as Additional Insured pursuant to this Agreement.
f. Evidence Required
Prior to execution of the Agreement, the Consultant shall file with the City evidence
of insurance from an insurer or insurers certifying to the coverage of all insurance required
herein. Such evidence shall include original copies of the ISO CG 00 01 (or insurer’s equivalent)
signed by the insurer’s representative and Certificate of Insurance (Acord Form 25-S or
equivalent), together with required endorsements. All evidence of insurance shall be signed by
a properly authorized officer, agent, or qualified representative of the insurer and shall certify the
names of the insured, any additional insureds, where appropriate, the type and amount of the
insurance, the location and operations to which the insurance applies, and the expiration date of
such insurance.
g. Policy Provisions Required
(i) Consultant shall provide the City at least thirty (30) days prior
written notice of cancellation of any policy required by this Agreement, except that the Consultant
shall provide at least ten (10) days prior written notice of cancellation of any such policy due to
non-payment of premium. If any of the required coverage is cancelled or expires during the term
of this Agreement, the Consultant shall deliver renewal certificate(s) including the General
Liability Additional Insured Endorsement to the City at least ten (10) days prior to the effective
date of cancellation or expiration.
(ii) The Commercial General Liability Policy and Automobile Policy
shall each contain a provision stating that Consultant’s policy is primary insurance and that any
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insurance, self-insurance or other coverage maintained by the City or any named insureds shall
not be called upon to contribute to any loss.
(iii) The retroactive date (if any) of each policy is to be no later than the
effective date of this Agreement. Consultant shall maintain such coverage continuously for a
period of at least three years after the completion of the work under this Agreement. Consultant
shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced
past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the
policy is replaced by another claims-made policy with a retroactive date subsequent to the
effective date of this Agreement.
(iv) All required insurance coverages, except for the professional
liability coverage, shall contain or be endorsed to waiver of subrogation in favor of the City, its
officials, officers, employees, agents, 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.
(v) The limits set forth herein shall apply separately to each insured
against whom claims are made or suits are brought, except with respect to the limits of liability.
Further the limits set forth herein shall not be construed to relieve the Consultant from liability in
excess of such coverage, nor shall it limit the Consultant’s indemnification obligations to the City
and shall not preclude the City from taking such other actions available to the City under other
provisions of the Agreement or law.
h. Qualifying Insurers
(i) All policies required shall be issued by acceptable insurance
companies, as determined by the City, which satisfy the following minimum requirements:
(1) Each such policy shall be from a company or companies
with a current A.M. Best's rating of no less than A:VII and admitted to transact in the
business of insurance in the State of California, or otherwise allowed to place insurance
through surplus line brokers under applicable provisions of the California Insurance Code
or any federal law.
i. Additional Insurance Provisions
(i) The foregoing requirements as to the types and limits of insurance
coverage to be maintained by Consultant, and any approval of said insurance by the City, is not
intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise
assumed by the Consultant pursuant to this Agreement, including but not limited to, the
provisions concerning indemnification.
(ii) If at any time during the life of the Agreement, 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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(iii) The City may require the Consultant to provide complete copies of
all insurance policies in effect for the duration of the Project.
(iv) Neither the City nor any of its officials, officers, employees, agents
or volunteers shall be personally responsible for any liability arising under or by virtue of this
Agreement.
j. Subconsultant Insurance Requirements. Consultant shall not allow any
subcontractors or subconsultants to commence work on any subcontract until they have provided
evidence satisfactory to the City that they have secured all insurance required under this section.
Policies of commercial general liability insurance provided by such subcontractors or
subconsultants shall be endorsed to name the City as an additional insured using ISO form CG
20 38 04 13 or an endorsement providing the exact same coverage. If requested by Consultant,
City may approve different scopes or minimum limits of insurance for particular subcontractors
or subconsultants.
12. Indemnification.
a. To the fullest extent permitted by law, Consultant shall defend (with counsel
of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, and
agents free and harmless from any and all claims, demands, causes of action, costs, expenses,
liability, loss, damage or injury of any kind, in law or equity, to property or persons, including
wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or
omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors,
consultants or agents in connection with the performance of the Consultant’s services, the Project
or this Agreement, including without limitation the payment of all damages, expert witness fees
and attorney’s fees and other related costs and expenses. Consultant's obligation to indemnify
shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials,
officers, employees, agents, or volunteers.
b. To the extent required by Civil Code section 2782.8, which is fully
incorporated herein, Consultant’s obligations under the above indemnity shall be limited to claims
that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the
Consultant, but shall not otherwise be reduced. If Consultant’s obligations to defend, indemnify,
and/or hold harmless arise out of Consultant’s performance of “design professional services” (as
that term is defined under Civil Code section 2782.8), then upon Consultant obtaining a final
adjudication that liability under a claim is caused by the comparative active negligence or willful
misconduct of the City, Consultant’s obligations shall be reduced in proportion to the established
comparative liability of the City and shall not exceed the Consultant’s proportionate percentage
of fault.
13. California Labor Code Requirements.
a. Consultant is aware of the requirements of California Labor Code Sections
1720 et seq. and 1770 et seq., which require the payment of prevailing wage rates and the
performance of other requirements on certain “public works” and “maintenance” projects
(“Prevailing Wage Laws”). If the services are being performed as part of an applicable “public
works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total
compensation is $15,000 or more for maintenance or $25,000 or more for construction, alteration,
demolition, installation, or repair, Consultant agrees to fully comply with such Prevailing Wage
Laws. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and
agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any
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failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon
the Consultant and all subconsultants to comply with all California Labor Code provisions, which
include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775),
employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code
Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment
of contractors and subcontractors (Labor Code Section 1777.1).
b. If the services are being performed as part of an applicable “public works”
or “maintenance” project and if the total compensation is $15,000 or more for maintenance or
$25,000 or more for construction, alteration, demolition, installation, or repair, then pursuant to
Labor Code Sections 1725.5 and 1771.1, the Consultant and all subconsultants performing such
services must be registered with the Department of Industrial Relations. Consultant shall maintain
registration f or the duration of the Project and require the same of any subconsultants, as
applicable. This Project may also be subject to compliance monitoring and enforcement by the
Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all
applicable registration and labor compliance requirements.
c. This Agreement may also be subject to compliance monitoring and
enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility
to comply with all applicable registration and labor compliance requirements. Any stop orders
issued by the Department of Industrial Relations against Consultant or any subcontractor that
affect Consultant’s performance of services, including any delay, shall be Consultant’s sole
responsibility. Any delay arising out of or resulting from such stop orders shall be considered
Consultant caused delay and shall not be compensable by the City. Consultant shall defend,
indemnify and hold the City, its officials, officers, employees and agents free and harmless from
any claim or liability arising out of stop orders issued by the Department of Industrial Relations
against Consultant or any subcontractor.
14. Verification of Employment Eligibility.
By executing this Agreement, Consultant verifies that it fully complies with all requirements
and restrictions of state and federal law respecting the employment of undocumented aliens,
including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended
from time to time, and shall require all subconsultants and sub-subconsultants to comply with the
same.
15. Laws and Venue.
This Agreement shall be interpreted in accordance with the laws of the State of California.
If any action is brought to interpret or enforce any term of this Agreement, the action shall be
brought in a state or federal court situated in the County of Los Angeles, State of California.
16. Termination or Abandonment
a. City has the right to terminate or abandon any portion or all of the work
under this Agreement by giving ten (10) calendar days written notice to Consultant. In such event,
City shall be immediately given title and possession to all original field notes, drawings and
specifications, written reports and other documents produced or developed for that portion of the
work completed and/or being abandoned. City shall pay Consultant the reasonable value of
services rendered for any portion of the work completed prior to termination. If said termination
occurs prior to completion of any task for the Project for which a payment request has not been
received, the charge for services performed during such task shall be the reasonable value of
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such services, based on an amount mutually agreed to by City and Consultant of the portion of
such task completed but not paid prior to said termination. City shall not be liable for any costs
other than the charges or portions thereof which are specified herein. Consultant shall not be
entitled to payment for unperformed services, and shall not be entitled to damages or
compensation for termination of work.
b. Consultant may terminate its obligation to provide further services under
this Agreement upon thirty (30) calendar days’ written notice to City only in the event of substantial
failure by City to perform in accordance with the terms of this Agreement through no fault of
Consultant.
17. Documents. Except as otherwise provided in “Termination or Abandonment,”
above, all original field notes, written reports, Drawings and Specifications and other documents,
produced or developed for the Project shall, upon payment in full for the services described in this
Agreement, be furnished to and become the property of the City.
18. Organization
Consultant shall assign Doug Johnson as Project Manager. The Project Manager shall
not be removed from the Project or reassigned without the prior written consent of the City.
19. Limitation of Agreement.
This Agreement is limited to and includes only the work included in the Project described
above.
20. Notice
Any notice or instrument required to be given or delivered by this Agreement may be given
or delivered by depositing the same in any United States Post Office, certified mail, return receipt
requested, postage prepaid, addressed to:
CITY:
City of Arcadia
240 West Huntington Drive
Arcadia, CA 91066
Attn: Shama Curian, Human Resources
Division
CONSULTANT:
Ralph Andersen & Associates
5800 Stanford Ranch Road, Suite 410
Rocklin, California 95765
and shall be effective upon receipt thereof.
21. Third Party Rights
Nothing in this Agreement shall be construed to give any rights or benefits to anyone other
than the City and the Consultant.
22. Equal Opportunity Employment.
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Consultant represents that it is an equal opportunity employer and that it shall not
discriminate against any employee or applicant for employment because of race, religion, color,
national origin, ancestry, sex, age or other interests protected by the State or Federal
Constitutions. Such non-discrimination shall include, but not be limited to, all activities related to
initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or
termination.
23. Entire Agreement
This Agreement, with its exhibits, represents the entire understanding of City and
Consultant as to those matters contained herein, and supersedes and cancels any prior or
contemporaneous oral or written understanding, promises or representations with respect to
those matters covered hereunder. Each party acknowledges that no representations,
inducements, promises or agreements have been made by any person which are not incorporated
herein, and that any other agreements shall be void. This Agreement may not be modified or
altered except in writing signed by both Parties hereto. This is an integrated Agreement.
24. Severability
The unenforceability, invalidity or illegality of any provision(s) of this Agreement shall not
render the provisions unenforceable, invalid or illegal.
25. Successors and Assigns
This Agreement shall be binding upon and shall inure to the benefit of the successors in
interest, executors, administrators and assigns of each party to this Agreement. However,
Consultant shall not assign or transfer by operation of law or otherwise any or all of its rights,
burdens, duties or obligations without the prior written consent of City. Any attempted assignment
without such consent shall be invalid and void.
26. Non-Waiver
None of the provisions of this Agreement shall be considered waived by either party,
unless such waiver is specifically specified in writing.
27. Time of Essence
Time is of the essence for each and every provision of this Agreement.
28. City’s Right to Employ Other Consultants
City reserves its right to employ other consultants, including engineers, in connection with
this Project or other projects.
29. Prohibited Interests
Consultant maintains and warrants that it has not employed nor retained any company or
person, other than a bona fide employee working solely for Consultant, to solicit or secure this
Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any
company or person, other than a bona fide employee working solely for Consultant, any fee,
commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting
from the award or making of this Agreement. For breach or violation of this warranty, City shall
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have the right to rescind this Agreement without liability. For the term of this Agreement, no
director, official, officer or employee of City, during the term of his or her service with City, shall
have any direct interest in this Agreement, or obtain any present or anticipated material benefit
arising therefrom.
[SIGNATURES ON FOLLOWING PAGE]
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SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF ARCADIA
AND RALPH ANDERSEN & ASSOCIATES
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first
written above.
CITY OF ARCADIA RALPH ANDERSEN & ASSOCIATES
By: By:
Dominic Lazzaretto
City Manager Its:
Printed Name:
ATTEST:
By:
City Clerk
APPROVED AS TO FORM:
By:
City Attorney
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EXHIBIT A
Scope of Services
Task 1- Project Kick-Off
The consultants will begin all administrative and coordinative efforts in support of the project initiation.
Among other things, this will include:
• Preparation of a project schedule
• Identification and review of background data including existing class specifications, organization
charts, previous survey, employee listings, salary schedules, and related information
• Identification of scheduling parameters for meetings and interaction with various City
stakeholders.
This initial step in the study process will be used to identify significant compensation concerns that
should be clarified during the initial meeting or addressed during the course of the study.
Task 2 – Confirm Survey Agencies and Survey Jobs
The firm has significant experience analyzing, identifying, and recommending specific survey agencies
that best reflect the competitive labor market and also have comparable jobs. Our approach includes a
review of several factors including historical practices, geographic proximity, agency size, and a variety
of demographic measures. Our analysis will result in a discussion of potential changes to the City’s
historical survey agencies in order to best match 2020 market conditions.
The consultants will identify survey job classifications in consultation with appropriate City stakeholders.
It is anticipated that at least 88 job classifications will be surveyed. Benchmark classifications would be
identified upon completion of survey tasks to ensure that the best, most statistically valid data is used to
establish the pay plan.
Task 3 – Collect Compensation Data
After the compensation policy discussion, the consultant team will collect and analyze the compensation
data. We do not typically rely on the development of a survey packet since such efforts are not the most
efficient method for compiling survey data. If preferred, we can prepare a survey packet for distribution
to survey agencies, however, our typical approach would include:
• Initial contact to each labor market employer included in the study to explain the purpose and
scope of the survey and confirm cooperation.
• The collection and analysis of source documents from each survey agency including position
control documents, budgets, job descriptions, organization charts, salary schedules, benefit
summaries, and MOUs.
• The development and use of an online survey data collection form or spreadsheet for those
agencies that prefer this approach and where the consultants are unable to utilize source
documents.
• The development of follow-up and clarification questions for each survey agencies based on our
review of documents.
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• The confirmation of all compensation data through telephone calls, email, and other means. This
will assure that comparability is established and that all compensation data is factual and
complete.
The consultants will document key comparability criteria for all survey jobs, including a thorough
understanding of resources, staffing, reporting relationships, and functional areas of management. We
will work closely with the City’s Human Resources staff to ensure comparable data is used.
Task 4 – Compile and Format Compensation Data
The salary and benefit data, once collected and thoroughly reviewed for completeness and accuracy, will
be appropriately formatted and the results tabulated in a consistent and uniform manner by the project
consultants. The analysis will include pay structure trends and base salary analysis to ensure all
appropriate comparison criteria is available for developing recommendations. Through the use of
spreadsheet applications developed by our office, it is anticipated that standard formulas will be applied
in the calculation of the survey data mean, median, and selected percentiles, with the corresponding
percentage relationship to the market data also calculated. Data presentation will be customized to fit
the City’s objectives.
Task 5 – Audit and Finalize Compensation Data
Prior to developing specific salary recommendations, the consultants will thoroughly review and audit
the collected survey data. This will include a detailed analysis of data reliability, comparability, statistical
validity, and consistency. This audit will be conducted by the project manager independent of the
consultant who collected that data. This will ensure that the most accurate and defensible survey data is
utilized in comparing the City’s compensation plan to the pay practices of the labor market. This analysis
will also include the preparation of graphs and other presentation materials to aide in understanding the
market relationships broken down by employee/bargaining group.
Task 6 – Conduct Internal Relationship Analysis
The internal pay relationship analysis will involve a number of steps in order to arrive at sound and
equitable relationships for the new compensation plan. Among others, the most important of these will
include:
• Analysis of existing and historical pay relationships
• Development of consistent, uniform, and realistic guidelines for determining internal
relationships
• Recommendation of equitable and appropriate internal relationship differentials based on the
above.
Since the balance of market values versus internal values can be a policy issue, options and
methodologies for achieving an appropriate balance of internal and external salary equity will be
reviewed with the City before developing the salary range recommendations.
Task 7 – Develop Salary Recommendations
Based upon the results of the internal relationships analysis and the labor market survey, the project
consultants will develop salary recommendations for all job classes included as a part of the study
process. These salary recommendations will clearly document the means of determining the appropriate
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pay range and the computation of the dollar and percentage difference between the current maximum
salary and the recommended maximum salary.
Before finalizing the recommendations, a careful audit of the results will be undertaken to ensure that
internal salary compression or compaction does not result.
Task 8 – Prepare and Review Preliminary Compensation Report
The Preliminary Compensation Report documents all compensation study recommendations and the
supporting information used for developing the recommendations. Specifically, the Preliminary Report
will include the following:
• The City’s documented compensation policy including survey agencies and survey classifications
• Results of the labor market salary survey using tables and graphs
• Documentation of benchmark classifications and the related job families
• Appendices containing detailed labor market data sheets and supporting documentation.
The project consultants will conduct an in-depth review of the Preliminary Compensation Report with
the City. Any needed corrections, clarifications, or modifications will be discussed at this time. As
needed, cost projections for implementation will be provided.
Task 9 – Prepare and Submit Final Reports
The Final Reports will incorporate any appropriate revisions identified and submitted during the review
of the preliminary reports and will serve as the administrative and procedural manuals for updating and
maintaining the classification and compensation plans. The submittal of final reports may also include
on-site presentations to managers, employees, and the City Council.
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Updated Feb. 2020
EXHIBIT B
Schedule of Charges/Payments
The total fixed cost for professional service fees and expenses to conduct the compensation and
benefits study, as proposed, amounts to $22,500. The cost of professional services and expense
reimbursement is based upon the project as described in the work plan, and is a “fixed fee” regardless
of which consultant performs the task and/or the number of hours needed to complete a particular
element of the study. This fee assumes the same survey agencies will be used as the 2017
compensation study. Should the City change agencies, the additional cost would be $1,000 per new
agency surveyed.
The proposed cost does not include any on-site trips. Should on-site meetings or presentations be
required, these would be billed on an hourly basis plus reimbursement for travel related expenses.
If additional work beyond the scope of this proposal is required, the work would be billed at the firm’s
standard hourly billing rate of $135/hour.
Monthly invoices will be prepared based on a progress billing schedule as tasks are completed.
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Updated Feb. 2020
EXHIBIT C
Project Timeline
City of Arcadia
1 2 3 4 5 6 7 8
Task 1-Project initiation
Task 2-Confirm survey agencies
and job classes
Task 3-Collect compensation data
Task 4-Compile and format data
Task 5-Audit and finalize
compensation data
Task 6-Conduct internal
relationship analysis
Task 7-Develop salary
recommendations
Task 8-Prepare/review
preliminary reports*
Task 9-Prepare and present final
reports*
Blue denotes project milestones