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HomeMy WebLinkAboutItem 09c - Total Compensation Study DATE: November 7, 2023 TO: Honorable Mayor and City Council FROM: Hue Quach, Administrative Services Director Anely Williams, Human Resources Administrator SUBJECT: PROFESSIONAL SERVICES AGREEMENT WITH PUBLIC SECTOR PERSONNEL CONSULTANTS FOR A TOTAL COMPENSATION STUDY IN THE AMOUNT OF $63,000, AND AUTHORIZE AN ADDITIONAL $13,000 FOR CONTINGENCY WORK ARISING OUT OF THE SURVEY PROCESS CEQA: Not a Project Recommendation: Approve SUMMARY The Human Resources Division of the Administrative Services Department, solicited proposals from qualified consultants to conduct a Total Compensation Study to evaluate how the City compares with the regional market for similar public sector positions. A Total Compensation Study evaluates base salary, special payments, and benefits to provide a comprehensive picture of the City’s compensation package. The City received eight proposals and interviewed the top three consulting firms. All the firms interviewed were deemed qualified to complete the study; however, the proposed cost, flexibility, customization, and experience that Public Sector Personnel Consultants has proposed best fits the City’s needs at this time. It is recommended that the City Council approve, authorize and direct the City Manager to execute a Professional Services Agreement with Public Sector Personnel Consultants for a Total Compensation Study in the amount of $63,000, and authorize an additional $13,000 for contingencies. A copy of the proposed Professional Services Agreement is attached to this staff report. BACKGROUND Conducting Total Compensation Studies is a common practice in human resources to gather information and to ensure that the City is aware of changes in the marketplace. Such studies provide data that help inform the City’s position in overall compensation, relative to the marketplace. The City’s last compensation project was concluded in 2020 and it updated compensation information from a prior survey. However, the employment Professional Services Agreement with Public Sector Personnel Consultants November 7, 2023 Page 2 of 4 market has changed dramatically during and after the COVID-19 pandemic, which has created challenges in recruitment, selection, and retention of well-qualified candidates and staff. A recent Total Compensation Study that starts with new base data rather than updating previous data, will allow the City to evaluate current labor market trends and be well-informed for the upcoming labor negotiation discussions. DISCUSSION Arcadia has five Memorandums of Understanding (“MOUs”) that set forth wages, hours, and other terms and conditions of employment for employees include in each respective bargaining group. Arcadia’s five bargaining groups include the Arcadia City Employees Association (“ACEA”); the Arcadia Firefighter’s Association (“AFFA”); the Arcadia Police Civilian Employees Association (“APCEA”); the Arcadia Police Officers’ Association (“APOA”); and the Arcadia Public Works Employees Association (“APWEA”). As the terms in the current MOUs are set to expire on June 30, 2024, the City solicited proposals for a Total Compensation Study to assist in providing a clear picture of the marketplace. The requested scope of work included: • Regular ongoing communication of survey status and progress throughout the term of the agreement. • Review of current job descriptions and compensation system to understand duties and responsibilities; and ensure internal equity and external competitiveness. • A comprehensive base salary and benefits survey (Total Compensation) of external regional labor market cities impacting the Arcadia area job market. The survey includes, but is not limited to, base wage/salary; employee and employer- paid CalPERS contributions; certification pay; educational incentives; employer- paid insurance contributions; and leave benefits. The City received eight (8) proposals, which were evaluated based upon the consulting firm’s understanding of the project, services to be provided, ability to complete the work within the time specified, cost, and qualifications of the firm, including its experience and personnel assigned to the project. The complete list of proposals is provided below: Firm Costs Evergreen Solutions $ 36,500 Uncomplicate HR Baker Tilly $ 44,000 $ 47,600 Public Sector Personnel Consultants $ 63,000 MGT $ 75,931 Trüpp $ 81,700 Koff & Associates $ 83,435 CPS HR Consulting $121,700 Professional Services Agreement with Public Sector Personnel Consultants November 7, 2023 Page 3 of 4 All firms met the qualification requirements specified in the City’s request for proposals. However, the two lowest bidders did not exhibit a high level of experience with the type of work requested by the City, and/or with similarly situated California public agencies, nor were their proposals sufficiently detailed or specific enough to merit further consideration. Additionally, CPS HR Consulting’s project proposal was cost prohibitive based on the anticipated and allocated budget for the project, and MGT’s proposed project timeline was well beyond the City’s estimated completion date. Following the review of all proposals, the top three highest ranked firms were Koff & Associates, Public Sector Personnel Consultants, and Baker Tilly. References were checked and additional materials were requested from the firms to determine the best fit for Arcadia. The top three firms were the most qualified to complete the project based on their scope of experience and ability to design and implement a compensation system. However, based on the overall depth of the proposal, cost of the proposal, experience with California public agencies, and flexibility, it was determined that Public Sector Personnel Consultants (“PSPC”) are the most qualified to conduct the study at this time. PSPC has 32 years of compensation and consulting experience in the public sector. PSPC has extensive experience providing services in California, including recently serving 24 public agencies and actively serving eight cities in 2023. The proposed cost from PSPC includes project planning, stakeholder meetings, a total compensation survey with multiple comparable agencies, briefings, and final presentations. However, it is recommended that additional funding be authorized to provide for contingency work that may result from the study. These contingencies may include $5,000 for employee Position Analysis Questionnaires to understand job duties and responsibilities, as needed, and may include $8,000 for desk audits for “irregular” positions to ensure comparable survey data are obtained. Thus, the total amount of additional work program items could total up to $13,000, which would bring the total potential project cost to $76,000. This amount is within the project budget and the funding would only be utilized based on the additional contingency work deemed necessary. The services provided in the study will include the following: • Project planning and scheduling meetings with designated City staff; • Extensive review of background documents; • Policy input and project direction meeting, including briefing presentation; • Communication and progress reports; • A custom salary and benefit survey, and analysis of the market data; and • Preparation and presentation of final project reports. The approach PSPC uses to conduct a Total Compensation Study is customized to the specific needs and objectives of their clients. Further, PSPC’s overall cost is in the mid- range of the proposals received, offering the flexibility and customization Arcadia seeks. Coupled with their extensive public agency experience, PSPC is the best fit for the Study, Professional Services Agreement with Public Sector Personnel Consultants November 7, 2023 Page 4 of 4 and therefore, it is recommended that PSPC be awarded the Professional Services Agreement. ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), based on Section 15061(b)(3) of the CEQA Guidelines, as it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA. FISCAL IMPACT Public Sector Personnel Consultants’ proposed services for the Total Compensation Study is $63,000. An additional $13,000 is requested for contingencies that may result from the study, as referenced above. Sufficient funds have been budgeted in the Human Resources Division Fiscal Year 2023-24 Operating Budget to cover the total potential cost of $76,000. RECOMMENDATION It is recommended that the City Council determine that this project is exempt under the California Environmental Quality Act; and approve, authorize, and direct the City Manager to execute a Professional Services Agreement with Public Sector Personnel Consultants for a Total Compensation Study in the amount of $63,000, and authorize an additional $13,000 for contingency work arising out of the survey process. Attachment: Proposed Professional Services Agreement 1 CITY OF ARCADIA PROFESSIONAL SERVICES AGREEMENT REGARDING TOTAL COMPENSATION STUDY This Agreement is made and entered into as of November 8, 2023 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 Public Sector Personnel Consultants, Inc., an S-Corporation with its principal place of business at 2824 N. Power Road #113-486 Mesa, AZ 85215 (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: Total 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 $63,000 for completion of the Project. 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. c. The City may direct Consultant to perform the “optional tasks” set forth in Exhibit “B” separate from the not-to-exceed amount set forth above; provided that the cost shall not exceed the respective amount for each optional task identified in Exhibit “B”. Consultant shall not perform any optional task unless directed in writing by the City. 2 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 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. Term. The term of this Agreement shall be from November 8, 2023, to February 28, 2024, unless earlier terminated as provided herein. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Project. Consultant shall perform its services in a prompt and timely manner within the term of this Agreement and shall commence performance upon receipt of written notice from the City to proceed (“Notice to Proceed”). 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. 3 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 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 4 (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. (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 5 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 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. 6 (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 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. 7 (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 8 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 for 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 such services, based on an amount mutually agreed to by City and Consultant of the portion of 9 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 Matthew Weatherly and Bob Longmire as Project Managers. The Project Managers 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: Anely Williams, Human Resources CONSULTANT: Public Sector Personnel Consultants, Inc. 2824 N. Power Road #113-486 Mesa, AZ 85215 Attn: Matt Weatherly, President 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. 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 10 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 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. 11 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF ARCADIA AND PUBLIC SECTOR PERSONNEL CONSULTANTS IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. CITY OF ARCADIA PUBLIC SECTOR PERSONNEL CONSULTANTS, INC. By: By: Dominic Lazzaretto Matthew Weatherly City Manager President Date: Date: ATTEST: By: Bob Longmire Vice President By: Date: City Clerk APPROVED AS TO FORM By: Michael J. Maurer City Attorney 12 EXHIBIT “A” Scope of Services SCOPE OF SERVICES: EXECUTIVE SUMMARY Consultant proposes the following program of consulting services and implementation support to conduct a total compensation study. 1. Project planning and scheduling meetings with the City’s Human Resources Staff, project designee(s) 2. Policy input and project direction meeting and briefing with Council, Human Resources and designee(s) 3. Project briefing presentation for Council, City officials, City’s project leaders, and employees (optionally) 4. Management and employee communication, progress reports throughout all project phases 5. Occupational familiarization by review of City’s current class specifications and compensation plans 6. Organizational familiarization by review of City organization charts, budgets, and annual reports 7. Position Analysis Questionnaire (PAQ) customized for gathering City employee occupation data 8. Meetings to distribute and explain the PAQ and the project for all City officials and employees 9. Confirmation of survey cities to include in external total compensation comparisons 10. Identification of City occupations to utilize as survey benchmark job classifications 11. Solicitation of comparator employers and agencies for participation in external compensation surveys 12. Extraction of data from public employer compensation plans, questionnaires, reliable published surveys 13. Total compensation and benefits survey by bargaining unit for external competitiveness comparisons 14. Consolidation of data from all sources and calculation of prevailing rates for benchmark jobs 15. Computation of extent City’s compensation offerings vary from external prevailing rates and practices 16. Review of competitiveness analysis with Human Resources, City Officials and City’s project designees 17. Construction of optional salary range structures for review and selection by City’s project leaders 18. Assignment of job classes to salary ranges by internal equity and external 13 competitiveness 19. Assistance with City Council identification of desired, affordable salary competitiveness policy 20. Fiscal impact estimates at various levels of external prevailing rates competitiveness policies 21. Review and critique of draft salary and implementation plans with Human Resources, project leaders 22. Preparation and presentation of final project reports for the City Council, staff, and City Officials 23. Development of a plan for the implementation of City’s updated compensation plan 24. Uploading of EZ COMPTM program files on a Human Resources Department computer, staff training 25. Development and provision of process for ongoing plan maintenance and subsequent plan updates 26. Assistance with communicating the City’s updated plans for all City officials and employees TS 9/23 TASK NAME ELAPSED WEEKS: PROJECT COMMUNICATION, QUALITY ASSURANCE, PROJECT STATUS REPORTS COMPENSATION SURVEYS, BENCHMARK SELECTION, DATA COLLECTION, COMPARABILITY ASSURANCE REVIEW PREVAILING RATES COMPUTATION, MARKET COMPETITIVENESS ANALYSIS, DRAFT COMPENSATION METHODOLOGY SALARY RANGE ASSIGNMENTS ON BASIS OF INTERNAL EQUITY AND EXTERNAL COMPETITIVENESS SALARY RANGE TABLES, FISCAL IMPACT ESTIMATES, REVIEW OF DRAFT PLANS WITH CITY OFFICIALS, DESIGNEE(S) PREPARATION AND PRESENTATION OF FINAL REPORT TO HR, COMMITTEES, EXECUTIVE TEAM 1-3 4-6 7-9 10-12 13+ * Progress reviews with the City * * ESTIMATED PROJECT ELAPSED TIME CHART 14 SCOPE OF SERVICES: APPROACH AND METHODOLOGY The following is Consultant’s overall work plan and approach to achieving the City’s objectives for the conduct of a total compensation study. A. OBJECTIVES OF THE PROJECT The recommended plans, programs, systems and administrative procedures will meet these ten most important criteria. - Internally equitable - Financially responsible - Externally competitive - Efficiently administered - Readily understood - Inclusive of employee input - Easily updated & maintained - Reflective of City's values - Legally compliant & defensible - Reflective of prevailing “best practices” B. SCOPE OF THE PROJECT The project could include: a management and employee communication plan; partnership with the City’s Human Resources staff, City Manager, Council, and project designee(s); occupational, organizational, and operational familiarization; optional Position Analysis Questionnaire (PAQ) and job analysis for all classifications; EZ COMP™; internal equity and external competitiveness evaluation; total compensation survey and competitiveness analysis; salary range recommendations; fiscal impact estimates and multiple implementation scenarios; updated compensation plan and compensation plan implementation support for all included employees in all job classifications. C. PROJECT METHODOLOGY 1. Quality Assurance To ensure a high-quality project, Consultant built in several layers of procedural and statistical controls, in addition to those already in EZ COMP™. Consultant follows a prescribed series of steps in each project phase, which are reviewed by the Project Manager. Work developed by Consultant will be reviewed by Human Resources and City’s Project Manager(s) to minimize the chance of errors and to ensure that the Project reflects the City's organizational values. 2. Project Planning Meetings and Communication Plan Development Consultant will work with Human Resources and City Officials or representatives on a communication strategy, plan, and materials, beginning prior to the Project and extending to the post-Project information meetings. Consultant can conduct 15 group pre-Project meetings for all City officials and employees where Consultant will discuss the Project’s scope, answer questions, and (optionally) distribute and explain a Position Analysis Questionnaire. D. POSITION CLASSIFICATION ANALYSIS – OPTION OR AS NEEDED 1. Review of Essential Tasks – Position Analysis Questionnaire Consultant will review and analyze the current essential tasks, duties and responsibilities, and minimum qualifications of each included position through the Position Analysis Questionnaire (PAQ) to be completed by each employee (or group of employees with identical jobs) in print or electronic format. If the information on the PAQ does not clearly delineate the position’s scope of responsibilities, we may return the PAQ to the position’s incumbent for additional information or focus on the data gap during a worksite job information interview. 2. Employee Worksite Job Information Interviews Consultant can conduct a worksite job information interview with a representative incumbent of every requested job classification or for those we propose to change. The purpose of these interviews is to verify the data on the PAQ, obtain additional insight into the scope and complexity of the job duties, observe technical processes and working conditions, and to provide employees with an additional method of participation in the project. This process also ensures that Consultant makes all internal and external comparisons on the basis of actual job content and not merely job title. E. COMPENSATION SURVEY AND ANALYSIS 1. City Involvement in Compensation Plan Development Consultant will obtain policy direction from the City Council, Human Resources staff, and/or City Officials on the following key components of the salary plan development process: - Comparator Employer Selection - Job Evaluation Method-Salary Plan Linkage - Benchmark Job Class Selection - Draft Compensation Plan Review / Critique - Compensation Competitiveness Policy - Total Compensation Points for Analysis - Salary Structure Selection - Project Implementation Plan 16 2. Comprehensive Compensation Survey Consultant will collect the complete pay plans from each of the City’s comparators and build a custom survey database to ensure accuracy and completeness, unique to the City’s job classifications. a. Data Collection Protocol will be developed in consultation with the City’s project leaders to determine which salary data elements to include, such as: Total Compensation Information (to be finalized with Project Team/for approval) - Salary grade/step or open range salary plan structure - Salary range structure Minimum, Midpoint, and Maximum - City-supported benefits such as health insurance premiums and pension contributions - Paid time off, add pay, certification pay, longevity pay b. Benchmark Job Selection will be made by identifying City job classes common to its employment-competitive public and private employers in the immediate area and throughout the region or State, clearly identifiable, and representative of standard occupational job groups. c. Comparator Employers Identification or Confirmation will be made in partnership with City staff, or per agreed upon lists from bargaining, and/or by research and input from Consultant. d. Compensation Data Collection will be made by one or more of the following methods. - Pre-survey contact with the selected comparator employers to solicit participation in the City’s compensation survey(s) - Extraction from the pay plans of designated public employers. - Customized salary and total compensation and benefits survey requests for local governments and other public employers, distributed by mail, fax, and e-mail. - As desired, additional data extraction from established salary surveys and commercial survey sources such as Watson Wyatt, ERI, etc. e. Data Quality Control includes editing data for accuracy and proper matching to the City’s survey benchmark jobs, and phone/fax/E-mail follow-ups for data clarification and to obtain comparators’ benchmark job descriptions. 3. Prevailing Rates Calculation Consultant will consolidate the compensation data from all sources, enter the information into the EZ COMP™ program, and compute the prevailing rates, inclusive of cost-of-living differentials, as the statistical mean of the survey data for each benchmark job class. Data will be projected forward from the date of 17 collection to a common date relating to the City’s salary plan year by the annual Prevailing Rate Increase Factor (PRI) applicable at that time. 4. Compensation Competitiveness Comparison Consultant will provide the City with charts comparing its current salary structures to those of the selected public and private comparator employers. We will calculate the extent that the City’s offerings vary from the prevailing rates and practices of other relevant employers. F. PAY PLAN DEVELOPMENT 1. Compensation Competitiveness Policy Consultant will assist the City to select a compensation competitiveness policy which best fits its compensation strategy and financial resources, by providing fiscal impact estimates at various percentage relationships to the prevailing rates. 2. Salary Plan Structure Development Consultant will review the City’s current wage plans and 1) utilize the City’s current wage plan structures to identify internally equitable and externally competitive salary ranges for each City job class or 2) prepare alternative salary range structures and schedules for the City to select the best fit for its competitiveness strategy, with these optional criteria: - Method of administration, i.e.: measured job performance, longevity, or skill - Width of the salary ranges, grades, or broad bands, from Minimum to Maximum - Varying salary range widths for FLSA non-exempt or exempt positions - Open salary ranges for pay-for-performance or variable compensation plan - If steps within the salary ranges, number of steps, percentage separation - Number of salary ranges, grades, or broad bands in the salary schedule - Percentage of separation between salary ranges, grades or broad bands - Recognition for longevity, unique assignments, and special skill requirements 3. Salary Range Assignment Development Consultant will assign each job classification to a salary range in the City’s current or selected new salary structure on the basis of a combination of factors, including: - The prevailing rates for the benchmark job classes - Its current relationship to similar or occupationally related job classes - The 15% guideline for salary range separation between sequential job classes - The 25% guideline for salary separation of a department head job class 18 4. Implementation Plan Development Consultant will work with the Human Resources and Project Team on a plan for transition to the recommended plan, including a timetable for the principal activities, employee communication, impact on budget processes, and estimates of required financial resources. G. ENSURING THE CITY’S SELF-SUFFICIENCY The City will be self-sufficient in all aspects of maintenance of the updated compensation plan through these services. 1. Procedure Manuals - Position Classification Procedure Guide - Salary Administration Procedure Guide - City of Arcadia EZ COMP™ Procedure Guide 2. Training Workshop – for City staff in position classification, job evaluation, compensation surveys, and compensation plan design and administration. 3. EZ COMP™ – program and project files on one of the City’s computers, a custom user’s manual, and system training for key City and Human Resources staff. 4. Initial Year’s Implementation Warranty Support – Consultant will analyze, evaluate, classify, and provide a salary range recommendation for any new or changed position or entire job classification, at no cost to the City for one year. H. EXTENSIVE EMPLOYEE INCLUSION AND COMMUNICATION - OPTIONAL Very important factors for successful implementation of new or updated classification and compensation plans are 1) extensive employee inclusion, and 2) extensive employee communication. City officials and employees will participate in one or more of the following activities: - Attending pre-project briefings and question and answer sessions - Completing a Position Analysis Questionnaire (PAQ) describing their position - Elaborating on their jobs in individual or group job information interviews (optional) I. MINIMAL CITY SUPPORT REQUIRED Consultant is completely self-sufficient in projects of this nature and does not require any substantive staff support from the City other than payroll data, and arrangements for group and individual meetings and interviews. Consultant appreciates, but does not require, any office space, telephone, clerical assistance, computers, or office equipment. Consultant will provide all data entry, data processing, duplicating, and report preparation functions. 19 J. REPORTS AND PRESENTATIONS 1. Draft and Final Report Preparation Consultant will provide the City’s project leader(s) with a draft report for review and critique, including compensation market data, salary comparison tables, fiscal estimates, salary range listings, and implementation procedures. Consultant will incorporate critique into the development of a final report summarizing the project’s findings, recommendations, and detailed description of the City’s updated compensation plans. 2. Final Report Presentations Upon request by the project team, Consultant will conduct a workshop or formal presentation of the final report and recommendations to the Human Resources staff, City Officials, and employees. 3. EZ COMP™ Program Installation Consultant will install the EZ COMP™ program and project files on one of the Human Resources Department's computers and provide training to key staff in the maintenance and update of the compensation plan. 4. Implementation Warranty To ensure effective implementation of the new plan, Consultant will analyze, evaluate, and provide a salary range recommendation for any new or changed job class, at no cost to the City for one year. 20 EXHIBIT “B” Compensation The project's total cost, including all fees for professional services and reimbursement for out-of-pocket expenses, will not exceed the indicated amounts. Major Project Components Project planning; Stakeholder meetings; Project briefing meetings for employees $ 3,000 Total Compensation Survey (up to 12 comparators) $ 50,000 Reserve – Employee communication; Stakeholder meetings; Presentations $ 5,000 From surveys; Compensation plan, Draft reviews; Final presentations $ 5,000 Total Compensation Survey Cost: $ 63,000 Optional Tasks (Contingencies) Employee Position Analysis Questionnaire; Position classification; titling; career ladders; job families $ 5,000 Desk Audit job information interview (per 50) $ 8,000 Contingency Costs: $ 13,000