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HomeMy WebLinkAboutItem 09e - Total Compensation Study STAFF REPORT HUMAN RESOURCES DEPARTMENT DATE: October 6, 2026 TO: Honorable Mayor and City Council FROM: Sairy Stepanian, Acting Human Resources Director SUBJECT: PROFESSIONAL SERVICES AGREEMENT WITH BAKER TILLY FOR A TOTAL COMPENSATION STUDY IN THE AMOUNT OF $54,400, WITH AN ADDITIONAL $15,600 FOR CONTINGENCY WORK ARISING OUT OF THE SURVEY PROCESS CEQA: Not a Project Recommendation: Approve SUMMARY The Human Resources Department issued a Request for Proposals (“RFP”) to conduct a Total Compensation Study, which will be used to evaluate the City’s compensation structure and assess how it compares with the regional market for similar public sector positions. A Total Compensation Study evaluates base salary, specialty pay, and benefits to provide a comprehensive assessment of the City’s overall compensation package. The City received seven (7) proposals and interviewed the top three (3) consulting firms, all of whom were deemed qualified to complete the study; however, the proposed cost, experience, and methodical approach proposed by Baker Tilly would best fit 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 Baker Tilly for a Total Compensation Study in the amount of $54,400, and to authorize an additional $15,600 for contingencies. Professional Services Agreements for Total Compensation Study October 6, 2026 Page 2 of 6 BACKGROUND A Total Compensation Study is typically conducted to gather market information and assess an organization’s competitive position relative to other employers. This study provides valuable data to assist the City in evaluating its compensation practices and making informed decisions regarding employee recruitment and retention. Additionally, an objective, data-driven overview of the labor-market is important to have before making compensation decisions in relation to bargaining proposals. The City completed its most recent Total Compensation Study in 2024. Since then, the employment market has continued to evolve, including changes in salaries, benefits, and competition for qualified candidates. Periodic review of compensation data allows the City to assess its market position and determine whether existing compensation practices remain competitive and appropriately aligned with the City’s organizational needs. Obtaining current market data through this study will provide an important resource for evaluating employee compensation and informing future decisions. Accordingly, the City seeks to engage a qualified consultant to conduct an updated Total Compensation Study. DISCUSSION In preparation for upcoming labor negotiations, a comprehensive compensation study is being proposed to provide the City with current data regarding its overall compensation position relative to comparable public agencies. The Study will evaluate base salaries, benefits, and other forms of compensation, thereby providing a more complete view of the City’s competitive position within the applicable labor market. The results of the study will serve as an important tool in preparing for the collective bargaining process by establishing a data-driven framework for compensation proposals, identifying potential recruitment and retention needs, and assessing areas in which the City’s compensation practices may be above, below, or consistent with the market. With this information, the City can develop informed bargaining strategies and evaluate compensation adjustments in consideration of both market competitiveness and long-term fiscal sustainability. Professional Services Agreements for Total Compensation Study October 6, 2026 Page 3 of 6 The RFP sought proposals from qualified consultants who will assist the City in reviewing existing job descriptions and compensation systems, analyzing job duties, identifying market pay for select positions, identifying the market value of an employee benefits package, and providing a market analysis of the total compensation, including salary and benefits. A total of seven (7) qualified proposals were received, with the complete list of proposers shown below: Consulting Firm Total Project Cost Muchmore Than Consulting $349,050 Gallagher & Co. $145,200 MGT Solutions $133,200 Uncomplicate HR $82,750 Public Sector Personnel Consultants $55,000 Baker Tilly $54,400 Evergreen Solutions $42,500 All proposals were evaluated based on the criteria established in the RFP. Following a comprehensive review process, three (3) proposals were selected to move forward to the interview process: Public Sector Personnel Consultants, Baker Tilly, and Evergreen Solutions. The rates shown in the table above are based on the total estimated project cost. Following interviews with the three firms, Baker Tilly was identified as the most qualified firm to perform the study. Baker Tilly was selected based on the strength and completeness of their proposal, breadth of experience, demonstrated public sector experience, approach, and overall pricing structure. Baker Tilly has been in operation for over 90 years with a team of 350 professionals, the firm provides services to more than 4,200 state and local government entities across the country. The firm’s services include human resources and management consulting, including compensation plan implementation, employee opinion surveys, employee pay equity testing, Fair Labor Standards Act (“FLSA”) review, job architecture/career ladder development, job description development, job evaluation and analysis, pay and benefits market studies, pay equity compliance, pay policy and practices, pay structure design, and performance management. Professional Services Agreements for Total Compensation Study October 6, 2026 Page 4 of 6 The proposed cost from Baker Tilly includes project initiation and stakeholder meeting; total compensation market study across comparable agencies; compression analysis, cost modeling, and administration; and project completion and presentation. While the total project cost is $54,400, it is recommended that contingency funding be authorized to allow for additional work that may result from the study. The contingency work may include additional peer agencies or benchmarks, more pay structures or implementation scenarios, and/or additional reports or meetings beyond what is estimated for project completion. The requested $15,600 contingency is available within the Human Resources Department budget and will only be used if the City authorizes additional work beyond the scope of the proposed agreement. The compensation study will consist of four (4) phases: • Project Initiation: o Project planning, data collection, review of current state, communication meetings, and job evaluation. • Total Compensation Market Study: o Benchmark position identification, public peer organization identification, quality control, data adjustments, market reports, benefit comparison, pay strategy and design, and grade assignments. • Compression Analysis, Cost Modeling, and Administration: o Pay compression and compaction analysis, employee allocation and cost modeling, administration guidelines, and communication plan. • Project Completion: o Final documentation and key findings, final communication and presentation. The approach Baker Tilly uses to conduct a Total Compensation Study is customized to the specific needs and objectives of their clients. Baker Tilly’s overall cost proposal is in the lower range and provides the best overall value to the City based on the firm’s qualifications, relevant public-sector experience—including experience with public agencies contracted with California Public Employees’ Retirement System (“CalPERS”)—proposed methodology, and demonstrated understanding of the City’s objectives. Furthermore, Baker Tilly’s approach is collaborative, flexible, and customizable to their client’s needs. Additionally, Baker Tilly implements quality assurance protocols, including the use of Certified Compensation Professionals and Professional Services Agreements for Total Compensation Study October 6, 2026 Page 5 of 6 Analysts, to ensure the integrity and accuracy of the produced data and analysis. With their extensive experience with public agencies and the overall quality of their proposal, it is recommended that Baker Tilly be awarded the Professional Services Agreement. Utilizing an independent consultant to conduct the study will provide an objective and consistent methodology for evaluating compensation data. The resulting analysis will support informed decision-making and provide a defensible, objective foundation for evaluating compensation matters during the upcoming labor negotiations. 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. FISCAL IMPACT The cost to conduct the Total Compensation Study is $54,400. An additional $15,600 is requested as contingency funding for additional work that may arise from the study, as referenced above. Sufficient funds have been budgeted in the Human Resources Department’s Fiscal Year 2026-27 Operating Budget to cover the total authorized amount of $70,000. RECOMMENDATION It is recommended that the City Council determine that these actions do not constitute a project under the California Environmental Quality Act (“CEQA”); and approve, authorize, and direct the City Manager to execute a Professional Services Agreement with Baker Tilly for a Total Compensation Study in the amount of $54,400, and authorize an additional $15,600 for contingency work that may arise during the survey process and study. Professional Services Agreements for Total Compensation Study October 6, 2026 Page 6 of 6 Attachment: Proposed Professional Services Agreement with Baker Tilly 1 Updated Feb. 2020 CITY OF ARCADIA PROFESSIONAL SERVICES AGREEMENT REGARDING TOTAL COMPENSATION STUDY This Agreement is made and entered into as of October 7, 2026 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 Baker Tilly US, a Limited Liability Partnership with its principal place of business at 205 N Michigan Ave, Chicago, IL 60601 (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 $70,000. 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. 2 Updated Feb. 2020 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 October 7, 2026 to January 5, 2027, 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. 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 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 3 Updated Feb. 2020 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 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 4 Updated Feb. 2020 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 Consultant shall procure and submit evidence of insurance for at least five (5) years from the time that all work under this Agreement is completed. (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. (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. Consultant may provide blanket endorsements to meet the Additional Insured requirement in this written contract. However, all subcontractors’ endorsements shall specifically name the City, its elected officials, officers, employees, volunteers, boards, agents, and representatives as additional insureds and blanket endorsements are not acceptable. 5 Updated Feb. 2020 (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. Consultant may provide blanket endorsements to meet the Additional Insured requirement in this written contract. However, all subcontractors’ endorsements shall specifically name the City, its elected officials, officers, employees, volunteers, boards, agents, and representatives as additional insureds and blanket endorsements are not acceptable. (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. 6 Updated Feb. 2020 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 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 7 Updated Feb. 2020 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. Consultant may provide blanket endorsements to meet the Additional Insured requirement in this written contract. However, all subcontractors’ endorsements shall specifically name the City, its elected officials, officers, employees, volunteers, boards, agents, and representatives as additional insureds and blanket endorsements are not acceptable. (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 8 Updated Feb. 2020 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. (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. All subcontractors’ endorsements shall specifically name the City, its elected officials, officers, employees, volunteers, boards, agents, and representatives as additional insureds and blanket endorsements are not acceptable. If requested by Consultant, City 9 Updated Feb. 2020 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 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 10 Updated Feb. 2020 (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 11 Updated Feb. 2020 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 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 Jada Kent 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 CONSULTANT: Baker Tilly US, LLP 205 North Michigan Avenue Chicago, IL 60601 12 Updated Feb. 2020 Attn: Sairy Stepanian, Human Resources 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 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 13 Updated Feb. 2020 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. [SIGNATURES ON FOLLOWING PAGE] 14 Updated Feb. 2020 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF ARCADIA AND BAKER TILLY US, LLP IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. CITY OF ARCADIA BAKER TILLY US, LLP By: By: Dominic Lazzaretto Signature City Manager Date: Its: ATTEST: Printed Name By: Date: City Clerk APPROVED AS TO FORM By: Signature By: Its: Michael Maurer City Attorney Printed Name 15 Updated Feb. 2020 EXHIBIT A Scope of Services 16 Updated Feb. 2020 EXHIBIT B Schedule of Charges/Payments Consultant will invoice City on a monthly cycle. Consultant will include with each invoice a detailed progress report that indicates the amount of budget spent on each task. Consultant will inform City regarding any out-of-scope work being performed by Consultant. This is a time-and-materials contract. 17 Updated Feb. 2020 EXHIBIT C Activity Schedule 18 Updated Feb. 2020 1 August 24, 2026 City of Arcadia, CA Proposal to conduct an informational total compensation study To conquer a challenging landscape, you have to understand it. Explore total compensation solutions that check all the boxes on the way to addressing the needs of your community. 2 Executive Summary Baker Tilly appreciates the opportunity to provide the City of Arcadia with a tailored approach to its Total Compensation Study. Through our extensive experience providing human resources consulting services to public sector clients nationwide, we are well qualified to assist the City in evaluating its current compensation program and developing recommendations that support internal equity, external competitiveness and the City’s ability to attract and retain qualified talent. Our team has been providing human resources and management consulting services for more than 30 years and has conducted hundreds of compensation studies for state and local government organizations. Our specific experience includes pay and benefits market studies across the State of California, pay structure design, compensation plan implementation, job evaluation and analysis, and pay policy and practices. Baker Tilly’s public sector focus means the City will be served by professionals who understand the unique compensation, benefits and workforce considerations facing governmental organizations in your region. For the City of Arcadia, Baker Tilly will conduct a comprehensive review of the City’s compensation program, including base salary, special pays and benefits. We will work with the City to establish appropriate public peer organizations, collect and analyze market data, evaluate the competitiveness of the City’s current salary ranges and benefits offerings, identify potential pay compression or compaction issues, and provide options for appropriate wage and salary ranges. Our benefits comparison will include employer-paid retirement contributions, longevity and certification pay, educational incentives, specialty and standby/call-back pay, insurance contributions and leave benefits to support a complete analysis of total compensation. Our approach is highly collaborative. We will work closely with the City’s project team throughout the engagement to establish the project plan, collect and review necessary information, evaluate preliminary results and confirm the direction of the study. Our recommendations will be data-driven, and our quality assurance protocols are designed to safeguard the integrity of the market data and analysis. Baker Tilly takes pride in providing sound results and recommendations that are fair, defensible and practical for the organizations we serve. The City will also benefit from Baker Tilly’s experience serving California public agencies, including recent work for the cities of Laguna Beach, Hollister, Paso Robles, Vernon and other California organizations, as well as our familiarity with public safety positions and CalPERS-related considerations. Our Southern California offices provide a local presence, while our national compensation practice gives the City access to experienced compensation professionals and resources from across the firm. We look forward to partnering with the City of Arcadia to provide a reliable and comprehensive assessment of its total compensation program and practical recommendations that align with the City’s organizational needs, market conditions, budget and long-term workforce objectives. If you have any questions or require additional information, please contact me by phone at +1 (972) 748 0514 or via email at jada.kent@bakertilly.com. Sincerely, Jada Kent, CCP, CLRP, Managing Director | Practice Leader +1 (940) 748 0514 | jada.kent@bakertilly.com 3 Contents EXECUTIVE SUMMARY ............................................................................................. 2 STATEMENT OF UNDERSTANDING ......................................................................... 4 ABOUT BAKER TILLY ............................................................................................... 4 OUR TEAM ................................................................................................................ 6 OUR EXPERIENCE .................................................................................................... 9 DEMONSTRATING THAT WE'VE BEEN DOWN THIS PATH BEFORE ..................... 14 SERVICE APPROACH ............................................................................................. 15 PROVIDING OUR SOLUTION TO ACHIEVE THE CITY’S OBJECTIVES .................. 15 Phase 1 – Project Initiation & Current State Review .......................................................................................... 15 Phase 2 – Total Compensation Market Study .................................................................................................... 16 Phase 3 – Compression Analysis, Cost Modeling & Administration ................................................................. 19 Phase 4 – Project Completion ............................................................................................................................. 20 EXPLAINING THE CITY’S RESPONSIBILITIES ....................................................... 20 PROJECT TIMELINE ............................................................................................... 21 PROJECT FEE ......................................................................................................... 22 OUR PROMISE ........................................................................................................ 24 PROPOSED CONTRACT MODIFICATIONS ............................................................. 25 4 Statement of Understanding Baker Tilly understands that the City of Arcadia is seeking an informational total compensation study that evaluates base salary, special pays and benefits; assesses internal and external equity; identifies potential pay compression; and provides appropriate wage/salary range options for City positions. Our proposed scope and methodology have been developed to address these objectives and the requirements set forth in the City's RFP. Baker Tilly believes it is well qualified to perform these services based on our extensive experience conducting compensation and total rewards studies for California municipal organizations, including our experience with CalPERS and public safety positions. Baker Tilly confirms that this proposal constitutes a firm and irrevocable offer, subject to specific requested modifications to the City's Professional Services Agreement as identified in this proposal. About Baker Tilly We are a top-ten advisory, tax and assurance firm dedicated to customized business solutions that generate and sustain growth. We lead with purpose and walk with you every step of your journey. What We Stand For Forward is the only direction we know. • Protecting your value means helping you navigate regulatory requirements, identifying and mitigating risk, and improving the way you work. • We make your business our business — and we’re alongside you through the crests and valleys. Who We Are Passionate. Curious. Driven. • Our professionals, who hail from coast to coast and around the world, bring diverse perspectives, experiences and points of view to help you discover what’s possible. • As Value Architects™, we draw upon our natural sense of curiosity to uncover new opportunities with our clients and build new blueprints for success. Our Journey Honoring our roots. Shaping our future. • Our firm was born in 1931 in Waterloo, Wisconsin, at the height of the Great Depression. Ed Virchow started our business by providing audits to the Midwestern canning companies that helped feed our nation. • Since then, we have combined with more than 50 different firms, growing our presence coast to coast and internationally. • Our journey has taken us from a local to a regional to a global firm — building on our culture of passion, innovation and collaboration and always searching for the next best way to work, serve and connect. On June 3, 2025, Baker Tilly and Moss Adams combined to redefine advisory and accounting services for our clients. Our unified firm operates under the Baker Tilly name, forming a leading firm positioned to help the middle market navigate an increasingly complex environment. Our combination multiplies the value we can deliver through a shared people-first culture, client-centric service model and steadfast commitment to quality. We didn’t merge to be bigger. We merged to be better. 5 Industry & Service Specialization We’ve been advising public sector organizations for 90+ years and are one of the few advisory, tax and assurance firms with a practice dedicated entirely to serving governmental clients. Unlike many other firms, Baker Tilly is organized by sector, not service line. What does this mean for your organization? It means you will be served by a government-focused team of professionals with specialized skills and experience in the services provided. Nationwide, our public sector practice includes more than 350 professionals providing services for more than 4,200 state and local government entities. Further, Baker Tilly has been providing human resources and management consulting services for more than 30 years.1 Our specific compensation-related services include: • Compensation plan implementation • Employee opinion survey • Employee pay equity testing (gender, race, and age) • Fair Labor Standards Act (FLSA) review • Job architecture / career ladder development • Job description development • Job evaluation and analysis • Pay and benefits market studies • Pay equity compliance • Pay policy and practices • Pay structure design • Performance management While our practice has evolved over the years to stay aligned with trends and regulations, it has always remained focused on serving public sector clients. Here are some examples of the types of organizations we commonly work with: • State, county, or municipal • Bridge, tunnel, or tollway • Education (K-12, higher education, libraries) • Healthcare (health, hospital) • Housing or community development • Not-for-profit • Parks and recreation • Public safety (fire protection, emergency services, corrections) • Transportation (airport, mass transit, parking, port) • Tribal government • Utilities (electric, gas, sewer, solid waste, water) 1 Prior to our combination with Baker Tilly in 2019, our team provided human resources-related services as Springsted Inc. (based in Minnesota) and as Waters Consulting (based in Texas) prior to 2014. 6 Our Team Baker Tilly’s public sector compensation practice operates as an integrated national team, allowing us to assemble professionals based on the expertise and experience best suited to each engagement. Our team routinely serves public sector clients virtually across the country and will be available for on-site meetings and presentations in Arcadia as needed. Madeline Scott (Manager) will serve as Project Manager and the City’s primary point of contact, coordinating the Baker Tilly team, maintaining regular communication with Human Resources and monitoring project progress. Below is more information on our compensation professionals: Jada Kent, CCP, CLRP | Managing Director Jada leads the compensation consulting practice within Baker Tilly’s public sector advisory group and has been with the firm since 2015. She has more than 10 years of experience providing consulting services to local governments nationwide. Jada is focused on providing a variety of services related to job classification, base pay market analysis, pay plan development, FLSA review, benefits comparative analysis, pay policy recommendations, compensation philosophy design, and strategic compensation communication and change management. She has earned a Master of Legal Studies from Texas A&M School of Law and a Master of Public Affairs from the University of Texas at Dallas. She is a member of the North Texas Compensation Association, a Certified Compensation Professional, and a Certified Labor Relations Professional through National PELRA. Jessie Lenhardt, PMP | Senior Manager Jessie specializes in helping clients in the public sector achieve their organizational development goals. Her experience includes strategic planning, succession planning, process enhancement, evaluations of organizational and operational efficiency, compensation benchmarking, and assessments of structure and staffing. Jessie's approach is grounded in a deep understanding of the dynamics that shape effective organizations, and she brings a unique blend of strategic thinking and operational acumen to each engagement. She holds a Master’s in organizational leadership from Gonzaga University, is a Project Management Professional (PMP), and is in progress to obtain a Certified Compensation Professional (CCP) designation. Sarah Towne, CCA | Senior Manager Sarah is a senior manager with a background in higher education, local government and human resources management. Sarah is experienced in leading classification and compensation projects, including job evaluation, compensation benchmarking, pay structure design, career ladder development, FLSA review, benefits and total compensation analysis, implementation strategy, job descriptions, and pay policy development. Sarah has additionally served as an adjunct faculty member and course coordinator for the online MPA program at the University of North Carolina’s School of Government for 10 years. She is a member of the Southeastern Conference for Public Administration and has served on the Personnel Administration and Labor Relations board of the American Society for Public Administration. She earned a Master of Public Administration from Appalachian State University and pursued her doctoral studies in Public Administration at American University in Washington, DC. Sarah is a Certified Compensation Analyst (CCA) from the Compensation Analyst Academy. 7 Emily Hayes, CIA | Manager Emily has more than 14 years of experience in a diverse range of roles delivering a broad array of consulting, internal audit and in-depth research services. Her passion is helping clients identify, evaluate and implement opportunities for improvement through strategic, operational and risk management consulting services. Emily’s background in research and information management drives her commitment to connecting clients with meaningful, actionable information in every engagement. Emily has led the delivery of targeted research and analysis services, including financial, operational and compensation benchmarking; economic, industry and market analysis; the development and administration of surveys; and the development and tracking of performance measures. She holds a Master in Information Science from the University of Washington and is a Certified Internal Auditor. Madeline Scott, CCP | Manager Madeline brings a decade of experience in data analysis, human resources and compensation in the public sector. For the State of Colorado, she led a high- performing compensation team responsible for daily operations, executive compensation and strategic initiatives that advanced pay equity and transparency in her agency. Her work included leading agency-wide pay equity audits, developing data-driven compensation systems and ensuring compliance with overlapping laws, rules and regulations. Madeline has managed complex compensation strategy and process innovations, including implementing HR data systems to streamline equitable pay decisions. She is recognized for developing inclusive systems that foster transparency and informed decision making. At Baker Tilly, Madeline collaborates closely with clients to design tailored solutions grounded in data, compliance and best practices aligned with each organization’s mission and values. She earned a Master's of Infrastructure Planning & Management, a Bachelor of Science in physics from the University of Washington and is a Certified Compensation Professional (CCP). Marti Gregory, CCA | Senior Consultant Marti is a consultant with a background in local government and higher education. She has over 7 years of experience in human resources, with a focus on public sector recruitment and selection. Marti provides project support by facilitating the employee questionnaire process, conducting job evaluation, developing job descriptions, conducting pay and benefits surveys, and related project reporting. Prior to joining Baker Tilly, Marti was a human resources analyst for the City of Pasadena. Additionally, Marti has served in human resources roles for MiraCosta Community College and the Anaheim Union High School District. Marti earned a Bachelor in Economics from Spelman College, a Master of Arts in Management from Wake Forest University and is a Certified Compensation Analyst (CCA) from the Compensation Analyst Academy. 8 Thomas Patton, CCA | Senior Consultant Thomas is a senior consultant with a background in human resources management and development, possessing more than 6 years of experience in providing classification and compensation services to local government organizations. Thomas serves as a project lead, responsible for managing projects from initiation to conclusion. He specializes in conducting job analysis and point-factor evaluation and provides training to clients to maintain their classification and compensation plans using our SAFE methodology. Thomas is experienced with MN Local Government Pay Equity requirements and the corresponding reporting. He is further experienced in reviewing FLSA designations and developing job descriptions and career ladders. Thomas earned a Bachelor of Science in Human Resources Development from the University of Minnesota-Twin Cities, is a Certified Compensation Analyst (CCA) from the Compensation Analyst Academy and is in progress toward obtaining the Certified Compensation Professional (CCP) designation. Daniel Tejada | Consultant Daniel is a compensation consultant on the public sector advisory team with more than 3 years of experience providing compensation consulting to local governments. Before joining Baker Tilly, Daniel worked as a human resources data analyst providing compensation and benefits consulting services across multiple industries. Daniel provides project support by conducting job evaluation, facilitating pay and benefits surveys, developing job descriptions and career ladders, and related project reporting. He earned a Bachelor’s Degree in Psychology from Florida State University. Anna Yin | Consultant Anna is a compensation consultant at Baker Tilly, specializing in data-driven compensation strategies for public sector clients. She advises municipalities, government agencies and public organizations on job evaluation, market assessment and pay structure design. Anna brings prior experience from two other consulting firms, where she contributed to compensation projects across various industries. She holds a Bachelor of Economics and Psychology from New York University, with a minor in Business Studies from the Stern School of Business. 9 Our Experience Our team has conducted hundreds of similar studies nationwide over the last 35 years, resulting in successful implementations in state and local governments of all sizes. More specifically, we’ve conducted over 700 compensation projects since 2009 alone, and your organization will benefit from our experience in delivering high-value compensation services. Listing our similar projects The following is a sample of organizations we have provided compensation services to over the last few years. We realize the list is lengthy, but so is our experience working with organizations that are very similar to and very different from yours. We hope you will trust that our extensive experience means we’ve seen and solved our share of challenges and can assist you and your organization through this study and any challenges you may also be facing. SAMPLE OF RELEVANT PROJECTS: PRESENT — 2023 Year Client State Project Pop. Pending Berkeley CA Class & comp study 121,749 Pending Des Plaines IL Class & comp study 60,675 Pending New Brighton MN Class & comp study 23,454 Pending Sunnyvale TX Class & comp study 7,893 Current Allegheny County PA Class & comp study 1,225,000 Current Buncombe County NC Class & comp study 269,452 Current Cape Coral FL Class & comp study 236,264 Current Casper/Natrona Co. Int. Airport WY Class & comp study 80,000 Current Columbus Utilities IN Market study 50,474 Current Dinwiddie Co. Public Schools VA Class & comp study 28,576 Current Foothills Regional Housing CO Class & comp study 582,910 Current Hillsborough County FL Class & comp study 1,630,000 Current Hutchinson Utilities Commission MN Class & comp study 5,500 Current Johnson County IA Class & comp study 160,080 Current Kings Mountain NC Class & comp study 11,142 Current Madison WI Class & comp study 269,196 Current Merrillville IN Class & comp study 36,347 Current North Texas Tollway Authority TX Class & comp study 14,000,000 Current Orland Park IL Class & comp study 58,703 Current Peach Tree Health CA Class & comp study 41,000 Current Proviso Township High School District IL Class & comp study 4,493 Current Sachse TX Pay for performance 32,294 Current South Bend IN Market study 103,201 Current Summit County CO Class & comp study 30,880 Current Wayzata MN Class & comp study 4,252 2026 Alamance County NC Class & comp study, Part 2 173,877 2026 Bemidji MN Class & comp study 15,743 2026 Churchill County NV Class & comp study 26,033 10 SAMPLE OF RELEVANT PROJECTS: PRESENT — 2023 Year Client State Project Pop. 2026 Garner NC Class & comp study 39,345 2026 Gatesville TX Job descriptions 16,135 2026 Hillsborough Co Aviation Authority FL Class & comp study, Part 2 8,400,000 2026 Laguna Beach CA Class & comp study 23,032 2026 Le Sueur County, MN MN Market study 28,674 2026 Loren Parks Memorial Foundation OR Executive compensation 2026 Natrona County WY Class & comp study 80,777 2026 New Carlisle IN Class & comp study 1,910 2026 Onalaska WI Class & comp study 20,200 2026 Ottawa County MI Class & comp study 306,240 2026 Sauk Rapids MN Class & comp study 13,896 2026 Thibodaux LA Market study 15,948 2026 Vivent Health WI Executive compensation 17,000 2026 Wake Forest NC Class & comp study, Part 2 49,657 2026 West Lafayette IN Class & comp study 45,060 2025 Auburn IN Class & comp study 13,410 2025 Beltrami County MN Class & comp study 46,799 2025 Bexar County Deputy Sheriffs Assn TX Market study 1,990,000 2025 Bloomington MN Class & comp study 87,797 2025 Bloomington IN Pay Policy Review 79,170 2025 Cheyenne River Sioux Tribe SD Comp study 15,933 2025 Crystal MN Class & comp study 21,906 2025 Guilford County NC Compensation consulting 549,866 2025 Hillsborough Co Aviation Authority FL Class & comp study, Part 1 8,400,000 2025 Hollister CA Compensation study 44,218 2025 Huntington (Union) IN Market study 17,020 2025 Kansas City Police Department MO Class & comp study 508,394 2025 Kennewick WA Class & comp study 84,750 2025 King County Housing Authority WA Class & comp study 50,000 2025 Lake County IL Class & comp study 711,239 2025 LeSueur County MN Compensation study 29,255 2025 Maricopa County Sheriff's Office AZ Compensation study 4,615,909 2025 Medina County TX Class & comp study 53,723 2025 Middleton WI Class & comp study 21,830 2025 Mount Holly NC Class & comp study 18,170 2025 New Bern NC Comp consulting 32,226 2025 Pasco WA Class & comp study 78,871 2025 Pasco County Sheriff's Office FL Class & comp study 632,996 2025 Paso Robles CA Class & comp study 31,759 2025 Peach Tree Health CA Comp & class study 27,000 11 SAMPLE OF RELEVANT PROJECTS: PRESENT — 2023 Year Client State Project Pop. 2025 Pineville NC Class & comp study 10,866 2025 Port Arthur TX Market Study 56,040 2025 Roseville CA Career ladder development 159,135 2025 Sachse TX Class & comp study 32,294 2025 Savannah GA Class & comp study 148,566 2025 Seattle Housing Authority WA Class & comp study 780,995 2025 Sioux City IA Class & comp study 85,543 2025 St. Paul MN Class & comp study 303,176 2025 Thibodaux LA Pay Adjustment Study 15,950 2025 TOArts CA Comp benchmarking 50,000 2025 Ulster County NY Class & comp study 181,951 2025 Utah, State of UT Compensation study 3,417,734 2025 Utah, State of UT Title & comp audit 3,417,734 2025 Utah, State of UT Wage scales & career series 3,417,734 2025 Vernon CA Class & comp study 35,162 2025 Visit Pleasant Prairie WI Market study 21,901 2025 Waite Park MN Class & comp study 8,360 2025 Weber County UT Class & comp study 269,561 2025 Weld County CO Class & comp study 340,036 2025 Wolverine Human Services MI Executive compensation 2024 Alamance County NC Class & comp study, Part 1 173,877 2024 Apex NC Class & comp update 62,911 2024 ARRAY Alliance CA Comp benchmarking 2024 Burke County NC Class & comp study 87,611 2024 Columbus OH Compensation study 906,528 2024 Compton CA Class & comp study 95,740 2024 Douglas County NV Class & comp study 49,870 2024 Elk River Municipal Utility MN Class & comp study 27,340 2024 Franklin County NC Class & comp study 68,570 2024 Frederick MD Class & comp study 79,588 2024 Greensboro NC Pay equity study 298,236 2024 Hermantown MN Class & comp study 10,130 2024 Idaho National Laboratory ID Comp MFC USW data 2,062,610 2024 Miami FL Compensation study 305,756 2024 Milwaukee Metro Sewer District WI Class & comp study 563,531 2024 Mono County CA Class & comp study 13,247 2024 Morehead City NC Class & comp study 9,857 2024 New Mexico, State of, Law Offices of the Public Defender NM Hourly rate study 2,130,256 2024 Newark CA Reclassification Review 47,530 12 SAMPLE OF RELEVANT PROJECTS: PRESENT — 2023 Year Client State Project Pop. 2024 North Las Vegas NV Class & comp study 247,248 2024 Oregon Public Defense Commission OR Salary study 4,272,371 2024 Pierce Township OH Compensation study 15,100 2024 Pinellas County Sheriff's Department FL Class & comp study 959,107 2024 Red Wing MN Class & comp study 16,550 2024 Richfield MN Class & comp study 36,527 2024 Saginaw TX Class & comp study 24,011 2024 Salt River Community Gaming Enterprises AZ Comp benchmarking 7,382 2024 Seattle Housing Authority WA Class & comp study 780,995 2024 Shelbyville (Police & Fire) IN Compensation study 20,070 2024 Summit County CO Class & comp study 31,055 2024 Trinity River Authority TX Class & comp study 1,861,247 2024 Truckee Donner Public Utility District CA Comp study 45,000 2024 Wake Forest, part 1 NC Compensation study 49,657 2023 Ashland KY Pay & class study 21,625 2023 Bemidji MN Market study 14,574 2023 Bexar County TX Class & comp study 1,990,000 2023 Clark County WA Class & comp study 511,404 2023 Eudora KS Pay & class study 6,408 2023 Fort Wayne IN Class & comp study 263,886 2023 Frederick Police Department MD Class & comp study 79,588 2023 Goshen IN Wage & benefits analysis 34,108 2023 Greene County VA Class & comp study 19,779 2023 Guadalupe County TX Class & comp study 177,036 2023 Harrisonburg VA Class & comp study 51,814 2023 Hernando County FL Classification study 200,638 2023 Laurinburg NC Class & comp study 15,118 2023 Marion IA Class & comp study 41,535 2023 Minnehaha Creek Watershed District MN Class & comp study 450,000 2023 Montgomery County TX Compensation study 607,391 2023 New Brighton MN Class & comp study 23,454 2023 Port Gamble S'Klallam Tribe WA Council comp review 1,440 2023 Prince Edward County VA Comp consulting services 22,950 2023 Purcellville VA Class & comp study 8,929 2023 Rappahannock County VA Class & comp study 7,407 2023 Rockingham County VA Class & comp study 81,244 2023 RSW Regional Jail VA Class & comp study 130,000 2023 Salt River Community Gaming Enterprises AZ Comp benchmarking 7,382 2023 Sampson County NC Class & comp study 58,990 13 SAMPLE OF RELEVANT PROJECTS: PRESENT — 2023 Year Client State Project Pop. 2023 San Diego Housing Authority CA Comp services 1,404,452 2023 Scott County VA Class & comp study 21,534 2023 St. Cloud HRA MN Class & comp study 500,000 2023 Stevens Point WI Class & comp study 25,670 2023 Victoria County TX Class & comp study 92,035 2023 Waite Park MN Market study 8,360 2023 Wayzata MN Market study 4,378 2023 West Valley Housing Authority OR Comp benchmarking 90,000 2023 Wheaton IL Classification study 53,970 2023 Woodstock VA Class & comp study 5,861 14 Demonstrating that we've been down this path before The experiences of our clients speak more to Baker Tilly’s capabilities than any proposal ever could. That’s why we encourage you to talk with our clients. Here are a few individuals who welcome the opportunity to share their Baker Tilly experience. Each will give you an authentic perspective as you consider your own needs. City of Laguna Beach, CA Name & Title Robina Arora, Senior Human Resources Analyst Address 505 Forest Avenue Laguna Beach, CA 92651 Phone (949) 715-8606 Email rarora@lagunabeachcity.net Services The City has approximately 324 employees across about 169 unique position titles. The project included comprehensive job evaluation, a base pay market survey of 134 benchmark positions, and a benefits comparison. Baker Tilly developed five pay structures (Police, Fire, Marine Safety, General, and Management) and three implementation cost scenarios to support internal equity, market competitiveness, and long-term administration of the compensation system. City of Paso Robles, CA Name & Title Shannon Foutz, Human Resources/Risk Manager Address 1000 Spring Street Paso Robles, CA 93446 Phone (805) 237-3962 Email SFoutz@prcity.com Services The City has approximately 286 employees across 112 position titles. The project included comprehensive job evaluation, a base pay market survey, FLSA review, and a comparison of peer benefits and pay practices. Baker Tilly developed a consolidated 25- grade pay plan and three implementation cost scenarios designed to support internal equity, external competitiveness, and sustainable administration of the City’s compensation system. Town of Wake Forest, NC Name & Title Angela McCray, Human Resources Director Address 301 S. Brooks St. Wake Forest, NC 27587 Phone (919) 435-9491 Email amccray@wakeforestnc.gov Services The Town has approximately 340 employees across more than 160 positions. The project included comprehensive job evaluation and a base pay market survey. Baker Tilly developed four pay structures (Police, Fire, Electric-Util, and General) and implementation cost scenarios to support continued market competitiveness and internal equity. Baker Tilly conducts a rotating review of approximately one third of the Town's position classifications each year as part of a three-year compensation maintenance cycle. PROVIDING VALUABLE PERSPECTIVES FROM CURRENT CLIENTS At Baker Tilly, relationships matter. Our team has a record of successfully enhancing and protecting similar clients’ goals — resulting in experience-based insights for the City. 15 Service approach Providing our solution to achieve the City’s objectives The following pages outline our methodology and proposed project scope for the City’s Total Compensation Study. Our team of Certified Compensation Professionals developed Baker Tilly’s approach and project tools. We take pride in our ability to provide your organization with sound results and recommendations that, if implemented, are fair and defensible. We are confident that you will find our assertions substantiated by the information presented in this proposal and the comments provided by our references. We look forward to a successful and lasting relationship. Phase 1 – Project Initiation & Current State Review • Project Planning. Baker Tilly will meet with the City’s project team to confirm project objectives, finalize the work plan and establish the project schedule. Regular status communication with Human Resources will continue throughout the engagement. • Data collection. Baker Tilly will collect documentation from your organization such as job descriptions, organization charts, salary and benefit schedules, the Fringe Benefits Resolution, the memoranda of understanding for each of the City’s five bargaining groups (ACEA, AFFA, APCEA, APOA and APWEA), and an employee census file. Current job descriptions will serve as our understanding of each position in the study. • Current State. We will review the City’s existing job descriptions and compensation system to understand position duties and responsibilities, organizational relationships, and the current salary and benefit structure. This information will provide the foundation for market matching and consideration of internal equity throughout the study. • Communication Meetings. In addition to project team meetings, Baker Tilly will also conduct leadership and employee information meetings to introduce our team and the project process and answer questions about the project. We will also distribute a department head questionnaire to your leadership team and, if necessary, meet 1-on-1 or in groups to get additional information about any specific classification and compensation challenges in their area. • Job Evaluation. Job evaluation involves assessing and comparing positions within an organization to determine their relative value. We can utilize your existing job evaluation process or implement our own. Baker Tilly has a proprietary point-factor job evaluation system called SAFE® (Systematic Analysis and Factor Evaluation), which was designed specifically to measure public sector roles. This method assigns point values across multiple levels for each compensable factor (shown below), resulting in a total score that reflects the internal equity of each position. o SAFE supports the development of a fair and consistent job hierarchy, aligning with the requirements of the federal Equal Pay Act. Results will be reviewed and finalized with your organization’s project team to establish job hierarchy. Our process is highly collaborative and requires the participation of our clients. We want to leave the City of Arcadia with a total compensation analysis that will assist in achieving your compensation philosophy, attract and retain qualified workers, and align with your organizational needs. To achieve this, we need your input along the way. We encourage organizations that are interested in collaborating with Baker Tilly on such a study to be prepared for an inclusive process. 16 Nine Compensable Factors Measured by SAFE Compensable Factors Weight Description / Measurement Education 16% Minimum formal education level required by the position Experience 12% Minimum years of experience required by the position Level of Work 14% Degree of difficulty of work performed by the position Human Relations 8% Type and level of human interactions Physical Demands 5% Physical exertion performed by the position Working Conditions 7% Environmental conditions experienced by the position Independence to act 12% Degree of independence to make decisions and act on them Impact of actions 14% Severity of consequences as a result of decisions Supervision exercised 14% Type and level of supervision exercised Phase 2 – Total Compensation Market Study • Benchmark Positions. Baker Tilly will review the City’s position titles and identify a sample to be benchmarked in the market survey. Benchmarks are typically the most common and recognizable positions and, therefore, are most likely to yield higher quality and quantity matches. We will work with you to ensure the sample includes every level of the organization, most populated titles, law enforcement, and leadership roles necessary to achieve the best results. • Public Peer Organizations. Baker Tilly will work with your organization to establish a list of comparable peer organizations to include in the study. Generally, these organizations will be similar in size and the services they provide, and they will have similar roles. These organizations are often those from which you lose employees or gain new ones; however, it may be necessary to consider public peer organizations similar in size and services but located outside the immediate geographic area. Consistent with the RFP, the survey will include up to 14 comparable regional public agencies impacting the Arcadia labor market, confirmed with Human Resources during Phase 1. o To represent the private sector in the dataset, we may utilize pay data from the following survey sources, as desired: CompAnalyst, Economic Research Institute (ERI), the Bureau of Labor Statistics, and/or Pay Factors. • Quality Control. Baker Tilly will review and validate survey data to confirm 75% overlap in duties and responsibilities, as this is the accepted best definition of a “good” match. Additionally, we require at least 3 matches per benchmark position to determine market value. • Data Adjustments. Adjustments may be applied to establish consistency in market data comparison; to include adjustments for differences in workweek hours, aging the data if it’s not for the current fiscal year, and cost of labor adjustments by geography. Controlling these elements means you can trust the accuracy of the data result. • Market Reports. Baker Tilly will deliver two market reports: 1) demonstrating an aggregate of the market minimum, midpoint and maximum for each benchmark and 2) a comparison of your organization’s current ranges to the market range. Sample shown below. 17 Sample market results Sample range comparison • Benefits Comparison. We will conduct a comprehensive benefits and special pay survey of comparable peer organizations, including employer-paid retirement contributions, longevity pay, certification pay, educational incentives, specialty pay, standby/call-back pay, employer-paid medical, dental, vision, life and disability insurance contributions, and leave benefits such as holiday, sick and vacation leave. Results will be compiled and compared to the City’s current offerings to assess the market competitiveness and value of its benefits package and support an overall analysis of total compensation. Retirement comparisons will address CalPERS classic and PEPRA tiers, employer- paid member contributions and cost-sharing arrangements, so that retirement value is compared on a like-for-like basis across peers. #Department Benchmark Title Matches Average Minimum Average Midpoint Average Maximum Spread 1 Administration City Administrator 7 115,638.95 135,998.75 149,182.14 29% 2 Administration City Clerk 5 64,417.15 73,749.84 83,082.52 29% 3 Building Inspections Building Official 10 71,421.18 84,443.23 97,465.28 36% 4 Communications Director of Communications & Community Engagment 4 75,859.29 94,214.87 112,570.45 48% 5 Community Developmen Director of Community Development 11 83,597.87 98,177.72 112,757.57 35% 6 Finance & Admin Accountant 9 62,014.07 74,704.62 87,395.16 41% 7 Finance & Admin Accountant Clerk 11 46,745.78 55,492.67 62,704.34 34% 8 Finance & Admin Administrative Assistant 8 42,700.57 50,210.81 57,721.05 35% 9 Finance & Admin Director of Finance and Administration 12 101,431.02 125,245.91 149,060.81 47% 10 Finance & Admin Utility Billing Clerk 12 47,940.98 55,911.35 63,419.80 32% 11 Public Safety Deputy Fire Chief 5 68,562.00 85,194.52 88,254.95 29% 12 Public Safety Fire Inspector/Training Officer 3 62,918.03 72,923.67 82,462.43 31% 13 Public Safety Chief of Police 6 95,766.90 109,930.07 124,093.23 30% 14 Public Safety Lead Police Records Technician 5 45,229.72 54,262.68 63,295.64 40% 15 Public Safety Police Commander 6 81,181.10 92,218.43 103,255.76 27% 16 Public Safety Police Officer 10 61,842.82 72,068.24 82,293.67 33% 17 Public Safety Police Records Technician 12 43,707.88 51,911.91 58,545.26 34% 18 Public Safety Police Sergeant 9 72,902.07 86,154.45 98,016.13 34% 19 Public Safety Property Technician Law Enforce Secretary 7 45,901.72 53,991.18 62,080.64 35% 20 Public Works Building Maintenance Worker 10 43,847.18 51,822.67 59,798.16 36% 21 Public Works Public Works Director 6 98,811.71 110,837.51 122,863.31 24% 22 Public Works Utility Maintenance Worker 11 48,805.31 57,783.96 66,620.71 37% 23 Utilties Director of Utilities & Infrastructure 5 97,574.80 115,101.46 132,628.12 36% #Department Benchmark Title Matches Average Minimum Average Midpoint Average Maximum Current Minimum +/- Market Current Midpoint +/- Market Current Maximum +/- Market 1 Finance & Admin Administrative Assistant 8 42,700.57 50,210.81 57,721.05 43,368.00 1.6%48,287.20 -3.8%53,206.40 -7.8% 2 Finance & Admin Accountant Clerk 11 46,745.78 55,492.67 62,704.34 47,236.80 1.1%52,759.20 -4.9%58,281.60 -7.1% 3 Public Safety Police Records Technician 12 43,707.88 51,911.91 58,545.26 47,236.80 8.1%52,759.20 1.6%58,281.60 -0.5% 4 Finance & Admin Utility Billing Clerk 12 47,940.98 55,911.35 63,419.80 50,440.00 5.2%56,472.00 1.0%62,504.00 -1.4% 5 Public Safety Lead Police Records Technician 5 45,229.72 54,262.68 63,295.64 50,440.00 11.5%56,472.00 4.1%62,504.00 -1.3% 6 Public Safety Property Technician Law Enforce Secretary 7 45,901.72 53,991.18 62,080.64 50,440.00 9.9%56,472.00 4.6%62,504.00 0.7% 7 Public Works Building Maintenance Worker 10 43,847.18 51,822.67 59,798.16 54,412.80 24.1%60,569.60 16.9%66,726.40 11.6% 8 Public Works Utility Maintenance Worker 11 48,805.31 57,783.96 66,620.71 54,412.80 11.5%60,569.60 4.8%66,726.40 0.2% 9 Administration City Clerk 5 64,417.15 73,749.84 83,082.52 62,234.63 -3.4%70,707.23 -4.1%79,179.83 -4.7% 10 Public Safety Police Officer 10 61,842.82 72,068.24 82,293.67 64,500.80 4.3%71,895.20 -0.2%79,289.60 -3.7% 11 Finance & Admin Accountant 9 62,014.07 74,704.62 87,395.16 71,252.44 14.9%80,952.72 8.4%90,653.00 3.7% 12 Building Inspections Building Official 10 71,421.18 84,443.23 97,465.28 76,240.11 6.7%86,619.41 2.6%96,998.71 -0.5% 13 Public Safety Fire Inspector/Training Officer 3 62,918.03 72,923.67 82,462.43 76,240.11 21.2%86,619.41 18.8%96,998.71 17.6% 14 Public Safety Police Sergeant 9 72,902.07 86,154.45 98,016.13 84,739.20 16.2%87,755.20 1.9%90,771.20 -7.4% 15 Public Safety Police Commander 6 81,181.10 92,218.43 103,255.76 87,287.29 7.5%99,170.55 7.5%111,053.81 7.6% 16 Public Safety Deputy Fire Chief 5 68,562.00 85,194.52 88,254.95 87,287.29 27.3%99,170.55 16.4%111,053.81 25.8% 17 Communications Director of Communications & Community Engagment 4 75,859.29 94,214.87 112,570.45 93,397.41 23.1%106,112.49 12.6%118,827.58 5.6% 18 Community Development Director of Community Development 11 83,597.87 98,177.72 112,757.57 93,397.41 11.7%106,112.49 8.1%118,827.58 5.4% 19 Public Works Public Works Director 6 98,811.71 110,837.51 122,863.31 93,397.41 -5.5%106,112.49 -4.3%118,827.58 -3.3% 20 Utilties Director of Utilities & Infrastructure 5 97,574.80 115,101.46 132,628.12 93,397.41 -4.3%106,112.49 -7.8%118,827.58 -10.4% 21 Finance & Admin Director of Finance and Administration 12 101,431.02 125,245.91 149,060.81 106,930.68 5.4%121,488.18 -3.0%136,045.69 -8.7% 22 Public Safety Chief of Police 6 95,766.90 109,930.07 124,093.23 106,930.68 11.7%121,488.18 10.5%136,045.69 9.6% 23 Administration City Administrator 7 115,638.95 135,998.75 149,182.14 114,415.83 -1.1%129,992.36 -4.4%145,568.89 -2.4% Average Min 9.1%Average Mid 3.8%Average Max 1.2% Market City 18 Sample comparisons • Pay Strategy and Design. Baker Tilly will lead discussions about possible pay plan adjustments and an approach for recalibrating grade assignments. The purpose of this task is to ensure your compensation philosophy goals are able to be achieved through the design of your pay structure. Samples of different pay structures are shown below. Sample Pay Structures • Grade Assignments. Once the pay structures are finalized, positions will be assigned to appropriate pay grades using a combination of internal job evaluation scores from the SAFE system and external market data. To confirm the design of the pay structure and test for anomalies or outliers by position, Baker Tilly will apply a regression analysis to evaluate the relationship between internal and external data and understand the natural distribution of jobs. Example shown below. Grade 1 2 3 4 5 6 7 Mid Diff Spread 1 $50,000 $52,500 $55,125 $57,881 $60,775 $63,814 $67,005 34% 2 $54,000 $56,700 $59,535 $62,512 $65,637 $68,919 $72,365 8.0%34% 3 $58,320 $61,236 $64,298 $67,513 $70,888 $74,433 $78,154 8.0%34% 4 $62,986 $66,135 $69,442 $72,914 $76,559 $80,387 $84,407 8.0%34% 5 $68,024 $71,426 $74,997 $78,747 $82,684 $86,818 $91,159 8.0%34% Grade Minimum Midpoint Maximum Mid Diff Spread 1 $50,000 $57,881 $67,005 34% 2 $54,000 $62,512 $72,365 8.0%34% 3 $58,320 $67,513 $78,154 8.0%34% 4 $62,986 $72,914 $84,407 8.0%34% 5 $68,024 $78,747 $91,159 8.0%34% Grade 1 2 3 4 Maximum Mid Diff Spread 1 $50,000 $52,500 $55,125 $57,881 $72,352 45% 2 $54,000 $56,700 $59,535 $62,512 $78,140 8.0%45% 3 $58,320 $61,236 $64,298 $67,513 $84,391 8.0%45% 4 $62,986 $66,135 $69,442 $72,914 $91,142 8.0%45% 5 $68,024 $71,426 $74,997 $78,747 $98,434 8.0%45% St e p Op e n Hy b r i d 19 o Preliminary grade assignments will be reviewed with your organization’s project team, and Baker Tilly may also recommend a broader review with department heads to gather additional input before finalizing the assignments. Sample regression analysis Phase 3 – Compression Analysis, Cost Modeling & Administration • Pay Compression and Compaction Analysis. Baker Tilly will test the City’s current and proposed structures for pay compression and compaction between employees and supervisors and between adjacent grades, including the safety series, and will report the positions and relationships where compression is present together with options for resolving it. • Employee Allocation and Cost Modeling. To this point, the study has focused entirely on the position. In this step, we will shift focus to employees, and Baker Tilly will work with your organization to appropriately allocate each employee to a title and grade established within the proposed pay plan. Next, Baker Tilly will prepare three scenarios for your organization modeling the estimated cost to implementation of the proposed plan. These scenarios are intended to define a consistent approach for adjusting employee salaries relative to the newly defined pay range for their position. Common scenarios include 1) the minimum action needed to adopt the plan, 2) an approach that mimics an across-the-board adjustment and 3) an approach that addresses pay compression. Sample Implementation Cost Analysis 20 • Administration Guidelines. Changes to the City’s compensation system may impact its current pay- related policies and practices. We will provide guidance for new or updated policies aligned with best practices, including standard guidance for general and market/COLA increases as well as employee placement upon hire, promotion, and reclassification. o A more in-depth and tailored pay policy review and recommendations report can be provided as an additional service, if desired. • Communication Plan. To prepare for implementation, we will provide the City with the tools it needs to communicate the new plan to employees. This includes a draft of the final presentation, Frequently Asked Questions to be distributed organization-wide, implementation examples to help employees understand the impact to their pay, as well as a guideline to any policy changes. Phase 4 – Project Completion • Final Documentation. Baker Tilly will deliver final documentation summarizing the methodology used, key findings and recommendations tailored to your organization. We understand this is a public facing document and, therefore, it will focus on position-level outcomes and will not include individual employee data. • Final Communication. We will provide up to two presentations to explain the study’s findings and recommendations. Typically these include a presentation to your organization’s elected officials as well as an organization-wide presentation for all staff to learn about the results and ask questions. Explaining the City’s responsibilities Proper planning and collaboration are vital to ensure the efficient and successful execution of the City's total compensation study. This section outlines the key responsibilities of both Baker Tilly and the City's project team, focusing on ongoing maintenance, data collection and stakeholder engagement. • Project team. We will work closely with your organization’s project team and recommend establishing standing 15- to 30-minute bi-weekly meetings for the duration of the project. Furthermore, we may request that your organization’s project team collaborate with us to schedule meetings with key stakeholders and decision makers, thereby facilitating the successful completion of the study. • Data collection. We will prepare a detailed data request outlining the necessary information to perform these services. The data will be requested in a format compatible with our computer system and project tools (Microsoft Excel and Word). We will examine the data for missing information and consistency upon receipt. • Job documentation. Consistent with the RFP, this scope and price rely on the City’s existing job descriptions rather than online position analysis questionnaires. If a current description is unavailable or materially out of date, Baker Tilly will work with the City’s project team to identify the appropriate staff to confirm duties for that position. • Salary and benefits data. Our ability to provide fair and defensible recommendations on pay depends on the availability of that data. Baker Tilly may request your organization’s project team or leadership to contribute to outreach efforts to collect necessary data from public peer organizations and keep the project on schedule. 21 • Review of and feedback on preliminary results. We encourage clients to be involved in significant decisions regarding preliminary results that will drive the study’s outcomes. However, we understand that your commitment to providing uninterrupted support and services to the community must come first, and that your organization’s project team may not be as available as expected to review and approve information when provided. We are familiar with the ebb and flow of local government operations and will be flexible in coordinating with your organization to keep the project on track as much as possible. Project Timeline They say time is money, and we agree. We’ll collaborate closely with you to finalize a project plan that meets all your needs — especially your timing. We are prepared to initiate the City’s Total Compensation Study within two weeks of receiving the official notice to proceed. The table below shows a projection of how long we expect your project to take, based on the scope. Baker Tilly recognizes the RFP’s estimated end date of January 5, 2027. Anticipated Project Timeline in Months Project Phase Sep Oct Nov Dec Jan 1. Project Initiation 2. Total Compensation Market Study 3. Compression Analysis, Cost Modeling & Administration 4. Project Completion * There are factors impacting the project schedule that are beyond the consulting team’s control, such as holidays that impact office closures; HR operations that take up significant resources, such as benefit enrollment, payroll and budget cycles; as well as client availability to review results and approve the direction of the project. Baker Tilly will promptly advise the organization if any factors impact the project timeline. 22 Project Fee We will perform the tasks as described in this proposal for your organization for a fixed professional fee of $54,400. This fee is based upon conducting a total compensation review of approximately 155 position titles covering the City’s 322 full-time and regular part-time benefitted employees, as described in Section III of the RFP. COSTING BREAKDOWN: BASE STUDY PRICE Project Initiation. Includes planning meetings with project team, data collection, current state assessment, and communication meetings (up to 2) to inform staff about the project and answer questions. Also includes SAFE® job evaluation. $9,900 Total Compensation Market Study. Includes custom survey with 100 benchmarks to 14 public peers and inclusion of up to 2 published surveys sources representing the private sector. Delivery of updated pay plan and grade assignments. $34,500 Compression Analysis, Cost Modeling & Administration. Includes compression testing, cost modeling across 3 scenarios, policy guidelines and a communication plan. $4,700 Project Completion. Includes delivery of final documentation and up to 2 final (virtual) presentations of the results. $2,200 Project Management. Standing bi-weekly meetings for duration of the project. $3,100 TOTAL $54,400 Invoicing for services. We will invoice based on the milestones outlined in the breakdown shown above. Partial phase billing may occur if the duration exceeds 45 days. Out-of-pocket expenses. Should your organization desire and approve in-person meetings or presentations, we will invoice for direct out-of-pocket travel expenses. Estimated expenses of ~$500 - $1,200 per 1–2-day visit, depending on the visit. Role Rate Director $430 Senior Manager $340 Manager $280 Senior Consultant $230 Consultant $180 Examples of out-of-scope requests may include additional peers or benchmarks, additional pay structures or implementation scenarios, and/or additional reports or meetings beyond what is described in the project scope. Additional services. We are happy to go beyond the scope of the project to deliver to your needs. Whenever possible, we’ll provide an estimate in advance, outlining the time and expenses we believe will achieve your objectives. 23 ONGOING SERVICES PRICE Ad hoc Service model: We offer an ad hoc consulting agreement for flexible, on- demand support tailored to your organization’s needs. Under this model, clients typically engage us at a fixed rate per reclassification request, supplemented by our standard hourly rates for additional services such as market analysis, FLSA compliance reviews, training sessions, or presentations, etc. • These agreements are generally structured with a two-year or $20,000 cap, whichever comes first. More important, we only invoice for work that is specifically requested, and most clients average $4,500 annually under this arrangement. We are happy to customize the contract to include any cap or scope parameters that align with your budget and expectations. • For clients anticipating recurring needs—such as annual mini-market studies or a formal appeals process—we can incorporate these as fixed-price deliverables while remaining available for other ad hoc requests throughout the year. This model is particularly well-suited for organizations that prefer to maintain on-call access to expert support without committing to a full-scale engagement upfront. $250 per reclass Hourly rates otherwise Prepaid service model: As an alternative to ad hoc billing, we offer a prepaid service agreement that provides predictable support over a multi-year period. Under this model, the organization would commit to a three-year engagement with a minimum investment of $15,000, distributed as $5,000 prepaid annually. • In recognition of this commitment, we would extend a 10% discount on the base study. • The $5,000 annual allotment could be used in any way needed by the organization, for example, up to 20 reclassification requests or approximately 20 consulting hours, or a mixture of those. Should additional services be required beyond the prepaid scope, we would offer discounted hourly rates (10%) for any supplemental work. • This approach is ideal for organizations that anticipate a consistent level of support over time and prefer the budget certainty and value of a prepaid structure, while still maintaining flexibility for evolving needs. $15,000 prepaid for 3 years Discounted rates for work beyond that Preparing our best and final offer. We understand that budget considerations are crucial. While our pricing reflects the estimated hours and effort, we’re flexible. In our experience, the most significant pricing variations among comparable consulting firms often stem from differences in how scope is interpreted. We welcome the opportunity to have an open conversation about how our approach and deliverables compare to others—and are happy to adjust the scope, if needed, to better align with your priorities or budget. 24 Our Promise Our team of compensation professionals brings a proven track record of designing and delivering strategic compensation solutions, performing comprehensive classification analysis, and navigating complex pay equity issues to ensure fair and defensible results for our clients. • Our SAFE® job evaluation process is a fair, consistent, defensible and objective approach for comparing position characteristics. In today’s environment, organizations need to know that their methods are proven and sound. SAFE will provide your organization with the tools it needs to ensure positions are measured consistently across nine key factors. • With Baker Tilly, you do not just get a study; you get a customized system and access to our proprietary job evaluation process afterwards. We train our clients so they are equipped to administer and maintain their new classification and compensation plan post-project. As positions evolve, new positions are created and/or market conditions change, your HR staff will be able to make the appropriate adjustments using our SAFE job evaluation process. • We know a good study rests on quality data. Our recommendations are data-driven, and our process adheres to best practices and guidelines for collecting and analyzing that data. When working with public sector organizations, we understand that the results we submit to you may become public record. This means our reputation stands on the quality of those results and the validity of our recommendations. This is why we have quality assurance protocols in place to safeguard the integrity of our data and analysis. • We will assign Certified Compensation Professionals and Analysts to review your market data and build your new pay structures. Our team understands that compensation analysis is both an art and a science. We have a strong cadre of trained and experienced professionals working together to ensure that appropriate and competitive pay structures are presented for consideration. 25 Proposed Contract Modifications Baker Tilly has reviewed the City's draft Professional Services Agreement included as Attachment B to the RFP. Except for the modifications identified below, Baker Tilly takes no exception to the City's form of Agreement. Final contract language will be mutually agreed upon by the parties. PSA Section Requested Modification Section 11 - Insurance Baker Tilly requests deletion of Sections 11.i(ii)–(iii), including the City's right to procure insurance at Consultant's expense and require complete copies of insurance policies. Baker Tilly requests that failure to maintain required insurance instead permit the City to terminate the Agreement. Baker Tilly also requests that references to endorsements providing the “exact same coverage” be revised to “equivalent coverage.” Section 12 – Indemnification and Limitation of Liability Baker Tilly requests that indemnification be limited to third-party claims arising from Baker Tilly's negligent acts, errors or omissions, or willful misconduct. Baker Tilly also requests an aggregate liability limitation of three times the fees paid under the Agreement and an exclusion of consequential, special, incidental, exemplary and punitive damages. Section 17 – Documents / Intellectual Property Baker Tilly requests clarification that the City will own project-specific deliverables upon payment, while Baker Tilly retains ownership of its pre- existing and reusable methodologies, tools, templates, systems, know- how and other Consultant Knowledge. The City would receive a perpetual license to Consultant Knowledge incorporated into the deliverables.