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Home My WebLink AboutItem E - Consulting Services AGENDA STAFF REPORT DATE: March 28, 2016 TO: Honorable Mayor and City Council THRU: Jill Ingram, City Manager FROM: Victoria L. Beatley, Director of Finance/City Treasurer SUBJECT: CLASSIFICATION AND COMPENSATION CONSULTING SERVICES SUMMARY OF REQUEST: That the City Council adopt Resolution No. 6629 approving a professional services agreement with Koff & Associates for Classification and Compensation Consulting Services for an amount not to exceed $79,500, and authorizing the City Manager to execute the agreement on behalf of the City. BACKGROUND: The City of Seal Beach last conducted a comprehensive classification and compensation study in 2008 using Creative Management Solutions, Inc. as an outside consultant. Internal classification reviews have been conducted on occasion and salaries have been adjusted as provided in negotiated bargaining agreements. In late 2014, a Request for Proposal (RFP) was released to solicit bids for Classification and Compensation Consulting Services. Seven RFP's were mailed out and several proposals were received. Proposals were reviewed and rated by the Assistant City Manager, Human Resources, and Finance. Based upon the ranking criteria, Koff and Associates was the top ranked consulting team. Koff and Associates has conducted hundreds of these types of studies over 30 years. The goal of the upcoming study is to conduct an objective job evaluation, classification review, and development of compensation for all positions and job classifications in order to make recommendations regarding the appropriateness, internal equity, and external competitiveness of the City's classification and compensations plans. When completed, the study findings will be presented to the City Council. Agenda Item E Page 2 ENVIRONMENTAL IMPACT: The approval of this administrative contract to perform a Classification and Compensation Study is not a project under the California Environmental Quality Act ("CEQA") because the item does not include any action that would make any physical change that might impact the environment. No environmental review is required. LEGAL ANALYSIS: The City Attorney has approved the professional services agreement and proposed resolution as to form. FINANCIAL IMPACT: Funds in the amount of $62,300 are available in account #001-019-44000, Non- departmental Contract Professional, in the Proposed FY 2015 — 2016 Budget. Since a component of the project will not begin until FY 2016 — 2017, the remaining funding required, $17,200 has been included in next year's budget. RECOMMENDATION: That the City Council adopt Resolution No. 6629 approving a professional services agreement with Koff & Associates for Classification and Compensation Consulting Services for an amount not to exceed $79,500 and authorizing the City Manager to execute the agreement on behalf of the City. SUBMITTED BY: NOTED AND APPROVED: • VA' L Victoria L. Beatley I b'. Ingram Director of Finance/City Treasurer City Manager Attachments: A. Professional Services Agreement B. Professional Services Agreement Cost Proposal Exhibit A C. Resolution No. 6629 Attachment "A" PROFESSIONAL SERVICES AGREEMENT Between •' F S B EAS `�� ff i*s ia's Qi 1 o) /?)",,,,5'0 6Fq 27 1g�=��: F ' City of Seal Beach 211 8th Street Seal Beach, CA 90740 Koff and Associates 2835 7th Street Berkeley, CA 94710 510.658.5633 This Professional Service Agreement ("the Agreement") is made as of March 28, 2016 (the "Effective Date"), by and between Koff and Associates ("Consultant"), a Corporation, and the City of Seal Beach ("City"), a California charter city, (collectively, "the Parties"). RECITALS A. City desires certain professional services. B. Consultant represents that it is qualified and able to provide City with such services. NOW THEREFORE, in consideration of the Parties' performance of the promises, covenants, and conditions stated herein, the Parties hereto agree as follows. AGREEMENT 1.0 Scope of Services 1.1. Consultant shall provide those services identified in Option 1 as set forth in the attached Exhibit A ("Services"), which is hereby incorporated by this reference. To the extent that there is any conflict between Exhibit A and this Agreement, this Agreement shall control. 1.2. Consultant shall perform all Services under this Agreement in accordance with the standard of care generally exercised by like professionals under similar circumstances and in a manner reasonably satisfactory to City. 1.3. In performing this Agreement, Consultant shall comply with all applicable provisions of federal, state, and local law. 1.4. Consultant will not be compensated for any work performed not specified in the Scope of Services unless the City authorizes such work in advance and in writing. The City Manger may authorize, in writing, extra work to fund unforeseen conditions up to the amount approved at the time of award by the City Council. Payment for additional work in excess of this amount shall require prior City Council authorization. 2.0 Term This term of this Agreement shall commence as of the Effective Date and shall continue for a term of one calendar year or until project completion and acceptance by the City, whichever is earlier, unless previously terminated as provided by this Agreement. The City Manager or her designee may extend the time for performance if necessary to complete the Services. 3.0 Consultant's Compensation City will pay Consultant in accordance with the hourly rates shown on the fee schedule set forth in Exhibit A for Services but in no event will the City pay more 2 of 9 than $79,500. Consultant agrees that the time and fees quoted in Exhibit A are sufficient to complete the Services in a manner consistent with reasonable professional standards in Consultant's industry. Any additional work authorized in writing by the City pursuant to Section 1.4 will be compensated in accordance with the hourly rate set forth in Exhibit A. 4.0 Method of Payment 4.1. Consultant shall submit to City monthly invoices for all services rendered pursuant to this Agreement. Such invoices shall be submitted within 15 days of the end of the month during which the services were rendered and shall describe in detail the services rendered during the period, the days worked, number of hours worked, the hourly rates charged, and the services performed for each day in the period. City will pay Consultant within 30 days of receiving Consultant's invoice. City will not withhold any applicable federal or state payroll and other required taxes, or other authorized deductions from payments made to Consultant. 4.2. Upon 24-hour notice from City, Consultant shall allow City or City's agents or representatives to inspect at Consultant's offices during reasonable business hours all records, invoices, time cards, cost control sheets and other records maintained by Consultant in connection with this Agreement. City's rights under this Section 4.2 shall survive for two years following the termination of this Agreement. 5.0 Termination 5.1. This Agreement may be terminated by City, without cause, or by Consultant based on reasonable cause, upon giving the other party written notice thereof not less than 30 days prior to the date of termination. 5.2. This Agreement may be terminated by City upon 10 days' notice to Consultant if Consultant fails to provide satisfactory evidence of renewal or replacement of comprehensive general liability insurance as required by this Agreement at least 20 days before the expiration date of the previous policy. 6.0 Party Representatives 6.1 . The City Manager is the City's representative for purposes of this Agreement. 6.2. Georg Kramer is the Consultant's primary representative for purposes of this Agreement. 3 of 9 7.0 Notices 7.1. All notices permitted or required under this Agreement shall be deemed made when personally delivered or when mailed 48 hours after deposit in the United States Mail, first class postage prepaid and addressed to the party at the following addresses: To City: City of Seal Beach 211 8th Street Seal Beach, California 90740 Attn: City Manager To Consultant: Koff and Associates 2835 7th Street Berkeley, California 94710 Attn: President 7.2. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 8.0 Independent Contractor 8.1 . Consultant is an independent contractor and not an employee of the City. All services provided pursuant to this Agreement shall be performed by Consultant or under its supervision. Consultant will determine the means, methods, and details of performing the services. Any additional personnel performing services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant's exclusive direction and control. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. 8.2. Consultant shall indemnify and hold harmless City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs and expenses of any nature to the extent arising from Consultant's personnel practices. City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant's failure to promptly pay to City any reimbursement or indemnification arising under this Section. 9.0 Subcontractors 4 of 9 No portion of this Agreement shall be subcontracted without the prior written approval of the City. Consultant is fully responsible to City for the performance of any and all subcontractors. 10.0 Assignment Consultant shall not assign or transfer any interest in this Agreement whether by assignment or novation, without the prior written consent of City. Any purported assignment without such consent shall be void and without effect. 11.0 Insurance 11.1. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to the City that Consultant has secured all insurance required under this Section. Consultant shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Agreement on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by the City if requested. All certificates and endorsements shall be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. 11.2. Consultant shall, at its expense, procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of this Agreement. Insurance is to be placed with insurers with a current A.M. Best's rating no less than A:VIII, licensed to do business in California, and satisfactory to the City. Coverage shall be at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001); (2) Automobile Liability: Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto); and, if required by the City, (3) Professional Liability. Consultant shall maintain limits no less than: (1) General Liability: $2,000,000 per occurrence for bodily injury, personal injury and property damage and if Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this Agreement/location or the general aggregate limit shall be twice the required occurrence limit; (2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (3) Professional Liability: $1,000,000 per claim/aggregate. 11.3. The insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms supplied or approved by the City to state: (1) coverage shall not be suspended, voided, reduced or canceled except after 30 days prior written notice by certified mail, return receipt 5 of 9 requested, has been given to the City; (2) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to the City, its directors, officials, officers, (3) coverage shall be primary insurance as respects the City, its directors, officials, officers, employees, agents and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Consultant's scheduled underlying coverage and that any insurance or self-insurance maintained by the City, its directors, officials, officers, employees, agents and volunteers shall be excess of the Consultant's insurance and shall not be called upon to contribute with it; (4) for general liability insurance, that the City, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insureds with respect to the services or operations performed by or on behalf of the Consultant, including materials, parts or equipment furnished in connection with such work; and (5) for automobile liability, that the City, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Consultant or for which the Consultant is responsible. 11.4. All insurance required by this Section shall contain standard separation of insureds provisions and shall not contain any special limitations on the scope of protection afforded to the City, its directors, officials, officers, employees, agents, and volunteers. 11.5. Any deductibles or self-insured retentions shall be declared to and approved by the City. Consultant guarantees that, at the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its directors, officials, officers, employees, agents, and volunteers; or (2) the Consultant shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses. 12.0 Indemnification, Hold Harmless, and Duty to Defend Consultant shall defend, indemnify, and hold the City, its officials, officers, employees, volunteers and agents serving as independent contractors in the role of city officials (collectively "Indemnitees") free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any acts or omissions of Consultant, its employees, or its agents in connection with the performance of this Agreement, including without limitation the payment of all consequential damages and attorneys' fees and other related costs and expenses, except for such loss or damage arising from the sole negligence or willful misconduct of the City. With respect to any and all such aforesaid suits, actions, or other legal proceedings of every kind that may be brought or instituted against Indemnitees, Consultant shall defend Indemnitees, at Consultant's own cost, expense, and risk, and shall 6 of 9 pay and satisfy any judgment, award, or decree that may be rendered against Indemnitees. Consultant shall reimburse City and its directors, officials, officers, employees, agents and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its directors, officials, officers, employees, agents or volunteers. All duties of Consultant under this Section shall survive termination of this Agreement. 13.0 Equal Opportunity Consultant affirmatively represents that it is an equal opportunity employer. Consultant shall not discriminate against any subcontractor, employee, or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex, sexual orientation, or age. Such non-discrimination includes, but is not limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, or termination. 14.0 Labor Certification By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code that require every employer to be insured against liability for Workers' Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services. 15.0 Entire Agreement This Agreement contains the entire agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings, or agreements. This Agreement may only be modified by a writing signed by both parties. 16.0 Severability The invalidity in whole or in part of any provisions of this Agreement shall not void or affect the validity of the other provisions of this Agreement. 17.0 Governing Law This Agreement shall be governed by and construed in accordance with the laws of the State of California. 7 of 9 18.0 No Third Party Rights No third party shall be deemed to have any rights hereunder against either party as a result of this Agreement. 19.0 Waiver No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a party shall give the other party any contractual rights by custom, estoppel, or otherwise. 20.0 Prohibited Interests; Conflict of Interest 20.1. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the Services, or which would conflict in any manner with the performance of the Services. Consultant further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, Consultant shall avoid the appearance of having any interest, which would conflict in any manner with the performance of the Services. Consultant shall not accept any employment or representation during the term of this Agreement which is or may likely make Consultant "financially interested" (as provided in California Government Code §§1090 and 87100) in any decision made by City on any matter in connection with which Consultant has been retained. 20.2. Consultant further warrants and maintains that it has not employed or retained any person or entity, other than a bona fide employee working exclusively for Consultant, to solicit or obtain this Agreement. Nor has Consultant paid or agreed to pay any person or entity, other than a bona fide employee working exclusively for Consultant, any fee, commission, gift, percentage, or any other consideration contingent upon the execution of this Agreement. Upon any breach or violation of this warranty, City shall have the right, at its sole and absolute discretion, to terminate this Agreement without further liability, or to deduct from any sums payable to Consultant hereunder the full amount or value of any such fee, commission, percentage or gift. 20.3. Consultant warrants and maintains that it has no knowledge that any officer or employee of City has any interest, whether contractual, non- contractual, financial, proprietary, or otherwise, in this transaction or in the business of Consultant, and that if any such interest comes to the knowledge of Consultant at any time during the term of this Agreement, Consultant shall immediately make a complete, written disclosure of such interest to City, even if such interest would not be deemed a prohibited "conflict of interest" under applicable laws as described in this subsection. 8 of 9 21.0 Attorneys' Fees If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party all of its attorneys' fees and other costs incurred in connection therewith. 22.0 Exhibits All exhibits referenced in this Agreement are hereby incorporated into the Agreement as if set forth in full herein. In the event of any material discrepancy between the terms of any exhibit so incorporated and the terms of this Agreement, the terms of this Agreement shall control. 23.0 Corporate Authority The person executing this Agreement on behalf of Consultant warrants that he or she is duly authorized to execute this Agreement on behalf of said Party and that by his or her execution, the Consultant is formally bound to the provisions of this Agreement. IN WITNESS WHEREOF, the Parties hereto, through their respective authorized representatives have executed this Agreement as of the date and year first above written. CITY OF SEAL BEACH CONSULTANT By: By: Jill R. Ingram, City Manager Name: Attest: Its: By: By: Robin L. Roberts, City Clerk Name: Approved as to Form: Its: By: Craig A. Steele, City Attorney 9 of 9 Attachment "B" �cc Classification and Compensation Consulting Services Updated Cost Proposal March 16 , 2016 City of Seal Beach Koff & Associates Chief Executive Officer 2835 7th Street Berkeley, CA 94710 www.koffassociates.com E: gkrammer @koffassociates.com P: 510.658.5633 T: 800.514.5195 F: 510.652.5633 1<1 Classification and Compensation Study Proposal City of Seal Beach Proposed Cost Miscellaneous Employees PHASE I: Classification Study Hours A. Initial Document Review/Meetings with Study Project Team and HR/ 8 Management Staff B. Orientation Meetings with Employees and Distribution of PDQ 12 C. Position Description Questionnaire Completion & Review 26 Option 1: One individual PDQ per employee (approx. 95) Option 2: One PDQ per classification plus 20%of employees submitting individual PDQs(approx. 70) D. Employee/Supervisor/Management Interviews 60 Option 1: One individual interview per employee Option 2: One group interview per classification plus individual interviews for 20%of employees E. Classification Concept/Preliminary Allocation Development 26 F. Draft Class Description Development/Update (approximately 50 classifications) 125 G. Draft Class Description Review/Informal Appeal Process 26 H. Finalize Classification Plan/Draft Interim Report/Final Report 14 Total Professional Hours 297 Combined professional and clerical composite rate:$125/Hour $37,125 Hours A. Identify Comparator Agencies, Benchmark Classifications, and Benefits to Be 10 Collected B. Compensation Data Collection 64 Option 1:36 benchmarks, 12 comparator agencies Option 2:32 benchmarks, 10 comparator agencies C. Analysis and Preliminary Data Review 32 Option 1:36 benchmarks, 12 comparator agencies Option 2:32 benchmarks, 10 comparator agencies D. Draft Compensation Findings/Additional Analysis/Project Team Meeting 22 E. Internal Relationship Analysis/Internal Alignment 8 F. Salary Structure Recommendation and Implementation Plan Development 10 G. Development of Draft Final and Final Report and Deliverables 14 2835 7th Street, Berkeley, California 94710,510.658.5633, Fax 510.652.5633,www.KoffAssociates.com s Classification and Compensation Study Proposal City of Seal Beach H. Formal Appeal Process * 0 I. Final Presentation to the Project Team and City Council 8 Additional meetings with study Project Team, employees, and/or other 8 stakeholders Total Professional Hours 176 Combined professional and clerical composite rate: $125/Hour $22,000 Expenses(included in the professional fee): N/A Expenses include but are not limited to duplicating documents, binding reports, phone,fax,supplies, postage, air fare, rental cars, hotels,travel time, per diem, etc. TOTAL LUMP SUM FOR PROJECT NOT TO EXCEED: $59,125 *Additional consulting will be honored at composite rate ($125) Safety Employees Hours A. Initial Document Review/Meetings with Study Project Team and HR/Management 4 Staff B. Orientation Meetings with Employees and Distribution of PDQ 4 C. Position Description Questionnaire Completion & Review 5 D. Employee/Supervisor/Management Interviews 12 E. Classification Concept/Preliminary Allocation Development 4 F. Draft Class Description Development/Update (approximately 10 classifications) 25 G. Draft Class Description Review/Informal Appeal Process 5 H. Finalize Classification Plan/Draft Interim Report/Final Report 8 Total Professional Hours 67 Combined professional and clerical composite rate:$125/Hour $8,375 !l: Compensation Hours A. Identify Comparator Agencies, Benchmark Classifications, and Benefits to Be 2 2835 7th Street, Berkeley,California 94710,510.658.5633,Pax 51.0.652.5633,www.KottAssociates.com 1(1 Classification and Compensation Study Proposal City of Seal Beach Collected (we assume the same comparator agencies would be used for safety employees) B. Compensation Data Collection (approx. 7 benchmarks, 10-12 comparators) 15 C. Analysis and Preliminary Data Review 10 D. Draft Compensation Findings/Additional Analysis/Project Team Meeting 8 E. Internal Relationship Analysis/Internal Alignment 3 F. Salary Structure Recommendation and Implementation Plan Development 5 G. Development of Draft Final and Final Report and Deliverables 8 H. Formal Appeal Process * 0 I. Final Presentation to the Project Team and City Council 8 Additional meetings with study Project Team, employees, and/or other 3 stakeholders Total Professional Hours 62 Combined professional and clerical composite rate: $125/Hour $7,750 Expenses (included in the professional fee): N/A Expenses include but are not limited to duplicating documents, binding reports, phone,fax,supplies, postage, air fare, rental cars, hotels,travel time, per diem, etc. TOTAL LUMP SUM FOR PROJECT NOT TO EXCEED: $16,125 *Additional consulting will be honored at composite rate ($125) 2835 7th Street, Berkeley,California 94710, 510.658.5633, Fax 510.652.5633,www.KoffAssociates.com Attachment "C" RESOLUTION NUMBER 6629 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING A PROFESSIONAL SERVICES AGREEMENT FOR CLASSIFICATION AND COMPENSATION CONSULTING SERVICES THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. The City Council hereby approves the professional services agreement ("Agreement") between the City of Seal Beach and Koff & Associates for Classification and Compensation Consulting Services in the amount of $79,500. Section 2. The Council hereby directs the City Manager to execute the Agreement. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 28th day of March, 2016 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Sandra Massa-Lavitt, Mayor ATTEST: Robin L. Roberts, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Robin L. Roberts, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution Number 6629 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 28th day of March, 2016. Robin L. Roberts, City Clerk