HomeMy WebLinkAboutCC AG PKT 2008-10-13 #FAGENDA STAFF REPORT
DATE: October 13, 2008
TO: Honorable Mayor and City Council
THRU: David N. Carmany, City Manager.
FROM: Patrick Importuna, Interim Assistant City Manager
Prepared by: Andrew J. Tse, Acting Personnel Manager
SUBJECT: APPROVAL OF PROFESSIONAL SERVICES
AGREEMENT -CREATIVE MANAGEMENT
SOLUTIONS, INC.
SUMMARY OF REQUEST:
The purpose of this report is to request City Council approval of the professional
services agreement between the City of Seal Beach and Creative Management
Solutions, Inc. and authorize the City Manager to execute the agreement.
BACKGROUND:
During the City Council meeting of July 14, 2008, the City Council gave direction
to staff to conduct a Request for Proposal (RFP) to secure a consultant to
conduct a classification and compensation study to evaluate the City's job
position classification plan, compensation plan, the internal equity method for
linking the plans; and the studying of labor market data to gauge the City's
relative competitiveness with respect to the labor market.
The City of Seal Beach last conducted a comprehensive classification and
compensation study in the late 1990s using Ralph Andersen and Associates as
an outside consultant. Internal classification reviews have been conducted on
occasion and salaries have been adjusted as provided in negotiated bargaining
agreements.
The RFP was advertised in the Sun Newspaper and copies of the request were
also sent to thirty-four (34) firms in the classification and compensation study
field. The City received responses from four (4) firms. After careful evaluation by
staff, it is recommended that Creative Management Solution, Inc. be selected to
conduct the study. Creative Management Solutions Inc. has the most experience
and ~ knowledge of the Orange County job market. In addition, Creative
Agenda Item F
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Management Solutions Inc. appeared to be the most cost effective as compared
to other submitters.
FINANCIAL IMPACT:
The fiscal impact for the comprehensive study is projected to be $27,040, which
is at a cost savings from the City Council authorized threshold of $60,000.
RECOMMENDATION:
It is recommended that the City Council adopt Resolution No. 5787 approving the
professional services agreement between the City of Seal Beach and Creative
Management Solution, Inc. and authorizing the City Manager to execute the
agreement.
SUBMITTED BY:
Patrick Importuna,
Interim Assistant City Manager
NOTED AND APPROVED:
~-s ~
David N. Carmany, City Manager
Attachments:
A. Resolution No. 5787
B. Creative Management Solutions, Inc. -Agreement & Proposal
RESOLUTION NUMBER 5787
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL
BEACH, CALIFORNIA APPROVING THE PROFESSIONAL
SERVICES AGREEMENT BETWEEN THE CITY OF SEAL
BEACH AND CREATIVE MANAGEMENT SOLUTIONS INC.
WHEREAS, a solid classification and compensation plan is the foundation of the
City's personnel system; and
WHEREAS, the City last conducted a comprehensive classification and
compensation study in 1999; and
WHEREAS, a classification and compensation study will ensure that employees
are properly classified for work performed, and that compensation paid reflects
the comparative norm; and
WHEREAS, implementation of a classification and compensation study will help
the City stay competitive in the Orange County job market.
WHEREAS, Creative Management Solution, Inc has been selected through the
Request for Proposal (RFP) process as the firm to conduct the study.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH
DOES HEREBY RESOLVE:
SECTION 1. The agreement is hereby approved.
SECTION 2. The City Manager is authorized to execute the agreement.
PASSED, APPROVED AND ADOPTED by the City Council of Seal Beach, at a
meeting hereof held on the 13th day of October , 2008 by the following vote:
AYES: COUNCILMEMBERS
NOES: COUNCILMEMBERS
ABSENT: COUNCILMEMBERS
ABSTAIN: COUNCILMEMBERS
ATTEST:
Mayor
City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Linda Devine, City Clerk of Seal Beach, California, do hereby certify that the
foregoing resolution is the original copy of Resolution Number 5787 on file in
the office of the City Clerk, passed, approved, and adopted by the City Council of
the City of Seal Beach, at a regular meeting thereof held on the 13th day
of October , 2008
City Clerk
PROFESSIONAL SERVICES AGREEMENT
between
City of Seal Beach
211 - 8th Street
Seal Beach, CA 90740
Creative Management Solutions, Inc.
8205 East Somerset Lane
Anaheim, CA 92808-2135
(714) 281-73 00
This Professional Service Agreement ("the Agreement") is made as of October 13, 2008 (the
"Effective Date"), by and between Creative Management Solutions, Inc. ("Consultant"), a
California 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 must provide those services ("Services") set forth in the attached
Exhibit A, which is hereby incorporated by this reference. To the extent that there is any conflict
between the Exhibit A and this Agreement, this Agreement must control.
1.2. Consultant must perform all Services under this Agreement in accordance with
the standard of caze generally exercised by like professionals under similaz circumstances and in
a manner reasonably satisfactory to Authority.
1.3. In performing this Agreement, Consultant must 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
Manager may authorize payment for such work up to a cumulative maximum of $10,000.
Payment for additional work in excess of $10,000 requires prior City Council authorization.
2.0 Term
This term of this Agreement shall commence as of the Effective Date and shall continue
until Consultant completes the Services to the City's satisfaction, unless previously terminated as
provided by this Agreement.
3.0 Consultant's Compensation
City will pay Consultant in accordance with the fee schedule set forth in Exhibit A for
Services, but in no event will the City pay more than $27,040. Any additional work authorized
by the City pursuant to Section 1.4 will be compensated in accordance with the rate schedule set
forth in Exhibit A.
4.0 Method of Payment
4.1. Consultant must submit to City monthly invoices for all services rendered
pursuant to his Agreement. Such invoices must be submitted within 15 days of the end of the
month during which the services were rendered and must describe in detail the services rendered
during the period, the days worked, number of hours worked, the hourly rates chazged, and the
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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 hours notice from City, Consultant must allow City or City's agents or
representatives to inspect at Consultant's offices during reasonable business hours all records,
invoices, time cazds, 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 yeazs
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 parry written notice thereof not less than thirty
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. Barry Newton is the Consultant's sole representative for purposes of this
Agreement.
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 U.S. Mail, first class
postage prepaid and addressed to the party at the following addresses:
To City: City of Seal. Beach
911 Seal Beach Boulevard
Seal Beach, California 90740
Attn: City. Manager
To Consultant: Creative Management Solutions, Inc.
8205 East Somerset Lane
Anaheim, CA 92808-2135
Attn: Barry Newton
7.2. Actual notice shall be deemed adequate notice on the date actual notice occurred,
regazdless of the method of service.
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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 and employees, servants, designated volunteers, and agents serving as independent
contractors in the role of city or agency officials, from any and all liability, damages, claims,
costs and expenses of any nature to the extent arising from Consultant's alleged violations of
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 5.
9.0 Subcontractors
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 must 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 must 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 must 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 must be signed by a person authorized by that
insurer to bind coverage on its behalf, and must be on forms provided by the City if requested.
All certificates and endorsements must 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 must, 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
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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 must 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); and (2) Automobile Liability: Insurance Services Office
Business Auto Coverage form number CA 0001, code 1 (any auto). Consultant must maintain
limits no less than: (1) General Liability: $1,000,000 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
Agreementllocation or the general aggregate limit shall be twice the required occurrence limit;
and (2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage.
12.0 Indemnification, Hold Harmless, and Duty to Defend
Consultant must indemnify, and hold the City, its officials, officers, employees,
volunteers and agents (collectively "Indemnities") 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. 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 must defend Indemnitees, at Consultant's own cost, expense, and risk,
and must pay and satisfy any judgment, award, or decree that may be rendered against
Indemnitees. Consultant must 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 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
must 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 be 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 Worker's 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.
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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.
18.0 No Third Party Rights
No third parry 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 Parry any contractual rights by custom,
estoppel, or otherwise.
20.0 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 has
the right to rescind this Agreement without liability. For the term of this Agreement, no
member, 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.
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 Parry in such
litigation shall be entitled to have and recover from the losing Party all of its attorney's fees and
other costs incurred in connection with such action.
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22.0 Exhibits
All exhibits referenced in this Agreement aze hereby incorporated into the Agreement as
if set forth in full herein. In the even 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.
IN WITNESS WHEREOF, the Parties hereto, through their respective authorized
representatives have executed this Agreement as of the date and yeaz first above written.
CITY OF SEAL BEACH
By:
David Carmany, City Manager
CONSULTANT
By: a,,.,., C ~.
Name: Barry C. Newton
Attest:
By:
Linda Devine, City Clerk
Approved as to Form:
Its: Managing Director
By:
Name:
By:
Quinn Barrow, City Attorney
Its:
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EXHIBIT A
Work Proposal, Dated September 24, 2008
September 24, 2008
City of Seal Beach
City Clerk's Office
211 8~' Street
Seal Beach, CA 90740
Attention: Patrick Importune, Assistant City Manager
A. City-Wide Classification and Com ensation Stud
Proposal Requirements A and B:
Deaz Mr. Importune:
Thank you for providing us with the opportunity to present our proposal to conduct a
Classification and Compensation Study for the City of Seal Beach. We appreciated your efforts to
cleazly identify the City's goals within the Request for Proposal and Pre-Proposal Conference
eazlier this week and we are committed to this process.
This program will afford the opportunity to validate the City's mazket positioning with
agencies that aze part of an approved labor mazket definition and to consider total compensation
practices. The work plan provides for the analysis of current job descriptions and internal job
evaluation factors in order to establish appropriate job classifications and range assignments. Using
an independent consultant will facilitate an effective planning process while achieving greater
consensus regazding the study outcomes.
We look forward to the opportunity to work with the City on this critical project.
I can be reached at (714) 281-7300 if you should have any questions. Our fax number is (714) 281-
3149 and you can also contact me directly via a-mail at barrycros@adelphia.net.
Sincerely,
Barry C. Newton, CCP and Managing Director
Creative Management Solutions, Inc. (CMS)
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City of Seal Beach Classification and Compensation Study: CMS Work Agreement: 09/24/08
A. PROJECT 6NTRODUCTION
The City of Seal Beach is a Charter City located in coastal Orange County, and situated
between Long Beach and Huntington Beach between two major counties. The City has retained
a quaint small-town atmosphere while serving a population of over 24,000 residents under a
Council-Manager form of government. An appointed City Manager is responsible to the City
Council for the proper management of eight departments and annual budget of approximately
$23 million.
The City is seeking an independent total compensation analysis of its 47 regular full-time
jobs classifications. The study will entail a job analysis of these positions to establish appropriate
classifications, including essential functions, qualifications and modification of its job descriptions to
depict current job functions, qualifications guidelines, and physical standards. The Consultant will
be asked to present recommendations concerning the labor market definition and total
compensation elements as part of the process. The total compensation analysis will include the
collection and presentation of market data, using approved benchmarks, and the presentation of
oral and written recommendations related to the City's program. The work will be coordinated with
the City Manager's Office, and designated parties, and will include planning and orientation
meetings and the documentation of classification and compensation procedures.
This program is designed to achieve a number of important goals. First, the City will
have current and representative classification specifications that can be used for recruitment,
selection, training, and performance appraisal purposes, and will achieve conformance with
ADA Guidelines. Second, appropriate survey benchmark jobs will be identified that will
maximize the number of valid survey matches that can be drawn from the marketplace. Third,
internal salary relationships charts will be available for establishing appropriate differentials for
the City's classifications and recognizing the value of more unique job classifications. Fourth,
the City's five-step pay structure will be evaluated to achieve an appropriate balance between
market rates and internal job value. Fifth, the City's benefit practices will be analyzed in relation
to the marketplace to determine the extent to which the benefit elements and employer
contributions are consistent with the labor market. Finally, the fiscal impact of proposed changes
will be estimated as well as a proposed timeline for the implementation of study
recommendations given consideration of the City's financial resources and labor practices.
In short, the work plan is designed to respond to the objectives outlined in the City's RFP
and information that was presented in the Pre-Proposal Conference. Requirements C through I
have been addressed in the remaining pages of this proposal and report copies.
Creative Management Solutions, Inc. (CMS) 1
City of Seal Beach Classification and Compensation Study: CMS Work Agreement: 09/24/08
B. ~®RK PLAN
I. Phase One: Project Planning and Communications
Initiate project planning meetings with the Assistant City Manager and designated
management personnel, and brief employee representatives as to the goals of the study
and work plan.
2. Collect and review organizational and background materials, including the City's existing
class specifications, salary resolutions related to different bargaining units, Personnel
Rules, memorandums of understanding, and benefit summaries in order to develop a more
complete understanding of the can-ent total compensation plan, and to establish the City's
labor market definition and factors to be evaluated in the survey.
3. Discuss job analysis procedures for reviewing the position description questionnaires and
classification recommendations, and create employee and management appeals process.
4. Draft communications letter to introduce the study goals, work plan, and timeline for the
study; consider Intranet and web-based applications for accessing study forms.
5. Conduct four orientation meetings with employees on scheduled date to provide overview
of study and to explain how to complete the position questionnaires.
II. Phase Two: Job Analysis and Employee Interviews
Review completed position description questionnaires and prepare follow-up inquiries for
interviews with employees and supervisors; use City-provided records to verify status of
received questionnaires.
2. Conduct interviews with managers, supervisors, and at least one employee in each of the
City's job classifications; multiple incumbents may be interviewed at the same time in the
same job classification for highly populated jobs.
3. Obtain work documents as needed to clarify employee responsibilities and job
requirements; use related fact-finding techniques to establish job requirements, including
physical standards.
4. Provide periodic status report to address major progress, as requested.
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III. Phase Three: Development of Draft Class Specifications
1. Submit draft model class specification to show organization and format to be used for
remaining jobs.
2. Write class specifications by studying position questionnaires, interview notes, organization
charts, and related City documents.
3. Depict job identification information, distinguishing characteristics, essential functions, and
qualifications, as well as physical standards.
4. Review and update preliminary class specifications to achieve greater consistency in
experience, education, and certification requirements by occupational grouping and job
level.
5. Determine benchmark job classifications that will be part of compensation analysis.
IV. Phase Four- Presentation of Classification Plan and consideration
of Management and Employee Appeals
1. Develop classification study analysis, including the job classifications by family and
occupational grouping, and prepare Classification Maintenance Manual and Guidelines.
2. Recommend assignment of each position to the appropriate classification on the basis of
position description questionnaires, interviews, and supporting data.
3. Presented update class specifications for review by City Manager's Office.
4. Consider and address management and employee concerns related to the
recommendations using approved procedures.
5. Provide periodic status report to address major progress, as requested.
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City of Seal Beach Ciass~cation and Compensation Study: CMS Work Agreement: 09/24/08
V. Phase Five- Market Compensation Analysis
Contact survey participants to assure that valid data has been presented; address
questions concerning benchmark job matches, salary plans, and benefit practices.
2. Present separate salary comparisons for each benchmark classification, based upon at
least four benchmark job classifications, in relation to the prevailing market rate, given
earlier planning discussions.
3. Conduct analysis of premium pay, health and welfare, paid time off, and long-term
income contributions and present City's practices in relation to the market.
4. Show City's market positioning by job classification and occupational grouping.
5. Present study results related to the City's total compensation positioning, when
accounting for salary and benefits plans.
VI. Phase Six: Job Evaluation and Setting of Internal Salary
Relationships
1. Establish the City's compensable job evaluation factors, definitions, and levels, in
conformance with the provisions of the Equal Pay Act, based on the Seal Beach
classifications, and considering skill, mental effort, responsibility, and working conditions,
and recognizing changes in ADA and FMLA regulations, as well as OSHA standards.
2. Evaluate each job in order to establish internal hierarchy of classifications, using whole job
method, factor comparison method, or point factor method of job evaluation, given prior
management approval, and based upon factors such as scope and impact of
responsibilities, knowledge, interfaces, supervision exercised and received, budgetary
authority, and working conditions, as identified in the Class cation Plan.
3. Develop internal salary relationships charts to depict appropriate differentials between
class cations in job families, occupational groupings, and departments, so as to avoid and
correct potential pay compaction issues.
4. Prepare and present guidelines associated with proper salary range differentials between
classifications that can be used for future comparisons, including benchmark jobs and
directly related jobs; explain other criteria related to job evaluation factors and staffing
levels to help distinguish separations in jobs.
5. Provide periodic status report to address major progress, as requested.
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City of Seal Beach Classification and Compensation Study: CMS Work Agreement: 09/24/08
VII. Phase Seven: Salary Range Recommendations and Cost Impact
Analysis
Evaluate market survey rates in accordance with the City's target compensation rates and
intemal job value.
2. Analyze City's current pay structure design which contains five-step plan and five percent
differentials between grades; utilize existing structure or recommend modifications to
improve alignment with City's classification plan, job families, and market practices.
3. Assign jobs to salary ranges based upon results of intemal job evaluation and market
analysis. .
4. Identify internal pay equity and compression issues, and recommend strategies to resolve
compaction issues or to address pay rates not falling with pay ranges; consider placement
in new ranges while validating the applicability of the City's Personnel Rules or past
bargaining practices.
5. Prepare master Position Allocation Summary by employee name, job classification, and
current and proposed pay range allocation, using City's personnel and payroll records.
6. Conduct cost analysis of current and proposed salary ranges, equity adjustments, and
position within new range, including timetable and methods for enacting pay adjustments.
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VIII. Phase Eight: Preliminary and Final Classification and
Compensation Plan Reports
Compile and submit Preliminary Class cation and Compensation Report for review by
management representatives, containing study background, findings, and
recommendations, as well as study tables and supporting exhibits.
2. Develop and present Compensation Plan Implementation and Maintenance Guidelines for
reclassification requests, pay structure updates, and related actions.
3. Consider and respond to questions related to specific classification changes and the
implementation of revisions to compensation and/or benefit program practices from
management and employees as part of the review process.
4. Analyze and respond to employee and management concerns, including potential appeals,
and explain rationale for study recommendations in digest format.
5. Prepare updated Classification and Report to incorporate any staffing changes and review
with City Manager's Office to address relevant information that may be needed in
presenting the study results to the City Council.
6. Develop and present Final Classification and Compensation Report to the City Manager
and members of the City Council and submit software files for archiving and future use.
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C. PR®JECT TIMELINE
Work Phase Task Descri tion
Classification Phase
I Classification and Compensation: Project Planning, Introductory
Communications, and Orientation Sessions; Creation of Total Compensation
Elements and Benchmarkin Process
II Classification: Job Analysis and Employee Interviews as Part of Classification
Stud
III Classification: Develo ment of Draft Class S ecifications
IV Classification: Presentation of Preliminary Classification Analysis; Review and
Editin of Class S cifications; Review of Potential Classification A eats
Com ensation Phase
V Com ensation: Com letion of Market Total Com ensation Anal sis
VI Compensation: Internal Job Evaluation and Establishment of Appropriate
Sala Relationshi s
VII Com ensation: Sala Ran a Recommendations and Cost Im act Anal sis
VIII Stud Actions: Prelimina and Final Classification and Com ensation Re orts
Pro'ect Phase Weeks and Months of Com letion
I Second, Third, and Fourth Weeks of October
II First and Second Weeks of November
III Third and Fourth Weeks of November
IV First and Second Weeks of December
V Third and Fourth Weeks of December
VI First Week of Janua
VII Second Week of Janua
VIII Third and Fourth Weeks of Janua
Creative Management Solutions, inc. (CMS)
City of Seal Beach Classification and Compensation Study: CMS Work Agreement: 09/24/08
D. PROJECT FEES AND AD~IIINISTRATlON
The above services can be provided at a total cost not to exceed $27,040, based upon the
required elements presented in this plan, including all telephone, labor,~travel, administrative and
minor reproduction and material expenses. The incidental non-labor costs have been included
within the hourly rate of $130 per hour. If separated by staff member, the hourly rate structure
would be $150 per hour for the Managing Director and $100 per hour for the Consultants.
Total estimated work hours for ro'ect = 208
Mana in Director- 60% of total hours 125 = $18,740
Consultants- 40% of total hours 83 = $8,300
Work will be billed at the completion of each phase, based on work completed to date for
the tasks associated with each phase. The scope of the work and project timeline provided can be
modified at the mutual consent of the City of Seal Beach and the Consultant, and the types of
services performed and costs can be adjusted as well.
The payment schedule in relation to the total project cost is presented as follows: Phase I-
10%, Phase II-15%, Phase III- 20%, Phase IV-10%, Phase V-15%, Phase VI-10%, Phase VII-
10%, and Phase VIII-10%. Payment is due within 30 days of the receipt of each invoice. Three
copies of this agreement, including the hourly rate schedule, are being submitted to the City.
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City of Seal Beach Classification and Compensation Study: CMS Work Agreement: 09/24/08
a. Creative Management Solutions, Inc. is a California Corporation that specializes in classification,
compensation and performance management services. The staff consists of four employees, with
operations centered in Anaheim, California. The organization has been in business since 1989 and
was originally founded as a sole proprietorship. The firm has served over 150 clients in the public,
private and non-profit sectors. The firm has conducted similar studies for over 60 cities such as
Anaheim, Brea, Buena Park, Colton, Corona, Covina, EI Monte, Huntington Beach, Lake Forest,
Long Beach, Los Alamitos, Mission Viejo, Newport Beach, Orange, Palo Alto, Paso Robles, San
Clemente, San Dimas, San Jose, Santa Ana, Santa Maria, Stanton, Tustin, Vista, Whittier, and
Yorba Linda.
Examples of recent projects related to the assignment are as follows:
City of Aliso Vieio- City-wide Classification Study, 2007.
City of Anaheim- Management Unit Compensation Study, 2000. Planning Department Studies, 2001
and 2008.
City of Brea- selected Classification and Compensation Analyses, 1992-2007.
City of Buena Park- selected Classification and Compensation Analyses and City-Wide Classification
Review, 1989-2008.
Citv of Corona- Citywide Classification and Compensation Study, 2001-2002.
Citv of Lake Forest- Class, Compensation and Benefits Studies, 2001, 2002, 2003, 2004, and 2008.
City of Los Alamitos- Management and Separate Unit Compensation Studies, 2004-2008.
City of Rancho Cucamonga- Selected Classification and Compensation Analyses, 2001- 2008.
City of San Dimas- City-wide Classification and Compensation Study, 2002 and 2006.
City_of Stanton- Classification and Compensation Anatyses,1999-2005, Citywide study, 2006.
City of Vista- Classification and compensation analysis of selected positions, 2003-2006.
Riverside Countv Transportation Commission- Agency Classification and Compensation Studies-
1999, 2001, 2003, 2005, and 2007.
Transportation Corridor Agencies- Agency wide and individual Classification and Compensation
Studies, 1999-2008.
c. The Consultant shall provide evidence of insurability, including Automotive, Workers' Compensation,
General Liability, and Errors and Omissions Insurance in an amount not less than $1 million. The
Consultant shall satisfy the City's requirements related indemnification, and avoidance of conflicts of
interest.
Creative Management Solutions, Inc. (CMS) 9
City of Seal Beach Classfication and Compensation Study: CMS Work Agreement: 09/24/08
d. Additional Proaosal Data: Recent References
City of Lake Forest
Marsha Davis, Human Resources Manager
25550 CommerCentre Drive
Lake Forest, CA 92630
(949) 461-3455
mdavis@ci.lakeforest. ca. us
City of Placentia
Steve Pischel, Director of Administrative Services
401 E. Chapman Avenue
Placentia, CA 92870
(714) 993-8141
spischel@placentia.org
City of Rancho Cucamonga
George Rivera, Human Resources OfFcer
10500 Civic Center Drive
P.O. Box 807
Rancho Cucamonga, CA 91729
(909) 477-2700
George. Rivera@cityofrc. us
Creaflve Management Solutions, Inc. (CMS) ~ ~
City of Seal Beach Classification and Compensation Study: CMS Work Agreement: 09l24I08
e. As the chart indicates on the next page, Bany Newton will serve as Project Manager and
Senior Consultant. Any of the employees that are shown in the resumes may be asked to
assist with the study in order to better meet the City's needs and project timelines. Bany
Newton will be at all planning and presentation meetings, evaluate the job descriptions,
market salary data, internal salary relationships, pay structures, and total compensation
plan contributions, and make recommendations for consideration by the City and its
Associations. Mr. Newton will also be responsible for supervising and coordinating any
tasks completed with the assistance of CMS staff. All CMS employees are cross-trained
to perform a variety of compensation tasks.
PROJECT WORK TEAM
Barry Newton
Mana in Director Project Mana er/Senior Consultant
~T ~F Ty
Cindy Harary Larisa Cole
Consultant Consultant
Role of Project Manager- Directs, coordinates, and participates in all project phases and
tasks and coordinates work of consulting staff. Acts as primary client relationship
manager. Role of Consultants- Participate in completion of project tasks and coordinate
the collection and evaluation of information.
The estimated allocation of work hours on the project wil{ be as follows:
Barry Newton, Project Manager: 60%
Cindy Harary, Consultant: 20%
Larisa Cole, Consultant: 20%
Total =100%
g. None of the work on this project will be performed by sub-contractors. All of the study work
will be performed by employees of Creative Management Solutions, Inc., whose resumes
have been presented.
Creative Management Solutions, Inc. (CMS) 11
City of Seal Beach Classification and Compensation Study: CMS Work Agreement: 09/24/08
SUMMARY OF QUALIFICATIONS:
BARRY C. NEWTON, CCP, MANAGING DIRECTOR
CREATIVE IVIANAGEIVIENT SOLUTIONS, INC. (CMS)
As founder of Creative Management Solutions, Inc., Mr. Newton specializes in
organization design, compensation management and performance assessment systems. Mr.
Newton, and other associates of the firm, develop and implement customized plans, strategies
and training programs for a diverse range of clients. The firm was originated in 1989 and has
served over 150 clients in the private, public and non-profit sectors since that time.
Mr. Newton has a broad variety of corporate, administrative and consulting experience,
including human resources management and compensation specialist positions with General
Dynamics Corporation, Hay Management Consultants, California Institute of Technology and
the Los Angeles Metropolitan Transportation Authority.
As a human resources consultant with over 30 years of experience in the field, Mr.
Newton has worked with a diverse range of private and public sector clients. Examples of
private sector clients include Behr Process Corporation, Kingston Technology, Epicor
Corporation, Knott's Berry Farm, Kwikset Corporation, Matria Healthcare, McCaw, Inc., National
Bank of Southern California, National Education Corporation, Princess Cruises, Ricoh
Electronics, Inc., and ViewSonic Corporation.
Illustrations of public and non-profit sector clients have included over 60 cities, including
major cities such as Anaheim, Long Beach, Palo Alto and San Jose, and coastal communities
such as Encinitas, Huntington Beach, Newport Beach, and San Clemente, and smaller cities
such as La Palma, Los Alamitos, and Stanton. Mr. Newton has worked with the Riverside
County Transportation Commission, Transportation Corridor Agencies, Orange County
Sanitation District, Califomia State University at Fullerton, Goodwill Industries of Orange
County, Orange County Head Start, and the Orange County Performing Arts Center. He serves
as the Administrator for CaIPACS, the on-line compensation and benefits database representing
over 130 agencies in California.
Mr. Newton holds a Master's degree with a specialization in management from the
University of Southern California and a Bachelor's degree in the behavioral sciences from the
University of California, Berkeley. He is a Certified Compensation Professional (CCP) as
designated by the World At Work (formerly known as the American Compensation Association).
He has been an instructor in Compensation Administration, Performance Appraisal and Human
Resources Management classes at the U.C. Irvine and U.C. Riverside Extension Programs for
over 20 years. He has also served as a guest lecturer in the human resources practices with
the Employers Group, CaIPELRA, PIHRA, SCPMA, and various professional organizations.
Cnaative Management Solutions, Inc. (CMSJ 12
City of Seal Beach Classification and Compensation Study: CMS Work Agreement: 09/24/08
SUMMARY OF QUAL/F/CAT/ONS:
LAR/SA J. COLE, CONSULTANT
CREATIVE MANAGEMENT SOLUTIONS, INC. (CMS)
Ms. Cole has acquired over 15 years of professional and technical experience as a
Compensation Specialist with PacifiCare Health Systems and Pacific Life Insurance
Company and Consultant with CMS. She has a wide range of human resources
experience in administering classification, compensation, benefits, and performance
appraisal programs, and incentive programs. She has also worked closely with all levels
of employees and management in supporting organizational pay strategies and policies.
She has conducted job analyses, coordinated and conducted oral interviews,
drafted and revised class specifications, and completed and administered compensation
and benefits surveys. Ms. Cole has researched incentive plans for manufacturing, health
care and service industry applications and coordinated executive level annual focal
performance review processes. She has also conducted executive compensation and total
compensation surveys and administered deferred compensation plans. She has prepared
and delivered a broad range of management reports and presentations.
Ms. Cole has assisted CMS with a variety of different classification, compensation,
and performance evaluation programs with local governments, educational institutions,
and special districts such as the Cities of Anaheim, Corona, EI Monte, Lake Forest,
Mission Viejo, Palo Alto, Rancho Cucamonga, San Jose, Whittier, and Yorba Linda, as
well as the Orange County Fire Authority, Santa Monica College, and Transportation
Corridor Agencies. She has also served a diverse range of private sector organizations
from different industries such as the California Credit Union League, Inland Empire Health
Plan, Kingston Technology Company, Knox Company, Ricoh Electronics, Inc., Unified
Western Grocers, Watt Property Management, and Wybridge Restaurant Group.
She obtained her Bachelor of Science Degree in Business Administration from the
University of Southern California and is currently completing coursework toward the
attainment of her professional designation as a Certified Compensation Professional with
the World At Work (formerly known as American Compensation). She is also a member
of the Orange County Compensation and Benefits (OCCABA).
Creative Management So/utlons, Inc. (CMS) 13
City of Seal Beach Class cation and Compensation Study: CMS Work Agreement: 09/24/08
SUMMARY OF QUALIFICATIONS:
CINDY M. HARARY, CONSULTANT
CREATIVE MANAGEMENT SOLUTIONS, INC. (CMS)
Ms. Harary has acquired over 14 years of human resources professional, technical
and administrative support experience in the public sector and over five years of
professional consulting work with CMS. She has a wide range of human resources
experience in classification, compensation, benefits, employment, performance appraisal,
opinion research, and training and development programs.
Ms. Harary has conducted job analysis, coordinated and conducted oral interviews,
drafted and revised class spec cations, completed and administered compensation and
benefits surveys, coordinated and administered performance evaluation plans, and
prepared and presented related management reports and exhibits.
Examples of public sector clients that Ms. Harary has assisted have included the
Cities of Anaheim, Corona, EI Monte, Lake Forest, Palo Alto, Pico Rivera, Rancho
Cucamonga, Santa Maria, Whittier and Yorba Linda. Other public sector illustrations
include California Baptist University, Elsinore Valley Municipal Water District, Orange
County Fire Authority, and the Santa Monica-Malibu Unified School District. Examples of
private and non-profit sector organizations that Ms. Harary has assisted include Goodwill
Industries of Orange County, Kingston Technology Company, Orange County Head Start,
Ricoh Electronics Inc., and Yoshinoya Restaurants.
Ms. Harary obtained her Bachelor of Arts Degree in Journalism from
California State University at Long Beach and acquired her professional
certification in Human Resources Management through the California State
University at Long Beach Extension Program.
Creative Management Solutions, Inc. (CMS) 14