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16-0622_PUBLIC SECTOR PERSONNEL CONSULTANTS_Agenda Report_F206t21t2016 F20 TO City of San Juan Capistrano Agenda Report Honorable Mayor and Members of the City Council ,Æ"Siegel, City ManagerFROM: SUBMITTED BY: Sam Penrod, Human Resources/Risk Manage DATE: June 21,2016 SUBJECT Award of a Professional Services Agreement for a City-wide Classification and Compensation Study to Public Sector Personnel Consultants RECOMMENDATION By motion, approve and authorize the City Manager to sign a Professional Services Agreement with Public Sector Personnel Consultants, in an amount not to exceed $39,000, for a City-wide Classification and Compensation Study. EXECUTIVE SUMMARY The City of San Juan Capistrano (City) issued a Request for Proposals (RFP) for a City- wide classification and compensation study. Five firms responded, and two finalists were selected and interviewed by staff. Based on the proposals, interviews, and the reference checks staff is recommending approval of an agreement with Public Sector Personnel Consultants (PSPC) to conduct the City-wide study. DISCUSSION To help ensure that the City is in a competitive position to recruit and retain quality staff, and to ensure that staff is working within the proper classification, it is recommended that an agency-wide classification and compensation study be conducted about every seven years. The last City-wide study was conducted in 2006. During the most recent labor negotiations that resulted in the current three-year contract (2014-2017) between the City and the two recognized employee associations, it was anticipated that the City would conduct a City-wide classification and compensation study. ln the Fall of 2014, an RFP was sent out and five firms responded. There was no further action on this issue until recently, when the five firms who initially responded City Council Agenda Report June 21, 2016 Paqe 2 of 4 were contacted and asked to provide an updated proposal. The RFP was also made available through the City Clerk's Office to any other firm interested in the study. The five firms that initially responded all submitted new proposals, and their costs to conduct the study are noted below. The City did not receive a proposal from any other firm. FIRM CPS-HR Consulting Creative Management Solutions Koff & Associates Public Sector Personnel Consultants Reward Strategy Group (RSG) COST $49,000 $29,000 $60,000 $39,000 $56,100 Based on a review of the RFP responses, two firms were invited to an oral interview. The interview panel consisted of the President of the San Juan Capistrano Classified Employees Association (CEA), a board member of the San Juan Capistrano Management and Professional Employees Association (MPEA), and the City's Human Resources/Risk Manager, who will oversee the study. After a review of the proposals, the oral interviews, and reference checks on each of the firms, the consensus of the panel is to recommend Public Sector Personnel Consultants to conduct this particular study. While either of the two firms could conduct the study, there are three primary factors for the recommendation to select PSPC: 1. PSPC has three full-time staff members specifically dedicated to writing job descriptions. Because it has been ten years since the last City-wide study was completed, and in reviewing the current job descriptions, it is anticipated that this study may result in revisions to some of the City's job descriptions. 2. PSPC will provide the City with propriety software program files that can be used post-study to do specific classification updates as needed in the coming years. PSPC has also committed to providing one year of "maintenance assistance" at no additional cost, to help ensure the successful implementation of the recommendations. 3. The panel agreed that PSPC is best suited to conduct a thorough and professional study for our organization that will involve significant interaction with City staff. It is anticipated that the study will take approximately six months to complete, and the information will then be used as part of the preparations for the next round of labor negotiations that will begin in early 2017, as well as the budget preparation process for Fiscal Year 2017-18. City Council Agenda Report June 21,2016 Page 3 of 4 The key components of the study will include the following A. Meetings with all of the employees to explain the study methodology and process, as well as answering any questions that employees will have; B. Filling out a Position Analysis Questionnaire (PAQ). All employees will complete this comprehensive document that allows employees to articulate the essential functions, any special requirements, and certifications required for a position. These will then be reviewed by managers and department heads; C. One-on-one and group meetings between the consultant and employee(s) to ensure a proper understanding of each position and PAQ response; D. A review, and where necessary a revision, of all job descriptions to ensure assigned duties, responsibilities, and requirements are accurate and complete. PSPC will also review each classification to ensure it is appropriately classified as either exempt or non-exempt from overtime regulations that recently changed. PSPC will also recommend any new classification for consideration to recognize any specific set of job duties that is not currently covered by an existing job description; and E. A comprehensive compensation study. PSPC will survey approximately fifteen public agencies to determine the competitive position that the City is in regarding certain benchmark classifications. This information will be used to also determine any potential adjustments that would be recommended to other positions in the City based on an internal relationship within the City organization. Staff anticipates working with PSPC to develop a single salary table that will apply to all classifications within in the City. The City currently has three separate salary tables: two for different full-time staff and one for part-time staff. It is anticipated that the consultant report would be presented to the City Council for consideration in Winter 2017. FISCAL IMPACT: The total cost of the study will not exceed $39,000, and sufficient funds are included in the City's current Fiscal Year 2015-16 budget for this study. Staff intends to carry over the funding into FY 2016-17. ENVIRONMENTAL REVIEW: In accordance with the California Environmental Quality Act (CEQA) the recommended action is exemptfrom CEQA per Section 15061(bX3), the general rule thatthe CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. A Professional Services Agreement with Public Sector Personnel Consultants to conduct a City-wide classification and compensation study would not be an activity with potential to cause significant effect on the environment and therefore City Council Agenda Report June 21,2016 Page 4 of 4 exempt from CEQA. A Notice of Exemption (NOE) will be posted should the project receive final approval. PRIOR CITY COUNCIL REVI EW Not applicable. CO M M I SS I O N/COM M ITTEE/BOARD EVIEW AND RECOMMENDATIONS: Not applicable. NOTIFICATION Classified Employees Association (CEA) Management and Professional Employees Association (MPEA) Creative Management Solutions Koff & Associates Reward Strategy Group CPS-HR Consulting Public Sector Personnel Consultants ATTACHMENT: Attachment 1- Professional Services Agreement with PSPC CITY OF SAN JUAN CAPISTRANO PROFESSIONAL SERVICES AGREEMENT This Agreement is made and entered into as of June 22,2016 by and between the City of San Juan Capistrano, a municipal corporation organized and operating under the laws of the State of California with its principal place of business at 3240Q Paseo Adelanto, San Juan Capistrano, CA92675 ("City"), and Public Sector Personnel Consultants with its principal place of business at 1215 W. Rio Salado #109, Tempe, AZ 85281 (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: City-wide Classification and Compensation Study (hereinafter referred to as "the Project"). B. Consultant is duly licensed and has the necessary qualifications to provide such services. C. The Parties desire by this Agreement to establish the terms for City to retain Consultant to provide the services described herein. AGREEMENT NOW, THEREFORE, IT IS AGREED AS FOLLOWS: 1. Services. Consultant shall provide the City with the services described in the Scope of Services attached hereto as Exhibit "A." 2. Compensation. a. Subject to paragraph 2(b) below, the City shall pay for such services in accordance with the Schedule of Charges set forth in Exhibit "8." b. ln no event shall the total amount paid for services rendered by Consultant under this Agreement exceed the sum of $39,000 (Thirty-Nine Thousand Dollars). This amount is to cover all costs associated with the project. Periodic payments shall be made within 30 days of receipt of an invoice which includes a description of the work performed. Payments to Consultant for work performed will be made on a monthly billing basis. 3. AdditionalWork. lf 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 fon¡rarded 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 1 PSA with PSPC June 2016 ATTACHMENT 1 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. Time of Performance Consultant shall perform its services in a prompt and timely manner and shall commence performance upon receipt of written notice from the City to proceed ("Notice to Proceed"). Consultant shall complete the services required within a mutually-agreed upon timeframe as determined by the City and Consultant. The Notice to Proceed shall set forth the date of commencement of work. 6 Delavs in Performance a. Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non- performing party. For purposes of this Agreement, such circumstances include but are not limited to, abnormal weather conditions; floods; earthquakes; fire; epidemics; war; riots and other civil disturbances; strikes, lockouts, work slowdowns, and other labor disturbances; sabotage or judicial restraint. b. Should such circumstances occur, the non-performing party shall, within a reasonable time of being prevented from performing, give written notice to the other party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. 7. Compliance with Law. a. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local government, including Cal/OSHA requirements. b. lf 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. lf 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. 2 PSA with PSPC June 201 6 9. Assionment 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. lndependentConsultant 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. lnsurance. Consultant shall not commence work for the City until it has provided evidence satisfactory to the City it has secured all insurance required under this section. ln 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 Liabilitv (¡) 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 lnsurance, 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) lnsurance Services Office Commercial General Liability coverage (Occurrence Form CG 00 01) or exact equivalent. (iii) Commercial General Liability lnsurance must include coverage for the following (1) Bodily lnjury and Property Damage(2) Personallnjury/Advertisinglnjury(3) Premises/Operations Liability(4) Products/Completed Operations Liability(5) Aggregate Limits that Apply per Project(6) Explosion, Collapse and Underground (UCX) exclusion deleted(7) Contractual Liability with respect to this Contract(8) Broad Form Property Damage(9) lndependentConsultantsCoverage (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 PSA with PSPC June 2016 3 insured against another; (3) products/completed operations liability; or (4) contain any other exclusion contrary to the Agreement. (v) The policy shall give City, its officials, officers, employees, agents and City designated volunteers additional insured status using ISO endorsement forms CG 20 10 10 01 and 20 37 10 01 , or endorsements providing the exact same coverage. (vi) The general liability program may utilize either deductibles or provide coverage excess of a self-insured retention, subject to written approval by the City, and provided that such deductibles shall not apply to the City as an additional insured. b. Automobile Liabilitv (i) At all times during the performance of the work under this Agreement, the Consultant shall maintain Automobile Liability lnsurance 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 lnsurance Services Office Form Number CA 00 01 covering automobile liability (Coverage Symbol 1, any auto). (iii) The policy shall give City, its officials, officers, employees, agents and City designated volunteers additional insured status. (iv) Subject to written approval by the City, the automobile liability program may utilize deductibles, provided that such deductibles shall not apply to the City as an additional insured, but not a self-insured retention. c.Workers' Compensation/Emplover's Liabilitv (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. (i¡) 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 lnsurance Act," Division lV of the Labor Code of the State of California and any acts amendatory thereof, and Employer's Liability Coverage in amounts indicated herein. Consultant shall require all subconsultants to obtain and maintain, for the period required by this Agreement, workers' compensation coverage of the same type and limits as specified in this section. d. Professional Liabilitv (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 4 PSA with PSPC June 20 I 6 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 Policv Limits Required (i) The following insurance limits are required for the Agreement: Combined Sinqle 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 lnsured 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 lnsurance (Acord Form 25- S or equivalent), together with required endorsements. All evidence of insurance shall be signed by a properly authorized officer, agent, or qualified representative of the insurer and shall certify the names of the insured, any additional insureds, where appropriate, the type and amount of the insurance, the location and operations to which the insurance applies, and the expiration date of such insurance. g Policy Provisions Required (i) Consultant shall provide the City at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that the Consultant shall provide at least ten (',l0) days prior written notice of cancellation of any such policy due to non-payment of premium. lf any of the required coverage is cancelled or expires during the term of this Agreement, the Consultant shall deliver renewal certificate(s) including PSA with PSPC June 2016 5 the General Liability Additional lnsured Endorsement to the City at least ten (10) days prior to the effective date of cancellation or expiration. (i¡) 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. Consultantshall purchase a one (1)yearextended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-made policy with a retroactive date subsequent to the effective date of this Agreement. (iv) All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants. (v) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant's indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law. h. Qualifvino lnsurers (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:Vll and admitted to transact in the business of insurance in the State of California, or othenvise allowed to place insurance through surplus line brokers under applicable provisions of the California lnsurance Code or any federal law. Additional lnsurance 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 otheruvise assumed by the Consultant pursuant to this Agreement, including but not limited to, the provisions concerning indemnification. (ii) lf 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 6 PSA with PSPC June 2016 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. ln the alternative, City may cancel this Agreement. (¡¡i) 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 lnsurance 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. lf requested by Consultant, City may approve different scopes or minimum limits of insurance for particular subcontractors or subconsultants. 12. lndemnification. a. To the fullest extent permitted by law, Consultant shall defend (with counsel reasonably approved by the City), indemnify and hold the City, its officials, officers, employees, agents and volunteers free and harmless from any and all claims, demands, causes of action, suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, (collectively, "Claims') in any manner arising out of, pertaining to, or incident to any alleged 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 consequential damages, expert witness fees and attorneys' fees and other related costs and expenses. Notwithstanding the foregoing, to the extent Consultant's services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to Claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, its officials, officers, employees, agents or volunteers . b. Additional lndemnitv Obliqations. Consultant shall defend, with counsel of City's choosing and at Consultant's own cost, expense and risk, any and all Claims covered by this section that may be brought or instituted against the City, its officials, officers, employees, agents or volunteers. Consultant shall pay and satisfy any judgment, award or decree that may be rendered against the City, its officials, officers, employees, agents or volunteers as part of any such claim, suit, action or other proceeding. Consultant shall also reimburse City for the cost of any settlement paid by the City, its officials, officers, employees, agents or volunteers as part of any such claim, suit, action or other proceeding. Such reimbursement shall include payment for the City's attorney's fees and costs, including expert witness fees. Consultant shall reimburse the City, its officials, officers, employees, agents and volunteers, for any and all legal expenses and costs incurred by each of them in connection PSA with PSPC June 201 6 7 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 officials, officers, employees, agents and volunteers. 13. California Labor Code Requirements. a. Consultant is aware of the requirements of California Labor Code Sections 1720 et seq. and 177Q et seq., which require the payment of prevailing wage rates and the performance of other requirements on certain "public works" and "maintenance" projects. lf 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 $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws, if applicable. Consultant shall defend, indemnify and hold the City, its elected 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. lt 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, employment of apprentices, hours of labor and debarment of contractors and subcontractors. b. lf the Services are being performed as part of an applicable "public works" or "maintenance" project, then pursuant to Labor Code Sections 1725.5 and 1771.1, lhe Consultant and all subconsultants performing such Services must be registered with the Department of lndustrial 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 lndustrial Relations. lt shall be Consultant's sole responsibility to comply with all applicable registration and labor compliance req uirements. 14. Verification of Emplovment Eliqibility. 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 lmmigration 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. Citv Material Requirements (This section is not applicable.) 16. Laws and Venue. This Agreement shall be interpreted in accordance with the laws of the State of California. lf 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 Orange, State of California. 17 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. ln such event, City shall be immediately given title and possession to all original field notes, drawings and specifications, written reports and other documents produced or developed for that portionI PSA with PSPC June 2016 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. lf 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. l8 Documents. Except as othenruise 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. 19. Oroanization Consultant shall assign Matt Weatherly as Project Manager. The Project Manager shall not be removed from the Project or reassigned without the prior written consent of the City. 20. Limitation of Aqreement. This Agreement is limited to and includes only the work included in the Project described above 21. 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 San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA92675 Attn: Sam Penrod, Human Resources/Risk Manager CONSULTANT: Matt Weatherly, President Public Sector Personnel Consultants 1215W. Rio Salado Parkway #109 Tempe, A285281 and shall be effective upon receipt thereof. 22. Third Partv Riqhts Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than the City and the Consultant. I PSA with PSPC June 20 I 6 23. Equal Opportunitv Emplovment. 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. 24. Entire 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. 25. Severabilitv The unenforceability, invalidity or illegality of any provision(s) of this Agreement shall not render the provisions unenforceable, invalid or illegal. 26. Successors and Assiqns 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. 27. Non-Waiver None of the provisions of this Agreement shall be considered waived by either party, unless such waiver is specifically specified in writing. 28. Time of Essence Time is of the essence for each and every provision of this Agreement. 29. City's Riqht to Employ Other Consultants City reserves its right to employ other consultants, including engineers, in connection with this Project or other projects. 30. Prohibited lnterests 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 PSA with PSPC June2o16 1 0 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. ISTGNATURES ON FOLLOWTNG PAGE] PSA with PSPC June 2016 11 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND PUBLIC SECTOR PERSONNEL CONSULTANTS lN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. CITY OF SAN JUAN CAPISTRANO PUBLIC SECÏOR PERSONNEL CONSULTANTS By:By: Its: Ben Siegel City Manager ATTEST By: City Clerk APPROVED AS TO FORM By: City Attorney Printed Name PSA with PSPC June 201 6 12 EXHIBIT A Scope of Services (See attached RFP response from PSPC) PSA with PSPC June 20 l6 13 PROPOSAL TO CONDUCT A GLASSIFICATION AND GOMPENSATION STUDY FOR THE CITY OF SAN JUAN CAPISTRANO MARCH 2016 PROPOSAL PREPARED BY: FUBtIC SECTOR PERSqffHEL col¡su LtÁt¡Tg \ National Off¡ce: 12'15 W Rio Salado #109 Tempe, AZ 85281 (888) 522.7772 www.compensationconsull¡nq.com ütr.-. ': i-fer,.''Å" ¡ ' n"; T ¡. Siu PU BLIG SECTOR PERSONNEL GONSULTANTS PAGE 1 March 8,2016 Mr. Sam Penrod Human Resources Manager City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Dear Selection Team, Pursuant to the City's RFP, we are pleased to provide you with a proposal and qualifications to assist the City with a classification and compensation project. We specialize in these services, and have implemented classification and compensation plans for more than 1,000 public employers nationwide, including more than 325 municipalemployers and more than 75 public employers in California. Current and recently completed projects include the City of Azusa, the City of Upland, the City of San Clemente, the City of Monterey, and San Diego Housing Commission' We believe our firm is uniquely qualified to perform this study. We will utilize only full time members of our staff, who have a combined 120+ years of conducting and implementiation classification and compensation studies. Combined with our tailored approach, emphasis on employee participation and communication, and one year of no-cost implementation support, we believe in our ability to meet the City's project needs. Thank you for your interest in our firm's services. lf we can provide any additional information, or if you would like to vis¡t turtner or in person about the City's project needs, please contact me at any time. Sincerely, iffiie* Matthew Weatherly, President (888) 522-7772 mweatherlv(ðcompensationconsultinq. com cc: Kay Tilzer, Vice President - PSPC Los Angeles Regional Office: 149 S. Barrington Ave.#726 LosAngeles, CA 90049 National Office: I 21 5 W. Rio Salado Parkway #1 09 Tempe, M 85281 888.522.77 7 2 o FAX (480)970-601 9 o www. compensationconsu ltinq. com ,::',ìì PROJECT UNDERSTANDING: SUMMARY OF SERVICES PUBLIC SECIOR PFRSO^/ /E¿ CONSULTAIVIS IPSPC) proposes the following program of consulting services and implementation support to conduct a classification and compensation study. Proiect Planning and Communication 1. Project planning and scheduling meeting with HR Staff and project designee(s) 2. Policy input and project direction meeting and briefing with Council, HR and designee(s) 3. Project briefing presentation for all employees, Council, City officials, City's project leaders 4. Management and employee communication, progress reports throughout all project phases Classification Proiect Tasks 5. Occupational familiarization by review of City's current job descriptions and compensation plans 6. Organizationalfamiliarization by review of City organization charts, budgets, and annual reports 7. Position Description Questionnaire (PDQ) customized for gathering City employee occupation data 8. Meetings to distribute and explain the PDQ and the project for all City officials and employees 9. Worksite job desk audits / field observations with representatives of each class (20 included) 10. Determination of job classification and FLSA Exempt / Non-Exempt designation for each position 11. Recommended title modifications and reclassifications for consideration by department heads 12. Review of position classification recommendations with City's project staff and respective departments '13. Preparation of updated class specifications for each City job classification (70 included) 14. Resolution of employee reviews of classification recommendations and draft class specifications Custom and Comprehensive Market Compensation Survev 15. ldentification of City's competitive employment areas for compensation surveys, for City approval 16. ldentification of City occupations to utilize as survey benchmark job classifications - (ex. 60+ titles) 17. Solicitation of comparator employers and agencies for participation ín external compensation surveys 18. Extraction of data from public employer compensation plans, questionnaires, reliable published surveys 19. Consolidation of data from all sources and calculation of prevailing rates for benchmark jobs 20. Computation of extent City's compensation offerings vary from external prevailing rates and practices 21. Review of competitiveness analysis with HR, City Officials and City's project designees Compensation Plan Development 22. Construction of optional salary range structures for review and selection by City's project leaders 23. Assignment of job classes to salary ranges by internal equity and external competitiveness 24. Assistance with City Council identification of desired, affordable salary competitiveness policy 25. Fiscal impact estimates at various levels of external prevailing rates competitiveness policies 26. Review and critique of draft salary and implementation plans with HR, project leaders Communication of Results and lmplementation Strategies 27. Preparation and presentation of a final project reports for the City Council, staff, and City Officials 28. Development of a plan for the implementation of City's updated classification and compensation plan 29. Uploading of EZ COMPTM program files on a HR Department computer, staff training 30. Development and provision of process for ongoing plan maintenance and subsequent plan updates 31. Assistance with communicating the City's updated plans for all City officials and employees 32. One year classification and compensation plan maintenance assistance at no cost to the City Public Sector Personnel Gonsultants 2 San Juan Capistrano 3/16 PROJECT APPROACH AND METHODOLOGY Following is our overall work plan and approach to achieving the City's objectives for the conduct of a classification and compensation study. A. OBJECTIVES OF THE PROJECT The recommended plans, programs, systems and administrative procedures will meet these ten most important criteria. - lnternally equitable - Externally competitive - Readily understood - Easily updated & maintained - Legally compliant & defensible - Financially responsible - Efficiently administered - lnclusive of employee input - Reflective of City's values - Reflective of prevailing "best practices" B. SCOPEOFTHEPROJECT The project includes a management and employee communication plan; partnership with the City's Human Resources staff, City Manager, Council, and project designee(s); occupational, organizational, and operational familiarization; Position Analysis Questionnaire (PDQ) and job analysis for all classifications; worksite job information interviews; position classification and job title recommendations for all employees and classifications; FLSA designations; updated class specifications; EZ COMPTM,' internal equity and external competitiveness evaluation; base pay compensation survey and competitiveness analysis; salary range recommendations; fiscal impact estimates and multiple implementation scenarios; updated classification and compensation plan and one year of classification and compensation plan implementation. C. PROJECT METHODOLOGY 1. Qualitv Assurance To ensure a high quality project, we have built in several layers of procedural and statistical controls, in addition to those already in EZ COMPTM. lnternally, we follow a prescribed series of steps in each project phase, which are reviewed by our Project Director. We request that the Human Resources and City's Project Manager(s) review our work to minimize the chance of errors and to ensure that it reflects the City's organizational values. 2. Proiect Planning Meetinqs and Communication PIan Development We will consult with the Human Resources Manager and City Officials or representatives on a communication strategy, plan, and materials, beginning prior to the project and extending to the post- project information meetings. We can conduct group pre-project meetings for all City officials and employees where we will discuss the project's scope, answer questions, and distribute and explain the Position Analysis Questionnaire. Public Sector Personnel Consultants 3 a San Juan Capistrano 3/r 6 D. POSITION CLASSIFICATION REVIEW 1. Review of EssentialTasks - Position Analvsis Questionnaire We will review and analyze the current essential tasks, duties and responsibilities, and minimum qualifications of each ¡niluded position through the Position Analysis Questionnaire (PDQ) to be. iompleted by each employee (or group of employees with identical jobs) in prìnt or electronic format. lf the information on the PDQ does not clearly delineate the position's scope of responsibilities, we may return the PDQ to the position's incumbent for additional information, or focus on the data gap during a worksite job information interview. 2. Emplovee Worksite Job Information lnterviews We can conduct a worksite job information interview with a representative incumbent of every job classification. The purpose of ihese interviews is to verify the data on the PDQ, obtain additional insight into the scope and complexity of the job duties, observe technical processes and working conditions, and to provide employees wiih an additional method of participation in the project. This process also ensures that we makeall internal and external comparisons on the basis of actualiob content and not merely job title. 3. FLSA Status Determination We will review the essential tasks and minimum qualifications of each of the City's job classifications and subject them to the Fair Labor Standards Act tests to determine their exempt or non-exempt status. 4. Position Classification Each of the City's positions will be analyzed and evaluated to determine their primary characteristics, including: - ls there a current City occupational job group comprised of job classes with essential functions similar to the subject position; if so: - To which of the group's job classes, and at what level, are the subject position's essential functions similar to the subject position, and if so: - Are they sufficiently comparable (+/- 20% guideline) to be allocated to that job class, utilize the same jo-b title, requúe the same minimum qualifications, and be assigned to the same salary range. - lf the City does not currently have a sufficiently comparable job class, what should be the subject position's occupationaljob class and title, and: - What should the recommended occupational classification action be, No Change (N), Title Change (T), Merge With Other Job Class (M), New Job Class (J). - We may find that a job class is overly broad and encompasses several job activities which are regardeã with signifícant salary diffeience in the marketplace. ln such an instance, we will recommend "splilting" the job class into the current job class and a new job class which encompasses the different job activities. Public Sector Personnel Consultants 4 San Juan Capistrano 3/16 5. Updated Class Specifications We can prepare an updated classification specification in the City's standard or other selected format for each occupationaljob class. Focus will be on the Essential Functions and Minimum Qualifications. The specifications or descriptions may include (not limited to) the following components: Job Title - Definition Distinguishing Characteristics Essential Functions Desired Knowledge and Skills Education, Training and Experience Licenses and Certifications FLSA ExempVNon-Exempt Status Su pervision Exercise/Received Physical Requirements Non-Essential Functions Mental Requirements Working Conditions 6. Draft Classification PIan Review with Human Resources and Depa¡úment Heads We will conduct a review of our initial position classification recommendations and draft class specifications with the City's Project Team and respective department heads to identify possible errors, obtain feedback, and solicit suggestions for clarification. 7. Various Approaches to Ensure Internal Equitv lf desired, and for precision in job class analyses, and subsequent salary range determinations, we may utilize one of several job evaluation systems widely in use, including the Hav Method, Decision Band Method (DBM), and the Factor Evaluation Sysfem (FES). FES is the most extensively validated and commonìy utilized quantitative job evaluation system for public sector occupations, consisting of the following flexible compensable factors. Knowledge Required Personal Contacts Complexity Supervisory Controls Scope and Effect Work Environment Guidelines Provided Supervision Exercised Physical Demands The job class hierarchy based on job points will reflect the City's relative internal job worth values. The City'ó annual salary competitiveness policy will be translated into a mathematical formula which, when combined with thelob points of each City job class, will determine the proper salary range for each job class and position. This balances internal equity (job points relationships) with external competitiveness (market relationship formula). a. Optional Approach A - FES Sysfem - We will train a task force of representative City employees iñ tfre adapiation of the FES point-factor job content evaluation system to the City's job worth values, guide them in the evaluation of a structured benchmark of job classes, conduct QC reviews, and evaluate the remaining job classes within the relative job worth structure established by the task force. We can provide the City with manual or automated versions of this system. b. Optional Approach B - Custom Designed Sysfem for the City - We will train and guide a task force of representative City employees in the design of a point-factor system of job content evaluation total reflecting the City's relative job worth values, and proceed as in Approach A. We can provide the City with an automated version of the system once it has been developed with the task force. Public Sector Personnel Consultants 5 San Juan Capistrano 3116 E. COMPREHENSIVE AND SUSTA/NABLE COMPENSAZON PLAN 1 Citv lnvolvement in Compensation Plan Development We will obtain policy direction from the City Council, Human Resources staff, and/or City Officials on the following key components of the salary plan development process: - Comparator Employer Selection - Benchmark Job Class Selection - Compensation Competitiveness Policy - Salary Structure Selection - Job Evaluation Method-Salary Plan Linkage - Draft Compensation Plan Review / Critique - Compensation Points for Analysis - Project lmplementation Plan 2. Comprehensive Compensation Suruevs not su of used will the of the C ild a and C a. Data Collection Protocol will be developed in consultation with the City's project leaders to determine which salary data elements to include, such as: Base Salary lnformation- Salary grade/step or open range salary plan structure - Salary range structure Minimum, Midpoint, and Maximum - Method of salary administration - longevity, performance, or skill b. Benchmark Job Selection will be made by identifying City job classes common to its employment- competitive public and private employers in the immediate area and throughout the region or State, clearly identifiable, and representative of standard occupational job groups. c. Comparator Employers ldentificaúion will be made in consultation with the City's Project Manager(s) or City Council. Criteria include their degree of competition to the City in obtaining and retaining high quality staff, their location in the City's traditional recruitment areas, and their organizational size and complexity. d. Compensation Data Cottection will be made by one or more of the following methods. - Pre-survey contact with the selected comparator employers to solicit participation in the City's compensation survey(s) - Extraction from the pay plans of designated public employers. - Customized salary survey requests for local governments and other public and private employers, distributed by mail, fax, and e-mail. - As desired, additional data extraction from established salary surveys and commercial survey sources such as Watson Wyatt, ERl, etc. e. Data Quatity Controlincludes editing data for accuracy and proper matching to the City's survey benchmark jobs, and phone/faxlE-mail follow-ups for data clarification and to obtain comparators' benchmark job descriptions. Public Sector Personnel Consultants 6 San Juan Capistrano 3/16 3. Prevailing Rates Calculation We will consolidate the compensation data from all sources, enter the information into the EZ COMPTM program, and compute the prevailing rates, inclusive of cost of living differentials, as the statistical mean of the survey data for each benchmark job class. Data will be projected forward from the date of collection to a common date relating to the City's salary plan year by the annual Prevailing Rate lncrease Factor (PRl) applicable at that time. 4. Compensation Competitiveness Comparison We will provide the City with charts comparing its current salary structures to those of the selected public and private comparator employers. We will calculate the extent that the City's offerings vary from the prevailing rates and practices of other relevant employers. 5. Compensation Competitiveness Policv We will assist the City to select a compensation competitiveness policy which best fits its compensation strategy and financial resources, by providing fiscal impact estimates at various percentage relationships to the prevailing rates. 6. Salarv Plan Structure Development Wewill reviewthe City's currentemployee agreements and wage plans and 1)utilize the City's current wage plan structures to identify internally equitable and externally competitive salary ranges for each City job class or 2) prepare alternative salary range structures and schedules for the City to select the best fit for its competitiveness strategy, with these optional criteria: - Method of administration, i.e.: measured job performance, longevity, or skill - Width of the salary ranges, grades, or broad bands, from Minimum to Maximum - Varying salary range widths for FLSA non-exempt or exempt positions - Open salary ranges for pay-for-performance or variable compensation plan - lf steps within the salary ranges, number of steps, percentage separation - Number of salary ranges, grades, or broad bands in the salary schedule - Percentage of separation between salary ranges, grades or broad bands - Recognition for longevity, unique assignments, and special skill requirements - Remuneration for required special licenses, certifications and registrations - Linkage of performance evaluations to performance increase opportunities 7. Salarv Ranqe Assignment Development We will assign each job classification to a salary range in the City's current or selected new salary structure on the basis of a combination of factors, including: the prevailing rates for the benchmark job classes its current relationship to similar or occupationally related job classes the 15% guideline for salary range separation between sequential job classes the 25o/o guideline for salary separation of a department head job class its quantitative evaluated internaljob worth value (job evaluation points) 8. ImplementationPlanDevelopment We will consult with the Human Resources and Project Team on a plan for transition to the recommended plan, including a timetable for the principal activities, employee communication, impact on bargaining processes, and estimates of required financial resources. Public Sector Personnel Gonsultants 7 San Juan Capistrano 3/16 1. Draft and Final Repo¡Ú preparation We will provide the City's project leader(s) with a draft of our report for review and critique, includingthe classification plan, FLSA designations, compensation market data, salary comparison'tables, fiscàestimates, salary range listings, and implementation procedures. We will inóorporate their critique intothe development of a final report summarizing the project's findings, recomm'endations, and detaileddescription of the City's updated position classification ánd compensation plans. 2. Final Report Presentations We will conduct a workshop or formal presentation of our final report and recommendations to theHuman Resources staff, City Officials, and employees. 3. EZ COMPTM Proqram lnstallation We will install our Ez àOMPTM program and project files on one of the Human ResourcesDepartment's computers and provide training to key staff in the maintenance and update of theclassification and compensation plan. 4. lmplementationWarrantv To ensure effective implementation of the new plan, we will analyze, evaluate, and provide a salaryrange recommendation for any new or changed job class, at no cost to the Cityfor one year. G. E/VSUR'/VG THE CITY'S SELF-SUFFICIENCY The City will be self-sufficient in all aspects of maintenance of the updated position classification andcompensation plan through these services. 1. Procedure Manuals - PSPC Position Classification procedure Guide - PSPC Salary Administration procedure Guide - City of San Juan Capistrano EZ COMptM procedure Guide 2. Training Worksþop - for City staff ín position classification, job evaluation, compensation surveys, andcompensation plan design and administration. 3. Flectronic CIasS Speçification Libraru - we can provide the City with all updated class descriptions inhard copy and electronic library format for internal maintenance. F. FINAL REPORTS AND PRESENTATIONS system training program and project files on one of the city's computers, a custom user's manual, andfor key City and Human Resources staff. 5. Public Sector Personnel ConsultantsI 4. EZ COMPTM - _wewillanalyze,evaluate,classify,andprovidea salary range recommendation for any new or changeo position or entire job classification, aú no cost tothe City for one year. San Juan Gapistrano 3/16 H. EXTENSIVE EMPLOYEE INCLUSION AND COMMUNICATION Very important factors for successful implementation of new or updated classification and compensation plans are l) extensive employee inclusion, and 2) extensive employee communication. City officials and employees will participate in one or more of the following activities: - Attending pre-project briefings and question and answer sessions - Completing a Position Analysis Questionnaire (PDQ) describing their position - Elaborating on their jobs in individual or group job information interviews - Receiving information pamphleUbooklet describing the updated salary plan MINIMAL CITY SUPPORT REQUIRED We are completely self-sufficient in projects of this nature and do not require any substantive staff support from the City other than payroll data, and arrangements for group and individual meetings and interviews. We appreciáte, but do not require, any office space, telephone, clerical assistance, computers, or office equipment. We will provide all datä entry, data processing, duplicating, and related report preparation functions. Public Sector Personnel Consultants ISan Juan Capistrano 3/16 PROJECT RATES BY MAJOR TASK A, PROJECT COST ESTIMATE We estimate that the project's total cost, including all fees for professional services and reimbursement for out-of-pocket expenses, will notexceed the indicated amounts. Maior Proiect Components - Position Classification and Job Titling / lncluding Briefings Kick Off Meetings - On-Site Desk Audits or lnterviews (70 included, flexible to add/reduce) - Updated Class Specifications (assuming 70) - Base Compensation Survey (target 60+ salary survey benchmarks) - Compensation Plan, Draft Reviews, Final Presentation Not-To-Exceed $ 3,000 $ 7,ooo $ 7,000 $ 17,000 $ 5.000 $ 39,000 B. FLEXIBLE WORK PLAN, NEGOTIABLE TOTALCOS¿ TERMS Our work plan is flexible and total project cost negotiable, and we will discuss, modify, add or delete, any work task to increase the project's responsiveness to the City's needs and financial resources. We will provide the City with monthly invoices for the professional services provided and out-of-pocket expenses incurred during the month. We request that the City pay the invoices within thirty (30) days of their receipt. C. ESTIMATED TIMELINES We estimate that a full classification and compensation study including could be completed within 150 days of initial on-site planning and employee briefing meetings. Updated class specifications occasionally require additional time to complete. Public Sector Personnel Consultants 10 San Juan Capistrano 3/16 EXHIBIT B Schedule of Charges/Payments PSPC will bill the City periodically during the course of the study for services rendered PSA with PSPC June 201 6 14