HomeMy WebLinkAboutD-8 Staff Report - PSPC Professional Services AgreementCONSENT ITEM
D-8
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: TROY L. BUTZLAFF, ICMA-CM, CITY MANAGER
FROM: AMELIA AYALA, DIRECTOR OF HUMAN RESOURCES & RISK MANAGEMENT
DATE: APRIL 4, 2016
SUBJECT: REQUEST TO APPROVE PROFESSIONAL SERVICES AGREEMENT WITH
PUBLIC SECTOR PERSONNEL CONSULTANTS FOR A CITYWIDE
CLASSIFICATION AND COMPENSATION STUDY
SUMMARY:
It is unclear as to the last time the City conducted a citywide comprehensive classification and
compensation review. Over time, changes in City operations and staffing can affect the type, scope, and
level of work being performed resulting in internal equity (the relationship of positions to each other
within an organization) and external equity (the relationship of positions to the external labor market)
issues. As an industry standard, it is recommended that personnel classifications and compensation
levels be reviewed every seven years to update job specifications and adjust compensation levels
commensurate with assigned duties and relevant labor markets.
On January 5, 2016, the City Council approved a Scope of Services and authorized Staff to solicit
proposals for a Citywide Classification and Compensation Study. Staff received proposals from four (4)
firms. Upon evaluation of the proposals, Staff has identified a firm that has the necessary experience
required to conduct a comprehensive study. This action approves a Professional Services Agreement
with Public Sector Personnel Consultants (PSPC) to conduct a Citywide Classification and
Compensation Study.
RECOMMENDATION:
Staff recommends that the City Council take the following actions:
1)Approve a Professional Services Agreement with Public Sector Personnel Consultants (PSPC) to
conduct a Citywide Classification and Compensation Study in an amount not to exceed $78,750
which includes a 5% ($3,750) contingency; and
2)Authorize the Mayor to execute the agreement, in a form acceptable to the City Attorney, on
behalf of the City.
APPROVED
COUNCIL MEETING
04/04/2016
Approve Professional Services Agreement with Public Sector Personnel Consultants
April 4, 2016
Page 2
DISCUSSION:
The City has not performed a comprehensive classification and compensation study for some time. Over
time, changes in City operations and staffing can affect the type, scope, and level of work being
performed resulting in internal equity (the relationship of positions to each other within an organization)
and external equity (the relationship of positions to the external labor market) issues. The purpose of the
Classification and Compensation Study is to address changes in City operations and staffing over the
last several years. The objective is to have a credible Classification and Compensation Plan that
recognizes these changes; ensures positions performing similar work with essentially the same level of
complexity, responsibility, and knowledge, skills and abilities are classified together; provides salaries
commensurate with assigned duties; clearly outlines promotional opportunities and provides
recognizable compensation growth; provides justifiable pay differential between individual classes; and
maintains currency with relevant labor markets. The proposed Study will examine 130 citywide
classifications and conduct 130 interviews. Classifications to be examined include both full-time and
part-time positions.
On January 11, 2016 a Request for Proposal (RFP) to conduct a classification and compensation study
was distributed to a number of consultants. Proposals were due on February 17, 2016 and four (4) firms
responded. The firms and their proposed cost to perform the requested services are as follows:
Firm Proposed Cost
JB Reward Systems $48,830
Public Sector Personnel Consultants $102,500
Koff and Associates $113,520
Segal Waters Consulting $175,000
An evaluation committee comprised of the Director of Human Resources and Risk Management,
Director of Public Works/City Engineer, Director of Recreation and Family Services and Director of
Economic and Community Development was convened to evaluate the four (4) proposals. The
evaluation criteria used was based on seven (7) categories: Demonstrated Success; Understanding of the
City’s Goals; Staff; Familiarity with Locality; Specific Management Approach; Reputation; and Cost.
Although, JB Reward Systems proposed the lowest cost of the four firms, they received the lowest
overall weighted score from three (3) of the four (4) evaluators. Specifically, the firm was rated lower
than the other firms in the following categories: Familiarity with Locality (due to its location in
Bainbridge Island, Washington) Specific Management Approach (which relied heavily on computer
software programs) and Staff (experience was mostly with school districts rather than cities).
The committee unanimously selected Public Sector Personnel Consultants (PSPC) which has a regional
office in Los Angeles and its national office in Temple, Arizona. PSPC specializes in position
classification, job evaluation, and total compensation consulting services for public sector agencies.
PSPC’s customized approach allows public agencies to maintain sustainable, affordable, and defensible
classification and compensation plans tailored to meet the changing and growing demands of the public
sector.
PSPC has performed work for numerous cities across the nation. PSPC has extensive experience
working with cities within California particularity Southern California including: Burbank, Commerce,
Approve Professional Services Agreement with Public Sector Personnel Consultants
April 4, 2016
Page 3
Fresno, Huntington Beach, Monterey, Oakland, Palm Springs, Pasadena, Sacramento, San Clemente and
San Juan Capistrano.
PSPC has originally proposed a cost of $102,500. The City Manager’s Office was able to negotiate with
PSPC to lower the cost of the study by $27,500, which represents a 27% percent decrease in price.
The estimate for completion of the study is five (5) to seven (7) months with a final report presented from
PSPC to the City Council and Staff, regarding the findings of the study and proposed recommendations.
FISCAL IMPACT:
Staff allocated the classifications to be examined in the study by funding sources. The fiscal impact
associated with approving the Citywide Classification and Compensation Study is as follows:
Total
Cost of Study
General Fund
Impact Utility Sewer
$75,000 $43,889 $26,554 $4,557
Staff is also requesting including a 5% contingency, in the amount of $3,750, in case additional funding
is required to perform additional classification interviews or additional updating of classifications that
may be determined based on the consultant’s recommendations. As noted in Exhibit C, Compensation,
of the Professional Service Agreement, additional interviews will be $100 each and updated
classification would be $90 each. If used, the contingency would be allocated to the appropriate funds,
General Fund, Utility or Sewer.
Although this study was not a budgeted expense, there is sufficient savings in the current year’s budget
to cover the anticipated costs of the study through the end of the fiscal year. Staff will budget the
balance of funds needed to complete the study as part of the upcoming budget process.
Prepared by: Reviewed and Approved:
Louie F. Lacasella Amelia Ayala
Management Analyst Director of Human Resources & Risk Management
Reviewed and Approved:
Troy L. Butzlaff, ICMA-CM
City Manager
Attachments:
1) Professional Services Agreement - Public Sector Personnel Consultants
ATTACHMENT 1
CITY OF AZUSA
PROFESSIONAL SERVICES AGREEMENT
1. PARTIES AND DATE.
This Agreement is made and entered into this 4th day of April, 2016 by and between the
City of Azusa, a municipal corporation organized under the laws of the State of California with
its principal place of business at 213 East Foothill Boulevard, Azusa, California 91702 (“City”)
and Public Sector Personnel Consultatnts, Inc., an S Corportation with its principal place of
business at 1215 W. Rio Salado Parkway #109 Tempe, Arizona 85281 (“Consultant”). City and
Consultant are sometimes individually referred to herein as “Party” and collectively as “Parties.”
2. RECITALS.
2.1 Consultant.
Consultant desires to perform and assume responsibility for the provision of certain
professional services required by the City on the terms and conditions set forth in this
Agreement. Consultant represents that it is experienced in providing Classifcation and
Compenstation Study services to public clients, is licensed in the State of California, and is
familiar with the plans of City.
2.2 Project.
City desires to engage Consultant to render such services for a Classifcation and
Compenstation Study (“Project”) as set forth in this Agreement.
3. TERMS.
3.1 Scope of Services and Term.
3.1.1 General Scope of Services. Consultant promises and agrees to furnish to
the City all labor, materials, tools, equipment, services, and incidental and customary work
necessary to fully and adequately supply the professional Classifcation and Compenstation Study
consulting services necessary for the Project (“Services”). The Services are more particularly
described in Exhibit “A” attached hereto and incorporated herein by reference. All Services
shall be subject to, and performed in accordance with, this Agreement, the exhibits attached
hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules
and regulations.
3.1.2 Term. The term of this Agreement shall be from April 4, 2016 to the
completion of the study, which is anticipated to be completed on or before October 31, 2016,
unless earlier terminated as provided herein. Consultant shall complete the Services within the
term of this Agreement, and shall meet any other established schedules and deadlines. The
Parties may, by mutual written consent, extend the term of this Agreement if necessary to
complete the Services.
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3.2 Responsibilities of Consultant.
3.2.1 Control and Payment of Subordinates; Independent Contractor. The
Services shall be performed by Consultant or under its supervision. Consultant will determine
the means, methods and details of performing the Services subject to the requirements of this
Agreement. City retains Consultant on an independent contractor basis and not as an employee.
Consultant retains the right to perform similar or different services for others during the term of
this Agreement. Any additional personnel performing the 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.
3.2.2 Schedule of Services. Consultant shall perform the Services
expeditiously, within the term of this Agreement, and in accordance with the Schedule of
Services set forth in Exhibit “B” attached hereto and incorporated herein by reference.
Consultant represents that it has the professional and technical personnel required to perform the
Services in conformance with such conditions. In order to facilitate Consultant’s conformance
with the Schedule, City shall respond to Consultant’s submittals in a timely manner. Upon
request of City, Consultant shall provide a more detailed schedule of anticipated performance to
meet the Schedule of Services.
3.2.3 Conformance to Applicable Requirements. All work prepared by
Consultant shall be subject to the approval of City.
3.2.4 Substitution of Key Personnel. Consultant has represented to City that
certain key personnel will perform and coordinate the Services under this Agreement. Should
one or more of such personnel become unavailable, Consultant may substitute other personnel of
at least equal competence upon written approval of City. In the event that City and Consultant
cannot agree as to the substitution of key personnel, City shall be entitled to terminate this
Agreement for cause. As discussed below, any personnel who fail or refuse to perform the
Services in a manner acceptable to the City, or who are determined by the City to be
uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a
threat to the safety of persons or property, shall be promptly removed from the Project by the
Consultant at the request of the City. The key personnel for performance of this Agreement are
as follows:
Matthew Weatherly
President
Public Sector Personnel Consultants, Inc.
3.2.5 City’s Representative. The City hereby designate Troy Butzlaff, City
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Manager, or his designee, to act as its representative for the performance of this Agreement
(“City’s Representative”). City’s Representative shall have the power to act on behalf of the
City for all purposes under this Contract. Consultant shall not accept direction or orders from
any person other than the City’s Representative or his or her designee.
3.2.6 Consultant’s Representative. Consultant hereby designates Matthrew
Weatherly, President, or his designee, to act as its representative for the performance of this
Agreement (“Consultant’s Representative”). Consultant’s Representative shall have full
authority to represent and act on behalf of the Consultant for all purposes under this Agreement.
The Consultant’s Representative shall supervise and direct the Services, using his/her best skill
and attention, and shall be responsible for all means, methods, techniques, sequences and
procedures and for the satisfactory coordination of all portions of the Services under this
Agreement.
3.2.7 Coordination of Services. Consultant agrees to work closely with City
staff in the performance of Services and shall be available to City’s staff, consultants and other
staff at all reasonable times.
3.2.8 Standard of Care; Performance of Employees. Consultant shall perform
all Services under this Agreement in a skillful and competent manner, consistent with the
standards generally recognized as being employed by professionals in the same discipline in the
State of California. Consultant represents and maintains that it is skilled in the professional
calling necessary to perform the Services. Consultant warrants that all employees and
subcontractors shall have sufficient skill and experience to perform the Services assigned to
them. Finally, Consultant represents that it, its employees and subcontractors have all licenses,
permits, qualifications and approvals of whatever nature that are legally required to perform the
Services, including a City Business License, and that such licenses and approvals shall be
maintained throughout the term of this Agreement. As provided for in the indemnification
provisions of this Agreement, Consultant shall perform, at its own cost and expense and without
reimbursement from the City, any services necessary to correct errors or omissions which are
caused by the Consultant’s failure to comply with the standard of care provided for herein. Any
employee of the Consultant or its sub-consultants who is determined by the City to be
uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat
to the safety of persons or property, or any employee who fails or refuses to perform the Services
in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant
and shall not be re-employed to perform any of the Services or to work on the Project.
3.2.9 Period of Performance. Consultant shall perform and complete all Services
under this Agreement within the term set forth in Section 3.1.2 above (“Performance Time”).
Consultant shall also perform the Services in strict accordance with any completion schedule or
Project milestones described in Exhibits “A” or “B” attached hereto, or which may be separately
agreed upon in writing by the City and Consultant (“Performance Milestones”).
3.2.10 Laws and Regulations; Employee/Labor Certifications. Consultant shall
keep itself fully informed of and in compliance with all local, state and federal laws, rules and
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regulations in any manner affecting the performance of the Project or the Services, including all
Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable
for all violations of such laws and regulations in connection with Services. If the Consultant
performs any work knowing it to be contrary to such laws, rules and regulations and without
giving written notice to the City, Consultant shall be solely responsible for all costs arising
therefrom. Consultant shall defend, indemnify and hold City, its officials, directors, officers,
employees and agents free and harmless, pursuant to the indemnification provisions of this
Agreement, from any claim or liability arising out of any failure or alleged failure to comply
with such laws, rules or regulations.
3.2.10.1 Employment Eligibility; Consultant. By executing this
Agreement, Consultant verifies that it fully complies with all requirements and restrictions of
state and federal law respecting the employment of undocumented aliens, including, but not
limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to
time. Such requirements and restrictions include, but are not limited to, examination and
retention of documentation confirming the identity and immigration status of each employee of
the Consultant. Consultant also verifies that it has not committed a violation of any such law
within the five (5) years immediately preceding the date of execution of this Agreement, and
shall not violate any such law at any time during the term of the Agreement. Consultant shall
avoid any violation of any such law during the term of this Agreement by participating in an
electronic verification of work authorization program operated by the United States Department
of Homeland Security, by participating in an equivalent federal work authorization program
operated by the United States Department of Homeland Security to verify information of newly
hired employees, or by some other legally acceptable method. Consultant shall maintain records
of each such verification, and shall make them available to the City or its representatives for
inspection and copy at any time during normal business hours. The City shall not be responsible
for any costs or expenses related to Consultant’s compliance with the requirements provided for
in Section 3.2.10 or any of its sub-sections.
3.2.10.2 Employment Eligibility; Subcontractors, Consultants, Sub-
subcontractors and Subconsultants. To the same extent and under the same conditions as
Consultant, Consultant shall require all of its subcontractors, consultants, sub-subcontractors and
subconsultants performing any work relating to the Project or this Agreement to make the same
verifications and comply with all requirements and restrictions provided for in Section 3.2.10.1.
3.2.10.3 Employment Eligibility; Failure to Comply. Each person
executing this Agreement on behalf of Consultant verifies that they are a duly authorized officer
of Consultant, and understands that any of the following shall be grounds for the City to
terminate the Agreement for cause: (1) failure of Consultant or its subcontractors, consultants,
sub-subcontractors or subconsultants to meet any of the requirements provided for in Sections
3.2.10.1 or 3.2.10.2; (2) any misrepresentation or material omission concerning compliance with
such requirements (including in those verifications provided to the Consultant under Section
3.2.10.2); or (3) failure to immediately remove from the Project any person found not to be in
compliance with such requirements.
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3.2.10.4 Labor Certification. By its signature hereunder, Consultant
certifies that it is aware of the provisions of Section 3700 of the California Labor Code which
require every employer to be insured against liability for Workers’ Compensation or to undertake
self-insurance in accordance with the provisions of that Code, and agrees to comply with such
provisions before commencing the performance of the Services.
3.2.10.5 Equal Opportunity Employment. Consultant represents
that it is an equal opportunity employer and it shall not discriminate against any subconsultant,
employee or applicant for employment because of race, religion, color, national origin, handicap,
ancestry, sex or age. 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. Consultant shall also comply with all relevant provisions of
City’s Minority Business Enterprise program, Affirmative Action Plan or other related programs
or guidelines currently in effect or hereinafter enacted.
3.2.11 Insurance.
3.2.11.1 Time for Compliance. Consultant shall not commence
Services under this Agreement until it has provided evidence satisfactory to the City that it has
secured all insurance required under this section. In addition, Consultant shall not allow any
subcontractor to commence work on any subcontract until it has provided evidence satisfactory
to the City that the subcontractor has secured all insurance required under this section.
3.2.11.2 Minimum Requirements. Consultant shall, at its expense,
procure and maintain for the duration of the Agreement insurance against claims for injuries to
persons or damages to property which may arise from or in connection with the performance of
the Agreement by the Consultant, its agents, representatives, employees or subcontractors.
Consultant shall also require all of its subcontractors to procure and maintain the same insurance
for the duration of the Agreement. Such insurance shall meet at least the following minimum
levels of coverage:
(A) Minimum Scope of Insurance. Coverage shall be at least as
broad as the latest version of the following: (1) General Liability: Insurance Services Office
Commercial General Liability coverage (occurrence form CG 0001); (2) Automobile Liability:
Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto);
and (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation insurance as
required by the State of California and Employer’s Liability Insurance. The policy shall not
contain any exclusion contrary to the Agreement, including but not limited to endorsements or
provisions limiting coverage for (1) contractual liability (including but not limited to ISO CG 24
26 or 21 29); or (2) cross liability for claims or suits by one insured against another.
(B) Minimum Limits of Insurance. Consultant shall maintain
limits no less than: (1) General Liability: 1,000,000 per occurrence for bodily injury, personal
injury and property damage. If Commercial General Liability Insurance or other form with
general aggregate limit is used including, but not limited to, form CG 2503, either the general
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aggregate limit shall apply separately to this Agreement/location or the general aggregate limit
shall be twice the required occurrence limit; (2) Automobile Liability: 1,000,000 per accident for
bodily injury and property damage; and (3) Workers’ Compensation and Employer’s Liability:
Workers’ Compensation limits as required by the Labor Code of the State of California.
Employer’s Liability limits of $1,000,000 per accident for bodily injury or disease. Defense
costs shall be paid in addition to the limits.
(C) Notices; Cancellation or Reduction of Coverage. At least
fifteen (15) days prior to the expiration of any such policy, evidence showing that such insurance
coverage has been renewed or extended shall be filed with the City. If such coverage is
cancelled or materially reduced, Consultant shall, within ten (10) days after receipt of written
notice of such cancellation or reduction of coverage, file with the City evidence of insurance
showing that the required insurance has been reinstated or has been provided through another
insurance company or companies. In the event any policy of insurance required under this
Agreement does not comply with these specifications or is canceled and not replaced, the City
has the right but not the duty to obtain the insurance it deems necessary and any premium paid
by the City will be promptly reimbursed by Consultant or the City may withhold amounts
sufficient to pay premium from Consultant payments. In the alternative, the City may suspend or
terminate this Agreement.
3.2.11.4 Insurance Endorsements. The insurance policies shall
contain the following provisions, or Consultant shall provide endorsements on forms supplied or
approved by the City to add the following provisions to the insurance policies:
(A) General Liability. The general liability policy shall include
or be endorsed (amended) to state that: (1) using ISO CG forms 20 10 and 20 37, or
endorsements providing the exact same coverage, the City of Azusa, its directors, officials,
officers, employees, agents and volunteers shall be covered as additional insured with respect to
the Services or ongoing and complete operations performed by or on behalf of the Consultant,
including materials, parts or equipment furnished in connection with such work; and (2) using
ISO form 20 01, or endorsements providing the exact same coverage, the insurance coverage
shall be primary insurance as respects the City, its directors, officials, officers, employees, agents
and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the
Consultant’s scheduled underlying coverage. Any excess insurance shall contain a provision that
such coverage shall also apply on a primary and noncontributory basis for the benefit of the City,
before the City’s own primary insurance or self-insurance shall be called upon to protect it as a
named insured. Any insurance or self-insurance maintained by the City, its directors, officials,
officers, employees, agents and volunteers shall be excess of the Consultant’s insurance and shall
not be called upon to contribute with it in any way. Notwithstanding the minimum limits set
forth in Section 3.2.11.2(B), any available insurance proceeds in excess of the specified
minimum limits of coverage shall be available to the parties required to be named as additional
insureds pursuant to this Section 3.2.11.4(A).
(B) Automobile Liability. The automobile liability policy shall
include or be endorsed (amended) to state that: (1) the City, its directors, officials, officers,
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employees, agents and volunteers shall be covered as additional insureds with respect to the
ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or
borrowed by the Consultant or for which the Consultant is responsible; and (2) the insurance
coverage shall be primary insurance as respects the City, its directors, officials, officers,
employees, agents and volunteers, or if excess, shall stand in an unbroken chain of coverage
excess of the Consultant’s scheduled underlying coverage. Any insurance or self-insurance
maintained by the City, its directors, officials, officers, employees, agents and volunteers shall be
excess of the Consultant’s insurance and shall not be called upon to contribute with it in any
way. Notwithstanding the minimum limits set forth in Section 3.2.11.2(B), any available
insurance proceeds in excess of the specified minimum limits of coverage shall be available to
the parties required to be named as additional insureds pursuant to this Section 3.2.11.4(B).
(C) Workers’ Compensation and Employers’ Liability
Coverage. The insurer shall agree to waive all rights of subrogation against the City, its directors,
officials, officers, employees, agents and volunteers for losses paid under the terms of the
insurance policy which arise from work performed by the Consultant.
(D) All Coverages. Each insurance policy required by this
Agreement shall be endorsed to state that: (A) coverage shall not be suspended, voided, reduced
or canceled except after thirty (30) days (10 days for nonpayment of premium) prior written
notice by certified mail, return receipt requested, has been given to the City; and (B) any failure
to comply with reporting or other provisions of the policies, including breaches of warranties,
shall not affect coverage provided to the City, its directors, officials, officers, employees, agents
and volunteers. Any failure to comply with reporting or other provisions of the policies
including breaches of warranties shall not affect coverage provided to the City, its officials,
officers, employees, agents and volunteers, or any other additional insureds.
3.2.11.5 Separation of Insureds; No Special Limitations; Waiver of
Subrogation. All insurance required by this Section shall contain standard separation of insureds
provisions. In addition, such insurance shall not contain any special limitations on the scope of
protection afforded to the City, its directors, officials, officers, employees, agents and volunteers.
All policies shall waive any right of subrogation of the insurer against the City, its officials,
officers, employees, agents, and volunteers, or any other additional insureds, 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, its officials, officers, employees, agents, and volunteers, or any other
additional insureds, and shall require similar written express waivers and insurance clauses from
each of its subconsultants.
3.2.11.6 Deductibles and Self-Insurance Retentions. Any
deductibles or self-insured retentions must be declared to and approved by the City. Consultant
shall guarantee that, at the option of the City, either: (1) the insurer shall reduce or eliminate
such deductibles or self-insured retentions as respects the City, its directors, officials, officers,
employees, agents and volunteers; or (2) the Consultant shall procure a bond guaranteeing
payment of losses and related investigation costs, claims and administrative and defense
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expenses.
3.2.11.7 Subconsultant Insurance Requirements. Consultant shall
not allow any subconsultants to commence work on any subcontract relating to the work under
the Agreement until they have provided evidence satisfactory to the City that they have secured
all insurance required under this Section. If requested by Consultant, the City may approve
different scopes or minimum limits of insurance for particular subconsultants. The Consultant
and the City shall be named as additional insureds on all subconsultants’ policies of Commercial
General Liability using ISO form 20 38, or coverage at least as broad.
3.2.11.8 Acceptability of Insurers. 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.
3.2.11.9 Verification of Coverage. Consultant shall furnish City
with original certificates of insurance and endorsements effecting coverage required by this
Agreement on forms satisfactory to the City. The certificates and endorsements for each
insurance policy shall be signed by a person authorized by that insurer to bind coverage on its
behalf, and shall be on forms provided by the City if requested. All certificates and
endorsements 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.
3.2.11.9 Reporting of Claims. Consultant shall report to the City, in
addition to Consultant’s insurer, any and all insurance claims submitted by Consultant in
connection with the Services under this Agreement.
3.2.12 Safety. Consultant shall execute and maintain its work so as to avoid
injury or damage to any person or property. In carrying out its Services, the Consultant shall at
all times be in compliance with all applicable local, state and federal laws, rules and regulations,
and shall exercise all necessary precautions for the safety of employees appropriate to the nature
of the work and the conditions under which the work is to be performed. Safety precautions as
applicable shall include, but shall not be limited to: (A) adequate life protection and life saving
equipment and procedures; (B) instructions in accident prevention for all employees and
subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks,
confined space procedures, trenching and shoring, equipment and other safety devices,
equipment and wearing apparel as are necessary or lawfully required to prevent accidents or
injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety
measures.
3.2.13 Accounting Records. Consultant shall maintain complete and accurate
records with respect to all costs and expenses incurred under this Agreement. All such records
shall be clearly identifiable. Consultant shall allow a representative of City during normal
business hours to examine, audit, and make transcripts or copies of such records and any other
documents created pursuant to this Agreement. Consultant shall allow inspection of all work,
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data, documents, proceedings, and activities related to the Agreement for a period of three (3)
years from the date of final payment under this Agreement.
3.3 Fees and Payments.
3.3.1 Compensation. Consultant shall receive compensation, including
authorized reimbursements, for all Services rendered under this Agreement at the rates set forth
in Exhibit “C” attached hereto and incorporated herein by reference. The total compensation
shall not exceed Seventy Five Thousand ($75,000) without written approval of the City Council.
Extra Work may be authorized, as described below, and if authorized, will be compensated at the
rates and manner set forth in this Agreement.
3.3.2 Payment of Compensation. Consultant shall submit to City a monthly
itemized statement which indicates work completed and hours of Services rendered by
Consultant. The statement shall describe the amount of Services and supplies provided since the
initial commencement date, or since the start of the subsequent billing periods, as appropriate,
through the date of the statement. City shall, within 45 days of receiving such statement, review
the statement and pay all approved charges thereon.
3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any
expenses unless authorized in writing by City.
3.3.4 Extra Work. At any time during the term of this Agreement, City may
request that Consultant perform Extra Work. As used herein, “Extra Work” means any work
which is determined by City to be necessary for the proper completion of the Project, but which
the parties did not reasonably anticipate would be necessary at the execution of this Agreement.
Consultant shall not perform, nor be compensated for, Extra Work without written authorization
from City’s Representative.
3.3.5 Prevailing Wages. Consultant is aware of the requirements of California
Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations,
Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of
prevailing wage rates and the performance of other requirements on “public works” and
“maintenance” projects. If the Services are being performed as part of an applicable “public
works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total
compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage
Laws. City shall provide Consultant with a copy of the prevailing rates of per diem wages in
effect at the commencement of this Agreement. Consultant shall make copies of the prevailing
rates of per diem wages for each craft, classification or type of worker needed to execute the
Services available to interested parties upon request, and shall post copies at the Consultant’s
principal place of business and at the project site. Consultant shall defend, indemnify and hold
the City, its elected officials, officers, employees and agents free and harmless from any claim or
liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.
3.4 Termination of Agreement.
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3.4.1 Grounds for Termination. City may, by written notice to Consultant,
terminate the whole or any part of this Agreement at any time and without cause by giving
written notice to Consultant of such termination, and specifying the effective date thereof, at
least seven (7) days before the effective date of such termination. Upon termination, Consultant
shall be compensated only for those services which have been adequately rendered to City, and
Consultant shall be entitled to no further compensation. Consultant may not terminate this
Agreement except for cause.
3.4.2 Effect of Termination. If this Agreement is terminated as provided herein,
City may require Consultant to provide all finished or unfinished Documents and Data and other
information of any kind prepared by Consultant in connection with the performance of Services
under this Agreement. Consultant shall be required to provide such document and other
information within fifteen (15) days of the request.
3.4.3 Additional Services. In the event this Agreement is terminated in whole
or in part as provided herein, City may procure, upon such terms and in such manner as it may
determine appropriate, services similar to those terminated.
3.5 Ownership of Materials and Confidentiality.
3.5.1 Documents & Data; Licensing of Intellectual Property. This Agreement
creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense
any and all copyrights, designs, and other intellectual property embodied in plans, specifications,
studies, drawings, estimates, and other documents or works of authorship fixed in any tangible
medium of expression, including but not limited to, physical drawings or data magnetically or
otherwise recorded on computer diskettes, which are prepared or caused to be prepared by
Consultant under this Agreement (“Documents & Data”). All Documents & Data shall be and
remain the property of City, and shall not be used in whole or in substantial part by Consultant
on other projects without the City's express written permission. Within thirty (30) days
following the completion, suspension, abandonment or termination of this Agreement,
Consultant shall provide to City reproducible copies of all Documents & Data, in a form and
amount required by City. City reserves the right to select the method of document reproduction
and to establish where the reproduction will be accomplished. The reproduction expense shall be
borne by City at the actual cost of duplication. In the event of a dispute regarding the amount of
compensation to which the Consultant is entitled under the termination provisions of this
Agreement, Consultant shall provide all Documents & Data to City upon payment of the
undisputed amount. Consultant shall have no right to retain or fail to provide to City any such
documents pending resolution of the dispute. In addition, Consultant shall retain copies of all
Documents & Data on file for a minimum of fifteen (15) years following completion of the
Project, and shall make copies available to City upon the payment of actual reasonable
duplication costs. Before destroying the Documents & Data following this retention period,
Consultant shall make a reasonable effort to notify City and provide City with the opportunity to
obtain the documents.
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3.5.2 Subcontractors. Consultant shall require all subcontractors to agree in
writing that City is granted a non-exclusive and perpetual license for any Documents & Data the
subcontractor prepares under this Agreement. Consultant represents and warrants that
Consultant has the legal right to license any and all Documents & Data. Consultant makes no
such representation and warranty in regard to Documents & Data which were prepared by design
professionals other than Consultant or its subcontractors, or those provided to Consultant by the
City.
3.5.3 Right to Use. City shall not be limited in any way in its use or reuse of the
Documents and Data or any part of them at any time for purposes of this Project or another
project, provided that any such use not within the purposes intended by this Agreement or on a
project other than this Project without employing the services of Consultant shall be at City’s
sole risk. If City uses or reuses the Documents & Data on any project other than this Project, it
shall remove the Consultant’s seal from the Documents & Data and indemnify and hold harmless
Consultant and its officers, directors, agents and employees from claims arising out of the
negligent use or re-use of the Documents & Data on such other project. Consultant shall be
responsible and liable for its Documents & Data, pursuant to the terms of this Agreement, only
with respect to the condition of the Documents & Data at the time they are provided to the City
upon completion, suspension, abandonment or termination. Consultant shall not be responsible
or liable for any revisions to the Documents & Data made by any party other than Consultant, a
party for whom the Consultant is legally responsible or liable, or anyone approved by the
Consultant.
3.5.4 Indemnification. Consultant shall defend, indemnify and hold the City, its
directors, officials, officers, employees, volunteers and agents free and harmless, pursuant to the
indemnification provisions of this Agreement, for any alleged infringement of any patent,
copyright, trade secret, trade name, trademark, or any other proprietary right of any person or
entity in consequence of the use on the Project by City of the Documents & Data, including any
method, process, product, or concept specified or depicted.
3.5.5 Confidentiality. All Documents & Data either created by or provided to
Consultant in connection with the performance of this Agreement shall be held confidential by
Consultant. All Documents & Data shall not, without the prior written consent of City, be used
or reproduced by Consultant for any purposes other than the performance of the Services.
Consultant shall not disclose, cause or facilitate the disclosure of the Documents & Data to any
person or entity not connected with the performance of the Services or the Project. Nothing
furnished to Consultant which is otherwise known to Consultant or is generally known, or has
become known, to the related industry shall be deemed confidential. Consultant shall not use
City’s name or insignia, photographs of the Project, or any publicity pertaining to the Services or
the Project in any magazine, trade paper, newspaper, television or radio production or other
similar medium without the prior written consent of City.
3.6 General Provisions.
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3.6.1 Delivery of Notices. All notices permitted or required under this
Agreement shall be given to the respective parties at the following address, or at such other
address as the respective parties may provide in writing for this purpose:
Consultant:
Public Sector Personnel Consultatnts
1215 W. Rio Salado Parkway #109
Tempe, Arizona 85281
Attn: Matthew Weatherly, President
City:
City of Azusa
213 E. Foothill Blvd.
Azusa, CA 91702
Attn: Louie F. Lacasella, City Manager’s Office
Such notice shall be deemed made when personally delivered or when mailed,
forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to
the party at its applicable address. Actual notice shall be deemed adequate notice on the date
actual notice occurred, regardless of the method of service.
3.6.2 Indemnification.
3.6.2.1 Scope of Indemnity. To the fullest extent permitted by law,
Consultant shall defend, indemnify and hold the City, its directors, officials, officers, employees,
volunteers and agents free and harmless from any and all claims, demands, causes of action,
costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or
persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any
alleged acts, errors or omissions 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.
3.6.2.2 Additional Indemnity Obligations. Consultant shall defend, with
legal counsel chosen by City, at Consultant’s own cost, expense and risk, any and all claims,
actions or other proceedings of every kind covered by Section 3.6.2.1 that may be brought or
instituted against City or its directors, officials, officers, employees, volunteers and agents.
Consultant shall pay and satisfy any judgment, award or decree that may be rendered against
City or its directors, officials, officers, employees, volunteers and agents as party of any such
claim, suit, action or other proceeding. Consultant shall also reimburse City for the cost of any
settlement paid by City or its directors, officials, officers, employees, agents, or volunteers as
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part of any such claim, suit, action or other proceeding. Such reimbursement shall include
payment for City’s attorneys’ fees and costs, including expert witness fees. Consultant shall
reimburse City and its directors, officials, officers, employees, agents, and/or volunteers, for any
and all legal expenses and costs incurred by each of them in connection therewith or in enforcing
the indemnity herein provided. Consultant’s obligation to indemnify shall survive expiration or
termination of this Agreement and shall not be restricted to insurance proceeds, if any, received
by the City, its directors, officials officers, employees, agents, or volunteers.
3.6.3 Governing Law; Government Code Claim Compliance. This Agreement
shall be governed by the laws of the State of California. Venue shall be in Los Angeles County.
In addition to any and all contract requirements pertaining to notices of and requests for
compensation or payment for extra work, disputed work, claims and/or changed conditions,
Consultant must comply with the claim procedures set forth in Government Code sections 900 et
seq. prior to filing any lawsuit against the City. Such Government Code claims and any
subsequent lawsuit based upon the Government Code claims shall be limited to those matters
that remain unresolved after all procedures pertaining to extra work, disputed work, claims,
and/or changed conditions have been followed by Consultant. If no such Government Code
claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as
specified herein, Consultant shall be barred from bringing and maintaining a valid lawsuit
against the City.
3.6.4 Time of Essence. Time is of the essence for each and every provision of
this Agreement.
3.6.5 City’s Right to Employ Other Consultants. City reserves right to employ
other consultants in connection with this Project.
3.6.6 Successors and Assigns. This Agreement shall be binding on the
successors and assigns of the parties.
3.6.7 Assignment or Transfer. Consultant shall not assign, hypothecate, or
transfer, either directly or by operation of law, this Agreement or any interest herein without the
prior written consent of the City. Any attempt to do so shall be null and void, and any assignees,
hypothecates or transferees shall acquire no right or interest by reason of such attempted
assignment, hypothecation or transfer.
3.6.8 Construction; References; Captions. Since the Parties or their agents have
participated fully in the preparation of this Agreement, the language of this Agreement shall be
construed simply, according to its fair meaning, and not strictly for or against any Party. Any
term referencing time, days or period for performance shall be deemed calendar days and not
work days. All references to Consultant include all personnel, employees, agents, and
subcontractors of Consultant, except as otherwise specified in this Agreement. All references to
City include its elected officials, officers, employees, agents, and volunteers except as otherwise
specified in this Agreement. The captions of the various articles and paragraphs are for
convenience and ease of reference only, and do not define, limit, augment, or describe the scope,
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content, or intent of this Agreement.
3.6.9 Amendment; Modification. No supplement, modification, or amendment
of this Agreement shall be binding unless executed in writing and signed by both Parties.
3.6.10 Waiver. No waiver of any default shall constitute a waiver of any other
default or breach, whether of the same or other covenant or condition. No waiver, benefit,
privilege, or service voluntarily given or performed by a Party shall give the other Party any
contractual rights by custom, estoppel, or otherwise.
3.6.11 No Third Party Beneficiaries. Except to the extent expressly provided for
in Section 3.6.7, there are no intended third party beneficiaries of any right or obligation assumed
by the Parties.
3.6.12 Invalidity; Severability. If any portion of this Agreement is declared
invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining
provisions shall continue in full force and effect.
3.6.13 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. Consultant further
agrees to file, or shall cause its employees or subconsultants to file, a Statement of Economic
Interest with the City’s Filing Officer as required under state law in the performance of the
Services. 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 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.
3.6.14 Cooperation; Further Acts. The Parties shall fully cooperate with one
another, and shall take any additional acts or sign any additional documents as may be necessary,
appropriate or convenient to attain the purposes of this Agreement.
3.6.15 Attorney’s Fees. If either party commences an action against the other
party, either legal, administrative or otherwise, arising out of or in connection with this
Agreement, the prevailing party in such litigation shall be entitled to have and recover from the
losing party reasonable attorney’s fees and all other costs of such action.
3.6.16 Authority to Enter Agreement. Consultant has all requisite power and
authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party
warrants that the individuals who have signed this Agreement have the legal power, right, and
authority to make this Agreement and bind each respective Party.
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3.6.17 Counterparts. This Agreement may be signed in counterparts, each of
which shall constitute an original.
3.6.18 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.
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CITY OF AZUSA PUBLIC SECTOR
PERSONNEL CONSULTATNTS, INC.
Joseph Romero Rocha Matthew Weatherly
Mayor President
Attest:
Jeffrey L. Cornejo, Jr.
City Clerk
Approved as to Form:
.
BEST BEST & KRIEGER LLP
Best Best & Krieger LLP
City Attorney
A-1
EXHIBIT “A”
SCOPE OF SERVICES
PUBLIC SECTOR PERSONNEL CONSULTANTS (PSPC) proposes the following program of consulting services and
implementation support to conduct a classification and compensation study.
Project 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 Project Tasks
5. Occupational familiarization by review of City’s current job descriptions and compensation plans
6. Organizational familiarization 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 (130 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 (130 included)
14. Resolution of employee reviews of classification recommendations and draft class specifications
Custom and Comprehensive Market Compensation Surveys
15. Identification of City’s competitive employment areas for compensation surveys, for City approval
16. Identification of City occupations to utilize as survey benchmark job classifications – (100 titles)
17. Solicitation of comparator employers and agencies for participation in 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. Collection of total compensation details from comparator cities, for comparison to current practices
21. Computation of extent City’s compensation offerings vary from external prevailing rates and practices
22. Review of competitiveness analysis with HR, City Officials and City’s project designees
Compensation Plan Development
23. Construction of optional salary range structures for review and selection by City’s project leaders
24. Assignment of job classes to salary ranges by internal equity and external competitiveness
25. Assistance with City Council identification of desired, affordable salary competitiveness policy
26. Fiscal impact estimates at various levels of external prevailing rates competitiveness policies
27. Review and critique of draft salary and implementation plans with HR, project leaders
Communication of Results and Implementation Strategies
28. Preparation and presentation of a final project reports for the City Council, staff, and City Officials
29. Development of a plan for the implementation of City’s updated classification and compensation plan
30. Uploading of EZ COMPTM program files on a HR Department computer, staff training
31. Development and provision of process for ongoing plan maintenance and subsequent plan updates
32. Assistance with communicating the City’s updated plans for all City officials and employees
33. One year classification and compensation plan maintenance assistance at no cost to the City
AZUSA PUBLIC SECTOR PERSONNEL CONSULTANTS rev rch1,
A-2
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.
- Internally equitable - Financially responsible
- Externally competitive - Efficiently administered
- Readily understood - Inclusive of employee input
- Easily updated & maintained - Reflective of City's values
- Legally compliant & defensible - Reflective of prevailing “best practices”
B. SCOPE OF THE PROJECT
The project 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 COMP™; internal equity and external
competitiveness evaluation; total 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. Quality 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 COMP™. Internally, 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. Project Planning Meetings and Communication Plan 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.
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D. POSITION CLASSIFICATION REVIEW
1. Review of Essential Tasks – Position Analysis Questionnaire
We will review and analyze the current essential tasks, duties and responsibilities, and minimum
qualifications of each included position through the Position Analysis Questionnaire (PDQ) to be
completed by each employee (or group of employees with identical jobs) in print or electronic format. If
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. Employee Worksite Job Information Interviews (up to 130 included)
We can conduct a worksite job information interview with a representative incumbent of needed job
classifications. The purpose of these 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 with an additional method of participation in the project. This process also ensures that
we make all internal and external comparisons on the basis of actual job 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:
- Is 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
job title, require the same minimum qualifications, and be assigned to the same salary range.
- If the City does not currently have a sufficiently comparable job class, what should be the subject
position’s occupational job 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 regarded
with significant salary difference in the marketplace. In such an instance, we will recommend
"splitting" the job class into the current job class and a new job class which encompasses the different
job activities.
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5. Updated Class Specifications (up to 130 included)
We can prepare an updated classification specification in the City’s standard or other selected format for
each occupational job 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 Education, Training and Experience Physical Requirements
Distinguishing Characteristics Licenses and Certifications Non-Essential Functions
Essential Functions FLSA Exempt/Non-Exempt Status Mental Requirements
Desired Knowledge and Skills Supervision Exercise/Received Working Conditions
6. Draft Classification Plan Review with Human Resources and Department 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 Equity
If 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 Hay Method, Decision Band
Method (DBM), and the Factor Evaluation System (FES). FES is the most extensively validated and
commonly 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’s annual salary competitiveness policy will be translated into a mathematical formula which, when
combined with the job 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 System – We will train a task force of representative City employees in
the adaptation 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 System 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.
A-5
E. COMPREHENSIVE AND SUSTAINABLE COMPENSATION PLAN
1. City Involvement 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 - Job Evaluation Method-Salary Plan Linkage
- Benchmark Job Class Selection - Draft Compensation Plan Review / Critique
- Compensation Competitiveness Policy - Total Compensation Points for Analysis
- Salary Structure Selection - Project Implementation Plan
2. Comprehensive Compensation Surveys
We do not subscribe to or recommend the use of databases or data warehouses used or hosted by other firms!
We will collect the complete pay plans from each of the City’s comparators and build a custom survey database
to ensure accuracy and completeness, unique to the City’s job classifications.
a. Data Collection Protocol will be developed in consultation with the City’s project leaders to determine
which salary data elements to include, such as:
Base Salary Information
- Salary grade/step or open range salary plan structure
- Salary range structure Minimum, Midpoint, and Maximum
- Method of salary administration – longevity, performance, or skill
Additional Compensation Information – Benefits and Certification Pays
- City-support premiums and contributions such as insurance and retirement
- Supplemental pay items for special qualifications/certifications
- Individual or group incentive plans, bonus, awards, stipends
- Any additional add-pay or benefits items at City’s direction
b. Benchmark Job Selection will be made by identifying City job classes common to its employment-
competitive public and private employers in the immediate area and throughout the region or State,
clearly identifiable, and representative of standard occupational job groups.
c. Comparator Employers Identification 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 Collection will be made by one or more of the following methods.
- Pre-survey contact with the selected comparator employers to solicit participation in the City’s
compensation survey(s)
- Extraction from the pay plans of designated public employers.
- Customized salary and total compensation and benefits survey requests for local governments and
other public 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, ERI, AWWA, etc.
e. Data Quality Control includes editing data for accuracy and proper matching to the City’s survey
benchmark jobs, and phone/fax/E-mail follow-ups for data clarification and to obtain comparators’
benchmark job descriptions.
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3. Prevailing Rates Calculation
We will consolidate the compensation data from all sources, enter the information into the EZ COMP™
program, and compute the prevailing rates, inclusive of cost of living differentials, as the statistical mean of
the survey data for each benchmark job class. Data will be projected forward from the date of collection to
a common date relating to the City’s salary plan year by the annual Prevailing Rate Increase Factor (PRI)
applicable at that time.
4. Compensation Competitiveness Comparison
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 Policy
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. Salary Plan Structure Development
We will review the City’s current employee 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
- If steps within the salary ranges, number of steps, percentage separation
- Number of salary ranges, grades, or broad bands in the salary schedule
- Percentage of separation between salary ranges, grades or broad bands
- Recognition for longevity, unique assignments, and special skill requirements
- Remuneration for required special licenses, certifications and registrations
- Linkage of performance evaluations to performance increase opportunities
7. Salary Range 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 25% guideline for salary separation of a department head job class
- its quantitative evaluated internal job worth value (job evaluation points)
A-7
8. Implementation Plan Development
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.
F. FINAL REPORTS AND PRESENTATIONS
1. Draft and Final Report Preparation
We will provide the City’s project leader(s) with a draft of our report for review and critique, including
the classification plan, FLSA designations, compensation market data, salary comparison tables, fiscal
estimates, salary range listings, and implementation procedures. We will incorporate their critique into the
development of a final report summarizing the project’s findings, recommendations, and detailed
description of the City’s updated position classification and compensation plans.
2. Final Report Presentations
We will conduct a workshop or formal presentation of our final report and recommendations to the Human
Resources staff, City Officials, and employees.
3. EZ COMP™ Program Installation
We will install our EZ COMP™ program and project files on one of the Human Resources Department's
computers and provide training to key staff in the maintenance and update of the classification and
compensation plan.
4. Implementation Warranty
To ensure effective implementation of the new plan, we will analyze, evaluate, and provide a salary range
recommendation for any new or changed job class, at no cost to the City for one year.
G. ENSURING THE CITY’S SELF-SUFFICIENCY
The City will be self-sufficient in all aspects of maintenance of the updated position classification and
compensation plan through these services.
1. Procedure Manuals
- PSPC Position Classification Procedure Guide
- PSPC Salary Administration Procedure Guide
- City of Azusa EZ COMP™ Procedure Guide
2. Training Workshop – for City staff in position classification, job evaluation, compensation surveys, and
compensation plan design and administration.
3. Electronic Class Specification Library – we can provide the City with all updated class descriptions in
hard copy and electronic library format for internal maintenance.
4. EZ COMP™ – program and project files on one of the City’s computers, a custom user’s manual, and
system training for key City and Human Resources staff.
5. Initial Year’s Implementation Warranty Support – we will analyze, evaluate, classify, and provide a
salary range recommendation for any new or changed position or entire job classification, at no cost to the
City for one year.
A-8
H. EXTENSIVE EMPLOYEE INCLUSION AND COMMUNICATION
Very important factors for successful implementation of new or updated classification and compensation plans
are 1) extensive employee inclusion, and 2) extensive employee communication. City officials and employees
will participate in one or more of the following activities:
- Attending pre-project briefings and question and answer sessions
- Completing a Position Analysis Questionnaire (PDQ) describing their position
- Elaborating on their jobs in individual or group job information interviews
- Receiving information pamphlet/booklet describing the updated salary plan
I. 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
appreciate, but do not require, any office space, telephone, clerical assistance, computers, or office equipment.
We will provide all data entry, data processing, duplicating, and related report preparation functions.
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EXHIBIT “B”
SCHEDULE OF SERVICES
Public Sector Personnel Consultants, Inc. and the City will partner to complete the study by
October 31, 2016. The agreement period can be extended by agreement of both parties at any
time during or after the term of agreement.
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EXHIBIT “C”
COMPENSATION
A. PROJECT COST AGREEMENT
We estimate that the project's total cost, including all fees for professional services and
reimbursement for out-of-pocket expenses, will not exceed the indicated amounts.
Major Project Components
- Position Classification and Job Titling / Including Briefings Kick Off Meetings $ 3,000
- On-Site Desk Audits or Interviews (up to 130 included) $ 14,000
- Updated Class Specifications (assuming up to 130) $ 13,000
- Total Compensation Survey (target 100 benchmark titles) $ 40,000
- Compensation Plan, Draft Reviews, Final Presentation $ 5,000
Not-To-Exceed:
$ 75,000
Optional Add-Ons
- Additional On-Site Desk Audits or Interviews (each) $ 100
- Additional Updated Class Specifications (each) $ 90