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HomeMy WebLinkAbout2019-175Resolution No. 2019-175 RESOLUTION NO. 2019-175 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING A PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND PUBLIC SECTOR PERSONNEL CONSULTANTS WHEREAS, Mayor and City Council approved resolution numbers 2017-111 and June 21, 2017 and 2017-138 and 2017-139 on July 19, 2017 establishing memorandums of understanding (MOUS) agreements and benefit/compensation plans for employee groups: General Unit, Middle Management, and Management/Confidential; and WHEREAS, the City and the three (3) employee groups had met and conferred in good faith and came to an agreement a part of the current MOU to complete a classification and compensation study during fiscal year 2019-2020; and WHEREAS, The Human Resources Department completed the RFP process and with an interview panel including representatives from Human Resources, Finance and the Police Department made a selection. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City Manager is hereby authorized to execute on behalf of the City a Professional Services Agreement between the City of San Bernardino and Public Sector Personnel Consultants for a comprehensive citywide classification and compensation study services, a copy of agreement is attached hereto marked Exhibit "A" and incorporated herein by reference as fully as though set forth at length. SECTION 3. The Director of Finance is hereby authorized to issue a Purchase Order to Public Sector Personnel Consultants for classification and compensation study services for the 2019/20 fiscal year for a total amount not to exceed $150,000.00. SECTION 4. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, 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. Resolution No. 2019-175 SECTION 5. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 6. Effective Date. This APPROVED and ADOPTED by the by the City Clerk this 17d` day of July 2019. Attest: Georgeann HL3a, MMC, C y Clerk Approved as to form: Gary D. Saenz, City Attorney shall become effective immediately. by the Mayor and attested Rohn Valdivia, Mayor City of San Bernardino Resolution No. 2019-175 CERTIFICATION STATE OF CALIFORNIA) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO) I, Georgeann Hanna, MMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2019-175 adopted at a regular meeting held on the 17'h day of July 2019 by the following vote: Council Members: AYES NAYS SANCHEZ IBARRA X FIGUEROA % SHORETT X NICKEL Y RICHARD x MULVIHILL X ABSTAIN ABSENT WITNESS my hand and official seal of the City of San Bernardino this 17th day of July 2019. Georgeann Hanna, MMC, City Clerk EXHIBIT B SUMMARY OF SERVICES FOR THE CITY OF SAN BERNARDINO PUBLIC SECTOR PERSONNEL CONSULTANTS (PSPC) proposes the following program of consulting services and implementation support to conduct a classification and compensation study. P. roiect Planning and Communication 1. Project planning and scheduling meeting with the City's Human Resources Staff and project designee(s) 2. Policy input and project direction meeting and briefing with Council, Human Resources 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 Gass specifications and compensation plans 6. Organizational familiarization by review of City organization charts, budgets, and annual reports 7. Position Analysis Questionnaire (PAQ) customized for gathering City employee occupation data 8. Meetings to distribute and explain the PAQ and the project for all City officials and employees 9. Worksite job desk audits / field observations with representatives of each class (300 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 specs for each City job classification (est. 300, only bill what we write) 14. Review and comment on employee feedback / appeals to position classification recommendations 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 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. Computation of extent City's compensation offerings vary from external prevailing rates and practices 21. Review of competitiveness analysis with Human Resources, 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 Human Resources, project leaders Communication of Results and Implementation Strate les 27. Preparation and presentation of 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 COMPTu program files on a Human Resources 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 SBCA PUBLIC SECTOR PERSONNEL CONSULTANTS 6/19 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 - Externally competitive - Readily understood - Easily updated & maintained - Legally compliant & defensible B. SCOPE OF THE PROJECT - Financially responsible - Efficiently administered - Inclusive of employee input - Reflective of City's values - Reflective of prevailing "best practices" The project will include a management and employee communication plan; partnership with the Cityis Human Resources staff, City Manager, Council, and project designee(s); occupational, organizational, and operational familiarization; Position Analysis Questionnaire (PAQ) and job analysis for all classifications; worksite job information interviews; position classification and job title recommendations for all employees and classifications; FLSA designations; updated classification specifications; EZ COMP" A; internal equity and external competitiveness evaluation; salary and benefits 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 support for all included employees in all job classifications. C. PROJECT METHODOLOGY 1. Quaffty 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 COMPIm. Intemally, 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. Z Proiect_Planning _Meetings and Communication Plan Development We will consult with the Human Resources Director 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 plan to 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. SBCA PUBLIC SECTOR PERSONNEL CONSULTANTS 6/19 D. POSITION CLASSIFICATION ANALYSIS 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 (PAQ) to be completed by each employee (or group of employees with identical jobs) in print or electronic format. If the information on the PAQ does not clearly delineate the position's scope of responsibilities, we may return the PAQ 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 We will conduct a worksite job information interview with a representative incumbent of up to 300 job classifications. The purpose of these interviews is to verify the data on the PAQ, 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. SBCA PUBLIC SECTOR PERSONNEL CONSULTANTS 6119 5. Updated Classification Specifications We will prepare an updated ADA/EEO-compliant class 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 ExemptlNon-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 job descriptions 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 E ui 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. SBCA PUBLIC SECTOR PERSONNEL CONSULTANTS 6119 E. SURVEYAND COMPENSATION ANALYSIS 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 - Benchmark Job Class Selection - Compensation Competitiveness Policy - Salary Structure Selection 2. Comprehensive Com ensation Surve - Job Evaluation Method -Salary Plan Linkage - Draft Compensation Plan Review / Critique - Total Compensation Points for Analysis - Project Implementation Plan 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 (to be finalized with City representatives) - City -supported benefits such as health insurance, pension contributions - 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 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. SBCA PUBLIC SECTOR PERSONNEL CONSULTANTS 6119 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 Com edtiveness Compads 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. Com ensation Competitiveness Polic 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 Develo ment We will review the City's current 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 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 budget processes, and estimates of required financial resources. SBCA PUBLIC SECTOR PERSONNEL CONSULTANTS 6/19 F. 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 San Bemardino EZ COMPTm Procedure Guide Z Training Workshop — for City staff in position classification, job evaluation, compensation surveys, and compensation plan design and administration. 3. Electronic Class S eciEcation Libra — we will provide the City with all updated classification specifications in hard copy and electronic library format for internal maintenance. 4. EZ COMPTm — program and project files on one of the City's computers, a custom users manual, and system training for key City and Human Resources staff. 5. Initial Year's Im lementation Warrant Su ort — 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. G. 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 (PAQ) describing their position - Elaborating on their jobs in individual or group job information interviews - Requesting a second review of their position's occupational job classification Receiving information pamphlet/booklet describing the updated salary plan H. 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. SBCA PUBLIC SECTOR PERSONNEL CONSULTANTS 6119 L REPORTS AND PRESENTATIONS 1. Draft and Final Re ort Preparation We will provide the City's project leader(s) with a draft of our report for review and critique, including the classification plan, 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. Z Final Re ort 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 COMPTu 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. SBCA PUBLIC SECTOR PERSONNEL CONSULTANTS 6/19 EXHIBIT A PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND PUBLIC SECTOR PERSONNEL CONSULTANTS This Agreement is made and entered into as of July 17, 2019 by and between the City of San Bernardino, a charter city and municipal corporation organized and operating under the laws of the State of California with its principal place of business at Vanir Tower, 290 North D Street, San Bernardino, CA 92401 ("City"), and Public Sector Personnel Consultants, a Corporation with its principal place of business at 1215 West Rio Salado Parkway, Suite 109 Tempe, Arizona 85281 (hereinafter referred to as "Consultant"). City and Consultant are hereinafter sometimes referred to individually as "Party" and collectively as the "Parties." RECITALS A. City is a public agency of the State of California and is in need of professional services for the following project: Conduct a comprehensive citywide 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. Inco! -)oration of Recitals. The recitals above are true and correct and are hereby incorporated herein by this reference. 2. Services. Consultant shall provide the City with the services described in the Scope of Services attached hereto as Exhibit "A." 3. Professional Practices. All professional services to be provided by Consultant pursuant to this Agreement shall be provided by personnel identified in their proposal. Consultant warrants that Consultant is familiar with all laws that may affect its performance of this Agreement and shall advise City of any changes in any laws that may affect Consultant's performance of this Agreement. Consultant further represents that no City employee will provide any services under this Agreement. 4. Compensation. a. Subject to paragraph 4(b) below, the City shall pay for such services in accordance with the Schedule of Charges set forth in Exhibit "A." b. In no event shall the total amount paid for services rendered by Consultant under this Agreement exceed the sum of $150,000.00. This amount is to cover all related costs, and the City will not pay any additional fees for printing expenses. Consultant may submit invoices to City for approval. Said invoice shall be based on the total of all Consultant's services which have been completed to City's sole satisfaction. City shall pay Consultant's invoice within forty-five (45) days from the date City receives said invoice. The invoice shall describe in detail the services performed and the associated time for completion. Any additional services approved and performed pursuant to this Agreement shall be designated as "Additional Services" and shall identify the number of the authorized change order, where applicable, on all invoices. 5. Additional Work. If changes in the work seem merited by Consultant or the City, and informal consultations with the other party indicate that a change is warranted, it shall be processed in the following manner: a letter outlining the changes shall be forwarded to the City by Consultant with a statement of estimated changes in fee or time schedule. An amendment to this Agreement shall be prepared by the City and executed by both Parties before performance of such services, or the City will not be required to pay for the changes in the scope of work. Such amendment shall not render ineffective or invalidate unaffected portions of this Agreement. 6. Term. This Agreement shall commence on the Effective Date and continue through the completion of services as set forth in Exhibit "A," unless the Agreement is previously terminated as provided for herein ("Term"). 7. Maintenance of Records; Audits. a. Records of Consultant's services relating to this Agreement shall be maintained in accordance with generally recognized accounting principles and shall be made available to City for inspection and/or audit at mutually convenient times for a period of four (4) years from the Effective Date. b. 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. 8. 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. Consultant shall complete the services required hereunder within Term. 9. Delays in Performance. a. Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non-performing Party. For purposes of this Agreement, such circumstances include but are not limited to, abnormal weather conditions; floods; earthquakes; fire; epidemics; war, riots and other civil disturbances; strikes, lockouts, work slowdowns, and other labor disturbances; sabotage or judicial restraint. b. Should such circumstances occur, the non-performing Party shall, within a reasonable time of being prevented from performing, give written notice to the other Party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. 2 10. Compliance with Law. a. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local government, including Cal/OSHA requirements. b. If required, Consultant shall assist the City, as requested, in obtaining and maintaining all permits required of Consultant by federal, state and local regulatory agencies. C. If applicable, Consultant is responsible for all costs of clean up and/ or removal of hazardous and toxic substances spilled as a result of his or her services or operations performed under this Agreement. 11. 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. 12. Conflicts of Interest. During the term of this Agreement, Consultant shall at all times maintain a duty of loyalty and a fiduciary duty to the City and shall not accept payment from or employment with any person or entity which will constitute a conflict of interest with the City. 13. City Business Certificate. Consultant shall, prior to execution of this Agreement, obtain and maintain during the term of this Agreement a valid business registration certificate from the City pursuant to Title 5 of the City's Municipal Code and any and all other licenses, permits, qualifications, insurance, and approvals of whatever nature that are legally required of Consultant to practice his/her profession, skill, or business. 14. AssigMent 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. 15. Independent endent Consultant. 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. 16. Insurance. Consultant shall not commence work for the City until it has provided evidence satisfactory to the City it has secured all insurance required under this section. In addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has secured all insurance required under this section. a. Additional Insured The City of San Bernardino, its officials, officers, employees, agents, and volunteers shall be named as additional insureds on Consultant's and its subconsultants' policies of commercial general liability and automobile liability insurance using the endorsements and forms specified herein or exact equivalents. b. Commercial General Liability (i) The Consultant shall take out and maintain, during the performance of all work under this Agreement, in amounts not less than specified herein, Commercial General Liability Insurance, in a form and with insurance companies acceptable to the City. (ii) Coverage for Commercial General Liability insurance shall be at least as broad as the following: Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 00 01) or exact equivalent. for the following: (iii) Commercial General Liability Insurance must include coverage (1) Bodily Injury and Property Damage (2) Personal Injury/Advertising Injury (3) Premises/Operations Liability (4) Products/Completed Operations Liability (5) Aggregate Limits that Apply per Project (6) Explosion, Collapse and Underground (DCX) exclusion deleted (7) Contractual Liability with respect to this Contract (8) Broad Form Property Damage (9) Independent Consultants Coverage (iv) The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; (3) products/completed operations liability; or (4) contain any other exclusion contrary to the Agreement. (v) The policy shall give City, its elected and appointed 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. C. Automobile Liability 4 (i) At all times during the performance of the work under this Agreement, the Consultant shall maintain Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non -owned and hired vehicles, in a form and with insurance companies acceptable to the City. (ii) Coverage for automobile liability insurance shall be at least as broad as Insurance Services Office Form Number CA 00 01 covering automobile liability (Coverage Symbol 1, any auto). (iii) The policy shall give City, its elected and appointed 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. d. Workers' Compensation/Employer's Liability (i) Consultant certifies that he/she is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and he/she will comply with such provisions before commencing work under this Agreement. (ii) To the extent Consultant has employees at any time during the term of this Agreement, at all times during the performance of the work under this Agreement, the Consultant shall maintain full compensation insurance for all persons employed directly by him/her to carry out the work contemplated under this Agreement, all in accordance with the "Workers' Compensation and Insurance Act," Division IV of the Labor Code of the State of California and any acts amendatory thereof, and Employer's Liability Coverage in amounts indicated herein. Consultant shall require all subconsultants to obtain and maintain, for the period required by this Agreement, workers' compensation coverage of the same type and limits as specified in this section. e. Professional Liabili Errors and Omissions At all times during the performance of the work under this Agreement the Consultant shall maintain professional liability or Errors and Omissions insurance appropriate to its profession, in a form and with insurance companies acceptable to the City and in an amount indicated herein. This insurance shall be endorsed to include contractual liability applicable to this Agreement and shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Consultant. "Covered Professional Services" as designated in the policy must specifically include work performed under this Agreement. The policy must "pay on behalf of the insured and must include a provision establishing the insurer's duty to defend. f. Minimum Policy Limits Required (i) The following insurance limits are required for the Agreement: Combined Single Limit Commercial General Liability $1,000,000 per occurrence/ $2,000,000 aggregate for bodily injury, personal injury, and property damage Automobile Liability $1,000,000 per occurrence for bodily injury and property damage Employer's Liability $1,000,000 per occurrence Professional Liability $1,000,000 per claim and aggregate (errors and omissions) (ii) Defense costs shall be payable in addition to the limits. (iii) Requirements of specific coverage or limits contained in this section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. Any available coverage shall be provided to the parties required to be named as Additional Insured pursuant to this Agreement. g. Evidence Required Prior to execution of the Agreement, the Consultant shall file with the City evidence of insurance from an insurer or insurers certifying to the coverage of all insurance required herein. Such evidence shall include original copies of the ISO CG 00 01 (or insurer's equivalent) signed by the insurer's representative and Certificate of Insurance (Acord Form 25- S or equivalent), together with required endorsements. All evidence of insurance shall 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. h. Policy Provisions Required (i) Consultant shall provide the City at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that the Consultant shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non-payment of the premium. If any of the required coverage is cancelled or expires during the term of this Agreement, the Consultant shall deliver renewal certificate(s) including the General Liability Additional Insured Endorsement to the City at least ten (10) days prior to the effective date of cancellation or expiration. (ii) The Commercial General Liability Policy and Automobile Policy shall each contain a provision stating that Consultant's policy is primary insurance and that any insurance, self-insurance or other coverage maintained by the City or any named insureds shall not be called upon to contribute to any loss. C (iii) The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Consultant shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement. Consultant shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims -made policy with a retroactive date subsequent to the effective date of this Agreement. (iv) All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to provide 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. i. 4ualifying Insurers (i) All policies required shall be issued by acceptable insurance companies, as determined by the City, which satisfy the following minimum requirements: (1) Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than ANII and admitted to transact in the business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law. Additional Insurance Provisions (i) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to this Agreement, including, but not limited to, the provisions concerning indemnification. (ii) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement, WA (iii) The City may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (iv) Neither the City nor the City Council, nor any member of the City Council, nor any of the officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement. k. Subconsultant Insurance Requirements. Consultant shall not allow any subcontractors or subconsultants to commence work on any subcontract until they have provided evidence satisfactory to the City that they have secured all insurance required under this section. Policies of commercial general liability insurance provided by such subcontractors or subconsultants shall be endorsed to name the City as an additional insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage. If requested by Consultant, City may approve different scopes or minimum limits of insurance for particular subcontractors or subconsultants. 17. Indemnification. a. To the fullest extent permitted by law, Consultant shall defend (with counsel reasonably approved by the City), indemnify and hold the City, its elected and appointed officials, officers, employees, agents, and authorized 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, the City Council, members of the City Council, its employees, or authorized volunteers. b. Additional Indemnity Obligations. 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 elected and appointed officials, employees, agents, or authorized volunteers. Consultant shall pay and satisfy any judgment, award or decree that may be rendered against the City, its elected and appointed officials, employees, agents, or authorized 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 elected and appointed officials, employees, agents, or authorized 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 elected and appointed officials, employees, agents, or authorized volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Consultant's obligation to indemnify shall not be restricted to 8 insurance proceeds, if any, received by the City, its elected and appointed officials, employees, agents, or authorized volunteers. 18. California Labor Code Requirements. Consultant is aware of the requirements of California Labor Code Sections 1720 et M. and 1770 et sp., 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 certain "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, 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. It shall be mandatory upon the Consultant and all subconsultants to comply with all California Labor Code provisions, which include but are not limited to prevailing wages, employment of apprentices, hours of labor and debarment of contractors and subcontractors. If 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, the Consultant and all subconsultants performing such Services must be registered with the Department of Industrial Relations. Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants, as applicable. This Project may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant's sole responsibility to comply with all applicable registration and labor compliance requirements. 19. Verification of Em to ent Eligibifity. By executing this Agreement, Consultant verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall require all subconsultants and sub-subconsultants to comply with the same. 20. Laws and Venue. This Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of San Bernardino, State of California. 21. Termination or Abandonment a. City has the right to terminate or abandon any portion or all of the work under this Agreement by giving ten (10) calendar days' written notice to Consultant. In such event, City shall be immediately given title and possession to all original field notes, drawings and specifications, written reports and other documents produced or developed for that portion of the work completed and/or being abandoned. City shall pay Consultant the reasonable value of services rendered for any portion of the work completed prior to termination. If said termination occurs prior to completion of any task for the Project for which a payment request has not been received, the charge for services performed during such task shall be the reasonable value of such services, based on an amount mutually agreed to by City and Consultant of the portion of such task completed but not paid prior to said termination. City shall not be liable for any costs 9 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. 22. Attorneys' Fees. In the event that litigation is brought by any Party in connection with this Agreement, the prevailing Party shall be entitled to recover from the opposing Party all costs and expenses, including reasonable attorneys' fees, incurred by the prevailing Party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof. The costs, salary, and expenses of the City Attorney's Office in enforcing this Agreement on behalf of the City shall be considered as "attorneys' fees" for the purposes of this Agreement. 23. Responsibility for Errors. Consultant shall be responsible for its work and results under this Agreement. Consultant, when requested, shall furnish clarification and/or explanation as may be required by the City's representative, regarding any services rendered under this Agreement at no additional cost to City. In the event that an error or omission attributable to Consultant's professional services occurs, Consultant shall, at no cost to City, provide all other services necessary to rectify and correct the matter to the sole satisfaction of the City and to participate in any meeting required with regard to the correction. 24. Prohibited Emplovinent. Consultant shall not employ any current employee of City to perforin the work under this Agreement while this Agreement is in effect. 25. Costs. Each Party shall bear its own costs and fees incurred in the preparation and negotiation of this Agreement and in the performance of its obligations hereunder except as expressly provided herein. 26. Documents. Except as otherwise provided in "Termination or Abandonment," above, all original field notes, written reports, Drawings and Specifications and other documents, produced or developed for the Project shall, upon payment in full for the services described in this Agreement, be furnished to and become the property of the City. 27. Organization. Consultant shall assign Matthew E. Weatherly as Project Manager. The Project Manager shall not be removed from the Project or reassigned without the prior written consent of the City. 28. Limitation of A Bement. This Agreement is limited to and includes only the work included in the Project described above. 29. 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 the following addresses and shall be effective upon receipt thereof: 10 CITY: City of San Bernardino Vanir Tower, 290 North D Street San Bernardino, CA 92401 Attn: Helen Tran With Copy To: City of San Bernardino Vanir Tower, 290 North D Street San Bernardino, CA 92401 Attn: City Attorney CONSULTANT: Public Sector Personnel Consultants 1215 West Rio Salado Parkway, Suite 109 Tempe, Arizona 85281 Attn: Matthew E. Weatherly 30. Third Party Rights. Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than the City and the Consultant. 31. Equal Qogj tunity Employment. Consultant represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or other interests protected by the State or Federal Constitutions. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. 32. Entire Agreement. This Agreement, including Exhibit "A," 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 is an integrated Agreement. 33. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal, or unenforceable for any reason, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance, and the remaining provisions of this Agreement shall remain in full force and effect. 34. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors in interest, executors, administrators and assigns of each Party to this Agreement. However, Consultant shall not assign or transfer by operation of law or otherwise any or all of its rights, burdens, duties or obligations without the prior written consent of City. Any attempted assignment without such consent shall be invalid and void. 35. Non -Waiver. The delay or failure of either Party at any time to require performance or compliance by the other Party of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought. The 11 waiver of any right or remedy with respect to any occurrence or event shall not be deemed a waiver of any right or remedy with respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver. 36. Time of Essence. Time is of the essence for each and every provision of this Agreement. 37. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain, or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement. 38. Amendments. Only a writing executed by all of the Parties hereto or their respective successors and assigns may amend this Agreement. 39. City's Right to Employ Other Consultants. City reserves its right to employ other consultants, including engineers, in connection with this Project or other projects. 40. Prohibited Interests. Consultant maintains and warrants that it has neither employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no 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. 41. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one single Agreement. 42. Authority. The persons executing this Agreement on behalf of the Parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said Parties and that by doing so, the Parties hereto are formally bound to the provisions of this Agreement. [SIGNATURES ON FOLLOWING PAGE] 12 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND PUBLIC SECTOR PERSONNEL CONSULTANTS IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. CITY OF SAN BERNARDINO CONSULTANT Approved By. Teri fedoux City Manager Signature Approved as to Form: Name ""Approved Form"" Gary D. Saenz City Attorney Attest d By: Georgeann nna, CMC City Clerk 13 Title SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND PUBLIC SECTOR PERSONNEL CONSULTANTS IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. CITY OF SAN BERNARDINO Approved By: Teri Ledoux Interim City Manager Approved as to Form: ****Approved Form**** Gary D. Saenz City Attorney Attested By: Georgeann Hanna, CMC City Clerk 13 PUBLIC SECTOR PERSONNEL CONSULTANTS, INC. �iac� VML� � -- Signature tV 2AQw 1�ea ler Name Vte.S; C-6O'k Title EJIMIT A 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 not exceed the indicated amounts. Maior Proiect Components —Classification and Total Compensation Study - Kick off Meetings, Employee Briefings, Position Classification and $10,000 Job Titling - On -Site Desk Audits / Job Information Interviews (300) $ 30,000 - Updated Classification Specifications (up to 320) -� 30.000 Subtotal, Classification: $ 70,000 - Total Compensation Survey $ 60,000 - From Surveys, Compensation Plan, Draft Reviews, Final Presentations $ 20.000 Subtotal, Compensation: $ 80,000 Total Not -to -Exceed: $150,000 B. FLEXIBLE WORKPLAN, NEGOTL4BLE TOTAL COST, 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. 14 EXHIBIT B SUMMARY OF SERVICES FOR THE CITY OF SAN BERNARDINO PUBLIC SECTOR PERSONNEL CONSULTANTS (PSPQ 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 the City's Human Resources Staff and project designee(s) 2. Policy input and project direction meeting and briefing with Council, Human Resources 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 class specifications and compensation plans 6. Organizational familiarization by review of City organization charts, budgets, and annual reports 7. Position Analysis Questionnaire (PAQ) customized for gathering City employee occupation data 8. Meetings to distribute and explain the PAQ and the project for all City officials and employees 9. Worksite job desk audits / field observations with representatives of each class (300 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 specs for each City job classification (est. 300, only bill what we write) 14. Review and comment on employee feedback / appeals to position classification recommendations Custom and Com rehensive 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 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. Computation of extent City's compensation offerings vary from external prevailing rates and practices 21. Review of competitiveness analysis with Human Resources, 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 Human Resources, project leaders _Communication of Results and Implementation Strategies 27. Preparation and presentation of 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 COMP'"° program files on a Human Resources 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 SBCA PUBLIC SECTOR PERSONNEL CONSULTANTS 6/19 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 - Externally competitive - Readily understood - Easily updated & maintained - Legally compliant & defensible B. SCOPE OF THE PROJECT Financially responsible - Efficiently administered - Inclusive of employee input - Reflective of City's values - Reflective of prevailing "best practices" The project will include 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 (PAQ) and job analysis for all classifications; worksite job information interviews; position classification and job title recommendations for all employees and classifications; FLSA designations; updated classification specifications; EZ COMPTm; internal equity and external competitiveness evaluation; salary and benefits 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 support for all included employees in all job classifications. 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 COMPTm. 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 Citys organizational values. Z Project Planning Meetings and Communication Plan Development We will consult with the Human Resources Director 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 plan to 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. SBCA PUBLIC SECTOR PERSONNEL CONSULTANTS 6/19 D. POSITION CLASSIFICATION ANALYSIS 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 (PAQ) to be completed by each employee (or group of employees with identical jobs) in print or electronic format. If the information on the PAQ does not clearly delineate the position's scope of responsibilities, we may return the PAQ to the position's incumbent for additional information, or focus on the data gap during a worksite job information interview. 2. Emir/ovee Worksite Job Information Interviews We will conduct a worksite job information interview with a representative incumbent of up to 300 job classifications. The purpose of these interviews is to verify the data on the PAQ, 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 Detennination 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 Class cation 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. SBCA PUBLIC SECTOR PERSONNEL CONSULTANTS 6119 5. Updated Classiffication SpeciricatiOns We will prepare an updated ADA/EEO-compliant class 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 job descriptions with the City's Project Team and respective department heads to identify possible errors, obtain feedback, and solicit suggestions for clarification. 7. Various ApRroaches to Ensure Intemal Equi 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. SBCA PUBLIC SECTOR PERSONNEL CONSULTANTS 6/19 E SURVEYAND COMPENSATION ANALYSIS 1. City Involvement in Compensation Plan Develo ment 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 2. Comprehensive Compensation Surve - Job Evaluation Method -Salary Plan Linkage - Draft Compensation Plan Review / Critique - Total Compensation Points for Analysis - Project Implementation Plan 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 (to be finalized with City representatives) - City -supported benefits such as health insurance, pension contributions - 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 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. SBCA PUBLIC SECTOR PERSONNEL CONSULTANTS 6119 I Prevailing Rates Calculation We will consolidate the compensation data from all sources, enter the information into the EZ COUP' 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 Com arison 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 Develo ment We will review the City's current 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 Develo ment 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 Gasses - its current relationship to similar or occupationally related job classes - the 159/6 guideline for salary range separation between sequential job classes - the 25% guideline for salary separation of a department head job class 8. Implementation Plan Develo ment 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 budget processes, and estimates of required financial resources. SBCA PUBLIC SECTOR PERSONNEL CONSULTANTS 6119 F. 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 San Bernardino 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 S ecocation Libra — we will provide the City with all updated classification specifications in hard copy and electronic library format for internal maintenance. 4. EZ COMPTm — 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 Implementadon Warranty Su ort — 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. G. 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 (PAQ) describing their position - Elaborating on their jobs in individual or group job information interviews Requesting a second review of their position's occupational job classification Receiving information pamphletlbooklet describing the updated salary plan H. 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. SBCA PUBLIC SECTOR PERSONNEL CONSULTANTS 6119 L REPORTS AND PRESENTATIONS 1. Draft and Final Report Prearadon We will provide the City's project leader(s) with a draft of our report for review and critique, including the classification plan, 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 COMPI 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 Warrant 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. SBCA PUBLIC SECTOR PERSONNEL CONSULTANTS 6119