1 AGREEMENT FOR CONSULTING SERVICES
BETWEEN THE CITY OF REDONDO BEACH
AND RALPH ANDERSEN & ASSOCIATES
THIS AGREEMENT FOR CONSULTING SERVICES (this "Agreement") is made between the City of Redondo Beach, a Chartered Municipal Corporation ("City") and Ralph Andersen & Associates, a California C corporation ("Consultant" or “Contractor”).
The parties hereby agree as follows:
1. Description of Project or Scope of Services. The project description or scope of services to be provided by Consultant, and any corresponding responsibilities of City, or services required to be performed by City are set forth in Exhibit "A."
2. Term and Time of Completion. Consultant shall commence and complete the project or services described in Exhibit "A" in accordance with the schedule set forth in Exhibit "B".
3. Compensation. City agrees to pay Consultant for work performed in accordance with Exhibit "C".
* * * * *
GENERAL PROVISIONS
1. Independent Contractor. Consultant acknowledges, represents and warrants that Consultant is not a regular or temporary employee, officer, agent, joint venturer or partner of the City, but rather an independent contractor. This Agreement shall not be construed as a contract of employment. Consultant shall have no rights to any benefits which accrue to City employees unless otherwise expressly provided in this Agreement. Due to the independent contractor relationship created by this Agreement, the City shall not withhold state or federal income taxes, the reporting of which shall be Consultant's sole responsibility.
2. Brokers. Consultant acknowledges, represents and warrants that Consultant has not hired, retained or agreed to pay any entity or person any fee, commission, percentage, gift, or any other consideration, contingent upon or resulting from the award or making of this Agreement.
3. City Property. All plans, drawings, reports, calculations, data, specifications, videos, graphics or other materials prepared for or obtained pursuant to this Agreement shall upon request be delivered to the City within a reasonable time, and the rights thereto shall be deemed assigned to the City. If applicable, Consultant shall prepare check prints upon request. Said plans, drawings, reports, calculations, data, specifications, videos, graphics or other materials, shall be 2 specific for the project herein and shall not be used by the City for any other project without Consultant's consent. Notwithstanding the foregoing, Consultant shall not be obligated to assign any proprietary software or data developed by or at the direction of Consultant for Consultant's own use; provided, however, that Consultant shall, pursuant to Paragraph 14 below, indemnify, defend and hold the City harmless from and against any discovery or Public Records Act request seeking the disclosure of any such proprietary software or data.
4. Inspection. If the services set forth in Exhibit "A" shall be performed on City or other public property, the City shall have the right to inspect such work without notice. If such services shall not be performed on City or other public property, the City shall have the right to inspect such work upon reasonable notice. Inspections by the City shall not relieve or minimize the responsibility of Consultant to conduct any inspections Consultant has agreed to perform pursuant to the terms of this Agreement. Consultant shall be solely liable for said inspections performed by Consultant. Consultant shall certify in writing to the City as to the completeness and accuracy of each inspection required to be conducted by Consultant hereunder.
5. Services. The project or services set forth in Exhibit "A" shall be performed to the full satisfaction and approval of the City. In the event that the project or services set forth in Exhibit "A" are itemized by price in Exhibit "C", the City in its sole discretion may, upon notice to Consultant, delete certain items or services set forth in Exhibit "A", in which case there shall be a corresponding reduction in the amount of compensation paid to Consultant. City shall furnish Consultant to the extent available, with any City standards, details, specifications and regulations applicable to the Project and necessary for the performance of Consultant's services hereunder. Notwithstanding the foregoing, any and all additional data necessary for design shall be the responsibility of Consultant.
6. Records. Consultant, including any of its subcontractors shall maintain full and complete documents and records, including accounting records, employee time sheets, work papers, and correspondence pertaining to the project or services set forth in Exhibit "A". Consultant, including any of its subcontractors shall make such documents and records available for City review or audit upon request and reasonable notice, and shall keep such documents and records, for at least four (4) years after Consultant's completion of performance of this Agreement. Copies of all pertinent reports and correspondence shall be furnished to the City for its files.
7. Changes and Extra Work. All changes and/or extra work under this Agreement shall be provided for by a subsequent written amendment executed by City and Consultant.
8. Additional Assistance. If this Agreement requires Consultant to prepare plans and specifications, Consultant shall provide assistance as necessary to resolve any 3 questions regarding such plans and specifications that may arise during the period of advertising for bids, and Consultant shall issue any necessary addenda to the plans and specifications as requested. In the event Consultant is of the opinion that City's requests for addenda and assistance is outside the scope of normal services, the parties shall proceed in accordance with the changes and extra work provisions of this Agreement.
9. Professional Ability. Consultant acknowledges, represents and warrants that Consultant is skilled and able to competently provide the services hereunder, and possesses all professional licenses, certifications, and approvals necessary to engage in its occupation. City has relied upon the professional ability and training of Consultant as a material inducement to enter into this Agreement. Consultant shall perform in accordance with generally accepted professional practices and standards of Consultant's profession.
10. Business License. Consultant shall obtain a Redondo Beach Business License before performing any services required under this Agreement. The failure to so obtain such license shall be a material breach of this Agreement and grounds for immediate termination by City; provided, however, that City may waive the business license requirement in writing under unusual circumstances without necessitating any modification of this Agreement to reflect such waiver.
11. Termination Without Default. Notwithstanding any provision herein to the contrary, the City may, in its sole and absolute discretion and without cause, terminate this Agreement at any time prior to completion by Consultant of the project or services hereunder, immediately upon written notice to Consultant. In the event of any such termination, Consultant shall be compensated for: (1) all authorized work satisfactorily performed prior to the effective date of termination; and (2) necessary materials or services of others ordered by Consultant for this Agreement, prior to Consultant’s receipt of notice of termination, irrespective of whether such materials or services of others have actually been delivered, and further provided that Consultant is not able to cancel such orders. Compensation for Consultant in such event shall be determined by the City in accordance with the percentage of the project or services completed by Consultant; and all of Consultant's finished or unfinished work product through the time of the City's last payment shall be transferred and assigned to the City. In conjunction with any termination of this Agreement, the City may, at its own expense, make copies or extract information from any notes, sketches, computations, drawings, and specifications or other data, whether complete or not.
12. Termination in the Event of Default. Should Consultant fail to perform any of its obligations hereunder, within the time and in the manner provided or otherwise violate any of the terms of this Agreement, the City may immediately terminate this Agreement by giving written notice of such termination, stating the reasons for such termination. Consultant shall be compensated as provided immediately above, provided, however, there shall be deducted from such amount the amount 4 of damages if any, sustained by the City by virtue of Consultant's breach of this Agreement.
13. Conflict of Interest. Consultant acknowledges, represents and warrants that Consultant shall avoid all conflicts of interest (as defined under any federal, state or local statute, rule or regulation, or at common law) with respect to this Agreement. Consultant further acknowledges, represents and warrants that Consultant has no business relationship or arrangement of any kind with any City official or employee with respect to this Agreement. Consultant acknowledges that in the event that Consultant shall be found by any judicial or administrative body to have any conflict of interest (as defined above) with respect to this Agreement, all consideration received under this Agreement shall be forfeited and returned to City forthwith. This provision shall survive the termination of this Agreement for one (1) year.
14. Indemnity. To the maximum extent permitted by law, Consultant hereby agrees, at its sole cost and expense, to defend protect, indemnify, and hold harmless the City, its elected and appointed officials, officers, employees, volunteers, attorneys, and agents (collectively “Indemnitees”) from and against any and all claims, including, without limitation, claims for bodily injury, death or damage to property, demands, charges, obligations, damages, causes of action, proceedings, suits, losses, stop payment notices, judgments, fines, liens, penalties, liabilities, costs and expenses of every kind and nature whatsoever, in any manner arising out of, incident to, related to, in connection with or arising from any act, failure to act, error or omission of Consultant’s performance or work hereunder (including any of its officers, agents, employees, Subcontractors) or its failure to comply with any of its obligations contained in the Agreement, or its failure to comply with any current or prospective law, except for such loss or damage which was caused by the sole negligence or willful misconduct of the City. Consultant’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Consultant or Indemnitees. This indemnification obligation shall survive this Agreement and shall not be limited by any term of any insurance policy required under this Agreement.
a. Nonwaiver of Rights. Indemnitees do not and shall not waive any rights that they may possess against Consultant because the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement.
b. Waiver of Right of Subrogation. Consultant, on behalf of itself and all parties claiming under or through it, hereby waives all rights of subrogation and contribution against the Indemnitees.
15. Insurance. Consultant shall comply with the requirements set forth in Exhibit "D." Insurance requirements that are waived by the City's Risk Manager do not require amendments or revisions to this Agreement.
5 16. Non-Liability of Officials and Employees of the City. No official or employee of the City shall be personally liable for any default or liability under this Agreement.
17. Compliance with Laws. Consultant shall comply with all federal, state and local laws, statutes, ordinances, rules and regulations, and the orders and decrees of any courts or administrative bodies or tribunals, with respect to this Agreement, including without limitation all environmental laws, employment laws, and nondiscrimination laws.
18. Limitations upon Subcontracting and Assignment. Consultant acknowledges that the services which Consultant shall provide under this Agreement are unique, personal services which, except as otherwise provided herein, Consultant shall not assign or sublet to any other party without the prior written approval of City, which approval may be withheld in the City's sole and absolute discretion. In the event that the City, in writing, approves any assignment or subletting of this Agreement or the retention of subcontractors by Consultant, Consultant shall provide to the City upon request copies of each and every subcontract prior to the execution thereof by Consultant and subcontractor. Any attempt by Consultant to assign any or all of its rights under this Agreement without first obtaining the City's prior written consent shall constitute a material default under this Agreement.
The sale, assignment, transfer or other disposition, on a cumulative basis, of twenty-five percent (25%) or more of the ownership interest in Consultant or twenty-five percent (25%) or more the voting control of Consultant (whether Consultant is a corporation, limited liability company, partnership, joint venture or otherwise) shall constitute an assignment for purposes of this Agreement. Further, the involvement of Consultant or its assets in any transaction or series of transactions (by way of merger, sale, acquisition, financing, transfer, leveraged buyout or otherwise), whether or not a formal assignment or hypothecation of this Agreement or Consultant’s assets occurs, which reduces Consultant’s assets or net worth by twenty-five percent (25%) or more shall also constitute an assignment for purposes of this Agreement.
19. Subcontractors. Consultant shall provide properly skilled professional and technical personnel to perform any approved subcontracting duties. Consultant shall not engage the services of any person or persons now employed by the City without the prior written approval of City, which approval may be withheld in the City's sole and absolute discretion.
20. Integration. This Agreement constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes any previous oral or written agreement; provided, however, that correspondence or documents exchanged between Consultant and City may be used to assist in the interpretation of the exhibits to this Agreement.
6 21. Amendment. This Agreement may be amended or modified only by a subsequent written amendment executed by both parties.
22. Conflicting Provisions. In the event of a conflict between the terms and conditions of this Agreement and those of any exhibit or attachment hereto, this Agreement proper shall prevail. In the event of a conflict between the terms and conditions of any two or more exhibits or attachments hereto, those prepared by the City shall prevail over those prepared by Consultant.
23. Non-Exclusivity. Notwithstanding any provision herein to the contrary, the services provided by Consultant hereunder shall be non-exclusive, and City reserves the right to employ other contractors in connection with the project.
24. Exhibits. All exhibits hereto are made a part hereof and incorporated herein by reference; provided, however, that any language in Exhibit "A" which does not pertain to the project description, proposal, or scope of services (as applicable) to be provided by Consultant, or any corresponding responsibilities of City, shall be deemed extraneous to, and not a part of, this Agreement.
25. Time of Essence. Time is of the essence of this Agreement.
26. Confidentiality. To the extent permissible under law, Consultant shall keep confidential its obligations hereunder and the information acquired during the performance of the project or services hereunder.
27. Third Parties. Nothing herein shall be interpreted as creating any rights or benefits in any third parties. For purposes hereof, transferees or assignees as permitted under this Agreement shall not be considered "third parties."
28. Governing Law and Venue. This Agreement shall be construed in accordance with the laws of the State of California without regard to principles of conflicts of law.
Venue for any litigation or other action arising hereunder shall reside exclusively in the Superior Court of the County of Los Angeles, Southwest Judicial District.
29. Attorneys’ Fees. In the event either party to this Agreement brings any action to enforce or interpret this Agreement, the prevailing party in such action shall be entitled to reasonable attorneys’ fees (including expert witness fees) and costs.
This provision shall survive the termination of this Agreement.
30. Claims. Any claim by Consultant against City hereunder shall be subject to Government Code §§ 800 et seq. The claims presentation provisions of said Act are hereby modified such that the presentation of all claims hereunder to the City shall be waived if not made within six (6) months after accrual of the cause of action.
7 31. Interpretation. Consultant acknowledges that it has had ample opportunity to seek legal advice with respect to the negotiation of this Agreement. This Agreement shall be interpreted as if drafted by both parties.
32. Warranty. In the event that any product shall be provided to the City as part of this Agreement, Consultant warrants as follows: Consultant possesses good title to the product and the right to transfer the product to City; the product shall be delivered to the City free from any security interest or other lien; the product meets all specifications contained herein; the product shall be free from material defects in materials and workmanship under normal use for a period of one (1) year from the date of delivery; and the product shall be fit for its intended purpose(s).
Notwithstanding the foregoing, consumable and maintenance items (such as light bulbs and batteries) shall be warranted for a period of thirty (30) days from the date of delivery. All repairs during the warranty period shall be promptly performed by Consultant, at Consultant's expense, including shipping. Consultant shall not be liable under this warranty for an amount greater than the amount set forth in Exhibit "C" hereto.
33. Severance. Any provision of this Agreement that is found invalid or unenforceable shall be deemed severed, and all remaining provisions of this Agreement shall remain enforceable to the fullest extent permitted by law.
34. Authority. City warrants and represents that upon City Council approval, the Mayor of the City of Redondo Beach is duly authorized to enter into and execute this Agreement on behalf of City. The party signing on behalf of Consultant warrants and represents that he or she is duly authorized to enter into and execute this Agreement on behalf of Consultant, and shall be personally liable to City if he or she is not duly authorized to enter into and execute this Agreement on behalf of Consultant.
35. Waiver. The waiver by the City of any breach of any term or provision of this Agreement shall not be construed as a waiver of any subsequent breach.
SIGNATURES FOLLOW ON NEXT PAGE
8 IN WITNESS WHEREOF, the parties have executed this Agreement in Redondo Beach, California, as of this 5th day of July, 2022.
CITY OF REDONDO BEACH Ralph Andersen & Associates
A California C Corporation
__ __ By: _______________________
William C. Brand, Mayor Name: Heather Renschler
Title: President/CEO
ATTEST: APPROVED:
__________________________ __________________________
Eleanor Manzano, City Clerk Diane Strickfaden, Risk Manager APPROVED AS TO FORM:
__ ____
Michael W. Webb, City Attorney
9 EXHIBIT "A"
PROJECT DESCRIPTION AND/OR SCOPE OF SERVICES
Project Understanding
In response to organizational and other changes, the City of Redondo Beach is interested in conducting a Targeted Classification and Compensation Study involving up to 25 benchmark positions, or more if identified by the City and remaining within the project cost.
To ensure that the City’s objectives are met, the following key study components and anticipated end-products shall be performed by Ralph Andersen & Associates.
Conduct a meeting with City representatives at project initiation to confirm the study goals, objectives, and deliverables
Conduct briefing sessions with employees at the beginning of the study to explain the study process and answer questions
Conduct an extensive review of background documents
Distribute job analysis questionnaires and conduct supplemental interviews with employees in the study
Develop classification recommendations, FLSA designations, and update job descriptions
Review historical practices and recommended survey agencies, survey job classifications, and identify data collection needs
Conduct a custom total compensation survey (salaries and benefits) and analyze the market data
Conduct internal relationship analyses, survey benchmarking, and develop salary range recommendations for all City job classifications
Develop draft and final reports incorporating all study recommendations and supporting data including implementation plans
Conduct a classification and compensation review and appeal process to fully resolve all classification issues and recommendations
Present the findings to managers, employees, labor representatives, project committees, and the City Council, as needed.
10 Project Tasks
Task 1 – Project Kick-off Meetings
Consultant shall begin all administrative and coordinative efforts in support of the project initiation meetings and briefings. Among other things, this shall include:
Preparation of a project schedule
Identification and review of background data including existing class specifications, organization charts, budgets, employee listings, salary schedules, and related information
Identification of scheduling parameters for meetings and interaction with various City employee groups.
This initial step in the study process will be used to identify significant classification and compensation concerns that should be addressed during the course of the study. Consultant shall discuss the best approach for identifying issue areas including an independent assessment of the current classification plan by the Consultant, input by human resources staff, and input from managers, labor representatives, or other identified stakeholders.
Consultant shall meet with the City’s project manager and other staff as appropriate to ensure a full understanding of project objectives and deliverables.
The project work plan and schedule will be adapted to achieve the objectives.
Initial project meetings may also include employee orientation and briefing sessions in relation to the study process, timing, and objectives.
Task 2 – Employees Complete Questionnaires
The Job Analysis Questionnaire (JAQ) provides employees with an opportunity to describe the duties and responsibilities of their positions with an emphasis on job related information such as knowledge, skills, abilities, and physical capabilities required to perform the work assigned. Space is also provided on the questionnaire for employees to make any additional comments they wish. The completed questionnaires are reviewed by supervisory and managerial staff, with space provided for their comments. A short form questionnaire will be available to all employees to provide updated information regarding assigned duties. A more detailed questionnaire will be used for positions and classifications where specific issues or questions have been identified. A sample JAQ is provided in Appendix B.
Task 3 – Conduct Job Analysis Interviews
Prior to conducting interviews, Consultant shall thoroughly review the completed questionnaires. Consultant shall evaluate position duties and responsibilities, classification series, class titles, job families, reporting relationships, and internal relationships. Based on this preliminary analysis, the project team will identify areas of concern that will be clarified or probed during the job analysis interviews.
Consultant shall assume responsibility for the preparation of the employee interview schedule. The City’s Project Manager, or designee, will be responsible for scheduling interview rooms, notifying employees, and related coordinative activities. Consultant shall interview at least one person from each surveyed job 11 classification, all employees where significant position classification issues are identified, and a sampling of employees beyond the issue areas.
Task 4 – Prepare and Review Preliminary Classification Report With the completion of the employee interviews, a preliminary classification report shall be prepared. Key components of the preliminary report shall include:
Identification of all key issues identified in the classification analysis Recommended job titles
Employee allocations.
In preparing the preliminary classification report, each position studied is analyzed according to the criteria set forth at initial review meetings. Such criteria typically will include factors relating to job knowledge, experience, training, decision making, management control, working conditions, and outside contacts. Like positions are grouped into tentative classes forming the basis for initial class definition.
The preliminary classification report shall be reviewed with key management staff prior to preparing class specifications. Because the concepts provide the foundation for the resulting classification plan, management review of the recommendations in their respective areas of responsibility is essential.
Task 5 – Prepare Class Specifications
Once the preliminary classification recommendations have been reviewed, Consultant shall revise, update, or create new class specifications based on the issues identified in previous tasks. The City’s current job description format will be maintained as appropriate. The class specifications shall be drafted and undergo a management/employee review process to ensure they accurately and adequately describe the scope of responsibilities. Once finalized, they shall be provided to the City in both an electronic and hard-copy format. This process shall include FLSA analysis and designation.
Task 6 – Undertake Management/Employee Review Process
As an important component of the overall classification study, Consultant’s project team shall provide additional opportunities for employee participation and input through the conduct of an employee review process. These steps will (1) build and facilitate the City’s understanding of the newly developed classification plan, (2) enhance employee commitment and understanding of the recommended system by giving each employee the opportunity to comment on the system and (3) ensure that the consultants receive as much information as possible regarding the nature and responsibilities of the various positions in order to make appropriate and equitable final classification recommendations. The various subtasks within this portion of the project are as follows.
Task 6.1 – Distribute class specifications to all employees included within the study scope – Each employee will receive an individual copy of the specification for the class to which his/her position has been allocated along with a Position Allocation Notice and Employee Review Form. This will provide 12 employees with an opportunity to review and comment on their proposed classification and allocation. These comments will then be forwarded to management for review and comment.
Task 6.2 – Review written comments received from employees – All written comments or suggestions from employees regarding the recommended class plan will be thoroughly reviewed and analyzed by the Consultant’s project team. Based upon written responses received, Consultant’s project team shall incorporate appropriate suggested revisions into the final classification plan.
Task 6.3 – Conduct follow-up telephone interviews as necessary – Based upon the analysis of written comments forwarded to Consultant’s project team and where Consultant needs further information prior to finalizing recommendations, follow-up interviews will be conducted by Consultant with individual employees.
This step will further clarify and refine any remaining problems or issues.
This task will further include any additional informal appeal processes/steps established or desired by the City.
Task 7 – Finalize the Classification Recommendations
With the completion of the employee appeal process, Consultant shall finalize all classification study recommendations. Supporting the finalization of the classification plan, each employee who submitted a notice for review will receive a direct response from Consultant. This response shall specifically outline the Consultant’s understanding of the employee’s concern, specify the steps taken to resolve the concern, and indicate to the employee the substance of the Consultant’s final recommendation.
Task 8 – Discuss and Document Compensation Policy
The City’s compensation policy directly impacts all study end-products resulting from the compensation components of the analysis. As a starting point for this phase of the study, therefore, we propose that the Consultant’s project team meet with key management staff to clarify and confirm the City’s compensation policy.
Important considerations to be discussed include historical practices, recruitment and retention issues, pros and cons of the current compensation system, and reliance on external market data versus internal equity for purposes of setting salaries. Consultant will work with appropriate City representatives to determine comparison agencies and the scope of compensation data to be collected.
Consultant shall perform the tasks necessary to identify comparable employers and conduct a custom market survey.
Consultant’s analysis of the potential and recommended survey employers shall be documented in a memorandum report after consultation with appropriate City representatives. If desired, Consultant can conduct a workshop session that identifies labor market selection parameters, options, and pros/cons of different market approaches. The draft labor market recommendations will be reviewed by appropriate City representatives so that all questions and issues are resolved. In that these decisions directly impact the parameters of the market survey, as well 13 as the design and structure of the resulting compensation plan, Consultant recommends that these study tasks occur prior to the collection and analysis of the market data.
Task 9 – Collect Compensation Data
After the compensation policy discussion, Consultant shall collect and analyze the compensation data. Consultant’s proposed approach shall include:
An initial contact to each labor market employer included in the study to explain the purpose and scope of the survey and confirm cooperation.
The collection and analysis of source documents from each survey agency including position control documents, job descriptions, salary schedules, benefit summaries, and MOUs.
The confirmation of all compensation data through telephone calls, email, and other means. This will assure that comparability is established and that all compensation data is factual and complete.
The compensation survey elements shall be discussed and confirmed with the City before the survey is initiated.
Task 10 – Compile and Format Compensation Data
The salary data, once collected and thoroughly reviewed for completeness and accuracy, shall be appropriately formatted and the results tabulated in a consistent and uniform manner by Consultant. The analysis shall include pay structure trends and base salary analysis to ensure all appropriate comparison criteria is available for developing recommendations. Through the use of spreadsheet applications developed by Consultant, it is anticipated that standard formulas will be applied in the calculation of the survey data mean, median, and selected percentiles, with the corresponding percentage relationship to the market data also calculated. Data presentation shall be customized to fit the City’s objectives.
Task 11 – Audit and Finalize Compensation Data
Prior to developing specific salary recommendations, Consultant shall thoroughly review and audit the collected survey data. This shall include a detailed analysis of data reliability, comparability, statistical validity, and consistency. This audit will be conducted by the Consultant’s Project Manager independent of the consultant who collected that data. This will ensure that the most accurate and defensible survey data is utilized in comparing the City’s compensation plan to the pay practices of the labor market. This analysis shall also include the preparation of graphs and other presentation materials to aide in understanding the market relationships broken down by employee/bargaining group.
Task 12 – Conduct Internal Relationship Analysis
This task shall include the development and application of an appropriate job evaluation methodology in order to meet with the City’s policy objectives and comply with local laws, rules, and regulations. Consultant has a number of job evaluation systems available and will recommend and adapt the methodology that best aligns with the City’s historical practices and policy objectives. 14 Using the results of the job evaluation analysis, Consultant shall analyze internal pay relationships. The internal pay relationship analysis will involve a number of steps in order to arrive at sound and equitable relationships for the new compensation plan. Among others, the most important of these will include:
Analysis of existing and historical pay relationships
Development of consistent, uniform, and realistic guidelines for determining internal relationships
Recommendation of equitable and appropriate internal relationship differentials based on the above.
In developing consistent internal relationship guidelines, the results of the job evaluation tasks will be used to determine an equitable pay structure. Since the balance of market values versus internal values can be a policy issue, options and methodologies for achieving an appropriate balance of internal and external salary equity shall be reviewed with the City before developing the salary range recommendations.
Task 13 – Develop Salary Recommendations
Based upon the results of the internal relationships analysis and the labor market survey, Consultant shall develop salary recommendations for all job classes included as a part of the study process. These salary recommendations will clearly document the means of determining the appropriate pay range and the computation of the dollar and percentage difference between the current maximum salary and the recommended maximum salary.
Before finalizing the recommendations, a careful audit of the results shall be undertaken to ensure that internal salary compression or compaction does not result.
Task 14 – Develop Implementation Strategy Options and Compute Implementation Costs
Recognizing that public agencies often have limited funds available for implementation, Consultant shall develop several strategies for implementing the recommended salary structure. Such strategies shall address:
The placement of individual employees into ranges and steps Implementation phasing according to the needs and priorities of the City Integration of the study recommendations with the balance of the City’s human resource management system including recruitment, selection, and performance appraisal.
The cost estimates will reflect City-wide impacts, as well as impacts on individual employees. The cost estimates will serve as a basis for the City to make necessary policy decisions to implement the compensation system in an orderly and effective manner.
Task 15 – Prepare and Review Preliminary Report
The Preliminary Report documents all classification and compensation study recommendations and the supporting information used for developing the recommendations. Specifically, the Preliminary Report shall include the following:
15 The City’s documented compensation policy including survey agencies and survey classifications
Results of the labor market salary survey using tables and graphs Documentation of selected benchmark classifications and the related job families Appendices containing detailed labor market data sheets, recommended salary schedules, and supporting documentation.
Consultant shall conduct an in-depth review of the Preliminary Compensation Report with the City. Any needed corrections, clarifications, or modifications will be discussed at this time.
Review of the Draft Compensation Report shall also include an appeal process that meets the City’s objectives. Employees, managers, and/or labor representatives will be able to submit specific issues and comments which will be researched, analyzed, and documented by the consultants. Consultant shall provide the City with a written response to these issues as well as any changes in Consultant’s draft recommendations.
Task 16 – Prepare and Submit Final Reports
The Final Reports shall incorporate any appropriate revisions identified and submitted during the review of the preliminary reports and will serve as the administrative and procedural manuals for updating and maintaining the classification and compensation plans. The submittal of final reports shall also include on-site presentations to managers, labor representatives, and the City Council. It is not uncommon for a series of draft reports to be prepared, each incrementally addressing feedback and policy direction by the City. Submittal of the final reports shall also include training of City staff as needed. 16 EXHIBIT "B"
SCHEDULE FOR COMPLETION
Term. This Agreement shall commence on July 6, 2022 and shall continue until December 21, 2022, unless otherwise terminated as herein provided. 17 EXHIBIT "C"
COMPENSATION
AMOUNT. The total fixed cost for professional service fees and non-travel expenses to conduct the Classification and Compensation Study, as proposed, shall be $33,500. The cost of professional services is based upon the project as described in the work plan and is a “fixed fee” regardless of which member of Consultant’s team performs the task and/or the number of hours needed to complete a particular element of the study.
The proposed professional services costs are based on the following hourly rates:
Project Manager - $155
Project Consultant - $135
Research/Support Staff - $85
The total contract cost is not to exceed $40,000.
Due to continued Covid-19 restrictions, Consultant has completed almost 50 classification and compensation studies using virtual meeting platforms such as Zoom and Microsoft Teams. For cost control and efficiency, Consultant’s cost assumes virtual meetings will be used for kick-off meetings, employee briefing sessions, employee interviews, and the review and presentation of draft and final reports.
On-site meetings can be conducted as needed, but would be billed separately on a per-meeting basis. It is anticipated that the cost of an on-site meeting would not exceed $1400 in professional service fees (portal-to-portal) and $700 in travel expenses.
Method of Payment. Consultant shall provide invoices to City for approval and payment. Invoices must be adequately detailed, based on accurate records, and in a form reasonably satisfactory to City. Consultant may be required to provide back-up material upon request.
SCHEDULE FOR PAYMENT
Project invoicing will be completed monthly based on the percentage completion of the project. If the scope of the analysis creates budget problems for the City, or if additional analysis is desired, parties are willing to review the work plan and adjust it and the cost so that it is mutually satisfactory. 18 NOTICE. Written notices to City and Consultant shall be given by registered or certified mail, postage prepaid and addressed to or personally served on the following parties.
Consultant
Doug Johnson
Ralph Andersen & Associates
5800 Stanford Ranch Road, Ste 410
Rocklin, CA 95765
City
City of Redondo Beach
Diane Strickfaden, Human Resources Director
415 Diamond Street
Redondo Beach, CA 90277
All notices, including notices of address changes, provided under this Agreement are deemed received on the third day after mailing if sent by registered or certified mail. Changes in the respective address set forth above may be made from time to time by any party upon written notice to the other party. 19 EXHIBIT “D”
INSURANCE REQUIREMENTS FOR CONSULTANTS
Without limiting Consultant’s indemnification obligations under this Agreement, Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees.
Minimum Scope of Insurance
Coverage shall be at least as broad as:
Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001).
Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto).
Workers’ Compensation insurance as required by the State of California.
Employer’s Liability Insurance.
Minimum Limits of Insurance
Consultant shall maintain limits no less than:
General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. The general aggregate limit shall apply separately to this project.
Automobile Liability: $1,000,000 per accident for bodily injury and property damage.
Employer’s Liability: $1,000,000 per accident for bodily injury or disease.
Deductibles and Self-Insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by the City.
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 officers, officials, employees and volunteers or (2) the Consultant shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration and defense expenses.
20 Other Insurance Provisions
The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:
Additional Insured Endorsement:
General Liability: The City, its officers, elected and appointed officials, employees, and volunteers shall be covered as insureds with respect to liability arising out of work performed by or on behalf of the Consultant. General liability coverage can be provided in the form of an endorsement to the Consultant’s insurance, or as a separate owner’s policy.
Automobile Liability: The City, its officers, elected and appointed officials, employees, and volunteers shall be covered as insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Consultant.
For any claims related to this project, the Consultant’s insurance coverage shall be primary insurance as respects the City, its officers, elected and appointed officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Consultant’s insurance and shall not contribute with it.
Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City.
Each insurance policy shall be endorsed to state that the inclusion of more than one insured shall not operate to impair the rights of one insured against another insured, and the coverages afforded shall apply as though separate policies had been issued to each insured.
Each insurance policy shall be in effect prior to awarding the contract and each insurance policy or a successor policy shall be in effect for the duration of the project. The maintenance of proper insurance coverage is a material element of the contract and failure to maintain or renew coverage or to provide evidence of renewal may be treated by the City as a material breach of contract on the Consultant’s part.
Acceptability of Insurers
Insurance shall be placed with insurers with a current A.M. Best’s rating of no less than A:VII and which are authorized to transact insurance business in the State of California by the Department of Insurance.
21 Verification of Coverage
Consultant shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on the City authorized forms provided with the contract specifications. Standard ISO forms which shall be subject to City approval and amended to conform to the City’s requirements may be acceptable in lieu of City authorized forms. All certificates and endorsements shall be received and approved by the City before the contract is awarded. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time.
Subcontractors
Consultant shall include all subcontractors as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.
Risk Management
Consultant acknowledges that insurance underwriting standards and practices are subject to change, and the City reserves the right to make changes to these provisions in the reasonable discretion of its Risk Manager.