Professional Services Agreement
Form approved by the City Attorney 5-11-20
CITY OF SANTA ROSA
PROFESSIONAL SERVICES AGREEMENT
WITH KOFF & ASSOCIATES, A DIVISION OF GALLAGHER BENEFIT SERVICES, INC.
AGREEMENT NUMBER _________
This "Agreement", dated April 25 , 2023, by and between the City of Santa Rosa, a municipal corporation ("City"), and Koff & Associates, a division of Gallagher Benefit Services, Inc. a Delaware corporation with offices at 2835 Seventh Street, Berkeley, CA 94710.” ("Consultant").
R E C I T A L S
A. City desires to retain a qualified firm to conduct a comprehensive City-wide Classification and Compensation Study of it’s non-safety, miscellaneous employee units.
B. City desires to retain a qualified firm to conduct the services described above in accordance with the Scope of Services as more particularly set forth in Exhibit A to the Agreement.
C. Consultant represents to City that it is a firm composed of highly trained professionals and is fully qualified to conduct the services described above and render advice to City in connection with said services.
D. The parties desire that this Agreement relate back to the date Consultant began to provide services to the City.
E. The parties have negotiated upon the terms pursuant to which Consultant will provide such services and have reduced such terms to writing.
AGREEMENT
NOW, THEREFORE, City and Consultant agree as follows:
1. SCOPE OF SERVICES
Consultant shall provide to City the services described in Exhibit A ("Scope of Services") Consultant shall provide these services at the time, place, and in the manner specified in Exhibit A.
Exhibit A is attached hereto for the purpose of defining the manner and scope of services to be provided by Consultant and is not intended to, and shall not be construed so as to, modify or expand the terms, conditions or provisions contained in this Agreement. In the event of any conflict between this Agreement and any terms or conditions of any document prepared or provided by Consultant and made a part of this Agreement, including without limitation any document relating to the scope of services or payment therefor, the terms of this Agreement shall control and prevail.
2. COMPENSATION
a. City shall pay Consultant for services rendered pursuant to this Agreement at the rates, times and in the manner set forth in Exhibit B. Consultant shall submit monthly statements to City
Professional Services Agreement
Form approved by the City Attorney 5-11-20
which shall itemize the services performed as of the date of the statement and set forth a progress report, including work accomplished during the period, percent of each task completed, and planned effort for the next period. Invoices shall identify personnel who have worked on the services provided, the number of hours each worked during the period covered by the invoice, the hourly rate for each person, and the percent of the total project completed, consistent with the rates and amounts shown in Exhibit B.
b. The payments prescribed herein shall constitute all compensation to Consultant for all costs of services , including, but not limited to, direct costs of labor of employees engaged by Consultant, travel expenses, telephone charges, copying and reproduction, computer time, and any and all other costs, expenses and charges of Consultant , its agents and employees. In no event shall City be obligated to pay late fees or interest, whether or not such requirements are contained in Consultant’s invoice.
c. Notwithstanding any other provision in this Agreement to the contrary, the total maximum compensation to be paid for the satisfactory accomplishment and completion of all services to be performed hereunder shall in no event exceed the sum of four hundred, fifty thousand dollars and no cents ($450,000).The City’s Chief Financial Officer is authorized to pay all proper claims from Charge Number 040101-5320.
3. DOCUMENTATION; RETENTION OF MATERIALS
a. Consultant shall maintain adequate documentation to substantiate all charges as required under Section 2 of this Agreement.
b. Consultant shall keep and maintain full and complete documentation and accounting records concerning all extra or special services performed by it that are compensable by other than an hourly or flat rate and shall make such documents and records available to author ized representatives of City for inspection at any reasonable time.
c. Consultant shall maintain the records and any other records related to the performance of this Agreement and shall allow City access to such records during the performance of this Agreement and for a period of four (4) years after completion of all services hereunder.
4. INDEMNITY
a. Consultant shall, to the fullest extent permitted by law, indemnify, protect, defend and hold harmless City, and its employees, officials and agents ( "Indemnified Parties") from all claims, demands, costs or liability (including liability for claims, suits, actions , arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, interest, defense costs, and expert witness fees), that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of Consultant, its officers, employees, or agents, in said performance of professional services under this Agreement, excepting only liability arising from the sole negligence, active negligence or intentional misconduct of City.
b. The existence or acceptance by City of any of the insurance policies or coverages described in this Agreement shall not affect or limit any of City’s rights under this Section 4, nor shall the
Professional Services Agreement
Form approved by the City Attorney 5-11-20
limits of such insurance limit the liability of Consultant hereunder. This Section 4 shall not apply to any intellectual property claims, actions, lawsuits or other proceedings subject to the provisions of Section 17(b), below. The provisions of this Section 4 shall survive any expiration or termination of this Agreement.
5. INSURANCE
a. Consultant shall maintain in full force and effect all of the insurance coverage described in, and in accordance with, Attachment One, "Insurance Requirements." Maintenance of the insurance coverage set forth in Attachment One is a material element of this Agreemen t and a material part of the consideration provided by Consultant in exchange for City’s agreement to make the payments prescribed hereunder. Failure by Consultant to (i) maintain or renew coverage, (ii) provide City notice of any changes, modifications, or reductions in coverage, or (iii) provide evidence of renewal, may be treated by City as a material breach of this Agreement by Consultant, whereupon City shall be entitled to all rights and remedies at law or in equity, including but not limited to immediate termination of this Agreement.
Notwithstanding the foregoing, any failure by Consultant to maintain required insurance coverage shall not excuse or alleviate Consultant from any of its other duties or obligations under this Agreement. In the event Consultant , with approval of City pursuant to Section 6 below, retains or utilizes any subcontractors or subconsultants in the provision of any services to City under this Agreement, Consultant shall assure that any such subcontractor has first obtained, and shall maintain, all of the insurance coverages set forth in the Insurance Requirements in Attachment One.
b. Consultant agrees that any available insurance proceeds broader than or in excess of the coverages set forth in the Insurance Requirements in Attachment One shall be available to the additional insureds identified therein.
c. Consultant agrees that the insurance coverages and limits provided under this Agreement are the greater of: (i) the coverages and limits specified in Attachment One, or (ii) the broader coverages and maximum limits of coverage of any insurance policy or proceeds available to the name insureds.
6. ASSIGNMENT
Consultant shall not assign any rights or duties under this Agreement to a third party without the express prior written consent of City, in City’s sole and absolute discretion. Consultant agrees that the City shall have the right to approve any and all subcontractors and subconsultants to be used by Consultant in the performance of this Agreement before Consultant contracts with or otherwise engages any such subcontractors or subconsultants.
7. NOTICES
Except as otherwise provided in this Agreement, any notice, submittal or communication required or permitted to be served on a party, shall be in writing and may be served by personal delivery to the person or the office of the person identified below. Service may also be made by mail, by placing first-class postage, and addressed as indicated below, and depositing in the United States mail to:
Professional Services Agreement
Form approved by the City Attorney 5-11-20
City Representative:
Amy Reeve
Director of Human Resources
100 Santa Rosa Avenue, Room 1
Santa Rosa, CA 95404
707-543-3070 telephone
707-543-3064 facsimile
Consultant Representative:
Georg Krammer
Managing Director, Compensation and
Rewards Consulting
2835 Seventh Street
Berkeley, CA 94710
510-658-5633 telephone
510-652-5633 facsimile
8. INDEPENDENT CONTRACTOR
a. It is understood and agreed that Consultant (including Consultant’s employees) is an independent contractor and that no relationship of employer -employee exists between the parties hereto for any purpose whatsoever. Neither Consultant nor Consultant’s assigned personnel shall be entitled to any benefits payable to employees of City. City is not required to make any deductions or withholdings from the compensation payable to Consultant under the provisions of this Agreement, and Consultant shall be issued a Form 1099 for its services hereunder. As an independent contractor, Consultant hereby agrees to indemnify and hold City harmless from any and all claims that may be made against City based upon any contention by any of Consultant’s employees or by any third party, including but not limited to any state or federal agency, that an employer -employee relationship or a substitute therefor exists for any purpose whatsoever by reason of this Agreement or by reason of the nature and/or performance of any services under this Agreement.
b. It is further understood and agreed by the parties hereto that Consultant, in the performance of Consultant’s obligations hereunder, is subject to the control and direction of City as to the designation of tasks to be performed and the results to be accomplished under this Agreement, but not as to the means, methods, or sequence used by Consultant for accomplishing such results. To the extent that Consultant obtains permission to, and does, use City facilities, space, e quipment or support services in the performance of this Agreement, this use shall be at the Consultant’s sole discretion based on the Consultant’s determination that such use will promote Consultant ’s efficiency and effectiveness.
Except as may be specifi cally provided elsewhere in this Agreement, the City does not require that Consultant use City facilities, equipment or support services or work in City locations in the performance of this Agreement.
c. If, in the performance of this Agreement, any third persons are employed by Consultant, such persons shall be entirely and exclusively under the direction, supervision, and control of Consultant. Except as may be specifically provided elsewhere in this Agreement, all terms of employment, including hours, wages, working conditions, discipline, hiring, and discharging, or any other terms of employment or requirements of law, shall be determined by Consultant. It is further understood and agreed that Consultant shall issue W-2 or 1099 Forms for income and employment tax purposes, for all of Consultant’s assigned personnel and subcontractors.
d. The provisions of this Section 8 shall survive any expiration or termination of this Agreement. Nothing in this Agreement shall be construed to create an exclusive relationship between
Professional Services Agreement
Form approved by the City Attorney 5-11-20
City and Consultant. Consultant may represent, perform services for, or be employed by such additional persons or companies as Consultant sees fit.
9. ADDITIONAL SERVICES
Changes to the Scope of Services shall be by written amendment to this Agreement and shall be paid on an hourly basis at the rates set forth in Exhibit B, or paid as otherwise agreed upon by the parties in writing prior to the provision of any such additional services.
10. SUCCESSORS AND ASSIGNS
City and Consultant each binds itself, its partners, successors, legal representatives and assigns to the other party to this Agreement and to the partners, successors, legal representatives and assigns of such other party in respect of all promises and agreements contained herein.
11. TERM, SUSPENSION, TERMINATION
a. This Agreement shall become effective on the date that Consultant began to provide services to City under this Agreement (“Effective Date”) , and shall continue in effect until both parties have fully performed their respective obligations under this Agreement, unless sooner terminated as provided herein.
b. City shall have the right at any time to temporarily suspend Consultant ’s performance hereunder, in whole or in part, by giving a written notice of suspension to Consultant. If City gives such notice of suspension, Consultant shall immediately suspend its activities under this Agreement, as specified in such notice.
c. City shall have the right to terminate this Agreement for convenience at any time by giving ninety (90) days advance written notice of termination to Consultant. Upon such termination, Consultant shall submit to City an itemized statement of services performed as of the date of termination in accordance with Section 2 of this Agreement. These services may include both completed work and work in progress at the time of termination. City shall pay Consultant for any services for which compensation is owed; provided, however, City shall not in any manner be liable for lost profits that might have been made by Consultant had the Agreement not been terminated or had Consultant completed the services required by this Agreement. Consultant shall promptly deliver to City all documents related to the performance of this Agreement in its possession or control. All such documents shall be the property of City without additional compensation to Consultant.
12. TIME OF PERFORMANCE
The services described herein shall be provided during the period, or in accordance with the schedule, set forth in Exhibit A . Consultant shall complete all the required services and tasks and complete and tender all deliverables to the reasonable satisfaction of City, not later than May 31, 2024
13. STANDARD OF PERFORMANCE
Professional Services Agreement
Form approved by the City Attorney 5-11-20
Consultant shall perform all services performed under this Agreement in the manner and according to the standards currently observed by a competent practitioner of Consultant’s prof ession in California. All products of whatsoever nature that Consultant delivers to City shall be prepared in a professional manner and conform to the standards of quality normally observed by a person currently practicing in Consultant’s profession, and shall be provided in accordance with any schedule of performance. Consultant shall assign only competent personnel to perform services under this Agreement. Consultant shall notify City in writing of any changes in Consultant’s staff assigned to perform the services under this Agreement prior to any such performance. In the event that City, at any time, desires the removal of any person assigned by Consultant to perform services under this Agreement, because City, in its sole discretion, determines that such person is not performing in accordance with the standards required herein, Consultant shall remove such person immediately upon receiving notice from City of the desire of City for the removal of such person.
14. CONFLICTS OF INTEREST
Consultant covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, that would conflict in any manner with the interests of City or that would in any way hinder Consultant’s performance of services under this Agreement. Consultant further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor, without the written consent of City. Consultant agrees to avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City at all times during the performance of this Agreement.
15. CONFLICT OF INTEREST REQUIREMENTS
a. Generally. The City’s Conflict of Interest Code requires that individuals who qualify as "consultants" under the Political Reform Act, California Government Code sections 87200 et seq., comply with the conflict of interest provisions of the Political Reform Act and the City’s Conflict of Interest Code, which generally prohibit individuals from making or participating in the making of decisions that will have a material financial effect on their economic interests. The term "consultant" generally includes individuals who make governmental decisions or who serve in a staff capacity.
b. Conflict of Interest Statements . The individual(s) who will provide services or perform work pursuant to this Agreement are "consultants" within the meaning of the Political Reform Act and the City’s Conflict of Interest Code:
____ yes _X___ no (check one)
If "yes" is checked by the City, Consultant shall cause the following to occur within 30 days after execution of this Agreement:
(1) Identify the individuals who will provide services or perform work under this Agreement as "consultants"; and
(2) Cause these individuals to file with the City Clerk the assuming office statements of economic interests required by the City’s Conflict of Interest Code.
Professional Services Agreement
Form approved by the City Attorney 5-11-20
Thereafter, throughout the t erm of the Agreement, Consultant shall cause these individuals to file with the City Clerk annual statements of economic interests, and "leaving office" statements of economic interests, as required by the City’s Conflict of Interest Code.
The above statements of economic interests are public records subject to public disclosure under the California Public Records Act. The City may withhold all or a portion of any payment due under this Agreement until all required statements are filed.
16. CONFIDENTIALITY OF CITY INFORMATION
During performance of this Agreement, Consultant may gain access to and use City information regarding inventions, machinery, products, prices, apparatus, costs, discounts, future plans, business affairs, governmental affairs, processes, trade secrets, technical matters, systems, facilities, customer lists, product design, copyright, data, and other vital information (hereafter collectively referred to as "City Information") that are valuable, special and unique assets of the City. Consultant agrees to protect all City Information and treat it as strictly confidential, and further agrees that Consultant shall not at any time, either directly or indirectly, divulge, disclose or communicate in any manner any City Information to any third party without the prior written consent of City. In addition, Consultant shall comply with all City policies governing the use of the City network and technology systems. A violation by Consultant of this Section 16 shall be a material violation of this Agreement and shall justify legal and/or equitable relief.
17. CONSULTANT INFORMATION
a. City shall have full ownership and control, including ownership of any copyrights, of all information prepared, produced, or provided by Consultant pursuant to this Agreement. In this Agreement, the term "information" shall be construed to mean and includ e: any and all work product, submittals, reports, plans, specifications, and other deliverables consisting of documents, writings, handwritings, typewriting, printing, photostatting, photographing, computer models, and any other computerized data and every other means of recording any form of information, communications, or representation, including letters, works, pictures, drawings, sounds, or symbols, or any combination thereof. Consultant shall not be responsible for any unauthorized modification or use of such information for other than its intended purpose by City. Notwithstanding the foregoing, City shall own all final deliverables provided to City by Consultant as part of the services provided under this Agreement, provided however, Consultant shall retain sole and exclusive ownership of all right, title, and interest in, and to, its intellectual property and derivatives thereof which no data or Confidential Inf ormation of the City was used to create and which was developed entirely using Consultant ’s own resources, including any and all pre-existing or independently developed know-how, methods, processes and other materials prepared by Consultant. To the extent Consultant’s intellectual property is necessary for the City to use the deliverables provided under this Agreement, Consultant grants to City a non-exclusive, royalty-free license to Consultant’s intellectual property solely for City’s use of such deliverables.
b. Consultant shall fully defend, indemnify and hold harmless City, its officers and employees, and each and every one of them, from and against any and all claims, actions, lawsuits or
Professional Services Agreement
Form approved by the City Attorney 5-11-20
other proceedings alleging that all or any part of the information prepared, produced, or provided by Consultant pursuant to this Agreement infringes upon any third party’s trademark, trade name, copyright, patent or other intellectual property rights. City shall make reasonable efforts to notify Consultant not later than ten (10) days after City is served with any such claim, action, lawsuit or other proceeding, provided that City’s failure to provide such notice within such time period shall not relieve Consultant of its obligations hereunder, which shall survive any termination or expiration of this Agreement.
c. All proprietary and other information received from Consultant by City, whether received in connection with Consultant’s proposal , will be disclosed upon receipt of a request for disclosure, pursuant to the C alifornia Public Records Act; provided, however, that, if any information is set apart and clearly marked "trade secret" when it is provided to City, City shall give notice to Consultant of any request for the disclosure of such information. Consultant shall then have five (5) days from the date it receives such notice to enter into an agreement with the City, satisfactory to the City Attorney, providing for the defense of, and complete indemnification and reimbursement for all costs (including plaintiff’s attorneys’ fees) incurred by City in any legal action to compel the disclosure of such information under the California Public Records Act. Consultant shall have sole responsibility for defense of the actual "trade secret" designation of such information.
d. The parties understand and agree that any failure by Consultant to respond to the notice provided by City and/or to enter into an agreement with City, in accordance with the provisions of subsection c, above, shall constitute a complete waiver by Consultant of any rights regarding the information designated "trade secret" by Consultant, and such information shall be disclosed by City pursuant to applicable procedures required by the Public Records Act.
18. MISCELLANEOUS
a. Entire Agreement. This Agreement contains the entire agreement between the parties.
Any and all verbal or written agreements made prior to the date of this Agreement are superseded by this Agreement and shall have no further effect.
b. Modification. No modification or change to the terms of this Agreement will be binding on a party unless in writing and signed by an authorized representative of that party.
c. Compliance with Laws. Consultant shall perform all services described herein in compliance with all applicable federal, state and local laws, rules, regulations, and ordinances, including but not limited to, (i) the Americans with Disabilities Act of 1990 (42 U.S.C. 12101, et seq.) ("ADA"), and any regulations and guidelines issued pursuant to the ADA; and (ii) Labor Code sections 1720, et seq., which require prevailing wages (in accordance with DIR determinations at www.dir.ca.gov) be paid to any employee performing work covered by Labor Code sections 1720 et seq. Consultant shall pay to the City when due all business taxes payable by Consultant under the provisions of Chapter 6- 04 of the Santa Rosa City Code. The City may deduct any delinquent business taxes, and any penalties and interest added to the delinquent taxes, from its payments to Consultant.
d. Discrimination Prohibited. With respect to the provision of services under this Agreement, Consultant agrees not to discriminate against any person because of the race, religious P
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Professional Services Agreement
Form approved by the City Attorney 5-11-20
creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status of that person.
e. G
overning Law; Venue. This Agreement shall be governed, construed and enforced in accordance with the laws of the State of California. Venue of any litigation arising out of or connected with this Agreement shall lie exclusively in the state trial court in Sonoma County in the State of California, and the parties consent to jurisdiction over their persons and over the subject matter of any such litigation in such court, and consent to service of process issued by such court. f. W
aiver of Rights. Neither City acceptance of, or payment for, any service or performed by
Consultant, nor any waiver by either party of any default, breach or condition precedent, shall be construed as a waiver of any provision of this Agreement, nor as a waiver of any other default, breach or condition precedent or any other right hereunder.
g. I
ncorporation of Attachments and Exhibits. The attachments and exhibits to this Agreement are incorporated and made part of this Agreement, subject to terms and provisions herein contained.
19 . A UTHORITY; SIGNATURES REQUIRED FOR CORPORATIONS
C
onsultant hereby represents and warrants to City that it is (a) a duly organized and validly existing Delaware Corporation with offices at 2835 Seventh Street, Berkeley, CA 94710, formed and in good standing under the laws of the State of Delaware, (b) has the power and authority and the legal right to conduct the business in which it is currently engaged, and (c) has all requisite power and authority and the legal right to consummate the transactions contemplated in this Agreement. Consultant hereby further represents and warrants that this Agreement has been duly authorized, and when executed by the signatory or signatories listed below, shall constitute a valid agreement binding on Consultant in accordance with the terms hereof.
I
f this Agreement is entered into by a corporation, it shall be signed by two corporate officers, one from each of the following two groups: a) the chairman of the board, president or any vice- president; b) the secretary, any assistant secretary, chief financial officer, or any assistant treasurer. The title of the corporate officer shall be listed under the signature.
20. CO
UNTERPARTS AND ELECTRONIC SIGNATURES
Thi
s Agreement and future documents relating thereto may be executed in two or more counterparts, each of which will be deemed an original and all of which together constitute one Agreement. Counterparts and/or signatures delivered by facsimile, pdf or City-approved electronic means have the same force and effect as the use of a manual signature. Both City and Consultant wish to permit this Agreement and future documents relating thereto to be electronically signed in accordance with applicable federal and California law. Either Party to this Agreement may revoke its permission to use electronic signatures at any time for future documents by providing notice pursuant to the Agreement.
The Parties agree that electronic signatures, by their respective signatories are intended to authenticate P
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Professional Services Agreement
Form approved by the City Attorney 5-11-20
such signatures and to give rise to a valid, enforceable, and fully effective Agreement. The City reserves the right to reject any signature that cannot be positively verified by the City as an authentic electronic signature.
E
xecuted as of the Effective Date.
CONSULTANT:
Name of Firm: Koff & Associates, a division of
Gallagher Benefit Services, Inc.
TYPE OF BUSINESS ENTITY (check one):
_____ Individual/Sole Proprietor
_____Partnership
_____Corporation
_____ Limited Liability Company
_____ Other (please specify: ___________)
Signatures of Authorized Persons:
By: _____________________________
Print Name:_______________________
Title: ____________________________
By: _____________________________
Print Name:_______________________
Title: ____________________________
City of Santa Rosa Business Tax Cert. No.
__________________________________
CITY OF SANTA ROSA
a Municipal Corporation
By:________________________________
Print
Name:_____________________________
Title:_______________________________
APPROVED AS TO FORM:
____________________________
Office of the City Attorney
ATTEST:
____________________________
City Clerk
A
ttachments:
Attachment One - Insurance Requirements
Exhibit A - Scope of Services
Exhibit B - Compensation
Attachment One to Professional Services Agreement
Form approved by the City Attorney 4-14-14
ATTACHMENT ONE
INSURANCE REQUIREMENTS FOR
PROFESSIONAL SERVICES AGREEMENTS
A. I
nsurance Policies: Consultant shall, at all times during the terms of this Agreement, maintain and keep in full force and effect, the following policies of insurance with minimum coverage as indicated below and issued by insurers with AM Best ratings of no less than A-:VI or otherwise acceptable to the City.
Insurance Minimum
Coverage Limits
Additional Coverage Requirements
1. Commercial
general liability
$ 1 million per
occurrence
Coverage must be at least as broad as ISO CG
00 01 and must include completed operations
coverage. If insurance applies separately to a
project/location, aggregate may be equal to per
occurrence amount.
Coverage may be met
by a combination of primary and umbrella
or excess insurance but umbrella and
excess shall provide coverage at least as
broad as specified for underlying coverage.
Coverage shall not exclude subsidence.
$ 2 million
aggregate
2. Business auto
coverage
$ 1 million ISO Form Number CA 00 01 covering any auto
(Code 1), or if Consultant has no owned autos,
hired, (Code 8) and non-owned autos (Code 9),
with limit no less than $ 1 million per accident
for bodily injury and property damage.
3. Professional liability
(E&O)
$ 1 million per
claim
Consultant shall provide on a policy form
appropriate to profession. If on a claims made
basis, Insurance must show coverage date
prior to start of work and it must be maintained
for two years after completion of work.
$ 1 million
aggregate
4. Workers’
compensation and
employer’s liability
$ 1 million As required by the State of California, with Statutory Limits and Employer’s Liability
Insurance with limit of no less than $ 1 million
per accident for bodily injury or dis ease. The
Workers’ Compensation policy shall be
endorsed with a waiver of subrogation in favor
of the City for all work performed by the
Consultant, its employees and agents.
B. E
ndorsements:
1. The Commercial General Liability policy shall provide or be endorsed to provide that coverage shall not be canceled , except after prior written notice has been provided to the City in accordance with the policy provisions.
2. The Commercial General Liabilitypolicy shall provide or be endorsed to provide
Attachment One to Professional Services Agreement
Form approved by the City Attorney 4-14-14
the following:
a. For any claims related to this project, Consultant’s insurance coverage shall be primary and any insurance or self- insurance maintained by City shall be excess of the Consultant’s insurance and shall not contribute with it; an
d,
b. The City of Santa Rosa, its officers, agents, employees an d vol
unteers are to be covered as additional insureds on the CGL policy. General liability coverage can be provided in the form of a n endor
sement to Consultant’s insurance at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10 and CG 20 37 if a later edition is used.
C. Verification of Coverage and Certificates of Insurance: Consultant shall furnish City with original certificates and endorsements effecting coverage required above.
Certificates and endorsements shall make reference to policy numbers. All certificates and endorsements are to be received and approved by the City before work commences and must be in effect for the duration of the Agreement. The City reserves the right to require complete copies of all required endorsements.
D. O
ther Insurance Provisions:
1. W
ith the exception of Professional Liability, No policy required by this Agre ement shall prohibit Consultant from waiving any right of recovery prior to loss.
Consultant hereby waives such right with regard to the indemnitees.
2. All insurance coverage amounts provided by Consultant and available or applicable to this Agreement are i ntended to apply to the full extent of the policies. Nothing contained in this Agreement limits the application of such insurance coverage. With the exception of Professional Liability, defense costs must be paid in addition to coverage amounts.
3. Policies containing any self -insured retention (SIR) provision shall provide or be endorsed to provide that the SIR may be satisfied by Consultant. Self-insur ed
r
etentions above $10,000 must be approved by City. At City’s option, Consultant may be required to provide financial guarantees.
4. Sole Proprietors must provide a representation of their Workers’ Compensati on I
nsurance exempt status.
5. City reserves the right to modify these insurance requirements while this Agreement is in effect, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
November 4, 2022
Classification and
Compensation Study
Proposal #22-HR
City of Santa Rosa
KOFF & ASSOCIATES, A GALLAGHER COMPANY
GE
ORG S. KRAMMER
Managing Director, Compensation and Rewards Consulting
28 35 Seventh Street
Berkeley, CA 94710
www.KoffAssociates.com
gk
[email protected]
Tel: 510.658.5633
Fax: 510.652.5633
Exhibit A: Scope of Services
28 35 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com November 4, 2022
Ms. Amy Reeve
Director of Human Resources
100 Santa Rosa Ave. Room 1
Santa Rosa, CA 95404
D
ear Ms. Reeve:
Thank you for the opportunity to respond to your R equest for Proposals (RFP 22-HR) for a Classification and Total Compensation Study for the City of Santa Rosa (“City”). We are most interested in assisting the City with this important study and feel that we are uniquely qualified to provide value to your organization based on our experience working with other cities, counties, special districts, joint-powers associations, and other public agencies, and of course having worked with the City on multiple occasions in the past.
Koff & Associates, now a Gallagher company, is an experienced Human Resources and Recruitment Services firm providing human resources services to cities, counties, special districts, courts, educational institutions, and other public agencies for 38 years. The firm has achieved a reputation for working successfully with management, employees, and governing bodies. We believe in a high level of dialogue and input from study stakeholders and our proposal speaks to that level of effort. Our firm’s extra effort has resulted in close to 100% implementation of all of our classification and compensation studies.
Koff & Associates ensures that each of our projects is given the appropriate resources and attention, resulting in a high level of quality control, excellent communication between clients and our office, commitment to meeting timelines and budgets, and a consistently high-caliber work product.
As a Managing Director of Koff & Associates, Katie Kaneko would assume the role of Project Director and be responsible for the successful completion of project. We can be reached at our Berkeley address and the phone number listed on the cover page. Katie’s email is [email protected] and my email
is [email protected].
This proposal will remain valid for at least 90 days from the date of submittal. Please call if you have any questions or wish additional information. We look forward to the opportunity to provide professional services to the City of Santa Rosa.
Sincerely,
Georg S. Krammer
Managing Director, Compensation and Rewards Consulting
Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
28 35 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com
TABLE OF CONTENTS
Firm Qualifications 1
T
eam Member Qualifications 2
R
eferences 12
Exe
cutive Summary, Approach, Methodology 14
T
ime Requirements 30
C
ost Proposal 31
Con
tractual Considerations 34
Si
gnature Page
Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
28 35 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com 1 FIRM QUALIFICATIONS
Koff & Associates (“K&A”) is a full-spectrum, public-sector human resources and recruitment services firm that was founded in 1984 by Gail Koff; K&A has been assisting cities, counties, special districts, other public agencies, and non-profit organizations with their human resources needs for 38 years.
As of April 30, 2021, we are in the process of merging with Arthur J. Gallagher and are now officially a Gallagher Division. Our headquarters are in Berkeley, CA, and we have satellite offices in Southern California, the Central Valley, the Sacramento Region, and the Western Region.
We are familiar with the various public sector organizational structures, agency missions, operational and budgetary requirements, and staffing expectations. We have extensive experience working in both union and non-union environments (including service as the management representative in meet & confer and negotiation meetings), working with City Councils, County Commissions, Boards of Directors, Boards of Supervisors, Boards of Trustees, Merit Boards, and Joint Power Authorities.
The firm’s areas of focus are classification and compensation studies (approximately 70% of our workload); executive search and staff recruitments; organizational development/assessment studies; performance management and incentive compensation programs; development of strategic management tools; policy/procedure development and employee handbooks; training and development; public agency consolidations and separations; Human Resources audits; and serving as off -site Human Resources Director for smaller public agencies that need the expertise of a Human Resources Director but do not need a full-time, on-site professional.
Without exception, all of our classification and compensation studies have successfully met all of our intended commitments; communic ations were successful with employees, supervisors, management, and union representatives; and we were able to assist each agency in successfully implementing our recommendations. All studies were brought to completion within stipulated time limits and proposed budgets.
Our long list of clients (please see https://koffassociates.com/our-clients/ ) is indicative of our firm’s
reputation as being a quality organization that can be relied on for producing comprehensive, sound, and cost-effective recommendations and solutions. K&A has a reputation for being “hands on” with the ability and expertise to implement its ideas and recommendations through completion i n both union and non- union environments.
K&A relies on our stellar reputation and the recommendations and referrals of past clients to attract new clients. Our work speaks for itself and our primary goal is to provide professional and technical consulting assistance with integrity, honesty and a commitment to excellence. We are very proud of the fact that in working with hundreds of public agency clients and completing hundreds of classification and/or compensation and other types of studies, we have only had a handful of formal appeals in our entire history.
Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
28 35 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com 2 Our team consists of 37 employees as shown below in our organizational chart.
No subcontractors will be assigned to this study.
TEAM MEMBER QUALIFICATIONS
All members of our team have worked on multiple comprehensive classification and total compensation studies and are well acquainted with the wide array of public sector organizational structures, compensation structures, classification plans, as well as the challenges and issues that arise when conducting studies such as this one for the City.
The RFP requests a list of other projects the project manager(s) will be assigned during this project.
Typically, each project manager manages 10 -15 projects of varyin g sizes and will only manage as many projects as allows their full attention, availability, and dedication to each project and each client to meet client’s needs and expectations, as well as project timelines and milestones. Unfortunately, we are not able to provide a list of future projects. While we have a very robust win rate during RFP processes, there is a certain amount of uncertainty around winning a project or not and we cannot forecast ahead of time which projects we will be selected for and when they will start. We would like to reassure the City that the key personnel and consultants listed below will be assigned according to each client’s and each project’s needs. Koff & Associates ensures that each of our projects is given the appropriate resources and attention, resulting in a high level of quality control, excellent communication between clients and our office, commitment to meeting timelines and budgets, and a consistently high-caliber work product.
Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
28 35 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com 3 KEY PERSONNEL
Our project team will be led by Co -Project Directors Katie Kaneko (Managing Director) and Kari Mercer (Project Manager). They will coordinate all of K&A’s efforts, attend all meetings with the City, and be responsible for all work products and deliverables.
In terms of time commitment, Ms. Kaneko is expected to devote 15 % of ourteam’s commitment to this project and Ms. Mercer 25%. The remaining 60% of time will be assigned to the consultant team below.
CONSULTANTS
Lindsay Christopher (Senior HR Associate), Monica Garrison-Reusch (Senior HR Associate), Arlene Marks Gibbs (Senior Associate), Sarah Nunes ( HR Associate), Jay Gipson (Senior HR Associate), Sandra Bufalini (Senior HR Associate), Maggie Williams-Dalgart (Senior HR Associate), Lisa Gardner (Senior HR Associate), Cindy Harary (Senior HR Associate) and Renate Tiner (HR Associate) will conduct classification analysis and interviews with employees and management, compensation data collection and analysis, internal job analysis, develop recommendations and implementation strategies.
WORKLOAD
We currently have a team of 27 HR consultants and five administrative support staff – resources that we are able to pool base on each project’s needs, to execute projects and to meet clients’ needs and expectations. Each time we are selected as the successful bidder on a project, we strategize to determine project timelines, deliverable deadlines, and the resources that are required to produce the deliverables as promised. We are poised to accommodate the City’s classification and compensation study and plan to devote the necessary resources for the successful execution of the project.
Following are biographies of the specific staff who will be assigned to this study:
Catherine “Katie” Kaneko, C.P.A., P.H.R.
Managing Director, Compensation and Rewards Consulting
Katie is one of the two principals of Koff & Associates. She brings more than 25 years of management - level human resources and consulting experience to K&A. She has extensive experience in classification analysis and evaluation techniques, compensation, p erformance incentive programs, recruitment, and organizational studies.
Armed with her Bachelor of Business Administration degree, and as a CPA (Certified Public Accountant), Katie began her career in an international accounting/consulting firm. She transitioned into Human Resources within the firm to become the Human Resources Director of the San Francisco office. She next moved into the high-tech industry where she served in leadership positions for high- growth companies, startup firms, and organizations in transition. Katie then moved to the public sector, joining K&A in 2003 and has been the firm’s President since 2005; over the last 16 years, she has overseen hundreds of compensation, classification, organizational and other studies for cities, counties, and special districts throughout California.
Agencies for whom classification and/or compensation studies, or HR Services (such as organizational assessments, executive performance evaluations, succession planning studies, etc.) were led by Katie, as Project Director, during the last few years, include, but are not limited to, the following:
Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
28 35 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com 4 • Cities and/or Towns : Albany, Belmont, Benicia, Calistoga, Carmel, Coachella, Crescent City, Cupertino, Danville, Dinuba, East Palo Alto, Fairfield, Galt, Hayward, Hillsborough, Los Altos, Los Gatos, Madera, Manteca, Merced, Monterey, Moraga, Morgan Hill, Mt. Shasta, Newman, Novato, Pacific Grove, Pacifica, Palo Alto, Paradise, Piedmont, Redwood City, Rohnert Park, Sacramento, San Bruno, San Pablo, San Ramon, Santa Cruz, Santa Rosa, Seaside, Sonora, Tracy, Tulare
• Counties: Butte, El Dorado, Humboldt, Mendocino, Merced, Placer, San Joaquin, San Mateo, Sonoma, Tuolumne, Yuba
• Courts: Superior Court of the County of Alameda, Superior Court of San Joaquin County • Education: First Five Contra Costa, First Five Santa Clara, Hartnell College, Salinas Union High School District, Southwestern Community College District, Travis Unified School District • State: California State Compensation Insurance Fund; California State Auditor’s Office • Other: Municipal Pooling Authority, Public Agency Risk Sharing Authority of California • Special Districts:
o Open Space Districts: Midpeninsula Regional Open Space District, Santa Clara Valley Open Space Authority, Sonoma County Agricultural Preserve and Open Space District. o Park and Recreation Districts: Livermore Area Recreation and Park District, Mendocino Coast Recreation & Park District,
o Air Quality: Bay Area Air Quality Management District o Community Services District: Cosumnes Co mmunity Services District, Discovery Bay Community Services District, Groveland Community Services District, Rancho Muriet a
C
ommunity Services District, Town of Discovery Bay CSD
o Fire and Police Protection: Central Fire District of Santa Cruz County, East Contra Costa Fire Protection District
o Housing/Economic Development: Oakland Housing Authority o Public Utilities: Northern California Power Agency
o Retirement: Contra Costa County Employees’ Retirement Association, Retirement Office of City of San José
o Solid Waste: Alameda County Waste Management Authority, Humboldt Waste Management Authority, Monterey Regional Waste Management District, Salinas Valley Solid Waste Authority
o Transportation: Alameda Contra Costa Transit District, San Francisco County Transportation Authority, Solano Transportation Authority
o Wastewater: Castro Valley Sanitary District, Central Contra Costa Sanitary District, Dublin San Ramon Services District, East Palo Alto Sanitary District, Encina Wastewater Authority, Fairfield Suisun Sewer District, Las Gallinas Sanitary District, Monterey Regional Water Pollution Control Agency, Mt. View Sanitary District, Vallejo Flood and Wastewater District, West Valley Sanitation District
o Water: Alameda County Water District, Coastside County Water District, Indian Wells Valley Water District, North Coast County Water District, Santa Clara Valley Water District, Valley County Water District, Zone 7 Water Agency
Katie will be key personnel and serve as the Co-Project Director for this project; she will coordinate all of K&A’s efforts, will attend all meetings with the City, and will be responsible for all work products and deliverables.
Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
2835 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com
5 Kari Mercer, SPHR
Project Manager
Kari’s professional qualifications include over 13 years of experience in the Human Resources field, including work in classification and compensation, employee relations, and recruitment and examination.
Her experience includes both private and public sector Human Resources work for the County of Madera, County of Fresno, and Macy’s. She gained experience in classification and compensation, labor relations, MOU administration, policy development and administration, recruitment and examination, and general human resources administration.
As a Human Resources Consultant for another private human resources consulting firm she specialized in conducting classification and compensation studies for multiple public sector agencies, such as: Cities of Anaheim, Concord, Palmdale, Redding; Counties of Lake, Madera, Monterey, and Sacramento; and special districts such as: California Joint Powers Risk Management Authority, East Bay Regional Park District, Elk Grove Water District, San Diego Association of Government s, San Francisco Municipal Transportation Agency, and Ventura Regional Sanitation District. Additionally, Kari has consulted for out-of-state clients in Maryland, New Mexico, and Texas.
Since joining Koff & Associates, Kari has worked on a wide variety of classification and compensation projects for the following agencies:
• Cities/Towns: Anaheim, Arroyo Grande, Atascadero, Belmont, Hayward, Madera, Manteca, Merced, Milpitas, Oakland, Perris, Pleasant Hill, Redwood City, San Pablo, Santa Clara, Saratoga, Seal Beach, Seaside, Tracy, Vallejo
• Counties: El Dorado, Fresno, Humboldt, Merced, Monterey, Orange, San Joaquin • Special Districts : Coachella Valley Public Cemetery District, Cosumnes Community Services District, First 5 of Alameda County, Foothill-DeAnza Community College District, Housing Authority of the City of Santa Barbara, Housing Authority of the County of San Bernardino, Livermore Area Recreation and Park District, Mendocino Coast Recreation and Park District, Port of Oakland, Orange County Fire Au thority, Santa Clara County Housing Authority, Superior Court of California- Kern County, Sweetwater Authority, Travis Unified School District, Truckee Sanitary District, West Valley Mission Community College District, Valley County Water District
She earned her B.S. degree in Business Administration with an emphasis on Human Resources Management at California State University, Fresno and is a certified Senior Professional in Human Resources (SPHR). Kari serves as a Personnel Commissioner for the City of Clovis and is a member of Central California SHRM.
Kari will provide managerial project support throughout this effort, including classification analysis, interviews with employees and management, compensation data collection and analysis, internal job analysis, development of recommendations, and implementation strategies.
Jay Gipson
Senior H.R. Associate
JaKeitha “Jay” Gipson has over 12 years of experience in federal government human resources roles, specializing classification and compensation, from Program Manager to Senior HR Project Specialist. Jay often serves as a subject matter expert for a variety of large- scale classification and compensation Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
28 35 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com 6 projects, ultimately creating a Center of Excellence through enhanced business processes and deliverables. She has been responsible for a myriad of projects pertaining to human capital allocation studies, workforce planning, position management, organizational designs, pay settings, and occupational consistency reviews.
Jay holds dual a master’s in health administration and informatics with a concentration in human resources management from the University of Missouri – Columbia. She has completed advanced classification and position management, compensation, human resources processes and analysis, an d strategic human capital consulting coursework from Graduate School USA. Jay has also completed Project Management Professional coursework at the University of Texas – Arlington and expects to be certified by December 2022.
Jay is a New Orleans native and lives in Dallas, TX. She enjoys wheel- throwing pottery, crafting, and spending time with family and friends. Jay joined Koff and Associates in July 2022 and intends to contribute her skills and abilities to clients and projects in the Senior Associate role.
Sandra Bufalini
Senior HR Associate
Sandra’s professional qualifications include twenty one years of experience working in the public sector at California State University (CSU), both at the Pomona and San Bernardino campuses. At the Pomona campus, she began as Manager, Compensation and Benefits and was promoted to Manager, Employment and Compensation where she was responsible for managing both areas, including approving and classifying new positions for recruitments, conducting classification reviews and appeals, providing salary analyses, and implementing reorganizations in a Union environment. Sandra was also responsible for the Conflict of Interest Program, Background Checks, Business Continuity, and Mandated Reporter. She implemented a first-ever HR Intern Program. Most recently, as Manager, Classification and Compensation at the San Bernardino campus, she continued to focus on managing the classification and compensation area for the campus in addition to reviewing and approving independent contractors and implementing an HR Intern program.
Sandra also has 12 years of private sector com pensation and benefits experience (specializing in 401k administration)in the three industries: Engineering, Electronics Distribution, and Tribal Casino.
A Southern California native, Sandra earned her BS degree in Management and Human Resources with a concentration in Entrepreneurship from Cal Poly Pomona. Sandra joined Koff & Associates in July 2022.
Maggie Williams-Dalgart
Senior H.R. Associate
Maggie brings over twenty (20) years of public sector human resources experience, most recently managing the City of Anaheim classification and compensation program. Maggie has conducted several hundred studies in the areas of classification, compensation, and staffing, and brings a wealth of knowledge drawn from current public sector employment practices. In a ddition to classification and compensation expertise, Maggie’s experience includes collective bargaining, labor contract administration and labor costing, policy development and implementation, discipline and performance management, and recruitment and selection.
Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
28 35 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com 7 Prior to joining Koff & Associates, Maggie served as President of CalPACS, a regional internet-based salary and benefits survey website for local agencies in Southern California.
Maggie holds a Bachelor’s degree in History of Public Policy from the University of California, Santa Barbara, a Master’s degree in Public Administration from the University of Colorado, Colorado Springs, and possesses certification as a Senior Professional in Human Resources (SPHR).” Lindsay Christopher
Senior H.R. Associate
Lindsay’s professional qualifications include ten years of experience working in the public sector, mostly with Alameda County. In her role as Human Resources Analyst, she was responsible for classification and compensation projects, as well as recruitment and selection, in a Civil Service, merit-based, environment.
Mostly recently, she continued to focus on classification and compensation projects at East Bay Regional Park District.
Since joining K&A, Lindsay has worked on studies for the following:
• Cities: Gardena, Hemet, Milpitas, Tracy, Corona, Seattle (Library), Napa • Counties: Humboldt
• Special Districts: Contra Costa County Employees’ Retirement Association, Greater LA County Vector Control District, Orange County Sanitation District, Purissima Hills Water District, Marin Municipal Water District, Housing Authority of the City of Santa Barbara, Tri-City Mental Health Authority, Victor Valley College, Buena Park Library District, East Bay Regional Park District, Tualatin Hills Park and Recreation District, Valley Water, San Luis and Delta Mendota Water Authority
A Bay Area native, Lindsay earned her B.A. degree in Sociology with a concentration in Criminology from San Jose State University.
Lindsay will provide Senior H.R. Associate support throughout this effort, including classification analysis, interviews with employees and management, compensation data collection and analysis, internal job analysis, development of recommendations, and implementation strategies.
Monica Garrison-Reusch, B.A., M.B.A.
Senior H.R. Associate
Monica has over 15 years of human resource program experience, all of which have been spent serving as either a team consultant or project manager on projects working with public sector agencies. Monica’s primary professional focus over the last several years has been on classification and compensation practices.
Prior to joining K&A, Monica performed classification and compensation consulting services as either a team member or project manager on varied projects including large scale studies done for the Count ies of Madera, Sacramento, Bernalillo (in New Mexico), and the California State Department of Personnel Administration. Monica also developed and served as a Co-Trainer for a two-day course on Classification and Compensation.
Monica’s depth of experience allows her to provide a broad range of human resources services to public agencies. She specializes in compensation projects focusing on both base salary and total compensation Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
28 35 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com 8 analysis studies. Monica has also worked on project teams conducting classification studies and organizational analysis, including performing the full range of classification analysis and conducting in - depth survey and analysis of organizational structures and past organizational practices.
Since joining K&A, Monica has worked on studies for the following clients:
• Cities: Cotati, Crescent City, Pleasant Hill, Sacramento, Vallejo • Counties: El Dorado, Mendocino, Monterey, Trinity
• State: California State Auditor’s Office
• Special Districts: AC Transit, Cosumnes Community Services District, East Bay Municipal Utility District, Eastern Municipal Water District, El Dorado County Transit Authority, First 5 Contra Costa County, First 5 Santa Clara County, Hayward Area Recreation and Park District, Livermore Amador Valley Transit Authority, Mendocino Coast Rec and Park District, Mojave Water Agency, North Tahoe Public Utility District, Orange County Transportation Authority, State Water Contractors, Trabuco Canyon Water District She earned an MBA with an emphasis in Marketing at Golden Gate University and a Bachelor of Science in Business Administration from the University of Southern California.
Monica will provide Senior H.R. Associate support for this project, including classification analysis, interviews with employees and management, compensation data collection and analysis, internal job analysis, development of recommendations, and implementation strategies.
Lisa Gardner
Senior H.R. Associate
Lisa Gardner has over 25 years of experience in a variety of leadership and technical public-sector human resources roles, from entry analyst to Deputy Chief HR Officer in K-12, community college and municipal government. While a well-rounded practitioner and generalist in both merit/civil service and non -merit public agency huma n resources, she has been focusing her expertise in the areas of classification and compensation for the last 9 years, most recently with the City of Seattle, Washington. Lisa joined Koff & Associates in December, 2021.
Lisa has a bachelor’s degree in Social Ecology from the University of California, Irvine. She has received her California School Personnel Commissioners Association (CSPCA) Merit Academy certification and the Association of California School Administrators (ACSA) Certificate in Human Resources.
Lisa will provide Senior H.R. Associate support throughout each effort, including classification analysis, interviews with employees and management, compensation data collection and analysis, internal job analysis, development of recommendations, and implementation strategies.
Ar
lene Marks Gibbs, BS, MPA, SPHR, IPMA-CP
Senior Associate
Arlene Gibbs possesses over thirty years of Human Resources management experience including spending over twenty years in the public sector working for both large and small education, municipal and special district organizations in California.
Her public sector experience includes serving as the Chief Human Resources Officer for San Diego State University which is the largest California State University campus with over 6,700 faculty and staff. While Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
28 35 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com 9 at San Diego State, Arlene led the HR Directors Committee for the 23 campus system of HR service delivery. Her experience also includes senior and executive HR management roles with several small and large public agencies including the City of San Jose, the City of Tustin as well as air and water/wastewater special districts.
Arlene’s experience includes all facets of Human Resources, Employee & Labor Relations. She is an experienced labor contract negotiator having negotiated many public sector labor agreements while serving as the Chief Spokesperson/Labor Negotiator. In addition, her experience includes managing recruitment and selection processes for all types of public sector positions, handling employee benefit s functions, responding to labor and employee relations issues, coordinating classification and compensation studies, complying with labor laws, conducting personnel investigations, and managing a wide variety of general human resources functions.
Arlene holds a Masters’ Degree in Public Administration from California State University Northridge and a Bachelor of Science Degree in Business Administration with an emphasis in Labor Relations from California State University Long Beach. She also is certified as an IPMA-CP and as a Senior Professional in Human Resources (SPHR).
Arlene has also led and participated in local, regional as well as statewide efforts in small and large agencies with the League of California Cities, IPMA as well as serving as a resource for City, County, State and Local Boards, Councils, Committees and Commissions.
Some of the K&A classification and compensation projects Arlene has worked on include but are not limited to:
• Cities/Counties/Towns: County of Butte, City of Bellflower, City of Concord, City of Cupertino, Humboldt County, City of Los Altos, Town of Los Altos Hills, and the City of Pinole.
• Special Districts : Dublin San Ramon Services District, Garfield County Public Library District (CO), Coachella Valley Water District, Foothill De Anza Community College District, and the Los Angeles County Development Authority.
S
arah Nunes, M.A.
H.R. Associate
Sarah’s professional qualifications include over 19 years of public sector experience with the Human Resources Department of the City of San José. Starting at the analyst level and eventually rising to Division Manager, she gained experience in recruitment and selection, classification and compensation, and general human resources administration.
Since joining Koff & Associates in 2017, Sarah has worked on Classification and Compensation studies for the following agencies:
• Cities/Towns: Antioch, Calistoga, Campbell, Concord, Laguna Beach, Los Gatos, Milpitas, Monte Sereno, Newport Beach, Palo Alto, Perris, Piedmont, Rio Dell, San Diego, San Mateo, Santa Cruz, Saratoga
• Special Districts: Central Fire Protection District of Santa Cruz, Housing Authority of the County of Alameda, Local Agency Formation Commissions of Santa Clara and Sonoma County, Metropolitan Transportation Commission, Napa Sanitation District, Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
28 35 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com 10 Ojai Valley Sanitary District, Orange County Fire Authority, San Francisco Bay Area Water Emergency Transportation Authority (“WETA”), Santa Clara Valley Open Space Authority, Santa Clara Valley Water District, West Valley Sanitation District Sarah earned her B.A. degree in Anthropology from Beloit College, in Wisconsin, and was awarded her M.A. in Anthropology from California State University, in Chico.
Sarah will provide H.R. Associate support for this project, including classification analysis, interviews with employees and management, compensation data collection and analysis, internal job analysis, development of recommendations, and implementation strategies.
Cindy Harary, B.A.
Senior H.R. Associate
Cindy’s professional qualifications include over 32 years of experience in the Human Resources field, primarily in classification and compensation. She spent the first 11 years in the public sector working for the City of Whittier, California, where she started out in their Public Works Department before moving to the Human Resources Department. She gained experience in classification and co mpensation, recruitment and selection, employee training and development, labor relations, and general human resources administration.
For the next 16 years, Cindy worked as a Human Resources Consultant for a consulting firm where she specialized in condu cting classification and compensation studies for multiple public sector agencies including cities, counties, and special districts as well as several private sector clients. Some of the Orange County Cities she worked on in partnership with other consultants at that firm were: Cities of Brea, Laguna Beach, Lake Forest, La Palma, Los Alamitos, Placentia, San Clemente, Stanton and Tustin. In Los Angeles County, her work includes: Cities of Corona, Downey, El Monte, Manhattan Beach, and Upland. Finally, in San Bernardino County she has worked on the City of Rancho Cucamonga.
Since joining Koff & Associates in 2015, Cindy has worked on Classification and/or Compensation studies for:
• Cities/Towns: Anaheim, Big Bear Lake, Campbell, Carmel, Corona, Danville, Davis, Indian Wells, Laguna Niguel, Los Altos, Manteca, Menifee, Murrieta, National City, San Diego, Santa Ana, Santa Barbara, Seal Beach, Tracy, Yucca Valley • Counties: Orange
• Education: Compton College
• Special Districts: Alameda Housing Authority, Altadena Library District, Bay Area Water Supply and Conservation Agency, Cosumnes Community Services District, Eastern Municipal Water District, Encina Wastewater Authority, Housing Authority of Alameda County, Housing Authority County of San Bernardino, Housing Authority for the County of Santa Barbara, Humboldt Waste Management Authority, Inland Empire Utilities Agency, Monte Vista Water District, North Coast County Water District, Orange County Fire Authority, Orange County Mosquito & Vector Control District, Oro Loma Sanitary District, Port of Hueneme, Rincon del Diablo Municipal Water District, Riverside County Transportation Commission, Santa Clarita Valley Water Agency, South Coast Air Quality Management District, Sweetwater Authority, Trabuco Canyon Water District, Vallecitos Water District, Water Replenishment District of Southern California, Western Municip al
W
ater District
Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
2835 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com
11 Cindy earned her B.A. degree in Broadcast Journalism at California State University, Long Beach.
Cindy will provide H.R. Associate support throughout this effort, including classification analysis, interviews with employees and management, compensation data collection and analysis, internal job analysis, development of recommendations, and implementation strategies.
Renate Tiner, B.Sc.
H.R. Associate
Renate’s professional qualifications include five years of both non -profit and private sector Human Resources experience. Starting in Human Resources administration and rising into Human Resources management, she gained experience in full -cycle recruitment, orientation and on -boarding, Health and Safety, Worker’s Compensation, licensing and accreditation, policy development, and general Human Resources administration.
Since joining Koff & Associates in 2017, Renate has worked on Classification and Compensation Studies for the following agencies:
• Cities: Bellflower, Concord, Cupertino, El Monte, Hillsborough, Los Altos, Mt. Shasta, Piedmont, Rohnert Park, San Diego, Sausalito, West Sacramento • Special Districts: Alameda County Transportation Commission, Bay Area Water Supply and Conservation Agency, Eastern Municipal Water District, Dublin -San Ramon Services District, Foothill- De Anza Community College District, Groveland Community Services District, Los Angeles County Employees Retirement Association, Metropolitan Transportation Commission, Midpeninsula Regional Open Space District, Port of Long Beach, Riverside Community College District, and San Joaquin County Superior Court Renate earned her B.Sc. degree in Psychology from the University of Northern British Columbia, in Prince George BC, Canada. She was a Canadian Human Resource Professional (CHRP) Candidate before moving to the United States.
She will provide H.R. Associate support throughout this effort, including classification analysis, interviews with employees and management, compensation data collection and analysis, internal job analysis, development of recommendations, and implementation strategies.
Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
2835 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com
12 REFERENCES
Agency & Project Contact
City of East Palo Alto (population: 29,593)
Classification and Compensation Study, completed 2020.
Sandra Floyd
Human Resources Manager
(949) 500-0436
Second Floor, 2415 University Ave.,
East Palo Alto, CA 94303
[email protected]
City of Elk Grove
Ongoing classification and compensation studies since 2020.
Ms. Melissa Rojas
Human Resources Director
8401 Laguna Palms Way,
Elk Grove, CA 95758
(916) 478-2208
[email protected]
City of Fowler
Classification & Compensation Study 2022
Ms. Wilma Tucker
Human Resources Director
(559)834-3113
128 S. 5th St.
Fowler, CA 93625
[email protected]
Town of Hillsborough (population 11,447)
Classification and Compensation Study, completed in 2019.
Ms. Kristin Armbruster
Human Resources Manager
(650) 375-7502
1600 Floribunda Avenue
Hillsborough, CA 94010
[email protected]
City of Mt. Shasta (Population: 3,275)
Classification and Total Compensation Study, completed 2019.
Ms. Muriel Terrell
Finance Director
(530) 926-7510
305 N. Mt. Shasta Boulevard
Mt. Shasta, CA 96067
[email protected]
City of Oakland (population: 425,195)
Compensation Study for Local 21, and another Compensation Study for Local 1021, both completed 2017.
Currently working on a point-factor analysis of up to 600 classifications between the City of Oakland and the Port of Oakland, a department of the City, to determine whether they are “common.” (April 2020)
Mr. Ian Appleyard
Dir. of Human Resources Management
(510) 238-3112
150 Frank Ogawa Plaza, 2nd floor
Oakland, CA 94612
[email protected]
City of Palo Alto (population: 67,178)
Classification Study, completed 2020.
Ms. Sandra Blanch
Assistant Director, Human Resources
(650) 329-2376
Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
28 35 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com 13 Various Compensation Studies from 2009 through 2018.
The Compensation Surveys we have completed have included as few as 35 benchmarks and as many as over 300 classifications representing close to 1,000 employees, including executive, senior, and mid-management, fire police and SEIU.
250 Hamilton Ave.
Palo Alto, CA 94301
[email protected]
City of Redwood City (population: 86,685)
C
onducted several classification studies, 2021.
Compensation Study, 24 Executive Classes, completed 2018.
Classification Study, 24 classifications, completed 2018.
Classification Study, completed 2017.
Miscellaneous Classification Studies, since 2016.
Ms. Michelle Katsuyoshi
Human Resources Director
(650) 7
80-7288
1017 Middlefield Road
Redwood City, CA 94063
[email protected]
N
ote: Ms. Katsuyoshi was a reference
for K&A when she was at the City of
Morgan Hill. She is now at the City of
Redwood City.
City of Sacramento (population: 501,901)
M
ultiple Classification and Compensation studies, 2009 – 2017.
Ms. Christen Snyder
Administrative Analyst
(916) 8
08-3148
951 “I” St., First Floor
Sacramento, CA 95814
[email protected]
Sonoma County Library
C
lassification and Compensation Study, completed 2015.
Mr. Brett Lear
Executive Director
Garfield County Public Library District
(970) 625-4270
207 East Ave,
Rifle, CO 81650
[email protected]
Note: Mr. Lear was the Executive Director
at Sonoma County Library during the time
of the study. He is now at the Garfield
County Public Library District, which is also
a K&A Client.
Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
28 35 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com 14 EXECUTIVE SUMMARY, APPROACH, METHODOLOGY
The City desires human resources assistance to conduct a city-wide classification and compensation study, develop a detailed and comprehensive report of each phase and assist the Director of Human Resources and Deputy Director of Human Resources in meeting with designated representatives from City Labor organizations, advising and consulting with the City Council and the City Manager on matters relating to study communication, compensation philosophy, and best practices in classification.
The City currently employs approximately 1,258 regular employees occupy ing approximately 300 classifications. Approximately 30 classifications are in safety units and will not be included in the study. Per the RFP we understand there are 226 budgeted and approved journey-level and higher, non-safety positions (Miscellaneous). We further understand the study should be contained to classificaitons which are traditionally benchmarked, single position, or unique in some other fashion.
The City has a total of 16 employee units, of which 14 are Miscellaneous. Below are the units, employee representation organizations, and approximate number of classifications and employees in each Miscellaneous unit.
Miscellaneous Employee Organizations and Employee Units Approx. # of Employees
Approx. # of
Classifications
Unit 3 – Operating Engineers Local 3 (Maintenance) 100 11 Unit 4, 6, 7 – Teamsters Local 856 (Support Services, Professional, and Technical) 415 118 Unit 8 – SEIU Local 1021 (Transit) 60 2
Unit 10 – Unrepresented (Executive Management Group) 16 16 Unit 11 – Unrepresented (Mid-Management Group) 17 10
Unit 12 Unrepresented (Confidential Group) 14 8
Unit 13- Operating Engineers Local 3 (Mechanics) 18 4
Unit 14- SEIU Local 1021 (Police Civilian Technical Unit) 53 6 Unit 16- Operating Engineers Local 3 (Utilities Systems Operators) 59 4 Unit 17- Santa Rosa Attorneys Association (Teamsters Local 856) 7 1 Unit 18- Santa Rosa Management Association (Mid-Management) 135 80 T
he study’s first level of effort is to initially develop an updated and well-structured classification system and classification descriptions for all study positions that are legally compliant (including Fair Labor Standards Act ( “FLSA”) and Americans with Disabilities Act ( “ADA”) requir ements), internally aligned, reflective of contemporary standards, and accurately descriptive of current roles, responsibilities, duties, and qualifications. The classification analysis process includes orientation and briefing sessions with employees, management, Human Resources, union representation, and other stakeholders, as appropriate; the completion of a position description questionnaire by employees; interviews with at least a representative sample of employees in each study classification; and interviews with supervisors and management to address any classification issues. All participating employees will be allocated t o an appropriate classification; draft classification descriptions will be developed, and sent back to the City and incumbents for additional feedback and concurrence.
A second level of effort will be to review the City’s compensation structure for the studied classifications and to conduct a total compensation market survey (salaries plus benefits) using a set of appropriate comparator agencies. The identification of comparator agencies, benchmark classifications, and benefits to be collected is an iterative process that includes all stakeholders. We have found this open discussion philosophy to be critical to our success for organizational buy-in. Once the external data development is Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
28 35 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com 15 completed, we will make specific recommendations for internal equity for non-benchmarked classifications and classifications without a large enough market sampling.
The compensation study will contain specific recommendations regarding the integration of all study classifications into the City’s compensation structure, with the goal of developing a clearly designed, internally equitable format that is flexible for career opportunity and future growth. Our study will make recommendations regarding a salary structure that takes the City’s compensation preferences into consideration as well as the appropriate placement of each classification on the City’s salary schedule.
The study includes a significant number of meetings with the Study Project Team, Human Resources Director, Deputy Director Human Resources, other key City leadersemployees, union representation, and the City Council, as desired. We have expertise in labor/management relations and understand the importance of active participation by all stakeholders to ensure a successful outcome. The meetings and “stakeholder touch -points” that we recommend ensure understanding of the project parameters, enhance accurate intake and output of information, and create a collaborative and interactive approach resulting in greater buy-in for study recommendations. This interactive approach has resulted in almost 100% implementation success of K&A’s studies.
The majority of our clients are unionized and our larger city and county clients typically have multiple unions. Due to the multitude of stakeholder groups who are affected by any compensation study K&A conducts, our team understands the importance of accurate and validated data that withstands any scrutiny, effective and ongoing communication throughout each effort, and collaboration with the various stakeholder groups to ensure organizational buy -in to our findings and recommendations. We have developed a unique methodology of stakeholder “touchpoints” and collaboration that has made us highly successful and effective and has earned our team respect, agreement, and understanding from all stakeholders. In addition, we adjust and customize our methodology based on each individual client’s unique needs and circumstances.
We also recognize that both the City and union representatives have obligations to employees and members to ensure that any study is conducted in a fair and equitable manner. Our project work plans are designed for transparency and we strongly encourage dialog with all stakeholders on study deliverables so they in turn can express their concerns; we all have a shared goal of ensuring the process followed is fair and equitable.
This intense and comprehensive stakeholder engagement and our transparent study processes are also a mechanism of quality control. The fact that our information, data, and recommendations have to be able to withstand utmost scrutiny by diverse stakeholders require an in -depth multi -step quality control process for deliverables. This involves K&A t eam member validation o f classification analyses and compensation data , K&A Project Manager review of all classification and compensation analyses, recommendations and deliverables, and finally K&A Principal (Project Director) review of deliverables before submittal to the client.
Study Objectives
Classification Objectives :
To analyze and update the City’s classification system and each study position’s classification description and structure through a comprehensive process of job analysis and evaluation, including review of existing documentation, position description questionnaire Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
2835 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com
16 completion, employee interviews, management interviews, analysis of existing positions and working situations, analysis of levels of duties and responsibilities, and other professional methods, as appropriate;
To recommend each study position for title change or reclassification (as appropriate), create new classifications (if applicable), eliminate outdated classifications (if applicable), and consolidate classifications assigned to similar functional areas (as appropriate); To provide for growth and flexibility of assignment within the new classification structure, where feasible, in recognition that some job duties and responsibilities may evolve over time, as well as to provide adequate career paths and class series/job families that will foster career service within the City;
To clearly state definitions of job classifications, the typical job functions, and minimum required and preferred/desired qualifications such as education, prior work experience, knowledge, skills, abilities, licenses, certifications, and physical demands and working conditions;
To provide a classification structure that ensures regulatory compliance, including allocation of each study position to the correct classification with appropriate FLSA designation as well as meeting ADA and EEO regulations; To provide for adequate educational, review, and appeal processes that w ill result in a product that is understood by all levels of personnel and is internally equitable; and To ensure sufficient documentation and training throughout the study, on methods used to determine appropriate classification and level, methods for logical progression of movement between classifications, classification concepts and distinguishing characteristics, as well as the delivery of final reports and recommendations to guide the organization in implementing, managing, and maintaining the classification system.
Compensation Objectives:
To make recommendations regarding a list of appropriate , logical and defensible comparator agencies, benchmark classifications, and benefits to be collected prior to beginning the compensation portion of the study;
To collect accurate salary and benefit data from the approved group of comparator agencies and to ensure that the inform ation is analyzed in a manner that is clear and comprehensible to the Study Project Team, Human Resources, management, employees, union representation, and the City Council;
To carefully analyze the scope and level of duties and responsibilities, requirem ents for successful work performance, and other factors for survey classes, according to generally accepted compensation practices;
To review the City’s compensation structure and practices and develop compensation recommendations that will assist the City in recruiting, motivat ing, and retain ing competent staff;
To develop solutions that address pay equity issues, analyze the financial impact of addressing pay equity issues, and create a market adjustment implementation strategy supporting the City’s goals, objectives, and budget considerations; To evaluate benefit offerings in the labor market and make recommendations for better alignment and/or different benefit offerings as indicated by the analysis and best practices;
Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
28 35 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com 17 To create a comprehensive final re port summarizing the compensation study approach and methodology, analytical tools, findings, and recommended compensation structure; To recommend appropriate internal salary relationships and allocate classes to salary ranges in a comprehensive salary range plan; and
To ensure sufficient documentation and training throughout the study, on methods used to determine appropriate salary ranges, methods for logical progression of movement within the salary scale for each classification, and other practices, so that our recommendations can be implemented and maintained in a competent and fair manner.
Overall Objectives:
To review and understand all current documentation, rules, regulations, policies, budgets, procedures, class descriptions, organizational charts, memoranda of understanding, personnel policies, wage and salary schedules, and related information so that our recommendations can be operationally incorporated with a minimum of disruption; To conduct start-up Study Project Team meetings with management, study project staff, and other stakeholders to discuss any specific concerns with respect to the development of classification and compensation recommendations; finalize study plans and timetables; conduct orientation sessions with manageme nt, union leadership, and staff in order to educate and explain the scope of the study and describe what are and are not reasonable study expectations and goals;
To work collaboratively and effectively with the City and its stakeholders while at the same time maintaining control and objectivity in the conduct of the study; To develop a classification and compensation structure that meets all legal requirements, that is totally non-discriminatory, and that easily accommodates organizational change, growth, and operational needs;
To document all steps in the process and provide documentation and training for Human Resources and other staff, as appropriate, in classification and compensation analysis methodologies so that the City can integrate, maintain, administer, and defend any recommended changes after the initial implementation; and To provide effective ongoing communications throughout the duration of the project and continued support after implementation.
Methodology / Work Plan / Deliverables
This section of the proposal identifies the actual work plan. We believe that our detailed explanation of methodology and work tasks clearly distinguishes our approach and comprehensiveness.
Our approach is to complete the classification and job evaluation before completing the compensation review. The reasons for this include:
The description of the work performed and the requirements for that work are, in the minds of the employees and their supervisors, inextricably associated with the “worth o f
t
hat work” or compensation, which is often a highly emotional issue. Separating the two phases of the study, even though elements of phases may be conducted concurrently, tends to produce more objective classification results. The compensation review will be completed when there is a full understanding of the work of the City, thereby ensuring that the data developed from the labor market and the City’s classifications is accurate.
Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
2835 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com
18 Given these parameters, our approach is as follows:
PHASE I: CLASSIFICATION STUDY
Deliverable A: Meetings with Study Project Team and Management Staff, Initial Documentation Review, and Development of Communications and Engagement Plan This phase includes identifying the City’s Study Project Team, contract administrator, and reporting relationships. Our team of Project Managers and H.R. Associates will conduct an orientation and briefing session with the Study Project Team to explain process and methodology; create the specific work plan and work schedule; identify subsequent tasks to be accomplished; reaffirm the primary objectives and specific end products; determine deadline dates for satisfactory completion of the overall assignment; determine who will be responsible for coordinating/scheduling communications with employees, management, union representation, and the Council; and develop a timetable for conducting the same.
We will also conduct and initial meeting with Department Heads to provide information regarding study methodology, process, timing and logistics and provide them an opportunity to communicate any areas of concerns and pain points they may be experiencing with the current classification and compensation system.
Included in this task will be the gathering of written documentation, identifying current incumbents, and assembling current class descriptions, organizational charts, salary schedules, budgets, memoranda of understanding (“MOU”), personnel policies, previous classification and compensation studies, operational and staffing information, and any other relevant documentation to gain a general understanding of City operations.
City terminology and methods of current classification and compensation procedures, as well as the written questionnaire instrument for the classification study that will be used in the job analysis phase will be reviewed and agreed to. We will discuss methodology, agree to formats for class descriptions and compensation results, identify appropriate comparator agencies, benchmark classifications, and benefits to be surveyed for compensation survey purposes. We will respond to any questions that may arise from the various stakeholders.
We will develop a communications and engagement plan to foster organizational buy-in and acceptance of study outcomes and consultant recommendations throughout the project by District stakeholders including employees. The goal of the communications and engagement plan is to build positive and effective relationships with the study stakeholders and achieve consensus whenever possible and to strive to understand and take into consideration stakeholders’ ideas, opinions, desires, and issues, and to fully address their concerns. The variety of communication and engagement channels will help inform, consult, involve, collaborate with, and empower City stakeholders and ensure that our methodology and “stakeholder touch-points” are followed and executed at each study milestone.
We are committed to working closely with City study advisors (Human Resources, Di strict leadership, employee representatives, if any, and other stakeholders) to understand the needs of the mutual constituencies (employees) and to ensure that the Study Project Team, K&A team, management, and any employee representatives meet the highest standards of stakeholder interaction, including communicating clearly, politely, honestly, and promptly, and treating everyone fairly, equally, and with respect. We understand that the positions included in this study are non -union and will work with the Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
28 35 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com 19 City’s HR and leadership team to determine how to best collaborate with the workforce whose body of work is being studied and evaluated.
The communications and engagement plan will enable us to respond to questions or concerns in a timely and professional manner. Our typical communication model includes at least weekly or biweekly written status updates to keep the City informed on where we are for every element of the project. Over the last two years, we have learned that most communication can be managed through email and teleconferences and that the work we do can be accomplished successfully and, in fact, more efficiently, by performing it virtually and remotely.
In addition, the study includes a significant number of meetings with the Study Proj ect Team, Human Resources, management, employees, and the Board of Directors, as desired. The meetings and “stakeholder touchpoints” that we recommend ensure understanding of the project parameters, enhance accurate intake and output of information, and improve a collaborative and interactive approach that will result in greater buy-in for study recommendations. This interactive approach, although time-consuming, has resulted in almost 100% implementation success of K&A’s studies.
Deliverable B. Orientation Meetings with Employees
We will facilitate several orientation meetings with employees over the course of several days and distribute our Position Description Questionnaire (“PDQ”) to start the classification portion of the study.
While these meetin gs are not mandatory, they form the beginning of the educational process that continues throughout the study. We will discuss the importance of the employees’ involvement in the study and their participation in PDQ completion and job analysis interviews. Project processes will be explained, expectations will be clarified, and elements that are not a part of the study will also be covered.
Questions will be answered and a detailed explanation and examples for completing the PDQ will be given.
The Positi on Description Questionnaire (“PDQ”) will be discussed with the Study Project Team and customized as needed to meet the study objectives prior to distributing copies to employees.
Each PDQ will be handed out with the incumbent’s current class description attached to the questionnaire so the employee can use this as a tool for completing the questionnaire.
In the past, we have typically conducted these orientation sessions in person, onsite, and at various client locations. We have experience in conducting business virtually and have found that it can be a much more efficient and cost effective approach of our clients. We can provide the City with many technological options to ensure a smooth process, as we have with many of our clients during the last two years.
Examples include:
Scheduling app: Purchasing a scheduling web application for employee orientation sessions where up to 100 people can attend a session; employees can choose a session date and time and receive a confirmation which populates their calendar, and sends them a meeting reminder; it also generates attendee lists.
Orientations: Providing more flexible options for employee orientation sessions by offering fewer options per day over a higher number of days to accommodate employee schedules; onsite meetings require a larger number of daily sessions over a more limited number of days. FAQs: Preparing a series of FAQ's for each study which are made available to employees after the orientation sessions.
Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
2835 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com
20 Recording meetings: Videotaping our employee orientation sessions (we also do this for onsite sessions) for employees who cannot attend a session; or simply recording a video -conference orientation session that employees could watch later.
Chat lines: Training our staff on the use of communication tools such as chat lines; we intersperse our employee orientation session presentations with multiple points when questions can be asked.
Post-meeting help: Remaining in the orientation session for about 5 -10 minutes after it has "officially" ended in the event some employees want to stay behind to ask questions. Safeguards: For employee interviews, as we generally do, we prepare the schedules of dates and times for each employee and the client coordinates scheduling employees with departments, using agreed upon meeting options for employees. Safeguards are in place to ensure that only the employee/ employees (for group interviews) in that time slot can access the meeting, such as virtual "waiting rooms."
Telephone support: Providing a direct telephone number for the K&A Project Mana ger to departments in the event there are scheduling or access issues. Time between meetings: Scheduling 10 -15 minutes between meetings, versus on -site back to back meetings; this change results in slightly fewer meetings per day, but provides a less "hurried" nature to the meetings; and because the meetings are not onsite, clients do not need to reserve multiple meeting rooms for multiple days.
Our clients have received these operational changes very positively. We continue to ask our clients for feedback so we can implement continuous improvements. We recognize not all clients have the same technology as we do, which means we must provide viable technology options. While we provide multiple options, the expertise of our associates in asking relevant and probing questions of each study participant to better understand each employee's work is critical to the job evaluation interview process (see more information regarding employee interviews below). Our client -centric approach and methodology does not change with the venue.
Deliverable C. Collection and Review of PDQs
We recommend giving employees in the same classification the option of collaborating on completing a PDQ together, if the employees so choose. At the same time, we will invite employees to complete an individual PDQ if they prefer and if they wish to be i nterviewed separately. We provide an electronic version of our questionnaire so that employees can more easily complete it. Employees complete the questionnaire and then send it to their supervisor for review, comment, and signature. We typically require a second level of review by the next level of management in the reporting structure. This ensures that all staff have an opportunity to provide information as to what the nature of the job is for each job classification.
Upon receipt of the PDQs in our office, K&A staff will review and analyze the PDQs in detail along with other documentation to obtain an understanding of the duties and responsibilities assigned to each position.
Deliverable D. Interviews with Employees, Supervisors, and Management Interviews will be scheduled with employees. Because this is a critical step in the information -gathering and educational process, we recommend scheduling interviews with at least a representative sample of employees in each classification that will be inc luded in the study. Typically, we employ the following approach and interview:
Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
28 35 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com 21 All employees in single-position classifications;
An adequate sampling of employees in multiple-position classifications; and Any employee who requests an interview.
We will offer employees the option to be interviewed in a focus group session with incumbents in the same classification or to request an individual interview if they prefer. We recommend individual interviews only if the employee wants to discuss certain issues (e.g., out of class responsibilities, etc.) in privacy with the consultant.
Interviews will then be held with supervisory and management staff (division managers, department heads, etc.), who will clarify their own responsibilities and/or confirm the information we have received in the interviews with their staff (we allow more time for these interviews).
The purpose of the interviews is to clarify and supplement the questionnaire data and to respond to potential perception differences regarding roles, tasks, scope, and supervisory responsibilities. The appropriateness of the following will be assessed:
Work being completed and relationships of positions to each other within a
d
ivision/department as well as across the organization; and Classification structure and reporting structure.
Deliverable E. Classification Concept and Preliminary Allocation Prior to developing detailed class descriptions, our job evaluation will result in a classification concept and employee allocation document that will be submitted to the City for review and approval. We will compare changes in business need and operations, as well as any reorganizations, with the established classification system and job families as well as review internal relationships between classifications to define the reasons for, and effects of, the proposed changes.
Our job analysis method is the whole position analysis approach. Objective factors in the whole position job analysis methodology include:
1. Decision making/judgment
2. Difficulty and complexity of work
3. Supervisory responsibilities
4. Non-supervisory responsibilities
5. Minimum qualifications
6. Working conditions/risk factors
7. Contacts
This document will list broad class concepts and highlight where significant changes may be recommended, such as creating or collapsing class series in the same functional area and/or separating or combining classifications assigned to different functional areas. We will review and analyze potential career ladders and promotional opportunities, including clearly delineated and distinguished levels within classification series. We will also review and update established titling guidelines for the studied classifications for appropriate and consistent titling.
A detailed, incumbent -specific allocation list for each position included in the study will be prepared, specifying current and proposed classification title and the impact of our recommendations (reclassification – upgrade or downgrade, title change, or no change).
Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
28 35 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com 22 After we have completed this process, a meeting will be arranged to review any recommended changes to the classification plan with the Study Project Team.
Deliverable F. Draft Class Description Development
After preliminary approval of the class concepts and allocation lists, new and/or updated class descriptions will be developed for each proposed classification, following the format approved by the City.
From the review of the PDQs and employee interviews, we will update duties, responsibilities, and minimum qualifications of each class specification, as necessary. We will develop new class specifications if duties, responsibilities, and minimum qualifications have changed significantly, and/or if we recommend new classifications/class levels, and/or if operational changes, business needs, or reorganizations, have occurred.
Following EEO Uniform Guidelines, we will review, analyze, and update, as appropriate, knowledge, skills, abilities, education and experience, position definitions, purpose, distinguishing characteristics, supervision received and exercised, position functions and special requirements including licensing and certifications that are required and desirable. We will address relevance and hierarchical consistency of each classification and each class series.
We will also review and update physical demands based on the most typical job functions of each classification in accordance with the ADA.
Finally, we will review each classificatio n’s typical job functions and determine exempt vs. non -exempt status in accordance with “white collar” exemptions under the FLSA.
Deliverable G. Facilitation of Draft Class Description Review and Employee Feedback Process A draft copy of the revised/new c lass description with allocation recommendation will be submitted to the Project Team and subsequently to each manager, supervisor, and employee, to give each stakeholder group an opportunity to provide comments and concerns regarding any modifications to the classification structure and specifications. Our experience has been that this is one of the most critical phases of the project (as well as one of the most time-consuming). Our proactive and effective communication process at this juncture has alway s avoided formal appeals, adversarial meetings, or major conflicts at the conclusion of our studies.
We will work with the study’s stakeholder groups, including employee representation, to determine the best approach to reviewing the draft classification s pecifications, and how to provide feedback to us.
Supervisors and managers typically receive a copy of their employees’ draft class descriptions and will be asked to review their employees’ comments and feedback to verify and concur with, or recommend changes to, the information provided.
Significant employee comments will be reviewed with management prior to making any significant changes to the proposed class plan. These discussions will be by email, telephone, or additional direct personal contact with employees, depending upon the extent of the response.
Allocation and/or class description changes will be made as required and the class specifications will be finalized and submitted for approval. All employees who submitted their comments during the rev iew process will be notified in writing regarding the outcome of their concerns.
Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
28 35 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com 23 Deliverable H. Classification Plan and Draft of Interim Report and Final Report A Draft Interim Report of the Classification Study will be completed and submitted to the Study Project Team for review and comment. The report will contain:
Classification recommendations for each studied position, including documentation regarding study goals and objectives, classification methodology, approach, and process as well as all findings, analysis, and resulting recommendations; The recommended allocation list, classification title changes, job family and career ladder/career growth issues, reporting relationships, and other factors will all be included;
The recommended classification structure will be in alignment with current business/ operational needs of the City; and
Classification concepts and guidelines as well as methods used to determine appropriate classification and level, methods for logical progression of movement between classifications, distinguishing characteristics and other pertinent information for implementation and continued maintenance of the recommendations will be detailed.
Once we have received comments from the Human Resources Director, Deputy Director Human Resources, and other key City leaders regarding the Draft Interim Report and have made any necessary changes, a Final Classification Report will be developed.
PHASE II: TOTAL COMPENSATION STUDY
Deliverable A. List of Comparator Agencies, Benchmark Classifications, and Benefits to be Collected During the initial meeting with the Study Project Team, we will discuss and agree to the compensation study factors. We will identify/confirm appropriate, logical and defensible comparator agencies that will be included in the external market survey, which will be the foundation for ensuring that the City’s salaries for the studied classifications are competitively aligned with the external labor market . We will also identify/confirm those classifications that will be surveyed in the market (i.e., benchmark classifications), with the intention of internally aligning the remaining classifications with those that were surveyed.
Finally, we will determine the list of benefits that the City wants to include in the total compensation data gathering process.
1. D
etermination of Comparator Agencies
The selection of comparator agencies is a critical step in the study process. We typically use the following factors to identify appropriate comparators and will receive approval before proceeding with the total compensation study.
Our recommended methodology is that we involve management, Human Resources , employee representation, and the City Council, in the decision- making process of selecting which comparable agencies are included, PRIOR to beginning the study. Our experience has shown that this is the most successful approach. The factors that we typically review when selecting and recommending appropriate comparator agencies include:
Organizational type and structure – While various organizations may provide ov erlapping services and employ some staff having similar duties and responsibilities, the role of each organization is somewhat unique, particularly in regard to its relationship to the citizens it serves and level of service expectation. During this iterative process, the City’s current/ Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
28 35 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com 24 previous list of comparators, if any, and the advantages/disadvantages of including them or others would be discussed.
Similarity of population served, City demographics, City staff, and operational budgets – These elements provide guidelines in relation to resources required (staff and funding) and available for the provision of services.
Scope of services provided – While having an organization that provides all of the services at the same level of citizen expectation is ideal for comparators, as long as the majority of s
ervices are provided in a similar manner, sufficient data should be available for analysis.
When reviewing this factor, the City’s unique services would be evaluated in order to ensure that the majority of comparators provide the same services. This ensure s that each comparator yields a sufficient number of matches for the City’s jobs. Labor market – The reality of today’s labor market is that many agencies are in competition for the same pool of qualified employees, because large portions of the workforce don’t live in the communities they serve, are accustomed to lengthy commutes, and are more likely to consider changing jobs in a larger geographic area than in the past. Therefore, the geographic labor market area (where the City may be recruiting from or losing employees to) is taken into consideration when selecting potential comparator organizations. As part of this analysis, we will determine whether the City has identified agencies that it competes with for qualified talent; those agencies are taken into consideration for purposes of our analysis. It is important to understand and consider the City’s competitive landscape and include agencies in the study to whom the City loses talent.
Cost-of-living – The price of housing and other cost -of-living related issues are some of the biggest factors in determining labor market s. We review overall cost -of-living of various geographic areas, median house prices, and median household incomes to determine the appropriateness of various potential comparator agencies.
We typically recommend using 10-12 comparator agencies for all survey benchmarks in order to achieve statistical significance but are flexible and can easily use a different approach based on the City’s preferences.
2. Determination of Benchmark Classifications
In the same collaborative manner as described in Step 1 above, we will work with the City’s stakeholders to select those classifications that will be surveyed. “Benchmark classes” are ordinarily chosen to reflect a broad spectrum of class levels. In addition, those that are selected normally include classes that are most likely to be found in other similar agencies, and therefore provide a sufficient valid data sample for analysis. Internal relationships will be determined between the benchmarked and non-benchmarked classifications and internal equity alignments will be made for salary r ecommendation purposes. Due to the fact that the labor market typically yields reliable data, we recommend using approximately 60-65% of all classifications as benchmarks but we are happy to use a different model.
3. D
etermination of Salary and Benefits Data to Be Collected I
n addition to base salaries, benefit data elements for a total compensation study normally include at least the following (which are generally available to all staff in a specific job classification) :
Employee Retirement, Retiree Healthcare cost, Health, Dental, Vision, and other insurance Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
28 35 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com 25 coverage, Vacation, Holidays, Administrative Leave, Deferred Compensation, Auto Allowance, and other benefits that the City wants to add.
Monthly Salary – The top of the normal, published salary range. All figures are presented on a monthly or annual basis. We normalize the salary data to reflect number of hours in the work week and/or roll-up of retirement or other benefits in base salaries. Employee Retirement – This includes two figures: the amount of the employee’s State or other public or private retirement contribution that is contributed by the agency and the amount of the agency’s Social Security contribution.
Retiree Healthcare – Given that healthcare costs are rising and retiree healthcare and liabilities increasing for many public agencies, we collect this information to capture the costs. Insurance – This typically includes Health, Dental, Vision, and other insurance coverage. Leave – Other than sick leave, which is usage-based, leave is the amount of days off for which the organization is obligated. We will discuss with the City whether leave days/hours should be converted to direct salary cost in dollars or represented in days/hours. Vacation: The number of vacation days available to all employees after five years of employment.
Holidays: The number of holidays (including floating) available to the employee on an annual basis.
Administrative/Personal Leave: Administrative leave is normally the number of days available to management staff to compensate for the lack of payment for overtime.
Personal leave may be available to other groups of employees to augment vacation or other time off.
Deferred Compensation – We report any employer c ontribution made on the employee’s behalf, whether dollar amount or percentage of salary, that does not require an employee- matching contribution. We can also report employer contributions that do require an employee match and would do so as a separate report.
Other – This category includes any other benefits that are available to all employees within a classification and not already specifically detailed.
Deliverable B. Data from Comparators and Preliminary Analysis of Data K&A does not collect market compensation data by merely sending out a written questionnaire. We find that such questionnaires are often delegated to the individual in the department with the least experience in the organization and given a low priority. Our experienced compensation analysts conduct all of the data collection and analysis to ensure validity of the data and quality control. This approach also ensures that we compare job description to job description and not just job titles, therefore ensuring true “matches” of at least 70%, which is the percentage we use to determine whether to include a comparator classification or not.
As mentioned above in the Classification methodology , our job analysis method is the whole position analysis approach.
We typically collect classification descriptions, organization charts, salary schedules, personnel policies, budgets, master plans, operational information, MOUs, and other information via website, by telephone, or by an onsite interview. With the prior knowledge from the data gathered directly from each comparator agency and our experience in the public sector human resources field, our compensation analysts make preliminary “matches” and then schedules appointments by telephone, or sometimes in person, with Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
28 35 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com 26 knowledgeable individuals to answer specific questions. We find that information collected using these methods has a very high validity rate and allows us to substantiate the data for employees, management, and governing bodies.
Data will be entered into spreadsheet format designed for ease of interpretation and use. The information will be presented in a format that will identify the comparator positions used for each classification comparison. Information will be calculated based upon both average and median figures allowing the City to make informed compensation decisions. Other elements of the compensation survey report are agencies surveyed; comparable class titles; salary range maximum/control point; number of observations; and percent of the City’s salary range is above/below the market values.
In addition, we will include any type of statistical representation and analysis that the City desires such as 60 th, 70th, or any other percentiles per the City’s compensation philosophy.
Benefits data will be displayed in an easy-to-read format. You will receive three sets of spreadsheets per classification, one with base pay, one with the benefits detail, and one with total compensation statistical data. In addition, we are often asked to collect “other” benefits (as listed in the benefits section above), which we typically report on a separate spreadsheet.
Deliverable D. Draft Compensation Findings/Additional Analysis/Study Project Team Meetings As part of our transparent approach and communication strategy to ensure organizational buy -in to the study, we share the market survey with the organization. We first distribute our draft findings to the Study Project Team. After their preliminary review, K&A will meet with the Study Project Team and other stakeholders (including Human Resources, management, employees, and their representatives) to clarify data, to rec eive requests for reanalysis of certain comparators, and to answer questions and address concerns. This provides an opportunity for the Study Project Team and other stakeholders to review and question any of our recommended benchmark comparator matches. If questions arise, we conduct follow-up analysis to reconfirm our original analysis and/or make corrections as appropriate.
Deliverable E. Analysis of Internal Relationships and Alignment To determine internal equity for all studied positions, considerable attention will be given to this phase of the project. It is necessary to develop an internal position hierarchy based on the organizational value of each classification. Again, we utilize the whole position analysis methodology as described earlier.
By reviewing those factors, we will make recommendations regarding vertical salary differentials between classes in a class series, for example, as well as across departments. This analysis will be integrated with the results of the compensation survey and the City’s existing compensation plan.
The ultimate goal of this critical step in the process is to address any potential internal equity issues and concerns with the current compensation system, including compaction issues between certain classifications. We will create a sound and logical compensation structure for the various levels within each class series, so that career ladders are not only reflected in the classification system but also in the compensation system, with pay differentials between levels that allow employees to progress on a clear path of career growth and development. Career ladders will be looked at vertically, as well as horizontally, to reflect the City’s classification structure that was developed during the classification phase of the study.
Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
28 35 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com 27 Deliverable F. Compensation Structure and Implementation Plan Depending on data developed as a result of the internal analysis, we will review and make recommenda- tions regarding internal alignment and the salary structure (set of salary ranges, salary differentials, steps within ranges, and/or alternative compensation plans) within which the classes are allocated, based upon the City’s preferred compensation model. In addition, we will develop externally competitive benefit comparisons for all classifications. We will also assist the City in developing a compensation philosophy and practices relative to the surveyed public jurisdictions, if desired. Finally, we will develop a proposed implementation plan based on the study results and recommendations.
We will conduct a competitive pay analysis using the market data gathered to assist in the determination of external pay equity and the recommendation of a new base compensation structure , if desired. We will conduct a comparative analysis to illustrate the relationships between current pay practices and the newly determined market conditions and develop solutions to address pay equity issues, analyze the financial impact of addressing pay equity issues, and create a market adjustment implementation strategy supporting City goals, objectives, and budget considerations.
Draft recommendations will be discussed with the Study Project Team and management for discussions and decisions on overall pay philosophy and the practicality of acceptance and prior to developing an Interim Report.
Deliverable G. Final Report and Guidelines for Implementation Volume II (Draft Interim Report of the Compensation Study) will be completed and submitted to the Study Project Team for review and comment. The report will provide detailed compensation findings, documentation, and recommendations. The report will include:
An executive summary of the compensation study results; A set of all market data spreadsheets;
A proposed Salary Range Placement document;
A procedure to address employees whose base pay exceeds the maximum of their newly assigned pay range;
Implementation issues and cost projections surrounding our recommendations; and A guide for rules, policies and procedures for the City in implementing, managing and maintaining the compensation system, as appropriate
.
O
nce all of the questions/concerns from Human Resources Director, Deputy Director Human Resources, and other key City leaders are addressed and discussed, a Final Classification and Compensation Report will be created and submitted in the City’s preferred format. The Final Report will incorporate any appropriate revisions identified and submitted during the review of the draft report.
Deliverable H. Formal Appeals Process
Should the City have an formal appeals process regarding the allocation of positions to classifications and of classifications to salary ranges, this proposal does not cover time regarding a formal appeal process.
Should our on-site participation be desired, our stated composite hourly rate will be honored. As mentioned above, however, our internal process usually addresses any of these issues.
Deliverable I. Final Presentation
Our proposal includes multiple meetings and weekly oral and written status/progress updates to the Study Project Team. Regarding the involvement of the City Council, etc., we recommend at least one initial Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
28 35 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com 28 meeting to confirm /identify the comparator agencies to be included in the study, one interim study session (to discuss the initial findings of the compensation study), and one final presentation of our Final Report. Of course, we are flexible regarding having more or less interaction with the Council, based on the City’s preferences.
Expectations of City Support:
In order to conduct this study in the most timely and cost -effective manner, we ask for support in the following areas:
Timely provision of written documentation, such as current class specifications, union contracts, organizational charts, budget documents, requests for audits, past studies, etc.; Assistance in the notification and scheduling of orientation and other meeti ngs and the provision of adequate interview space and resources;
Assistance in the compilation of current descriptions with the PDQ; collecting and forwarding questionnaires; and in ensuring that materials are complete and returned in a timely manner; Assistance in scheduling study project team, bargaining unit, management, employee audit, and other meetings; and
Meeting agreed-upon timelines.
In terms of time commitment for City staff, we understand that the City hires an outside consultant to conduct and coordinate the entire effort. Therefore, it is our goal to reduce the time commitment of City staff as much as possible and to only request assistance in the coordination of some of the steps in the process, such as scheduling employee orientation meetings, duplicating PDQs, scheduling employee interviews/desk audits, disseminating information, and in general, being a channel of communication between our firm and employees.
Communication with the City:
Our typical communication model includes at least weekly or biweekly written status updates to keep the City informed on where we are during each phase of the project.
In addition, the study includes a significant number of meetings with the Study Project Team, human resources, management, employees, employee representation, and the City Council, as desired. The meetings and “stakeholder touch- points” that we recommend ensure understanding of the project parameters, enhance accurate intake and output of information, and foster a collaborative and interactive approach that will result in greater buy -in for study recommendations. This interactive approach, although time-consuming, has resulted in almost 100% implementation success of K&A’s studies. Post-Implementation Consultation and Support:
We are committed to providing the City with the highest-quality product and service. Providing ongoing consultation and support after study implementation is a service that is included in our professional fees and a continued relationship-building aspect of our client relationship that we highly value.
We often find that clients will call or email with follow-up questions and to discuss certain aspects of the study, ask why decisions and recommendations were made, and other important components of the study. We consider post-implementation support as part of our customer service.
Should the City request any additional onsite meetings and/or training after implementation of the study and/or other specific, identifiable work efforts, such as position reclassification studies, creating new class Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
28 35 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com 29 descriptions, or conducting annual surveys, we would ho nor our composite hourly rate for actual hours spent at the City. However, from experience, we expect that most follow- up support will be conducted via telephone and email and this is absolutely included in our “Not To Exceed Fee” for this project. Stakeholder Engagement:
The meetings and communications with stakeholders that we recommend ensure understanding of the project parameters, enhance accurate intake and output of information, and encourage a collaborative and interactive approach that will result in greater buy-in for study recommendations. This interactive approach, although time -consuming, has resulted in almost 100% implementation success of K&A’s studies.
We believe in an interactive and collaborative process with the whole organization and in a high level of stakeholder contact and interaction to ensure organizational buy -in of the study throughout the entire process. Following are the major milestones at which we touch base with Human Resources, employees, managers, employee representation, and other stakeholders, as appropriate:
Initial study kick-off and employee/management orientation meetings; PDQ completion and review;
Employee and management interviews;
Employee, management, and Human Resources review of draft class descriptions; Contact with employees and management to address final classification issues; Stakeholder input regarding a list of appropriate comparator age ncies, benchmark classifications, and benefits to be collected;
City stakeholder review of compensation study data and contact with them to address any challenges to the market comparables we identified for each classification; Stakeholder input on internal salary relationship analysis and recommendations; and Stakeholder input regarding final compensation plans and structure recommendations.
These steps will ensure that the study results in a product that is accepted and trusted by all levels within the or ganization. Beyond sound mechanics, our approach includes sufficient communication steps to ensure that the study methodology is understood and the results are regarded as expert, impartial, and fair.
Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
28 35 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com 30 TIME REQUIREMENTS
Our professional experience is that classification and compensation studies of this scope and for this size organization take approximately twelve months to complete, allowing for adequate PDQ completion, interview time, classification description review and/or development, compensation data collection and analysis, review steps by the City, the development of final reports, any appeals, and presentations.
P
er RFP, the City would like to start the project in February 2023 and complete it no later than May 2024.
This timeline is realistic and achievable.
T
he following is a suggested timeline (which can be modified based on the City’s needs):
Deliverables Classification Study Completion by:
A. Meetings with Study Project Team and Management Staff and Initial Documentation Review Week 1
B. Orientation Meetings with Employees and Distribution of PDQ Week 3 C. PDQ Completion and Review Week 11
D. Employee/Supervisory/Management Interviews Week 17
E. Classification Concept/Preliminary Allocation Development Week 23 F. Draft Class Description Development/Update Week 35
G. Draft Class Description Review and Employee Feedback Process Week 41 H. Finalize Classification Plan/Draft Interim Report/Final Report Week 45 Deliverables Total Compensation Survey Completion by:
A. List of Comparator Agencies, Benchmark Classifications, and Benefits to be Collected Week 8
B. Data from Comparators and Preliminary Analysis of Data Week 45 C. Draft Compensation Findings/Additional Analysis/Study Project Team Meetings Week 48
D. Analysis of Internal Relationships and Alignment Week 49 E. Compensation Structure and Implementation Plan Week 50 F. Final Report and Guidelines for Implementation Week 52 G. Formal Appeals Process * As Needed
H. Final Presentation As Scheduled
EXHIBIT B - Classification and Compensation Study
City of Santa Rosa #22-HR
28 35 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com 31 COST PROPOSAL
We have often found our process requires a very high level of time commitment, which sometimes results in a higher proposal cost. We believe that our methodology and implementation success rate is attributable to the significantly greater level of contact we have with employees, employee representation, management, and the governing body. The time we commit to working with the employees (orientations and briefings, meetings with employees via personal interviews, sharing of compensation survey data, informal appeal process, etc.) results in significantly greater buy-in throughout the process and no formal appeals at the end of the study.
In fact, our firm has only had a handful of formal appeals to any of our studies in our 38 years in business.
It has been our experience that the money and time invested in stakeholder communication throughout the study are money and time saved during implementation. Numerous times our firm has been hired after an agency has gone through an unsuccessful study whose results were reject ed or appealed and whose implementation was very controversial. The result was a divided organization with hostility and animosity between employees/employee representation and management. Whenever our firm was hired after such an unfortunate experience, study stakeholders were amazed at our open and all -inclusive process, our efforts to elicit equal stakeholder input, and our development of recommendations that were accepted as fair and reasonable and understood by management, employees, and the governin g body.
Our success rate is also attributable to the fact that we have 38 years of experience working with employees of all types of backgrounds, educational levels, and work experiences, and we are accustomed to successfully communicating with and educating them throughout the process. It is imperative that all employees eventually buy into the study results and recommendations, whether they have been through a process like this before or whether this is the first time for them.
Our clients always provide feedback that our process was professional, comprehensive, understandable, timely, and inclusive. Employees, although not necessarily always happy with our recommendations, have always indicated that we listened to their issues and concerns, were available for discussion, and able to provide documentation and data to support our recommendations. Although time consuming, we also drive the process to ensure that timelines are met and schedules are maintained.
Over the last few years, K&A and all of our client s have become accustomed to conducting all of our organizational, classification, and compensation studies virtually. From the experience of the last two years, we have learned that studies can be conducted successfully by using virtual technologies and performing the work remotely. We have also learned that this represents a significant cost savings for our clients, both in terms of consultant travel time and travel expenses, as well as less disruption and reduced non-productivity for the client’s workforc e. We have several technological solutions that can easily facilitate the entire process (see proposal narrative above). Conducting meetings and orientations virtually means that the client’s employees do not have to spend time traveling from one location to another and will not be pulled away from their workstations for lengthy periods of time. They can simply click on a link or call in from a phone to participate. This approach also represents significantly less logistical planning on part of the client in order to reserve meeting rooms and making space available for large employee groups, as well as multiple consultants coming onsite to conduct interviews within a condensed period of time. Conducting orientations and interviews virtually provides us with much more Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
28 35 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com 32 flexibility in scheduling and accommodating multiple different shifts and schedules among a large workforce.
In addition, K&A strives to be as “green” an organization as possible and we are certainly concerned about our carbon footprint. We find that multiple trips to client sites that can sometimes involve multiple consultants flying on planes and/or driving cars, is not as environmentally conscious as we would like to be. Considering the effectiveness of virtual meetings, especially when meetings are only one hour or one- and-a-half hours at a time, onsite travel does appear to create a larger footprint than necessary. This can especially be true for final presentations to leadership teams that are often less than 60 minutes long.
The cost proposal below includes two options depending on scope of work to provide the City with a cost comparison based on the number of classifications, number of employees, and number of comparator agencies surveyed for the compensation study. Of course, the City may select any combination thereof and we are open to negotiating another option if it better serves the City. We hope to be able to negotiate a scope of work and cost option that best serves the City’s needs.
For purposes of this cost proposal, we are assuming that all meetings and presentations will be conducted virtually/remotely and no onsite travel to City offices will occur. We understand that the City may desire some onsite meetings and presentations. Our per diem fee for onsite visits is $2,100 per consultant per visit plus travel expenses (flights, hotels, rental cars, parking, meals, mileage, etc., all charged straight through to the client without any mark-ups), which is NOT included in the project budget below.
Deliver-
ables
Phase I: Classification Study
260 Classifications, 894 Employees
Option 1:
Hours
Option 2:
Hours
A. Meetings with Study Project Team and Management Staff and Initial Documentation Review 24 24
B. Orientation Meetings with Employees and Distribution of PDQ 30 30 C.
Collection and Review of PDQs
Option 1: Assumes 1 individual or group PDQ for each of the 260 classifications plus 20% of approximately 894 employees submitting individual PDQs (for a total of approximately 440 PDQs) Option 2: Assumes 1 individual or group PDQ for each of the 260 classifications plus 30% of approximately 894 employees submitting individual PDQs (for a total of approximately 530 PDQs) 150 180
D.
Interviews with Employees, Supervisors, and Management
Option 1: Assumes 1 individual or group interview per each of the 260 classifications plus 20% of approximately 894 employees requesting individual interviews (for a total of approximately 440 interviews) Option 2: Assumes 1 individual or group interview per each of the 260 classifications plus 30% of approximately 894 employees requesting individual interviews (for a total of approximately 530 interviews) 290 350
E. Classification Concept & Preliminary Allocation 180 200 F.
Draft Class Description Development
Option 1: Assumes that a number of the 260 current classes can be consolidated or are no longer active (estimate up to 240 class descriptions will be developed)
Option 3: Assumes that up to 260 class descriptions will be developed 600 650
Classification and Compensation Study Proposal
City of Santa Rosa #22-HR
28 35 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com 33 G. Facilitation of Draft Class Description Review and Employee Feedback Process 120 130
H. Classification Plan and Draft of Interim Report and Final Report 20 24 Total Professional Hours – Classification 1414 1588
Combined professional and clerical composite rate: $175/Hour $247,450 $277,900 Deliver
ables
PHASE II:
Total Compensation Study
Option 1:
Hours
Option 2:
Hours
A. List of Comparator Agencies, Benchmark Classifications, and Benefits to be Collected 20 20
B.
Data from Comparators and Preliminary Analysis of Data
Option 1: up to 144 benchmarks (assuming up to 240 classifications will be developed in Phase I, approx. 60% of those classes); 10 comparators; and total compensation (salaries plus benefits) Option 2: up to 156 benchmarks (assuming up to 260 classifications will be developed in Phase I, approx. 60% of those classes); 12 comparators; and total compensation (salaries plus benefits) 470 605
C. Draft Compensation Findings/Additional Analysis/Study Project Team Meetings 80 100
D. Analysis of Internal Relationships and Alignment 16 16 E. Compensation Structure and Implementation Plan 24 24 F. Final Report and Guidelines for Implementation 20 24 G. Formal Appeals Process * 0 0
H. Final Presentation 12 12
Anticipated hours for additional unscheduled meetings and phone calls 20 24 Total Professional Hours – Compensation 662 825
Combined professional and clerical composite rate: $175/Hour $115,850 $144,375 Expenses are included in the composite hourly rate: N/A N/A Expenses include but are not limited to duplicating documents, binding reports, phone, supplies, postage, etc.
TOTAL PROJECT COST NOT TO EXCEED: $363,300 $422,275
*Additional consulting will be honored at composite rate ($175/hr)
Our cost proposal does not include time to support the City during any labor negotiations that may follow this study. If we are needed for this work, our composite hourly rate will apply and we will charge on a time-and-materials basis.