Loading...
RPVCCA_CC_SR_2014_07_29_D_Award_Professional_Services_Agreement_Koff_&_AssocCrTYOF MEMORANDUM TO: FROM: DATE: SUBJECT: REVIEWED: HONORABLE MAYOR & CITY COUNCIL MEMBERS t:J!j SEAN M. ROBINSON, HUMAN RESOURCES MANAGER(_? JULY 29, 2014 CLASSIFICATION & COMPENSATION STUDY- PROFESSIONAL SERVICES AGREEMENT -KOFF AND ASSOCIATES CAROLYNN PETRU, ACTING CITY MANAGER<?f) RECOMMENDATION Authorize the Mayor and City Clerk to execute the professional services agreement with Koff & Associates to conduct the citywide classification and compensation study for an amount not to exceed $44,688. BACKGROUND The City of Rancho Palos Verdes last conducted a salary survey in 2010. This process was informal insofar as it was accomplished internally only, and with a limited sampling of other agencies. On July 2, 2002, City Council adopted a resolution defining the City's compensation level for competitive and management personnel as being set at 75% of the levels identified from the other agencies questioned. At its meeting on May 14, 2014, the City Council approved a Request for Proposals (RFP) process for a classification and compensation study for all full-time personnel, and apportioned funding for the study. Staff released the Request for Proposals (RFP) on Thursday, May 29, 2014, with responses due to the City by the end of business on Monday, June 30, 2014. Staff issued the RFP to the following organizations: Becker & Bell; CPS-HR; Fox Lawson & Associates; the Hay Group; Koff & Associates; Public Sector Personnel Consultants (PSPC); and Reward Strategy Group. On July 7, 2014, the Employee Compensation Sub-committee (comprised of Mayor Duhovic and Councilwoman Brooks) met and reviewed the four proposals received from the industry professionals solicited as part of the RFP process. These included: CPS-HR; D-1 Classification & Compensation Study -Professional Services Agreement July 29, 2014 Page 2 of 2 Fox Lawson & Associates; the Hay Group; and Koff & Associates. On July 22, 2014, the City Council interviewed CPS-HR and Koff & Associates. At that same meeting the City Council selected Koff & Associates to conduct the citywide classification and compensation study. DISCUSSION The attached contract has been reviewed and modified by the City Attorney to include the City's standard Professional Services Agreement provisions. Consistent with Koff & Associates' proposal submitted on June 30, 2014, the fixed cost of the contract is an amount not to exceed forty-four thousand, six hundred, eighty eight dollars ($44,688) which represents the City Council's selection of Option 1 for the Classification component of the study in· the amount of twenty-six thousand, three hundred, fifty-two dollars ($26,352), Option 2 for the Compensation component of the study in the amount of fifteen thousand, five hundred, thirty-six dollars ($15,336), and expenses in the not to exceed amount of three thousand dollars ($3,000) for its services. Staff recommends City Council approved · the attached Professional Services Agreement, and authorize the Mayor to execute the appropriate agreement documents. The next step in the classification and compensation study will be the orientation process in which Koff & Associates will discuss the process and answer any questions that may arise with all employees. This meeting is scheduled for Thursday, August 7, 2014. FISCAL IMPACT There is no fiscal impact, as this was incorporated in the City's Personnel budget, specifically in the Professional/Technical Service, for Fiscal Year 14-15. Attachment: • Professional Services Agreement with Koff & Associates D-2 CITY OF RANCHO PALOS VERDES PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT ("Agreement") is made and entered into this 29th day of July, 2014, by and between the City of Rancho Palos Verdes (hereinafter referred to as the "CITY") and Koff and Associates (hereafter referred to as "CONSULTANT"). IN CONSIDERATION of the covenants hereinafter set forth, the parties hereto agree as follows: ARTICLE 1 SCOPE OF SERVICES 1.1 Project Description The Project is described as follows: The City Council is seeking to retain a firm to work with the City Council and Staff to conduct a Classification and Compensation Study (STUDY) for the CITY. ·upon the Council's selection of the firm qualified to undertake the STUDY, CONSUL TANT then will undertake the usual actions necessary to conduct the STUDY based upon its submitted proposal. 1.2 Description of Services CONSUL TANT shall perform any and all necessary work in order to provide the CITY with a comprehensive Classification and Compensation Study, as described in the CITY's Statement of Qualifications and Proposal, which is attached hereto as Exhibit "A" and incorporated herein by this reference, and in CONSULTANT's Proposal, which is attached hereto as Exhibit "B" and incorporated herein by this reference. In the event of any conflict between the terms of this Agreement and incorporated documents, the terms of this Agreement shall control. 1.3 Schedule of Work Upon receipt of a written Notice to Proceed from the CITY, CONSULTANT shall perform with due diligence the services requested by the CITY. Time is of the essence in this Agreement. CONSULTANT shall not be responsible for delay, nor shall CONSUL TANT be responsible for damages or be in default or deemed to be in default by reason of strikes, lockouts, accidents, or acts of God, or the failure of CITY to furnish timely information or to approve or disapprove CONSULTANT's work promptly, or delay by CITY, or any other delays beyond CONSUL TANT's control or without CONSUL TANT's fault. D-3 2.1 Fee ARTICLE 2 COMPENSATION CITY agrees to compensate CONSULTANT an amount not to exceed forty- four thousand, six hundred, eighty eight dollars (44,688) which represents the City Council's selection of Option 1 for the Classification component of the study in the amount of twenty-six thousand, three hundred, fifty-two dollars ($26,352), Option 2 for the Compensation component of the study in the amount of fifteen thousand, five hundred, thirty-six dollars ($15,336), and expenses in the not to exceed amount of three thousand dollars ($3,000) for its services, as described in Article 1. 2.2 Terms of Compensation CONSUL TANT shall submit monthly invoices for the percentage of work completed in the previous month. CITY agrees to authorize payment for all undisputed invoice amounts within thirty (30) days of receipt of each invoice. CITY agrees to use its best efforts to notify CONSULTANT of any disputed invoice amounts or claimed completion percentages within ten (10) days of the receipt of each invoice. However, CITY's failure to timely notify CONSULTANT of a disputed amount or claimed completion percentage shall not be deemed a waiver of CITY's right to challenge such amount or percentage. Additionally, in the event CITY fails to pay any undisputed amounts due CONSUL TANT within forty-five (45) days after invoices are received by CITY then CITY agrees that CONSULTANT shall have the right to consider said default a total breach of this Agreement and be terminated by CONSUL TANT without liability to CONSUL TANT upon ten (10) working days advance written notice. 2.3 Additional Services CITY may request additional specified work under this Agreement. All such work must be authorized in writing by the CITY's Acting City Manager prior to commencement. CONSULTANT shall perform such services, and CITY shall pay for such additional services in accordance with CONSUL TANT's Schedule of Hourly Rates, which is within Exhibit "B." The rates in Exhibit "B" shall be in effect through the end of this Agreement. 2.4 Term of Agreement This Agreement shall commence on July 30, 2014 and shall terminate when the Classification and Compensation Study deliverables are presented to the City Council, unless sooner terminated pursuant to Article 4 of this Agreement. ARTICLE 3 INDEMNIFICATION AND INSURANCE Page 2of10 D-4 3.1 Indemnification To the maximum extent permitted by law, CONSUL TANT shall defend, indemnify, and hold the CITY, its officials, officers, employees, agents and independent contractors serving in the role of CITY officials, and volunteers (collectively "lndemnitees") free and harmless from any and all claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries, in law or equity, to property or persons, including wrongful death (collectively "Claims"), in any manner arising out of or incident to any acts or omissions of CONSULTANT, its officials, officers, employees or agents in connection with the performance of this Agreement, including without limitation the payment of all consequential damages, attorneys' fees, and other related costs and expenses, except for such Claims arising out of the sole negligence or willful misconduct of the lndemnitees. With respect to any and all such Claims, CONSULTANT shall defend lndemnitees at CONSUL TANT's own cost, expense, and risk and shall pay and satisfy any judgment, award,. or decree that may be rendered against lndemnitees. CONSUL TANT shall reimburse lndemnitees for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. CONSULTANT's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by CONSUL TANT or lndemnitees. All duties of CONSUL TANT under this Section shall survive termination of this Agreement. 3.2 General Liability CONSUL TANT shall at all times during the term of the Agreement carry, maintain, and keep in full force and effect, a policy or policies of Commercial General ·Liability Insurance, with minimum limits of one million dollars ($1,000,000) for each occurrence and two million dollars ($2,000,000) general aggregate for bodily injury, death, loss or property damage for products or completed operations and any and all other activities undertaken by CONSUL TANT in the performance of this Agreement. Said policy or policies shall be issued by an insurer admitted or authorized to do business in the State of California and rated in AM. Best's Insurance Guide with a rating of A:Vll or better. 3.3 Automobile Liability CONSUL TANT shall at all times during the term of this Agreement obtain, maintain, and keep in full force and effect, a policy or policies of Automobile Liability Insurance, with minimum of one million dollars ($1,000,000) per claim and occurrence and two million dollars ($2,000,000) in the aggregate for bodily injuries or death of one person and five hundred thousand dollars ($500,000) for property damage arising from one incident. Said policy or policies shall be issued by an insurer admitted or authorized to do business in the State of California and rated in A.M. Best's Insurance Guide with a rating of A:Vll or better. 3.4 Worker's Compensation Page 3of10 D-5 CONSUL TANT agrees to maintain in force at all times during the performance of work under this Agreement worker's compensation insurance as required by the law. CONSULTANT shall require any subcontractor similarly to provide such compensation insurance for their respective employees. 3.5 Notice of Cancellation (a) All insurance policies shall provide that the insurance coverage shall not be cancelled or modified by the insurance carrier without thirty (30) days prior written notice to CITY, or ten (10) days notice if cancellation is due to nonpayment of premium. Additionally, CONSULTANT shall provide immediate notice to the CITY if CONSULTANT receives a cancellation or policy revision notice from the insurer. (b) CONSUL TANT agrees that it will not cancel or reduce any required insurance coverage. CONSUL TANT agrees that if it does not keep the aforesaid insuran·ce in full force and effect, CITY may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, CITY may take out the necessary insurance and pay, at CONSUL TANT's expense, the premium thereon. 3.6 Entire Policy and Certificate of Insurance At all times during the term of this Agreement, CONSUL TANT shall maintain on file with the CITY Clerk both a copy of the entire policy and a certificate of insurance showing that the aforesaid policies are in effect in the required amounts. The commercial general liability policy shall contain endorsements naming the CITY, its officers, agents and employees as additional insureds. 3. 7 Primary Coverage The insurance provided by CONSUL TANT shall be primary to any coverage available to CITY. The insurance policies (other than workers compensation and professional liability) shall include provisions for waiver of subrogation. ARTICLE4 TERMINATION 4.1 Termination of Agreement (a) This Agreement may be terminated at any time, with or without cause, by the CITY upon thirty (30) days prior written notice or by CONSUL TANT upon ninety {90) days prior written notice. Notice shall be deemed served if completed in compliance with Section 6.15. (b) In the event of termination or cancellation of this Agreement by CONSUL TANT or CITY, due to no fault or failure of performance by CONSUL TANT, CONSULTANT shall be paid compensation for all services performed by CONSULTANT, in an amount to be determined as follows: for work satisfactorily done in accordance with all of the terms and provisions of this Agreement as determined by the CITY, Page 4of10 D-6 CONSULTANT shall be paid an amount equal to the percentage of services performed prior to the effective date of termination or cancellation in accordance with the work items; provided, in no event shall the amount of money paid under the foregoing provisions of this paragraph exceed the amount which would have been paid to CONSUL TANT for the full performance of the services described in Section 2.1 of this Agreement. ARTICLE 5 OWNERSHIP OF DOCUMENTS 5.1 Ownership of Documents and Work Product All final documents, plans, specifications, reports, information, data, exhibits, photographs, images, video files and media created or developed by CONSUL TANT pursuant to this Agreement ("Written Products") shall be and remain the property of the CITY without restriction or limitation upon its use, duplication or dissemination by the CITY. All Written Products shall be considered "works made for hire," and all Written Products and any and all intellectual property rights arising from their creation, including, but not limited to, all copyrights and other proprietary rights, shall be and remain the property of the CITY without restriction or limitation upon their use, duplication or dissemination by the CITY. CONSULTANT shall not obtain or attempt to obtain copyright protection as to any Written Products. CONSULTANT hereby assigns to the CITY all ownership and any and all intellectual property rights to the Written Products that are not otherwise vested in the CITY pursuant to the paragraph directly above this one. CONSUL TANT warrants and represents that it has secured all necessary licenses, consents or approvals to use any instrumentality, thing or component as to which any intellectual property right exists, including computer software, used in the rendering of the services and the production of all Written Products produced under this Agreement, and that the CITY has full legal title to and the right to reproduce the Written Products. CONSUL TANT shall defend, indemnify and hold the CITY, and its elected officials, officers, employees, servants, attorneys, designated volunteers, and agents serving as independent contractors in the role of CITY officials, harmless from any loss, claim or liability in any way related to a claim that CITY's use of any of the Written Products is violating federal, state or local laws, or any contractual provisions, or any laws relating to trade names, licenses, franchises, copyrights, patents or other means of protecting intellectual property rights and/or interests in products or inventions. CONSUL TANT shall bear all costs arising from the use of patented, copyrighted, trade secret or trademarked documents, materials, equipment, devices or processes in connection with its provision of the services and Written Products produced under this Agreement. In the event the use of any of the Written Products or other deliverables hereunder by the CITY is held to constitute an infringement and the use of any of the same is enjoined, CONSULTANT, at its expense, shall: (a) secure for CITY the right to continue using the Written Products and other deliverables by suspension of any injunction, or by procuring a license or licenses for CITY; or (b) modify the Written Products and other deliverables so that they Page 5of10 D-7 become non-infringing while remaining in compliance with the requirements of this Agreement. This covenant shall survive the termination of this Agreement. Upon termination, abandonment or suspension of the Project, the CONSUL TANT shall deliver to the CITY all Written Products and other deliverables related to the Project without additional cost or expense to the CITY. If CONSUL TANT prepares a document on a computer, CONSULTANT shall provide CITY with said document both in a printed format and in an electronic format that is acceptable to the CITY. 6.1 Representation ARTICLE 6 GENERAL PROVISIONS The CITY representative shall b~ the Acting City Manager or his or her designee, and Georg Krammer shall be CONSUL TANT's designated representative. These individuals shall be the primary contact persons for the parties regarding performance of this Agreement. 6.2 Fair Employment Practices/Equal Opportunity Acts In the performance of this Agreement, CONSUL TANT shall comply with all applicable provisions of the California Fair Employment Practices Act (California Government Code Sections 12940-48), the applicable equal employment provisions of the Civil Rights Act of 1964 (42 U.S.C. 200e-217), and the Americans with Disabilities Act of 1990 (42 U.S.C. § 11200, et seq.). 6.3 Audit The CITY or its representative shall have the option of inspecting, auditing, or inspecting and auditing all records and other written materials used by CONSULTANT in preparing its billings to the CITY as a condition precedent to any payment to CONSUL TANT. CONSUL TANT will promptly furnish documents requested by the CITY. 6.4 Personnel CONSUL TANT represents that it has, or shall secure at its own expense, all personnel required to perform CONSUL TANT's services under this Agreement. Georg Krammer shall be the principal person who will perform CONSULTANT'S services under this Agreement. If Georg Krammer is unable to perform said services, CONSULTANT shall advise CITY immediately and shall obtain CITY'S approval before replacing Georg Krammer with any other individual. CONSULTANT may associate with or employ associates or subcontractors in the performance of its services under this Agreement, but at all times shall CONSUL TANT be responsible for its associates and subcontractors' services. 6.5 CONSUL TANT's Representations Page 6of10 D-8 CONSULTANT represents, covenants and agrees that: a) CONSULTANT is licensed, qualified, and capable of furnishing the labor, materials, and expertise necessary to perform the services in accordance with the terms and conditions set forth in this Agreement; b) there are no obligations, commitments, or impediments of any kind that will limit or prevent CONSULTANT's full performance under this Agreement; and c) to the extent required by the standard of practice, CONSUL TANT has investigated and considered the scope of services performed, has carefully considered how the services should be performed, and understands the facilities, difficulties and restrictions attending performance of the services under this Agreement. 6.6 Conflicts of Interest CONSULTANT agrees not to accept any employment or representation during the term of this Agreement or within twelve (12) months after completion of the work urider this Agreement which is or may likely make CONSULTANT "financially interested" (as provided in California Government Code Sections 1090 and 87100) in any decisions made by CITY on any matter in connection with which CONSUL TANT has been retained pursuant to this Agreement. 6.7 Legal Action (a) Should either party to this Agreement bring legal action against the other; the validity, interpretation, and performance of this Agreement shall be controlled by and construed under the laws of the State of California, excluding California's choice of law rules. Venue for any such action relating to this Agreement shall be in the Los Angeles County Superior Court. (b) If any legal action or other proceeding, including action for declaratory relief, is brought for the enforcement of this Agreement or because of an alleged dispute, breach, default or misrepresentation in connection with this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees, experts' fees, and other costs, in addition to any other relief to which the party may be entitled. (c) Should any legal action between CITY and a party other than CONSUL TANT require the testimony of CONSUL TANT when there is no allegation that CONSULTANT was negligent, CITY shall compensate CONSULTANT for its testimony and preparation to testify at the hourly rates in effect at the time of such testimony. 6.8 Assignment Neither this Agreement nor any part thereof shall be assigned by CONSUL TANT without the prior written consent of the CITY. Any such purported assignment without written consent shall be null and void, and CONSULTANT shall hold harmless, defend and indemnify the CITY and its officers, officials, employees, agents and representatives with respect to any claim, demand or action arising from any unauthorized assignment. Page 7of10 D-9 Notwithstanding the above, CONSULTANT may use the services of persons and entities not in CONSULTANT'S direct employ, when it is appropriate and customary to do so. 6.9 Independent Contractor CONSULTANT is and shall at all times remain, as to the CITY, a wholly independent contractor. Neither the CITY nor any of its agents shall have control over the conduct of CONSULTANT or any of the CONSULTANT's employees, except as herein set forth, and CONSULTANT is free to dispose of all portions of its time and activities which it is not obligated to devote to the CITY in such a manner and to such persons, firms, or corporations as the CONSULTANT wishes except as expressly provided in this Agreement. CONSUL TANT shall have no power to incur any debt, obligation, or liability on behalf of the CITY or otherwise act on behalf of the CITY as an agent. 90NSUL TANT shall not, at any time or in any manner, represent that it or any of its agents, servants or employees, are in any manner agents, servants or employees of CITY. CONSUL TANT agrees to pay all required taxes on amounts paid to CONSUL TANT under this Agreement, and to indemnify and hold the CITY harmless from any and all _taxes, assessments, penalties, and interest asserted against the CITY by reason of the independent contractor relationship created by this Agreement. CONSUL TANT shall fully comply with the workers' compensation law regarding CONSUL TANT and its employees. CONSUL TANT further agrees to indemnify and hold the CITY harmless from any failure of CONSUL TANT to comply with applicable workers' compensation laws. The CITY shall have the right to offset against the amount of any fees due to CONSULTANT under this Agreement any amount due to the CITY from CONSUL TANT as a result of its failure to promptly pay to the CITY any reimbursement or indemnification arising under this Article. 6.10 Titles The titles used in this Agreement are for general reference only and are not part of the Agreement. 6.11 Entire Agreement This Agreement, including any other documents incorporated herein by specific reference, represents the entire and integrated agreement between CITY and CONSULTANT and supersedes all prior negotiations, representations or agreements, either written or oral. This Agreement may be modified or amended, or provisions or breach may be waived, only by subsequent written agreement signed by both parties. 6.12 Construction In the event of any asserted ambiguity in, or dispute regarding the interpretation of any matter herein, the interpretation of this Agreement shall not be resolved by any rules of interpretation providing for interpretation against the party who causes the uncertainty to exist or against the party who drafted the Agreement or who drafted that portion of the Agreement. Page 8of10 D-10 6.13 Non-Waiver of Terms. Rights and Remedies Waiver by either party of any one or more of the conditions of performance under this Agreement shall not be a waiver of any other condition of performance under this Agreement. In no event shall the making by the CITY of any payment to CONSULTANT constitute or be construed as a waiver by the CITY of any breach of covenant, or any default which may then exist on the part of CONSULTANT, and the making of any such payment by the CITY shall in no way impair or prejudice any right or remedy available to the CITY with regard to such breach or default. 6.14 Severability If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Ag~eement shall continue in full force and effect. 6.15 Notice Except as otherwise required by law, any notice, payment or other -communication authorized or required by this Agreement shall be in writing and shall be deemed received on (a) the day of delivery if delivered by hand or overnight courier service during CITY's regular business hours or (b) on the third business day following deposit in the United States mail, postage prepaid, to the addresses listed below, or at such other address as one party may notify the other: To CITY: Responsible Person: Carolynn Petru, Acting City Manager City of Rancho Palos Verdes 30940 Hawthorne Blvd. Rancho Palos Verdes, CA 90275 To CONSUL TANT: Responsible Person: Georg Krammer, CEO Koff & Associates 6400 Hollis Street, Suite 5 Emeryville, CA. 94608 [Signatures on next page.] Page 9of10 D-11 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first above written. Dated: ---------- Dated: ----------- ·ATTEST By: _________ ~ ("CONSULTANT") By: ___________ _ Printed Name: --------- Title: ------------ By: ___________ _ Printed Name: --------- Title: ------------ CITY OF RANCHO PALOS VERDES ("CITY") By: ___________ _ Mayor APPROVED AS TO FORM By: __________ ~- Page 10of10 D-12