Loading...
CC SR 20210907 M - Class and Comp CITY COUNCIL MEETING DATE: 09/07/2021 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consideration and possible action to enter into a contract services agreement with Public Sector Personnel Consultants to conduct a comprehensive classification and compensation study and organizational review for all full-time and part-time personnel. RECOMMENDED COUNCIL ACTION: (1) Award a contract services agreement to Public Sector Personnel Consultants in an amount not to exceed $45,000 to conduct a comprehensive classification and compensation study and organizational review for all full-time and part-time personnel; (2) Authorize the Mayor and City Clerk to execute the contract services agreement subject to approval as to form by the City Attorney; and (3) Approve decreasing the FY 2020-21 year-end budget in the General Fund by $45,000 and increase the FY 2021-22 General Fund budget by $45,000. FISCAL IMPACT: The action will result in a City expenditure of $45,000 by reducing the FY 2020-21 budget resulting from salary savings and increasing the FY 2021 -22 budget by $45,000. Amount Budgeted: None Additional Appropriation: $45,000 Account Number(s): 101-400-1450-5101 ORIGINATED BY: Julie DeZiel, Human Resources Manager REVIEWED BY: Karina Bañales, Deputy City Manager APPROVED BY: Ara Mihranian, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Contract Services Agreement with Public Sector Personnel Consultants (page A- 1) B. Public Sector Personnel Consultants Proposal (page B-1) C. May 18, 2021, Staff Report (page C-1) D. Request for Proposals for a Classification and Compensation Study (page D-1) E. June 15, 2021 RPVEA Memorandum of Understanding (pag e E-1) 1 BACKGROUND AND DISCUSSION: On March 3, 2015, the City Council authorized Koff & Associates to conduct the classification and compensation study, which concluded that the City’s compensation levels were aligned with the City’s compensation structure, with only a few classification s requiring adjustments. In response to a shifting community and organizational needs, on May 18, 2021, the City Council directed Staff to issue a request for proposals (RFP) to conduct a classification and compensation study and an organizational review for all full -time and part-time personnel and apportioned funding for the study (Attachment C). Such a review has not occurred since 2015. Staff released the RFP on May 21, 2021 (Attachment D), with responses due to the City by June 21, 2021. Three proposals were received from Creative Solutions; Public Sector Personnel Consultants, and Koff & Associates. The selection process was based on a review of all proposals submitted, and all three were invited to make a virtual presentation to the evaluation panel. On August 5, 2021, the City’s evaluation panel (comprised of the Director of Finance, Human Resources Manager, Human Resources Analyst, and Rancho Palos Verdes Employee Association Board Member - Treasurer) attended the virtual presentations of Creative Management Solutions, Public Sector Personnel Consultants, and Koff & Associates. At the conclusion of each presentation, each presenter was asked the same series of questions to ascertain which consultant best fulfills the City’s requirements. On August 10, 2021, the evaluation panel completed the ratings and evaluation based on the following criteria: • Approach to Scope of Services (25%) • Proposal Schedule (20%) • Staff Qualifications and Experience (30%) • Organization and Staffing (15%) • Quality Control (10%) 2 Upon completing the evaluation and selection process, the evaluation panel unanimously selected Public Sector Personnel Consultants’ proposal. Public Sector Personnel Consultants stood out from the other consultants due, in part, to its custom database, which includes a collection of total compensation and benefits data for comparison to current practices. The custom database will be provided to the City at the conclusion of the study, enabling City Staff to run multiple reports for comparative analysis. As part of their service, Public Sector Personnel Consultants will analyze, evaluate, and provide a salary range recommendation for any new or changed job class, at no cost to the City for one year from the date of implementation of the study. This will ensure an effective implementation of the new plan. The approximate value of this implementation warranty is $5,000 - $10,000. Public Sector Personnel Consultants was the only consultant to offer this service. Although Koff & Associates conducted the last classification and compensation study, it received the lowest rating from the evaluation panel. This was primarily because of the total cost ($111,200), the proposed timeline exceeded the City’s estimated timeline by several months, and it required a triple amount of staff time compared to the other two proposals. Approach to Scope of Services 25%8 2 9 2.25 5 1.3 Proposal Schedule 20%7.3 1.5 8.3 1.667 4.7 0.9 Staff Qualifications & Experience 30%8 2.4 9.3 2.8 6.3 1.9 Organization & Staffing 15%7.7 1.2 9.7 1.45 5.3 0.8 Quality Control 10%7.3 0.7 9.3 0.933 5 0.5 Totals 100%7.75 9.10 5.38 Final Score Raw Score (0-10) Final Score Raw Score (0-10) Final Score Classification and Compensation/Organizational Review Creative Solutions Personnel Consultants Koff & Associates Criteria Value Raw Score (0-10) 3 The evaluation rating for Creative Management Solutions was close to the overall rating of Public Sector Personnel Consultants, due to their timeline and total cost ($30,000); however, Public Sector Personnel Consultants rated higher overall as they were the most competitive by providing a custom database of the City’s compensation and benefits, and a one-year of implementation warranty at no additional cost to the City. Based on the above, attached is the contract services agreement (CSA) which has been reviewed and approved by the City Attorney to include the City’s standard CSA provisions (Attachment A). Consistent with Public Sector Personnel Consultants’ proposal submitted on June 18, 2021, the fixed cost of the contract is not to exceed $45,000. Public Sector Personnel Consultants will conduct a comprehensive classification and compensation study addressing the following: • Comparable cities agreed upon by the City Council; • Level and scope of work performed by employees; • Compensation that is fair and competitive, allowing the City to recruit and retain high-quality employees; • Review of class descriptions to reflect current programs, responsibilities, and technology to ensure that internal relationships of salaries are base d upon objective, non-quantitative evaluation factors, resulting in equity across all City departments; • Analysis and comparison of performance pay merit systems; • Identifying job classifications eligible for telework; • Review of the current classification structure to determine efficacy and; • A comprehensive compensation review that includes fully burdened costs of salary and bonuses; benefit costs including health insurance, life insurance, retirement, leave banks, and other miscellaneous employer paid benefits. The periodic review also enables an organization to account for changes in job responsibilities and qualifications due to technology, modifications in work processes, and other factors that can affect the “core content” of positions. Changes in job requirements, such as new programs or assumption of duties for a vacated position, may result in a new pay grade assignment. A classification and compensation study also provides an objective framework for determining how employees will be paid. To prope rly maintain internal equity among positions, this ongoing process is needed to review job responsibilities and qualifications and the subsequent assignment to pay grades to ensure jobs are equitably compensated. In addition to the comprehensive classification and compensation study, the consultant will review the organizational structure based on efficiency and effectiveness. This will be achieved by reviewing the City’s current vertical and horizontal organizational structure. 4 The consultant estimates the project can be completed in 120 days (classification specifications may require an additional 90 – 120 days to complete). The proposed timeline is acceptable, as the City anticipated the study would take five to six months to complete. On June 15, 2021, the City Council approved a six month extension to the RPV Employee Association Memorandum of Understanding (MOU) expiring on December 31, 2021 (Attachment E). In light of the consultants timeline, it is likely that the City Council will be asked to extend the term of the MOU to allow the completion of the classification and compensation study. CONCLUSION: Staff therefore recommends the City Council authorize the Mayor and City Clerk to execute the CSA with Public Sector Personnel Consultants to conduct a comprehensive classification and compensation study and organizational review for all full-time and part- time personnel. ALTERNATIVES: In addition to the Staff recommendation, the following alternative actions are available for the City Council’s consideration: 1. Do not enter into the CSA with Public Sector Personnel Consultants. 2. Direct Staff to revisit the proposals submitted by the other firms. 3. Take other action, as deemed appropriate. 5 01203.0004/736917.1 1 CONTRACT SERVICES AGREEMENT By and Between CITY OF RANCHO PALOS VERDES and PUBLIC SECTOR PERSONNEL CONSULTANTS, INC. A-1 01203.0004/736917.1 AGREEMENT FOR CONTRACT SERVICES BETWEEN THE CITY OF RANCHO PALOS VERDES AND PUBLIC SECTOR PERSONNEL CONSULTANTS, INC. THIS AGREEMENT FOR CONTRACT SERVICES (herein “Agreement”) is made and entered into on September 7, 2021, by and between the CITY OF RANCHO PALOS VERDES, a California municipal corporation (“City”) and PUBLIC SECTOR PERSONNEL CONSULTANTS, INC., an Arizona corporation (“Consultant”). City and Consultant may be referred to, individually or collectively, as “Party” or “Parties.” RECITALS A. City has sought, by issuance of a Request for Proposals, the performance of the services defined and described particularly in Article 1 of this Agreement. B. Consultant, following submission of a proposal for the performance of the services defined and described particularly in Article 1 of this Agreement, was selected by the City to perform those services. C. Pursuant to the City of Rancho Palos Verdes Municipal Code, City has authority to enter into and execute this Agreement. D. The Parties desire to formalize the selection of Consultant for performance of those services defined and described particularly in Article 1 of this Agreement and desire that the terms of that performance be as particularly defined and described herein. OPERATIVE PROVISIONS NOW, THEREFORE, in consideration of the mutual promises and covenants made by the Parties and contained herein and other consideration, the value and adequacy of which are hereby acknowledged, the parties agree as follows: ARTICLE 1. SERVICES OF CONSULTANT 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, the Consultant shall provide those services specified in the “Scope of Services”, as stated in the Proposal, attached hereto as Exhibit “A” and incorporated herein by this reference, which may be referred to herein as the “services” or “work” hereunder. As a material inducement to the City entering into this Agreement, Consultant represents and warrants that it has the qualifications, experience, and facilities necessary to properly perform the services required under this Agreement in a thorough, competent, and professional manner, and is experienced in performing the work and services contemplated herein. Consultant shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all services described herein. Consultant covenants that it shall follow the highest professional standards in performing the work and services required hereunder and that all materials will be both of good quality as well as fit for the purpose A-2 01203.0004/736917.1 2 intended. For purposes of this Agreement, the phrase “highest professional standards” shall mean those standards of practice recognized by one or more first-class firms performing similar work under similar circumstances. 1.2 Consultant’s Proposal. The Scope of Service shall include the Consultant’s Proposal which shall be incorporated herein by this reference as though fully set forth herein. In the event of any inconsistency between the terms of such Proposal and this Agreement, the terms of this Agreement shall govern. 1.3 Compliance with Law. Consultant shall keep itself informed concerning, and shall render all services hereunder in accordance with, all ordinances, resolutions, statutes, rules, and regulations of the City and any Federal, State or local governmental entity having jurisdiction in effect at the time service is rendered. 1.4 California Labor Law. If the Scope of Services includes any “public work” or “maintenance work,” as those terms are defined in California Labor Code section 1720 et seq. and California Code of Regulations, Title 8, Section 16000 et seq., and if the total compensation is $1,000 or more, Consultant shall pay prevailing wages for such work and comply with the requirements in California Labor Code section 1770 et seq. and 1810 et seq., and all other applicable laws, including the following requirements: (a) Public Work. The Parties acknowledge that some or all of the work to be performed under this Agreement is a “public work” as defined in Labor Code Section 1720 and that this Agreement is therefore subject to the requirements of Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code relating to public works contracts and the rules and regulations established by the Department of Industrial Relations (“DIR”) implementing such statutes. The work performed under this Agreement is subject to compliance monitoring and enforcement by the DIR. Consultant shall post job site notices, as prescribed by regulation. (b) Prevailing Wages. Consultant shall pay prevailing wages to the extent required by Labor Code Section 1771. Pursuant to Labor Code Section 1773.2, copies of the prevailing rate of per diem wages are on file at City Hall and will be made available to any interested party on request. By initiating any work under this Agreement, Consultant acknowledges receipt of a copy of the Department of Industrial Relations (DIR) det ermination of the prevailing rate of per diem wages, and Consultant shall post a copy of the same at each job site where work is performed under this Agreement. (c) Penalty for Failure to Pay Prevailing Wages. Consultant shall comply with and be bound by the provisions of Labor Code Sections 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. The A-3 01203.0004/736917.1 3 Consultant shall, as a penalty to the City, forfeit $200 (two hundred dollars) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the DIR for the work or craft in which the worker is employed for any public work done pursuant to this Agreement by Consultant or by any subcontractor. (d) Payroll Records. Consultant shall comply with and be bound by the provisions of Labor Code Section 1776, which requires Consultant and each subconsultant to: keep accurate payroll records and verify such records in writing under penalty of perjury, as specified in Section 1776; certify and make such payroll records available for inspection as provided by Section 1776; and inform the City of the location of the records. (e) Apprentices. Consultant shall comply with and be bound by the provisions of Labor Code Sections 1777.5, 1777.6, and 1777.7 and California Code of Regulations Title 8, Section 200 et seq. concerning the employment of apprentices on public works projects. Consultant shall be responsible for compliance with these aforementioned Sections for all apprenticeable occupations. Prior to commencing work under this Agreement, Consultant shall provide City with a copy of the information submitted to any applicable apprenticeship program. Within 60 (sixty) days after concluding work pursuant to this Agreement, Consultant and each of its subconsultants shall submit to the City a verified statement of the journeyman and apprentice hours performed under this Agreement. (f) Eight-Hour Work Day. Consultant acknowledges that 8 (eight) hours labor constitutes a legal day's work. Consultant shall comply with and be bound by Labor Code Section 1810. (g) Penalties for Excess Hours. Consultant shall comply with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours. The Consultant shall, as a penalty to the City, forfeit $25 (twenty five dollars) for each worker employed in the performance of this Agreement by the Consultant or by any subcontractor for each calendar day during which such worker is required or permitted to work more than 8 (eight) hours in any one calendar day and 40 (forty) hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the Labor Code. Pursuant to Labor Code section 1815, work performed by employees of Consultant in excess of 8 (eight) hours per day, and 40 (forty) hours during any one week shall be permitted upon public work upon compensation for all hours worked in excess of 8 hours per day at not less than 1½ (one and one half) times the basic rate of pay. (h) Workers’ Compensation. California Labor Code Sections 1860 and 3700 provide that every employer will be required to secure the payment of compensation to its employees if it has employees. In accordance with the provisions of California Labor Code Section 1861, Consultant certifies as follows: “I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.” A-4 A-5 01203.0004/736917.1 5 1.8 Further Responsibilities of Parties. Both parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both parties agree to act in good faith to execute all instruments, prepare all documents and take all actions as may be reasonably necessary to carry out the purposes of this Agreement. Unless hereafter specified, neither party shall be responsible for the service of the other. 1.9 Additional Services. City shall have the right at any time during the performance of the services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make changes by altering, adding to or deducting from said work. No such extra work may be undertaken unless a written Change Order is first given by the Contract Officer to the Consultant, incorporating therein any adjustment in (i) the Contract Sum for the actual costs of the extra work, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of the Consultant. Any increase in compensation of up to 15% of the Contract Sum; or, in the time to perform of up to 90 (ninety) days, may be approved by the Contract Officer through a written Change Order. Any greater increases, taken either separately or cumulatively, must be approved by the City Council. It is expressly understood by Consultant that the provisions of this Section shall not apply to services specifically set forth in the Scope of Services. Consultant hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Services may be more costly or time consuming than Consultant anticipates and that Consultant shall not be entitled to additional compensation therefor. City may in its sole and absolute discretion have similar work done by other Consultants. No claims for an increase in the Contract Sum or time for performance shall be valid unless the procedures established in this Section are followed. If in the performance of the contract scope, the Consultant becomes aware of material defects in the scope, duration or span of the contract or the Consultant becomes aware of extenuating circumstance that will or could prevent the completion of the contract, on time or on budget, the Consultant shall inform the Contracting Officer of an anticipated Change Order. This proposed change order will stipulate, the facts surrounding the issue, proposed solutions, proposed costs and proposed schedule impacts. 1.10 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in the “Special Requirements” attached hereto as Exhibit “B” and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit “B” and any other provisions of this Agreement, the provisions of Exhibit “B” shall govern. A-6 01203.0004/736917.1 6 ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT. 2.1 Contract Sum. Subject to any limitations set forth in this Agreement, City agrees to pay Consultant the amounts specified in the “Schedule of Compensation” attached hereto as Exhibit “C” and incorporated herein by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed $45,000 (Forty-Five Thousand Dollars) (the “Contract Sum”), unless additional compensation is approved pursuant to Section 1.9. 2.2 Method of Compensation. The method of compensation may include: (i) a lump sum payment upon completion; (ii) payment in accordance with specified tasks or the percentage of completion of the services; (iii) payment for time and materials based upon the Consultant’s rates as specified in the Schedule of Compensation, provided that (a) time estimates are provided for the performance of sub tasks, and (b) the Contract Sum is not exceeded; or (iv) such other methods as may be specified in the Schedule of Compensation. 2.3 Reimbursable Expenses. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, telephone expenses, and travel expenses approved by the Contract Officer in advance, or actual subcontractor expenses of an approved subcontractor pursuant to Section 4.5, and only if specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Consultant at all project meetings reasonably deemed necessary by the City. Coordination of the performance of the work with City is a critical component of the services. If Consultant is required to attend additional meetings to facilitate such coordination, Consultant shall not be entitled to any additional compensation for attending said meetings. 2.4 Invoices. Each month Consultant shall furnish to City an original invoice, using the City template, or in a format acceptable to the City, for all work performed and expenses incurred during the preceding month in a form approved by City’s Director of Finance. By submitting an invoice for payment under this Agreement, Consultant is certifying compliance with all provisions of the Agreement. The invoice shall detail charges for all necessary and actual expenses by the following categories: labor (by sub-category), travel, materials, equipment, supplies, and sub- contractor contracts. Sub-contractor charges shall also be detailed by such categories. Consultant shall not invoice City for any duplicate services performed by more than one person. City shall independently review each invoice submitted by the Consultant to determine whether the work performed and expenses incurred are in compliance with the provisions of this Agreement. Except as to any charges for work performed or expenses incurred by Consultant which are disputed by City, or as provided in Section 7.3, City will use its best efforts to cause Consultant to be paid within 45 (forty-five) days of receipt of Consultant’s correct and undisputed invoice; however, Consultant acknowledges and agrees that due to City warrant run A-7 01203.0004/736917.1 7 procedures, the City cannot guarantee that payment will occur within this time period. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Consultant for correction and resubmission. Review and payment by City for any invoice provided by the Consultant shall not constitute a waiver of any rights or remedies provided herein or any applicable law. 2.5 Waiver. Payment to Consultant for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Consultant. ARTICLE 3. PERFORMANCE SCHEDULE 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. 3.2 Schedule of Performance. Consultant shall commence the services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all services within the time period(s) established in the “Schedule of Performance” attached hereto as Exhibit “D” and incorporated herein by this reference. When requested by the Consultant, extensions to the time period(s) specified in the Schedule of Performance may be approved in writing by the Contract Officer through a Change Order, but not exceeding 90 (ninety) days cumulatively. 3.3 Force Majeure. The time period(s) specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the Consultant, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including the City, if the Consultant shall within 10 (ten) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of the Contract Officer such delay is justified. The Contract Officer’s determination shall be final and conclusive upon the parties to this Agreement. In no event shall Consultant be entitled to recover damages against the City for any delay in the performance of this Agreement, however caused, Consultant’s sole remedy being extension of the Agreement pursuant to this Section. 3.4 Term. Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services but not exceeding one (1) A-8 01203.0004/736917.1 8 year from the date hereof, except as otherwise provided in the Schedule of Performance (Exhibit “D”). The City may, in its discretion, extend the Term by one additional one-year term. ARTICLE 4. COORDINATION OF WORK 4.1 Representatives and Personnel of Consultant. The following principals of Consultant (“Principals”) are hereby designated as being the principals and representatives of Consultant authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith: Matthew Weatherly President (Name) (Title) Kathryn Tilzer Vice President (Name) (Title) Bob Longmire Senior Analyst (Name) (Title) It is expressly understood that the experience, knowledge, capability and reputation of the foregoing principals were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing principals shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. All personnel of Consultant, and any authorized agents, shall at all times be under the exclusive direction and control of the Principals. For purposes of this Agreement, the foregoing Principals may not be replaced nor may their responsibilities be substantially reduced by Consultant without the express written approval of City. Additionally, Consultant shall utilize only the personnel included in the Proposal to perform services pursuant to this Agreement. Consultant shall make every reasonable effort to maintain the stability and continuity of Consultant’s staff and subcontractors, if any, assigned to perform the services required under this Agreement. Consultant shall notify City of any changes in Consultant’s staff and subcontractors, if any, assigned to perform the services required under this Agreement, prior to and during any such performance. City shall have the right to approve or reject any proposed replacement personnel, which approval shall not be unreasonably withheld. 4.2 Status of Consultant. Consultant shall have no authority to bind City in any manner, or to incur any obligation, debt or liability of any kind on behalf of or against City, whether by contract or otherwise, unless such authority is expressly conferred under this Agreement or is otherwise expressly conferred in writing by City. Consultant shall not at any time or in any manner represent that Consultant or any of Consultant’s officers, employees, or agents are in any manner officials, officers, employees or agents of City. Neither Consultant, nor any of Consultant’s officers, employees or agents, shall obtain any rights to retirement, health care or any other benefits which may A-9 01203.0004/736917.1 9 otherwise accrue to City’s employees. Consultant expressly waives any claim Consultant may have to any such rights. 4.3 Contract Officer. The Contract Officer shall be Julie DeZiel or such person as may be designated by the Deputy City Manager, Karina Bañales. It shall be the Consultant’s responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and the Consultant shall refer any decisions which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. The Contract Officer shall have authority, if specified in writing by the City Manager, to sign all documents on behalf of the City required hereunder to carry out the terms of this Agreement. 4.4 Independent Consultant. Neither the City nor any of its employees shall have any control over the manner, mode or means by which Consultant, its agents or employees, perform the services required herein, except as otherwise set forth herein. City shall have no voice in the selection, discharge, supervision or control of Consultant’s employees, servants, representatives or agents, or in fixing their number, compensation or hours of service. Consultant shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Consultant in its business or otherwise or a joint venturer or a member of any joint enterprise with Consultant. 4.5 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for the City to enter into this Agreement. Therefore, Consultant shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of the City; all subcontractors included in the Proposal are deemed approved. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than 25% (twenty five percent) of the present ownership and/or control of Consultant, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release the Consultant or any surety of Consultant of any liability hereunder without the express consent of City. A-10 01203.0004/736917.1 10 ARTICLE 5. INSURANCE AND INDEMNIFICATION 5.1 Insurance Coverages. Without limiting Consultant’s indemnification of City, and prior to commencement of any services under this Agreement, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City. (a) General liability insurance. Consultant shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. (b) Automobile liability insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Services to be performed under this Agreement, including coverage for any owned, hired, non- owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. (c) Professional liability (errors & omissions) insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three (3) years after completion of the services required by this Agreement. (d) Workers’ compensation insurance. Consultant shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). (e) Subcontractors. Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall include all of the requirements stated herein. (f) Additional Insurance. Policies of such other insurance, as may be required in the Special Requirements in Exhibit “B”. 5.2 General Insurance Requirements. (a) Proof of insurance. Consultant shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be A-11 01203.0004/736917.1 11 approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. City reserves the right to require complete, certified copies of all required insurance policies, at any time. (b) Duration of coverage. Consultant shall procure and maintain for the duration of this Agreement insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Services hereunder by Consultant, its agents, representatives, employees or subconsultants. (c) Primary/noncontributing. Coverage provided by Consultant shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non - contributory basis for the benefit of City before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured. (d) City’s rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain and continuously maintain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement. (e) Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or that is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VI (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager. (f) Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants. (g) Enforcement of contract provisions (non-estoppel). Consultant acknowledges and agrees that any actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. (h) Requirements not limiting. Requirements of specific coverage features or limits contained in this section are not intended as a limitation on coverage, limits or other A-12 01203.0004/736917.1 12 requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. (i) Notice of cancellation. Consultant agrees to oblige its insurance agent or broker and insurers to provide to City with a 30 (thirty) day notice of cancellation (except for nonpayment for which a 10 (ten) day notice is required) or nonrenewal of coverage for each required coverage. (j) Additional insured status. General liability policies shall provide or be endorsed to provide that City and its officers, officials, employees, and agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies. (k) Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. (l) Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions. (m) Pass through clause. Consultant agrees to ensure that its subconsultants, subcontractors, and any other party involved with the project who is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage and endorsements required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the project will be submitted to City for review. (n) Agency’s right to revise specifications. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant 90 (ninety) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City and Consultant may renegotiate Consultant’s compensation. (o) Self-insured retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City. A-13 01203.0004/736917.1 13 (p) Timely notice of claims. Consultant shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies. (q) Additional insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work. 5.3 Indemnification. To the full extent permitted by law, Consultant agrees to indemnify, defend and hold harmless the City, its officers, employees and agents (“Indemnified Parties”) against, and will hold and save them and each of them harmless from, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities whether actual or threatened (herein “claims or liabilities”) that may be asserted or claimed by any person, firm or entity arising out of or in connection with the negligent performance of the work, operations or activities provided herein of Consultant, its officers, employees, agents, subcontractors, or invitees, or any individual or entity for which Consultant is legally liable (“indemnitors”), or arising from Consultant’s or indemnitors’ reckless or willful misconduct, or arising from Consultant’s or indemnitors’ negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, and in connection therewith: (a) Consultant will defend any action or actions filed in connection with any of said claims or liabilities and will pay all costs and expenses, including legal costs and attorneys’ fees incurred in connection therewith; (b) Consultant will promptly pay any judgment rendered against the City, its officers, agents or employees for any such claims or liabilities arising out of or in connection with the negligent performance of or failure to perform such work, operations or activities of Consultant hereunder; and Consultant agrees to save and hold the City, its officers, agents, and employees harmless therefrom; (c) In the event the City, its officers, agents or employees is made a party to any action or proceeding filed or prosecuted against Consultant for such damages or other claims arising out of or in connection with the negligent performance of or failure to perform the work, operation or activities of Consultant hereunder, Consultant agrees to pay to the City, its officers, agents or employees, any and all costs and expenses incurred by the City, its officers, agents or employees in such action or proceeding, including but not limited to, legal costs and attorneys’ fees. Consultant shall incorporate similar indemnity agreements with its subcontractors and if it fails to do so Consultant shall be fully responsible to indemnify City hereunder therefore, and failure of City to monitor compliance with these provisions shall not be a waiver hereof. This indemnification includes claims or liabilities arising from any negligent or wrongful act, error or omission, or reckless or willful misconduct of Consultant in the performance of professional services hereunder. The provisions of this Section do not apply to claims or liabilities occurring A-14 01203.0004/736917.1 14 as a result of City’s sole negligence or willful acts or omissions, but, to the fullest extent permitted by law, shall apply to claims and liabilities resulting in part from City’s negligence, except that design professionals’ indemnity hereunder shall be limited to claims and liabilities arising out of the negligence, recklessness or willful misconduct of the design professional. The indemnity obligation shall be binding on successors and assigns of Consultant and shall survive termination of this Agreement. ARTICLE 6. RECORDS, REPORTS, AND RELEASE OF INFORMATION 6.1 Records. Consultant shall keep, and require subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports, studies or other documents relating to the disbursements charged to City and services performed hereunder (the “books and records”), as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the performance of such services. Any and all such documents shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Officer shall have full and free access to such books and records at all times during normal business hours of City, including the right to inspect, copy, audit and make records and transcripts from such records. Such records shall be maintained for a period of three (3) years following completion of the services hereunder, and the City shall have access to such records in the event any audit is required. In the event of dissolution of Consultant’s business, custody of the books and records may be given to City, and access shall be provided by Consultant’s successor in interest. Notwithstanding the above, the Consultant shall fully cooperate with the City in providing access to the books and records if a public records request is made and disclosure is required by law including but not limited to the California Public Records Act. 6.2 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the services required by this Agreement as the Contract Officer shall require. Consultant hereby acknowledges that the City is greatly concerned about the cost of work and services to be performed pursuant to this Agreement. For this reason, Consultant agrees that if Consultant becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the work or services contemplated herein or, if Consultant is providing design services, the cost of the project being designed, Consultant shall promptly notify the Contract Officer of said fact, circumstance, technique or event and the estimated increased or decreased cost related thereto and, if Consultant is providing design services, the estimated increased or decreased cost estimate for the project being designed. 6.3 Ownership of Documents. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents and other materials (the “documents and materials”) prepared by Consultant, its employees, subcontractors and agents in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of the A-15 01203.0004/736917.1 15 Contract Officer or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the documents and materials hereunder. Any use, reuse or assignment of such completed documents for other projects and/or use of uncompleted documents without specific written authorization by the Consultant will be at the City’s sole risk and without liability to Consultant, and Consultant’s guarantee and warranties shall not extend to such use, reuse or assignment. Consultant may retain copies of such documents for its own use. Consultant shall have the right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any documents or materials prepared by them, and in the event Consultant fails to secure such assignment, Consultant shall indemnify City for all damages resulting therefrom. Moreover, Consultant with respect to any documents and materials that may qualify as “works made for hire” as defined in 17 U.S.C. § 101, such documents and materials are hereby deemed “works made for hire” for the City. 6.4 Confidentiality and Release of Information. (a) All information gained or work product produced by Consultant in performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Consultant. Consultant shall not release or disclose any such information or work product to persons or entities other than City without prior written authorization from the Contract Officer. (b) Consultant, its officers, employees, agents or subcontractors, shall not, without prior written authorization from the Contract Officer or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement. Response to a subpoena or court order shall not be considered “voluntary” provided Consultant gives City notice of such court order or subpoena. (c) If Consultant, or any officer, employee, agent or subcontractor of Consultant, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Consultant for any damages, costs and fees, including attorney’s fees, caused by or incurred as a result of Consultant’s conduct. (d) Consultant shall promptly notify City should Consultant, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed there under. City retains the right, but has no obligation, to represent Consultant or be present at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Consultant. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. A-16 01203.0004/736917.1 16 ARTICLE 7. ENFORCEMENT OF AGREEMENT AND TERMINATION 7.1 California Law. This Agreement shall be interpreted, construed and governed both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Los Angeles, State of California, or any other appropriate court in such county, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in the County of Los Angeles, State of California. 7.2 Disputes; Default. In the event that Consultant is in default under the terms of this Agreement, the City shall not have any obligation or duty to continue compensating Consultant for any work performed after the date of default. Instead, the City may give notice to Consultant of the default and the reasons for the default. The notice shall include the timeframe in which Consultant may cure the default. This timeframe is 15 (fifteen) days, but may be extended, though not reduced, if circumstances warrant. During the period of time that Consultant is in default, the City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, the City may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default. If Consultant does not cure the default, the City may take necessary steps to terminate this Agreement under this Article. Any failure on the part of the City to give notice of the Consultant’s default shall not be deemed to result in a waiver of the City’s legal rights or any rights arising out of any provision of this Agreement. 7.3 Retention of Funds. Consultant hereby authorizes City to deduct from any amount payable to Consultant (whether or not arising out of this Agreement) (i) any amounts the payment of which may be in dispute hereunder or which are necessary to compensate City for any losses, costs, liabilities, or damages suffered by City, and (ii) all amounts for which City may be liable to third parties, by reason of Consultant’s acts or omissions in performing or failing to perform Consultant’s obligation under this Agreement. In the event that any claim is made by a third party, the amount or validity of which is disputed by Consultant, or any indebtedness shall exist which shall appear to be the basis for a claim of lien, City may withhold from any payment due, without liability for interest because of such withholding, an amount sufficient to cover such claim. The failure of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of the Consultant to insure, indemnify, and protect City as elsewhere provided herein. 7.4 Waiver. Waiver by any party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any party of any breach of the provisions of this Agreement shall not constitute a waiver of any other A-17 01203.0004/736917.1 17 provision or a waiver of any subsequent breach or violation of any provision of this Agreement . Acceptance by City of any work or services by Consultant shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 7.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 7.6 Legal Action. In addition to any other rights or remedies, either party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. Notwithstanding any contrary provision herein, Consultant shall file a statutory claim pursuant to Government Code Sections 905 et seq. and 910 et seq., in order to pursue a legal action under this Agreement. 7.7 Termination Prior to Expiration of Term. This Section shall govern any termination of this Contract except as specifically provided in the following Section for termination for cause. The City reserves the right to terminate this Contract at any time, with or without cause, upon 30 (thirty) days’ written notice to Consultant, except that where termination is due to the fault of the Consultant, the period of notice may be such shorter time as may be determined by the Contract Officer. Upon receipt of any notice of termination, Consultant shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Consultant shall be entitled to compensation for all services rendered prior to the effective date of the notice of termination and for any services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 7.3. In the event of termination without cause pursuant to this Section, the City need not provide the Consultant with the opportunity to cure pursuant to Section 7.2. 7.8 Termination for Default of Party. If termination is due to the failure of the other Party to fulfill its obligations under this Agreement: (a) City may, after compliance with the provisions of Section 7.2, take over the work and prosecute the same to completion by contract or otherwise, and the Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the A-18 01203.0004/736917.1 18 compensation herein stipulated (provided that the City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to the Consultant for the purpose of set-off or partial payment of the amounts owed the City as previously stated. (b) Consultant may, after compliance with the provisions of Section 7.2, terminate the Agreement upon written notice to the City‘s Contract Officer. Consultant shall be entitled to payment for all work performed up to the date of termination. 7.9 Attorneys’ Fees. If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorney’s fees. Attorney’s fees shall include attorney’s fees on any appeal, and in addition a party entitled to attorney’s fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment. ARTICLE 8. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION 8.1 Non-liability of City Officers and Employees. No officer or employee of the City shall be personally liable to the Consultant, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Consultant or to its successor, or for breach of any obligation of the terms of this Agreement. 8.2 Conflict of Interest. Consultant covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which 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 express written consent of the Contract Officer. Consultant agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement. No officer or employee of the City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which affects her/his financial interest or the financial interest of any corporation, partnership or association in which (s)he is, directly or indirectly, interested, in violation of any State statute or regulation. The Consultant warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement. A-19 01203.0004/736917.1 19 8.3 Covenant Against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry or other protected class in the performance of this Agreement. Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to thei r race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry or other protected class. 8.4 Unauthorized Aliens. Consultant hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act, 8 U.S.C. § 1101 et seq., as amended, and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Consultant so employ such unauthorized aliens for the performance of work and/or services covered by this Agreement, and should any liability or sanctions be imposed against City for such use of unauthorized aliens, Consultant hereby agrees to and shall reimburse City for the cost of all such liabilities or sanctions imposed, together with any and all costs, including attorneys’ fees, incurred by City. ARTICLE 9. MISCELLANEOUS PROVISIONS 9.1 Notices. Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail, in the case of the City, to the City Manager and to the attention of the Contract Officer (with her/his name and City title), City of Rancho Palos Verdes, 30940 Hawthorne Blvd., Rancho Palos Verdes, California 90275 and in the case of the Consultant, to the person(s) at the address designated on the execution page of this Agreement. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section. 9.2 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. 9.3 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument. A-20 A-21 01203.0004/736917.1 21 9.7 Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of any other Agreement to which said party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the parties. [SIGNATURES ON FOLLOWING PAGE] A-22 A-23 A-24 A-25 01203.0004/736917.1 A-1 EXHIBIT “A” SCOPE OF SERVICES I. Consultant shall provide the following consulting services and implementation support to conduct a comprehensive classification and compensation study for all full-time and part-time personnel. The compensation portion of the study shall provide the fully burdened cost including all forms of salary and bonuses; benefit costs including health insurance, life insurance, retirement, leave banks, and other miscellaneous employer paid benefits(the “Services”). The Services shall be provided as follows: A. Project Planning and Communication 1. Project planning and scheduling meeting with the City’s Human Resources Staff, project designee(s)* 2. Policy input and project direction meeting and briefing with Council, Human Resources and designee(s)* 3. Project briefing presentation for all employees, Council, City officials, City’s project leaders* 4. Management and employee communication, progress reports throughout all project phases 5. Assistance with development and communication with a committee of employee representatives B. Classification Project Tasks 6. Occupational familiarization by review of City’s current class specifications and compensation plans 7. Organizational familiarization by review of City organization charts, budgets, and annual reports 8. Job Analysis Questionnaire (JAQ) customized for gathering City employee occupation data 9. Meetings to distribute and explain the JAQ and the project for all City officials and employees 10. Job interviews, desk audits / field observations with representatives of each class* 11. Recommended title modifications and reclassifications for consideration by department heads 12. Review of reporting relationships and span of control, review of organization charts 13. Review of position classification recommendations with City’s project staff and respective departments 14. Facilitation of employee participation and feedback process on any proposed classification changes 15. Preparation of updated classification specifications for each included job classification C. Compensation Survey(s) and Organizational Review 17. Identification of City occupations to utilize as survey benchmark job classifications 18. Solicitation of comparator employers and agencies for participation in external compensation surveys 19. Extraction of data from public employer compensation plans, questionnaires, reliable published surveys 20. Collection of total compensation and benefits data for comparison to current practi ces 21. Consolidation of data from all sources and calculation of prevailing rates for b enchmark jobs 22. Computation of extent City’s compensation offerings vary from external prevailing rates and practices 23. Review of competitiveness analysis with Human Resources, City Officials and City’s project A-26 01203.0004/736917.1 A-2 - Internally equitable - Externally competitive - Readily understood - Easily updated & maintained - Legally compliant & defensible designees 24. Collection of staffing per function or staffing per capita data from survey comparators, for review D. Compensation Plan Development 25. Construction of optional salary range structures for review and selection by City’s project leaders 26. Assignment of job classes to salary ranges by internal equity and external competitiveness 27. Assistance with City Council identification of desired, affordable salary competitiveness policy 28. Fiscal impact estimates at various levels of external prevailing rates competitiveness policies 29. Review and critique of draft salary and implementation plans with Human Resources, project leaders E. Communication of Results and Implementation Strategies 30. Preparation and presentation of final project reports for the City Council, staff, and City Officials 31. Development of a plan for the implementation of City’s updated classification and compensation plan 32. Uploading of EZ COMP™ program files on a Human Resources Department computer, staff training 33. Development and provision of process for ongoing plan maintenance and subsequent plan updates 34. Assistance with communicating the City’s updated plans for all City officials and employees * virtual and in person options pending COVID-19 restrictions II. Consultant shall complete the Services through the following overall work plan and approach: A. OBJECTIVES OF THE PROJECT The recommended plans, programs, systems and administrative procedure s will meet these ten most important criteria. - Financially responsible - Efficiently administered - Inclusive of employee input - Reflective of City's values - Reflective of prevailing “best practices” B. SCOPE OF THE PROJECT The project includes: a management and employee communication plan; partnership with the City’s Human Resources staff, City Manager, Council, and project designee(s); occupational, organizational, and operational familiarization; Job Analysis Questionnaire (JAQ) and job analysis for all classifications; worksite job information interviews; position classification and job title recommendations for all employees and classifications; FLSA designations; updated classification specifications; EZ COMP™; internal equity and external competitiveness evaluation; total compensation survey and competitiveness analysis; salary range recommendations; fiscal impact estimates and multiple implementation scenarios; updated A-27 01203.0004/736917.1 A-3 classification and compensation plan and classification and compensation plan implementatio n support for all included employees in all job classifications. C. PROJECT METHODOLOGY 1. Quality Assurance To ensure a high-quality project, Consultant has built in several layers of procedural and statistical controls, in addition to those already in EZ COMP™. Internally, Consultant follows a prescribed series of steps in each project phase, which are reviewe d by its Project Director. Consultant requests that the Human Resources and City’s Project Manager(s) review its work to minimize the chance of errors and to ensure that it reflects the City's organizational values. 2. Project Planning Meetings and Communication Plan Development Consultant will consult with the Human Resources Team and City Officials or representatives on a communication strategy, plan, and materials, beginning prior to the project and extending to the post project information meetings. Consultant plans to conduct group pre- project meetings for all City officials and employees where it will discuss the project’s scope, answer questions, and distribute and explain the Job Analysis Questionnaire. D. POSITION CLASSIFICATION ANALYSIS 1. Review of Essential Tasks - Job Analysis Questionnaire Consultant will review and analyze the current essential tasks, duties and responsibilities, and minimum qualifications of each included position through the Position Analysis Questionnaire (JAQ) to be completed by e ach employee (or group of employees with identical jobs) in print or electronic format. If the information on the JAQ does not clearly delineate the position’s scope of responsibilities, Consultant may return the JAQ to the position’s incumbent for additional information, or focus on the data gap during a worksite job information interview. 2. Employee Worksite Job Information Interviews Consultant will conduct a worksite job information interview with a representative incumbent of every requested job classification or for those it proposes to change. The purpose of these interviews is to verify the data on the JAQ, obtain additional insight into the scope and complexity of the job duties, observe technical processes and working conditions, and to provide employees with an additional method of participation in the project. This process also ensures that Consultant makes all internal and external comparisons on the basis of actual job content and not merely job title. 3. FLSA Status Determination Consultant will review the essential tasks and minimum qualifications of each of the City's job A-28 01203.0004/736917.1 A-4 Job Title - Definition Distinguishing Characteristics Essential Functions Desired Knowledge and Skills Physical Requirements Non-Essential Functions Mental Requirements Working Conditions classifications and subject them to the Fair Labor Standards Act tests to determine their exempt or non-exempt status. 4. Position Classification Each of the City’s positions will be analyzed and evaluated to determine their primary characteristics, including: Is there a current City occupational job group comprised of job classes with essential functions similar to the subject position; if so: To which of the group’s job classes, and at what level, are the subject position’s essential functions similar to the subject position, and if so: Are they sufficiently comparable (+/- 20% guideline) to be allocated to that job class, utilize the same job title, require the same minimum qualific ations, and be assigned to the same salary range. If the City does not currently have a sufficiently comparable job class, what should be the subject position’s occupational job class and title, and: What should the recommended occupational classification action be, No Change (N), Title Change (T), Merge With Other Job Class (M), New Job Class (J). Consultant may find that a job class is overly broad and encompasses several job activities which are regarded with significant salary difference in the marketpl ace. In such an instance, Consultant will recommend "splitting" the job class into the current job class and a new job class which encompasses the different job activities. 5. Updated Classification Specifications Consultant can prepare an updated class specification in the City’s standard or other selected format for each occupational job class. Focus will be on the Essential Functions and Minimum Qualifications. The specifications or descriptions may include (not limited to) the following the following components: Education, Training and Experience Licenses and Certifications FLSA Exempt/Non- Exempt Status Supervision Exercise/Received 6. Draft Classification Plan Review with Human Resources and Department Heads Consultant will conduct a review of its initial position classification recommendations and draft job descriptions with the City’s Project Team and respective departm ent heads to identify possible errors, obtain feedback, and solicit suggestions for clarification. A-29 01203.0004/736917.1 A-5 - Comparator Employer Selection - Benchmark Job Class Selection - Compensation Competitiveness Policy - Salary Structure Selection - Job Evaluation Method-Salary Plan Linkage - Draft Compensation Plan Review / Critique - Total Compensation Points for Analysis - Project Implementation Plan E. COMPENSATION SURVEY AND ANALYSIS 1. City Involvement in Compensation Plan Development Consultant will obtain policy direction from the City Council, Human Resources s taff, and/or City Officials on the following key components of the salary plan development process: 2. Comprehensive Compensation Survey (including review of market comparators) Consultant does not subscribe to or recommend the use of databases or data warehouses used or hosted by other firms! Consultant will collect the complete pay plans from each of the City’s comparators and build a custom survey database to ensure accuracy and completeness, unique to the City’s job classifications. a. Data Collection Protocol will be developed in consultation with the City’s project leaders to determine which salary data elements to include, such as: Base Salary Information - Salary grade/step or open range salary plan structure - Salary range structure Minimum, Midpoint, and Maximum - Method of salary administration - longevity, performance, or skill Additional Compensation Information (to be finalized with Staff) - City-supported benefits such as health insurance, pension contributions - Supplemental pay items for special qualifications/certifications - Individual or group incentive plans, bonus, awards, stipends - Any additional add-pay or benefits items at City’s discretion b. Benchmark Job Selection will be made by identifying City job classes common to its employment-competitive public and private employers in the immediate area and throughout the region or State, clearly identifiable, and representative of standard occupational job groups. c. Comparator Employers Identification will focus on full service cities in Orange County over 100,000 resident population and/or similarly situated beach cities. d. Compensation Data Collection will be made by one or more of the following methods. - Pre-survey contact with the selected comparator employers to solicit participation in the City’s compensation survey(s). - Extraction from the pay plans of designated public employers. - Customized salary and total compensation and benefits survey requests for local governments and other public employers, distributed by mail, fax, and e-mail. - As desired, additional data extraction from es tablished salary surveys and commercial survey sources such as Watson Wyatt, ERI, etc. e. Data Quality Control includes editing data for accuracy and proper matching to the City’s survey benchmark jobs, and phone/fax/E-mail follow-ups for data clarification and to obtain A-30 01203.0004/736917.1 A-6 comparators’ benchmark job descriptions. 3. Prevailing Rates Calculation Consultant will consolidate the compensation data from all sources, enter the information into the EZ COMP™ program, and compute the prevailing rates, inclusive of cost of living differentials, as the statistical mean of the survey data for each benchmark job class. Data will be projected forward from the date of collection to a common date relating to the City’s salary plan year by the annual Prevailing Rate Increase Factor (PRI) applicable at that time. 4. Compensation Competitiveness Comparison Consultant will provide the City with charts comparing its current salary structures to those of the selected public and private comparator employers. Consultant will calculate the extent that the City’s offerings vary from the prevailing rates and practices of other relevant employers. F. COMPENSATION PLAN DEVELOPMENT 1. Compensation Competitiveness Policy Consultant will assist the City to select a compensation competitiveness policy which best fits its compensation strategy and financial resources, by providing fiscal impact estimates at various percentage relationships to the prevailing rates. 2. Salary Plan Structure Development Consultant will review the City’s current wage plans and 1) utilize the City’s current wage plan structures to identify internally equitable and externally competitive salary ranges for each City job class or 2) prepare alternative salary range structures and schedules for the City to select the best fit for its competitiveness strategy, with these optional criteria: - Method of administration, i.e.: measured job performance, longevity, or skill - Width of the salary ranges, grades or broad bands, from Minimum to Maximum - Varying salary range widths for FLSA non-exempt positions - Open salary ranges for pay-for-performance or variable compensation plan - If steps within the salary ranges, number of steps, percentage separation - Number of salary ranges, grades, or broad bands in the salary schedule - Percentage of separation between salary ranges, grades or broad bands - Recognition for longevity, unique assignments, and special skill requirements - Remuneration for required special licenses, certifications and registrations - Linkage of performance evaluations to performance increase opportunities 3. Salary Range Assignment Development Consultant will assign each job classification to a salary range in the City’s current or selected new salary structure on the basis of a combination of factors, including: - the prevailing rates for the benchmark job classes - its current relationship to similar or occupationally related job classes - the 15% guideline for salary range separation between sequential job classes - the 25% guideline for salary separation of a department head job class A-31 01203.0004/736917.1 A-7 4. Implementation Plan Development Consultant will consult with the Human Resources and Project Team on a plan for transition to the recommended plan, including a timetable for the principal activities, employee communication, impact on budget processes, and estimates of required financial resources. Consultant will provide the City with charts comparing its current salary structures to those of the selected public and private comparator employers. Consultant will calculate the extent that the City’s offerings vary from the prevailing rates and practices of other relevant employers. G. ENSURING THE CITY’S SELF-SUFFICIENCY The City will be self-sufficient in all aspects of maintenance of the updated position classification and compensation plan through these services. 1. Procedure Manuals - PSPC Position Classification Procedure Guide - PSPC Salary Administration Procedure Guide - City of Rancho Palos Verdes EZ COMP™ Procedure Guide 2. Training Workshop – for City staff in position classification, job evaluation, compensation surveys, and compensation plan design and administration. 3. Electronic Class Specification Library – Consultant can provide the City with all updated classification specifications in hard copy and electronic library format for internal maintenance. 4. EZ COMP™ – program and project files on one of the City’s computers, a customer user’s manual, and system training for key City and Human Resources staff. 5. Initial Year’s Implementation Warranty Support – Consultant will analyze, evaluate, classify, and provide a salary range recommendation for any new or changed position or entire job classification, at no cost to the City for one year. . H. EXTENSIVE EMPLOYEE INCLUSION AND COMMUNICATION Very important factors for successful implementation of new or updated classification and compensation plans are 1) extensive employee inclusion, and 2) extensive employee communication. City officials and employees will participate in one or more of the following activities: - Attending pre-project briefings and question and answer sessions - Completing a Position Analysis Questionnaire (JAQ) describing their position - Elaborating on their jobs in individual or group information interviews - Requesting a second review of their positions’ occupational job classification - Receiving information pamphlet/booklet describing the updated salary plan A-32 01203.0004/736917.1 A-8 I. MINIMAL CITY SUPPORT REQUIRED Consultant is completely self-sufficient in projects of this nature and do not require any substantive staff support from the City other than payroll data, and arrangements for group and individual meetings and interviews. Consultant appreciates, but does not require, any office space, telephone, clerical assistance, computers, or office equipment. Consultant will provide all data entry, data processing, duplicating, and related report preparation functions. J. REPORTS AND PRESENTATIONS 1. Draft and Final Report Preparation Consultant will provide the City’s project leader(s) with a draft of Consultant’s report for review and critique, including the classification plan, compensation market data, salary comparison tables, fiscal estimates, salary range listings, and implementation procedures. Consultant will incorporate City’s critique into the development of a final report summarizing the project’s findings, recommendations, and detailed description of the City’s updated position classification and compensation plans. . 2. Final Report Presentations Consultant will conduct a workshop or formal presentation of its final report and recommendations to the Human Resources staff, City Officials, and employees. 3. EZ COMP™ Program Installation Consultant will install its EZ COMP™ Program and project files on one of the Human Resources Department’s computers and provide training to key staff in the maintenance and update of the classification and compensation plan. 4. Implementation Warranty To ensure effective implementation of the new plan, Consultant will analyze, evaluate, and provide a salary range recommendation for any new or changed job class, at no cost to the City for one year. III. All work product is subject to review and acceptance by the City, and must be revised by the Consultant without additional charge to the City until found satisfactory and accepted by City. A-33 01203.0004/736917.1 B-1 EXHIBIT “B” SPECIAL REQUIREMENTS (Superseding Contract Boilerplate) Added text indicated in bold italics, deleted text indicated in strikethrough. [INTENTIONALLY LEFT BLANK] A-34 01203.0004/736917.1 C-1 EXHIBIT “C” SCHEDULE OF COMPENSATION I. Consultant shall perform the following tasks at the following rates: II. The City will compensate Consultant for the Services performed upon submission of a valid invoice. Each invoice is to include: A. Line items for all personnel describing the work performed, the number of hours worked, and the hourly rate. B. Line items for all materials and equipment properly charged to the Services. C. Line items for all other approved reimbursable expenses claimed, with supporting documentation. D. Line items for all approved subcontractor labor, supplies, equipment, materials, and travel properly charged to the Services. III. The total compensation for the Services shall not exceed the Contract Sum as provided in Section 2.1 of this Agreement. Tasks Description Cost 1. Planning Meetings, Kick Off, Communication and JAQ Intro $2,000 2. Job Information Interviews / Desk Audits (50) $6,000 3. Position Classification, Job Titling Review $1,000 4. Updated Class Specifications (50) $4,000 5. Total Compensation Survey $25,000 6. Pay Plan Modeling, Implementation Options and Costing $2,000 7. Organizational and Staffing Review $3,000 8. Reporting and Presentations $2,000 TOTAL $45,000 A-35 01203.0004/736917.1 D-1 EXHIBIT “D” SCHEDULE OF PERFORMANCE I. Consultant shall perform all Services timely in accordance with the following schedule, starting from the date of the Notice to Proceed. II. The Contract Officer may approve extensions for performance of the services in accordance with Section 3.2. A-36 PROPOSAL TO CONDUCT A CLASSIFICATION AND COMPENSATION STUDY FOR THE CITY OF RANCHO PALOS VERDES JUNE 2021 PREPARED BY Matthew Weatherly, President (888) 522-7772 / matt@pspc.us B-1 PROPOSAL TO CONDUCT A CLASSIFICATION AND COMPENSATION STUDY FOR THE CITY OF RANCHO PALOS VERDES TABLE OF CONTENTS Section Page 1 COVER LETTER 1 2 WORK PLAN AND METHODOLOGY SUMMARY OF SERVICES FOR THE CITY 2 PROJECT SCOPE AND METHODOLOGY 3 A. OBJECTIVES OF THE PROJECT 3 B. SCOPE OF THE PROJECT 3 C. PROJECT METHODOLOGY 3 1. Quality Assurance 3 2. Project Planning Meetings and Communication Plan Development 3 D. POSITION CLASSIFICATION ANALYSIS 4 1. Review of Essential Tasks – Job Analysis Questionnaire 4 2. Employee Job Information Interviews 4 3. FLSA Status Determination 4 4. Position Classification 4 5. Updated Class Specifications 5 6. Draft Classification Plan Reviews 5 E. TOTAL COMPENSATION SURVEY AND ANALYSIS 5 1. City Involvement in Compensation Plan Development 5 2. Comprehensive Compensation Survey(s) 5 3. Prevailing Rates Calculation 6 4. Compensation Competitiveness Comparison 6 F. COMPENSATION PLAN DEVELOPMENT 7 1. Compensation Competitiveness Policy 7 2. Salary Plan Structure Development 7 3. Salary Range Assignment Development 7 4. Implementation Plan Development 7 G. ENSURING THE CITY’S SELF-SUFFICIENCY 8 H. EXTENSIVE EMPLOYEE INCLUSION AND COMMUNICATION 8 I. MINIMAL CITY SUPPORT REQUIRED 8 J. FINAL REPORTS AND PRESENTATIONS 9 3 TIME SCHEDULE PROJECT TIMELINE ILLUSTRATION – GANTT CHART 10 4 COST PROPOSAL 11 5 EXPERIENCE OF FIRM HISTORY AND FACTS ABOUT OUR FIRM 12 CLIENT REFERENCES 13 RECENT CALIFORNIA EMPLOYERS SERVED 14 RECENT MUNICIPAL EMPLOYERS SERVED 14 6 PROJECT TEAM EXPERIENCE PROJECT TEAM ORGANIZATION CHART 15 RESUMES OF PROJECT TEAM MEMBERS 15 7 PSPC BROCHURES – COMMUNICATING THE PROJECT; EZ COMPTM APPLICATION Please visit www.pspc.us for work samples and additional resources PUBLIC SECTOR PERSONNEL CONSULTANTS B-2 PROPOSAL TO CONDUCT A CLASSIFICATION AND COMPENSATION STUDY FOR THE CITY OF RANCHO PALOS VERDES COVER LETTER 1,000+ PUBLIC EMPLOYERS SERVED ________________________________________________ PUBLIC SECTOR PERSONNEL CONSULTANTS B-3 June 17, 2021 Ms. Julie DeZiel Human Resources Manager City of Rancho Palos Verdes 30940 Hawthorne Boulevard Rancho Palos Verdes, CA 90275 Dear Ms. DeZiel and Selection Team, Pursuant to your request, we are pleased to provide you with a proposal and qualifications to assist the City with a classification and compensation study. We specialize in these services and have implemented classification and compensation plans for more than 1,100 public employers nationwide, including more than 400 municipal employers and over 100 public employers in California. Current and recently completed studies include those for the Cities of Huntington Beach, San Clemente, San Juan Capistrano, Montebello, Thousand Oaks, Bell Gardens, La Verne, Westlake Village, Agoura Hills, Azusa, Salinas, Riverside, Colton and San Bernardino. We believe our firm is uniquely qualified for this study. We will utilize only full-time, certified Human Resources professionals for the study, with combined greater than 1 00 years of experience in the fields of human resources, compensation, and labor relations . Our proposed approach will be customized to meet the City’s needs. We are confident that our extensive public employers classification and compensation experience, knowledge of public employers in California, large specialized and highly qualified full time staff, proven methods, unique EZ COMPTM application to ensure your self-sufficiency, and one year of implementation support and assistance at no cost, will achie ve all of the City’s objectives for an important project of this nature. No known conflicts exist and we take no exceptions to the scope or requirements. In light of COVID-19 restrictions, we have several flexible, online and virtual options to ensure high quality results, employee participation, and overall communication without sacrific ing quality or consistency. Thank you for your interest in our firm’s services. If we can provide any additional information, such as samples of recent similar studies, or if you would like to visit further or in person about the City’s project needs, please contact me at any time. Sincerely, Matthew Weatherly, President (888) 522-7772 matt@pspc.us Page 1 Regionally: 149 S. Barrington Avenue #726 Los Angeles, CA 90049 888.522.7772 • www.pspc.us B-4 PROPOSAL TO CONDUCT A CLASSIFICATION AND COMPENSATION STUDY FOR THE CITY OF RANCHO PALOS VERDES WORK PLAN AND METHODOLOGY SUMMARY OF SERVICES FOR THE CITY PROJECT SCOPE AND APPROACH ________________________________________________ PUBLIC SECTOR PERSONNEL CONSULTANTS B-5 SUMMARY OF SERVICES FOR THE CITY OF RANCHO PALOS VERDES PUBLIC SECTOR PERSONNEL CONSULTANTS (PSPC) proposes the following program of consulting services and implementation support to conduct a classification and compensation study . Project Planning and Communication 1. Project planning and scheduling meeting with the City’s Human Resources Staff, project designee(s)* 2. Policy input and project direction meeting and briefing with Council, Human Resources and designee(s)* 3. Project briefing presentation for all employees, Council, City officials, City’s project leaders* 4. Management and employee communication, progress reports throughout all project phases 5. Assistance with development and communication with a committee of employee representatives Classification Project Tasks 6. Occupational familiarization by review of City’s current class specifications and compensation plans 7. Organizational familiarization by review of City organization charts, budgets, and annual reports 8. Job Analysis Questionnaire (JAQ) customized for gathering City employee occupation data 9. Meetings to distribute and explain the JAQ and the project for all City officials and employees 10. Job interviews, desk audits / field observations with representatives of each class* 11. Recommended title modifications and reclassifications for consideration by department heads 12. Review of reporting relationships and span of control, review of organization charts 13. Review of position classification recom mendations with City’s project staff and respective departments 14. Facilitation of employee participation and feedback process on any proposed classification changes 15. Preparation of updated classification specifications for each included job classification Compensation Survey(s) and Organizational Review 16. Confirmation of survey cities to include in external total compensation comparisons 17. Identification of City occupations to utilize as survey benchmark job classifications 18. Solicitation of comparator employers and agencies for participation in external compensation surveys 19. Extraction of data from public employer compensation plans, questionnaires, reliable published surveys 20. Collection of total compensation and benefits data for comparison to current practices 21. Consolidation of data from all sources and calculation of prevailing rates for benchmark jobs 22. Computation of extent City’s compensation offerings vary from external prevailing rates and practices 23. Review of competitiveness analysis with Human Resources, City Officials and City’s project designees 24. Collection of staffing per function or staffing per capita data from survey comparators, for review Compensation Plan Development 25. Construction of optional salary range structures for review and selection by City’s project leaders 26. Assignment of job classes to salary ranges by internal equity and external competitiveness 27. Assistance with City Council identification of desired, affordable salary competitiveness policy 28. Fiscal impact estimates at various levels of external prevailing rates competitiveness policies 29. Review and critique of draft salary and implementation plans with Human Resources, project leaders Communication of Results and Implementation Strategies 30. Preparation and presentation of final project reports for the City Council, staff, and City Officials 31. Development of a plan for the implementation of City’s updated classification and compensation plan 32. Uploading of EZ COMPTM program files on a Human Resources Department computer, staff training 33. Development and provision of process for ongoing plan maintenance and subsequent plan updates 34. Assistance with communicating the City’s updated plans for all City officials and employees TS 6/21 * virtual and in person options pending COVID-19 restrictions RPVCA PUBLIC SECTOR PERSONNEL CONSULTANTS 6/21 2 B-6 PROJECT APPROACH AND METHODOLOGY Following is our overall work plan and approach to achieving the City’s objectives for the conduct of a classification and compensation study. A. OBJECTIVES OF THE PROJECT The recommended plans, programs, systems and administrative procedures will meet thes e ten most important criteria. - Internally equitable - Financially responsible - Externally competitive - Efficiently administered - Readily understood - Inclusive of employee input - Easily updated & maintained - Reflective of City's values - Legally compliant & defensible - Reflective of prevailing “best practices” B. SCOPE OF THE PROJECT The project includes: a management and employee communication plan; partnership with the City’s Human Resources staff, City Manager, Council, and project designee(s); occupational, organizational, and operational familiarization; Job Analysis Questionnaire (JAQ) and job analysis for all classifications; worksite job information interviews; position classification and job title recommendations for all employees and classifications; FLSA designations; updated classification specifications; EZ COMP™; internal equity and external competitiveness evaluation; total compensation survey and competitiveness analysis; salary range recommendations; fiscal impact estimates and multiple implementation scenarios; updated classification and compensation plan and classification and compensation plan implementation support for all included employees in all job classifications. C. PROJECT METHODOLOGY 1. Quality Assurance To ensure a high-quality project, we have built in several layers of procedural and statistical controls, in addition to those already in EZ COMP™. Internally, we follow a prescribed series of steps in each project phase, which are reviewed by our P roject Director. We request that the Human Resources and City’s Project Manager(s) review our work to minimize the chance of errors and to ensure that it reflects the City's organizational values. 2. Project Planning Meetings and Communication Plan Development We will consult with the Human Resources Team and City Officials or representatives on a communication strategy, plan, and materials, beginning prior to the project and extending to the post- project information meetings. We plan to conduct group pre-project meetings for all City officials and employees where we will discuss the project’s scope, answer questions, and distribute and expla in the Job Analysis Questionnaire. RPVCA PUBLIC SECTOR PERSONNEL CONSULTANTS 6/21 3 B-7 D. POSITION CLASSIFICATION ANALYSIS 1. Review of Essential Tasks – Job Analysis Questionnaire We will review and analyze the current essent ial tasks, duties and responsibilities, and minimum qualifications of each included position through the Position Analysis Questionnaire (JAQ) to be completed by each employee (or group of employees with identical jobs) in print or electronic format. If the information on the JAQ does not clearly delineate the position’s scope of responsibilities, we may return the JAQ to the position’s incumbent for additional information, or focus on the data gap during a worksite job information interview. 2. Employee Worksite Job Information Interviews We can conduct a worksite job information interview with a representative incumbent of every requested job classification or for those we propose to change. The purpose of these interviews is to verify the data on the JAQ, obtain additional insight into the scope and complexity of the job duties, observe technical processes and working conditions, and to provide employees with an additional method of participation in the project. This process also ensures that we make all internal and external comparisons on the basis of actual job content and not merely job title. 3. FLSA Status Determination We will review the essential tasks and minimum qualifications of each of the City's job classifications and subject them to the Fair Labor Standards Act tests to determine their exempt or non-exempt status. 4. Position Classification Each of the City’s positions will be analyzed and evaluated to determine their primary characteristics, including: - Is there a current City occupational job group comprised of job classes with essential functions similar to the subject position; if so: - To which of the group’s job classes, and at what level, are the subject position’s essential functions similar to the subject position, and if so: - Are they sufficiently comparable (+/- 20% guideline) to be allocated to that job class, utilize the same job title, require the same minimum qualifications, and be assigned to the same salary range. - If the City does not currently have a sufficiently comparable job class, what should be the subject position’s occupational job class and title, and: - What should the recommended occupational classification action be, No Change (N), Title Change (T), Merge With Other Job Class (M), New Job Class (J). - We may find that a job class is overly broad and encompasses several job activities which are regarded with significant salary difference in the marketplace. In such an instance, we will recommend "splitting" the job class into the current job class and a new job class which encompasses the different job activities. RPVCA PUBLIC SECTOR PERSONNEL CONSULTANTS 6/21 4 B-8 5. Updated Classification Specifications We can prepare an updated class specification in the City’s standard or other selected format for each occupational job class. Focus will be on the Essentia l Functions and Minimum Qualifications. The specifications or descriptions may include (not limited to) the following components: Job Title – Definition Education, Training and Experience Physical Requirements Distinguishing Characteristics Licenses and Certifications Non-Essential Functions Essential Functions FLSA Exempt/Non-Exempt Status Mental Requirements Desired Knowledge and Skills Supervision Exercise/Received Working Conditions 6. Draft Classification Plan Review with Human Resources and Department Heads We will conduct a review of our initial position classification recommendations and draft job descriptions with the City’s Project Team and respective department heads to identify possible errors, obtain feedback, and solicit suggestions for clarification. E. COMPENSATION SURVEY AND ANALYSIS 1. City Involvement in Compensation Plan Development We will obtain policy direction from the City Council, Human Resources staff, and/or City Officials on the following key components of the salary plan development process: - Comparator Employer Selection - Job Evaluation Method-Salary Plan Linkage - Benchmark Job Class Selection - Draft Compensation Plan Review / Critique - Compensation Competitiveness Policy - Total Compensation Points for Analysis - Salary Structure Selection - Project Implementation Plan 2. Comprehensive Compensation Survey (including review of market comparators) We do not subscribe to or recommend the use of databases or data warehouses used or hosted by other firms! We will collect the complete pay plans fr om each of the City’s comparators and build a custom survey database to ensure accuracy and completeness, unique to the City’s job classifications . a. Data Collection Protocol will be developed in consultation with the City’s project leaders to determine which salary data elements to include, such as: Base Salary Information - Salary grade/step or open range salary plan structure - Salary range structure Minimum, Midpoint, and Maximum - Method of salary administration – longevity, performance, or skill Additional Compensation Information (to be finalized with Staff) - City-supported benefits such as health insurance, pension contributions - Supplemental pay items for special qualifications/certifications - Individual or group incentive plans, bonus, awards, stipends - Any additional add-pay or benefits items at City’s direction RPVCA PUBLIC SECTOR PERSONNEL CONSULTANTS 6/21 5 B-9 b. Benchmark Job Selection will be made by identifying City job classes common to its employment- competitive public and private employers in the immediate area and throughout the region or State, clearly identifiable, and representative of standard occupational job groups. c. Comparator Employers Identification will focus on full service cities in Orange County over 100,000 resident population and/or similarly situated beach cities. d. Compensation Data Collection will be made by one or more of the following methods. - Pre-survey contact with the selected comparator employers to solicit participation in the City’s compensation survey(s) - Extraction from the pay plans of designated public employers. - Customized salary and total compensation and benefits survey requests for local governments and other public employers, distributed by mail, fax, and e-mail. - As desired, additional data extraction from established salary surveys and commercial survey sources such as Watson Wyatt, ERI, etc. e. Data Quality Control includes editing data for accuracy and proper matching to the City’s survey benchmark jobs, and phone/fax/E-mail follow-ups for data clarification and to obtain comparators’ benchmark job descriptions. 3. Prevailing Rates Calculation We will consolidate the compensation data from all sources, enter the information into the EZ COMP™ program, and compute the prevailing rates, inclusive of cost of living differentials, as the statistical mean of the survey data for each benchmark job class. Data will be projected forward from the date of collection to a common date relating to the City’s salary plan year by the annual Prevailing Rate Increase Factor (PRI) applicable at that time. 4. Compensation Competitiveness Comparison We will provide the City with charts comparing its current salary structures to those of the selected public and private comparator employers. We will calculate the extent that the City’s offerings vary from the prevailing rates and practices of other relevant employers. RPVCA PUBLIC SECTOR PERSONNEL CONSULTANTS 6/21 6 B-10 F. COMPENSATION PLAN DEVELOPMENT 1. Compensation Competitiveness Policy We will assist the City to select a compensation competitiveness policy which best fits its compensation strategy and financial resources, by providing fiscal impact estimates at various percentage relationships to the prevailing rates. 2. Salary Plan Structure Development We will review the City’s current wage plans and 1) utilize the City’s current wage plan structures to identify internally equitable and externally competitive salary ranges for each City job class or 2) prepare alternative salary range structures and schedules for the City to select the best fit for its competitiveness strategy, with these optional criteria: - Method of administration, i.e.: measured job performance, longevity, or skill - Width of the salary ranges, grades, or broad bands, from Minimum to Maximum - Varying salary range widths for FLSA non-exempt or exempt positions - Open salary ranges for pay-for-performance or variable compensation plan - If steps within the salary ranges, number of steps, percentage separation - Number of salary ranges, grades, or broad bands in the salary schedule - Percentage of separation between salary ranges, grades or broad bands - Recognition for longevity, unique assignments, and special skill requirements - Remuneration for required special licenses, certifications and registrations - Linkage of performance evaluations to performance increase opportunities 3. Salary Range Assignment Development We will assign each job classification to a salary range in the City’s current or selected new salary structure on the basis of a combination of factors, including: - the prevailing rates for the benchmark job classes - its current relationship to similar or occupationally related job classes - the 15% guideline for salary range separation between sequential job classes - the 25% guideline for salary separation of a department head job class 4. Implementation Plan Development We will consult with the Human Resources and Project Team on a plan for transition to the recommended plan, including a timetable for the principal activities , employee communication, impact on budget processes, and estimates of required financial resources. RPVCA PUBLIC SECTOR PERSONNEL CONSULTANTS 6/21 7 B-11 G. ENSURING THE CITY’S SELF-SUFFICIENCY The City will be self-sufficient in all aspects of maintenance of the updated position classification and compensation plan through these services. 1. Procedure Manuals - PSPC Position Classification Procedure Guide - PSPC Salary Administration Procedure Guide - City of Rancho Palos Verdes EZ COMP™ Procedure Guide 2. Training Workshop – for City staff in position classification, job evaluation, compensation surveys, and compensation plan design and administration. 3. Electronic Class Specification Library – we can provide the City with all updated classification specifications in hard copy and electronic library format for internal maintenance. 4. EZ COMP™ – program and project files on one of the City’s computers, a custom user’s manual, and system training for key City and Human Resources staff. 5. Initial Year’s Implementation Warranty Support – we will analyze, evaluate, classify, and provide a salary range recommendation for any new or changed position or entire job classification, at no cost to the City for one year. H. EXTENSIVE EMPLOYEE INCLUSION AND COMMUNICATION Very important factors for successful implementation of new or upda ted classification and compensation plans are 1) extensive employee inclusion, and 2) extensive employee communication. City officials and employees will participate in one or more of the following activities: - Attending pre-project briefings and question and answer sessions - Completing a Position Analysis Questionnaire (JAQ) describing their position - Elaborating on their jobs in individual or group job information interviews - Requesting a second review of their position’s occupational job classification - Receiving information pamphlet/booklet describing the updated salary plan I. MINIMAL CITY SUPPORT REQUIRED We are completely self-sufficient in projects of this nature and do not require any substantive staf f support from the City other than payroll data, and arrangements for group and individual meetings and interviews. We appreciate, but do not require, any office space, telephone, clerical assis tance, computers, or office equipment. We will provide all data entry, data processing, duplicating, and related report preparation functions. RPVCA PUBLIC SECTOR PERSONNEL CONSULTANTS 6/21 8 B-12 J. REPORTS AND PRESENTATIONS 1. Draft and Final Report Preparation We will provide the City’s project leader(s) with a draft of our report for review and critique, including the classification plan, compensation market data, salar y comparison tables, fiscal estimates, salary range listings, and implementation procedures. We will incorporate their critique into the development of a final report summarizing the project’s findings, recommendations, and detailed description of the City’s updated position classification and compensation plans. 2. Final Report Presentations We will conduct a workshop or formal presentation of our final report and recommendations to the Human Resources staff, City Officials, and employees. 3. EZ COMP™ Program Installation We will install our EZ COMP™ program and project files on one of the Human Resources Department's computers and provide training to key staff in the maintenance and update of the classification and compensation plan. 4. Implementation Warranty To ensure effective implementation of the new plan, we will analyze, evaluate, and provide a salary range recommendation for any new or changed job class, at no cost to the City for one year. RPVCA PUBLIC SECTOR PERSONNEL CONSULTANTS 6/21 9 B-13 PROPOSAL TO CONDUCT A CLASSIFICATION AND COMPENSATION STUDY FOR THE CITY OF RANCHO PALOS VERDES TIME SCHEDULE COUNTY GOVERNMENTS SERVED BY OUR STAFF 1,000+ PUBLIC EMPLOYERS SERVED ________________________________________________ PUBLIC SECTOR PERSONNEL CONSULTANTS B-14 TASK NAME ELAPSED WEEKS: 1. PROJECT COMMUNICATION, QUALITY ASSURANCE, PROJECT STATUS REPORTS 2. REVIEW OF JAQ’S; INTERVIEWS; TITLING; ORGANIZATIONAL DATA COLLECTION CLASSIFICATION RECOMMENDATIONS 3. POSITION CLASSIFICATION/EVALUATION; HR STAFF QUALITY ASSURANCE REVIEW; DRAFT REVIEW WITH HR, DEPTS 4. PREPARATION OF UPDATED CLASS SPECIFICATIONS AND REVIEWS WITH DEPARTMENTS, FINALIZATION COMPENSATION SURVEY, BENCHMARK 5. SELECTION, DATA COLLECTION, COMPARABILITY ASSURANCE REVIEW 6. PREVAILING RATES COMPUTATION, MARKET COMPETITIVENESS ANALYSIS, DRAFT COMPENSATION METHODOLOGY 7. SALARY RANGE ASSIGNMENTS ON BASIS OF INTERNAL EQUITY AND EXTERNAL COMPETITIVENESS 8. SALARY RANGE TABLES, FISCAL IMPACT ESTIMATES, REVIEW OF DRAFT PLANS WITH CITY OFFICIALS, DESIGNEE(S) PREPARATION AND PRESENTATION OF 9. FINAL REPORT TO HR, COMMITTEES, EXECUTIVE TEAM, EMPLOYEES 10. EZ COMP INSTALLATION, STAFF TRAINING ONE YEAR OF CLASS/COMP PLAN IMPLEMENTATION ASSISTANCE 1 4 8 12 16 20+ * Progress reviews with the City * * * ESTIMATED PROJECT ELAPSED TIME CHART * RPVCA PUBLIC SECTOR PERSONNEL CONSULTANTS 6/21 10 B-15 PROPOSAL TO CONDUCT A CLASSIFICATION AND COMPENSATION STUDY FOR THE CITY OF RANCHO PALOS VERDES COST 1,000+ PUBLIC EMPLOYERS SERVED ________________________________________________ PUBLIC SECTOR PERSONNEL CONSULTANTS B-16 PROJECT RATES BY MAJOR TASK A. PROJECT COST ESTIMATE We estimate that the project's total cost, including all fees for professional services and reimbursement for out-of-pocket expenses, will not exceed the indicated amounts. Major Project Component s - Planning Meetings, Kick Off, Communication and JAQ Intro $ 2,000 - Job Information Interviews / Desk Audits (50) $ 6,000 - Position Classification, Job Titling Review $ 1,000 - Updated Class Specifications (50) $ 4,000 - Total Compensation Survey $ 25,000 - Pay Plan Modeling, Implementation Options and Costing $ 2,000 - Organizational and Staffing Review $ 3,000 - Reporting and Presentations $ 2,000 Total Not To Exceed: $ 45,000 B. FLEXIBLE WORK PLAN, NEGOTIABLE TOTAL COST, TERMS Our work plan is flexible and total project cost negotiable, and we will discuss, modify, add or delete, any work task to increase the project's responsiveness to the City’s needs and financial resources. We will provide the City with monthly invoices for the professional services provided and out-of-pocket expenses incurred during the month. We request that the City pay the invoices within thirty (30) days of their receipt. C. ESTIMATED TIMELINES We estimate that the project can be completed in 120 days; classification specifications often require an additional 90-120 days to complete. RPVCA PUBLIC SECTOR PERSONNEL CONSULTANTS 6/21 11 B-17 PROPOSAL TO CONDUCT A CLASSIFICATION AND COMPENSATION STUDY FOR THE CITY OF RANCHO PALOS VERDES EXPERIENCE OF OUR FIRM HISTORY AND FACTS ABOUT OUR FIRM CLIENT REFERENCES RECENT MUNICIPAL EMPLOYERS SERVED RECENT CALIFORNIA EMPLOYERS SERVED ________________________________________________ PUBLIC SECTOR PERSONNEL CONSULTANTS B-18 HISTORY AND FACTS ABOUT OUR FIRM • HISTORY OF OUR FIRM Public Sector Personnel Consultants (PSPC) originated in 1972 with the Public Sector Group of the international human resources consulting firm of Hay Associates. PSPC was established as an independent firm in 1982. We are a single-owner, debt-free subchapter-S corporation. • REGIONAL STAFF We have regional offices or affiliates in Los Angeles, CA, Sacramento, CA, Austin, TX, Dallas, TX, Chicago, IL, St. Paul, MN, and Phoenix (Mesa), AZ. • SPECIALIZED IN COMPENSATION SERVICES We are “super-specialists" in compensation, providing services in job analysis, position classification, job content evaluation, compensation, and directly related services. Over 98% of our classification and compensation studies have been successfully implemented by our clients. • SPECIALIZED IN PUBLIC SECTOR CLIENTS We provide services exclusively to public sector employers including municipalities, counties, utility districts, library districts, special districts, s tate governments, housing and redevelopment agencies, airport authorities, school districts, higher education, and tribal governments. • SPECIALIZED COMPENSATION STAFF Our staff is comprised of eight (8) full time and an additional five (5) part time senio r human resources professionals with very extensive experience as compensation managers and consultants for public employers. Our staff has more than 100 years of combined experience working for and consulting to public sector employers. • OVER 1,100 PUBLIC EMPLOYERS SERVED Our staff members have provided compensation, human resources, training and related consulting services to more than 1,100 public and 200 private employers throughout the U.S. • AMERICAN COMPENSATION ASSOCIATION PARTICIPATION (ACA) (NOW W ORLDATWORK) Our consultants are active members of ACA, including serving as instructors for the ACA certification courses. • SPECIALIZED COMPENSATION AND RELATED RESOURCES We utilize our EZ COMPTM salary survey and plan program, modified FES point-factor job evaluation system, AEPTM performance evaluation plan, and SNAPTM staffing needs analysis program. • FIRST YEAR IMPLEMENTATION WARRANTY We provide our clients with extensive implementation support during the first year, and we will analyze, evaluate, classify, and provide a sa lary range recommendation for any new or changed position or entire job class, at no additional cost. PUBLIC SECTOR PERSONNEL CONSULTANTS 12 B-19 REPRESENTATIVE PROJECT REFERENCES Following is a listing of agencies which are representative of more than 1,1 00 employers, for whom members of our firm have services similar to those requested by the City. SAN JUAN CAPISTRANO, CITY OF, CA Mr. Sam Penrod, HR / Risk Manager 32400 Paseo Adelanto San Juan Capistrano, CA 92675 (949) 234-4565 SPenrod@sanjuancapistrano.org Classification and FY 2017 Compensation Study SALINAS, CITY OF, CA Mr. Jim Pia, Assistant City Manager 200 Lincoln Avenue Salinas, CA 93901 (831) 758-7201 jimp@ci.salinas.ca.us FY 2018 Classification Study FY 2016 Total Compensation Study SCOTTSDALE, CITY OF, AZ Ms. Donna Brown, HR Director 9191 E. San Salvador Drive Scottsdale, AZ 85258 (480) 312-2615 DBrown@scottsdaleaz.gov FY 2022 Compensation Study Update FY 2018 Class and Compensation Study MONTEBELLO, CITY OF, CA Mr. Nicholas Razo, Director of HR 1600 W. Beverly Blvd Montebello, CA 90640 (323) 887-1377 NRazo@cityofmontebello.com FY 2021/22 Classification and Comp Study RPVCA PUBLIC SECTOR PERSONNEL CONSULTANTS 6/21 13 B-20 RECENT CALIFORNIA EMPLOYERS SERVED BY MEMBERS OF OUR STAFF Apple Valley, Town of Sacramento Housing Authority Bell Gardens, City of Salinas, City of Banning, City of San Bernardino Assoc’n of Governments Capitol Area Development Authority San Clemente, City of Colton, City of, CA San Juan Capistrano, City of Commerce, City of Santa Ana, City of (SEIU) Culver City, City of Santa Cruz Port District Indian Wells, City of South Gate, City of Inglewood, City of Upland, City of Monterey/Salinas Transit Vernon, City of Monterey, City of Victorville, City of Riverside, City of Westlake Village, City of California Active 2021: Thousand Oaks, Montebello, Huntington Beach ADDITIONAL RECENT MUNICIPAL EMPLOYERS SERVED BY OUR STAFF Addison, Town of, TX Grand Forks, City of, ND Rio Rancho, City of, NM Aliso Viejo, City of, CA Grapevine, City of, TX Rockwall, City of, TX Allen, City of, TX Haltom City, City of, TX Roswell, City of, NM Benbrook, City of, TX Highland Park, Town of, TX Rowlett, City of, TX Bothell, City of, WA Indian Wells, City of, CA Salinas, City of, CA Bozeman, City of, MT Kerrville, City of, TX San Clemente, City of, CA Carrollton, City of, TX Killeen, City of, TX San Juan Capistrano, City of, CA Casa Grande, City of, AZ Lamar, City of, CO Santa Ana, City of, CA Centralia, City of, WA Las Cruces, City of, NM Scottsdale, City of, AZ Culver City, City of, CA Lisle, Village of, IL Southgate, City of, CA Dallas, City of, TX Maricopa, City of, AZ Tomball, City of, TX Denton, City of, TX Minot, City of, ND Upland, City of, CA Edmonds, City of, WA Mountain Village, Town of, CO Vernon, City of, CA El Paso, City of, TX Oak Brook, Village of, IL Victorville, City of, CA Fairview, Town of, TX Odessa, City of, TX Westlake Village, CA Fort Worth, City of, TX Pearland, City of, TX Winslow, City of, AZ Frisco, City of, TX Plano, City of, TX Woodlands Township, TX Georgetown, City of, TX Prosper, Town of, TX University Park, City of, TX PUBLIC SECTOR PERSONNEL CONSULTANTS 14 B-21 PROPOSAL TO CONDUCT A CLASSIFICATION AND COMPENSATION STUDY FOR THE CITY OF RANCHO PALOS VERDES PROJECT TEAM EXPERIENCE PROJECT TEAM ORGANIZATION CHART RESUMES OF PROJECT TEAM MEMBERS ________________________________________________ PUBLIC SECTOR PERSONNEL CONSULTANTS B-22 Human Resources Department City Management Team PSPC PROJECT DIRECTOR Matthew Weatherly DEPARTMENT DIRECTORS Quality Control Client Communication Project Management Implementation Support CITY EMPLOYEES PROJECT TEAM ORGANIZATION CHART COUNCIL PROJECT STAFF COMPENSATION PLAN IMPLEMENTATION PLAN L. Talamonti, CCP M. Weatherly B. Longmire, PMP K. Tilzer, SPHR M. Weatherly B. Longmire, PMP L. Talamonti, CCP K. Tilzer, SPHR S. Heinz, PHR, MPA COMPENSATION SURVEY SURVEY ANALYSIS POSITION CLASSIFICATION REVIEW AND DESIGN Review Job Analysis Questionnaires Desk Audits / Interviews Updated Class Specifications Job Analysis and Position Classification Implementation Support Competitiveness Strategy Salary Range Assignments Fiscal Impact Analysis Scenarios EZ COMP Installation Staff Training Implementation Support Market Definition Benchmark Definitions Data Collection & Validation Statistical Reports Market Comparison Implementation Support CITY OF RANCHO PALOS VERDES CLASSIFICATION AND COMPENSATION STUDY MATTHEW E. WEATHERLY, PRESIDENT, PROJECT LEADER Mr. Weatherly has over 20 years of experience as a human resources management professional and consultant, specializing in position classification, compensation, recruitment and selection. He has served as a Human Resources Manager with Employee Solutions, Inc. and Staffing Consultant with Initial Staffing Services. He has completed projects in staff development, rec ruitment, selection, job descriptions, salary survey, and salary plan development. Among his current and recently completed consulting projects are those for: Banning, City of, CA Monterey, City of, CA Salinas, City of, CA Big Bear Lake, City of, CA North County Fire, CA San Clemente, City of, CA Commerce, City of, CA Redwood City, City of CA Scottsdale, City of, AZ Inglewood, City of, CA Rialto, City of, CA Westlake Village, City of, CA Mr. Weatherly holds a BS degree in Human Resources Management from Arizona State University’s WP Carey School of Business. He has been a featured speaker at regional City Manager and HR meetings throughout the US. RPVCA PUBLIC SECTOR PERSONNEL CONSULTANTS 6/21 15 B-23 ELIZABETH J. LOCURTO, CCP, VICE PRESIDENT Ms. LoCurto has over 30 years of experience as a compensation manager and consultant for public and private employers, specializing in job analysis, salary surveys, and salary plan development. She has se rved as Compensation Research Associate for Hayes/Hill, Inc ., Senior Compensation Analyst for AON Corporation, Compensation Manager for Loyola Univers ity, and Project Manager for the American Compensation Association. She has conducted projects in job audits, job descriptions, salary surveys, compensation databas e management, compensation plan development, compensation training course development, and compensation trend research. Among her consulting projects are: Apple Valley, Town of, CA Highland, City of, CA Sacramento, City of, CA California Family Health Council Midland, City of, TX Seaside, City of, CA El Paso, City of, TX Oakland, City of, CA State Bar of Texas Fresno, City of, CA Pomona, City of, CA Stockton, City of, CA Ms. LoCurto holds a BS degree in Business Administration from Arizona State Univ ersity. She holds the Certified Compensation Professional (CCP) designation from the American Compensation Association. KATHERINE TILZER, SPHR, VICE PRESIDENT Ms. Tilzer has more than 25 years of experience as a human resources manager and consultant, specializing in employee relations, compensation, and recruitment. She has served as Personn el Manager for Laboratory Corporation of America, Director of Human Resources for Plaza Healthcare, Inc., and Director of Human Resources for American Baptist Homes. Agoura Hills, City of, CA Indian Wells, City of, CA Sacramento City Schools, CA Azusa, City of, CA Lake Havasu City, AZ San Bernardino Assn of Govt’s, CA Castro Valley Sanitary Dist., CA Monterey Transit Dist., CA Victorville, City of, CA Culver City, City of, CA Pacific Grove, City of Water Facilities Authority, CA She holds a BS degree in Management from the University of Phoenix, and certification as Senior Professional in Human Resources from the Society for Human Resources Management. BOB LONGMIRE, PMP, PROJECT LEADER Mr. Longmire has more than 15 years of project management experience and consult ing for public employers, specializing in employee development, classification, and compensation. He has served as National Sales Director for Connexion Technologies and Brand Marketing Manager for Plink. He has completed projects in job analysis, position classification, compensation surveys and plan development. Among his consulting projects are those for: Bell Gardens, City of, CA Plano, City of, TX Pitkin County, CO Colton, City of, CA Salinas, City of CA San Bernardino, City of, CA LaVerne, City of, CA Greater Orlando Airport, FL Santa Ana, City of, CA Monterey, City of, CA King County Library Systems, WA Sarasota-Bradenton Airport, FL Mr. Longmire holds a BS degree in Administration from Colorado Christian University and designation as Project Management Professional from the Project Management Institute. RPVCA PUBLIC SECTOR PERSONNEL CONSULTANTS 6/21 16 B-24 SAMUEL HEINZ, MPA, PHR Mr. Heinz has conducted projects in job analysis, position classification, job evaluation, compensation surveys, and compensation plan development. Among his recent client projects are thos e for: Addison, Town of, TX DeSoto, City of, TX Prosper, Town of, TX Apache Junction, City of, AZ Galveston, City of, TX Teton County, WY Bismarck, City of, ND Midland, City of, TX The Colony, City of, TX Carrollton, City of, TX Odessa, City of, TX Williston, City of, ND Mr. Heinz holds a MA degree in Public Administration from Texas Tech. PUBLIC SECTOR PERSONNEL CONSULTANTS proposes to utilize only full time members of our firm to complete all of the project tasks and objectives. In or der to maintain complete control of the project tasks and deadlines, we will not utilize subcontractors for the completion of the project. RPVCA PUBLIC SECTOR PERSONNEL CONSULTANTS 6/21 17 B-25 PROPOSAL TO CONDUCT A CLASSIFICATION AND COMPENSATION STUDY FOR THE CITY OF RANCHO PALOS VERDES OTHER INFORMATION PSPC BROCHURE – COMMUNICATING THE PROJECT PSPC BROCHURE – EZ COMPTM APPLICATION 1,000+ PUBLIC EMPLOYERS SERVED ________________________________________________ PUBLIC SECTOR PERSONNEL CONSULTANTS B-26 B-27 B-28 B-29 B-30 B-31 B-32 B-33 B-34 B-35 B-36 B-37 B-38 B-39 B-40 B-41 CITY COUNCIL MEETING DATE: 05/18/2021 AGENDA REPORT AGENDA HEADING: Regular Business AGENDA TITLE: Consideration and possible action to initiate the process to conduct a comprehensive classification and compensation study and an organizational review for all full-time and part-time personnel. RECOMMENDED COUNCIL ACTION: (1) Authorize Staff to issue a request for proposals (RFP) to seek consultants to conduct a comprehensive classification and compensation study for all full-time and part-time personnel and an organizational review. FISCAL IMPACT: Amount Budgeted: None Additional Appropriation: None Account Number(s): Various ORIGINATED BY: Vonetta Augustine, Human Resources Analyst VA REVIEWED BY: Julie DeZiel, Human Resources Manager Karina Bañales, Deputy City Manager APPROVED BY: Ara Mihranian, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Draft Request for Proposal for a Classification and Compensation Study (page A-1) B. March 3, 2015, Final Classification & Compensation Study Staff Report C. Resolution No. 2020-63 (page C-1) D. Resolution No. 2002-56 (page D-1) BACKGROUND: On March 3, 2015, the City Council authorized Koff and Associates to conduct a classification and compensation study (Attachment B). Discussions of conducting a classification and compensation study began in early 2014, as it had been over 20 years since the City reviewed its workforce roles, responsibilities, and compensation. The study was presented in two parts. The first part of the study discussed full-time and part-time positions and classifications. Positions are defined as work performed by one person, such as Deputy City Clerk, Human Resources Manager, or Information C-1 Technology Manager. Classifications include work performed by one or more positions and are assigned in a class throughout the organization, which means the work they perform is similar in scope of work, level of work, duties, and responsibilities irrespective of the department in the organization. A good example of classification includes Administrative Analyst, Senior Administrative Analyst, or Administrative Assistant. These positions can be found in various departments within the organization. The second part of the study addressed compensation. The compensation study identified appropriate compensation for the level and scope of work performed by staff, internal equity, and ensuring that the City’s workforce maintains a competitive edge by recruiting and retaining qualified employees. In 2015, Koff and Associates studied organizations that were similar in organizational structure and size. These agencies , which were determined by the then-City Council, included Agoura Hills, Calabasas, Cypress, Dana Point, Hermosa Beach, Lawndale, Malibu, Redondo Beach, Rolling Hills Estates, and San Juan Capistrano. Just before the study was finalized, the City Council was presented a draft report. The City Council discovered that Koff and Associates’ methodology for comparing the City’s retirement benefit included the City’s Tier 2 retirement benefit level of 2% at 60. The City Council believed it might have under-reported the City’s benefits. As a result, the City Council requested that Koff and Associates provide an additional analysis utilizing the City’s Tier 1 retirement benefit level of 2.5% at 55. This portion was added to the second part of the study. The 2015 Koff & Associates classification and compensation analysis concluded that the City's compensation levels were aligned with the City’s compensation structure, with only a few classifications requiring adjustments. Six years later, community and organizational needs have shifted. The demand for public service has increased, requiring the organization to do more with less and causing shifts to the organization’s current structure. The organizational structure has expanded vertically and horizontally. Most notably, the organization has lost vital institutional knowledge due to retirements or employees leaving for other organizations. The organization has also encountered difficulty in attracting individuals with specific expertise and skillsets. Moreover, with the implementation of Senate Bill No. 3, the rise in the state’s minimum wage from $10 per hour to $15 per hour occurring incrementally over a six-year period beginning January 1, 2017 has created internal compression and equity issues. It is imperative the compression issue be addressed quickly, as the Recreation Leader I pay range will be negatively impacted as it is below the $15 per hour increment effective January 1, 2022. Lastly, the Human Resources Division has notified management staff that not all the recommended changes from the 2015 study have been implemented. This item was previously on the April 6, 2021 City Council agenda but was continued without discussion to a date uncertain. Staff is presenting essentially the same staff report with some modifications reflecting updated information. C-2 DISCUSSION: It is a recommended practice, as an industry standard, to periodically review and update personnel classifications and adjust compensation levels, as necessary. As a general rule, most organizations conduct comprehensive classification and compensation studies every five to seven years, ensuring their ability to hire and retain qualified employees and maintain equitable internal relationships. To ensure the City complies with state and federal laws, Staff recommends the City Council initiate the process to conduct a comprehensive classification and compensation study and include a review of the City’s current organizational structure for efficiency and effectiveness, as discussed in further detail below. Request for Proposals Staff seeks to hire a consultant to conduct the City’s comprehensive classification and compensation study. To hire a consultant, Staff intends to issue an RFP seeking qualifications in the following areas and as described in greater detail in the attached draft RFP (Attachment A): • The consultant has advanced knowledge of the laws and practices relating to employee classification and compensation within a municipal government setting. • The consultant has a demonstrated track record of success in handling all aspects of employee classification and compensation and at least five years of experience providing these services to public entities in the State of California. • The consultant can provide five references, preferably from governmental agencies, for relevant work performed in the past five years. When possible, include references from cities of a similar size and characteristics to the City of Rancho Palos Verdes. • The consultant can demonstrate an understanding of the assignment and knowledge of the skills necessary to serve in the role of the classification and compensation consultant and review the organizational structure. As part of the RFP process, consultants will be asked to provide a list of their suggested comparable cities that would be considered by the City Council at a future public meeting. Based on the results of the RFP, Staff will come back to the City Council with a professional services agreement with the desired consulting firm for its consideration. At that time, which is anticipated to occur in June 2021, the City Council would establish the breadth and scope of the study. Classification and Compensation Study If the City Council enters into a professional services agreement with a consultant, the preparation of the classification and compensation study will include updating the classification plan to ensure all duties and responsibilities are aligned with industry C-3 standards for all classifications identified in Resolution No. 2020-63 (adopted by the City Council on November 17, 2020), the Salary and Hourly Schedule for Competitive, Confidential, Management, and Part-Time positions (Attachment C). The consultant would conduct a comprehensive classification and compensation study addressing the following based on the comparable cities agreed upon by the City Council: • Level and scope of work performed; • Compensation that is fair and competitive, allowing the City to recruit and retain high-quality employees; • Review of class descriptions to reflect current programs, responsibilities, and technology to ensure that internal relationships of salaries are based upon objective, non-quantitative evaluation factors, resulting in equity across all City departments; • Analysis and comparison of performance pay merit systems; • Identifying job classifications eligible for telework; and • Review of the current classification structure to determine efficacy. The periodic review also enables an organization to account for changes in job responsibilities and qualifications due to technology, modifications in work processes, and other factors that can affect the “core content” of positions. Changes in job requirements, such as new programs or assumption of duties for a vacated position, may result in a new pay grade assignment. A classification and compensation study also provides an objective framework for determining how employees will be paid. To properly maintain internal equity among positions, this ongoing process is needed to review job responsibilities and qualifications and the subsequent assignment to pay grades to ensure jobs are equitably compensated. Lastly, the classification and compensation study will align with Resolution No. 2002-56 establishing salary ranges for all competitive and management employee positions at the 75th percentile of reported data for the cities surveyed (Attachment D). This resolution also identifies the City adjusting its salary ranges based on the March Consumer Price Index (CPI) to maintain its desired market position. Keeping this in mind, the City needs to ensure that the consultant considers this component when reviewing salary ranges. Organizational Review In addition to the comprehensive classification and compensation study, the consultant will also be asked to review the organizational structure based on efficiency and effectiveness. This will be achieved by reviewing the City’s current vertical and horizontal organizational structure to ensure appropriate reporting hierarchy relationships exist, span of control, and staffing levels. In addition, it provides C-4 information on operational requirements, infrastructure, services, and ratios of staffing to population served and other productivity measures. ADDITIONAL INFORMATION: Timeline If initiated this evening, Staff intends to publish the RFP by Friday, May 21. Proposals will be due no later than Monday, June 21. Staff will review proposals and conduct interviews between June 21 and July 9, with the intent to present a professional services agreement for the City Council’s consideration at the July 20 meeting. It is anticipated that the study will take five to six months to complete. Based on this timeline, the information provided in the study may be considered as part of the FY 2022-23 budget discussions. RPV Employee Association (RPVEA) The RPVEA has been informed that Staff is recommending the City Council consider initiating the process to conduct a classification and compensation study and organizational review. Upon completion of the study, Staff will meet and confer with the City’s Employee Association to review and revise any classification and/or compensation changes. CONCLUSION: The classification and compensation study keeps the organization current with present - day trends; ensures competitiveness; makes the City competitive for recruitment and retention purposes; and provides organizational direction prior to seeking Council adoption. Staff therefore recommends the City Council authorize Staff to issue an RFP for a comprehensive classification and compensation study, including an organizational structure review. ALTERNATIVES: In addition to the Staff recommendation, the following alternative actions are available for the City Council’s consideration: 1. Direct Staff to explore other options. 2. Direct Staff not to proceed with a comprehensive classification and compensation study or organizational review, or any combination thereof. 3. Take other action, as deemed appropriate. C-5 City of Rancho Palos Verdes Request for Proposals Classification and Compensation Study and Organizational Review Human Resources Department Attention: Julie DeZiel, Human Resources Manager 30940 Hawthorne Blvd, Rancho Palos Verdes, CA 90275 Phone: (310) 544-5331| Email: jdeziel@rpvca.gov RFP Release Date: May 21, 2021 Request for Clarification Deadline: June 11, 2021 RFP Submittal Deadline: June 21, 2021 C-6 Classification and Compensation Study and Organizational Review The City of Rancho Palos Verdes is requesting proposals from qualified consulting firms to conduct a classification and compensation study and organizational review. All correspondence and questions regarding this RFP should be submitted via email to: Julie DeZiel, Human Resources Manager Email: jdeziel@rpvca.gov To be considered for this project, submit an electronic copy of the proposal to the above email address by 4:30 p.m. on Monday, June 21, 2021. C-7 TABLE OF CONTENTS I. Introduction Page 4 II. Project Objective Page 4 III. Project Description and Background Page 5 IV. Scope of Services Page 6 V. Preliminary Project Schedule Page 8 VI. Necessary Qualifications and Submittal Requirements Page 9 VII. Submission of Proposal Page 11 VIII. Evaluation and Selection Process Page 11 IX. Attachments (forthcoming) C-8 I. INTRODUCTION The City of Rancho Palos Verdes (City) is a scenic, upscale, residential coastal community, with a population of approximately 42,000, located on the Palos Verdes Peninsula of southwestern Los Angeles County. The City is a contract city, meaning that some services are provided by contract with agencies (both public and private) and some services are delivered by the City’s own employees. The City of Rancho Palos Verdes is a General Law City and has operated under the Council-Manager form of government since its incorporation in 1973. Policy-making and legislative authority are vested in the governing City Council, which consists of five Council Members, including the Mayor and Mayor Pro Tem. The City is fiscally sound and functions on an annual budget cycle. The City of Rancho Palos Verdes has 150 full-time and part-time employees. For FY 2020-21, a total of 68 positions were funded out of the 74 full-time positions. Their departments include the Administration Department, Finance Department, Community Development Department, Public Works Department and a Recreation and Parks Department. Presently there is one bargaining unit that incorporates all employees minus the management and part-time staff. The purpose of this document is to provide proposers with the information needed to submit a proposal for review by the City and, if selected, enter into a Professional Services Agreement with the City. II. PROJECT OBJECTIVE To hire a consultant to conduct a comprehensive classification and compensation study to ensure its ability to hire and retain qualified employees, maintain equitable internal relationships among employees, complies with state and federal laws, and review the City’s current organizational structure for efficiency and effectiveness. III. PROJECT DESCRIPTION AND BACKGROUND The City had a comprehensive classification and compensation conducted and approved by City Council in 2015 and the City's classification plan requires periodic updates. The consultant will review current class specifications and ensure they are in line with current changes and requirements in the law, identify class specifications that need to be updated to reflect current job duties and requirements of the position and include physical requirements and essential job functions to comply the American with Disabilities Act (ADA). C-9 Over the past few years, the City has realigned several positions, resulting in a slight reorganization of several departments. The consultant will review the current City’s organizational structure and provide recommendations to ensure it is efficient and effective. IV. SCOPE OF SERVICES & SCOPE OF WORK The City is accepting proposals to review the organizations classification and compensation plans, as described below: Classification Study - shall consist of the following: 1. Update the classification plan for approximately 50 classifications representing approximately 68 full-time and 63 part-time employees as of June 2020. 2. Develop a classification structure that reflects the City's overall classification and compensation strategy and includes the clear definition of terms and the development of career ladders for full-time and part-time employees. 3. Review the background materials including existing classifications, organizational charts, budgets, salary resolutions and schedules, personnel rules and related information. 4. Conduct orientation and briefing session(s) with employees. 5. Conduct orientation and briefing session(s) with all department heads, managers, and supervisors. 6. Develop a comprehensive questionnaire to be completed by all employees. 7. Conduct interviews with all employees in single position classification s, a representative sample of employees in multiple position classifications, and appropriate management personnel to validate the information. 8. Allocate all employees included within the scope of the study to an appropriate job title, job classification and exempt and non-exempt designation pursuant to the Fair Labor Standards Act (FLSA). 9. Develop new classification specifications to reflect current duties, requirements of the position, including physical requirements and essential job functions. 10. Develop classification specifications to include the following items: a. A definition of the job classification. b. A complete description of the essential job functions; c. Requirements of education, experience, knowledge, skills and abilities; d. Supervision exercised and received with definition of lead or supervisory roles; e. Working environment and/or conditions; C-10 f. Licenses, certifications, driving requirements and physical requirements in compliance with the American with Disabilities Act (ADA); and 11. Coordinate the varying presentation styles of the project team to ensure a unified philosophy and standardization across all the classifications. 12. Present the final classification and listing showing the recommended allocation of each position. 13. Include an introductory section that describes class concepts and provides information about distinctions of various levels within a class series and other pertinent information. 14. Provide appropriate implementation and maintenance manuals. 15. Conduct training sessions for designated staff. Compensation Study - shall consist of the following: 1. Identify a suggested list of comparable cities to consider in the compensation study. 2. Identify survey labor market and classifications that represent most closely to the City of Rancho Palos Verdes. This will include an explanation of the specific methodology (i.e., articulable factors) used to identify the survey agencies. 3. Conduct a comprehensive total compensation survey based on comparable survey agencies, using not only job titles, but duties and responsibilities based upon the classification specifications from the City of Rancho Palos Verdes. 4. Complete an internal base salary relationship analysis, including the development of appropriate internal relationship guidelines. 5. Develop external competitive and internal equitable salary recommendations for each classification included within the study. 6. Assign a salary range to each classification which reflects the results of the market survey and the analysis of the internal relationships. 7. Present draft results of the survey to management and bargaining unit in a group meeting. 8. Assist in the development of a strategy for implementing the compensation recommendations and plan. 9. Present the final Classification and Compensation Report to the City Council. Organizational Review - shall consist of the following: 1. Review the City’s current organizational structure, reporting relationships, span of control, and staffing levels; C-11 2. Review operational requirements, infrastructure, services, and ratios of staffing to population served and other productivity measures; and, 3. Determine and recommend best management practices and standard s. Consultant shall complete other tasks deemed necessary for the accomplishment of a complete and comprehensive outcome as described in the project objective. Consultant shall expand on the above-noted tasks, where appropriate, and provide suggestions which might lead to efficiencies and enhance the results or usefulness of the work. Deliverables As part of the Services, Consultant will prepare and deliver the following tangible work products to the City. 1. Submit an electronic copy of proposal in sufficient detail to allow for a thorough evaluation and comparative analysis. 2. Present an introduction of the proposal and your understanding of the assignment and significant steps, methods, and procedures to be employed by the proposer to ensure quality deliverables that can be delivered within the required time frames and your identified budget. 3. Briefly summarize the scope of work as the proposer pe rceives or envisions it for each area proposed. 4. Present concepts for conducting the work plan and interrelationship of all products. Define the scope of each task including the depth and scope of analysis or research proposed. City staff may request that check-sets or working versions of documents be submitted for ongoing routine review. City staff will review all deliverables, including preparatory or record materials for service deliverables, and provide comments. Consultant is required to revise draft deliverables to address City staffs’ comments. V. PRELIMINARY PROJECT SCHEDULE A. RFP Schedule The following is the anticipated schedule for the RFP process: Request for Proposal available May 21, 2021 Request for Clarification due June 11, 2021 Proposals due June 21, 2021 Firm Interviews (if necessary) July 2021 Anticipated Notice of Award July 2021 C-12 B. Anticipated Project Schedule Review Scope of Work with HR Staff August 2021 Finalize orientation, briefing and meetings with Staff September 2021 Present Draft report to HR Staff December 2021 Present Final report to City Council December 2021 Please note that this schedule is preliminary. It is included to provide the Consultant with a sense of the expected timeline for the Scope of Service and emphasize the urgent nature of the work and the City’s expectation that the Scope of Services will be completed as quickly as possible. The ideal Consultant candidate will have available resources and personnel, either in-house or under subcontract, to ensure the completion of the Scope of Services at the earliest possible time. VI. NECESSARY QUALIFICATIONS AND SUBMITTAL REQUIREMENTS 1. Only one proposal per firm will be considered. 2. The submittal should be as brief as possible while adequately describing the qualifications of the firm. The final submittal shall be sent as a PDF via email to Julie DeZiel, Human Resources Manager at jdeziel@rpvca.gov 3. The proposing firm shall submit the following information with the package, including the same information for subcontractors, in the following format: a) Cover Letter: Provide the name, address, and phone number of the firm; the present staff (size, classification, credentials); the primary contact’s name, phone number, and email address; any qualifying statements or comments regarding the proposal; and identification of any sub-consultants and their responsibilities. Identify the firm’s type of organization (individual, partnership, corporation), including names and contact information for all officers, and proof that the organization is currently in good standing. The signed letter should also include a paragraph stating that the firm is unaware of any conflict of interest in performing the proposed work. (No more than two pages) b) Approach to Scope of Services: Briefly summarize the scope of work as the proposer perceives or envisions it for each area proposed. Although an important aspect of consideration, the financial cost estimate will not be the sole justification for consideration. Negotiations may or may not be conducted with the proposer; therefore, the proposal submitted should contain the proposer's most favorable terms and conditions, since selection C-13 and award may be made without discussion with any firm. All prices should reflect "not to exceed" amounts per item. (No more than two pages) c) Organization and Staffing: Identify the person who will be the Project Manager and primary contact person responsible for the overall delivery of the project. Provide an organizational chart of the project team that clearly delineates communication and reporting relationships among the project staff and among the sub-consultants involved in the project. Identify key personnel to perform work in the various tasks and include major areas of subcontracted work. Indicate the expected contributions of each staff member in time as a percentage of the total effort. Specifically show the availability of staff to provide the necessary resource levels to meet the City’s needs. Indicate that the Project Manager and key staff will remain assigned to this project through completion of the Scope of Services. (No more than two pages) d) Staff Qualifications and Experience: Describe qualifications of the assigned staff and sub-contractors including relevant technical experience. Staff assigned to complete the Scope of Services must have p revious experience in providing the necessary services as described under the Scope of Services. A registered Professional Engineer must be the Project Manager. Description of Consultant’s experience should include: • Prior Experience: Demonstrate that the firm has significant experience providing services similar to those described under the Scope of Services. (No more than two page) • Staff Qualifications: Provide resumes for the Project Manager and any other key staff members to be assigned to contribute to the Scope of Services, with an emphasis on similar services which they provided to other agencies. (No more than ten pages) • Reference Projects: Include at least three projects with similar scope of services performed by the project team within the past three years and indicate the specific responsibilities of each team member on the reference project. Provide contact information for each client. (No more than ten pages) e) Project Schedule: Provide a detailed critical-path-method schedule for completion of the tasks and sub-tasks required to accomplish the scope of work. Note all deliverables and interim milestones on the schedule. (No more than one 11” x 17” page) C-14 f) Quality Control Plan: Describe the quality control procedures and associated staff responsibilities which will ensure that the deliverables will meet the City’s needs. (No more than one page) g) Acceptance of Conditions: State the offering firm’s acceptance of all conditions listed in the Request for Proposal (RFP) document and Sample Professional Services Agreement (Attachment D). Any exceptions or suggested changes to the RFP or Professional Services Agreement (PSA), including the suggested change, the reasons therefore and the impact it may have on cost or other considerations on the firm’s behalf must be stated in the proposal. Unless specifically noted by the firm, the City will rely on the proposal being in compliance with all aspects of the RFP and in agreement with all provisions of the PSA. (No more than one page) VII. Submission of Proposal A. Requests for Clarification Requests for clarification of the information contained herein shall be submitted in writing prior to 4:30 p.m. on Monday, June 21, 2021. Responses to any clarification question will be provided to each firm from which proposals have been requested. It is highly recommended that the prospective consultant firms visit the City to view the project location prior to submitting a request for clarification. B. Confirmation Email Upon submission of proposal to the City, the proposing firm shall request an email confirmation that the proposal was received and retain the email as a record. If an email confirmation is not received, the proposing firm shall correspond with the City until a confirmation is received. VIII. EVALUATIONS AND SELECTION PROCESS 1. Proposals Will be Evaluated Based on the Following Criteria: a) Approach to Scope of Services (25%) • Understanding of the Scope of Services as demonstrated by the thoroughness of the proposal, introduction of cost-saving or value-adding strategies or innovations (including those applying to overall project schedule), and an overall approach most likely to result in the desired outcome for the City. b) Proposal Schedule (20%) C-15 • Ability to complete the work in the shortest schedule possible (excluding time for review and community meetings). c) Staff Qualifications and Experience (30%) • Relevance of experience of the proposing firm (to provide support resources to the project team) • Relevance of experience and strength of qualifications of the Project Manager • Relevance of experience and strength of qualifications of the key personnel performing the work • Relevance of referenced projects and client review of performance d uring those projects d) Organization and Staffing (15%) • Availability of key staff to perform the services throughout the duration of the project • Assignment of appropriate staff in the right numbers to perform the Scope of Services • Appropriate communication and reporting relationships to meet the City’s needs e) Quality Control (10%) • Adequate immediate supervision and review of staff performing the work as well as appropriate independent peer review of the work by qualified technical staff not otherwise involved in the project. 2. Selection Process An evaluation panel will review all prop osals submitted and select the top proposals. These top firms may then be invited to make a (virtual) presentation to the evaluation panel, at no costs to the City. The panel will select the proposal, if any, which best fulfills the City’s requirements. The City reserves the right to negotiate special requirements and proposed service levels using the selected proposal as a basis. If the City is unable to negotiate an agreeable fee for services with top firm, the City will negotiate with the next firm chosen among the top firms. 3. Award Notification The City will notify all proposers in writing of the outcome of the selection process and intent to award. This RFP does not commit the City to award an agreement, nor pay any costs incurred in the preparation and submission of the proposal in anticipation of an agreement. The City reserves the right to reject any or all proposals, or any part thereof, to waive any formalities or informalities, and to award the agreement to the proposer deemed to be in the best interest of the City and the Department. C-16 4. Award of Agreement The selected firm shall be required to enter into a written agreement with the City, in a form approved by the City Attorney, to perform the Scope of Services. This RFP and the proposal, or any part thereof, may be incorporated into and made a part of the final agreement; however, the City reserves the right to further negotiate the terms and conditions of the agreement with the selected consultant. The agreement will, in any event, include a maximum "fixed cost" to the City. C-17 I I I RESOLUTION NO. 2020-63 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, AMENDING, RESTATING, AND SUPERSEDING RESOLUTION NO. 2020-31 SETTING THE SALARY AND HOURLY COMPENSATION SCHEDULE FOR ALL EMPLOYEES IN CITY SERVICE, BASED UPON A MIN I MUM WAGE INCREASE EFFECTIVE JANUARY 1, 2021 WHEREAS, the City Council adopted Resolution 2020-31 on June 2, 2020, that set the Salary and Hourly Compensation Schedule for Competitive, Confidential, Management, and Part-Time classifications; and WHEREAS, the City Council now desires to amend the City's Salary Schedule to reflect new salary ranges for part-time classifications based on a minimum wage increase effective January 1, 2021; and WHEREAS, Section 36506 .of the California Government Code requires that the City Council fix compensation of all appointive officers and employees by resolution or ordinance; and, WHEREAS, Rule V of the Personnel Rules of the City provides that in order to amend the City's Salary Schedule that changes must be made via Resolution; and, NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: Section 1: The salary and hourly ranges for City job classifications as set forth in Exhibit "A" which are attached hereto and incorporated herein by this reference, are adopted and are effective as of January 1, 2021. Section 2: Resolution No. 2020-31 is hereby amended, restated, and superseded and replaced by this resolution. PASSED, APPROVED and ADOPTED this 171h day of November 2020. Attest. ~,txp~y EJlili ~Clerk State of California ) County of Los Angeles ) ss C1ty of Rancho Palos Verdes ) I, Emily Colborn, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2020-63 was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on November 17, 2020. ~lio~c~~rY C-18 I I I Resolution No. 2020-63 Exhibit A Salary and Hourly Schedule for the Competitive, Confidential, Management and Part-time Positions (Effective January 1, 2021) COMPETITIVE POSITIONS Account Clerk Accountant Accounting Manager Accounting T echmaan Adm1n1strat1ve Analyst I Adm1mstrat1ve Analyst II Admm1strat1ve Analyst II (Records Management) Admm1strat1ve Staff Assistant Ass1stant Engmeer Assistant Planner Assoc1ate Eng1neer Assoc1ate Planner Bu1ldmg Inspector I Bu1ldmg Inspector II Cable TV Stat1on Manager Code Enforcement Officer Deputy C1ty Clerk Engmeenng T echn1aan Geographic Information Systems Coord1nator Lead Worker Mamtenance Supenntendent Maintenance superviSOr Maintenance Worker 1111 Open Space & Tra1ls Manager Park Ranger Perm1t Clerk Perm1t Techmaan Plannmg Techmaan Pnnapal Planner Project Manager Recreation Program Superv1sor I Recreation Program Supei'VIsor II Recreation Serv1ces Manager Seli1or Account Techmaan Semor Accountant Semor Admm1strat1ve Analyst Sen1or Code Enforcement Off1cer Semor Eng1neer Sen1or Information Techmaan Sen1or Park Ranger Semor Planner Staff AsSIStant I Staff ASSIStant II Traffic Engmeenng Techmc1an CONFIDENTIAL POSITIONS Accounting Superv1sor Execut1ve Ass1sta'nt Human Resources Analyst MANAGEMENT POSITIONS Assistant to the C1ty Manager Bu1ldmg Offiaal C1ty Clerk C1ty Manager • Deputy C1ty Manager Deputy D1rector of Commumty Development Deputy D1rector of Fmance Deputy Director of Public Works Deputy D1rector of Recreation & Parks D1rector of Commumty Development D1rector of Fmance Director of Parks & Recreat1on Director of Public Works Human Resources Manager lnformat1on Technology Manager OFFICIAL Annual Salary BOTTOM TO TOP 51,827 -- 75,789 -- 98,330 - 58,665 -- 67,074 -- 67,077 - 67,077 - 57,922 - 84,186 - 70,571 - 93,550 -- 80,192 - 68,058 -- 76,211 -- 80,192 -- 67,607 -- 68,423 - 64,173 - 84,170 -- 59,438 -- 98,014 -- 75,241 -- 51,654 -- 89,813 - 44,369 - 50,844 - 58,029 -- 60,400 -- 100,599 -- 93,550 -- 57,922 -- 73,406 -- 86,010 -- 65,705 -- 82,711 -- 86,893 -- 75,714 -- 104,775 -- 89,874 -- 50,436 -- 92,264 -- 44,369 - 50,436 -- 64,173 - 95,870 -- 68,347 - 67,070 -- 67,289 98,435 127,708 76,213 87,105 100,766 100,766 75,214 109,327 91,659 121,476 104,154 88,361 98,980 104,154 87,801 88,893 83,338 109,333 77,202 127,291 95,331 67,150 116,650 57,631 66,032 75,335 78,411 130,642 121.476 75,214 95,331 111,664 85,358 108,285 112,873 98,330 136,059 116,694 65,503 119,833 57,641 65,503 83,338 124,531 88,784 100,770 97,325 --126,382 97,008 -- 97,008 - 210,000 -- 118,024 - 103,609 - 103,609 - 103,609 -- 103,609 - 118,024 -- 118,024 -- 118,024 - 118,024 - 103,609 -- 97,008 -- 164,257 164,257 210,000 200,523 175,430 175,430 175,430 175,430 200,523 200,523 200,523 200,523 175,430 164,257 For illustration purposes Monthly Salary Hourly Salary BOTTOM TO TOP BOTTOM TO TOP 4,319 -- 6,316 - 8,194 -- 4,889 -- 5,590 -- 5,590 -- 5,590 -- 4,827 -- 7,016 - 5,881 7,796 -- 6,683 - 5,672 - 6,351 -- 6,683 -- 5,634 -- 5,702 -- 5,348 - 7,014 - 4,953 -- 8,168 -- 6,270 -- 4,305 -- 7,484 - 3,697 - 4,237 -- 4,836 - 5,033 -- 8,383 -- 7,796 -- 4,827 - 6,117 - 7,168 -- 5,475 -- 6,893 -- 7,241 6,310 -- 8,731 7,490 -- 4,203 -- 7,689 -- 3,697 -- 4,203 -- 5,348 -- 7,989 -- 5,696 -- 5,589 - 5,607 8,203 10,642 6,351 7,259 8,397 8,397 6,268 9,111 7,638 10,123 8,680 7,363 8,248 8,680 7,317 7,408 6,945 9,111 6,434 10,608 7,944 5,596 9,721 4,803 5,503 6,278 6,534 10,887 10,123 6,268 7,944 9,305 7,113 9,024 9,406 8,194 11,338 9,725 5,459 9,986 4,803 5,459 6,945 10,378 7,399 8,398 8,110 --10,532 8,084 -- 8,084 -- 17,500 -- 9,835 -- 8,634 -- 8,634 -- 8,634 -- 8,634 -- 9,835 -- 9,835 -- 9,835 -- 9,835 -- 8,634 -- 8,084 -- 13,688 13,688 17,500 16,710 14,619 14,619 14,619 14,619 16,710 16,710 16,710 16,710 14,619 13,688 24 92 --32 35 36 44 --47 32 47 27 -61 40 28 20 --36 64 3225 -4188 32 25 --48 45 32 25 --48 45 2785 -3616 40 47' --52 56 33 93 -44 07 44 98 --58 40 38 55 -50 07 32 72 --42 48 36 64 -47 59 38 55 --50 07 32 50 -42 21 3290 --4274 30 85 --40 07 40 47 --52 56 28 58 --37 12 47 12 --61 20 36 17 --45 83 24 83, --32 28 43 18 --56 08 21 33 -27 71 24 44 -31 75 27 90 --36 22 29 04 --37 70 48 36 --62 81 44 98 --58 40 27 85 --36 16 35 29 --45 83 4135 --5368 31 59 --41 04 39 76 -52 06 4178 -5427 36 40 -47 27 50 37 -65 41 4321 5610 24 25 --31 49 4436 --5761 21 33 --27 71 24 25 -31 49 30 85 --40 07 46 09 -59 87 32 86 --42 68 32 25 -48 45 Resolution No 2020-63 Exhibit A Page 1 of 3 C-19 PnnCJpal C1v11 Engmeer Resolution No. 2020-63 Exhibit A Salary and Hourly Schedule for the Competitive, Confidential, Management and Part-time Positions (Effective January 1, 2021} 97,008 --164,257 8,084 --13,688 ResolutiOn No 2020-63 Exh1b1t A Page 2 of 3 I I I C-20 I I I PART-TIME POSITIONS Resolution No. 2020-63 Exhibit A Salary and Hourly Schedule for the Competitive, Confidential, Management and Part-time Positions, (Effective January 1, 2021) OFFICIAL Hourly Rates BOTTOM TO TOP Administrative/Public Worl<s/Cable Intern 14 00 --32 08 Code Enforcement Officer 32 49 - Park Ranger 18 41 - Perm1t Clerk 23 36 -- Recreat1on Leader 14 00 -- Recreation Leader II 14 90 -- Recreation Speaaltst 18 41 - Staff Ass1stant I 21 84 - Staff ASSIStant II 24 85 - Telev1s1on Producer 17 75 -- Telev1s1on Producer (On-Camera) 20 07 - Monthly AUTO ALLOWANCE Amount C1ty Manager 700 Deputy C1ty Manager 150 Director of Commumty Development 150 D1rector of Ftnance 150 D1rector of Public Works 150 D1rector of Recreat1on & Parks 150 • C1ty Manager salary set by contract agreement adopted by the C1ty Council (contract amended February 19, 2020) 43 24 23 92 30 34 14 94 18 33 23 92 28 38 32 27 35 51 40 76 Resolutton No 2020-63 Exhtbtt A Page 3 of 3 C-21 RESOLUTION NO. 2002-56 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES ADOPTING SALARY AND HOURLY RANGES FOR ALL COMPETITIVE AND MANAGEMENT EMPLOYEE JOB CLASSIFICATIONS, RESCINDING RESOLUTION NO. 2001-44. WHEREAS, as part of the 1995-96 fiscal year budget, the City Council directed staff to conduct certain compensation studies measuring compensation data from both the public and private sectors; and, WHEREAS, the compensation studies indicated that most of the City's job classifications were below the market median; and, WHEREAS, on March 1, 1996, the City Council adopted Resolution No. 96-21 amending certain salary ranges for all full-time employees and establishing the merit pool compensation system; and, WHEREAS, the success of any plan in the public or private sector is dependent upon occasionally adjusting the salary ranges to be competitive with the marketplace; and, WHEREAS, on July 15, 1997, following the adopting of the FY 1997-98 City budget, the City Council adopted Resolution No. 97-69 which adjusted the salary and hourly ranges by two (2) percent; and, WHEREAS, on June 3, 1998, following the adopting of the FY 1998-99 City budget, the City Council adopted Resolution No. 98-48 which adjusted the salary and hourly ranges by one and a half (1.5) percent; and, WHEREAS, in late 1998, staff conducted a salary survey modeled after the 1995 study using the same survey pool of public agencies and, when possible, the same comparable positions. Based on the results of the updated survey, staff determined that the salary ranges for 16 positions required adjustment in order to be within 5% of the market median so that all City's salary ranges continue to be competitive with the marketplace; and, WHEREAS, with the adoption of the FY 99-00 City budget, the City Council directed that the salary ranges for 16 job classifications be modified based on the 1998 salary survey. Further, the City Council directed that all City's salary and hourly salary ranges be adjusted two (2) percent based on the Consumer Price Index, so that all City's salary ranges continue to be competitive with the marketplace; and WHEREAS, on June 1, 1999, following the adoption of the FY 1999-00 City budget, the City Council adopted Resolution No. 99-42, which modified the salary ranges for 16 job classifications based on the 1998 salary survey, adjusted the salary and hourly ranges by two (2) percent based on the Consumer Price Index and provided a monthly care allowance for certain job classifications; and, WHEREAS, on June 6, 2000, following the adoption of the FY 2000-01 City C-22 Budget, the City Council adopted Resolution No. 2000-34 which adjusted the salary and hourly ranges by three and four tenths (3.4) percent based on the Consumer Price Index; and, WHEREAS, with the adoption of the FY 01-02 City budget, the City Council directed that all City's salary and hourly salary ranges be adjusted three and six tenths (3.6) percent based on the Consumer Price Index for the preceding twelve month period, so that all City's salary ranges continue to be competitive with the marketplace; WHEREAS, on July 2, 2002, the City Council adopted Resolution No. 2002-, which established the salary and hourly ranges for selected classifications at the 75th percentile and by the Consumer Price Index of 2.8% for FY 02-03; and WHEREAS, the adoption of the new salary ranges will not automatically result in the adjustment of any employee salaries. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: Section 1: The salary and hourly ranges for City job classifications are adopted as outlined in the attached Exhibit "A." Section 2: Resolution No. 2001-44 is hereby rescinded. Section 3: A monthly car allowance for certain job classifications is adopted as outlined in the attached Exhibit "B." PASSED, APPROVED and ADOPTED this 2nd day of July 2002. ATTEST: jLt{!Jio~ STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss CITY OF RANCHO PALOS VERDES ) I, JO PURCELL, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2002-56 was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on Jul , 2002. Resolution No. 2002-56 Page 2 of 2 C-23 EXHIBIT "A" (75TH PERCENTILE) Monthly Salary Annual Salary POSITION BOTTOM TO TOP BOTTOM TO TOP Account Clerk 2,697 --3,502 32,362 --42,029 Account Technician 3,034 --3,940 36,409 --47,284 Accountant 3,919 --5,090 47,028 --61,076 Accounting Manager 5,085 --6,604 61,020 --79,246 Administrative Analyst 3,577 --4,646 42,924 -55,752 Administrative Analyst II 4,137 --5,373 49,650 --64,480 Administrative Staff Assistant (Secretary) 3,013 --3,913 36,152 --46,951 Assistant City Manager 6,203 --8,055 74,432 --96,665 Assistant Planner 3,692 --4,795 44,302 --57,535 Assistant to the City Manager 5,190 --6,740 62,278 --80,881 Associate Engineer 4,865 --6,318 58,379 --75,817 Associate Planner 4,195 --5,448 50,343 --65,381 City Clerk 5,286 --6,865 63,432 --82,380 Code Enforcement Officer 3,577 --4,646 42,925 --55,746 Deputy City Clerk 3,605 --4,682 43,257 --56,178 Deputy Director of PBCE 5,212 --6,769 62,549 --81,233 Deputy Director of Public Works 5,212 --6,769 62,549 --81,233 Director of Administrative Services 5,619 --7,298 67,431 --87,573 Director of Finance 6,203 --8,055 74,432 --96,665 Director of Planning, Bldg, & Code Enforcement 6,684 --8,680 80,207 --104,165 Director of Public Works 6,684 --8,680 80,207 --104,165 Director of Recreation and Parks 5,619 --7,298 67,431 --87,573 Engineering Technician 3,433 --4,458 41,196 --53,501 Executive Staff Assistant (Executive Secretary) 3,605 --4,682 43,257 --56,178 Maintenance Superintendent 4,892 --6,353 58,702 --76,236 Maintenance Worker 2,256 --2,930 27,074 --35,162 Maintenance Worker II 2,564 --3,330 30,766 --39,956 Permit Clerk 2,640 --3,428 31,678 --41,141 Principal Planner 5,263 --6,834 63,151 --82,014 Recreation Program Supervisor II 3,770 --4,896 45,242 --58,756 Recreation Services Manager 4,426 --5,749 53,117 --68,983 Senior Code Enforcement Officer 4,006 --5,203 48,073 --62,432 Senior Engineer 5,449 --7,077 65,389 --84,921 Senior Planner 4,699 --6,102 56,384 --73,226 Senior Administrative Analyst 4,634 -6,018 55,606 --72,215 Staff Assistant I (Clerk Typist I) 2,323 --3,017 27,877 --36,204 Staff Assistant II (Clerk Typist II) 2,640 --3,428 31,678 --41,141 HOURLY RATES POSITION BOTIOMTOTOP Administrative/Cable/TV/Public Works Intern 12.01 --15.59 Crossing Guard 8.71 --11.31 Permit Clerk 15.23 --19.78 Recreation Leader 7.69 --9.99 Recreation Leader II 8.74 --11.35 Recreation Specialist 12.01 --15.59 Staff Assistant I 13.40 --17.40 Staff Assistant II 15.23 19.78 FY 2002-2003 Resolution 2002-56 C-24 EXHIBIT "B" POSITION Assistant City Manager Director of Administrative Services Director of Finance Director of Planning, Bldg, & Code Enforcement Director of Public Works Director of Recreation and Parks FY 2002-2003 MONTHLY CAR ALLOWANCE 150.00 150.00 150.00 150.00 150.00 150.00 Resolution 2002-56 C-25 Page 1 of 12 City of Rancho Palos Verdes RFP- Classification and Compensation Study and Organizational Review May 21, 2021 City of Rancho Palos Verdes Request for Proposals Classification and Compensation Study and Organizational Review Human Resources Department Attention: Julie DeZiel, Human Resources Manager 30940 Hawthorne Blvd, Rancho Palos Verdes, CA 90275 Phone: (310) 544-5331| Email: jdeziel@rpvca.gov RFP Release Date: May 21, 2021 Request for Clarification Deadline: June 11, 2021 RFP Submittal Deadline: June 21, 2021 D-1 Page 2 of 12 City of Rancho Palos Verdes RFP- Classification and Compensation Study and Organizational Review May 21, 2021 Classification and Compensation Study and Organizational Review The City of Rancho Palos Verdes is requesting proposals from qualified consulting firms to conduct a classification and compensation study and organizational review. All correspondence and questions regarding this RFP should be submitted via email to: Julie DeZiel, Human Resources Manager Email: jdeziel@rpvca.gov To be considered for this project, submit an electronic copy of the proposal to the above email address by 4:30 p.m. on Monday, June 21, 2021. D-2 Page 3 of 12 City of Rancho Palos Verdes RFP- Classification and Compensation Study and Organizational Review May 21, 2021 TABLE OF CONTENTS I. Introduction Page 4 II. Project Objective Page 4 III. Project Description and Background Page 5 IV. Scope of Services Page 6 V. Preliminary Project Schedule Page 8 VI. Necessary Qualifications and Submittal Requirements Page 9 VII. Submission of Proposal Page 11 VIII. Evaluation and Selection Process Page 11 IX. Attachments (forthcoming) D-3 Page 4 of 12 City of Rancho Palos Verdes RFP- Classification and Compensation Study and Organizational Review May 21, 2021 I. INTRODUCTION The City of Rancho Palos Verdes (City) is a scenic, upscale, residential coastal community, with a population of approximately 42,000, located on the Palos Verdes Peninsula of southwestern Los Angeles County. The City is a contract city, meaning that some services are provided by contract with agencies (both public and private) and some services are delivered by the City’s own employees. The City of Rancho Palos Verdes is a General Law City and has operated under the Council-Manager form of government since its incorporation in 1973. Policy-making and legislative authority are vested in the governing City Council, which consists of five Council Members, including the Mayor and Mayor Pro Tem. The City is fiscally sound and functions on an annual budget cycle. The City of Rancho Palos Verdes has 150 full-time and part-time employees. For FY 2020-21, a total of 68 positions were funded out of the 74 full-time positions. Their departments include the Administration Department, Finance Department, Community Development Department, Public Works Department and a Recreation and Parks Department. Presently there is one bargaining unit that incorporates all employees minus the management and part-time staff. The purpose of this document is to provide proposers with the information needed to submit a proposal for review by the City and, if selected, enter into a Professional Services Agreement with the City. II. PROJECT OBJECTIVE To hire a consultant to conduct a comprehensive classification and compensation study to ensure its ability to hire and retain qualified employees, maintain equitable internal relationships among employees, complies with state and federal laws, and review the City’s current organizational structure for efficiency and effectiveness. III. PROJECT DESCRIPTION AND BACKGROUND The City had a comprehensive classification and compensation conducted and approved by City Council in 2015 and the City's classification plan requires periodic updates. The consultant will review current class specifications and ensure they are in line with current changes and requirements in the law, identify class specifications that need to be updated to reflect current job duties and requirements of the position and include physical requirements and essential job functions to comply the American with Disabilities Act (ADA). D-4 Page 5 of 12 City of Rancho Palos Verdes RFP- Classification and Compensation Study and Organizational Review May 21, 2021 Over the past few years, the City has realigned several positions, resulting in a slight reorganization of several departments. The consultant will review the current City’s organizational structure and provide recommendations to ensure it is efficient and effective. IV. SCOPE OF SERVICES & SCOPE OF WORK The City is accepting proposals to review the organizations classification and compensation plans, as described below: Classification Study - shall consist of the following: 1. Update the classification plan for approximately 50 classifications representing approximately 68 full-time and 63 part-time employees as of June 2020. 2. Develop a classification structure that reflects the City's overall classification and compensation strategy and includes the clear definition of terms and the development of career ladders for full-time and part-time employees. 3. Review the background materials including existing classifications, organizational charts, budgets, salary resolutions and schedules, personnel rules and related information. 4. Conduct orientation and briefing session(s) with employees. 5. Conduct orientation and briefing session(s) with all department heads, managers, and supervisors. 6. Develop a comprehensive questionnaire to be completed by all employees. 7. Conduct interviews with all employees in single position classification s, a representative sample of employees in multiple position classifications, and appropriate management personnel to validate the information. 8. Allocate all employees included within the scope of the study to an appropriate job title, job classification and exempt and non-exempt designation pursuant to the Fair Labor Standards Act (FLSA). 9. Develop new classification specifications to reflect current duties, requirements of the position, including physical requirements and essential job functions. 10. Develop classification specifications to include the following items: a. A definition of the job classification. b. A complete description of the essential job functions; c. Requirements of education, experience, knowledge, skills and abilities; d. Supervision exercised and received with definition of lead or supervisory roles; e. Working environment and/or conditions; D-5 Page 6 of 12 City of Rancho Palos Verdes RFP- Classification and Compensation Study and Organizational Review May 21, 2021 f. Licenses, certifications, driving requirements and physical requirements in compliance with the American with Disabilities Act (ADA); and 11. Coordinate the varying presentation styles of the project team to ensure a unified philosophy and standardization across all the classifications. 12. Present the final classification and listing showing the recommended allocation of each position. 13. Include an introductory section that describes class concepts and provides information about distinctions of various levels within a class series and other pertinent information. 14. Provide appropriate implementation and maintenance manuals. 15. Conduct training sessions for designated staff. Compensation Study - shall consist of the following: 1. Identify a suggested list of comparable cities to consider in the compensation study. 2. Identify survey labor market and classifications that represent most closely to the City of Rancho Palos Verdes. This will include an explanation of the specific methodology (i.e., articulable factors) used to identify the survey agencies. 3. Conduct a comprehensive total compensation survey based on comparable survey agencies, using not only job titles, but duties and responsibilities based upon the classification specifications from the City of Rancho Palos Verdes. 4. Complete an internal base salary relationship analysis, including the development of appropriate internal relationship guidelines. 5. Develop external competitive and internal equitable salary recommendations for each classification included within the study. 6. Assign a salary range to each classification which reflects the results of the market survey and the analysis of the internal relationships. 7. Present draft results of the survey to management and bargaining unit in a group meeting. 8. Assist in the development of a strategy for implementing the compensation recommendations and plan. 9. Present the final Classification and Compensation Report to the City Council. Organizational Review - shall consist of the following: 1. Review the City’s current organizational structure, reporting relationships, span of control, and staffing levels; D-6 Page 7 of 12 City of Rancho Palos Verdes RFP- Classification and Compensation Study and Organizational Review May 21, 2021 2. Review operational requirements, infrastructure, services, and ratios of staffing to population served and other productivity measures; and, 3. Determine and recommend best management practices and standard s. Consultant shall complete other tasks deemed necessary for the accomplishment of a complete and comprehensive outcome as described in the project objective. Consultant shall expand on the above-noted tasks, where appropriate, and provide suggestions which might lead to efficiencies and enhance the results or usefulness of the work. Deliverables As part of the Services, Consultant will prepare and deliver the following tangible work products to the City. 1. Submit an electronic copy of proposal in sufficient detail to allow for a thorough evaluation and comparative analysis. 2. Present an introduction of the proposal and your understanding of the assignment and significant steps, methods, and procedures to be employed by the proposer to ensure quality deliverables that can be delivered within the required time frames and your identified budget. 3. Briefly summarize the scope of work as the proposer pe rceives or envisions it for each area proposed. 4. Present concepts for conducting the work plan and interrelationship of all products. Define the scope of each task including the depth and scope of analysis or research proposed. City staff may request that check-sets or working versions of documents be submitted for ongoing routine review. City staff will review all deliverables, including preparatory or record materials for service deliverables, and provide comments. Consultant is required to revise draft deliverables to address City staffs’ comments. V. PRELIMINARY PROJECT SCHEDULE A. RFP Schedule The following is the anticipated schedule for the RFP process: Request for Proposal available May 21, 2021 Request for Clarification due June 11, 2021 Proposals due June 21, 2021 Firm Interviews (if necessary) July 2021 Anticipated Notice of Award July 2021 D-7 Page 8 of 12 City of Rancho Palos Verdes RFP- Classification and Compensation Study and Organizational Review May 21, 2021 B. Anticipated Project Schedule Review Scope of Work with HR Staff August 2021 Finalize orientation, briefing and meetings with Staff September 2021 Present Draft report to HR Staff December 2021 Present Final report to City Council December 2021 Please note that this schedule is preliminary. It is included to provide the Consultant with a sense of the expected timeline for the Scope of Service and emphasize the urgent nature of the work and the City’s expectation that the Scope of Services will be completed as quickly as possible. The ideal Consultant candidate will have available resources and personnel, either in-house or under subcontract, to ensure the completion of the Scope of Services at the earliest possible time. VI. NECESSARY QUALIFICATIONS AND SUBMITTAL REQUIREMENTS 1. Only one proposal per firm will be considered. 2. The submittal should be as brief as possible while adequately describing the qualifications of the firm. The final submittal shall be sent as a PDF via email to Julie DeZiel, Human Resources Manager at jdeziel@rpvca.gov 3. The proposing firm shall submit the following information with the package, including the same information for subcontractors, in the following format: a) Cover Letter: Provide the name, address, and phone number of the firm; the present staff (size, classification, credentials); the primary contact’s name, phone number, and email address; any qualifying statements or comments regarding the proposal; and identification of any sub-consultants and their responsibilities. Identify the firm’s type of organization (individual, partnership, corporation), including names and contact information for all officers, and proof that the organization is currently in good standing. The signed letter should also include a paragraph stating that the firm is unaware of any conflict of interest in performing the proposed work. (No more than two pages) b) Approach to Scope of Services: Briefly summarize the scope of work as the proposer perceives or envisions it for each area proposed. Although an important aspect of consideration, the financial cost estimate will not be the sole justification for consideration. Negotiations may or may not be conducted with the proposer; therefore, the proposal submitted should contain the proposer's most favorable terms and conditions, since selection D-8 Page 9 of 12 City of Rancho Palos Verdes RFP- Classification and Compensation Study and Organizational Review May 21, 2021 and award may be made without discussion with any firm. All prices should reflect "not to exceed" amounts per item. (No more than two pages) c) Organization and Staffing: Identify the person who will be the Project Manager and primary contact person responsible for the overall delivery of the project. Provide an organizational chart of the project team that clearly delineates communication and reporting relationships among the project staff and among the sub-consultants involved in the project. Identify key personnel to perform work in the various tasks and include major areas of subcontracted work. Indicate the expected contributions of each staff member in time as a percentage of the total effort. Specifically show the availability of staff to provide the necessary resource levels to meet the City’s needs. Indicate that the Project Manager and key staff will remain assigned to this project through completion of the Scope of Services. (No more than two pages) d) Staff Qualifications and Experience: Describe qualifications of the assigned staff and sub-contractors including relevant technical experience. Staff assigned to complete the Scope of Services must have p revious experience in providing the necessary services as described under the Scope of Services. A registered Professional Engineer must be the Project Manager. Description of Consultant’s experience should include: • Prior Experience: Demonstrate that the firm has significant experience providing services similar to those described under the Scope of Services. (No more than two page) • Staff Qualifications: Provide resumes for the Project Manager and any other key staff members to be assigned to contribute to the Scope of Services, with an emphasis on similar services which they provided to other agencies. (No more than ten pages) • Reference Projects: Include at least three projects with similar scope of services performed by the project team within the past three years and indicate the specific responsibilities of each team member on the reference project. Provide contact information for each client. (No more than ten pages) e) Project Schedule: Provide a detailed critical-path-method schedule for completion of the tasks and sub-tasks required to accomplish the scope of work. Note all deliverables and interim milestones on the schedule. (No more than one 11” x 17” page) D-9 Page 10 of 12 City of Rancho Palos Verdes RFP- Classification and Compensation Study and Organizational Review May 21, 2021 f) Quality Control Plan: Describe the quality control procedures and associated staff responsibilities which will ensure that the deliverables will meet the City’s needs. (No more than one page) g) Acceptance of Conditions: State the offering firm’s acceptance of all conditions listed in the Request for Proposal (RFP) document and Sample Professional Services Agreement (Attachment D). Any exceptions or suggested changes to the RFP or Professional Services Agreement (PSA), including the suggested change, the reasons therefore and the impact it may have on cost or other considerations on the firm’s behalf must be stated in the proposal. Unless specifically noted by the firm, the City will rely on the proposal being in compliance with all aspects of the RFP and in agreement with all provisions of the PSA. (No more than one page) VII. Submission of Proposal A. Requests for Clarification Requests for clarification of the information contained herein shall be submitted in writing prior to 4:30 p.m. on Monday, June 21, 2021. Responses to any clarification question will be provided to each firm from which proposals have been requested. It is highly recommended that the prospective consultant firms visit the City to view the project location prior to submitting a request for clarification. B. Confirmation Email Upon submission of proposal to the City, the proposing firm shall request an email confirmation that the proposal was received and retain the email as a record. If an email confirmation is not received, the proposing firm shall correspond with the City until a confirmation is received. VIII. EVALUATIONS AND SELECTION PROCESS 1. Proposals Will be Evaluated Based on the Following Criteria: a) Approach to Scope of Services (25%) • Understanding of the Scope of Services as demonstrated by the thoroughness of the proposal, introduction of cost-saving or value-adding strategies or innovations (including those applying to overall project schedule), and an overall approach most likely to result in the desired outcome for the City. b) Proposal Schedule (20%) D-10 Page 11 of 12 City of Rancho Palos Verdes RFP- Classification and Compensation Study and Organizational Review May 21, 2021 • Ability to complete the work in the shortest schedule possible (excluding time for review and community meetings). c) Staff Qualifications and Experience (30%) • Relevance of experience of the proposing firm (to provide support resources to the project team) • Relevance of experience and strength of qualifications of the Project Manager • Relevance of experience and strength of qualifications of the key personnel performing the work • Relevance of referenced projects and client review of performance d uring those projects d) Organization and Staffing (15%) • Availability of key staff to perform the services throughout the duration of the project • Assignment of appropriate staff in the right numbers to perform the Scope of Services • Appropriate communication and reporting relationships to meet the City’s needs e) Quality Control (10%) • Adequate immediate supervision and review of staff performing the work as well as appropriate independent peer review of the work by qualified technical staff not otherwise involved in the project. 2. Selection Process An evaluation panel will review all prop osals submitted and select the top proposals. These top firms may then be invited to make a (virtual) presentation to the evaluation panel, at no costs to the City. The panel will select the proposal, if any, which best fulfills the City’s requirements. The City reserves the right to negotiate special requirements and proposed service levels using the selected proposal as a basis. If the City is unable to negotiate an agreeable fee for services with top firm, the City will negotiate with the next firm chosen among the top firms. 3. Award Notification The City will notify all proposers in writing of the outcome of the selection process and intent to award. This RFP does not commit the City to award an agreement, nor pay any costs incurred in the preparation and submission of the proposal in anticipation of an agreement. The City reserves the right to reject any or all proposals, or any part thereof, to waive any formalities or informalities, and to award the agreement to the proposer deemed to be in the best interest of the City and the Department. D-11 Page 12 of 12 City of Rancho Palos Verdes RFP- Classification and Compensation Study and Organizational Review May 21, 2021 4. Award of Agreement The selected firm shall be required to enter into a written agreement with the City, in a form approved by the City Attorney, to perform the Scope of Services. This RFP and the proposal, or any part thereof, may be incorporated into and made a part of the final agreement; however, the City reserves the right to further negotiate the terms and conditions of the agreement with the selected consultant. The agreement will, in any event, include a maximum "fixed cost" to the City. D-12 CITY COUNCIL MEETING DATE: 06/15/2021 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consideration and possible action to approve the Second Amendment to the Memorandum of Understanding between the City and the Rancho Palos Verdes Employee Association. RECOMMENDED COUNCIL ACTION: 1) Adopt Resolution No. 2021-___, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ACCEPTING, APPROVING AND ADOPTING THE S ECOND AMENDMENT TO THE 2020-21 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF RANCHO PALOS VERDES AND THE RANCHO PALOS VERDES EMPLOYEE ASSOCIATION THEREBY EXTENDING THE MEMORANDUM OF UNDERSTANDING TO DECEMBER 31, 2021; and 2) Approve the terms to the Second Amendment to Memorandum of Understanding between the City of Rancho Palos Verdes and the Rancho Palos Verdes Employees Association. FISCAL IMPACT: $235,000 was included in the FY 2021-22 budget for merit and Cost of Living Adjustment (COLA) for members in the Rancho Palos Verdes Employee Association only. Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Julie DeZiel, Human Resources Manager REVIEWED BY: Karina Bañales, Deputy City Manager APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Resolution No. 2021-__ (page A-1) B. Second Amendment to the Memorandum of Understanding between the City and the Rancho Palos Verdes Employee Association (page B-1) BACKGROUND AND DISCUSSION: E-1 The City and labor representatives of the Rancho Palos Verdes Employee Association (RPVEA) met and conferred on a successor Memorandum of Understanding (MOU) and agreed to a six-month term extension of the current RPVEA MOU through December 31, 2021. This extension will allow time for the City to conduct a classification and compensation study to determine appropriate classifications, compensation, benefits, and organizational structure, if any. In considering extending the existing MOU, labor representatives for both the City and RPVEA discussed a cost-of-living adjustment for represented employees, as well as a contract change permitting probationary employees to accrue vacation hours and use accrued vacation leave during their first 12 months of employment. The following summarizes the changes being presented for City Council consideration , which will be carried through upon the ratification of the RPVEA MOU. All other items will be deferred until the negotiations for the successor MOU, which is expected to occur closer to December 31, 2021. Cost of Living Salary Adjustment The 2020-21 RPVEA MOU provides an across-the-board salary cost-of-living allowance (COLA) increase for represented employees based upon the percentage increase in the Consumer Price Index (CPI) in the Los Angeles-Long Beach-Anaheim geographic area for the 12-month period ending in March, with a minimum floor increase of 1% and ceiling cap on the increase of 2.5%. Based on the March 2021 Consumer Price Index, the COLA was 2.2%, and effective July 1, 2021, employees’ salaries shall increase correspondingly within their salary ranges to reflect the COLA. Additionally, salary ranges shall also increase by the COLA amount. The COLA is built into the city budget in department salaries and benefits for FY 2021- 22. Use of Vacation Leave for Probationary Employees The 2020-21 RPVEA MOU credits vacation leaves to newly hired employees after completing the initial-hire probationary period. The initial-hire probationary period is 12 months. The current MOU language stipulates those new hires may only take vacation time when they have worked for the City for 12 months. Moreover, the current RPVEA MOU stipulates those new hires are credited vacation time off and are eligible to use those hours after working 12 months with the City. The RPVEA MOU does, however, allow new hires to use accrued vacation leave before the completion of the probationary period with the written approval of the City Manager. To this point, it is recommended that the RPVEA MOU be ratified to allow new employees to accrue and use vacation hours upon hire. E-2 CONCLUSION: Staff recommends the City Council adopt the attached resolution (Attachment A) and the Second Amendment to 2020-21 MOU between the City and the RPVEA (Attachment B) memorializing the agreed-upon terms which include extending the existing MOU until December 31, 2021, providing a 2.2% COLA effective July 1, 2021, for represented employees, and permitting probationary employees to earn and use accrued vacation leave during their initial-hire probationary period. If approved tonight, these provisions will take effect on July 1, 2021. ALTERNATIVES: In addition to the Staff recommendation, the following alternative action is available for the City Council’s consideration: 1. Take other action, as deemed appropriate. E-3 RESOLUTION NO. 2021-__ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ACCEPTING, APPROVING AND ADOPTING THE SECOND AMENDMENT TO THE 2020 -21 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF RANCHO PALOS VERDES AND THE RANCHO PALOS VERDES EMPLOYEE ASSOCIATION THEREBY EXTENDING THE MEMORANDUM OF UNDERSTANDING TO DECEMBER 31, 2021. WHEREAS, the City of Rancho Palos Verdes (City) continues to recognize the Rancho Palos Verdes Employee Association (RPVEA) as the exclusive employee organization for those City employees in the bargaining unit defined as non-management, full-time employees in the classifications listed in Exhibit “A” to the Memorandum of Understanding (MOU) between the City and the RPVEA covering the period July 1, 2020 through June 30, 2021 adopted on May 19, 2020 by City Council Resolution No. 2020- 25 (2020-21 RPVEA MOU), a copy of which is attached hereto as Exhibit “1”; and, WHEREAS, the City’s and RPVEA’s labor relations representatives have met and conferred on a successor MOU and instead agreed to a six (6) month extension of the current 2020-21 RPVEA MOU through December 31, 2021, which is subject to City Council determination and approval, to allow time for the City to conduct a classification and compensation study to determine appropriate updated classifications and pay ranges, if any, for City employees; and WHEREAS, the City’s and RPVEA’s labor relations representatives have also agreed to a cost of living adjustment (COLA) of 2.2% effective July 1, 2021 for represented employees, as well as permitting probationary employees to earn and use accrued vacation leave during their probation, all of which is also subject to City Council determination and approval; and WHEREAS, the City’s and RPVEA’s labor relations representatives have prepared the attached Second Amendment to the 2020-21 RPVEA MOU setting forth the new contract terms, which is made a part hereof by this reference and is subject to City Council’s determination; and WHEREAS, the City Council now desires to amend the current 2020-21 RPVEA MOU by accepting, adopting and implementing the attached Second Amendment to the 2020-21 RPVEA MOU to reflect the aforementioned changes. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: E-4 Section 1: The City Council accepts, approves and adopts the Second Amendment to the 2020-21 RPVEA MOU 2020-21, a copy of which is attached hereto as Exhibit "2" and is described below: a.Extending the existing MOU until December 31, 2021; b.Providing a 2.2% COLA effective July 1, 2021 for represented employees: and, c.Permitting probationary employees to earn and use accrued vacation leave during their initial-hire probationary period. Section 2: The provisions of the Second Amendment to the 2020 -21 RPVEA MOU will take effect on July 1, 2021. PASSED, APPROVED and ADOPTED this 15th day of June 2021. _______________________ Mayor Attest: _______________________________ City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) CITY OF RANCHO PALOS VERDES ) I, Teresa Takaoka, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2021- __ was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on June 15, 2021. __________________________________ City Clerk E-5 I FIRST AMENDMENT TO MEMORANDUM OF UNDERSTANDING City of Rancho Palos Verdes and Rancho Palos Verdes Employees Association I Expires on June 30, 2021 EXHIBIT 1 E-6 FIRST AMENDMENT TO MEMORANDUM OF UNDERSTANDING between the City of Rancho Palos Verdes and the Rancho Palos Verdes Employees Association Pursuant to the requirements of the Meyers-Milias-Brown Act ("MMBA," commencing at California Government Code § 3500 et seq ), the City of Rancho Palos Verdes ("CITY") has recognized the Rancho Palos Verdes Employees Association ("RPVEA") as the majority or exclusive representative, as those terms are interchangeably used under the MMBA, for those CITY employees in the bargaining unit defined as non-management, full-time employees in the classifications listed on Exhibit "A" to the Memorandum of Understanding between the CITY and RPVEA for the period through June 30, 2021 ("RPVEA MOU 2020-21"), adopted by Resolution No 2020-25 on May 19, 2020 This First Amendment to the RPVEA MOU 2020-21 is entered into this 15th day of December 2020, by and between the CITY and RPVEA This First Amendment shall only become effective upon City Council adoption and makes only those changes reflected herein below, all other terms and conditions of the RPVEA MOU 2020-21 remaining the same Article VI Restricted Fringe Benefits, Section A Health Insurance currently provides as follows On the first day of the month following the first day of employment, all employees are eligible to participate in the CITY's group medical, dental, vision and employee assistance program (EAP) insurance plans The CITY will pay the monthly insurance premium costs for all full-time employees and 50% of the cost for all eligible dependents Employees selecting the preferred provider organization (PPO) plan option with health savings account (HSA) will receive CITY contributions to the HSA toward the PPO deductible in an amount established by resolution of the City Council paid at intervals as established by the CITY The current annual HSA payment is $3,000 for employee only and $6,000 for employee plus one dependent or family, with contributions to the HSA made on approximately January and April 1 Effective July 1, 2020, the vision plan shall include an option for a second pair of glasses per year, to the extent such plan is available Full-time employees providing proof of medical coverage comparable to CITY health insurance coverage may decline CITY coverage (it must be a group health insurance, not an individual plan) and receive an in-lieu payment of fifty-percent (50%) of the lowest plan available to employees Article VI Restricted Fringe Benefits, Section A Health Insurance shall be superseded and replaced in full with the following language upon City Council approval of this First Amendment to the RPVEA MOU 2020-21 On the first day of the month following the first day of employment, all employees are eligible to participate in the CITY's group medical, dental, vision and employee assistance program (EAP) insurance plans The CITY will pay the monthly insurance premium costs for all full-time employees and fifty percent (50%) of the cost for all eligible dependents Employees selecting the preferred provider organization (PPO) plan option with health savings account (HSA) will receive CITY contributions to the HSA i E-7 toward the PPO deductible in an amount established by resolution of the City Council paid at intervals as established by the CITY Through December 31, 2020, the annual HSA payment shall be three thousand dollars ($3,000) for employee only and six thousand dollars ($6,000) for employee plus one dependent or family, with contributions to the HSA made on approximately January and April 1 Effective the first full pay period of January 2021, the annual HSA payment will be increased to three thousand six hundred dollars ($3,600) for employee only and seven thousand two hundred dollars 7,200) for employee plus one dependent or family Effective July 1, 2020, the vision plan shall include an option for a second pair of glasses per year, to the extent such plan is available Full-time employees providing proof of medical coverage comparable to CITY health insurance coverage may decline CITY coverage (it must be a group health insurance, not an individual plan) and receive an in-lieu payment of fifty percent (50%) of the lowest plan available to employees IT IS SO AGREED: City of Rancho Palos Verdes Rancho Palos Verdes Employee AssociationdirSI) 1111P Ara • •ihr<j;City Manager rtiMatt Waters - President 1 Vis. Karma Banal RP Deputy City Manager Robert Nemeth–Vice President ulie DeZiel –Human Resources Manager Resolution No 2020-70 Exhibit A Page 2 of 2 E-8 MEMORANDUM OF UNDERSTANDING City of Rancho Palos Verdes and Rancho Palos Verdes Employees Association Expires on June 30, 2021 E-9 I. TERM…………………………………................................................................... 1 II. DEFINITION OF TERMS……………................................................................... 1 III. MANAGEMENT RIGHTS..................................................................................... 4 IV. REGULAR COMPENSATION, PERFORMANCE EVALUATIONS...………… 4 A. COLA 4 B. Initial Employment 5 C. Performance Evaluation 5 D. Merit Advance 6 E. Promotional Advancement 7 F. Acting Pay 7 G. Top of the Range 7 H. Standby Pay 8 I. Callout Pay 9 V. OVERTIME COMPENSATION.............................................................................. 10 A. Work Schedule 10 B. Overtime 10 C. Compensatory Time 11 VI. RESTRICTED FRINGE BENEFITS........................................................................ 12 A. Health Insurance 12 B. Retirement Health Savings Account 12 C. Employee Assistance Program 13 D. Section 125 Plan 13 E. Life Insurance 13 F. Accidental Death and Dismemberment 13 G. Short Term Disability Insurance 13 H. Long Term Disability Insurance 13 I. CalPERS 14 J. Deferred Compensation 15 K. Tuition Reimbursement 15 L. Workers’ Compensation and Unemployment Insurance 15 M. Uniforms 15 N. Boot Reimbursement 16 VII. INCENTIVE PROGRAM........................................................................................ 16 VIII. EMPLOYEE EXPENSES…………………………………………………………. 16 A. Mileage and Parking Expenses 16 IX. PROBATIONARY PERIOD AND PROCEDURES.............................................. 16 A. Objective 16 B. Duration 17 C. Termination of Initial Hire 17 D. Procedures: Regular Appointment 17 E. Rejection Following Transfer or Promotion 17 X. LEAVES.................................................................................................................. 18 A. Vacation Leave 18 B. Sick Leave 20 C. Wellness Leave 21 E-10 D. Bereavement Leave 21 E. Jury Duty 21 F. Leave of Absence without Pay 22 G. Military Leave 23 H. Paid Holiday Leave 23 I. Family and Medical Leave 25 J. Catastrophic Leave 25 K. Other Leaves 25 XI. LAYOFF.................................................................................................................. 25 A. Order of the Layoff of Employees 24 B. Employees or Probationary Employees 24 C. Reduction of to Lower Job Classification 24 D. Re-Employment List 25 XII. SCHEDULES, HOURS, ATTENDANCE AND BREAKS................................... 25 A. Work Schedules 26 B. Attendance 28 XIII. GRIEVANCE PROCEDURES............................................................................... 28 A. Purpose 28 B. Informal Discussion of Grievance 29 C. Formal Grievance Procedure 30 D. General Procedures 30 XIV. DISCIPLINE PROCEDURES....................................................................... …...… 30 A. Cause for Discipline 30 B. Types of Disciplinary Actions 33 C. Disciplinary Procedures 34 D. Appeal of Disciplinary Action 34 E. Time of Hearing 34 F. Hearing Procedure 34 G. Finality of City Manager’s Decision 35 H. Judicial Review 36 XV. MISCELLANEOUS PROCEDURES...................................................................... 36 A. Transfers 36 B. Reclassification 36 C. Reinstatement 36 D. Dress 36 XVI. ADMINISTRATIVE INSTRUCTIONS AND DEPARTMENT POLICIES AND PROCEDURES…………………………………………………. 36 A. Administrative Instructions 36 B. Departmental Policies and Procedures 37 XVII. WRITTEN NOTICE……………………………………………………….. ……... 37 XVIII. OUTSIDE EMPLOYMENT………………………………………………………. 37 XIX. DUES DEDUCTION…………………………………………… 37 XX. SEVERABILITY………………………………………………………………….. 38 XXI. JOB DESCRIPTION………………………………………………………………. 38 XXII. INTERNET USE AND ELECTRONIC MAIL…………………………………… 38 E-11 XXIII ASSOCIATION ACCESS TO NEW HIRES AND EMPLOYEE INFORMATION..38 XXIV. RE-OPENERS………………………………...…………………………………… 39 EXHIBITS LIST OF CLASSIFICATIONS IN BARGAINING UNIT................................................... i CITY SALARY SCHEDULE............................................................................................... ii AGENCY SHOP AGREEMENT.......................................................................................... iii E-12 MEMORANDUM OF UNDERSTANDING between the City of Rancho Palos Verdes and the Rancho Palos Verdes Employees Association Pursuant to the requirements of the Meyers-Milias-Brown Act (“MMBA,” commencing at California Government Code § 3500 et seq.) the City of Rancho Palos Verdes (“CITY”) has recognized the Rancho Palos Verdes Employees Association (“RPVEA”) as the majority or exclusive representative, as those terms are interchangeably used under the MMBA, for those CITY employees in the bargaining unit defined as non-management, full-time employees in the classifications listed on Exhibit “A” to this Memorandum of Understanding (“MOU”). I. Term This MOU will be effective from the date of City Council approval and shall cover the period commencing from July 1, 2020 through and including June 30, 2021, unless otherwise expressly provided otherwise in this MOU. II. Definition of Terms A. Whenever used in this MOU, the following terms shall have the meanings set forth below: 1. CITY: The City of Rancho Palos Verdes. 2. CITY MANAGER: The duly appointed City Manager of the City of Rancho Palos Verdes or his/her designee. 3. CLASSIFICATION: A position or positions assigned to the same job title. 4. COMPETITIVE SERVICE: The competitive service established by Section 2.46.040 of the Rancho Palos Verdes Municipal Code. 5. CONTINUOUS EMPLOYMENT/SENIORITY: Total full-time spent in the employ of the CITY, including all days of attendance at work, and approved leaves of absence whether paid or non-paid (however, non-paid leaves of absence in excess of thirty (30) days do not result in the accrual of seniority after thirty (30) days, but shall not include unauthorized absences, time spent between employment with the CITY, suspensions or layoffs of more than thirty (30) days. 6. DAY: Unless otherwise indicated, day means calendar day. 7. DEMOTION (Disciplinary): A change in employment status from one classification to another having a lower rate of pay and/or change in duties which E-13 are allocated to a class having a lower maximum rate of pay for disciplinary reasons. A disciplinary demotion may be temporary or permanent. 8. DISMISSAL: The discharge of the employee from CITY service for disciplinary reasons. Discharge and dismissal are used interchangeably in this MOU. 9. EMPLOYEE: A competitive service employee as defined in Municipal Code Section 2.46.040 and compensated through the CITY payroll who is regularly scheduled to work forty (40) or more hours per week. Employee also does not include elective officials, members of appointed boards, commissions, and committees, CITY Council-appointed CITY officers, independent contractors, part-time employees, temporary employees, emergency employees, management employees or volunteers. 10. EVALUATION DATE: The date in which an employee is scheduled to receive his/her performance review. a) The date on which a newly hired probationary employee has completed not less than twelve (12) months of service within a job classification and passed probation, b) The annual anniversary date reflecting when a regular employee completed their initial probation. c) The evaluation date shall be adjusted as required for any break in service, or adjusted in accordance with the merit increase schedule outlined in Rule IV. 11. EXEMPT EMPLOYEE: An employee whose duties and salary exempt him/her from the overtime pay provisions of the federal Fair Labor Standards Act FLSA). 12. MANAGEMENT EMPLOYEE or MANAGER: The Deputy City Manager and Department Heads as defined in the Management Employee Personnel Rules or so designated either in a class specification or by the City Manager. 13. NONEXEMPT EMPLOYEE: An employee who is subject to the overtime pay provisions of the federal Fair Labor Standards Act. 14. PERSONNEL OFFICER: The City Manager shall serve as the Personnel Officer as outlined in Municipal Code Section 2.46.030. 15. PROBATIONARY EMPLOYEE: An employee who is employed with the CITY during his/her initial-hire, transfer or promotional probationary period, or extension thereof. E-14 a) An initial-hire probationary employee is an employee who (1) is serving a probationary period, and (2) has not previously been employed by the CITY, or (3) has previously been employed by the CITY but who is re- employed after a break in service. b) A transfer probationary employee is a CITY employee who has been transferred to an equivalent job classification in a different department and who is serving a probationary period. c) A promotional probationary employee is a CITY employee who has been promoted to a higher job classification requiring different skills and who is serving a probationary period. 16. PROBATIONARY PERIOD: A period of time not less than twelve (12) months of service for newly hired employees and 6 months of service for transfers and promotions, as defined in Municipal Code Section 2.46.070, which is an integral part of the examination, recruiting, testing and selection process of employment. During the probationary period, an employee is required to demonstrate his/her fitness for the position to which he/she is tentatively appointed, including promotional or transfer appointments, by actual performance of the duties of the position. 17. REDUCTION IN PAY (Discipline): A change in the salary of an employee to a lower rate within the same salary range for disciplinary reasons. 18. RULES: The Competitive Service Employee Personnel Rules. 19. SUSPENSION (Disciplinary): The temporary separation of the employee from CITY service without pay for disciplinary purposes for a period not to exceed thirty (30) days per occurrence. 20. TERMINATION: The cessation of employment with the CITY for non- disciplinary reasons such as, but not limited to, layoff, resignation, or failure to successfully complete the initial-hire probationary period. 21. VERBAL REPRIMAND: An oral warning that may be given to the employee in the event that a deficiency in performance or conduct is not of sufficient magnitude to warrant a more formal disciplinary action. 22. WRITTEN REPRIMAND: A written statement relating to an action or omission which meets the grounds for disciplinary action, indicating that there is cause for dissatisfaction with the employee’s services and that further disciplinary measures may be taken if the cause is not corrected. 23. WORK DAY: Any day, Monday through Friday, except holidays, when CITY Hall administrative offices are open for business. E-15 24. WORK WEEK: A regular schedule of forty (40) hours in a seven day period, the scheduling of which may vary from time to time based on the workforce needs of the CITY as determined by the City Manager. For overtime calculation purposes, the “workweek” is defined as the seven (7) day 168 hour regularly recurring period for each employee. For employees who work the 9/80 work schedule, their workweek shall begin exactly four hours after their start time on the day of the week which is their alternating regular day off (typically Friday). For employees who work a work schedule other than a 9/80, their workweek shall begin at 12:00 a.m. on Sunday through 11:59 p.m. on the following Saturday. III. Management Rights The CITY, through the City Council, possesses the sole right to operate the CITY and all management prerogatives remain vested with the CITY through the City Council and City Manager. In this context, except as specifically limited by express provision of this MOU, all management prerogatives, powers, authority and functions, whether heretofore exercised, and regardless of the frequency or infrequency of their exercise, shall remain vested exclusively with the CITY. It is expressly recognized that these rights, include, but are not limited to, the right to hire, direct, assign or transfer an employee or probationary employee; the right to lay off employees or probationary employees; the right to determine and change staffing levels and work performance standards; the right to determine the content of the workday, including without limitation, workload factors; the right to determine the quality and quantity of services to be offered to the public, and the means and methods of offering those services, the right to contract or subcontract CITY functions, including any work performed by employees or probationary employees; the right to discipline employees, including the right to reprimand, suspend, reduce in pay, demote and/or terminate employees; the right to relieve employees or probationary employees of duty, demote, dismiss or terminate employees or probationary employees for non- disciplinary purposes; the right to consolidate CITY functions; the right to determine CITY functions; the right to implement, modify and delete rules, regulations, resolutions and ordinances; the right to establish, change, combine wages or eliminate jobs, job functions and job classifications; the right to establish or change wages and compensation; the right to introduce new or improved procedures, methods, processes or to make technological changes; and the right to establish and change shifts, schedules of work, and starting and quitting times. IV. Regular Compensation, Performance Evaluations Employee compensation for the entire City is set forth in a city-wide compensation resolution, as updated and amended from time to time. Each range spread for represented employees is approximately thirty percent (30%) from the bottom of the range to the top of the range. A. COLA E-16 Effective July 1, 2020, the City shall provide an across-the-board salary COLA increase for represented employees based upon the percentage increase in the Consumer Price Index CPI-U) in the Los Angeles-Long Beach-Anaheim geographic area for the twelve (12) month period ending March 2020 with a minimum floor increase of one percent (1%) and ceiling cap on the increase of two and a half percent (2.5%). Employees' salaries shall increase correspondingly within their individual salary ranges to reflect the COLA. The salary ranges shall increase by the COLA amount. Effective July 1, 2020, the City shall increase the minimum salary for Maintenance Worker I/II from $44,640 to $50,691 while maintaining the $65,898 top salary in the salary range to achieve an approximate 30% salary range for the classification. B. Initial Employment The rate of compensation for initial employment in any classification shall be determined by the City Manager at his/her sole discretion based upon the experience, education, skills and ability of the employee. C. Performance Evaluation A probationary employee shall receive a probationary performance evaluation at the conclusion of the probationary period, or any extension thereof. Each regular employee shall receive a performance evaluation after completing one (1) year of service within a job classification and annually thereafter. The evaluation date shall be adjusted as required by any break in service, transfer or promotion. Starting July 1, 2017, represented employees shall be eligible for salary merit adjustments within an individual salary range based upon each employee’s annual performance evaluation rating as follows: o Meets Expectations (Satisfactory): 1.0% o Exceeds Expectations (Good): 2.0%-2.5% o Exceptional (Excellent): 3.0%-3.5% The City Manager shall retain the sole discretion to approve merit adjustments within a salary range on an annual basis. The percentage salary increase within a range will be the same for all employees who receive the same performance review rating. When a merit adjustment moves an employee to the top of their range, the remaining money from the salary increase, if any, shall be paid out as a merit bonus as described in Section G below. Employees’ annual performance evaluations will be due within two weeks after their anniversary dates and, based on their annual performance review, eligible employees will receive a merit pay adjustment and/or bonus as set forth in this MOU. Regardless of the date that an employee actually receives their performance review, the advancement of an employee within a classification’s salary range, or merit bonus payment, shall have an E-17 effective date of the first day of the pay period in which the employee’s anniversary date in the classification falls, subject to the City Manager’s approval. Employees will be permitted to grieve performance evaluations that are less than a “good” rating. This grievance right shall be for a trial period through June 30, 2017 and the parties will meet and confer regarding discontinuing it for any successor MOU. The CITY will provide the Association with the total performance review ratings for each employee annually on or before September 30 of every year. The total performance review ratings report will be anonymous and will not contain information that would link a rating to an individual employee. The CITY will meet and confer with the Association during this MOU term to revise the performance review document. D. Merit Advance within a Range The only reason for advancement within a range shall be meritorious performance in an employee’s assigned duties: 1. Except as allowed in this section, probationary employees will not be eligible for merit advancement at the conclusion of the probationary period. 2. Meritorious performance shall be determined by the overall rating on the employee’s performance evaluation. 3. Merit increases shall be based on meritorious service. Granted increases shall be effective on the same day in which the employee’s evaluation date falls, whether or not the performance evaluation is conducted on the evaluation date. 4. All proposed advancements shall be recommended by the Department Head and approved by the City Manager before becoming effective. The City Manager shall make a final determination on all proposed merit increases based upon the overall rating on the employee’s evaluation and the Department Head’s recommendation. Advancements under this section shall not change the employee’s regular evaluation date. E. Promotional Advancement When an employee is promoted from employment in one classification to employment in a classification assigned a higher salary range, advancement shall be to a level within the higher classification as will accord such employee an increase of at least five percent (5%) over his/her current rate of compensation, provided that the salary does not exceed the maximum amount of compensation within the new salary range. F. Acting Pay E-18 An employee who, by written assignment by his/her Department Head or the City Manager, performs the duties of a position with a higher salary classification than that in which he/she is regularly employed, shall receive compensation specified for the position to which he/she is assigned if he/she performs the duties for a period of one (1) calendar month or more. The employee shall be compensated at a level within the higher classification as will accord such employee an increase of at least five percent (5%) over his/her current rate of compensation, provided that the salary does not exceed the maximum amount of compensation within the new salary range. Such compensation shall be retroactive to the first day of the assignment through the duration of the assignment. G. Top of the Range In no case shall an employee’s regular salary exceed the maximum of the range established by Resolution of the City Council. Starting July 1, 2016, represented employees at the top of their salary range who are not eligible for salary merit adjustments shall receive an annual lump sum merit bonus that equals a percentage of the employee’s base salary on the same conditions as set forth for salary merit adjustments, as determined by each employee’s annual performance evaluation rating as follows: o Meets Expectations (Satisfactory): 1.0% o Exceeds Expectations (Good): 2.0%-2.5% o Exceptional (Excellent): 3.0%-3.5% The City Manager shall retain the sole discretion to approve salary merit bonuses for employees at the top of their salary range on an annual basis. The percentage salary bonus within a range will be the same for all employees who receive the same performance review rating. Employees will be permitted to grieve performance evaluations that are less than a good” rating. This grievance right shall be for a trial period through June 30, 2017 and the parties will meet and confer regarding discontinuing it for any successor MOU. H. Standby Pay Standby duty must be authorized by the City Manager, or designee, to provide operational coverage during normal non-working hours when there is a likelihood that a situation may develop that could jeopardize the City, the public or City employees if corrective action were not taken prior to the start of regular working hours. 1. Eligibility: Only bargaining unit members in classifications that are non- exempt from federal Fair Labor Standards Act (“FLSA”) overtime pay rules shall be eligible for standby shifts. 2. Participation: Standby duty shall, whenever possible, be assigned on a voluntary basis. When voluntary participation is insufficient to meet the needs of E-19 the Department, then such duty will be assigned on a rotational basis whenever possible within the affected work units. 3. Availability: While assigned to a standby shift, employees must respond within fifteen (15) minutes to all calls 24 hours a day during a specified seven-day period (seven continuous calendar days). If it is determined during the call that the employee’s physical presence is required, employee must respond on scene within one hour of the call. Employees accepting standby assignments, who are not able to meet the above criteria due to distance, must make prior arrangements with management before accepting standby assignments. 4. Standby Shift Status: Employees are not required to wear City or work uniforms and may engage in their own personal activities while they are on standby shifts. However, during their standby shift, employees must refrain from the use of intoxicants, be fit for duty, and reachable by phone. Employees not obligated to remain on standby have no obligation to meet these requirements. 5. Compensation: a) Employees assigned to standby shifts shall receive $100 for each week seven continuous calendar days) an employee is assigned and available to respond. If an employee cannot be reached or does not respond to an emergency call, the employee shall forfeit $14.29 of standby pay for each day that they fail to respond to a standby call. b) When a City paid holiday falls during the scheduled workweek in which an employee is on a standby shift, said employee shall receive an additional two (2) hours of regular pay for being on the standby shift for that holiday. Standby holiday pay shall not be considered hours worked for over-time calculations. c) During the Winter Break, December 24, 25 and January 1 shall be eligible for holiday standby pay, but the rest of the days of the Winter Break shall be exempt from holiday pay. 6. Reporting: Employees that are assigned to Standby shifts must document their Standby week and actual time worked on the Standby/Call-Out Form. Employees must submit the form to their supervisor for review and approval at the same time that they submit their timesheet. I. Callout Pay All FLSA non-exempt bargaining unit members contacted by the City outside their normal working hours and asked to perform work on behalf of the City outside of normal working hours shall be eligible for Call-out Pay. Call-out duty occurs when off-duty personnel are required to return to duty because of unanticipated work requirements, either because they are ordered to return/report to work or are already E-20 on a standby assignment. Except as otherwise indicated in the provisions below, an employee must report for work in order to be eligible for compensation. 1. Response Time: Employees that receive a call-out to return to work after concluding a regular work day or report for duty on a day for which they were not regularly scheduled for work must report to work within one hour of the call if their physical presence is required. 2. Compensation: a) City to pay the greater of 2 hours at time and one-half (1½) or actual time worked at time and one-half (1½), whichever is greater, for reporting to work on a call-out. i. Multiple calls received within any two-hour period already being paid shall not result in any additional compensation. ii. Callouts that result in the two-hour minimum period overlapping into the regular work schedule will revert to regular pay at the beginning of the regular work day. b) City to pay the greater of 15 minutes at time and one-half (1½) or actual time at time and one-half (1½) for resolving issues remotely (via telephone, computer, etc.). This provision will only apply for work done that is specifically related to the call-out request, and not for general work duties that can be done during normal working hours. 3. Travel Time: When reporting to a regular City reporting location, employees shall be paid for up to thirty (30) minutes of travel time at straight time or actual time traveled at straight time, whichever is less; if an employee is required to report on a non-regularly scheduled work day, the employee shall be paid for up to thirty (30) minutes of travel time at time and one half (1½) or actual time traveled at time and one half (1½), whichever is less. When reporting to a work location that is not a regular City reporting location, employees shall be paid for portal to portal travel time at straight time on a regularly scheduled work day and at time and one half (1½) on a non-regularly scheduled work day. 4. Reporting: Employees that receive a call-out must document the date of the call-out, travel time, and actual time worked on said call-out on the Standby/Call- Out Form. Employees must submit the form to their supervisor for review and approval at the same time that they submit their timesheet. V. Overtime Compensation A. Work Schedule When necessary to perform work, nonexempt employees and nonexempt probationary employees may be required to work at a time other than during, or in excess of, forty (40) hours in the work week. E-21 1. Overtime shall be defined as any combination of actual hours worked and paid leave, which exceeds forty (40) hours in any work week. 2. Work in excess of forty (40) hours in the workweek requires written approval of the nonexempt employee’s Department Head or the City Manager. Whenever possible, the employee shall obtain the Department Head’s or the City Manager’s written approval in advance. 3. An employee, with his/her supervisor’s approval may flex his/her time (i.e., work on different hours of the day or move hours from one day to the next for flexibility). Flexing time is generally not permitted on the alternating regular day off (Fridays) for employees who work the 9/80 work schedule. Flexing is permitted for the convenience of the employee and/or CITY operations and shall not result in additional overtime costs. CITY will permit flexing on Fridays with approval of the employee’s supervisor and the Deputy City Manager provided that no overtime is incurred. B. Overtime Compensation 1. Nonexempt employees and nonexempt probationary employees shall receive overtime compensation or compensatory time off in accordance with the federal Fair Labor Standards Act. Accordingly, nonexempt employees and nonexempt probationary employees shall be paid one and one-half (1 ½) times their regular rate of pay or receive compensatory time off at one and one half (1 ½) hours for all hours worked in excess of forty (40) in the work week. 2. The following positions have been designated exempt for all purposes under the FLSA, including overtime compensation: o Accounting Manager o Associate Engineer o Maintenance Superintendent o Project Manager o Recreation Program Supervisor II o Recreation Services Manager o Senior Accountant o Senior Administrative Analyst o Senior Engineer o Senior Planner E-22 In designating these classifications as exempt under the FLSA, these exempt employees in these classifications will receive a maximum accrual of up to 62 hours of Administrative Leave each fiscal year. Any non-used Administrative Leave hours from the prior fiscal year shall reduce the next year’s accrual proportionately such that each year the employee shall not accrue nor have banked more than 62 total hours. These changes shall be for a trial period through June 30, 2017 and the parties will meet and confer regarding discontinuing them for any successor MOU. Employees who have accrued compensatory time on the books as of the date that they are designated to be exempt shall retain those hours for use provided that they follow the procedure for compensatory time usage set forth in Article V, Section C 1. C. Compensatory Time Nonexempt employees and nonexempt probationary employees may elect to be credited with compensatory time off in lieu of paid overtime at the time such overtime is recorded. Such compensatory time shall be at the rate of one and one half (1 ½) hours for each hour of overtime worked. Compensatory time may not be accumulated to exceed forty (40) hours. 1. The taking of all compensatory time off shall first be approved by the nonexempt employee’s or nonexempt probationary employee’s Department Head or the City Manager and shall be granted in accordance with the work force needs of the CITY and the federal Fair Labor Standards Act. An employee may use compensatory time upon 4 work days’ notice to his or her supervisor. An employee may be allowed to use compensatory time upon less than 4 work days’ notice at the discretion of his or her supervisor. 2. Upon termination or dismissal from employment, employees shall be paid for accumulated compensatory time. VI. Restricted Fringe Benefits During the term of this MOU, no changes shall be made to the Restricted Fringe Benefits currently offered by the CITY. Costs associated with these plans are subject to change at any time without notice to the employer. A. Health Insurance On the first day of the month following the first day of employment, all employees are eligible to participate in the CITY’s group medical, dental, vision and employee assistance program (EAP) insurance plans. The CITY will pay the monthly insurance premium costs for all full-time employees and 50% of the cost for all eligible dependents. Employees selecting the preferred provider organization (PPO) plan option with health savings account HSA) will receive CITY contributions to the HSA toward the PPO deductible in an amount established by resolution of the City Council paid at intervals as established by the CITY. The current annual HSA payment is $3,000 for employee only and $6,000 for E-23 employee plus one dependent or family, with contributions to the HSA made on approximately January and April 1. Effective July 1, 2020, the vision plan shall include an option for a second pair of glasses per year, to the extent such plan is available. Full-time employees providing proof of medical coverage comparable to CITY health insurance coverage may decline CITY coverage (it must be a group health insurance, not an individual plan) and receive an in-lieu payment of fifty-percent (50%) of the lowest plan available to employees. B. Retirement Health Savings Account Employees shall be enrolled in the retirement health savings account upon completion of probation. The Account is funded via a one percent (1%) employee deduction and a CITY contribution. The CITY contribution effective the first full pay period in July 2017 for FY 2017-18 shall be increased to sixty ($60) per pay period (previously the City paid $56.59 per pay period). For 2018-19 and 2019-20, City shall continue the practice of increasing City annual contribution effective the first full pay period in July by the percentage increase in the Consumer Price Index (CPI-U) in the Los Angeles-Riverside-Orange County area for the twelve (12) month period ending March 2018 and March 2019, respectively. C. Employee Assistance Program The CITY’s Employee Assistance Program can refer employees to qualified professional counselors who can help the employee and their eligible family member resolve personal problems that can affect their health, family life, abilities and desire to excel at work. D. Section 125 Flexible Benefits Plan On the first day of the month following six full months of employment, employees can elect to enroll in the CITY’s flexible Benefits Plan. The Section 125 plan allows employees to withhold a portion of their paycheck on a pre-tax basis. The money is then used to pay for health expenses not covered by their respective insurance providers or for reimbursement of the employee’s dependent care expenses, such as day care, throughout the year. Employees should calculate their deductions and track their expenses carefully, as some portion of the unused amount may be forfeited per IRS regulations. E. Life Insurance Employees are eligible for life insurance on the first of the month following their first day of employment with the CITY. The CITY pays the entire premium on a life insurance policy with a benefit of twice the employee’s annual salary, up to a maximum benefit of 350,000. F. Accidental Death and Dismemberment Employees are eligible for AD&D insurance on the first day of the month following their first day of employment with the CITY. The CITY pays the entire premium on an AD&D E-24 insurance policy. The benefit amount is based on the actual loss, up to a maximum benefit of $350,000. G. Short Term Disability Insurance All employees are required to participate in the California State Disability Insurance (SDI) program, which provides partial salary replacement benefits when an employee is disabled due to a non-work related illness or injury. The program is funded by employee payroll deductions from the employee’s bi-weekly paycheck until a cap established by the State is reached. The benefits and terms are established by the State. H. Long Term Disability Insurance On the first day of the month following six full months of employment, eligible employees are covered by the CITY’s long term disability insurance program, which provides partial salary benefits when an employee is disabled due to a non-work related illness of injury. The CITY pays the employee’s entire premium. Long term disability insurance does not become effective until an eligible employee has been unable to work for more than 90 days. Benefits are provided at a rate of 66.6667% of an employee’s monthly earnings, up to a maximum benefit of $10,000 per month. I. California Public Employees’ Retirement System (CalPERS) Eligible employees are automatically enrolled as members of the CITY’s retirement system. The retirement plan is provided under contract with CalPERS. The CITY pays the employer portion of the CalPERS contribution, and the employees pay the CalPERS member contribution (eight percent (8%) for employees subject to the 2.5%@55 formula below and seven percent (7%) for employees subject to the 2%@60 formula below) as determined by CalPERS. The employee pays the employee portion, as determined by statute and CalPERS contract. In the event of any conflict between this summary and either the CITY’s contract with CalPERS or law, the contract or law, as applicable, will prevail. 1. Current employees who entered CalPERS membership under the CITY’s plan prior to October 6, 2012 are subject to the CITY’s formula of 2.5%@55 with final compensation determined by the average of the 12 highest paid consecutive months (single highest year). 2. New Employees first entering membership under the CITY’s plan on or after October 6, 2012 who are not new members under (3) below are subject to the second tier benefit formula of 2%@60 based on the average monthly pay rate for the 36 highest paid consecutive months (3 year final compensation). 3. Pursuant to the Public Employees’ Pension Reform Act of 2012 (PEPRA), on and after January 1, 2013 “new members,” as defined under PEPRA, will be subject to the reform tier benefit formula of 2%@62 based the average monthly pay rate for the 36 highest paid consecutive months (3 year final compensation) and other PEPRA required terms. In addition, new members will be required to pay one half (1/2) of the total normal cost rate for their pension benefit. That rate is E-25 determined by CalPERS and will be communicated to the Association (and as it is adjusted in the future) once it is known by the CITY. As defined by PEPRA, a “new member” is: a) An individual who becomes a member of any public retirement system for the first time on or after January 1, 2013, and who was not a member of any other public retirement system prior to that date. b) An individual who becomes a member of a public retirement system for the first time on or after January 1, 2013, and who was a member of another public retirement system prior to that date, but who was not subject to reciprocity, as provided under PEPRA. c) An individual who was an active member in a retirement system and who, after a break in service of more than six months, returned to active membership in that system with a new employer. J. Deferred Compensation In addition to the CITY’s CalPERS retirement program, the CITY’s deferred compensation program (457 plan) allows employees to save and invest a portion (up to the maximum permitted by law) of their salary today on a tax-deferred basis, in order to supplement their future retirement benefits. All employees are eligible to participate in the program. For CalPERS designated Tier 2 and Tier 3 represented employees, the City shall match employee contributions up to sixty dollars ($60) per month per employee towards the City’s deferred compensation program (457 plan). K. Tuition Reimbursement The CITY provides a tuition reimbursement program to encourage employees to pursue professional growth and development through accredited academic coursework. All employees who have completed probation are eligible to participate in the program. The course must be related to work within CITY government and class time must not interfere with the employee’s normal duties, unless specifically authorized by the City Manager. A passing grade, or a certificate of completion for courses that do not bear credit, is required to receive payment. The maximum amount of reimbursement in a fiscal year shall not exceed $500 per employee participating in the program and is subject to final authorization by the City Manager. The total amount of funds available for the tuition reimbursement program is established each year by the City Council as part of the CITY’s operating budget. L. Workers’ Compensation and Unemployment Insurance 1. Coverage: The CITY provides workers’ compensation and unemployment insurance to all employees, in accordance with California law. E-26 2. On-the-Job Injuries: All injuries suffered during working hours must be reported, in writing, immediately to the Department Head or City Manager. Unless there is an emergency, a CITY referral form must be obtained from the Personnel office before visiting a doctor. Upon returning to work from all on-the-job injuries, employees and probationary employees must have an approved return to work certificate signed by the attending doctor. M. Uniforms. Effective July 1, 2020, Open Space Management (OSM), Park Rangers, and Maintenance shall be provided City uniforms at no expense as follows: 1. New Employees: 7 sets of uniforms and 1 jacket. 2. Existing employees: 3 new sets of uniforms and 1 jacket per calendar year. 3. Replacement uniforms may be provided as needed upon request by employee and justification as determined by Department Head and/or designee. N. Boot Reimbursement. Effective July 1, 2020, OSM, Park Rangers, Maintenance, Code Enforcement and Building Inspectors shall be provided on a reimbursement basis, with required receipts for same, one (1) set of work boots per year, up to a maximum of 150 per pair, as determined and approved by the City at no employee expense. Additional boots may be authorized as needed upon request by employee and with justification as determined by Department Head and/or designee. An additional set of work boots are paid up to $150 maximum reimbursement per pair, per year, due to extreme wear. VII. Incentive Program A. From time to time, the City Manager may grant an incentive pay award to any employee or probationary employee in recognition for extraordinary work. 1. The City Manager shall determine the amount of incentive pa y per employee award. However, in no case shall the incentive pay exceed five percent 5%) of an employee’s base salary. 2. Employees or probationary employees shall be limited to no more than two 2) incentive pay awards in a twelve (12) month period. VIII. Employee Expenses A. Mileage and Parking Expenses An employee or probationary employee who is required to use his/her private automobile for CITY assignments shall be reimbursed for mileage at the current standard mileage rate set by the Internal Revenue Service and actual parking expenses. 1. All claims for mileage and parking reimbursement shall first be approved in writing by the employee’s or probationary employee’s supervisor, department E-27 head or the City Manager, and shall be filed on forms and in accordance with the procedures established by the City Manager. 2. Employees and probationary employees using their private automobile for CITY business shall supply the Personnel Officer with a Certificate of Insurance stating that their private automobile is covered by public liability and property damage insurance of not less than the amount required in the procedures established by the City Manager, established in coordination with the CITY’s liability coverage pool. IX. Probationary Period and Procedures A. Objective of the Probationary Period The probationary period shall be regarded as part of the selection and evaluation process. The CITY shall closely observe the probationary employee’s work performance during the probationary period. B. Duration of the Probation Period All initial-hire appointments shall be tentative and subject to a probationary period of not less than twelve (12) months actual service. All transfer and promotional appointments shall be tentative and subject to a probationary period of six months of actual service. The City Manager may extend a new-hire probationary period up to twelve (12) additional months of actual service and a promotional probationary period up to an additional six months of actual service. Wherever possible, the City Manager shall give the probationary employee written notice of the extension of the probationary period ten (10) days before its expiration. The written notice shall state the reason for the extension. Failure to give the probationary employee notice of the extension prior to the expiration of the initial probationary period shall automatically extend the period. The length of the automatic extension without a written notice shall not exceed a period of over thirty (30) days. C. Termination of Initial Hire Probationary Employee During or at the conclusion of the initial-hire probationary period, or any extension thereof, the City Manager, after consultation with the probationary employee’s department head, where practical, may terminate an initial hire probationary employee without cause, and without a hearing or right of appeal. D. Procedures: Regular Appointment Following Probationary Period The City Manager shall be notified in writing two (2) weeks prior to the expiration of any probationary period. After consultation with the probationary employee’s department head and immediate supervisor, the City Manager shall determine whether: 1. The initial-hire probationary employee shall become a regular employee; 2. The initial-hire probationary employee shall be terminated or discharged; E-28 3. The transfer probationary employee’s transfer shall be confirmed; 4. The transfer probationary employee’s transfer shall be rejected; 5. The promotional probationary employee’s promotion shall be confirmed; 6. The promotional probationary employee’s promotion shall be rejected, or 7. The employee’s initial, transfer or promotional probationary period shall be extended. E. Rejection Following Transfer or Promotion Any probationary employee rejected during or at the conclusion of a probationary period following a transfer or promotional appointment shall be reinstated to the classification from which the employee was transferred or promoted unless (a) charges are filed and the employee is dismissed from employment in the manner provided in this MOU, (b) there is no vacancy in such position, or (c) the employee is terminated from employment due to a layoff or other basis. If there is no vacancy, the employee may request to be placed on a reemployment list. X. Leaves 1. Time spent by an employee on an approved paid leave shall not be construed as a break in service or employment, and rights accrued at the time the leave is granted shall be retained by the employee. Additionally, a leave of absence, with pay or without pay, granted to any employee shall not create a vacancy in the position. For the duration of any such leave of absence, the duties of the position may be performed by another employee from the competitive service on an acting assignment, an independent consultant or a temporary employee, provided that any person so assigned shall possess the minimum qualifications for such position. 2. Except as otherwise permitted by law, all requests for leave shall be in writing, and shall be sent to the employee’s supervisor or department head or his/her designee. The request shall include the expected start and end dates of the leave, and any medical certifications required by the provisions of this MOU or CITY Policy. An employee shall provide as much advance notice of the need for leave as practicable. Generally, when the need for the leave is foreseeable, the employee shall try to provide at least ten (10) days’ notice prior to the commencement of the leave. Failure to provide advance notice of the need for leave may be grounds for delaying the start of the leave. E-29 A. Vacation Leave 1. Employees are entitled to accrue paid vacation leave under the following schedule: Length of Employment Vacation Accrual Rates Maximum Accumulation Beginning of 1st month through 2 years 6.67 hours per month 160 hours Beginning of 3rd year through 5 years 8 hours per month 192 hours Beginning of 6th year through 15 years 10 hours per month 240 hours Beginning of 16th year and more 8 additional hours per year for each year of service up to a maximum of 160 hours per year Twice the annual accrual not to exceed 320 hours i.e. 256, 272, 288, 304 or 320 hours, as applicable) 2. After completion of the initial-hire probationary period, the employee will be credited with vacation leave earned during the probationary period. The employee shall be entitled to take such leave upon the completion of the initial-hire probationary period or extension thereof. However, an initial-hire probationary employee may utilize accrued vacation leave prior to the completion of the probationary period with the written approval of the City Manager. 3. Vacation leave may be accumulated to a maximum of two years’ worth of accrued vacation leave. For specific amounts, see table above. Once an employee reaches the maximum vacation leave which may be accumulated, the employee shall cease to accrue any further vacation leave until the amount accumulated falls below the maximum. 4. The scheduling of vacation leave must be approved in advance by the employee’s Department Head or the City Manager. Employees shall submit a written request to schedule vacation leave to the employee’s Department Head or the City Manager within a reasonable amount of time prior to the desired date and may be granted in accordance with the work force needs of the CITY. 5. Employees will have the option to be paid for vacation leave that exceeds the maximum allowed by this MOU if a requested vacation leave is received and denied by the employee’s Department Head and the City Manager due to the work force needs of the CITY, not less than thirty (30) days prior to exceeding the maximum accrual. 6. Employees shall not be granted, and accordingly are not entitled to take, vacation leave in advance of its accrual. E-30 7. Upon termination or dismissal from employment, employees and probationary employees shall be paid for accumulated vacation leave up to a maximum amount which may be accumulated pursuant to this MOU. 8. Vacation leave may be used for medical appointments, pregnancy disability leave and leave pursuant to the federal and California family and medical leave statutes. 9. Employees shall be entitled to cash out up to eighty (80) hours of accrued vacation leave per fiscal year provided that the employee maintains fifty percent 50%) of their annual vacation accrual after any cash out and provided that they cash out 1 hour for every 2 hours actually used during the 12 months preceding the cash out. 10. Employees may submit a request for vacation cash out every quarter. Vacation cash out requests received during the first week of the month that ends the quarter (March/June/September/November) shall be paid out on the last payday of the month that ends the quarter (March/June/September/November) and in which the request was received. Each request that is submitted within the specified time frame shall be evaluated individually to ensure the employee meets the payout eligibility criteria set forth herein. Eligible employees shall be paid for any accumulated and unused vacation leave they have requested and to which they are entitled on the last pay day of the month that ends the quarter. Said cash payment shall be at the employee’s then current rate of pay. 11. Due to unique leave issues resulting from COVID-19 and the local, state and federal declarations of emergency related to same, employees within twenty 20) hours of reaching the maximum vacation accrual cap have been allowed to have their maximum vacation accrual cap increased by twenty (20) hours. Affected employees must use the twenty (20) hours during this MOU term and must be within the original maximum vacation accrual cap on or before June 30, 2021. This provision shall expire at the end of this MOU’s one year term. B. Sick Leave 1. Employees and probationary employees earn paid sick leave at the rate of eight (8) hours for each full calendar month of continuous employment with the CITY including time served in probationary status. 2. Probationary employees are eligible to use paid sick leave during their probationary period. 3. Unused sick leave may be accumulated to a maximum of seven hundred twenty (720) hours. 4. In order to receive paid sick leave, an employee or probationary employee must speak with his/her supervisor at the earliest possible time, generally before 8:30 a.m. on the day that the leave will be used. Alternatively, an employee or E-31 probationary employee must leave a voicemail with his/her supervisor and then call his/her Department Head Such notice shall provide the fact and the reason for the leave and duration of the leave. Failure to provide reasonable notice will be cause for denial of sick leave with pay for the period of the absence. Written verification of the cause of absence may be required by the Department Head or City Manager. 5. Employees and probationary employees shall not be granted, and accordingly are not entitled to take, paid sick leave in advance of its accrual. 6. Employees and probationary employees who use more than twenty-seven 27) consecutive sick hours shall be required to furnish a physician’s certificate stating that the employee is able to safely return to work. A physician's certification may be requested if a supervisor has reason to believe that sick leave is being abused. Regardless of the length of the sick leave used, the supervisor has the authority to determine if the employee is abusing the sick leave benefit. 7. Sick leave must be used in a minimum of fifteen (15) minute increments just like the reporting of regular hours worked. 8. Sick leave may be used for medical appointments, pregnancy disability leave, leaves provided pursuant to the federal and California family and medical leave statutes and to care for an employee’s spouse, child(ren), parent(s) or spouse’s child(ren) or parent(s) due to illness. 9. Upon termination or dismissal from employment, employees and probationary employees shall not be granted, and accordingly are not entitled to be paid for accumulated sick leave. C. Wellness Leave Employees and probationary employees are eligible to earn four and one half (4 ½) hours of paid wellness leave for ten (10) consecutive weeks of perfect attendance without using any sick leave time. 1. Prospectively, the ten (10) week period shall be calculated from June 2, 1991. 2. A maximum of nine (9) hours of wellness leave may be accumulated. 3. Upon termination or dismissal from employment, employees and probationary employees shall not be granted, and accordingly are not entitled to be paid for wellness leave. 4. Wellness leave may be used for pregnancy disability leave and leaves provided under the federal and California family and medical leave statutes. D. Bereavement Leave E-32 Paid bereavement leave shall not be considered accrued leave which an employee or probationary employee may use at his/her discretion, but is granted by reason of the death of a member of the employee’s or probationary employee’s immediate family, consisti ng of an employee’s or probationary employee’s spouse or registered domestic partner and employee’s or probationary employee’s or their spouse’s child, parent, sibling, stepparent, stepchild and grandparent. An employee or probationary employee may take a maximum of three (3) working days of bereavement leave each time a death occurs within an employee’s or probationary employee’s immediate family. In order to receive paid bereavement leave, the employee or probationary employee must notify his/her Department Head or the City Manager at the earliest possible time, generally before 8:30 a.m. on the day that the leave is first requested. In the event the employee or probationary employee must travel out of state in connection with the bereavement, the employee or probationary employee shall be allowed two (2) additional working days of bereavement leave for each incident. E. Jury Duty 1. Employees and probationary employees called for jury duty shall give the Department Head or City Manager reasonable advance written notice of the his/her obligation to serve. 2. Employees and probationary employees will be paid their regular wages, less jury duty pay (other than mileage or subsistence allowances) or may elect to forfeit the jury duty warrant to the CITY and receive full CITY wages. 3. Written evidence of jury duty attendance shall be presented to the Personnel Officer. 4. Employees and probationary employees shall continue to report to work on those days when excused from jury duty, and on which the employee or probationary employee can work at least four (4) hours during his/her regular workday. F. Leave of Absence without Pay The City Manager, after consultation with the employee’s or probationary employee’s Department Head, may grant an employee or probationary employee leave of absence without pay for a period not to exceed four (4) months in accordance with the work force needs of the CITY. Additionally, the City Manager may apply such conditions as he/she deems warranted in the best interest of the CITY. No such leave shall be granted except upon written request of the employee or probationary employee. Leave under this section shall only be granted to an employee or probationary employee under circumstances where the employee or probationary employee is not otherwise eligible for pregnancy disability leave or family and medical leave as provided under applicable law and Sections 8 Pregnancy Disability Leave) and 11 (Family and Medical Leave) of the Personnel Rules. Approval shall be in writing and a copy filed with the Personnel Officer. E-33 1. A leave of absence without pay shall not be construed as a break in service or employment, however, paid leave benefits, increases in salary, and other similar benefits shall not accrue to a person granted such leave during the period of absence. An employee shall stop accruing seniority after thirty (30) days on a leave of absence without pay. 2. Use of a leave of absence without pay for a purpose other than that requested may be cause for forfeiture of reinstatement rights. Failure on the part of an employee or probationary employee on leave to report to work promptly at its expiration may be cause for discharge. 3. An employee or probationary employee reinstated after a leave of absence without pay shall receive that same pay rate in the salary range that he/she received when the leave of absence began. Time spent on such leave without pay shall not count towards service for increases within the salary range, and the employee’s or probationary employee’s evaluation date shall be set forward one (1) month for each thirty (30) consecutive days taken. 4. The CITY shall maintain group health insurance coverage for an employee or probationary employee (including dependent coverage) while the employee or probationary employee is taking a medical leave of absence under this section at the level and under the conditions coverage would have been provided by the CITY if the employee or probationary employee had not taken such leave. In the event an employee or probationary employee does not return to work following the leave, the CITY reserves the right to recover the premiums or other sums the CITY paid for group health insurance coverage during the period of the leave. 5. The employee or probationary employee is responsible to pay the entire cost of all applicable health and life insurance premiums and other insurance premiums such as long term disability and accidental death and dismemberment) during a non-medical leave of absence without pay that exceeds thirty (30) days. In addition, in advance of taking the leave, the employee or probationary employee must make written arrangements with the Finance Department to pay for the costs of such coverage. Premiums shall be paid within the time specified by the CITY or as otherwise required by the applicable insurance or benefit program. 6. If the leave of absence without pay was for medical reasons, prior to resuming regular duties, an employee or probationary employee shall furnish the Personnel Officer a physician’s certificate stating that the employee is able to return to work. G. Military Leave Military leave and military spouse leave shall be granted in accordance with applicable federal and California law. H. Paid Holiday Leave E-34 1. Subject to the restrictions described below, nonexempt employees and nonexempt probationary (new-hire, transfer and promotional) employees shall receive paid leave at his/her straight hourly rate for the following designated CITY holidays: a) The last Monday in May; b) July 4th; c) The first Monday in September d) The fourth Thursday in November e) The day after the fourth Thursday in November f) The period between and including December 24 and January 1 Saturdays and Sundays or other non-work days excepted); and g) One day as a floating holiday, which shall be designated yearly by the City Manager. 2. Exempt employees and exempt probationary employees shall receive paid leave for the designated CITY holidays outlined above. At his/her discretion, the City Manager may grant extra compensation or in lieu time off to exempt employees and exempt probationary employees who are required to work on a holiday. 3. If July 4th falls upon a Saturday, the Friday before is the observed holiday, and if the date falls upon a Sunday, the Monday following is the observed holiday. 4. In order to be eligible for holiday pay, an employee or probationary employee must work the last scheduled workday before and the first scheduled workday after the holiday unless the employee or probationary employee is taking approved paid leave. 5. If a holiday falls during an employee’s or probationary employee’s approved vacation leave period, the employee or probationary employee shall be paid for the holiday and shall not be charged with a vacation day for the day the holiday is observed. 6. If a holiday falls during an employee’s or probationary employee’s approved sick leave period, the employee or probationary employee will be paid for the holiday and will not be charged with a sick day for the day the holiday is observed. 7. Employees and probationary employees on non-paid leave of absence for any reason are ineligible for holiday benefits for holidays that are observed during the period they are on a non-paid leave of absence. E-35 8. Regardless of the number of hours worked during the work week, nonexempt employees and nonexempt probationary employees who work on a designated CITY holiday shall be paid their regular hourly rate and one and one half (1½) times their regular hourly rate of pay for all hours worked on the holiday or receive credit for the equivalent number of hours worked of compensatory time off at one and one half (1 ½) hours of compensatory time off for all hours worked on the holiday. 9. Upon termination or dismissal from employment, employees and probationary employees shall not be granted, and accordingly are not entitled to be paid for a floating holiday. I. Family and Medical Leave Family and medical leave will be granted in accordance with the CITY’s Family and Medical Leave Policy and applicable law. J. Catastrophic Leave Employees in the unit shall be permitted to donate accrued vacation or compensatory time off to other members of the bargaining unit who have exhausted all paid leaves, who have been granted an unpaid leave and who need to continue to be absent from work because of a catastrophic injury or illness. The value of the leave will be determined based on the donating employee’s compensation. It will then be converted to vacation hours for the donee’s use based on the donee’s rate of pay. For example, if an employee who earns $40 per hour donated 10 hours of vacation to an employee who earns $30 per hour, the donee would receive $400 divided by $30 or 13.333 hours of vacation. K. Other Leaves The City Manager shall grant such other leaves as are required by law. Except as otherwise provided by law or by circumstances beyond the employee’s control, employees shall request such leave and obtain approval in advance. All such leaves shall be unpaid, unless otherwise required by law or this MOU, but employees may use otherwise applicable paid- leave benefits to remain in paid status. XI. Layoff Whenever in the judgment of the City Council it becomes necessary in the interest of economy, because the necessity for a position no longer exists or other legitimate purpose, the City Council may abolish any position in the competitive service; and the employee or probationary employee holding such position or employment may be laid off without taking disciplinary action and without the right of appeal. Except as otherwise determined by the City Council, the City Manager, when it becomes necessary in the interest of economy, because the necessity for a position no longer exists or for other legitimate purpose, may abolish any position or employment in the Competitive Service and may lay off an employee holding such position or employment without taking disciplinary action and without right of appeal. E-36 A. The order of the layoff of employees and/or probationary employees shall be established by seniority in the employee’s classification. B. Employees or probationary employees to be laid off shall be given at least ten (10) working days prior notice, equivalent pay if laid off immediately, or a combination of notice and pay totaling ten (10) working days if laid off with less than ten (10) working days notice. C. An employee, promotional probationary employee, or transfer probationary employee who is subject to layoff may request a reduction to a lower job classification within the same occupational series in the layoff unit provided the employee, promotional probationary employee or transfer probationary employee possesses seniority, an acceptable performance and attendance record, and has the ability to perform the remaining work available without further training. The reduction shall be made only in cases where there is a vacant position in the layoff unit. 1. The names of employees and probationary employees laid off or demoted in lieu of layoff shall be placed on re-employment lists for those job classifications requiring basically the same qualifications, duties and responsibilities of the class from which the layoff or demotion in lieu of layoff was made. D. Re-Employment List Names of persons laid off or demoted in lieu of layoff in accordance with these procedures may be carried on a re-employment list(s), prepared and maintained by the Personnel Officer, for a period of six (6) months, unless extended by the City Manager at his/her sole discretion. 1. Persons who refuse re-employment shall be removed from the list. 2. Persons who are appointed to permanent positions of the same level, whether in the CITY or another agency, as that which was demoted or laid off shall be removed from the list. 3. Persons who fail to respond to a notice of re-employment mailed to the last known address within ten (10) working days from the date in which the notice was mailed shall be removed from the list. XII.Schedules, Hours, Attendance and Breaks A. Work Schedules The work schedule at CITY Hall is a 9/80 schedule. Employees work a 9-hour day, 7:30 AM to 5:30 PM, Monday through Thursday. Staff is divided into two teams, the “A” Team and the “B” Team, which alternate working every other Friday. For employees who work the 9/80 work schedule, their workweek shall begin exactly four hours after their start time on the day of the week which is their alternating regular day off (typically Friday). During their Fridays “on,” employees work an 8-hour day, from 7:30 AM to 4:30 PM. CITY Hall E-37 offices remain open with at least one person in each department on duty to answer questions and to receive visitors. It is up to each Department Head to decide how best to divide his or her staff so that sufficient staff coverage is available on Fridays. When a team’s Friday “off” falls on a CITY Holiday, that team takes the prior work day off instead. For example, if Christmas Eve falls on a Friday, the team that would have had that Friday off takes the Thursday off instead. At the beginning of each calendar year, the A” and “B” Teams alternate which one takes the first Friday of the year off following the return to work from the CITY’s Winter Holiday Break. Employees are generally not allowed to switch Fridays, however, the Department Head may grant permission to do so, but only if to do so would not cause the employee to earn overtime as a result of the switch, if circumstances warrant and the staffing needs of the Department can still be met. An employee’s supervisor and/or Department Head shall set the hourly work schedule and work day for that employee. In the absence of other arrangements, working hours are 7:30 AM to 5:30 PM, Monday through Thursday and 7:30 AM to 4:30 PM every other Friday, with one hour for lunch. 1. Lunch. Lunch periods for office employees should be scheduled between 11:00 AM and 2:00 PM and are generally expected to be limited to one hour, except when CITY business is conducted during that time period. Department Heads have the responsibility for scheduling lunch periods for their employees. 2. Breaks. The CITY allows every employee to take two 15 minutes break periods per day. Breaks for office employees are not to be taken outside the Civic Center area without permission of the Department Head. In addition, eating food in the public areas is generally not accepted. Employees in the field may suit the time of work break to the situation at hand, recognizing that they are CITY representatives in all daily activities. Scheduling of breaks will be at the discretion of the Department Head. The work schedule for the classifications of Park Ranger and Senior Park Ranger is a 4/10 work week schedule. Employees work a 10-hour day, 4 days per work week. The schedule is flexible since open space need to be patrolled 365 days a year. It is up to the department to best decide how to divide staff so that sufficient coverage is available. Employees are generally not allowed to switch days off; however, the Department Head, and/or designee, may grant permission to do so, but only if to do so would not cause the employee to earn overtime as a result of the switch, and the staffing needs of the department can still be met. An employee’s supervisor and/or Department Head shall set the hourly work schedule and workday for Park Rangers and Senior Park Ranger. Standard daily hours are 7:30 a.m. to 6:30 p.m.; however, daily hours may vary depending on season and/or time of year (i.e. daylight savings time). If hour variation is necessary, then hours would be 6:30 a.m. to 5:30 p.m. or 6:00 a.m. to 5:00 p.m. The parties agree that this work schedule is a pilot program which will expire June 30, 2021, unless both parties agree to extend the program. 1. LUNCH. Lunch periods will be a one (1) hour unpaid meal period scheduled between 11:00 a.m. and 2:00 p.m. Lunch periods are generally expected E-38 to be limited to one (1) hour, except when CITY business is conducted during that time period. 2. BREAK. The CITY allows every employee to take two 15-minute paid break periods per day. Those classifications that have been designated to a 4/10 schedule work in the field and may suit the time of work break period to the situation at hand, recognizing that they are CITY representatives in all daily activities. Scheduling of breaks periods will be at the discretion of the Department head or his/her designee. 3. OVERTIME. Overtime will be all hours worked in excess of ten (10) hours a day and forty (40) hours per week. 4. VACATION. Vacation is based on years of employment, as outlined in MOU Article X.A.1. 5. SICK LEAVE. Sick leave will be at the rate of eight (8) hours for each full calendar month of continuous employment with the CITY including time served in probationary status, as outlined in Section X.B.1. 6. HOLIDAY LEAVE BANKS. Employees working in the Park Ranger or Senior Park Ranger classifications who actually work on an official CITY holiday shall receive 10 holiday leave bank hours for each holiday worked to be credited the same pay roll period as the holiday worked. This holiday leave credit is in addition to the overtime pay to be received at 1 ½ times the regular rate for working the holiday. a) Earned Holiday Leave may be taken in quarter-hour (1/4) increments. b) Upon request of the employee, earned, unused Holiday Leave may be “cashed-out” at any time during the fiscal year in which such leave time is earned. The payment will appear in the employee’s paycheck at the current value of their regular rate of pay. 7. Employees working in the Park Ranger or Senior Park Ranger classification shall also receive one 10-hour floating holiday as already provided for in the MOU. B. Attendance Failure of an employee, who is absent without leave, to return to work within 24 hours of notice to return, or failure to request leave of absence within the same period, shall be cause of disciplinary action, which may lead to discharge. Employees who leave during work hours without first notifying and receiving prior approval from their supervisor or Department Head of their whereabouts are subject to appropriate disciplinary action. E-39 XIII.Grievance Procedures A. Purpose of Grievance Procedure The grievance procedure shall be used to resolve employee or probationary employee complaints concerning the express terms and condition of employment with the CITY. Except for oral warnings and written reprimands, the grievance procedure shall not be used for resolving any complaint concerning disciplinary action. Except as otherwise provided in this MOU, the grievance procedure may be utilized to resolve alleged: 1) Improper application of rules, regulations and procedures; 2) Unfair treatment, including coercion, restraint and reprisal; 3) Improper procedures utilized in employee layoff; 4) Discrimination because of race, color, religion, creed, sex, sexual orientation, pregnancy, national origin, ancestry, age (40 and over), marital status, disability, alienage, citizenship status or medical condition (cancer-related); or because of any other statutorily or constitutionally impermissible basis. 5) Any manner affecting an employee’s or probationary employee’s: a. Work schedule; b. Fringe benefits; c. Holidays; d. Vacation; e. Sick Leave; f. Retirement; 6) Any alleged violation of this MOU. 7) Any other matter regarding the terms and conditions of employment. B. Informal Discussion of Grievance 1. When an employee or probationary employee has a grievance, the employee or probationary employee shall first informally discuss the matter with the employee’s or probationary employee’s immediate supervisor within five (5) working days from the date of the incident or decision generating the grievance. If, after a discussion with the immediate supervisor, the grievance has not been satisfactorily resolved, the employee or probationary employee shall have the right E-40 to informally discuss the grievance with the supervisor’s immediate superior. The informal discussion with the supervisor’s immediate superior shall occur within ten 10) working days from the date of the incident or decision generating the grievance. If, after such a discussion, the grievance has not been satisfactorily resolved, the employee or probationary employee shall have the right to file a formal grievance. 2. If an employee’s or probationary employee’s grievance is with his/her immediate supervisor or the supervisor’s immediate superior, and such employee or probationary employee reasonably believes that such grievance will not be resolved at that level, he/she may proceed to the next step of the grievance procedure. C. Formal Grievance Procedure The formal grievance procedure shall be used to resolve an employee’s or probationary employee’s grievance not satisfactorily resolved by informal discussion or otherwise allowed by this Rule. 1. An employee or probationary employee shall have the right to present a formal grievance in writing to the City Manager within fifteen (15) working days from the date of the incident or decision generating the grievance. All formal grievances shall state the reasons for the complaint and the employee’s suggested solution. 2. A formal grievance shall be timely presented to the City Manager. When the employee or probationary employee presents a formal grievance to the City Manager, the City Manager shall discuss the grievance with the employee or probationary employee. Within fifteen (15) working days after receipt of the formal grievance, the City Manager shall render a written decision. The decision of the City Manager shall resolve the grievance and no further review of the subject matter of the grievance shall be permitted. D. General Procedures 1. The employee or probationary employee and the CITY have the right to representation at any step in the grievance process. 2. Any grievance not filed or taken to the next step by the employee or probationary employee within the specified time limits shall be deemed settled on the basis of the last decision, and not subject to further reconsideration. By mutual agreement and for good cause, reasonable extensions of time may be given in writing to the employee or probationary employee by the City Manager at any step in the grievance procedure. 3. An employee or probationary employee who has filed a grievance shall suffer no discrimination for filing the grievance. E-41 XIV.Discipline Procedures A. Cause for Discipline Each of the following constitutes cause for discipline of any employee. It is the intent of these procedures to include as a cause for discipline any action or non -action by an employee which impedes or disrupts the performance of the CITY and its organizational component units, is detrimental to employees or public safety, violates properly established rules and procedures or adversely affects the reputation of the CITY, its officers or employees. Examples of causes for discipline include, but are not limited to: 1. Any violation of any written rule or regulation promulgated by CITY related to conduct or performance. 2. Fraud in securing appointment. 3. Incompetence. 4. Inefficiency. 5. Neglect of duty. 6. Dishonesty. 7. Violation of any law relating to conflicts of interest, whether contractual or financial. 8. Use, possession, purchase, sale, manufacture, distribution, transportation or dispensation of controlled substances or alcohol while on duty or on CITY premises, except for the use of prescribed controlled substances (1) as directed by the licensed health care provider prescribing controlled substances and in accordance with the manufacturer’s directions, and (2) in a manner not otherwise in violation of these procedures. 9. The use of any substance, controlled or purchased over-the-counter, which impairs the employee’s performance of his/her duties. 10. Unexcused absences. 11. Conviction of a felony or conviction of a misdemeanor involving moral turpitude, including but expressly not limited to, any conviction for any offense set forth in the City of Rancho Palos Verdes Policy for conducting Criminal Background Checks and Securing Received Criminal History Information. A plea or verdict of guilty or nolo contendere to a charge of a felony or any offense involving moral turpitude is deemed to be a conviction within the meaning of this section. E-42 12. Defrauding the CITY by making a false claim for compensation, benefits or reimbursements. 13. Making a false Workers’ Compensation Claim against the CITY. 14. Improper political activity which prevents the employee or other employees from the efficient performance of employment with the CITY, or which has a disruptive effect on the efficiency or integrity of the CITY service of the department in which such employee is employed. 15. Failure or refusal to cooperate with supervisory personnel or other employees. 16. Misuse or misappropriation of CITY property or funds. 17. Gambling for money or articles of value on CITY property or during working hours. 18. Tardiness. 19. Abuse of sick leave privileges. 20. Excessive absenteeism, which impairs the CITY’s ability to provide services or function effectively or efficiently. 21. Refusal to take and subscribe any oath or affirmation which is required by law in connection with his/her employment. 22. Refusing to report on official call of emergency. 23. Violation of departmental rules and regulations. 24. Intentionally misrepresenting information or facts in any statement, declaration or affidavit duly required of an employee. 25. Failure or refusal to carry out a lawful order or directive of a supervisor. 26. Asking, receiving or agreeing to receive any bribe, gratuity or reward of any kind upon any understanding that any employee’s action shall be influenced thereby, or shall be given in any particular manner, or upon any particular question or matter upon which any employee may be required to act in the employee’s capacity; or attempting by menace, deceit, suppression of truth, or any corrupt means to influence any employee to commit any act, conduct or omission which is clearly inconsistent, incompatible, in conflict with, or inimical to the best interests of the CITY. 27. Failure to observe or comply with safe working standards, to endanger, to injure, or to damage public property or the private property of any employee or E-43 member of the public through negligent, improper or careless conduct or use of equipment; or to permit such actions on the part of any employee under his/her supervision or control. 28. Conduct disrespectful to the public, elected and appointed CITY officials, supervisors, superiors, Department Heads, City Manager, Deputy City Manager or members of CITY boards and commissions. 29. Failure to report any criminal conviction and/or arrest pending final adjudication as required by the City of Rancho Palos Verdes Policy for Conducting Criminal Background Checks and Securing Received Criminal History Information. In the event that the CITY imposes disciplinary action for cause, including but not limited to any of the above acts or omissions, the employee shall have the right to contest or seek review of the disciplinary action or the basis thereof, in accordance with procedures set forth in this MOU. B. Types of Disciplinary Action Disciplinary actions include reprimands, suspensions, demotions, reductions in pay and dismissal, as defined below: 1. Verbal Reprimand. An oral warning that may be given to the employee in the event that a deficiency in performance or conduct is not of sufficient magnitude to warrant a more formal disciplinary action. A written record may be made of such conferences and placed in the employee’s personnel file with a copy provided to the employee. Verbal reprimands are not subject to appeal. However, the employee has the right to place in his/her personnel file a written response or rebuttal to any written record of verbal reprimand, provided that such response or rebuttal is submitted for inclusion in the file within thirty (30) days of the employee’s receipt of the written record. 2. Written Reprimand. A written statement relating to an action or omission which meets any of the grounds for disciplinary action listed in these procedures, indicating that there is cause for dissatisfaction with the employee’s services and that further disciplinary measures may be taken if the cause is not corrected. The written statement shall be placed in the employee’s personnel file, with a copy provided to the employee. Written reprimands are not subject to appeal. However, the employee has the right to place in his/her personnel file a written response or rebuttal to any written statement, provided that such response or rebuttal is submitted for inclusion in the personnel file within thirty (30) days of the employee’s receipt of the written statement. 3. Suspension. The temporary separation of the employee from CITY service without pay for disciplinary purposes for a period not to exceed thirty (30) days per occurrence. E-44 4. Demotion. A change in employment status from one position to another having a lower rate of pay and/or change in duties which are allocated to a class having a lower maximum rate of pay for disciplinary reasons. The disciplinary demotion may be temporary or permanent. 5. Reduction in Pay. A change in the salary of an employee to a lower rate within the same salary range for disciplinary reasons. 6. Dismissal. The discharge of the employee from CITY service for disciplinary reasons. Discharge and dismissal are used interchangeably in these procedures. C. Disciplinary Procedures 1. When an employee is to be suspended, demoted, reduced in pay or dismissed, a preliminary written notification shall be provided to the employee. The written notice shall include: a) The charges against the employee and reasons for the proposed disciplinary action to be taken; b) The proposed disciplinary action to be taken; c) Copies of the charges and materials on which the proposed action is based; and, d) A statement advising the employee that, before any proposed disciplinary action takes effect, the employee or his/her representative has the right to respond orally or in writing within five (5) working days from the employee’s receipt of the written notice. If the employee chooses to respond orally, a meeting (i.e., a Skelly meeting) will be scheduled to allow the employee to present his/her response to the proposed discipline. 2. Within ten (10) working days after the employee has had the opportunity to respond, the employee shall be notified in writing of any disciplinary action to be taken and the effective date of such disciplinary action. D. Appeal of Disciplinary Action 1. An employee who has been suspended, demoted, reduced in pay or dismissed for disciplinary reasons may appeal the disciplinary action. 2. In order to appeal the disciplinary action, the employee must file a written notice of appeal with the City Manager for a hearing within ten (10) working days after having been furnished with a copy of the notice of disciplinary action. E-45 E. Time of Hearing The hearing on the employee’s appeal shall be conducted within ninety (90) days after the employee’s filing of the written notice of appeal with the City Manager. The time limit may be extended by the City Manager for good cause and by agreement of the employee and the City Manager. F. Hearing Procedure The following procedure shall govern hearings on appeals of disciplinary action: 1. The City Manager may conduct the hearing or the City Manager may designate any third party to conduct the hearing. If the City Manager files the written statement to discipline an employee who works directly for the City Manager, the Deputy City Manager may conduct the hearing or the Deputy City Manager may designate any third party to conduct the hearing. 2. Hearings shall be conducted in the manner most conducive to determination of the truth, and the City Manager shall not be bound by technical rules of evidence. Decisions made shall not be invalidated by informality in the proceedings. 3. The City Manager shall make arrangements to have the hearing transcribed or recorded to preserve the proceedings and testimony. The employee may obtain a copy of the transcript or recording upon written request. 4. The City Manager shall determine the relevancy, weight and credibility of all testimony and evidence. 5. The City Manager shall base his/her findings and decision on the preponderance of the evidence presented. 6. The Department Head shall have the burden of proof. Each side will be permitted an opening statement and closing argument. The Department Head shall first present its witnesses and evidence to support the charges and disciplinary action. The employee shall then present his/her witnesses in defense. The Department Head may thereafter present witnesses and evidence in rebuttal. 7. Each side will be allowed to examine and cross-examine witnesses. All witnesses shall testify under oath. The City Manager may question any witness. 8. Both the Department Head and the employee may be represented by a designee or by legal counsel. The City Manager may obtain the legal advice of the City Attorney in performing the function of the hearing officer. 9. The City Manager shall, if requested by either side, subpoena witnesses and/or require the production of documents or other material evidence. E-46 10. The City Manager may, during a hearing, grant a continuance for any reason believed to be important to the reaching of a fair and proper decision. 11. Within thirty (30) days after the conclusion of the hearing, the City Manager shall prepare and serve on both sides a written decision setting forth the charges found to be sustained, and the reasons therefore, and the propriety of the disciplinary action imposed. The City Manager may sustain, reject or modify the disciplinary action imposed. If the City Manager rejects or modifies the disciplinary action imposed, all or part of any loss of the employee’s full compensation may be ordered restored. G. Finality of City Manager’s Decision The decision of the City Manager shall be final and conclusive. H. Judicial Review Any legal action to challenge any decision of the City Manager must be filed in a court of competent jurisdiction no later than ninety (90) days following the date the City Manager’s written decision becomes final as provided in California Code of Civil Procedure Section 1094.6. XV.Miscellaneous Procedures A. Transfers Transfers are permitted, subject to written consent of the Department Heads involved and the City Manager. Such changes are authorized only from one (1) position to another in the same class or to a position in another class having the same maximum salary limit and involving the performance of similar duties and requiring substantially the same qualifications. B. Reclassification The duties of positions that have changed materially may be allocated to a more appropriate class by the City Manager. An incumbent meeting the new qualifications of the reclassified position shall move with the position. C. Reinstatement With the written approval of the City Manager, a former employee or probationary employee may be reinstated (1) to his/her former position, if vacant; or, (2) to a vacant position in the same comparable class; provided that the employee or probationary employee left the CITY’s employ less than one (1) year prior to seeking reinstatement. The City Manager may require that a reinstated employee or probationary employee serve an initial-hire probationary period. E-47 D. Dress Dress should be appropriate for the position held and tasks to be completed. If a uniform is required, it should be well maintained and work correctly. “Friday” dress may be casual as long as clean and neat-appearing and responsive to the employee’s daily schedule of business contacts. XVI. Administrative Instructions and Departmental Policies and Procedures: A. Administrative Instructions: Without limiting the application of other Administrative Instructions, unless otherwise inconsistent with this MOU or the law, all employees are subject to the Employee Handbook dated February 2004 and Administrative Instructions 2-02 (Office Procedure), 2-03 (Workers’ Compensation Claims Procedures), 2-05 (Attendance), 2-09 (Gifts), 2-11 (Tuition Reimbursement Program), 2-12 (Outside Employment), 2-13 (Pets), 2-14 (Bulletin Boards), 7-01 (Safety Program), 8-01 (Use of City Vehicles), 8-02 (Use of Employee Vehicle for City Business), 8-05 (Computer Network Use), 8-07 (Electronic Mail and Internet Use) to the extent such instructions are not inconsistent with this MOU. Copies of the current Employee Handbook dated February 2004 and the current Administrative Instructions are available in the Administrative Instruction Manual and from the Human Resources Office. B. Departmental Policies and Procedures: Where a department or work group has adopted employment and workplace policies, procedures or other instructions, employees within that group are subject to those policies, procedures and instructions. This includes, but is not limited to Department of Planning, Building and Code Enforcement Department Procedures Manual. XVII. Written Notice Any written notice required to be given by the provisions of this MOU, unless herein otherwise specifically provided, may be given either by personal service or by mail. In the case of service by mail, the notice must be deposited in the United States mail, in a sealed envelope, with postage prepaid; addressed to the person on whom it is to be served; at the address in any notice given by him/her of his/her last known address, and, if there be no last known address, then addressed to him/her at the CITY (if still associated with the CITY in some capacity). Service by mail shall be deemed complete at the time of the deposit in the mail. XVIII. Outside Employment Employees and probationary employees shall be allowed to engage in employment other than their job with the CITY, with the understanding that CITY employment is the highest priority and such employment does not interfere with the performance of assigned duties and does not constitute a conflict of interest. The employee or probationary employee must notify the City Manager in writing regarding their outside employment. E-48 XIX. Dues Deduction At RPVEA’s request, the CITY shall deduct membership dues, initiation fees, and general assessments, as well as payment of any other membership benefit program sponsored by RPVEA, from the wages and salaries of members of RPVEA. RPVEA hereby certifies that it has and shall maintain all such deduction authorizations signed by the individual from whose salary or wages the deduction is to be made and shall not be required to provide a copy of an individual authorization to the CITY unless a dispute arises about the existence or terms of the authorization. RPVEA membership dues shall be deducted each pay period in accordance with CITY procedures and provisions of applicable law from the salary of each employee whose name is provided by RPVEA. The CITY shall provide for payroll deductions on each payroll period (twenty-four times per calendar year). The CITY shall remit the total amount of deductions to RPVEA within thirty (30) days of the date of the deduction. Any changes in RPVEA dues must be given to the City a minimum of thirty (30) days prior to change to accommodate changes to payroll. RPVEA shall indemnify the CITY from any claims relating to the CITY’s compliance with this Dues Deduction provision, except for any claims arising from CITY’s own negligence. XX. Severability If any provisions of this MOU are declared to be illegal or unenforceable by a court of competent jurisdiction, the remaining provisions of the MOU will continue in full force and effect. XXI. Job Description Class Specifications: The classification plan shall consist of job specifications, which shall set forth a descriptive title, typical duties and responsibilities, essential functions of the position, and the training, experience, and other qualifications necessary or desirable for the effective performance of each position within a classification. XXII. Internet Use and Electronic Mail Employees are allowed to use CITY computers for legal Internet and electronic mail access. However, personal use is to be kept to a minimum. No employee is allowed to download information from an unknown source. The CITY reserves the right to review any and all information contained on all CITY computers and no personal privacy is granted or guaranteed. Employees have no expectation of privacy in information contained in CITY computers. Any illegal use of the Internet on any CITY computer may result in disciplinary action, which may include termination. XXIII. Association Access to New Hires and Employee Information The CITY will notify RPVEA’s President in writing or via email regarding all new hires at least ten (10) days prior to the employee’s orientation unless there is an urgent need that E-49 was not reasonably foreseeable. Within the earlier of thirty (30) days after the date of hire or by the first pay period of the month following the hire of each newly hired employee, the CITY will provide the RPVEA President with the new employee’s name, job title, department, work location, work email, and work phone numbers. No other information from the CITY is being requested by RPVEA even though RPVEA may be entitled to such additional information under law. The new hire will receive a copy of the MOU with his/her new employee orientation packet. RPVEA shall be permitted one (1) hour for each orientation session to privately talk to new bargaining unit members to explain the rights and benefits under the MOU. The CITY will provide the RPVEA President a quarterly list of all employees in the represented bargaining unit, including the employee’s name, job title, department, work location, work email, and work phone number. The parties will mutually agree on a form to use to track said employee information. XXIV. Reopeners The parties shall reopen any provision of this MOU for the purpose of complying with any final order of a federal or state agency or court of competent jurisdiction requiring a modification or change in any provision or provisions of this MOU in order to comply with state or federal laws. The parties also agree to reopen the contract for the purpose of the following: 1. Drafting, ratifying, adopting and implementing an Employer-Employee Relations Resolution for the City; 2. Updating the City’s Personnel Rules and adding to the Definition of Terms for clarity; 3. Merging Competitive Personnel Rules with Management Personnel Rules in a single document; 4. Addressing the Maintenance Superintendent outstanding work schedule, call back and emergency call-in issues. E-50 SIGNATURE PAGE RPVEA MOU 2020-2021 2020 City of Rancho Palos Verdes Rancho Palos Verdes Employee Association Ara Mihranian—City Manager Matt Waters- President ti J it I/ell)` Colin J. Tanner—Chief Negotiator Robert Nemeth—Vice President Me* Ni e-ryAf \ Trang Nguyen— Director of Finance Becky Martin—Treasurer 9.117 /175 -----\.„ ------ Julie DeZiel—Human Resources Manager Rudy Monroy—Member IAfn)2---\ 01203.0021/646787 1 E-51 RPVEA / CITY MEMORANDUM OF UNDERSTANDING INDEX Topic Page # Accidental Death Insurance 13 Acting Pay 7 Administrative Instructions 34 Agency Shop 31 Attendance 26 Bereavement Leave 20 Callout Pay 9 COLA 4 Compensation – Regular 4 Compensatory Time 11 Deferred Compensation 14 Definition of Terms 1 Disciplinary Action 31 Disciplinary Appeal Process 32 Disciplinary Procedure 31 Discipline – Types of 31 Dress 34 Employee Assistance Program 12 Employee Expenses - Mileage/Parking 15 Family Medical Leave 23 Fringe Benefits 11 Grievance Procedure 26 Health Insurance 10 Holiday Leave - Paid 20 Incentive Pay Program 15 Internet Use & Electronic Mail 36 Job Descriptions 35 Jury Duty 20 Leaves – General Provisions 17 Layoff Process 24 Leave of Absence without Pay 21 Life Insurance 12 Long-Term Disability 13 Management Rights 4 Meals & Rest Breaks 25 Merit Advancement 6 Military Leave 22 Other Leaves 24 E-52 Topic Page # Outside Employment 35 Overtime Compensation 10 Performance Evaluations 5 Probationary Period 16 Probationary Period – Duration 16 Probationary Period – Rejection 17 Probationary Period – Termination 16 Promotional Advancement 6 Reclassification 34 Re-Employment List 25 Regular Appointment Following Probation 16 Reinstatement 34 Retirement Health Savings Account 12 Retirement Plans - CalPERS 13 Section 125 Flexible Benefit Plan 12 Severability Clause 35 Short Term Disability Plan 13 Sick Leave 19 Standby Pay 7 Term of Agreement 1 Top of Range 7 Transfer 34 Tuition Reimbursement 14 Unemployment Insurance 15 Vacation Leave 17 Wellness Leave 20 Workers’ Compensation 15 Work Schedule - Overtime Compensation 10 Work Schedule 25 Written Notice 35 E-53 RESOLUTION NO.2020-63 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, AMENDING, RESTATING, AND SUPERSEDING RESOLUTION NO. 2020-31 SETTING THE SALARY AND HOURLY COMPENSATION SCHEDULE FOR ALL EMPLOYEES IN CITY SERVICE, BASED UPON A MINIMUM WAGE INCREASE EFFECTIVE JANUARY 1, 2021 WHEREAS, the City Council adopted Resolution 2020-31 on June 2, 2020, that set the Salary and Hourly Compensation Schedule for Competitive, Confidential, Management, and Part-Time classifications; and WHEREAS,the City Council now desires to amend the City's Salary Schedule to reflect new salary ranges for part-time classifications based on a minimum wage increase effective January 1, 2021; and WHEREAS, Section 36506 of the California Government Code requires that the City Council fix compensation of all appointive officers and employees by resolution or ordinance; J and, WHEREAS, Rule V of the Personnel Rules of the City provides that in order to amend the City's Salary Schedule that changes must be made via Resolution; and, NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: Section 1: The salary and hourly ranges for City job classifications as set forth in Exhibit "A" which are attached hereto and incorporated herein by this reference, are adopted and are effective as of January 1, 2021. Section 2: Resolution No. 2020-31 is hereby amended, restated, and superseded and replaced by this resolution. PASSED,APPROVED and ADOPTED this 17th day of November 2020. 111/1/111 John ikshank, Mayor Attest. i_dig_O i-tyEmilyorn, City Clerk State of California County of Los Angeles ss City of Rancho Palos Verdes I, Emily Colborn, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2020-63 was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on November 17, 2020. roily Co orn, City Clerk EXHIBIT A E-54 Resolution No.2020-63 Exhibit A Salary and Hourly Schedule for the Competitive,Confidential,Management and Part-time Positions 111 Effective January 1,2021) OFFICIAL Annual Salary MonthlyForSalaryillustration purposes Hourly Salary COMPETITIVE POSITIONS BOTTOM TO TOP BOTTOM TO TOP BOTTOM TO TOP Account Clerk 51,827 -- 67,289 4,319 -- 5,607 24 92 -- 32 35 Accountant 75,789 -- 98,435 6,316 -- 8,203 36 44 -- 47 32 Accounting Manager 98,330 -- 127,708 8,194 -- 10,642 47 27 -- 61 40 Accounting Technician 58,665 -- 76,213 4,889 -- 6,351 28 20 -- 36 64 Administrative Analyst I 67,074 -- 87,105 5,590 -- 7,259 32 25 -- 41 88 Administrative Analyst II 67,077 -- 100,766 5,590 -- 8,397 32 25 -- 48 45 Administrative Analyst II(Records Management) 67,077 -- 100,766 5,590 -- 8,397 32 25 -- 48 45 Administrative Staff Assistant 57,922 -- 75,214 4,827 -- 6,268 27 85 -- 36 16 Assistant Engineer 84,186 -- 109,327 7,016 -- 9,111 40 47' -- ,52 56 Assistant Planner 70,571 -- 91,659 5,881 -- 7,638 33 93 -- 44 07 Associate Engineer 93,550 -- 121,476 7,796 -- 10,123 44 98 -- 58 40 Associate Planner 80,192 - 104,154 6,683 -- 8,680 38 55 -- 50 07 Building Inspector I 68,058 -- 88,361 5,672 -- 7,363 32 72 -- 42 48 Building Inspector II 76,211 -- 98,980 6,351 -- 8,248 36 64 -- 47 59 Cable TV Station Manager 80,192 -- 104,154 6,683 -- 8,680 38 55 -- 50 07 Code Enforcement Officer 67,607 -- 87,801 5,634 -- 7,317 32 50 -- 42 21 Deputy City Clerk 68,423 -- 88,893 5,702 -- 7,408 32 90 -- 42 74 Engineenng Technician 64,173 -- 83,338 5,348 -- 6,945 30 85 -- 40 07 Geographic Information Systems Coordinator 84,170 -- 109,333 7,014 -- 9, 111 40 47 -- 52 56 Lead Worker 59,438 -- 77,202 4,953 -- 6,434 28 58 -- 37 12 Maintenance Supenntendent 98,014 -- 127,291 8,168 -- 10,608 47 12 -- 61 20 Maintenance Supervisor 75,241 -- 95,331 6,270 -- 7,944 36 17 -- 45 83 Maintenance Worker Ill I 51,654 -- 67,150 4,305 -- 5,596 24 83, -- 32 28 Open Space&Trails Manager 89,813 -- 116,650 7,484 - 9,721 43 18 -- 56 08 Park Ranger 44,369 -- 57,631 3,697 -- 4,803 21 33 -- 27 71 Permit Clerk 50,844 -- 66,032 4,237 -- 5,503 24 44 - 31 75 Permit Technician 58,029 -- 75,335 4,836 -- 6,278 27 90 -- 36 22 Planning Technician 60,400 -- 78,411 5,033 -- 6,534 29 04 -- 37 70 Pnnopal Planner 100,599 -- 130,642 8,383 -- 10,887 48 36 -- 62 81 Project Manager 93,550 -- 121,476 7,796 -- 10,123 44 98 -- 58 40 Recreation Program Supervisor I 57,922 -- 75,214 4,827 -- 6,268 27 85 -- 36 16 Recreation Program Supervisor II 73,406 -- 95,331 6,117 -- 7,944 35 29 -- 45 83 Recreation Services Manager 86,010 -- 111,664 7,168 -- 9,305 41 35 -- 53 68 Senior Account Technician 65,705 -- 85,358 5,475 -- 7,113 31 59 -- 41 04 Senior Accountant 82,711 -- 108,285 6,893 -- 9,024 39 76 -- 52 06 Senior Administrative Analyst 86,893 -- 112,873 7,241 -- 9,406 41 78 -- 54 27 Senior Code Enforcement Officer 75,714 -- 98,330 6,310 -- '8,194 36 40 -- 47 27 Senior Engineer 104,775 -- 136,059 8,731 -- 11,338 50 37 -- 65 41 Senior Information Technician 89,874 -- 116,694 7,490 -- 9,725 43 21 -- 56 10 Senior Park Ranger 50,436 -- 65,503 4,203 -- 5,459 24 25 -- 31 49 Senior Planner 92,264 -- 119,833 7,689 -- 9,986 44 36 -- 57 61 Staff Assistant I 44,369 -- 57,641 3,697 -- 4,803 21 33 -- 27 71 Staff Assistant II 50,436 -- 65,503 4,203 -- 5,459 24 25 -- 31 49 Traffic Engineering Technician 64,173 -- 83,338 5,348 -- 6,945 30 85 -- 40 07 CONFIDENTIAL POSITIONS Accounting Supervisor 95,870 -- 124,531 7,989 -- 10,378 46 09 -- 59 87 Executive Assistant 68,347 -- 88,784 5,696 -- 7,399 32 86 -- 42 68 Human Resources Analyst 67,070 -- 100,770 5,589 - 8,398 32 25 -- 48 45 MANAGEMENT POSITIONS Assistant to the City Manager 97,325 -- 126,382 8,110 -- 10,532 Building Official 97,008' -- 164,257 8,084 -- 13,688 City Clerk 97,008 -- 164,257 8,084 -- 13,688 City Manager* 210,000 -- 210,000 17,500 -- 17,500 Deputy City Manager 118,024 -- 200,523 9,835 -- 16,710 Deputy Director of Community Development 103,609 -- 175,430 8,634 -- 14,619 Deputy Director of Finance 103,609 -- 175,430 8,634 -- 14,619 Deputy Director of Public Works 103,609 -- 175,430 8,634 -- 14,619 Deputy Director of Recreation&Parks 103,609 - 175,430 8,634 -- 14,619 Director of Community Development 118,024 -- 200,523 9,835 -- 16,710 Director of Finance 118,024 -- 200,523 9,835 -- 16,710 Director of Parks&Recreation 118,024 - 200,523 9,835 -- 16,710 Director of Public Works 118,024 -- 200,523 9,835 -- 16,710 Human Resources Manager 103,609 -- 175,430 8,634 -- 14,619 Information Technology Manager 97,008 -- 164,257 8,084 -- 13,688 Resolution No 2020-63 Exhibit A Page 1 of 3E-55 Resolution No.2020-63 Exhibit A Salary and Hourly Schedule for the Competitive,Confidential,Management and Part-time Positions Effective January 1,2021) Principal Civil Engineer 97,008 -- 164,257 8,084 -- 13,688 I I Resolution No 2020-63 Exhibit A Page 2 of 3E-56 Resolution No.2020-63 Exhibit A Salary and Hourly Schedule for the Competitive,Confidential,Management and Part-time Positions, Effective January 1,2021) OFFICIAL Hourly Rates PART-TIME POSITIONS BOTTOM TO TOP Administrative/Public Works/Cable Intern 14 00 -- 32 08 Code Enforcement Officer 32 49 -- 43 24 Park Ranger 18 41 -- 23 92 Permit Clerk 23 36 -- 30 34 Recreation Leader 14 00 -- 14 94 Recreation Leader II 14 90 -- 18 33 Recreation Specialist 18 41 -- 23 92 Staff Assistant I 21 84 -- 28 38 Staff Assistant II 24 85 -- 32 27 Television Producer 17 75 -- 35 51 Television Producer(On-Camera) 20 07 -- 40 76 Monthly AUTO ALLOWANCE Amount City Manager 700 Deputy City Manager 150 Director of Community Development 150 Director of Finance 150 Director of Public Works 150 Director of Recreation&Parks 150 City Manager salary set by contract agreement adopted by the City Council contract amended February 19,2020) I I Resolution No 2020-63 Exhibit A Page 3 of 3E-57 E-58 E-59