HomeMy WebLinkAboutC-4976 - PSA for Internal Alignment and Compensation AnalysisV�
AMENDMENT NO. ONE TO
PROFESSIONAL SERVICES AGREEMENT WITH
FOX LAWSON & ASSOCIATES,
A DIVISION OF GALLAGHER BENEFITS SERVICES, INC.,
FOR RECOMMENDATIONS TO EXECUTIVE BENEFITS
THIS AMENDMENT NO. ONE TO PROFESSIONAL SERVICES AGREEMENT
( "Amendment No. One "), is entered into as of this ItAday of October, 2011, by and
between the CITY OF NEWPORT BEACH, a California Municipal Corporation ( "City"),
and FOX LAWSON & ASSOCIATES, a Division of Gallagher Benefits Services, Inc., a
Delaware corporation whose address is P.O. Box 32985, Phoenix, AZ 85064 -2985
( "Consultant "), and is made with reference to the following:
1 s m RECITALS:
A. -On , 2011, City and Consultant entered into a Professional Services
Agreement ( "Agreement ") for the review and update of City job classifications
and executive compensation system services for the internal alignment and
compensation analysis ( "Project ").
B. City desires to enter into this Amendment No. One to reflect additional services
not included in the Agreement and to increase the total compensation.
C. City and Consultant mutually desire to amend the Agreement, as provided below.
NOW, THEREFORE, it is mutually agreed by and between the undersigned
parties as follows:
1. SERVICES TO BE PERFORMED
Section 2 of the Agreement, shall be supplemented to include the Scope of Services
dated October 5, 2011 which is attached hereto as Exhibit 'A' and incorporated herein
by reference. The City may elect to delete certain tasks of the Scope of Services at its
sole discretion.
2. COMPENSATION
Section 4.1 of the Agreement shall be amended in its entirety and replaced with the
following: City shall pay Consultant for the services on a time and expense not -to-
exceed basis in accordance with the provisions of this Section and the Schedule of
Billing Rates attached to the Agreement. Consultant's total amended compensation for
all work performed in accordance with this Agreement including all reimbursable items
and subconsultant fees, shall not exceed Fifty Thousand Dollars and no /100
($50,000.00) without prior written authorization from City ( "Total Amended
Compensation "). No billing rate changes shall be made during the term of this
Agreement without the prior written approval of the City.
3. INTEGRATED CONTRACT
Except as expressly modified herein, all other provisions, terms, and covenants set forth
in the Agreement shall remain unchanged and shall be in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment No.
One on the dates written below.
APPROVED AS TO FORM:
OFFICE OF THE CITY ATTORNEY
Date: (0041/1)
By:iL--
Aaron C. Harp
City Attorney 11�
AT
Da -
By:
Leilani I. Brown
City Clerk
CITY OF NEWPORT BEACH,
A California municipal corporation
Date: ?//i
By:
Dana Smith
Assistant City Manager
CONSULTANT: FOX LAWSON &
ASSOCIATES, a Division of Gallagher
Benefit Services, Inc., a Delaware
corporation.
Date: v'�z-sem ci
By;��
Bf6ce Lawson
Managing Director
Attachments: Exhibit A — Proposal to Provide Benefits Recommendations
jFox Lawson & Associates
a Division of Gallagher Benefit Services, Inc.
Compensation and Human Resources Specialists
October 5, 2011
Sent via e-mail to: dsmith@newportbeachca.gov
Ms. Dana Smith
Assistant City Manager
City of Newport Beach, CA
3300 Newport Blvd.
Newport Beach, CA 92663
P.O. Box 32985
Phoenix, AZ 85064.2985
Phone 6028441070
Fax 602. 8441071
www.foxlawson.com
Re: Proposal to Provide Benefits Recommendations
Ladies and Gentlemen:
In response to your request, Fox Lawson & Associates, a Division of Gallagher
Benefit Services, Inc. (FLA), is pleased to provide the following approach and cost
estimate to determine an appropriate executive benefits plan for the City. As
discussed, this plan would apply to the City's 11 executive level positions in order to
distinguish their level of responsibility and role relative to mid - managers within the
City.
Suggested Approach
One of the primary issues in developing a suggested benefits package of City
executives will be to understand what benefits are currently offered to executives
and other managers within the City, as well as benefits that are provided to
executives in other Cities with whom the City must compete. This information will
be needed to provide the basis for justifying publicly why additional benefits should
be offered to executives that are not provided to others, as well as to address any
concerns that the City is attempting to enrich incumbents in executive level
positions. As a result, we suggest the following steps:
Step 1: Compile Benefits Data From Other Agencies
In conjunction with the market compensation study that we will be conducting for the
City, we will expand the survey to request information regarding benefits that are
offered to executives in each jurisdiction that differ from those offered to other
management positions. We will do this by listing a range of executive level benefits
that we know are being offered by other employers and ask that each participant
indicate whether any of the benefits listed are offered by their jurisdiction, and if so,
MW Fox Lawson & Associates
.Div . d GaBaghn BxAt S., 1c
to further define the benefit offered and the cost of providing that benefit. We will
also request information regarding any other benefits that they may offer that are not
listed in the survey.
Step 2: Research Benefits Data Base
We will research executive level benefits and identify benefits that may be worth
consideration by the City even though they are not currently being offered by other
cities and organizations with whom the City competes for executive level talent.
Step 3: Prepare Report on Benefits
In conjunction with our final report on executive compensation levels, we will
include findings and recommendations regarding executive benefits that the City
may wish to consider.
Timing
The timing for this additional activity will run parallel with the market compensation
study and can be completed within the 90 -120 timeline previously agreed upon.
Cost
The additional cost to conduct the above research and analysis will not exceed
$8,000.
Should you require further information, or have questions regarding our proposal,
please contact either me at (602) 840 -1070 or bruce lawsonafoxlawson.com or
Devin Grdinic at devin grdinic @foxlawson.com.
Sincerely,
Bruce G. Lawson, MPA, CCP, IPMA -CP
Managing Director
Fox Lawson & Assodates 2
a DFisim ofQUNO erBenefit semm, Im.
PROFESSIONAL SERVICES AGREEMENT WITH
FOX LAWSON & ASSOCIATES,
A DIVISION OF GALLAGHER BENEFITS SERVICES, INC.,
FOR INTERNAL ALIGNMENT AND COMPENSATION ANALYSIS
THIS AGREEMENT FOR PROFESSIONAL SERVICES ( "Agreement') is made
'v and entered into as of this 3ft day of September, 2011 by and between the CITY OF
NEWPORT BEACH, a California Municipal Corporation ( "City "), and FOX LAWSON &
ASSOCIATES, a Division of Gallagher Benefits Services, Inc., a Delaware corporation
( "Consultant'), whose address is P.O. Box 32985, Phoenix, AZ 85064 -2985 and is
made with reference to the following:
RECITALS
A. City is a municipal corporation duly organized and validly existing under the laws
of the State of California with the power to carry on its business as it is now being
conducted under the statutes of the State of California and the Charter of City.
B. City is seeking to review and update its job classification and executive
compensation system.
C. City desires to engage Consultant to conduct a job evaluation study to determine
an appropriate internal alignment of current job classifications to identify a
simplified job classification structure ( "Project ").
D. Consultant possesses the skill, experience, ability, background, certification and
knowledge to provide the services described in this Agreement.
E. The principal member of Consultant for purposes of Project shall be Bruce G.
Lawson.
F. City has solicited and received a proposal from Consultant, has reviewed the
previous experience and evaluated the expertise of Consultant, and desires to
retain Consultant to render professional services under the terms and conditions
set forth in this Agreement.
NOW, THEREFORE, it is mutually agreed by and between the undersigned
parties as follows:
TERM
The term of this Agreement shall commence on the above written date, and shall
terminate on December 31, 2012 unless terminated earlier as set forth herein.
2. SERVICES TO BE PERFORMED
City and Contractor acknowledge that the above Recitals are true and correct and are
hereby incorporated by reference. Consultant shall diligently perform all the services
described in the Scope of Services attached hereto as Exhibit A and incorporated
herein by reference ( "Work' or "Services "). The City may elect to delete certain tasks of
the Scope of Services at its sole discretion.
3. TIME OF PERFORMANCE
3.1 Time is of the essence in the performance of Services under this
Agreement and the Services shall be performed to completion in a diligent and timely
manner. The failure by Consultant to perform the Services in a diligent and timely
manner may result in termination of this Agreement by City.
3.1.1 Notwithstanding the foregoing, Consultant shall not be responsible
for delays due to causes beyond Consultant's reasonable control. However, in the case
of any such delay in the Services to be provided for the Project, each party hereby
agrees to provide notice to the other party so that all delays can be addressed.
3.2 Consultant shall submit all requests for extensions of time for performance
in writing to the Project Administrator not later than ten (10) calendar days after the start
of the condition that purportedly causes a delay. The Project Administrator shall review
all such requests and may grant reasonable time extensions for unforeseeable delays
that are beyond Consultant's control.
3.3 For all time periods not specifically set forth herein, Consultant shall
respond in the most expedient and appropriate manner under the circumstances, by
either telephone, fax, hand - delivery or mail.
4. COMPENSATION TO CONSULTANT
4.1 City shall pay Consultant for the Services on a time and expense not -to-
exceed basis in accordance with the provisions of this Section and the Cost Proposal
attached hereto as Exhibit A and incorporated herein by reference. Consultant's
compensation for all Work performed in accordance with this Agreement, including all
reimbursable items and subconsultant fees, shall not exceed Forty -Five Thousand
Dollars and no /100 ($45,000.00) without prior written authorization from City. No
billing rate changes shall be made during the term of this Agreement without the prior
written approval of City.
4.2 Consultant shall submit monthly invoices to City describing the Work
performed the preceding month. Consultant's bills shall include the name of the person
who performed the Work, a brief description of the Services performed and /or the
specific task in the Scope of Services to which it relates, the date the Services were
performed, the number of hours spent on all Work billed on an hourly basis, and a
description of any reimbursable expenditures. City shall pay Consultant no later than
thirty (30) days after approval of the monthly invoice by City staff.
4.3 City shall reimburse Consultant only for those costs or expenses
specifically approved in this Agreement, or specifically approved in writing in advance
by City. Unless otherwise approved, such costs shall be limited and include nothing
more than the following costs incurred by Consultant:
Fox Lawson & Associates Page 2
4.3.1 The actual costs of subconsultants for performance of any of the
Services that Consultant agrees to render pursuant to this Agreement, which have been
approved in advance by City and awarded in accordance with this Agreement.
4.3.2 Approved reproduction charges.
4.3.3 Actual costs and /or other costs and/or payments specifically
authorized in advance in writing and incurred by Consultant in the performance of this
Agreement.
4.4 Consultant shall not receive any compensation for Extra Work performed
without the prior written authorization of City. As used herein, "Extra Work" means any
Work that is determined by City to be necessary for the proper completion of the
Project, but which is not included within the Scope of Services and which the parties did
not reasonably anticipate would be necessary at the execution of this Agreement.
Compensation for any authorized Extra Work shall be paid in accordance with the
Schedule of Billing Rates as set forth in Exhibit B.
5. PROJECT MANAGER
5.1 Consultant shall designate a Project Manager, who shall coordinate all
phases of the Project. This Project Manager shall be available to City at all reasonable
times during the Agreement term. Consultant has designated Bruce G. Lawsonto be its
Project Manager. Consultant shall not remove or reassign the Project Manager or any
personnel listed in Exhibit A or assign any new or replacement personnel to the Project
without the prior written consent of City. City's approval shall not be unreasonably
withheld with respect to the removal or assignment of non -key personnel.
5.2 Consultant, at the sole discretion of City, shall remove from the Project
any of its personnel assigned to the performance of Services upon written request of
City. Consultant warrants that it will continuously furnish the necessary personnel to
complete the Project on a timely basis as contemplated by this Agreement.
6. ADMINISTRATION
This Agreement will be administered by the City Manager's Office. Assistant City
Manager, Dana Smith or her designee, shall be the Project Administrator and shall
have the authority to act for City under this Agreement. The Project Administrator or her
authorized representative shall represent City in all matters pertaining to the Services to
be rendered pursuant to this Agreement.
7. CITY'S RESPONSIBILITIES
In order to assist Consultant in the execution of its responsibilities under this
Agreement, City agrees to, where applicable: Provide access to, and upon request of
Consultant, one copy of all existing relevant information on file at City. City will provide
all such materials in a timely manner so as not to cause delays in Consultant's Work
schedule.
Fox Lawson & Associates Page 3
'8. STANDARD OF CARE
8.1 All of the Services shall be performed by Consultant or under Consultant's
supervision. Consultant represents that it possesses the professional and technical
personnel required to perform the Services required by this Agreement, and that it will
perform all Services in a manner commensurate with community professional
standards. All Services shall be performed by qualified and experienced personnel who
are not employed by City, nor have any contractual relationship with City. By delivery of
completed Work, Consultant certifies that the Work conforms to the requirements of this
Agreement and all applicable federal, state and local laws and the professional standard
of care.
8.2 Consultant represents and warrants to City that it has, shall obtain, and
shall keep in full force in effect during the term hereof, at its sole cost and expense, all
licenses, permits, qualifications, insurance and approvals of whatsoever nature that is
legally required of Consultant to practice its profession. Consultant shall maintain a City
of Newport Beach business license during the term of this Agreement.
8.3 Consultant shall not be responsible for delay, nor shall Consultant be
responsible for damages or be in default or deemed to be in default by reason of strikes,
lockouts, accidents, or acts of God, or the failure of City to furnish timely information or
to approve or disapprove Consultant's Work promptly, or delay or faulty performance by
City, contractors, or governmental agencies.
9. HOLD HARMLESS
9.1 To the fullest extent permitted by law, Consultant shall indemnify, defend
and hold harmless City, its City Council, boards and commissions, officers, agents,
volunteers, and employees (collectively, the "Indemnified Parties ") from and against any
and all claims (including, without limitation, claims for bodily injury, death or damage to
property), demands, obligations, damages, actions, causes of action, suits, losses,
judgments, fines, penalties, liabilities, costs and expenses (including, without limitation,
attorney's fees, disbursements and court costs) of every kind and nature whatsoever
(individually, a Claim; collectively, "Claims "), which may arise from or in any manner
relate (directly or indirectly) to any breach of the terms and conditions of this
Agreement, any Work performed or Services provided under this Agreement including,
without limitation, defects in workmanship or materials or Consultant's presence or
activities conducted on the Project (including the negligent and /or willful acts, errors
and /or omissions of Consultant, its principals, officers, agents, employees, vendors,
suppliers, subconsultants, subcontractors, anyone employed directly or indirectly by any
of them or for whose acts they may be liable or any or all of them).
9.2 Notwithstanding the foregoing, nothing herein shall be construed to
require Consultant to indemnify the Indemnified Parties from any Claim arising from the
sole negligence or willful misconduct of the Indemnified Parties. Nothing in this
indemnity shall be construed as authorizing any award of attorney's fees in any action
on or to enforce the terms of this Agreement. This indemnity shall apply to all claims
and liability regardless of whether any insurance policies are applicable. The policy
Fox Lawson & Associates Page 4
limits do not act as a limitation upon the amount of indemnification to be provided by the
Consultant.
10. INDEPENDENT CONTRACTOR
It is understood that City retains Consultant on an independent contractor basis and
Consultant is not an agent or employee of City. The manner and means of conducting
the Work are under the control of Consultant, except to the extent they are limited by
statute, rule or regulation and the expressed terms of this Agreement. Nothing in this
Agreement shall be deemed to constitute approval for Consultant or any of Consultant's
employees or agents, to be the agents or employees of City. Consultant shall have the
responsibility for and control over the means of performing the Work, provided that
Consultant is in compliance with the terms of this Agreement. Anything in this
Agreement that may appear to give City the right to direct Consultant as to the details of
the performance or to exercise a measure of control over Consultant shall mean only
that Consultant shall follow the desires of City with respect to the results of the Services.
11. COOPERATION
Consultant agrees to work closely and cooperate fully with City's designated Project
Administrator and any other agencies that may have jurisdiction or interest in the Work
to be performed. City agrees to cooperate with the Consultant on the Project.
12. CITY POLICY
Consultant shall discuss and review all matters relating to policy and Project direction
with Cty's Project Administrator in advance of all critical decision points in order to
ensure the Project proceeds in a manner consistent with City goals and policies.
i [>�rrle] [i *ii
Consultant is responsible for keeping the Project Administrator and/or his /her duly
authorized designee informed on a regular basis regarding the status and progress of
the Project, activities performed and planned, and any meetings that have been
scheduled or are desired.
14.1 Without limiting Consultant's indemnification of City, and prior to .
commencement of Work, 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.
14.2 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
endorsement must be 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 contract. City reserves the right to require complete, certified
copies of all required insurance policies, at any time.
Fox Lawson & Associates Page 5
14.2.1 Consultant shall procure and maintain for the duration of the
contract insurance against claims for injuries to persons or damages to property, which
may arise from or in connection with the performance of the Work hereunder by
Consultant, his agents, representatives, employees or subconsultants. The cost of such
insurance shall be included in Consultant's bid.
14.3 Acceptable Insurers. All insurance policies shall be issued by an
insurance company currently authorized by the Insurance Commissioner to transact
business of insurance in the State of California, with an assigned policyholders' Rating
of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the
latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk
Manager.
14.4 Coverage Requirements.
14.4.1 Workers' Compensation Coverage. Consultant shall maintain
Workers' Compensation Insurance (Statutory Limits) and Employer's Liability Insurance
(with limits of at least one million dollars ($1,000,000)) for Consultant's employees in
accordance with the laws of the State of California, Section 3700 of the Labor Code In
addition, Consultant shall require each subconsultant to similarly maintain Workers'
Compensation Insurance and Employer's Liability Insurance in accordance with the
laws of the State of California, Section 3700 for all of the subconsultant's employees.
14.4.1.1 Any notice of cancellation or non - renewal of all
Workers' Compensation policies must be received by City at least thirty (30) calendar
days Oen (10) calendar days written notice of non- payment of premium) prior to such
change.
14.4.1.2 Consultant shall submit to City, along with the
certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its
officers, agents, employees and volunteers.
14.5 General Liability Coverage. Consultant shall maintain commercial general
liability insurance in an amount not less than one million dollars ($1,000,000) per
occurrence for bodily injury, personal injury, and property damage, including without
limitation, blanket contractual liability.
14.6 Automobile Liability Coverage. Consultant shall maintain automobile
insurance covering bodily injury and property damage for all activities of the Consultant
arising out of or in connection with Work to be performed under this Agreement,
including coverage for any owned, hired, non -owned or rented vehicles, in an amount
not less than one million dollars ($1,000,000) combined single limit for each accident.
14.7 Professional Liability (Errors & Omissions) Coverage. Consultant shall
maintain professional liability insurance that covers the Services to be performed in
connection with this Agreement, in the minimum amount of one million dollars
($1,000,000) limit per claim and in the aggregate.
14.8 Other Insurance Provisions or Requirements.
Fox Lawson & Associates Page 6
14.8.1 The policies are to contain, or be endorsed to contain, the following
provisions:
14.8.1.1 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 requirements 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.
14.8.1.2 Enforcement of Contract Provisions. 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.
14.8.1.3 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 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.
14.8.1.4 Notice of Cancellation. Consultant agrees to oblige
its insurance agent or broker and insurers to provide to City with thirty (30) days notice
of cancellation (except for nonpayment for which ten (10) days notice is required) or
nonrenewal of coverage for each required coverage.
14.9 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.
14.10 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.
15. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS
Except as specifically authorized under this Agreement, the Services to be provided
under this Agreement shall not be assigned, transferred contracted or subcontracted out
without the prior written approval of City. Any of the following shall be construed as an
assignment: The sale, assignment, transfer or other disposition of any of the issued
and outstanding capital stock of Consultant, or of the interest of any general partner or
joint venturer or syndicate member or cotenant if Consultant is a partnership or joint -
venture or syndicate or cotenancy, which shall result in changing the control of
Consultant. Control means fifty percent (50 %) or more of the voting power, or twenty-
five percent (25 %) or more of the assets of the corporation, partnership or joint- venture.
Fox Lawson & Associates Page 7
16. SUBCONTRACTING
The parties recognize that a substantial inducement to City for entering into this
Agreement is the professional reputation, experience and competence of Consultant.
Assignments of any or all rights, duties or obligations of the Consultant under this
Agreement will be permitted only with the express written consent of City. Consultant
shall not subcontract any portion of the Work to be performed under this Agreement
without the prior written authorization of City.
17. OWNERSHIP OF DOCUMENTS
17.1 Each and every report, draft, map, record, plan, document and other
writing produced (hereinafter "Documents'), prepared or caused to be prepared by
Consultant, its officers, employees, agents and subcontractors, in the course of
implementing this Agreement, shall become the exclusive property of City, and City
shall have the sole right to use such materials in its discretion without further
compensation to Consultant or any other party, subject to the limitations in Section 17.3.
Consultant shall, at Consultant's expense, provide such Documents to City upon prior
written request.
17.2 Documents, including drawings and specifications, prepared by
Consultant 1)ursuant to this Agreement are not intended or represented to be suitable
for reuse by City or others on any other project. Any use of completed Documents for
other projects and any use of incomplete Documents without specific written
authorization from Consultant will be at City's sole risk and without liability to
Consultant. Further, any and all liability arising out of changes made to Consultant's
deliverables under this Agreement by City or persons other than Consultant is waived
against Consultant and City assumes full responsibility for such changes unless City
has given Consultant prior notice and has received from Consultant written consent for
such changes.
17.3 Each party shall retain all right, title and interest in and to its respective
proprietary information including, but not limited to, proprietary job leveling /evaluation
methodology ( "Intellectual Property'). Each party shall use the other's Intellectual
Property only as provided, and shall not alter the Intellectual Property in any way, nor
shall it act or permit action in any way that would impair the rights of owning party in its
Intellectual Property. Each party acknowledges that its use of the other party's
Intellectual Property shall not create any right, title or interest in or to such Intellectual
Property. Each party shall have the right to monitor the quality of the other party's use
of its Intellectual Property. Additionally, each party shall notify the other promptly in
writing of any known infringement of the other's Intellectual Property. Any references to
a party's Intellectual Property shall contain the appropriate trademark, copyright or other
legal notice provided from time to time by owning party.
18. CONFIDENTIALITY
All Documents, including drafts, preliminary drawings or plans, notes and
communications that result from the Services in this Agreement, shall be kept
confidential unless City authorizes in writing the release of information.
19. INTELLECTUAL PROPERTY INDEMNITY
The Consultant shall defend and indemnify City, its agents, officers, representatives and
employees against any and all liability, including costs, for infringement of any United
States' letters patent, trademark, or copyright infringement, including costs, contained in
Consultant's drawings and specifications provided under this Agreement.
20. RECORDS
Consultant shall keep records and invoices in connection with the Work to be performed
under this Agreement. Consultant shall maintain complete and accurate records with
respect to the costs incurred under this Agreement and any Services, expenditures and
disbursements charged to City, for a minimum period of three (3) years, or for any
longer period required by law, from the date of final payment to Consultant under this
Agreement. All such records and invoices shall be clearly identifiable. Consultant shall
allow a representative of City to examine, audit and make transcripts or copies of such
records and invoices during regular business hours. Consultant shall allow inspection
of all Work, data, Documents, proceedings and activities related to the Agreement for a
period of three (3) years from the date of final payment to Consultant under this
Agreement.
21. WITHHOLDINGS
City may withhold payment to Consultant of any disputed sums until satisfaction of the
dispute with respect to such payment. Such withholding shall not be deemed to
constitute a failure to pay according to the terms of this Agreement. Consultant shall
not discontinue Work as a result of such withholding. Consultant shall have an
immediate right to appeal to the City Manager or his/her designee with respect to such
disputed sums. Consultant shall be entitled to receive interest on any withheld sums at
the rate of return that City earned on its investments during the time period, from the
date of withholding of any amounts found to have been improperly withheld.
22. ERRORS AND OMISSIONS
In the event of errors or omissions that are due to the negligence or professional
inexperience of Consultant which result in expense to City greater than what would
have resulted if there were not errors or omissions in the Work accomplished by
Consultant, the additional design, construction and /or restoration expense shall be
borne by Consultant. Nothing in this paragraph is intended to limit City's rights under the
law or any other sections of this Agreement.
23. CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS
City reserves the right to employ other Consultants in connection with the Project.
24. CONFLICTS OF INTEREST
24.1 The Consultant or its employees may be subject to the provisions of the
California Political Reform Act of 1974 (the "Act "), which (1) requires such persons to
disclose any financial interest that may foreseeably be materially affected by the Work
Fox Lawson & Associates Page 9
performed under this Agreement, and (2) prohibits such persons from making, or
participating in making, decisions that will foreseeably financially affect such interest.
24.2 If subject to the Act, Consultant shall conform to all requirements of the
Act. Failure to do so constitutes a material breach and is grounds for immediate
termination of this Agreement by City. Consultant shall indemnify and hold harmless
City for any and all claims for damages resulting from Consultant's violation of this
Section.
25. NOTICES
25.1 All notices, demands, requests or approvals to be given under the terms of
this Agreement shall be given in writing, and conclusively shall be deemed served when
delivered personally, or on the third business day after the deposit thereof in the United
States mail, postage prepaid, first -class mail, addressed as hereinafter provided. All
notices, demands, requests or approvals from Consultant to City shall be addressed to
City at:
Attention: Dana Smith, Assistant City Manager
City Manager's Office
City of Newport Beach
3300 Newport Boulevard
PO Box 1768
Newport Beach, CA 92658
Phone: 949 - 644 -3003
Fax: 949- 644 -3020
25.2 All notices, demands, requests or approvals from City to.Consultant shall
be addressed to Consultant at:
Attention: Bruce G. Lawson, Managing Director
Fox Lawson & Associates
A Division of Gallagher Benefit Services, Inc.
P.O. Box 32985
Phoenix, AZ 85064 -2985
Phone: 602 - 840 -1070
Fax: 602 - 840 -1071
26. CLAIMS
The Consultant and the City expressly agree that in addition to any claims filing
requirements set forth in the Contract and Contract documents, the Consultant shall be
required to file any claim the Consultant may have against the City in strict conformance
with the Tort Claims Act (Government Code sections 900 et seq.).
27. TERMINATION
27.1 In the event that either party fails or refuses to perform any of the
provisions of this Agreement at the time and in the manner required, that party shall be
deemed in default in the performance of this Agreement. If such default is not cured
Fox Lawson & Associates Page 10
within a period of two (2) calendar days, or if more than two (2) calendar days are
reasonably required to cure the default and the defaulting party fails to give adequate
assurance of due performance within two (2) calendar days after receipt of written
notice of default, specifying the nature of such default and the steps necessary to cure
such default, and thereafter diligently take steps to cure the default, the non - defaulting
party may terminate the'Agreement forthwith by giving to the defaulting party written
notice thereof.
27.2 Notwithstanding the above provisions, City shall have the right, at its sole
discretion and without cause, of terminating this Agreement at any time by giving seven
(7) calendar days prior written notice to Consultant. In the event of termination under
this Section, City shall pay Consultant for Services satisfactorily performed and costs
incurred up to the effective date of termination for which Consultant has not been
previously paid. On the effective date of termination, Consultant shall deliver to City all
reports, Documents and other information developed or accumulated in the
performance of this Agreement, whether in draft or final form.
28. STANDARD PROVISIONS
28.1 Compliance With all Laws. Consultant shall at its own cost and expense
comply with all statutes, ordinances, regulations and requirements of all governmental
entities, including federal, state, county or municipal, whether now in force or hereinafter
enacted. In addition, all Work prepared by Consultant shall conform to applicable City,
county, state and federal laws, rules, regulations and permit requirements and be
subject to approval of the Project Administrator and City.
28.2 Waiver. A waiver by either party of any breach, of any term, covenant or
condition contained herein shall not be deemed to be a waiver of any subsequent
breach of the same or any other term, covenant or condition contained herein, whether
of the same or a different character.
28.3 Integrated Contract. This Agreement represents the full and complete
understanding of every kind or nature whatsoever between the parties hereto, and all
preliminary negotiations and agreements of whatsoever kind or nature are merged
herein. No verbal agreement or implied covenant shall be held to vary the provisions
herein.
28.4 Conflicts or Inconsistencies. In the event there are any conflicts or
inconsistencies between this Agreement and the Scope of Services or any other
attachments attached hereto, the terms of this Agreement shall govern.
28.5 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 the Agreement or any other rule of
construction which might otherwise apply.
28.6 Amendments. This Agreement may be modified or amended only by a
written document executed by both Consultant and City and approved as to form by the
City Attorney.
Fox Lawson & Associates Page 11
28.7 Severability. If any term or portion of this Agreement is held to be invalid,
illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining
provisions of this Agreement shall continue in full force and effect.
28.8 Controlling Law And Venue. The laws of the State of California shall
govern this Agreement and all matters relating to it and any action brought relating to
this Agreement shall be adjudicated in a court of competent jurisdiction in the County of
Orange.
28.9 Egual Opportunity Employment. Consultant represents that it is an equal
opportunity employer and it shall not discriminate against any subcontractor, employee
or applicant for employment because of race, religion, color, national origin, handicap,
ancestry, sex or age.
28.10 No Attomev's Fees. In the event of any dispute or legal action arising
under this Agreement, the prevailing party shall not be entitled to attorney's fees.
28.11 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which together shall
constkute one and the same instrument.
Fox Lawson & Associates Page 12
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date: C4--30 - ((
By:
Aaron C. Harp
City Attorney
CITY OF NEWPORT BEACH,
A California municipal corporation
Date:
By: �Gt•'^'G"`�
Dana Smith
Assistant City Manager
ATTEST: I CONSULTANT: Fox
Date:' I Associates, a Division
Benefit Services, Irlc.,
BY: --�'KYP
Leilani I. Brown
City Clerk
Attachments
A 11-01055
''9L{ FOS®
corporation.
Date:
By:
Bruce Lawson
Managing Director
Exhibit A - Scope of Services & Cost Proposal
Lawson &
of Gallagher
a Delaware
Fox Lawson & Associates Page 13
Exhibit A
Scope of Services
and Cost Proposal
Fox Lawson & Associates Exhibit A
4WFox Lawson & Associates
a Division of Callagher Benefit Services, Inc.
Compensation and Hmnan Resources Speciahsls
August S, 2011
Sent via e-mail to: dsmith@)newportbeachca.gov
Ms. Dana Smith
Assistant City Manager
City of Newport Beach, CA
3300 Newport Blvd.
Newport Beach, CA 82M
P.O. &m 32985
Phoentx, AZ 850642985
Phone 6028441070
F=6024404071
wx %foxlawsmxom
Re: proposal to Conduct an Internal Alignment and Compensation Analysis
Ladies and Gentlemen:
In response to your request, Fox Lawson & Associates, a Division of Gallagher
Benefit Services, Inc. (FLA), a publically traded corporation organized in the State of
Delaware, is pleased to submit our proposal to assist the City of Newport Beach
(City) in reviewing and updating its job classification and executive compensation
system covering the City's approximately 300 current job titles /classificattons.
We believe a review of our proposal will demonstrate several characteristics that
will be advantageous to the City, including:
We have specialized in conducting classification and compensation studies in
government organizations throughout the country for over 30 years.
Our project team has worked together on over five hundred similar consulting
engagements and we have worked with some of the largest (up to 120,000
employees) government organizations in the country.
Our people are proven, experienced compensation professionals Each has
attained the CCP (Certified Compensation Professional) designation from
WorkfatWork, and/or the IPMA -CP (Certified Professional) designation from
the International Public Management Association for Human Resources, and
specialized degrees in HR Management/fndustrial Relations.
• Our practice's smaller organizational structure and managing director
interaction allow us to provide the City with senior level consultants who have
due experience to guide you through this assignment to a successful
Fox Lawson & A%ocia m
a Urvdm d C'a9,get &oeM Sovih Irc.
conclusion. We believe that your issues deserve the talent and experience
that our senior level personnel can bring to your project.
We take the time to understand your needs and our managing directors and
consultants are available to lead you in all phases of the project.
We have the technical experience to critically assess your clarification
structure and design a classification and pay system that meets your needs.
Detailed information about our firm and available resources can be found at
http-.! /www.fcWawsgn.com.
We have performed studies with these identical specifications for all sizes of
governmental organizations, including some of the largest cities in the nation. We
Pride ourselves on offering our clients a level of customer service and quality work
product that exceeds our competitors. While we are flexible and open to
modifications to the proposed work plan should we have over or underestimated
your needs, we believe our approach is tailored to your requirements and we will
be able to achieve your objectives for this project.
Our clients will attest to our ability to:
• Manage complex classification, compensation, and change assignments.
• Work with you as a team - we serve as mentors and technical experts to make
sure things go right.
• Deliver projects that sheet the individual and unique needs of our clients for
the future: we don't simply reorganize what you already have.
• Meet project tuaeli tes and budgets.
We applaud your efforts to review your compensation system at this time. We are
enthused about working with you and are prepared to begin work at your
instruction. We look Forward to developing a detailed schedule for the project to
address your needs as soon as possible. Should you require further information, or
have questions regarding our proposal, please contact me at (1802) 840 -1070 or
brace lawreo: ,JKoxJgyqs M.Sgg. l am authorized to commit the firm, and negotiate
the services provided to the City.
Sincerely,
Fex Lawson a.Assodaca
^ .o��cro�.e�satxur,
A. TABLE OF CONTENTS
Table of Contents
Proposal Summary
Technical Proposal 6
Detailed Work Plan 6
Study Schedule 17
Cost Proposal I8
ar�X 3
0 a' 1 r�
The intent of the project is to conduct a job evaluation study covering approximately
300 current job titles/classificadons and 737 current employees. The purpose is to
determine an appropriate internal alignment for each of the City's current job
classifications in order to identify jobs that perform the same type and level of work.
The ultimate objective is to determine what job classifications could be combined
into broader, more flexible, job classifications in a simplified job classification
structure.
The City is also seeking an executive compensation study consistent with the City
Council's adopted compensation philosophy, that would result in recommendations
for banding of salaries and executive benefits. Specifically, the City desires the
following tasks to be performed:
A review of the internal alignment of the 300 job classifications to determine an
appropriate internal alignment of jobs.
- We will review the current alignment and relationship of all jobs to other
jobs within the City. This will involve application of our Decision BandT"
Method of job evaluation in order to establish groupings of jobs based on
the type and level of work. The result of this process will enable the City
to then consolidate job classifications into a more flexible structure that
focuses on the type and level of work performed.
A comprehensive survey and analysis of the City's executive compensation and
benefits.
- We will conduct a market survey that will collect data on benefits
practices, actual compensation, and salary ranges to ensure City executive
jobs are paid competitively both externally and internally. Data will
reflect both public and private sector organizations consistent with the
Compensation Philosophy adopted by the.City Council. This will allow the
City to attract and retain well- qualified employees.
- We will develop a new pay structure for executive level positions that is
based on the concept of broadbanding.
- We will provide up to three transition plans for implementing the findings
of the study. Our recommendations will take into consideration the culture
and financial resources of the City, including the potential need for a multi-
year plan to implement the overall recommendations.
■ Throughout the process,. engagement of the City Council and management to
discuss the compensation philosophy and its implications, keeping them
apprised of the process of the study and obtaining input.
„ g axx
Based on our understanding of your needs, we have prepared a work plan that we
believe addresses your issues. The work plan consists of four major phases; these
phases are listed below.
Phase L• Project Planning and Briefings
Phase II: job Evaluation Study
Phase III: Compensation Study
Phase N: Final Report
The following pages identify the activities that are associated with each phase.
Continuous contact between the City and FLA will be maintained throughout the
contract.
During this project, we are mentors to the City and provide.work products that fit
your needs. In order to accomplish this study, we anticipate reasonable support
from the City in the following areas, for example:
• Discussion of the City's current systems.
• Completion and provision of information required to complete the study.
Scheduling of communication activities and management meetings.
a Timely and consolidated response to requests for information and the review and
discussion of our work product.
We.have:outlined the City's role in the study on a phase -by -Phase basis under the
City's Me section of the Work Plan.
Tvxt.aMn Assxiaus
• tynii�an d Gc BneB� 5a¢n, !rc.
TECHNICAL PROPOSAL
Phase I: Project Planning and Briefings
In Phase I, we will conduct a number of activities that will enable us to better manage
the study. We will assess your current classification and compensation system and
confirm our understanding of the City's philosophy and strategy, which will serve as
a guide for the remainder of the study phases. Most of the initial Phase of the study
will occur on -site with the City although we could also complete this activity via
conference call if more convenient for the City.
During this Phase, City personnel will assist Fl,A in assessing its current classification
and compensation systems to ensure that the current problems or concerns are
addressed. We anticipate most of the City's time in this phase will involve either an
on -site meeting or a telephone conference call involving the City's Project Team that
should include the Assistant City Manager, the Human Resources Director, and other
appropriate stakeholders, in addition to City Responsibilities outlined below.
In summary, we will perform the following:
Pay Philosophy
We will review the City's current compensation
philosophy and, in discussions with City officials, ensure
that we understand the Philosophy as adopted by the
City Council. If desired, we would be happy to meet
with the City Council to discum any specific issues or
concerns that may be identified such as the potential.
conflict between use of market data and cost of living
data in determining appropriate compensation levels.
Background
We will review the current policies and practices,
Review
budgets, organization. charts, etc. that affect the current
classification and compensation systems.
®
We will provide the City with communication guidelines
Cornavuaicatatono
that will assist the Human Resources Director in
addressing questions or concerns employees may have
during the study. Portions.of these guidelines can be
distributed to employees to inform them of the study and
assist in eliminating any anxiety employees may have
regarding the study.
Far Lawson 4 AssoGawas
,am�acasm nom.
6
A assessment of the st±enaf^s and weak. esses of your cmassification and
executive oomriensatior. systems.
Employee cc = Lrsoation guidelines.
The City will provide necessary documents and materials such as current job
descriptions, policses a:id procedures, and employee lists,
The City w t distribute -communications to employees informing them of
project status throughout the duration of the pre;ect; as appropriate and
necessary.
The City wriil coordinate t°.2 scheduling and logistics of a}1 meetings.
: ; i ox La%� a Avv natu
�cei 7
Phase II: job Evaluation Study
The purpose of job evaluation is to establish the internal worth of all job classes. The
basic premise of job evaluation dictates that the more a job is valued internally, the
more it should be compensated. It is also a valuable tool that can be used to
determine if current or proposed jobs are comparable to other jobs within the City
thereby enabling the City to combine multiple jobs into broader, more fleidbie, job
classes. job evaluation is also a tool that is effectively used for slotting classifications
into appropriate salary grades when market data are not available for certain
classifications, or for classifications that are not benchmarked.
We will use our Decision Bandw Method of job evaluation and apply it to all job
classifications. We will review the internal job evaluation hierarchy with the City
and modify it as required. The Assistant City Manager and the Human Resources
Director will be responsible for reviewing and approving the recommended job
evaluations as these evaluations will become the basis for determining potential
class consolidations.
In summary, we will perform the following
4WFmL�&Assoqam
Provision of t e Lecisicn send'! Method of job evaluation to the City for its use.
Pesullts of the job evaluations,
job evaluation training so that the City can continue to use ti e methodology
upon conclusion of this assessment.
An employee join evaluation handbook if a new JE method as implemented.
A report that can be used to inform employees of the lob evaluations, should
the City vrfsh to make the information available to employees.
'The City , li revie =x', prc . de feedback on, and approve r?i doo�,u ents crew-zed
by FLA mcluding . :o evaluations.
IT e Cis, of ? sc'cea _e the nanagesnent and BF training in the application of the
Decis on Banc,?' S ie'_sod of job evaluation.
'The City will communicate, the job evLuation results to iraernal audiences,
GI ox [aw & As iarL
Phase III: Executive Compensation Stady
The purpose of the compensation study is to ensure that your executive pay
structure is competitive with the relevant labor markets, including both the public
and the private sector. For the public sector, we will use the 13 agencies defined by
the City. We will also work with you to determine appropriate private sector labor
markets so that we can determine market rates where applicable. To facilitate
timely completion of the study, the compensation phase will begin upon FLA
confirmation of the City's compensation philosophy (Phase 1).
We will collect market data utilizing a data collection form customized to meet the
needs of the City. Our data collection form follows standard compensation
guidelines and is an effective and efficient form of collecting salary information. Our
questions are posed in a fashion that is easy for participants to answer, as well as
being easy to quantify and analyze. Participants can complete our data collection
forms in either hardeopy or electronic formats. Because the City has access to
Ca1PACS data, we will request your assistance in obtaining relevant data from that
source so that it can be integrated into the survey process.
FLA abides by WaddatWork guidelines in the collection and analysis of pay and
benefits data In order to encourage responses from organizations, we normally
pledge that data provided will be treated as confidential and that only summary or
aggregate results will be made public. Consequently, specific responses identified
by participants will not be provided to the City. This policy also abides by the
guidelines set forth by the US Department of justice and the Federal Trade
Commission in regards to the sharing of salary data However,. should the City
specifically request the detailed data, we are prepared to provide public sector data
by respondent (private sector data cannot be provided in this manner as outlined
below) so long as the City is willing to waive our liability relative to the
confidentiality of the data pursuant to the Sherman Anti-Trust Pict guidelines.
While we use proven procedures to maximize participation, we ultimately have no
control over other organizations' work schedules, and/or their desire or ability to
participate in a salary survey. We make no guarantee that we will obtain good data
for all jabs from each of the organizations that we invite to participate in the survey.
In our experience, we have found that private organizations do not typically
participate in smaller, customized surveys sponsored by government organizations.
Therefore, where appropriate and with the City's approval, we will draw information
from published data in order to provide a representation of.the private market. This
will assure accurate and valid private sector data is utilized in a cost efficient
manner. Where appropriate, we will also use available published data sources
including the Towers Watson, Mercer surveys, as well as approximately 300 other
salary :surveyethat are have available in our library.
osa .uK 10
One other item of significance is the number of organizations to be included in the
survey. Pursuant to the guidelines established by the US Department of Justice and
the Federal Trade Commission regarding the conduct of salary surveys relative to
the Sherman Anti-Trust Act, we must have at least five data points for each job in
order to use the data for purposes of drawing conclusions relative to market value.
Consequently, the number of survey participants becomes a critical element in
determining if the survey will meet applicable Federal guidelines.
We will analyze the market data using standard analytical tools such as regression
analysis. In addition, we will integrate the job evaluation results with the labor
market survey analysis to develop a classification and salary structure that reflects
the proper balance of internal and external equity.
During this phase, the City will be responsible for assisting FLA in selecting
organizations to survey and benchmark jobs to include in the survey.
In summary, we will perform the following:
w � • m - e
Define Labor
• We will work with you and select up to 30 participant
Market
organizations and/or data sources to survey or
otherwise' access within the City s defined recruitment
market(s).
• When determining organizations to include in the
survey, major considerations are size, geographic
location, and industry. If appropriate, the organizations
will vary based on the level of job surveyed (i.e.
different jobs have different recruiting markets).
Select Benchmark
• Sins: the focus of this survey will be executive level
jobs
jobs, we anticipate surveying all applicable jobs.
However, we will discuss the number of jobs with the
City and an appropriate number will be jointly selected.
Benchmark
• FLA will write benchmark summaries for the
Summarles
classifications selected to aid the participating
organizations in matching their classifications to the
City's, with final approval from the City. One critical
element is that we apply a 70% standard to matching
jobs. This means that a job must match the City's job to
a level of 70% or it cannot be used as a viable job match.
This is consistent with the standards set the US
Fox Lawson s Assodams
�acu� eegsm�«.b. 11
Department o of Justice and the Federal Trade
Commission relative to the conduct of'salary surveys.
Data Collection
a FLA will develop a customized data collection form to
Form
collect comparable pay and benefits data from the labor
market, with final approval from the City.
Collect Data
a We will distribute the data collection form and follow -up
with participants to encourage participation, answer
questions, and.ensure data quality. Status reports based
on weekly follow -up calls regarding survey participation
will be sent to the City. We will also access data from
published survey sources as necessary and appropriate
in order to incorporate private sector data into the
survey process.
W To encourage responses from organizations, we will
provide them with a summary of the survey results (i.e. a
participant report).
V'erif'y Data
a FLA will collect, enter, and analyze the compensation
and benefits data collected from participants. We will
follow -up with participants to ensure the accuracy of
benchmark matches. We perform many manual reviews
of the data, as well as a statistical review, including t-
tests, outlier analysis and others, to identify any extreme
data and to ensure validity of the data.
A We will apply geographic differentials to the data as
appropriate and necessary to ensure that the data are
reflective of the City's labor market and economic
conditions.
Detesanine
a FLA will analyze the current pay with the market to
Competitive
determine if the City leads, matches, or lags the market
Nature
in terms of both compensation and benefits based on the
City's philosophy.
ku tawson Asnctia�es
,uM„�dcn..es 13
Update Structure/
a We will utilize the job evaluation results, if appropriate,
Develop New
and market pay results to develop a new compensation
Structure
structure (or structures) or update the existing
structures; whichever is appropriate and according to
the pay strategy.
We will develop the structures with standard
compensation analytical tools, such as regression
analysis, expanding range spreads, and other tools as
appropriate to prevent pay compression, inequities, and
other problems commonly associated with salary
structures.
Transition
• PLA will discuss with the City how it can transition from
the existing system to the updated system
Considerations will be given to budget constraints and
current personnel practices. It is our intention to retain
and, where practical and feasible, expand on those
areas of the current program that meet the objectives set
forth by the City.
Compensation &
• We will provide the City with compensation guidelines
Benefit Guidelines
that describe how to administer the new compensation
system The compensation guidelines will address
issues such as fundamentals of compensation systems,
how to grant employee increases, how to deal with
promotions, transfers and demotions, and other
administrative issues.
ku tawson Asnctia�es
,uM„�dcn..es 13
A list of about 30 comparable orgazuzations /data sources to survey /access.
A list of benchmark jobs.
Benc % mark sumaaaries to assist participants in matching the=ir jobs to the City's.
Results of the salary su zey, mciuoing a deternunation of the competitiveness c
the City's pay practices and salary and benefits levels.
recosusr ended new/ updated aced salary structure(s)-
Recommended pay practices.
." a transition, fait c move rar n the current systern to the new system.
The C ;,,L1 ena -- that all interested earties J idur,, the organization including,
but no:1=nited to employees, management„ and the Council, approve the list of
survey organizations and benctunark jobs.
The City will ill revie•.;, provide feedback on, and approve all do -amens created
by FLF including the data collection form zuid sala�y strvctize.
As needed, f<^ e City % .ill provide contact information for each survey
participant.
The City %ill complete a data collection form as if the organization vve-re a
survey pa: ucinant.
The City-,&U r scuss with FLA criteria (senioxity, performance.
etc.) on which to develop tip to three (3) transition strategies.
1Wn-il Fox Lawson & Aswjdat
e�d�l was - 14
Phase IV: Final $Sport
We will prepare a summary of the processes used to conduct the study and the
related findings and recommendations. The City will then review and discuss the
report with FLA. Based on these discussions, FLA will update and finalize the report.
We will present the final report to the City's Management Team, the City Council
and employees, if appropriate. We will also develop a transition program to
implement the new system. I£ desired, FLA will also provide the City with an
executive summary that will apprise employees of the study process, results, and
recommendations. We have found that the executive summary is instrumental to
employees' understanding and acceptance of the project.
In summary, we will perform the following:
Draft Report I At a minimum, the draft report will include:
1. A detailed summary of the study process.
2. Results of the job evaluation study and internal
alignment study.
3. Results of the comparative salary and benefits surrey
and analysis for executive level positions.
4. A recommended executive compensation structure.
S. An analysis of the cost (budget) implications of the
recommendations.
6. Recommendations of how to transition from the
current system to the new system, including
employee communication methods.
7. Recommendations /revisions for salary administration
policies and procedures.
s. Recommendations on a process to update and keep
the system current (salary administration,
reclassifications, "red circle" rates, salary structure
updates, promotions, etc.)
1'oz Lw w & Amu,
.natio.acm�we�etns�...Kirc is
Final Report • Based on the City's review and recommended changes,
FLA will finalize the draft report and a final version will
be provided to the City.
We will present the findings and recommendations to
the City Council, Managers, and affected employees
upon request. This will allow all parties an opportunity
to ask questions and have a complete understanding of
the project.
• Report that summarizes all aspects of the study, which includes processes,
recommendations, cost (budget implications), implementation and transition
methods, administration guidelines, and other elements described above.
• Presentations to the City Council, Management Team, and employees upon
request
Employee communication materials.
The City will review, provide feedback on, and approve all documents created
by FLA including the draft report.
The City will coordinate the scheduling of the final meetings with the City
Council, management and employees.
We will follow -up at the end of Phase N with a client satisfaction survey to
ensure we have addressed your needs and to validate our performance.
fo"la s raAwmat"
,, 16
We are prepared to commence the work within one week of receiving your
authorisation to proceed
In today's world, speed is very important. however, given the significance of this
project, it is just as important for City officials, administrators, and employees to
have sufficient time to review and approve the recommendations of Fox Lawson &
Associates and to ensure proper communications occur. We have prepared a
timeline to ensure the City has the work products in an expeditious manner.
The following is an estimate to complete each phase by month. We will discuss the
details of each phase during Phase I and identify specific deadlines for the project at
that time. Such an approach is desirable at this time, since the City will be required
to provide some information to complete this study. We will also include weekly
conference calls with the City and FLA to ensure that the schedule is monitored
throughout the project.
PI`vx lawsom & Amdatm
17
#'. "! ' !
We understand the importance of this study and realise the delicate nature of government
spending. Therefore, we have proposed a fee schedule that is sensible and that generates
project results that will add value to the City. It will ensure the City has the ability to
attract, retain,.and motivate employees in providing quality services to its citizens and
ensure the system is not an administrative and/or costly burden to the City. Thus, our fees
to conduct the classification and compensation study outlined in the proposal (including
out of pocket expenses) will not exceed $40,000.
TOTAL COST $40,000
Our study costs are d xectly derived from estimating the number of hours needed to
perform the work and the level of consultant charged with the work. Fox Lawson typically
bills on a monthly basis up to the maximum of each deliverable. All expeaees are
iAcluded In this quote.
These fees include three on -site visits for appropriate RA staff: one during study initiation,
one scheduled as needed or requested by the City during the course of the study, and one
at the conclusion of the study for the presentation and final report. If additional trips are
necessary, we will bill these at our out -of- pocket costs plus a daily rate of $2,500.
We would not like fees to be the major impediment to acquiring the most experienced
Provider to address these important needs during this unprecedented time period.
Although we believe the work plan presented is the.optiuual approach to achieving the
work, we can explore options that may reduce the fees to fit your current budgets,
Future Assistance
$LA's primary objective is to provide the tools needed by our clients to maintain the
program in the future without continuing assistance. However, as with all major
assignments of this type, it is frequently necessary to evaluate the success of
implementation and to clarify arty problems that were not anticipated at the time of the
study. We are available to answer.questions pertaining to the study for one year
following the date of project completion at no addidlonai cast.
4WAm tawsm & dcd imm,akS� b. IS