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HomeMy WebLinkAboutAgenda Report - July 21, 2021 C-28AGENDA ITEM C4929 CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Adopt Resolution Approving a Total Compensation Survey on Classifications in the International Brotherhood of Electrical Workers Bargaining Unit Conducted by CPS HR Consulting MEETING DATE: July 21, 2021 SUBMITTED BY: Human Resources Manager RECOMMENDED ACTION: Adopt Resolution Approving a Total Compensation Survey on Classifications in the International Brotherhood of Electrical Workers Bargaining Unit Conducted by CPS HR Consulting. BACKGROUND INFORMATION: The Memorandum of Understanding (MOU) between the City and International Brotherhood of Electrical Workers (IBEW) Local Union 1245 expires on December 31, 2021. The City and IBEW are entering into negotiations for a successor MOU and the City desires to have a comprehensive total compensation survey completed to use during the negotiation process. Recently, the labor market for electric utility positions has become highly competitive and the City has experienced significant challenges to attract and retain qualified workers in many of the IBEW positions. It will be instrumental to the City's bargaining process to understand where our wages and benefits compare with the current labor market for these specialized classifications. In addition, it has been over ten (10) years since the City contracted for a comprehensive total compensation study and having a study performed will benefit the City for several years. The City received a proposal from CPS HR Consulting to prepare a comprehensive study. The proposed cost to prepare the study is not to exceed $24,750. Staff requests to that Council approve the proposal with CPS HR Consulting to complete the study. FISCAL IMPACT: The cost is not to exceed $24,750 FUNDING AVAILABLE: Funding to be split between Public Works and Electric Utility on a pro -rata basis as follows: $928.12 (53053001); $928.13 (56052001) and $22,893.75 (50060001.72450) Andrew Keys (111 13, 202114:15 PDT) Andrew Keys, Deputy City Manager/Internal Services Director Adele Post, Human Resources Manager APPROVED: Steve Schwabauer Stephen Schwabauer, City Manager AGREEMENT FOR PROFESSIONAL SERVICES ARTICLE 1 PARTIES AND PURPOSE Section 1.1 Parties THIS AGREEMENT is entered into on 2021, by and between the CITY OF LODI, a municipal corporation (hereinafter "CITY"), and CPS HR Consulting, a California Joint Powers Authority (hereinafter "CONTRACTOR"). Section 1.2 Purpose CITY selected the CONTRACTOR to provide the services required in accordance with attached Scope of Services, Exhibit A, attached and incorporated by this reference. CITY wishes to enter into an agreement with CONTRACTOR for Total Compensation Study for up to thirteen (13) benchmarked IBEW positions and up to seven (7) labor markets (hereinafter "Project") as set forth in the Scope of Services attached here as Exhibit A. CONTRACTOR acknowledges that it is qualified to provide such services to CITY. ARTICLE 2 SCOPE OF SERVICES Section 2.1 Scope of Services CONTRACTOR, for the benefit and at the direction of CITY, shall perform the Scope of Services as set forth in Exhibit A. Section 2.2 Time For Commencement and Completion of Work CONTRACTOR shall commence work pursuant to this Agreement, upon receipt of a written notice to proceed from CITY or on the date set forth in Section 2.6, whichever occurs first, and shall perform all services diligently and complete work under this Agreement based on a mutually agreed upon timeline or as otherwise designated in the Scope of Services. CONTRACTOR shall submit to CITY such reports, diagrams, drawings and other work products as may be designated in the Scope of Services. CONTRACTOR shall not be responsible for delays caused by the failure of CITY staff to provide required data or review documents within the appropriate time frames. The review time by CITY and any other agencies involved in the project shall not be counted against CONTRACTOR's contract performance period. Also, any delays due to weather, vandalism, acts of God, etc., shall not be counted. CONTRACTOR shall 1 remain in contact with reviewing agencies and make all efforts to review and return all comments. Section 2.3 Meetings CONTRACTOR shall attend meetings as may be set forth in the Scope of Services. Section 2.4 Staffing CONTRACTOR acknowledges that CITY has relied on CONTRACTOR's capabilities and on the qualifications of CONTRACTOR's principals and staff as identified in its proposal to CITY. The Scope of Services shall be performed by CONTRACTOR, unless agreed to otherwise by CITY in writing. CITY shall be notified by CONTRACTOR of any change of Project Manager and CITY is granted the right of approval of all original, additional and replacement personnel at CITY's sole discretion and shall be notified by CONTRACTOR of any changes of CONTRACTOR's project staff prior to any change. CONTRACTOR represents it is prepared to and can perform all services within the Scope of Services (Exhibit A) and is prepared to and can perform all services specified therein. CONTRACTOR represents that it has, or will have at the time this Agreement is executed, all licenses, permits, qualifications, insurance and approvals of whatsoever nature are legally required for CONTRACTOR to practice its profession, and that CONTRACTOR shall, at its own cost and expense, keep in effect during the life of this Agreement all such licenses, permits, qualifications, insurance and approvals, and shall indemnify, defend and hold harmless CITY against any costs associated with such licenses, permits, qualifications, insurance and approvals which may be imposed against CITY under this Agreement. Section 2.5 Subcontracts Unless prior written approval of CITY is obtained, CONTRACTOR shall not enter into any subcontract with any other party for purposes of providing any work or services covered by this Agreement. Section 2.6 Term The term of this Agreement commences on July 22, 2021 and terminates upon the completion of the Scope of Services or on October 31, 2021, whichever occurs first. z ARTICLE 3 COMPENSATION Section 3.1 Compensation CONTRACTOR's compensation for all work under this Agreement shall conform to the provisions of the Fee Proposal, attached hereto as Exhibit B and incorporated by this reference. CONTRACTOR shall not undertake any work beyond the scope of this Agreement unless such additional work is approved in advance and in writing by CITY. Section 3.2 Method of Payment CONTRACTOR shall submit invoices for completed work on a monthly basis, or as otherwise agreed, providing, without limitation, details as to amount of hours, individual performing said work, hourly rate, and indicating to what aspect of the Scope of Services said work is attributable. CONTRACTOR's compensation for all work under this Agreement shall not exceed the amount of the Fee Proposal. Section 3.3 Costs The Fee Proposal shall include all reimbursable costs required for the performance of the Scope of Services. Payment of additional reimbursable costs considered to be over and above those inherent in the original Scope of Services shall be approved in advanced and in writing, by CITY. Section 3.4 Auditing CITY reserves the right to periodically audit all charges made by CONTRACTOR to CITY for services under this Agreement. Upon request, CONTRACTOR agrees to furnish CITY, or a designated representative, with necessary information and assistance needed to conduct such an audit. CONTRACTOR agrees that CITY or its delegate will have the right to review, obtain and copy all records pertaining to performance of this Agreement. CONTRACTOR agrees to provide CITY or its delegate with any relevant information requested and shall permit CITY or its delegate access to its premises, upon reasonable notice, during normal business hours for the purpose of interviewing employees and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with this requirement. CONTRACTOR further agrees to maintain such records for a period of three (3) years after final payment under this Agreement. 3 ARTICLE 4 MISCELLANEOUS PROVISIONS Section 4.1 Nondiscrimination In performing services under this Agreement, CONTRACTOR shall not discriminate in the employment of its employees or in the engagement of any sub CONTRACTOR on the basis of race, color, religion, sex, sexual orientation, marital status, national origin, ancestry, age, or any other criteria prohibited by law. Section 4.2 ADA Compliance In performing services under this Agreement, CONTRACTOR shall comply with the Americans with Disabilities Act (ADA) of 1990, and all amendments thereto, as well as all applicable regulations and guidelines issued pursuant to the ADA. Section 4.3 Indemnification and Responsibility for Damage CONTRACTOR to the fullest extent permitted by law, shall indemnify and hold harmless CITY, its elected and appointed officials, directors, officers, employees and volunteers from and against any claims, damages, losses, and expenses (including reasonable attorney's fees and costs), arising out of performance of the services to be performed under this Agreement, provided that any such claim, damage, loss, or expense is caused by the negligent acts, errors or omissions of CONTRACTOR, any subcontractor employed directly by CONTRACTOR, anyone directly or indirectly employed by any of them, or anyone for whose acts they may be liable, except those injuries or damages arising out of the active negligence, sole negligence, or sole willful misconduct of the City of Lodi, its elected and appointed officials, directors, officers, employees and volunteers. CITY may, at its election, conduct the defense or participate in the defense of any claim related in any way to this indemnification. If CITY chooses at its own election to conduct its own defense, participate in its own defense, or obtain independent legal counsel in defense of any claim related to this indemnification, CONTRACTOR shall pay all of the costs related thereto, including without limitation reasonable attorney fees and costs. The defense and indemnification obligations required by this Agreement are undertaken in addition to, and shall not in any way be limited by the insurance obligations set forth herein. Section 4.4 No Personal Liability Neither the City Council, nor any other officer or authorized assistant or agent or City employee shall be personally responsible for any liability arising under this Agreement. 4 Section 4.5 Responsibility of CITY CITY shall not be held responsible for the care or protection of any material or parts of the work described in the Scope of Services prior to final acceptance by CITY, except as expressly provided herein. Section 4.6 Insurance Requirements for CONTRACTOR CONTRACTOR shall take out and maintain during the life of this Agreement, insurance coverage as set forth in Exhibit C attached hereto and incorporated by this reference. Section 4.7 Successors and Assigns CITY and CONTRACTOR each bind themselves, their partners, successors, assigns, and legal representatives to this Agreement without the written consent of the others. CONTRACTOR shall not assign or transfer any interest in this Agreement without the prior written consent of CITY. Consent to any such transfer shall be at the sole discretion of CITY. Section 4.8 Notices Any notice required to be given by the terms of this Agreement shall be in writing signed by an authorized representative of the sender and shall be deemed to have been given when the same is personally served or upon receipt by express or overnight delivery, postage prepaid, or three (3) days from the time of mailing if sent by first class or certified mail, postage prepaid, addressed to the respective parties as follows: To CITY: City of Lodi 221 West Pine Street P.O. Box 3006 Lodi, CA 95241-1910 Attn: Adele Post, Human Resources Manager To CONTRACTOR: CPS HR Consulting 2450 Del Paso Road, Suite 220 Sacramento, CA 95834 Attn: Vicki Quintero Brashear Section 4.9 Cooperation of CITY CITY shall cooperate fully and in a timely manner in providing relevant information it has at its disposal relevant to the Scope of Services. Section 4.10 CONTRACTOR is Not an Employee of CITY CONTRACTOR agrees that in undertaking the duties to be performed under this Agreement, it shall act as an independent contractor for and on behalf of CITY and not an employee of CITY. CITY shall not direct the work and means for accomplishment of the services and work to be performed hereunder. CITY, however, retains the right to 5 require that work performed by CONTRACTOR meet specific standards without regard to the manner and means of accomplishment thereof. Section 4.11 Termination CITY may terminate this Agreement, with or without cause, by giving CONTRACTOR at least ten (10) days written notice. Where phases are anticipated within the Scope of Services, at which an intermediate decision is required concerning whether to proceed further, CITY may terminate at the conclusion of any such phase. Upon termination, CONTRACTOR shall be entitled to payment as set forth in the attached Exhibit B to the extent that the work has been performed. Upon termination, CONTRACTOR shall immediately suspend all work on the Project and deliver any documents or work in progress to CITY. However, CITY shall assume no liability for costs, expenses or lost profits resulting from services not completed or for contracts entered into by CONTRACTOR with third parties in reliance upon this Agreement. Section 4.12 Confidentiality CONTRACTOR agrees to maintain confidentiality of all work and work products produced under this Agreement, except to the extent otherwise required by law or permitted in writing by CITY. CITY agrees to maintain confidentiality of any documents owned by CONTRACTOR and clearly marked by CONTRACTOR as "Confidential" or "Proprietary", except to the extent otherwise required by law or permitted in writing by CONTRACTOR. CONTRACTOR acknowledges that CITY is subject to the California Public Records Act. Section 4.13 Applicable Law, Jurisdiction, Severability, and Attorney's Fees This Agreement shall be governed by the laws of the State of California. Jurisdiction of litigation arising from this Agreement shall be venued with the San Joaquin County Superior Court. If any part of this Agreement is found to conflict with applicable laws, such part shall be inoperative, null, and void insofar as it is in conflict with said laws, but the remainder of this Agreement shall be in force and effect. In the event any dispute between the parties arises under or regarding this Agreement, the prevailing party in any litigation of the dispute shall be entitled to reasonable attorney's fees from the party who does not prevail as determined by the San Joaquin County Superior Court. Section 4.14 Captions The captions of the sections and subsections of this Agreement are for convenience only and shall not be deemed to be relevant in resolving any question or interpretation or intent hereunder. 6 Section 4.15 Integration and Modification This Agreement represents the entire understanding of CITY and CONTRACTOR as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This Agreement may not be modified or altered except in writing, signed by both parties. Section 4.16 Contract Terms Prevail All exhibits and this Agreement are intended to be construed as a single document. Should any inconsistency occur between the specific terms of this Agreement and the attached exhibits, the terms of this Agreement shall prevail. Section 4.17 Severability The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement. Section 4.18 Ownership of Documents All documents, photographs, reports, analyses, audits, computer media, or other material documents or data, and working papers, whether or not in final form, which have been obtained or prepared under this Agreement, shall be deemed the property of CITY. Upon CITY's request, CONTRACTOR shall allow CITY to inspect all such documents during CONTRACTOR's regular business hours. Upon termination or completion of services under this Agreement, all information collected, work product and documents shall be delivered by CONTRACTOR to CITY within ten (10) calendar days. CITY agrees to indemnify, defend and hold CONTRACTOR harmless from any liability resulting from CITY's use of such documents for any purpose other than the purpose for which they were intended. Section 4.19 Authority The undersigned hereby represent and warrant that they are authorized by the parties to execute this Agreement. Section 4.20 Federal Transit Funding Conditions ❑ If the box at left is checked, the Federal Transit Funding conditions attached as Exhibit D apply to this Agreement. In the event of a conflict between the terms of this Agreement or any of its other exhibits, and the Federal Transit Funding Conditions, the Federal Transit Funding Conditions will control. Section 4.21 Counterparts and Electronic Signatures This Agreement and other documents to be delivered pursuant to this Agreement may be executed in one or more counterparts, each of which will be deemed to be an 7 original copy and all of which, when taken together, will be deemed to constitute one and the same agreement or document, and will be effective when counterparts have been signed by each of the parties and delivered to the other parties. Each party agrees that the electronic signatures, whether digital or encrypted, of the parties included in this Agreement are intended to authenticate this writing and to have the same force and effect as manual signatures. Delivery of a copy of this Agreement or any other document contemplated hereby, bearing an original manual or electronic signature by facsimile transmission (including a facsimile delivered via the Internet), by electronic mail in "portable document format" (".pdf') or similar format intended to preserve the original graphic and pictorial appearance of a document, or through the use of electronic signature software will have the same effect as physical delivery of the paper document bearing an original signature. IN WITNESS WHEREOF, CITY and CONTRACTOR have executed this Agreement as of the date first above written. ATTEST: JENNIFER CUSMIR City Clerk APPROVED AS TO FORM: JANICE D. MAGDICH, City Attorney CITY OF LODI, a municipal corporation STEPHEN SCHWABAUER City Manager CPS HR Consulting, a California Joint Powers Authority By: Name Title: Vicki Quintero Brashear Director of Products and Services Attachments: `- Exhibit A — Scope of Services Exhibit B — Fee Proposal Exhibit C — Insurance Requirements Exhibit D — Federal Transit Funding Conditions (if applicable) Funding Source: 50060001.27450 $22,893.75, 53053001 $928.12, 56052001 $928.13 (Business Unit & Account No.) Doc ID: CA: Rev.01.2021_elecsing 8 PROPOSAL City of Lodi Total Compensation Study Originally submitted: June 29, 2021 Updated: July 9, 2021 SUBMITTED BY: VICKI QUINTERO BRASHEAR Director of Products and Services CPS HR Consulting 2450 Del Paso Road, Suite 220 Sacramento, CA 95834 P: 916-471-3481 vbrashear@cpshr.us Tax ID: 68-0067209 www.cpshr.us Your Path to Performance CPS HIR � CONSULTING Table of Contents Experience and Qualifications.............................................................3 About CPS HR Consulting........................................................................ 3 Distinguishing Characteristics............................................................ 3 Methodology and Approach..............................................................4 Compensation Study Work Plan............................................................. 4 Timeline....................................................................................................7 FeeStructure...........................................................................................8 Professional Fixed Fee..............................................................................8 Pricing Assumptions............................................................................ 8 BillingTerms.......................................................................................... 8 PricingPhilosophy.................................................................................... 9 2450 Del Paso Road, Suite 220, Sacramento, CA 95834 www.cpshr.us Page I i CPS HIS A=,,CONSULTING July 9, 2021 Adele Post Human Resources Manager City of Lodi 221 W. Pine Street Lodi, CA 95241 Submitted via e-mail to: apost@lodi.gov Subject: Total Compensation Study Dear Ms. Post: CPS HR Consulting (CPS HR) is pleased to submit this updated proposal to the City of Lodi (City) to provide compensation consulting services. With a rich history of assisting government agencies with their compensation studies, we at CPS HR are confident that we can provide expert solutions to meet the City's requirements and objectives. At CPS HR, we pride ourselves in establishing and nurturing long-term relationships with the agencies we serve as we live out our mission of bringing excellence in Human Resources to the public sector. We look forward to the opportunity to work with the City of Lodi on this important project and to partner with your organization into the future. Thank you for this opportunity; we welcome the opportunity to discuss adjustments to scope to best meet the needs of the City, while still ensuring the accuracy and integrity of the project. Should you have any questions, please do not hesitate to contact me or Justin at the contact information above. Sincerely, Vicki Quintero Brashear Director of Products and Services 2450 Del Paso Road, Suite 220, Sacramento, CA 95834 www.cpshr.us Page I ii Proposal to City of Lodi Total Compensation Study Experience and Qualifications About CPS HR Consulting CPS HR is an innovative, client -centered human resources and management consulting firm specializing in solving the unique problems and challenges faced by government and non-profit agencies. As a self-supporting public agency, we understand the needs of public sector clients and have served as a trusted advisor to our clients since 1985. Our mission is to promote human resource excellence in the public sector and our vision is to enable people to realize the promise of public service. CPS HR has been providing classification and compensation services to state, federal, and local governments along with special districts and non-profit organizations for over 35 years. We have performed many studies with agencies of similar size and scope as the City of Lodi. Additionally, the references and project list we have included provide further clarity around the type of classification and compensation projects with which we have worked. With these examples, we have shown how we have collected data, performed analyses on said data, made recommendations, and worked successfully with our partners/clients. Distinguishing Characteristics Depth of experience working in public agencies. CPS HR is a joint powers authority, and as such, our charter mandates that we provide services exclusively to public agencies and non -profits. CPS HR has conducted hundreds of classification and compensation related studies for cities, counties, courts, special districts, water and utilities, and higher education institutions. CPS HR staffing. CPS HR employs the most experienced staff members. Many of our staff have both public and private classification and compensation experience, they are diligent in their work, listen to and understand the needs of our clients, and possess advanced education and certifications such as SHRM, IPMA, World at Work, etc. Automated Solution. CPS HR utilizes a proprietary system called Comp Calculator for the management and analysis of compensation survey data. The Comp Calculator is a web -based program that allows for the data entry of survey data on an agency -by -agency basis and then generates a separate datasheet within Excel for each surveyed classification. We can also provide access to shared documents through our SharePoint"' website and collaborate through Microsoft TeamsTM Use of best practices. CPS HR applies best practices and utilizes proven classification and compensation principles in all our engagements. Quality and tailored services. CPS HR delivers quality and tailored classification and compensation services to better meet each client's unique study goals and objectives. CPS HR CONSULTING Page 13 Proposal to City of Lodi Total Compensation Study Methodology and Approach Compensation Study Work Plan The compensation work plan outlined in this section is intended to define all tasks within a comprehensive total compensation study from labor market selection to final reports, and the types of deliverables associated with each task. CPS HR identifies data points collected for base salary studies in addition to total compensation. Task 1— Review the City's Background Materials. Upon contract execution, CPS HR will request background information from the City to ensure our Project Manager and Project Team are prepared for the initial meeting. • Compensation philosophy and • Budget Information strategy • Memorandums of Understanding • Salary schedules (MOUS) • Benefits summaries • Compensation policies and procedures • Other documents relevant to the study The CPS HR Project Manager will coordinate activities through and report to the City's Internal Project Manager and other designated key stakeholders. Client Responsibilities and/or Pricing Assumptions Associated with Task: ■ The client will upload electronic copies of all documents to a shared online site provided by CPS HR. Task 2 — Initial Project Meeting/Labor Market Agency and Benchmark Classifications Confirmation. The CPS HR Project Manager will meet with the City's Internal Project Manager and any other designated stakeholders to discuss the study methodologies, deliverables, timelines, communication, and data collection methods. The CPS HR Project Manager will seek to understand the City's compensation philosophy in this meeting. Additionally, the CPS HR Project Manager will discuss the following elements of compensation policy: ■ Labor Market Agency Selection —We understand that the City has an identified list which will be utilized for this study ■ Additional topics include: • Labor market position (i.e., median, mean, or other percentile) • Benchmark classifications — We understand that the City has an identified list which will be utilized for this study • Elements of total compensation to be surveyed CPS HR CONSULTING Page 14 Proposal to City of Lodi Total Compensation Study Client Responsibilities and/or Pricing Assumptions Associated with Task: ■ It is assumed that no more than 13 benchmark classifications will be identified (and will be provided by the client). ■ It is assumed that no more than 7 labor market agencies will be selected for comparison (and will be provided by the client). Task 3 — Design, Develop, and Distribute the Survey Instrument. The CPS HR Project Team will develop a comprehensive survey instrument to ensure the effective collection of compensation data from each of the survey agencies. For a total compensation study, the following elements of total compensation are added to the base salary survey: (i) Cash add-ons premium pays such as longevity pay and deferred compensation; (ii) Agency contribution to medical, dental, and vision programs; (iii) Agency contributions to defined -benefit retirement programs and Social Security practices; and (iv) Paid time off practices such as Holiday leave, vacation and sick leave, and administrative leave. Additional benefits and/or policies can be collected as agreed upon. Task 4 — Review, Analyze, and Validate Labor Market Survey Data. CPS HR begins labor market data collection by researching available information online to make preliminary classification matches and obtain benefits data. The CPS HR Project Team will reach out to labor market agencies to confirm and/or complete survey data after completing as much pre -work as possible. We find that this initial collection effort results in greater participation from the labor market agencies. Once CPS HR has completed their survey analysis tasks, the CPS HR Project Manager will audit the final data as part of our quality review process. Classification matching includes reviewing agency background materials such as copies of classification specifications, organization charts, staffing information, and other useful materials to substantiate the accuracy of the comparability of the matches. It is critical that the CPS HR Project Team review such documents since titles alone can often be misleading and should not be relied upon. To determine whether a match from a labor market agency is comparable to the City's benchmark, CPS HR utilizes a whole job analysis methodology; this commonly used methodology analyzes the job as a whole, rather than by individual factors, by evaluating the core duties and responsibilities, the nature and level of work performed, and the minimum qualifications to determine whether the classification is comparable enough to be utilized as a match. The methodology recognizes slight differences in duties assigned to matches from other labor market agencies which do not impact the type, nature, and level of work performed. Matches should not be so broad that they include classifications performing dissimilar work, or work done at a higher or lower level, but they also should not be so narrow that they exclude matches doing comparable work, with slight differences in work that do not change the level and nature of work. CPS HR CONSULTING Page 15 Proposal to City of Lodi Total Compensation Study Client Responsibilities and/or Pricing Assumptions Associated with Task: ■ Should any labor market agencies be non-responsive to requests for information, we will provide the City with contact information and request that they use their professional contacts to follow up on CPS HR's behalf. We have found this approach to be beneficial. ■ The City may add additional labor market agencies should any in the initial selection be non-responsive or not provide sufficient matches at an additional cost. ■ Responsiveness of labor market agencies is absolutely critical to maintaining the agreed timeline. An amended timeline will be provided by the CPS HR Project Manager if the data collection period is pushed out. Any contract amendment needed due to timeline shift will be discussed with the City at the appropriate point. Task 5— Design and Develop Data Spreadsheets. CPS HR will develop an individual data sheet for each survey classification that presents the comparable classification used in each agency with the relevant data associated with that classification, such as the position ranking within the labor market and salary range minimum and maximum. The labor market data analyses will be conducted based upon the labor market position affirmed within the City's compensation philosophy (e.g., median, mean, or other percentile). Each comparable match for each survey classification is reported in the relevant data sheet for full disclosure and review by others. We find this level of transparency in matching provides for a better understanding and acceptance of study results. Task 6 — Conduct Benefits Analysis. The benefit data submitted from the labor market agencies will be analyzed quantitively and qualitatively. In the quantitative analysis, specific benefits will be incorporated into the base salary data sheets to provide a total compensation analysis. This analysis of program costs will provide the City with an understanding of how the study classes compare against their market when the costs of benefits programs are taken into consideration. Within these data sheets, four different analyses can be conducted based on how our clients wish to view the data: 1. An analysis of the survey classification's position within the labor market for base salary 2. An analysis of the survey classification's position within the labor market when the cost of cash add-ons is taken into consideration (total cash) 3. An analysis of the survey classification's position within the labor market when the cost of cash add-ons and health programs are taken into consideration 4. An analysis of the survey classification's position within the labor market when the cost of cash add-ons, health program costs, and retirement contributions are taken into consideration (total compensation) The qualitative analysis will include a write-up of the general trends of benefits offered across CPS HR CONSULTING Page 16 Proposal to City of Lodi Total Compensation Study the agencies as well as summary tables showing the practices of each agency. Task 7 — Prepare and Present Draft Data. The CPS HR Project Team will develop draft summaries and tables detailing the results of the labor market survey. These items will include the following: ■ List of labor market agencies ■ List of study benchmarks ■ Labor market data analysis/methodologies ■ Results of the base salary survey ■ Results of the benefits analyses ■ Results of the total compensation analysis CPS HR will discuss the draft items with the Internal Project Manager and designated stakeholders. Task 8 — Research and Resolve Issues/Prepare and Discuss Final Documents. Based upon the City's review, the CPS HR Project Team will follow-up and resolve any outstanding compensation issues. CPS HR will prepare final summaries and tables and will discuss with the Internal Project Manager. Timeline While some efficiency will be realized with the use of previously collected data from a comparator agency's project conducted by CPS HR in January 2021, there are many data points that still need to be gathered from the labor market agencies. We estimate that the data gathering, quality control, and analyses can be conducted within 10 weeks, depending on the timeliness of response from the labor market agencies. The timeline may be protracted given that this project may fall over the summer vacation months. Every effort will be made to expedite the study for completion by September 2021. CPS HR CONSULTING Proposal to City of Lodi Total Compensation Study Fee Structure Professional Fixed Fee CPS HR has prepared the following professional fixed feel based on the scope of work outlined and further detailed in the assumptions. Pricing Assumptions Billing Terms CPS HR will bill the project in equal installments on the following schedule: ■ After kick-off meeting ■ Provision of draft matches ■ Provision of draft data tables ■ Provision of final data tables 1 This fee includes a discount since some benchmarks and labor market agencies overlap from a recent comparator utility agency project conducted by CPS HR, as discussed with the City of Lodi. CPS HR CONSULTING Page 18 ScopeGeneral Number of Benchmarks Up to 13 Number of Labor Markets Up to 7 Not included in the fixed fee: Materials Production CPS HR provides all documents electronically. Hard copy printing of documents for this engagement will be the responsibility of the City. Consultant Expenses Travel expenses have not been budgeted for this scope as all work is expected to occur remotely. Billing Terms CPS HR will bill the project in equal installments on the following schedule: ■ After kick-off meeting ■ Provision of draft matches ■ Provision of draft data tables ■ Provision of final data tables 1 This fee includes a discount since some benchmarks and labor market agencies overlap from a recent comparator utility agency project conducted by CPS HR, as discussed with the City of Lodi. CPS HR CONSULTING Page 18 Proposal to City of Lodi Total Compensation Study Pricing Philosophy CPS HR is flexible with the proposed work plan; alternate approaches may be discussed with the City which may in turn change the proposed cost of the project. As described in this proposal, the methods, approach, timelines, as well as the proposed fee, have been prepared as accurately as possible based upon the services requested and study objectives described in the information provided to CPS HR. The proposed professional fees reflect the steps and time necessary to conduct the study in a sound, thorough, and sustainable manner, including important input and review by the City's Internal Project Manager and designated stakeholders to accomplish the study objectives. If changes or additional services are required, we will be happy to discuss changes to the project activities, and/or fee proposal. CPS HR CONSULTING Page 19 PROPOSAL City of Lodi Total Compensation Study Originally submitted: June 29, 2021 Updated: July 9, 2021 SUBMITTED BY: VICKI QUINTERO BRASHEAR Director of Products and Services CPS HR Consulting 2450 Del Paso Road, Suite 220 Sacramento, CA 95834 P: 916-471-3481 vbrashear@cpshr.us Tax ID: 68-0067209 www.cpshr.us Your Path to Performance CPS HIR � CONSULTING Table of Contents Experience and Qualifications.............................................................3 About CPS HR Consulting........................................................................ 3 Distinguishing Characteristics............................................................ 3 Methodology and Approach..............................................................4 Compensation Study Work Plan............................................................. 4 Timeline....................................................................................................7 FeeStructure...........................................................................................8 Professional Fixed Fee..............................................................................8 Pricing Assumptions............................................................................ 8 BillingTerms.......................................................................................... 8 PricingPhilosophy.................................................................................... 9 2450 Del Paso Road, Suite 220, Sacramento, CA 95834 www.cpshr.us Page I i CPS HIS A=,,CONSULTING July 9, 2021 Adele Post Human Resources Manager City of Lodi 221 W. Pine Street Lodi, CA 95241 Submitted via e-mail to: apost@lodi.gov Subject: Total Compensation Study Dear Ms. Post: CPS HR Consulting (CPS HR) is pleased to submit this updated proposal to the City of Lodi (City) to provide compensation consulting services. With a rich history of assisting government agencies with their compensation studies, we at CPS HR are confident that we can provide expert solutions to meet the City's requirements and objectives. At CPS HR, we pride ourselves in establishing and nurturing long-term relationships with the agencies we serve as we live out our mission of bringing excellence in Human Resources to the public sector. We look forward to the opportunity to work with the City of Lodi on this important project and to partner with your organization into the future. Thank you for this opportunity; we welcome the opportunity to discuss adjustments to scope to best meet the needs of the City, while still ensuring the accuracy and integrity of the project. Should you have any questions, please do not hesitate to contact me or Justin at the contact information above. Sincerely, Vicki Quintero Brashear Director of Products and Services 2450 Del Paso Road, Suite 220, Sacramento, CA 95834 www.cpshr.us Page I ii Proposal to City of Lodi Total Compensation Study Experience and Qualifications About CPS HR Consulting CPS HR is an innovative, client -centered human resources and management consulting firm specializing in solving the unique problems and challenges faced by government and non-profit agencies. As a self-supporting public agency, we understand the needs of public sector clients and have served as a trusted advisor to our clients since 1985. Our mission is to promote human resource excellence in the public sector and our vision is to enable people to realize the promise of public service. CPS HR has been providing classification and compensation services to state, federal, and local governments along with special districts and non-profit organizations for over 35 years. We have performed many studies with agencies of similar size and scope as the City of Lodi. Additionally, the references and project list we have included provide further clarity around the type of classification and compensation projects with which we have worked. With these examples, we have shown how we have collected data, performed analyses on said data, made recommendations, and worked successfully with our partners/clients. Distinguishing Characteristics Depth of experience working in public agencies. CPS HR is a joint powers authority, and as such, our charter mandates that we provide services exclusively to public agencies and non -profits. CPS HR has conducted hundreds of classification and compensation related studies for cities, counties, courts, special districts, water and utilities, and higher education institutions. CPS HR staffing. CPS HR employs the most experienced staff members. Many of our staff have both public and private classification and compensation experience, they are diligent in their work, listen to and understand the needs of our clients, and possess advanced education and certifications such as SHRM, IPMA, World at Work, etc. Automated Solution. CPS HR utilizes a proprietary system called Comp Calculator for the management and analysis of compensation survey data. The Comp Calculator is a web -based program that allows for the data entry of survey data on an agency -by -agency basis and then generates a separate datasheet within Excel for each surveyed classification. We can also provide access to shared documents through our SharePoint"' website and collaborate through Microsoft TeamsTM Use of best practices. CPS HR applies best practices and utilizes proven classification and compensation principles in all our engagements. Quality and tailored services. CPS HR delivers quality and tailored classification and compensation services to better meet each client's unique study goals and objectives. CPS HR CONSULTING Page 13 Proposal to City of Lodi Total Compensation Study Methodology and Approach Compensation Study Work Plan The compensation work plan outlined in this section is intended to define all tasks within a comprehensive total compensation study from labor market selection to final reports, and the types of deliverables associated with each task. CPS HR identifies data points collected for base salary studies in addition to total compensation. Task 1— Review the City's Background Materials. Upon contract execution, CPS HR will request background information from the City to ensure our Project Manager and Project Team are prepared for the initial meeting. • Compensation philosophy and • Budget Information strategy • Memorandums of Understanding • Salary schedules (MOUS) • Benefits summaries • Compensation policies and procedures • Other documents relevant to the study The CPS HR Project Manager will coordinate activities through and report to the City's Internal Project Manager and other designated key stakeholders. Client Responsibilities and/or Pricing Assumptions Associated with Task: ■ The client will upload electronic copies of all documents to a shared online site provided by CPS HR. Task 2 — Initial Project Meeting/Labor Market Agency and Benchmark Classifications Confirmation. The CPS HR Project Manager will meet with the City's Internal Project Manager and any other designated stakeholders to discuss the study methodologies, deliverables, timelines, communication, and data collection methods. The CPS HR Project Manager will seek to understand the City's compensation philosophy in this meeting. Additionally, the CPS HR Project Manager will discuss the following elements of compensation policy: ■ Labor Market Agency Selection —We understand that the City has an identified list which will be utilized for this study ■ Additional topics include: • Labor market position (i.e., median, mean, or other percentile) • Benchmark classifications — We understand that the City has an identified list which will be utilized for this study • Elements of total compensation to be surveyed CPS HR CONSULTING Page 14 Proposal to City of Lodi Total Compensation Study Client Responsibilities and/or Pricing Assumptions Associated with Task: ■ It is assumed that no more than 13 benchmark classifications will be identified (and will be provided by the client). ■ It is assumed that no more than 7 labor market agencies will be selected for comparison (and will be provided by the client). Task 3 — Design, Develop, and Distribute the Survey Instrument. The CPS HR Project Team will develop a comprehensive survey instrument to ensure the effective collection of compensation data from each of the survey agencies. For a total compensation study, the following elements of total compensation are added to the base salary survey: (i) Cash add-ons premium pays such as longevity pay and deferred compensation; (ii) Agency contribution to medical, dental, and vision programs; (iii) Agency contributions to defined -benefit retirement programs and Social Security practices; and (iv) Paid time off practices such as Holiday leave, vacation and sick leave, and administrative leave. Additional benefits and/or policies can be collected as agreed upon. Task 4 — Review, Analyze, and Validate Labor Market Survey Data. CPS HR begins labor market data collection by researching available information online to make preliminary classification matches and obtain benefits data. The CPS HR Project Team will reach out to labor market agencies to confirm and/or complete survey data after completing as much pre -work as possible. We find that this initial collection effort results in greater participation from the labor market agencies. Once CPS HR has completed their survey analysis tasks, the CPS HR Project Manager will audit the final data as part of our quality review process. Classification matching includes reviewing agency background materials such as copies of classification specifications, organization charts, staffing information, and other useful materials to substantiate the accuracy of the comparability of the matches. It is critical that the CPS HR Project Team review such documents since titles alone can often be misleading and should not be relied upon. To determine whether a match from a labor market agency is comparable to the City's benchmark, CPS HR utilizes a whole job analysis methodology; this commonly used methodology analyzes the job as a whole, rather than by individual factors, by evaluating the core duties and responsibilities, the nature and level of work performed, and the minimum qualifications to determine whether the classification is comparable enough to be utilized as a match. The methodology recognizes slight differences in duties assigned to matches from other labor market agencies which do not impact the type, nature, and level of work performed. Matches should not be so broad that they include classifications performing dissimilar work, or work done at a higher or lower level, but they also should not be so narrow that they exclude matches doing comparable work, with slight differences in work that do not change the level and nature of work. CPS HR CONSULTING Page 15 Proposal to City of Lodi Total Compensation Study Client Responsibilities and/or Pricing Assumptions Associated with Task: ■ Should any labor market agencies be non-responsive to requests for information, we will provide the City with contact information and request that they use their professional contacts to follow up on CPS HR's behalf. We have found this approach to be beneficial. ■ The City may add additional labor market agencies should any in the initial selection be non-responsive or not provide sufficient matches at an additional cost. ■ Responsiveness of labor market agencies is absolutely critical to maintaining the agreed timeline. An amended timeline will be provided by the CPS HR Project Manager if the data collection period is pushed out. Any contract amendment needed due to timeline shift will be discussed with the City at the appropriate point. Task 5— Design and Develop Data Spreadsheets. CPS HR will develop an individual data sheet for each survey classification that presents the comparable classification used in each agency with the relevant data associated with that classification, such as the position ranking within the labor market and salary range minimum and maximum. The labor market data analyses will be conducted based upon the labor market position affirmed within the City's compensation philosophy (e.g., median, mean, or other percentile). Each comparable match for each survey classification is reported in the relevant data sheet for full disclosure and review by others. We find this level of transparency in matching provides for a better understanding and acceptance of study results. Task 6 — Conduct Benefits Analysis. The benefit data submitted from the labor market agencies will be analyzed quantitively and qualitatively. In the quantitative analysis, specific benefits will be incorporated into the base salary data sheets to provide a total compensation analysis. This analysis of program costs will provide the City with an understanding of how the study classes compare against their market when the costs of benefits programs are taken into consideration. Within these data sheets, four different analyses can be conducted based on how our clients wish to view the data: 1. An analysis of the survey classification's position within the labor market for base salary 2. An analysis of the survey classification's position within the labor market when the cost of cash add-ons is taken into consideration (total cash) 3. An analysis of the survey classification's position within the labor market when the cost of cash add-ons and health programs are taken into consideration 4. An analysis of the survey classification's position within the labor market when the cost of cash add-ons, health program costs, and retirement contributions are taken into consideration (total compensation) The qualitative analysis will include a write-up of the general trends of benefits offered across CPS HR CONSULTING Page 16 Proposal to City of Lodi Total Compensation Study the agencies as well as summary tables showing the practices of each agency. Task 7 — Prepare and Present Draft Data. The CPS HR Project Team will develop draft summaries and tables detailing the results of the labor market survey. These items will include the following: ■ List of labor market agencies ■ List of study benchmarks ■ Labor market data analysis/methodologies ■ Results of the base salary survey ■ Results of the benefits analyses ■ Results of the total compensation analysis CPS HR will discuss the draft items with the Internal Project Manager and designated stakeholders. Task 8 — Research and Resolve Issues/Prepare and Discuss Final Documents. Based upon the City's review, the CPS HR Project Team will follow-up and resolve any outstanding compensation issues. CPS HR will prepare final summaries and tables and will discuss with the Internal Project Manager. Timeline While some efficiency will be realized with the use of previously collected data from a comparator agency's project conducted by CPS HR in January 2021, there are many data points that still need to be gathered from the labor market agencies. We estimate that the data gathering, quality control, and analyses can be conducted within 10 weeks, depending on the timeliness of response from the labor market agencies. The timeline may be protracted given that this project may fall over the summer vacation months. Every effort will be made to expedite the study for completion by September 2021. CPS HR CONSULTING Proposal to City of Lodi Total Compensation Study Fee Structure Professional Fixed Fee CPS HR has prepared the following professional fixed feel based on the scope of work outlined and further detailed in the assumptions. Pricing Assumptions Billing Terms CPS HR will bill the project in equal installments on the following schedule: ■ After kick-off meeting ■ Provision of draft matches ■ Provision of draft data tables ■ Provision of final data tables 1 This fee includes a discount since some benchmarks and labor market agencies overlap from a recent comparator utility agency project conducted by CPS HR, as discussed with the City of Lodi. CPS HR CONSULTING Page 18 ScopeGeneral Number of Benchmarks Up to 13 Number of Labor Markets Up to 7 Not included in the fixed fee: Materials Production CPS HR provides all documents electronically. Hard copy printing of documents for this engagement will be the responsibility of the City. Consultant Expenses Travel expenses have not been budgeted for this scope as all work is expected to occur remotely. Billing Terms CPS HR will bill the project in equal installments on the following schedule: ■ After kick-off meeting ■ Provision of draft matches ■ Provision of draft data tables ■ Provision of final data tables 1 This fee includes a discount since some benchmarks and labor market agencies overlap from a recent comparator utility agency project conducted by CPS HR, as discussed with the City of Lodi. CPS HR CONSULTING Page 18 Proposal to City of Lodi Total Compensation Study Pricing Philosophy CPS HR is flexible with the proposed work plan; alternate approaches may be discussed with the City which may in turn change the proposed cost of the project. As described in this proposal, the methods, approach, timelines, as well as the proposed fee, have been prepared as accurately as possible based upon the services requested and study objectives described in the information provided to CPS HR. The proposed professional fees reflect the steps and time necessary to conduct the study in a sound, thorough, and sustainable manner, including important input and review by the City's Internal Project Manager and designated stakeholders to accomplish the study objectives. If changes or additional services are required, we will be happy to discuss changes to the project activities, and/or fee proposal. CPS HR CONSULTING Page 19 RESOLUTION NO. 2021-210 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING THE CONTRACT WITH CPS HR CONSULTING, OF SACRAMENTO, TO COMPLETE A TOTAL COMPENSATION STUDY FOR CERTAIN POSITIONS WITHIN THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS BARGAINING UNIT WHEREAS, the Lodi City Council approved a successor Memorandum of Understanding (MOU) with the International Brotherhood of Electrical Workers (IBEW 1245) on August 21, 2019, that expires on December 31, 2021; and WHEREAS, representatives from the City and IBEW 1245 are entering into the negotiation process for a successor MOU; and WHEREAS, the labor market for electric utility positions is highly competitive and the City is experiencing difficulty in attracting qualified applicants; and WHEREAS, the City believes a comprehensive total compensation study will be instrumental to the negotiation process and received a proposal from CPS HR Consulting, not to exceed $24,750 to conduct the study; and WHEREAS, it is recommended that Council approve the contract with CPS HR Consulting to perform a total compensation study for positions within the IBEW bargaining unit. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve the contract with CPS HR Consulting, of Sacramento, California, to perform a total compensation study for certain positions within the International Brotherhood of Electrical Workers bargaining unit, in an amount not to exceed $24,750. Dated: July 21, 2021 ------------------------------------------------------------------------ ------------------------------------------------------------------------ I hereby certify that Resolution No. 2021-210 was passed and adopted by the City Council of the City of Lodi in a regular meeting held July 21, 2021, by the following vote: AYES: COUNCIL MEMBERS — Chandler, Hothi, Khan, Kuehne, and Mayor Nakanishi NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None J NIFE USMIR City Clerk 2021-210