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Resolution No. 2013-012RESOLUTION NO. 2013-12 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON AUTHORIZING THE ISSUANCE OF A REQUEST FOR PROPOSALS FOR CLASSIFICATION AND COMPENSATION STUDY WHEREAS, the City of Vernon is interested in obtaining proposals from qualified firms to design, 'conduct and assist in the implementation of a City-wide classification and compensation study; and WHEREAS, the Director of Human Resources is seeking permission for the issuance of a request for proposals for Classification and Compensation Study (the "RFP"). NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct. SECTION 2: The City Council of the City of Vernon finds that this action is exempt under the California Environmental Quality Act (CEQA), in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment. SECTION 3: The City Council of the City of Vernon hereby instructs the City Administrator, or his designee, to issue in accordance with Vernon City Code Section 2.29-2, the RFP, a copy of which is attached hereto as Exhibit A, to one or more qualified firms, and to report to the City Council on the proposals received with a recommendation for action. SECTION 4: The Interim City Clerk of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the Interim City Clerk of the City of Vernon shall cause this resolution and the Interim City Clerk's certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 22°d day of January, 2013. Name: Wil am J. Davis d, Interim'City Clerk Title: Mayor /-Msyor—P=ff-rC - 2 - STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, Dana Reed, Interim City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 2013-12, was duly passed, approved and adopted by the City Council of the City of Vernon at a special meeting of the City Council duly held on Tuesday, January 22, 2013, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of January, 2013, at Vernon, California. (SEAL) - 3 - Reed, Interim City Clerk EXHIBIT A City of Vernon Request for Proposals (RFP) Classification and Compensation Study City of Vernon Human Resources Department 4305 Santa Fe Avenue, Vernon Ca 90058 Phone: (323) 583-8811 1 City of Vernon Classification and Compensation Request for Proposals CITY OF VERNON REQUEST FOR PROPOSAL CLASSIFICATION AND COMPENSATION STUDY INTRODUCTION AND PROJECT The City of Vernon is requesting proposals for qualified professional consulting services to conduct a City-wide classification and compensation study. The City will select one firm, based on demonstrated competence and a cost effective approach to design, conduct, and assist in the implementation of a city-wide classification and compensation study. 2. BACKGROUND The City of Vernon was founded in 1905, is approximately 5.2 square miles in size and is located approximately 5 miles southeast of downtown Los Angeles California. Over its long history Vernon has been developed as an industrial community. At the turn of the 20'h century the lands that make up Vernon were comprised largely of farmlands. The presence of three major rail lines in the area led influential business men and property owners to encourage the railroad companies to run spur lines onto the farmlands. These rail extensions enabled the creation of an "exclusively industrial" city. By the 1920's Vernon was attracting large stockyards and meatpacking facilities. In the 1930's Vernon became the location of choice for many heavy industrial plants. As economic conditions changed over the decades, these large scale industrial operations have relocated out of Southern California and Vernon has attracted smaller, lighter industrial facilities. The City's business friendly environment, low cost utilities and key location for trucking and rail transport continue to position Vernon as an ideal location for industrial uses. City Government: The City Council consists of five members, elected from the City at - large, who serve five-year staggered terms. The City Council annually appoints a Mayor and a Mayor Pro Tern from its own membership to serve one-year terms. Labor Force: Vernon has approximately 281 employees, and its departments include a Fire Department, Police Department, Finance Department, Community Services and Water Department, Light and Power Department and Health Department. Present bargaining units recognized include the Vernon Police Officers Association, the Vernon Police Management Association, the Vernon Fire Fighters Union and the Fire Management Association. Several other labor organizations have expressed an interest in setting up bargaining units within the Vernon work force. In addition, the City is in the process of modifying its employment system from an "at will" to a merit system. It is adopting revised personnel procedures. Vernon recently hired both a Human Resources Director and a City Attorney. City of Vernon Classification and Compensation Request for Proposals 3. SITUATION The City's classification plan requires an update, with class specifications that are in line with current changes and requirements in the law. Class specifications need to be updated to reflect current job duties and requirements of the position, including physical requirements and essential functions to comply with the ADA. The City has not had a comprehensive classification and compensation review in over 10 years. During this time specific job family classification studies have been conducted. Over the last three years, the City has realigned several positions, resulting in the reorganization of several departments. 4. SCOPE OF SERVICES REQUIRED The City of Vernon is seeking the services of a highly qualified consulting firm to assist in: Classification Plan 1. Updating the classification plan for approximately 158 classifications representing 275 Full-time and 6 Part-time employees as of January 2, 2013 (including sworn personnel). 2. Develop a classification structure that reflects the City's overall classification and compensation strategy and includes the clear definition of terms and the development of career ladders for full-time and part-time classifications. 3. Review the background materials including existing classifications, organizational charts, budgets, salary resolutions and schedules, personnel rules and regulations, and related information. 4. Conduct orientation and briefing session(s) with employees. 5. Conduct orientation and briefing session(s) with all department heads, managers and supervisors. 6. Develop a comprehensive questionnaire to be completed by all employees within the scope of the study. 7. Administer the completion of a job questionnaire by all employees that can be used for classification and compensation purposes. Conduct interviews with all employees in single position classifications, a representative sample of employees in multiple position classifications, and appropriate supervisory and management personnel to validate information. City of Vernon Classification and Compensation Request for Proposals 9. Allocate all employees included within the scope of the study to an appropriate job title, job class and exempt and non-exempt designation (FLSA). 10. Develop new classification specifications and/or update classification specifications as appropriate to reflect current duties, requirements of the position, including physical requirements and essential functions in compliance with ADA. 11. Class specifications shall include the following items: (1) a definition of the job classification, (2) a complete description of essential functions, (3) requirements of education, experience, knowledge, skills and abilities, (4) supervision exercised and received with definition of lead or supervisory roles, (5) working environment/conditions, (6) licenses, certifications, driving requirements and physical requirements in compliance with the American with Disabilities Act (ADA) and (7) appropriate exempt and non-exempt designation under the Fair Labor Standards Act (FLSA). Consultant will coordinate the varying presentation styles of the project team to ensure a unified philosophy and standardization across the classifications. 12. Design and administer an employee review process 13. Present the final classification and listing showing the recommended allocation of each position. 14. The classification plan shall include an introductory section that describes class concepts and provides information about the distinctions of various levels within a class series and other pertinent information. 15. Provide appropriate implementation and maintenance manuals. 16. Conduct training sessions for designated staff. Compensation Plan 1. Identify survey labor market and benchmark classes. 2. Conduct a comprehensive compensation survey utilizing comparable survey agencies, using not only job titles, but duties and responsibilities based upon the classification specifications from the City of Vernon. 3. Complete internal salary relationship analysis, including the development of appropriate internal relationship guidelines. 4. Develop externally competitive and internally equitable salary recommendations for each class included within the study. 5. Access spreads based on organizational value of positions. 6. Assign a salary range to each classification which reflects the results of the market survey and the analysis of internal relationships. City of Vernon Classification and Compensation Request for Proposals Present results of survey to management, and relevant bargaining groups in group meeting. 8. Assist in the development of a strategy for implementing compensation recommendations. 9. Add effectively present data -driven rationale for recommendations in written report, .present findings orally and thoroughly defend all challenges to the survey. 10. Provide a phased implementation plan. 11. Present final Classification and Compensation report to City Administrator. The consultant or the City may propose additional tasks as deemed necessary to complete the assignment. Any additional work shall be compensated as agreed upon in the consultant's contract with the City. 5. QUALIFICATIONS & CRITERIA A. Qualifications: The City of Vernon will select one firm for all of the outlined Scope of Service on the basis of qualifications, experience, and cost. The following are the minimum qualifications to be used to evaluate responses to this Request for Proposal: 1. The proposer has advanced knowledge of the laws and practices relating to employee classification and compensation within a municipal government setting. These include some articulated knowledge of the laws governing each of the Service Areas for which the proposer wishes to be considered. 2. The proposer has a demonstrated track record of success in handling all aspects of employee classification and compensation in the Service Area being proposed and at least five (5) years providing these services to public entities in the State of California. 3. Each proposer shall provide three references, preferably from governmental entities, for relevant work performed in the past five years. When possible, include references from cities of a similar size and character to Vernon. If the proposer does not have three governmental entity references, references from private entities may be provided. 4. The proposer can demonstrate understanding of the assignment and knowledge of the skills necessary to serve in the role of Classification and Compensation Consultant. B. Selection Criteria: The City will conduct a comprehensive, fair, and impartial evaluation of proposals received in response to this RFP. All proposals received from vendors will be reviewed and evaluated by a committee of qualified personnel. The name, information, or experience of the individual members will not be made available to any vendor. The Evaluation Committee will first review and screen all proposals submitted, except for the cost proposals, according to the minimum City of Vernon Classification and Compensation Request for Proposals qualifications set forth above. The following criteria will be used in reviewing and comparing the proposals and in determining the highest scoring bid: 1. 40% Qualifications, background and prior experience of the firm in the Service Area(s) being proposed, experience of key staff assigned to oversee services provided to Vernon, evaluation of size and scope of similar work performed and success on that work. 2. 30% Cost and fees to the City for handling matters. Cost is not the sole determining factor but will be taken into consideration. Proposer must offer services at a rate comparable to the rate proposer offers to other governmental entities for similar work. Offering a higher rate to the City than the comparable rate is grounds for disqualification of the Proposer. If rates differ for different types or levels of service, or for different Service Areas, the Proposer should so state. 3. 10% Responsiveness to the RFP, and quality and responsiveness of the proposal. 4. 20% References including past performance of proposer. 6. FORMAT AND DELIVERY RESPONSE Respondents are asked to submit seven (7) copies of their proposals in sufficient detail to allow for a thorough evaluation and comparative analysis. The proposal should include, at a minimum, the following information in sectionalized format addressing all phases of the work in the RFP. A. Format: Limit your proposal to 20 typed 8.5" X 11" pages, or fewer, on white bond paper of at least 20-pound weight single sided (excluding cover letter and attachments. You may attach a firm brochure if you wish, but it must be as a separate attachment and independent from the required elements noted above. 1. Use a conventional typeface with a minimum font zie of 12 points. Use a 1" margin on all boarders. 2. Organize your submittal in the order described above. 3. Provide one 91) unbound original of your firm's response and one electronic version 4. Prominently label the package: "RFP for Classification and Compensation Study" and include the name of the prime respondent. Deliver the response to: City of Vernon Attention: Teresa McAllister, Director of Human Resources 4305 Santa Fe Avenue Vernon, CA 90058 5. Responses are due on or before 5:00 p.m. on March 4, 2013. Late response will not be accepted. City of Vernon Classification and Compensation Request for Proposals 6. If you have any question about this RFP, please contact Teresa McAllister at (323) 583-8811 ext. 239. B. Cover Letter: All proposals shall include a cover letter which states that the proposal shall remain valid for a period of not less than ninety (90) days from the date of submittal. If the proposal contemplates the use of sub -contractors, the sub -contractors shall be identified in the cover letter. If the proposal is submitted by a business entity, the cover letter shall be signed by an officer authorized to contractually bind the business entity. With respect to the business entity, the cover letter shall also include: the identification of the business entity, including the name, address and telephone number of the business entity; and the name, title, address and telephone number of a contact person during the proposal evaluation period. C. Introduction: Present an introduction of the proposal and your understanding of the assignment and significant steps, methods and procedures to be employed by the proposer to ensure quality deliverables that can be delivered within the required time frames and your identified budget. D. General Scope of Work: Briefly summarize the scope of work as the proposer perceives or envisions it for each Service Area proposed. E. Work Plan: Present concepts for conducting the work plan and interrelationship of all products. Define the scope of each task including the depth and scope of analysis or research proposed. F. Fees and costs: Although an important aspect of consideration, the financial cost estimate will not be the sole justification for consideration. Negotiations may or may not be conducted with the proposer; therefore, the proposal submitted should contain the proposer's most favorable terms and conditions, since selection and award may be made without discussion with any firm. All prices should reflect "not to exceed" amounts per item. G. Ability of the Proposer to Perform: Provide a detailed description of the proposer and his/her/its qualifications, including names, titles, detailed professional resumes and past experience in similar work efforts/products of key personnel who will be working on the assignment. Provide a list of specific related work projects that have been completed by the proposer which are directly related to the assignment described in this RFP. Note the specific individuals who completed such project(s). Identify role and responsibility of each member of the project team. Include the amount of time key personnel will be involved in the respective portions of the assignment. Respondents are encouraged to supply relevant examples of their professional product. Provide a list of references. The selected firm shall not subcontract any work under the RFP nor assign any work without the prior written consent of the City. H. Affidavit of Non -Collusion. Proposer must submit a completed and signed, "Affidavit of Non -Collusion." (Copy Attached as Exhibit A). 7 City of Vernon Classification and Compensation Request for Proposals 7. ADDENDA. CHANGES. AND AMENDMENTS TO THIS SOLICITATION At any time prior to the due date for responses, the City may make changes, amendments, and addenda to this solicitation, including changing the date due to allow respondents time to address such changes. Addenda, changes, and amendments, if made, will be posted on the City's website (www.cityofvernon.org), which is deemed adequate notice. A proposer may make a request to the City's project coordinator to be placed on a list of persons to receive notice of any such addenda, changes, or amendments. The preferred manner of communications is via e-mail due to its timeliness. 8. CONDITIONS FOR RESPONSES TO RFP The following conditions apply to this RFP process: A. Nothing contained in this RFP shall create any contractual relationship between the respondent and the City: B. This RFP does not obligate the City to establish a list of service providers qualified as prime contractors, or award a contract to any respondent. The City reserves the right to amend or cancel this RFP without prior notice, at any time, at its sole discretion. C. The City shall not be liable for any expenses incurred by any individual or organization in connection with this RFP. D. No conversations or agreements with any officer, agent, or employee of the City shall affect or modify any terms of this RFP. Oral communications or any written/e-mail materials provided by any person other than designated contact staff of City shall not be considered binding. E. The City reserves the right, in its sole discretion, to accept or reject any or all Proposals without prior notice and to waive any minor irregularities or defects in a Proposal. The City reserves the right to seek clarification on a Proposal with any source. F. The dates, times, and sequence of events related to this RFP shall ultimately be determined by the City. The schedule shown above is subject to change, at the sole discretion of the City, although the City will attempt to follow it and, if it must be altered, will attempt to provide reasonable notice of the changes. G. Respondents shall not issue any news release pertaining to this RFP, or the City without prior written approval of the City. H. All submitted proposals and information included therein or attached thereto shall become public record upon delivery to the City of Vernon Classification and Compensation Request for Proposals City Administrator's Office. 9. RIGHT BY THE CITY TO WITHDRAW THIS REQUEST The City may, at its.sole discretion and for any reason whatsoever, withdraw this solicitation at any time. 10. STANDARD TERMS AND CONDITIONS Prior to the award of any work hereunder, City and proposer shall enter into the written contract attached hereto, for services, as an Exhibit B. Proposers responding to this RFP are strongly advised to review all the terms and conditions of the Contract. 0 SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND [CONTRACTOR'S NAME] FOR [BRIEF DESCRIPTION OF SERVICES] Contractor: Responsible Principal of Contractor: Notice Information - Contractor: Notice Information - City: Commencement Date: Termination Date: Consideration: Records Retention Period COVER PAGE [insert name of contractor] [insert name, title] [insert name of contractor] [insert street address] [insert city, state, zip code] Attention: [insert name, title] Phone: [insert phone number] Facsimile: [insert fax number] City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attention: [insert department head] [insert department head title] Telephone: (323) 583-8811 ext. [insert] Facsimile.: [insert fax number] [insert commencement date] [insert termination date], unless extended pursuant to Section 1 Total not to exceed $[insert amount] (includes all applicable sales tax); and more particularly described in Exhibit C Three (3) years, pursuant to Section 9.19 December 2012 SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND [CONTRACTOR'S NAME] FOR [BRIEF DESCRIPTION OF SERVICES] THIS Contract is made between the City of Vernon ("City"), a California charter City and California municipal corporation ("City"), and [Contractor's Name], a [State incorporated in] corporation ("Contractor"). The City and Contractor agree as follows: 1.0 EMPLOYMENT OF CONTRACTOR. City agrees to engage Contractor to perform the services as hereinafter set forth as authorized by the City Council on 2.0 SCOPE OF SERVICES. 2.1 Contractor shall perform all work necessary to complete the services set forth in the Request for Proposals dated Exhibit "A", and Contractor's proposal to the City ("Proposal") dated Exhibit "B", both of which are attached to and incorporated into this Contract, by reference. 2.2 All services shall be performed to the satisfaction of City. 2.3 All services shall be performed according to the standards then prevailing in the [state] profession. 3.0 PERSONNEL. 3.1 Contractor represents that it employs, or will employ, at its own expense, all personnel required to perform the services under this Contract. 3.2 Contractor shall not subcontract any services to be performed by it under this Contract without prior written approval of City. 3.3 All of the services required hereunder will be performed by Contractor or by City -approved subcontractors. Contractor, and all personnel engaged in the work, shall be fully qualified and authorized or permitted under State and local law to perform such services and shall be subject to approval by the City. 4.0 TERM. [Alternative 1, for services where there is a deliverable or specific schedule set forth in the specifications/RFP or in the bid/proposal]. The Contractor shall December 2012 commence the delivery of services on receipt of a written notice to proceed and shall complete the services on the schedule set forth in Exhibit "". [Alternative 2, for services of a continuing nature]. The term of this Contract shall commence on [state date], and it shall continue until [state date which may not be more than three years from the commencement date], unless terminated at an earlier date pursuant to the provisions thereof. 5.0 COMPENSATION AND FEES. 5.1 Contractor has established rates for the City of Vernon which are comparable to and do not exceed the best rates offered to other governmental entities in and around Los Angeles County for the same services. For satisfactory and timely performance of the services, the City will pay Contractor in accordance with the payment schedule set forth in Exhibit"". 5.2 Contractor's grand total compensation for the entire term of this Contract shall not exceed [state amount] without the prior authorization of the City Council and written amendment of this Contract. 5.3 Contractor shall, at its sole cost and expense, furnish all necessary and incidental labor, material, supplies, facilities, equipment and transportation which may be required for furnishing services pursuant to this Contract. Materials shall be of the highest quality. The above Contract fee shall include all staff time and all clerical, administrative, overhead, insurance, reproduction, telephone, air travel, auto rental, subsistence, and all related costs and expenses. 6.0 PAYMENT. 6.1 As scheduled services are completed, Contractor shall submit to the City an invoice for the services completed, authorized expenses, and authorized extra work actually performed or incurred according to said schedule. 6.2 Each such invoice shall state the basis for the amount invoiced, including a detailed description of the services completed, the number of hours spent, reimbursable 3 December 2012 expenses incurred and any extra work performed. 6.3 Contractor shall also submit a progress report with each invoice that describes in reasonable detail the services and the extra work, if any, performed in, the immediately preceding calendar month. 6.4 Contractor understands and agrees that invoices which lack sufficient detail to measure performance will be returned and not processed for payment. 6.5 City will pay Contractor the amount invoiced within thirty (30) days after the City approves the invoice. 6.6 Payment of such invoices shall be payment in full for all services, authorized costs and authorized extra work covered by that invoice. 7.0 CHANGE ORDERS. There is no change order authority provided in this Contract. 8.0 CITY'S RESPONSIBILITY. City shall cooperate with Contractor as may be reasonably necessary for Contractor to perform its services; and will give any required decisions as promptly as practicable so as to avoid unreasonable delay in the progress of Contractor's services. 9.0 GENERAL TERMS AND CONDITIONS. 9.1 INDEPENDENT CONTRACTOR. 9.1.1 It is understood that in the performance of the services herein provided for, Contractor shall be, and is, an independent contractor, and is not an agent or employee of City and shall furnish such services in its own manner and method except as required by this Contract. Further, Contractor has, and shall retain the right to exercise full control over the employment, direction, compensation and discharge of all persons employed by Contractor in the performance of the services hereunder. Contractor shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its employees, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. December 2012 9.1.2 Contractor acknowledges that Contractor and any subcontractors, agents or employees employed by Contractor shall not, under any circumstances, be considered employees of the City, and that they shall not be entitled to any of the benefits or rights afforded employees of City, including, but not limited to, sick leave, vacation leave, holiday pay, Public Employees Retirement System benefits, or health, life, dental, long-term disability or workers' compensation insurance benefits. 9.2 CONTRACTOR NOT AGENT. Except as the City may authorize in writing, Contractor and its subcontractors shall have no authority, express or implied, to act on behalf of or bind the City in any capacity whatsoever as agents or otherwise. 9.3 OWNERSHIP OF WORK. All reports, drawings, plans, specifications, computer tapes, floppy disks and printouts, studies, memoranda, computation sheets and other documents prepared by Contractor in furtherance of the work shall be the sole property of City and shall be delivered to City whenever requested. Contractor shall keep such documents and materials on file and available for audit by the City for at least three (3) years after completion or earlier termination of this Contract. Contractor may make duplicate copies of such materials and documents for its own files or for such other purposes as may be authorized in writing by the City. 9.4 CORRECTION OF WORK. Contractor shall promptly correct any defective, inaccurate or incomplete tasks, deliverables, goods, services and other work, without additional cost to the City.. The performance or acceptance of services furnished by Contractor shall not relieve the Contractor from the obligation to correct subsequently discovered defects, inaccuracy or incompleteness. 9.5 WAIVER. The City's waiver of any term, condition, breach or default of this Contract shall not be considered to be a waiver of any other term, condition, default or breach, nor of a subsequent breach of the one waived. 9.6 SUCCESSORS. This Contract shall inure to the benefit of, and shall be binding upon, the parties hereto and their respective heirs, successors and/or assigns. December 2012 9.7 NO ASSIGNMENT. Contractor shall not assign or transfer this Contract or any rights hereunder without the prior written consent of the City and approval by the City Attorney, which may be withheld in the City's sole discretion. Any unauthorized assignment or transfer shall be null and void and shall constitute a material breach by the Contractor of its obligations under this Contract. No assignment shall release the original parties or otherwise constitute a novation. 9.8 COMPLIANCE WITH LAWS. Contractor shall comply with all Federal, State, County and City laws, ordinances, rules and regulations, which are, as amended from time to time, incorporated herein and applicable to the performance hereof, including but without limitation, the Vernon Living Wage Ordinance. Violation of any law material to performance of this Contract shall entitle the City to terminate the Contract and otherwise pursue its remedies. 9.9 ATTORNEY'S FEES. If any action at law or in equity is brought to enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 9.10 INTERPRETATION. 9.10.1 Applicable Law. This Contract, and the rights and duties of the parties hereunder (both procedural and substantive), shall be governed by and construed according to the laws of the State of California. 9.10.2 Entire Agreement. This Contract, including any exhibits attached hereto, constitutes the entire agreement and understanding between the parties regarding its subject matter and supersedes all prior or contemporaneous negotiations, representations, understandings, correspondence, documentation and agreements (written or oral). 9.10.3 Written Amendment. This Contract may only be changed by written amendment signed by Contractor and the City Administrator or other authorized representative of the City, subject to any requisite authorization by the City Council. Any oral December 2012 representations or modifications concerning this Contract shall be of no force or effect. 9.10.4 Severability. If any provision in this Contract is held by any court of competent jurisdiction to be invalid, illegal, void, or unenforceable, such portion shall be deemed severed from this Contract, and the remaining provisions shall nevertheless continue in full force and effect as fully as though such invalid, illegal, or unenforceable portion had never been part of this Contract. 9.10.5 Order of Precedence. In case of conflict between the terms of this Contract and the terms contained in any document attached as an Exhibit or otherwise incorporated by reference, the terms of this Contract shall strictly prevail. The terms of the City's Request. for Proposals shall control over the Contractor's Proposal. 9.10.6 Choice of Forum. The parties hereby agree that this Contract is to be enforced in accordance with the laws of the State of California, is entered into and/or is to be performed in the City of Vernon and that all claims or controversies arising out of or related to performance under this Contract shall be submitted to and resolved in a forum within the County of Los Angeles at a place to be determined by the rules of the forum. 9.10.7 Duplicate Originals. There shall be two (2) fully signed copies of this Contract, each of which shall be deemed an original. 9.11 TIME OF ESSENCE. Time is strictly of the essence of this contract and each and every covenant, term and provision hereof. 9.12 AUTHORITY OF CONTRACTOR. The Contractor hereby represents and warrants to the City that the Contractor has the right, power, legal capacity and authority to enter into and perform its obligations under this Contract, and its execution of this Contract has been duly authorized. 9.13 ARBITRATION OF DISPUTES. Any dispute for under $25,000 arising out of or relating to the negotiation, construction, performance, non-performance, breach or any other aspect of this Contract, shall be settled by binding arbitration in accordance with the Commercial Rules of the American Arbitration Association at Los Angeles, California December 2012 and judgment upon the award rendered by the Arbitrators may be entered in any court having jurisdiction thereof. The City does not waive its right to object to the timeliness or sufficiency of any claim filed or required to be filed against the City and reserves the right to conduct full discovery. 9.14 INDEMNITY. 9.14.1 Contractor agrees to indemnify, hold harmless and defend (even if the allegations are false, fraudulent or groundless), to the maximum extent permitted by law, the City, its City Council and each member thereof, and its officers, employees, commission. members and representatives, from any and all liability, loss, suits, claims, damages, costs, judgments and expenses (including attorney's fees and costs of litigation) which in whole or in part result from, or arise out of, or are claimed to result from or to arise out of: A. any activity on or use of City's premises or facilities or any performance under this Contract; or B. any acts, errors or omissions (including, without limitation, professional negligence) of Contractor, its employees, representatives, subcontractors, or agents in connection with the performance of this Contract. 9.14.2 This agreement to indemnify includes, but is not limited to, personal injury (including death at any time) and property or other damage (including, but without limitation, contract or tort or patent, copyright, trade secret or trademark infringement) sustained by any person or persons (including, but not limited to, companies, or corporations, Contractor and its employees or agents, and members of the general public). The sole negligence or willful misconduct of City, its employees or agents other than Contractor or Contractor's subcontractors are excluded from this indemnity agreement. 9.15 INSURANCE. Contractor shall, at its own expense, procure and maintain policies of insurance of the types and in the amounts set forth below, for the duration of the December 2012 Contract, including any extensions thereto. The policies shall state that they afford primary coverage. 9.15.1 Automobile Liability with minimum limits of at least $100,000/300,000150,000 if written on a personal automobile liability form, for using a personal vehicle; or an amount of $500,000 including owned, hired, and non -owned liability coverage if written on a Commercial automobile liability form. 9.15.2 General Liability with minimum limits of at least $1,000,000 combined single limits written on an Insurance Services Office (ISO) Comprehensive General Liability "occurrence" form or its equivalent for coverage on an occurrence basis. Premises/Operations and Personal Injury coverage is required. The City of Vernon, its directors, commissioners, officers, employees, agents and volunteers must be endorsed on the policy as additional insureds as respects liability arising out of the Contractor's performance of this Contract. A. If Contractor employs other contractors as part of the services rendered, Contractor's Protective Coverage is required. Contractor may include all subcontractors as insureds under its own policy or shall furnish separate insurance for each subcontractor, meeting the requirements set forth herein. is applicable. B. Blanket Contractual Coverage if required. C. Products/Completed Operations coverage where such risk 9.15.3 Contractor shall comply with the applicable sections of the California Labor Code concerning workers' compensation for injuries on the job. Compliance is accomplished in one of the following manners: A. Provide copy of permissive self-insurance certificate approved by the State of California; or B. Secure and maintain in force a policy of workers' compensation insurance with statutory limits and Employer's Liability Insurance with a minimal December 2012 limit of $1,000,000 per accident. The policy shall be endorsed to waive all rights of subrogation against City, its City Council, commissioners, officers, employees, and volunteers for losses arising from performance of this Contract; or C. Provide a "waiver" form certifying that no employees subject to the Labor Code's Workers' Compensation provision will be used in performance of this Contract. 9.15.4 Each insurance policy included in this clause shall be endorsed to state that coverage shall not be cancelled except after thirty (30) days' prior written notice to City. of no less than B:VIII. 9.15.5 Insurance shall be placed with insurers with a Best's rating 9.15.6 Prior to commencement of performance, Contractor shall furnish City with a certificate of insurance for each policy. Each certificate is to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificate(s) must be in a form approved by City. City may require complete, certified copies of any or all policies at any time. 9.15.7 Failure to maintain required insurance at all times shall constitute a default and material breach. In such event, Contractor shall immediately notify City and cease all performance under this Contract until further directed by the City. In the absence of satisfactory insurance coverage, City may, at its option: (a) procure insurance with collection rights for premiums, attorney's fees and costs against Contractor by way of set-off or recoupment from sums due Contractor, at City's option; (b) immediately terminate this Contract; or (c) self insure the risk, with all damages and costs incurred, by judgment, settlement or otherwise, including attorney's fees and costs, being collectible from Contractor, by way of set- off or recoupment from any sums due Contractor. 9.16 NOTICES. Any notice or demand to be given by one party to the other be given in writing and by personal delivery or prepaid first-class, registered or certified mail, 10 December 2012 addressed as follows. Notice simply to the City of Vernon or any other City department is not adequate notice. If to the City: If to the Contractor: Any such notice shall be deemed to have been given upon delivery, if personally delivered, or, if mailed, upon receipt or upon expiration of three (3) business days from the date of posting, whichever is earlier. Either party may change the address at which it desires to receive notice upon giving written notice of such request to the other party. 9.17 TERMINATION FOR CONVENIENCE (Without Cause) City may terminate this Contract in whole or in part at any time, for any cause or without cause, upon fifteen (15) calendar days' written notice to Contractor. If the Contract is thus terminated by City for reasons other than Contractor's failure to perform its obligations, City shall pay Contractor a prorated amount based on the services satisfactorily completed and accepted prior to the effective date of termination. Such payment shall be Contractor's exclusive remedy for termination without cause. 9.18 DEFAULT. In the event either party materially defaults in its obligations hereunder, the other party may declare a default and terminate this Contract by written notice to the defaulting party. The notice shall specify the basis for the default. The Contract shall terminate unless such default is cured before the effective date of termination stated in such notice, which date shall be no sooner than ten (10) days after the date of the notice. Termination for cause shall relieve the terminating party of further liability or responsibility under this Contract, including the payment of money, except for payment for 11 December 2012 services satisfactorily and timely performed prior to the service of the notice of termination, and except for reimbursement of (1) any payments made by the City for service not subsequently performed in a timely and satisfactory manner, and (2) costs incurred by the City in obtaining substitute performance. 9.19 MAINTENANCE AND INSPECTION OF RECORDS. The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Contractor's records to the extent the City deems necessary to insure it is receiving all money to which it is entitled under the Contract and/or is paying only the amounts to which Contractor is properly entitled under the Contract or for other purposes relating to the Contract. The Contractor shall maintain and preserve all such records for a period of at least 3 years after termination of the Contract. The Contractor shall maintain all such records in the City of Vernon. If not, the Contractor shall, upon request, promptly deliver the records to the City of Vernon or reimburse the City for all reasonable and extra costs incurred in conducting the audit at a location other than the City of Vernon, including, but not limited to, such additional (out of the City) expenses for personnel, salaries, private auditors, travel, lodging, meals and overhead. 9.20 CONFLICT. Contractor hereby represents, warrants and certifies that no member, officer or employee of the Contractor is a director, officer or employee of the City of Vernon, or a member of any of its boards; commissions or committees, except to the extent permitted by law. 9.21 ENFORCEMENT OF WAGE AND HOUR LAWS. Eight hours labor constitutes a legal day's work. The Contractor, or subcontractor, if any, shall forfeit twenty-five dollars ($25) for each worker employed in the execution of this Agreement by the respective Contractor or subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Sections 1810 through 1815 of the California Labor Code 12 December 2012 as a penalty paid to the City; provided, however, work performed by employees of contractors in excess of 8 hours per day, and 40 hours during any one week, shall be permitted upon compensation for all hours worked in excess of 8 hours per day at not less than 1'/2 times the basic rate of pay. 9.22 LIVING WAGES. Contractor, or Subcontractor, if any, working on City service contracts of any amount, as to all employees spending time on City contracts shall observe the City's Living Wage Ordinance and all requirements thereof at all times on City contracts. The Current Living Wage Standards are set forth in Exhibit "D". Upon request, certified payroll shall be provided to the City. 9.23 EQUAL EMPLOYMENT OPPORTUNITY PRACTICES. Contractor certifies and represents that, during the performance of this Contract, it and any other parties with whom it may subcontract shall adhere to equal employment opportunity practices to assure that applicants, employees and recipients of service are treated equally and are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex, age, medical condition, sexual orientation or marital status. Contractor further certifies that it will not maintain any segregated facilities. Contractor further agrees to comply with The Equal Employment Opportunity Practices provisions as set forth in Exhibit "E". [Signatures Begin on Next Page]. 13 December2012 IN WITNESS WHEREOF, the Parties have signed this Agreement as of the date stated in the introductory clause. City of Vernon, a California charter City and California municipal corporation IN William Davis, Mayor ATTEST: Dana Reed, Interim City Clerk APPROVED AS TO FORM: Nicholas George Rodriguez, City Attorney [CONTRACTOR'S NAME, a [State incorporated in] corporation By: Name: Title: By: Name: Title: 14 December 2012 EXHIBIT A SCOPE OF SERVICES 15 December 2012 EXHIBIT B PROPOSAL 16 December 2012 EXHIBIT C SCHEDULE 17 December 2012 EXHIBIT D LIVING WAGE PROVISIONS Minimum Living Wages: A requirement that Employers pay qualifying employees a wage of no less than $10.30 per hour with health benefits, or $11.55 per hour without health benefits. Paid and Unpaid Days Off: Employers provide qualifying employees at least twelve compensated days off per year for sick leave, vacation, or personal necessity, and an additional ten days a year of uncompensated time for sick leave. No Retaliation: A prohibition on employer retaliation against employees complaining to the City with regard to the employer's compliance with the living wage ordinance. Employees may bring an action in Superior Court against an employer for back pay, treble damages for willful violations, and attorney's fees, or to compel City officials to terminate the service contract of violating employers. 18 December 2012 EXHIBIT E EQUAL EMPLOYMENT OPPORTUNITY PRACTICES PROVISIONS A. Contractor certifies and represents that, during the performance of this Agreement, the contractor and each subcontractor shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religious creed, color, national origin, ancestry, handicap, sex, or age. Contractor further certifies that it will not maintain any segregated facilities. B. Contractor agrees that it shall, in all solicitations or advertisements for applicants for employment placed by or on behalf of Contractor, state that it is an "Equal Opportunity Employer" or that all qualified applicants will receive consideration for employment without regard to their race, religious creed, color, national origin, ancestry, handicap, sex or age. C. Contractor agrees that it shall, if requested to do so by the City, certify that it has not, in the performance of this Agreement, discriminated against applicants or employees because of their membership in a protected class. D. Contractor agrees to provide the City with access to, and, if requested to do so by City, through its awarding authority, provide copies of all of its records pertaining or relating to its .employment practices, except to the extent such records or portions of such records are. confidential or privileged under state or federal law. E. Nothing contained in this Agreement shall be construed in any manner as to require or permit any act which is prohibited by law. 19 December 2012 CITY CLERK'S OFFICE INTEROFFICE MEMORANDUM DATE: January 24, 2013 TO: Teresa McAllister, Director of Human Resources i FROM: Deborah Juarez, Records Management Assistant!U) RE: Resolution No. 2013-12 — A Resolution of the City Council of the City of Vernon Authorizing the Issuance of a Request for Proposals for Classification and Compensation Study Transmitted herewith is a copy of Resolution No. 2013-12 referenced above, which was approved by City Council on January 22, 2013. Thank you. Attachment c: Resolution No. 2013-12 RECEIVED RECEwEp JAN 0 8 2013 STAFF REPORT CITY CLERK'S OFFICE HUMAN RESOURCES DEPARTMENT DATE: January 22, 2013 TO: Honorable Mayor and City Council FROM: Teresa McAllister, Director of Human Resources p JAN 0 3 2013 CITY ADMINISTRATION RE: REQUEST FOR PROPOSAL FOR CITY-WIDE CLASSIFICATION AND COMPENSATION STUDY Recommendation 1) It is recommended that the City Council find that approval of the proposed engagement letters in this staff report are exempt under the California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment. 2) It is recommended that the City Council approve and authorize the issuance of the attached Request for Proposal for a City-wide Classification and Compensation Study to assist in updating the City of Vernon Classification and Compensation Plan for approximately 158 classifications. Backuround A classification plan provides the necessary framework to guide administrative, financial and human resources decisions. In addition, the classification plan provides a basis for recruitment, performance management, compensation, training and career ladder/succession planning. An up-to-date classification and compensation plan ensures the City aligns talent to the vision and purpose of the organization; attracts, retains, and develops the best people; clarifies direction and expectations, and improves engagement and commitment. Staffing represents the City's primary means of delivering top-quality service, and its most significant expense. A thorough review of employee classifications must be a cornerstone on the emphasis of this study. A comprehensive classification plan is an integral component of organizational procedures to ensure maximum effectiveness. To ensure the City's continued competitive advantage as a forward -thinking organization, this classification and compensation study is recommended. This City has not conducted a comprehensive classification and compensation system -wide study in over five years. Over the years this has resulted in misalignment of how the classifications are used in terms of assignment and level of responsibility, making it difficult to maintain internal equity. Further, over the past three years, the City has eliminated several positions and with the recently approved PARS Supplemental Retirement Program, an additional 29 positions will be eliminated resulting in the reorganization of several departments. In line with the City's good governance reforms, the City has, among numerous other things, developed a comprehensive contracting/purchasing ordinance that establishes an open and competitive bidding process for service contracts as required by the City Charter amendment passed by the voters in November 2011. Consistent with all provisions of the aforementioned ordinance, City staff is requesting that a Request for Proposal (RFP) be issued to seek a consultant to participate in the analysis of the city's classification and compensation plans. The Consultant, in addition to other services required, will update the City's classification and compensation plan for approximately 158 classifications and allocate all employees included within the scope of the study to an appropriate job title, job class and exempt and non-exempt designation (FLSA). They would also be responsible for developing new classification specifications and/or update classification specifications as appropriate to reflect current duties, requirements of the position, including physical requirements and essential functions in compliance with ADA. The compensation study shall include identifying survey labor market and benchmark classes to conduct a comprehensive compensation survey utilizing comparable survey agencies, using not only job titles, but duties and responsibilities based upon the classification specifications from the City of Vernon. At the conclusion of the study, the Human Resources Department will have identified opportunities to evaluate the current schedule of salary differentials and determine the reasonableness of each; assess the reasonableness of the minimum qualifications for each position; identify comparable agencies for the City of Vernon competitive markets; evaluate the appropriateness of existing FLSA designations (exempt vs. non-exempt); determine the appropriateness of classification designations as compared to the Employee/Employer Resolution definitions; develop a new salary table; and revise/update all job descriptions. The issuance of the attached RFP will ensure the City has effective current data -driven rationale for the City's Classification and Compensation Plan and can thoroughly defend all challenges that ensure fiscal responsibility and stability. Financial Impact The financial impact at this time is unknown pending the results and selection among the proposals and bidders for services. Staff will return for a budget appropriation as required to commensurate with the awarding of the services contract to the firm deemed fit to conduct the Classification and Compensation study.