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HomeMy WebLinkAbout11 Compensation Benifits Survey ........... ..... Agenda Item # Workshop To: Board of Directors From: Nancy Waters, Human Resources Administrator Date: February 15, 2006 Subject: Compensation and Benefits Survey WHY THIS MATTER IF BEFORE THE BOARD: This matter involves retaining the services of a consultant to perform an employee compensation study, as suggested by CATT and endorsed by the Board.The idea presented to the Board was to have an independent party conduct the survey. HISTORY: Over the past few years, we have talked about the need to have an employee compensation package that permits the District to recruit and retain high quality staff, and about our need to engage in succession planning. The limited salary survey conducted for the management and professional employees demonstrated that our salaries are lower than other agencies we benchmark. We are presently engaged in negotiations with the Union that represents hourly wage employees. Some of these wages are also lower than comparable agencies. If we are committed to offering a competetive compensation package to our employees, we should determine in a most competent way what is being paid in comparable agencies in our labor market area. At the last meeting, Staff was asked to return with more information on possible consultants to conduct this study and copies of proposals submitted to other agencies so the Board would have an idea of what to expect from a compensation study. NEW INFORMATION: I have obtained more information about conducting a study and have found additional consultants that we could send our request for proposal. I have included this information in this packet for the Board to consider: • Draft Request for Proposal for Compensation and Benefits Survey • Llist of possible consultants • List of compensation issues to include in the study • Positions to include in the study • Copy of Truckee Sanitary District's proposal from Koff&Associates, Inc. • Copy of Town of Truckee's proposal from Maximus, Inc. • Letter from IBEW Business Representative, Santiago Salazar concerning the Union's position of the compensation and benefits survey. I would like to have further discussion with the Board about their thoughts and ides on this survey. Truckee Donner Public Utility District BoamlafDrectco; Joseph R.Aguera J.Ronal a Hemig Business Office (530) 587-3896 FAX (530) 587-5056 Patricia S.Sutton Tim Taylor William L.Thomason c General Manager Peter L.Holzmerster DRAFT TRUCKEE DONNER PUBLIC UTILITY DISTRICT REQUEST FOR PROPOSAL COMPENSATION AND BENEFITS SURVEY INTRODUCTION The Truckee Donner Public Utility District is requesting proposals from qualified consulting firms experienced in the development of a Compensation and Benefits Study. The Truckee Donner PUD is a Special District of the State of California, providing electric service and water service to the Truckee area. We are interested in starting this project as soon as possible, to be completed by September 1, 2006. NATURE OF SERVICE REQUIRED In this preliminary stage, we have determined that there are approximately 14 union positions and 15 non-union positions that we would like to include in the study. These positions include water classifications, electric classifications, as well as administrative positions. In addition to compensation, we would like to compare employee benefits such as, retirement, insurance, paid leave, and other incentives and allowances to other electric and water agencies. PROPOSAL REQUIREMENTS The Board of Directors will evaluate each submitted proposal to select which firms will be invited for an interview. All proposals should include and will be evaluated on the following criteria: • Scope of services to be provided and description of the report to be delivered upon completion. Post Office Box 309 11570 Donner Pass Road Truckee, California 96160 • Ability to complete the work within the time specified. • Qualifications of the firm, including but not limited to its experience and personnel assigned to this project. • Cost. ASSISTANCE TO BE PROVIDED The Truckee Donner PUD will provide all information available, such as job descriptions, union contract, and wage and salary schedules necessary to support the consultant in this survey. OTHER INFORMATION The District declares that it will incur no financial obligation for any costs by any company in preparation of this proposal. Interested firms should submit their proposals by March 31, 2006. Inquiries regarding this request may be addressed to: Nancy Waters, Human Resources Administrator Phone: 530.582.3903 Fax: 530.587.5056 Email: Nancywaters(@tdpud.org Possible Consultants: Koff& Associates, Inc. 18 Crow Canyon Court, Suite 165 San Ramon, CA 94583 925.831.9794 CompAnalysis 725 Washington Street, Suite 302 Oakland, CA 94607 510.763.3774 CPS Human Resource Services 241 Lathrop Way Sacramento, CA 95815 916.263.3614 L.B. Hayhurst & Associates, Inc. 27 Commercial Blvd., Suite C Novato, CA 94949 415.884.0544 Bob Murray & Associates 1677 Eureka Road, Suite 202 Roseville, CA 95661 916.784.1985 William Avery &Associates 3 '/2 N. Santa Cruz Ave., Suite A Los Gatos, CA 95030 408.399,4424 Ralph Andersen &Associates 5800 Stanford Ranch Rd., Suite 410 Rocklin, CA 95765 916.630.4900 Maximus, Inc. 11419 Sunset Hills Rd. Reston, VA 20190 800.Maximus Compensation issues to include in study: Salary/wages CalPERS Pension Social Security Medical insurance Vacation Holidays Sick leave Life insurance Overtime premium pay Longevity pay Tool/clothing allowance Professional training incentive Transportation allowance Management positions to be included in study: General Manager Power Supply Manager/Assistant General Manager Executive Secretary Administrative Services Manager/Treasurer Human Resources Administrator Accounting and Finance Manager Planning Services Manager Electric Superintendent Electric Engineer Associate Electric Engineer GIS Specialist Water Utility Manager Water Engineer Associate Water Engineer Water Superintendent Union positions: Accounting/Computer Operations Supervisor Senior Clerk Meter Reader Warehouse/Relief Utility Worker Automotive Mechanic Buyer/Clerk Electric Services Planner Electrician/Meter Technician Electric Foreman Journeyman Lineman Contracts Administration Clerk Water Services Planner Water Service Technician Water Foreman M ) lm4 PROPOSAL For A CLASSIFICATION and TOTAL COMPENSATION SURVEY For The TRUCKEE SANITARY DISTRICT Submitted by: KOFF& ASSOCIATES,INC. 18 Crow Canyon Court Suite 165 San Ramon,CA 94583 925.831.9794—voice 925.831.9322—fax E-mail: gkoff(a),koffassociates.com Contact Person Gail Koff,President/CEO N16 KOFF&ASSOCIATES,INC. Solving th¢Human Resoure¢s Pusle Since 1994 August 5,2004 Mr.Thomas Selfridge General Manager Truckee Sanitary District 12304 Joerger Drive Truckee,CA 96161 RE: Request for Proposal: Classification and Total Compensation Study Dear Mr. Selfridge: Thank you for including us in your Request for Proposal process for the district wide classification and total compensation survey. We are most interested in assisting the District with this important study. In addition to the proposal,we have also submitted several samples of our work product. We are experienced public-sector consultants who have been conducting similar studies for wastewater and other special districts, cities, counties, Courts, and other public agencies for over 20 years. Koff& Associates, Inc. has achieved a reputation for working successfully with management, employees and union representatives. We believe in a high level of dialogue and input from employees and management and our proposal speaks to that level of effort. That extra effort has resulted in close to 100% implementation of all of our classification and compensation studies. Koff& Associates, Inc. is a small firm that accepts only as much work as our staff can handle. This assures a high level of quality control, excellent communication between clients and our office, commitment to meeting timelines and budget, and a consistent high-caliber work product. As President/CEO of the firm, I would assume the role of Project Director and be responsible for the successful completion of this project. I can be reached at the San Ramon address and phone number listed below. My e-mail address is: gkoffna,koffassociates com. Please call me if you have any questions or wish additional information. I look forward to the opportunity to provide additional levels of service to Truckee Sanitary District. cere f, resident/CEOii 18 Crow Canyon Court•Suite 165•San Ramon,CA 94583-1613•TEL 925/831,9794•FAX 925/831.9322 www.KoffAssociates.com KOFF&ASSOCIATES,INC. Solving the Human Resources Punle Since 1984 IN PROPOSAL For A CLASSIFICATION STUDY And TOTAL COMPENSATION STUDY For The TRUCKEE SANITARY DISTRICT TABLE OF CONTENTS Page No. 1. Understanding of the Project 1 2. Qualifications of the Firm 3 3. Project Team 3 4. References 6 5. Work Plan and Methodology 8 6. Deliverables 15 7. Expectations of District Support 15 8. Project Schedule 16 9. Proposed Costs 16 10. Insurance Requirements 17 Attached—Sample Work Products 18 Crow Canyon Court•Suite 165•San Ramon, CA 94583-1613•TEL 925/831,9794•FAX 925/831,9322 www.KoffAssociates.com KOFF&ASSOCIATES,INC. 1164 Solving the Human Resources Puaie Since 1984 PROPOSAL For A CLASSIFICATION STUDY And TOTAL COMPENSATION STUDY For The TRUCKEE SANITARY DISTRICT UNDERSTANDING OF THE PROJECT The District currently has approximately thirty-three (33) full time positions within twenty-three (23)different classifications. The purpose of this study is to develop a final work product that will include an updated classification/position allocation plan for all job classes with an organizational structure that will allow for future growth and effective customer service delivery. The final Classification Plan Recommendations and Report will ensure internal equity, legal compliance and will be reflective of contemporary standards. We will also provide a review of your classification exemption status as the Fair Labor Standards Act (FLSA) has recently enacted significant change to exempt/non- exempt status allocation. The project also includes a total compensation(salary and benefits)market survey using a core of eight to twelve (8-12) comparator agencies utilizing recommended benchmark positions. Our proposal will then make specific recommendations for internal equity for non-benchmarked positions. The Compensation Plan will contain specific recommendations regarding a salary schedule and the integration of all classifications into a clearly designed, internally equitable format that is flexible for future District growth. The study includes a significant number of meetings with the Board,management and staff. hi addition to a complete record of study processes and recommendations, our proposal also provides documentation for staff in both classification and internal compensation methodologies so that the District can integrate and maintain the Plans after the initial implementation. Classification Obiectives ➢ To review and understand all current documentation, rules, regulations, policies, procedures, descriptions, organizational charts and related information so that the new plan can be operationally incorporated with a minimum of disruption; ➢ To conduct a preliminary project team meeting to finalize study plans and timetables and employee orientation session(s)with staff in order to educate and explain the scope of the study and describe what are and are not reasonable study expectations and goals; 18 Crow Canyon Court-Suite 165•San Ramon, CA 94583-1613•TEL 925/831.9794-FAX 925/831,9322 www.KoffAssociates.com Classification&Compensation Study Proposal Page 2 of 19 ➢ To update the classification structure through a comprehensive process of job analysis including review of existing documentation, position description questionnaire completion, employee interviews, management interviews and other professional methods,as appropriate; ➢ To allocate each study position to the correct classification, with the goal of minimizing the number of single-position classes and providing for growth and flexibility of assignment,where feasible; ➢ To allocate each classification to the correct exempt/non-exempt status allocation in accordance with the recently revised Fair Labor Standards Act(ELSA)regulations; ➢ To provide a basis for ensuring that the District has adequate career paths and a classification system that will foster career service within the District; ➢ To provide for adequate educational, review and appeal processes that will result in a product that is understood by all levels of personnel and is internally equitable;and ➢ To ensure sufficient documentation throughout the study so that the plan can be maintained in a competent and fair manner. Compensation Objectives ➢ To review and make recommendations regarding comparator agencies prior to beginning the compensation portion of the study; ➢ To collect accurate data regarding salary and benefits from the approved group of comparator agencies and to ensure that this information is analyzed in a manner that is clear and comprehensible to your governing Council, your management, staff and bargaining trait representatives; ➢ To carefully analyze the scope and level of duties and responsibilities, requirements for successful work performance and other factors for survey classes according to generally accepted compensation philosophy; ➢ To assist the Council in articulating its compensation philosophy; ➢ To develop a compensation plan that will assist the District to recruit,motivate and retain competent staff; and ➢ To recommend appropriate internal salary relationships and allocate classes to ranges in a comprehensive salary range plan. Overall Objectives ➢ To document all steps in the process so that the classification and compensation plans may be maintained in the future;and KOFF&ASSOCIATES,INC. Classification&Compensation Study Proposal Page 3 of 17 ➢ To provide ongoing communications throughout the duration of the project. QUALIFICATIONS OF TEE FIRM Koff & Associates, Inc. is a public sector human resources consulting firm that has been assisting counties, cities and special districts for the past twenty (20) years. We have extensive experience working in both non-union and union environments (including serving as the management representative in meet & confer and negotiation meetings), working with City Councils, Boards of Supervisors, Merit Boards,Joint Power Authorities and Boards of Directors. Our staff has provided services to a variety of city and county governments as well as water, wastewater, air pollution control, transportation, fire, community service, educational, and hospital special districts. Specific references are provided below. The firm's areas of focus are compensation and classification studies; policy/procedure development and employee handbooks; executive search and staff recruitments; performance management issues; and serving as off-site IIR Director for our smaller public agencies that need the expertise of an FIR Director but do not need a full-time, on-site professional. For the past several years, the firm's significant workload has been in the areas of classification studies and extensive total compensation reviews(samples of work products are included for your review). Without exception,all of our classification and compensation studies have successfully met all of our intended commitments; communications were successful with employees, supervisors, management and union representatives; and we were able to assist each agency in successfully implementing most of our recommendations. All studies were brought to completion within time limits(although many times modified due to agency time constraints)and proposed budget. The firm's growing list of clients is indicative of its reputation throughout California as being a quality organization that can be relied upon for producing comprehensive, sound and cost- effective recommendations and solutions. Koff& Associates, hie. has a reputation for being "hands on" with an ability and expertise to implement its ideas and recommendations through completion in both union and non-union environments. Koff&Associates, Inc.relies almost exclusively on the recommendations and referrals of current clients to attract new clients. Our work speaks for itself and our primary goal is to provide professional and technical consulting assistance with integrity, honesty and a commitment to excellence. We invite you to contact anyone on the Client List as a referral. PROJECT TEAM Professional qualifications of staff include: Gail Koff Gail Koff, Principal of Koff& Associates, Inc., has over thirty (30) years of human resource management experience, 27 years of which have been serving the needs of public agencies. KOFF&ASSOCIATES,INC. Classification&Compensation Study Proposal Page 4 of 17 Gail's prior experience, after receiving her degree from Boston University, includes serving as the Personnel Director for one of California's largest sanitary districts, Central Contra Costa Sanitary District as well as the Personnel Director for the California College of Arts and Crafts. She has spent the last twenty (20) years as Managing Director of her firm providing consulting assistance to cities, counties and special districts (transit, water, sanitary, hospital, school, community service, air quality management, fire, etc.). She specializes in strategic development; classification and job analysis; compensation design and pay for performance strategies; executive search; labor/management issues; employee handbooks and policy direction; performance management; and organizational efficiency issues. Gail is familiar with the unique problems of public agencies and has worked extensively with publicly elected Boards, Councils, Commissions, numerous unions, management and employee groups. Gail works closely with the agency and the Board throughout the entire process to ensure success. She attends most meetings and is actively engaged throughout the study's progress. Catherine Kaneko Catherine brings over thirteen (13) years of management level human resources experience to Koff& Associates, Inc., both as a human resources director and as a management consultant in the hi-tech industry as well as the public sector. She has extensive experience in compensation including equity plans, survey design and reporting, recruitment in both the public and private sector, staffing; classification and job analysis; compensation and job evaluation techniques, employee relations, retention strategies, infrastructure development; coaching; policy and procedure development; mergers and acquisitions;change management and employee training. With a Bachelor's Degree in Business Administration,Catherine started her career as a Certified Public Accountant (CPA) in an international accounting/consulting firm. She transitioned into Human Resources within the firm to become the Human Resources Director of the San Francisco office. She then moved into the hi-tech industry where she served in leadership positions for high growth, startup, and organizations in transition. Her primary focus in recent years has been in classification,compensation and recruitment services in the public sector. Catherine's experience provides a broad knowledge of human resource management within diverse organizations. Her background provides her a strong ability to understand the big picture, identify problems and solutions and effectively implement them. Her skill set complements our current consultant base with additional levels of service areas. Georg S.Krammer Georg brings over seven (7) years of management-level human resources experience to K&A with an emphasis in classification design; executive and staff recruitment; performance management; organizational development; and employee relations, both in large corporations, small,minority-owned businesses and public sector agencies. After obtaining a Master's Degree in English and Russian and teaching credentials at the University of Vienna, Austria, Georg came to the United States to further his education and KOFF&ASSOCIATES,INC. Classification&Compensation Study Proposal Page 5 of 17 experience and attained his MBA from the University of San Francisco. After starting his human resources career in Wells Fargo Bank's college recruiting department, he moved on to human resources management positions in the banking and high-tech consulting industries. With his experience as a well-rounded senior HR generalist and his education in business and teaching, Georg's contribution to K&A's variety of projects greatly complements our consulting team. Since joining K&A, Georg has worked on multiple classification and compensation projects for over 25 clients in the public sector and has taken an active leadership role in many of our classification and total compensation studies. Georg will be assigned the role of Project Manager to ensure close coordination of the client needs throughout the project. Lisa M.Silva Lisa Silva brings to Koff& Associates, Inc. twenty-five (25) years of experience in building world-class HR organizations in multi-industry environments including health care/medical device, services, manufacturing, union and non-union environments. She also has worked in start-up environments and with self-directed work teams. As a former Global HR Executive, she was responsible for enabling improved business performance by implementing value-added Human Resources strategies, systems,processes and policies. Her areas of specialty include Executive & Management Coaching; HR Strategic Planning;Total Rewards and Compensation Strategies; Talent Acquisition and Staffing;Training and Development; Organizational Development; Succession Planning; Performance Management;HRIS and HR Intranet design;Legal Compliance and Change Management. She is also versed in 360 processes, needs assessment, employee surveys, meeting facilitation and conducting focus groups. Since recently joining K&A,Lisa has been involved in total compensation surveys,classifications and reclassification projects, organization development issues, executive search and employee relation's issues. Gail Papworth Gail brings to Koff&Associates over 24 years of human resources experience,most extensively at the local government level. Her areas of expertise include classification and compensation analysis,workforce and succession planning,organizational design, workload analysis,training& staff development, labor relations & negotiations, and executive recruitment and examination development. Her experience includes Personnel Coordinator for the Sonoma County Water Agency, Personnel Analyst, County of Sonoma, and as a consultant project manager for classification & compensation studies at local government level throughout the western regional states. In addition, she has supervised and managed professional and support staff in recruitment, testing and classification/compensation with the County of Marie. She received her Bachelor's of Arts in Business Administration from Sonoma State University while working as a job developer in their Career Development office. After graduation, Gail KOFF&ASSOCIATES,INC. Classification&Compensation Study Proposal Page 6 of 17 continued her career as a Personnel Administrator in the workers' compensation industry before joining the County of Sonoma as a Human Resources Analyst. Gail bring the full range of human resources services in local government including law enforcement, probation and fire, public works, health & human services, water & wastewater services,community development, county administration,library services and parks. Alissa DeVoto Alissa brings to Koff& Associates, Inc. over ten years of technical software and administrative experience, four (4) years of which have been specifically human resources related. Her career includes employee benefits; HR outsourcing; payroll; 401(K) and workers compensation administration; employee selection&termination; and HR process administration. Her technical expertise,motivation,analytical mind and computer know-how ensures that all of our projects are accurate and completed on time. Alissa has been involved on most of the studies identified above. Since coming to Koff & Associates, Inc. Alissa has become actively involved with all recruitments, classification studies, compensation surveys, marketing and the day-today operations of Koff& Associates, Inc. Alissa's contribution to K&A's variety of projects makes her a great asset to our organization. REFERENCES(a list of references from our most current studies) City of Pinole Contact: Ms.Belinda Espinosa Citywide classification study. City Manager Compensation study awarded 510-724-8933 non-competitively following successful completion of the class study. (75 classifications 2002; Comp study-current) Central Marin Sanitation Agency Contact: Mr.Jason Dow Ongoing classification&comp studies General Manager Over 13 years (2004 most recent) 415-459-1455 Alameda County Transportation District Contact: Anees Azad Classification and compensation studies Finance and Administrative Director Completed over the past 10 years (510) 893-3347 XI01 City of San Luis Obispo Contact: Ms.Jill Sylvain Classification and internal Human Resources Analyst compensation study. 805-781-7251 (66 classifications; 2003) KOFF&ASSOCIATES,INC. Classification&Compensation Study Proposal Page 7 of 17 City of Rio Vista Contact: Mr.Bill Edgar Comprehensive citywide Acting City Manager compensation study conducted 916-712-0710 during a period of significant internal change. (35 classifications;2003) Castro Valley Sanitary District Contact: Mr.Roland P.Williams,Jr. Comprehensive classification and General Manager compensation study 510-537-0757 Additionally,we have completed similar types of studies for the following agencies: Cities School Districts City of Alameda Fremont Unified School District City of Atherton Huntington Beach School District City of Brisbane City of Calistoga Special Districts City of Citrus Heights Alameda Corridor-East City of El Cerrito Construction Authority City of Emeryville Alameda County Housing Authority City of Foster City Alameda County Transportation City of Fremont Authority City of Galt Alameda County Water District City of Greenfield Brookside Hospital City of Orinda Calaveras County Water District City of Napa Carpinteria Sanitary District City of National City Castro Valley Sanitary District City of Pacific Grove Central Contra Costa Sanitary City of Piedmont District City of Pinole Central Marin Sanitation Agency City of Red Bluff Contra Costa Transit Authority City of Rio Vista Delta Diablo Sanitation District City of San Luis Obispo Dublin-San Ramon Services District City of San Ramon East Bay Municipal Utility District City of Soledad East Palo Alto Sanitary District City of South San Francisco Fairfield-Suisun Sanitary District City of Sunnyvale Feather River AQMD City of Walnut Creek Goleta Sanitary District Groveland Community Services District Counties Ironhouse Sanitary District County of Alameda Housing Authority Las Gallinas Valley Sanitary District County of Contra Costa Mammoth Community Water District County of Los Angeles Marina Coast Water District County of Marin Mendocino Coast District Hospital County of Marin Housing Authority Metropolitan Transit Commission County of San Mateo Napa Sanitation District Contra Costa County Retirement Association Novato Sanitary District Ojai Valley Sanitary District KOFF&ASSOCIATES,INC. Classification&Compensation Study Proposal Page 8 of 17 Courts Port of Oakland Superior Court,Amador County Ross Valley Sanitary District Superior Court,Calaveras County Sanitary District No. 5 of Marin Superior Court, San Mateo County County Superior Court, San Benito San Ramon Valley Fire District Superior Court,Tuolumne County Santa Clara Valley Water District Sausalito—Mann City Sanitary District South Coast Air Quality Management District Stege Sanitary District Tiburon Sanitary District Truckee Sanitary District West Bay Sanitary District West County Wastewater District WORK PLAN AND METHODOLOGY This section of the proposal identifies the actual work scope. We believe that our detailed explanation of approach and work tasks clearly identify our approach and comprehensiveness. We have found that, oftentimes, our proposals address a very high level of time commitment; which sometimes results in a higher proposal cost. We believe that our methodology and implementation success rate is attributable to the significantly greater level of contact we have with Council members, employees, management and bargaining unit representatives. The time we commit to working with the employees (Project Team meetings, orientation, employee desk audits, appeal process, etc.) results in a significantly greater buy-in throughout the process and very few,if any, formal appeals,at the end of the process.Our clients always provide us feedback that our process was professional,comprehensible,understandable, timely and inclusive. Our approach is to complete the classification study before completing the compensation review. The reasons for this include: ➢ The description of the work performed and the requirements for that work are,in the minds of the employees and their supervisors, inextricably associated with the "worth of that work"or compensation, which is often a highly emotional issue. Separating the two studies, even though elements of both studies may be conducted concurrently, tends to produce more objective classification results. ➢ The compensation review will be completed when there is a full understanding of the work of the District;thereby ensuring that the data developed from comparator agencies and classes is accurate. Given these parameters, our approach would be as follows: KOFF&ASSOCIATES,INC. Classification&Compensation Study Proposal Page 9 of 17 A. INITIAL DOCUMENTATION REVIEW AND MEETING WITH THE PROJECT TEAM This phase includes identifying the key client project team, contract administrator and reporting relationships. Our team will meet with the client team to create the specific work plan and work schedule; reaffirm the primary objectives, determine deadline dates; discuss the scheduling of desk audits; determine who will be responsible for coordinating/scheduling communications with employees and supervisors; and develop a timetable for conducting the same. Also included will be the gathering of written documentation including identifying the incumbents and assembling the current class descriptions, organizational charts, MOU's, Personnel Policies and any other relevant documentation. District terminology and methods of current classification procedures, as well as the written questionnaire instrument that will be used in the job analysis phase of this study will be reviewed and agreed to. We will agree to a class description format and discuss/reconfirm comparator agencies for salary survey purposes. B. Orientation Meeting with District Staff and Distribution of Questionnaire On the same day (for cost containment purposes) we will facilitate up to two-orientation meeting (time to be coordinated around staff availability) and distribute the Position Description Questionnaire. While these meetings may not be mandatory, they are highly recommended, as they form the beginning of the educational process that continues throughout the study. Project processes will be explained, expectations will be clarified and elements that are not a part of the study will also be covered. Questions will be answered and hints for completing the questionnaire will be given. If the District desires, the questionnaire can be attached to the incumbent's current class description to be used as a tool for completing the questionnaire. Although we provide an email version of our questionnaire so that employees can more easily complete them, we require a hard copy with signatures affixed before we can begin the evaluation process. It would be our recommendation that the above two meetings be scheduled on the same day as a Board of Directors meeting (for cost containment purposes). Our attendance at this Board meeting would be to discuss compensation philosophy, discuss recommended District comparators and agree on the parameters of the study. C. POSITION DESCRIPTION QUESTIONNAIRE REVIEW AND EMPLOYEE AND SUPERVISORY INTERVIEWS Upon receipt and analysis of the questionnaires, they will be reviewed and analyzed and interviews will be scheduled with employees. Because this is a critical step in the information-gathering and educational process, we recommend scheduling interviews with staff (our proposal speaks to 100%, assuming availability). Group interviews (for multi- incumbent positions)will be scheduled whenever possible for cost-containment. KOFF&ASSOCIATES,INC. Classification&Compensation Study Proposal Page 10 of 17 Interviews held with supervisors will clarify their own responsibilities as well as confirming the information we have received in the interviews with their staff. D. CLASSIFICATION CONCEPT DEVELOPMENT As is our normal process,prior to developing detailed class descriptions and allocation lists,a classification plan concept document will be submitted for management review and approval. This document will list broad class concepts and highlight where significant changes may be recommended. At this stage, we will also discuss organizational issues and potential changes due to change and growth and potentially recommend additional classes to be included in the plan (such as flexibly staffed positions), both for career opportunity and future growth expectations. Proposed detailed classifications, including reclassifications, title changes and class consolidation will be considered and discussed. This is initially accomplished with our project team and the District Manager directly after the final interviews are conducted with staff and is followed up with a written document so that overall classification philosophy and class plan structure meet all of the District's expectations and operational needs. E. CLASS DESCRIPTION DEVELOPMENT/POSITION ALLOCATION DEVELOPMENT After preliminary approval of the class concepts, new and/or updated class descriptions will be developed for each proposed class, following the format approved by the District. We have attached samples of our standard classification format (including ADA statements); however, we can customize this model with one preferred by the District. The model submitted with the RFP is very similar to our model. A detailed, incumbent-specific allocation list for each position included in the study will be prepared, specifying current and proposed classification title and the impact of our recommendations (upgrade, downgrade, title change, no change). This will be provided for review to the District prior to releasing any information to employees and bargaining units. F. EMPLOYEE REVIEW PROCESS A draft copy of a revised/new class description will be submitted to each employee, supervisor and department manager. Our experience has been that this is one of the most critical phases of the project. A proactive and effective communication process at this crossroad, often avoids a formal appeal, adversarial meeting or a major conflict at the conclusion of the study. Employees shall submit their written concerns (via their supervisor/manager) to our office. While employees may not always agree with our recommendations, they have a "second chance" to ensure that they have been heard and to continue the educational process regarding why specific recommendations were made. Significant employee comments will be reviewed with District staff prior to making any significant changes to the initial proposed class plan. These discussions may be email and/or telephone interviews, depending upon the extent of the response. Allocation and/or class description changes will be made as required. All employees with maior allocation or KOFF&ASSOCIATES,INC. Classification&Compensation Study Proposal Page I I of 17 classification concerns will be notified in writing, minor wording changes will be reviewed and incorporated where appropriate; however, a follow-up communication may not be required for insignificant change. G. DETERMINE COMPARATOR AGENCIES AND BENCHMARK CLASSIFICATIONS I. Determination of Comparator Agencies At the initial meeting with the project team, we will discuss the compensation study factors that need to be agreed upon. We will discuss possible comparator agencies, benchmark positions and benefit data that will be included in the study. The selection of comparator agencies/published salary data is considered a critical step in the study process. Using the following factors to identify appropriate cities, we will receive approval from the Board of Directors and hopefully buy-in from management and staff before proceeding with the salary survey: ➢ Organizational type and structure — While various public agencies may provide overlapping services and employ some staff having similar duties and responsibilities,the role of each agency is somewhat unique, particularly in regard to its relationship to its citizens and level of service expectation. During this iterative process, previous comparator agencies/published salary surveys that have been utilized will be discussed and the advantages/disadvantages of it will be discussed. ➢ Similarity of population served, agency demographics, agency staff and operational and capital improvement budgets—These elements provide guidelines in relation to resources required(staff and funding)and available for the provision of agency services. ➢ Scope of services provided—While having an agency that provides all of the services at the same level of citizen expectation is ideal for comparators, as long as the majority of services are provided in a similar manner,sufficient data should be available for analysis. ➢ Labor market — The reality of today's labor market is that many agencies are in competition for the same pool of qualified employees. No longer do individuals necessarily live in the community they serve. Therefore, the geographic labor market area(where the agency may be recruiting from or losing employees to)will be taken into consideration when selecting potential comparator organizations. 2. Determination of Benchmark Classes and Benefit Factors In the same collaborative manner as described above in Step 1,the classes to be surveyed will be determined (approximately 70% of the classes), as well as the total compensation factors to be collected. Again, consensus should be reached by all parties prior to commencements of the data-gathering process. KOFF&ASSOCIATES,INC. Classification&Compensation Study Proposal Page 12 of 17 "Benchmark classes" are normally chosen to reflect a broad spectrum of class levels and bargaining units. In addition, those that are selected normally include classes that are most likely to be found in other cities,and therefore provide a sufficient valid sample for analysis Benefit data elements for a total compensation study normally include at least the following, (which are generally available to all staff in a specific job classification. It is our understanding that health and welfare benefits are not to be included and we will discuss the agency's definition of welfare as to what benefits may or may not be surveyed. Shown below are descriptions of those benefits that we normally collect: ➢ Monthly Salary — The top of the normal, published salary range. All figures are presented on a monthly basis. ➢ Employee Retirement—This includes two figures: the amount of the employee's State (PEAS) or other public retirement contribution that is contributed by the agency and the amount of the agency's Social Security contribution. Many agencies have enhanced their PERS/alterative retirement program and we collect and document these costs also. ➢ Insurance—Health, Dental, Life, Long-Term Disability, Short-Term Disability, Vision, etc. ➢ Leave—Other than sick leave, which is usage-based, leave is the amount of days off for which the agency is obligated. All days will be translated into direct salary costs. ➢ Holidays—The number of holidays(including floating) available to the employee on an annual basis. ➢ Vacation — The number of vacation days available to all employees after five years of employment. ➢ Administrative/Personal Leave— Administrative leave is normally the number of days available to management staff to compensate for the lack of payment for overtime. Personal leave may be available to other groups of employees to augment vacation or other time off. ➢ Automobile — This category includes either the provision of an auto allowance or the provision of an auto for official and/or personal use. ➢ Deferred Compensation —This is any deferred compensation provided to all members of a classification without the requirement for an employee to provide a matching or minimum contribution. ➢ Variable Pay — This category includes other forms of pay that are budgeted and considered as part of the employee's total compensation(in varying degrees). ➢ Other — This category includes any other benefits that are available to all employees within a classification and not already specifically detailed. KOFF&ASSOCIATES,INC. Classification&Compensation Study Proposal Page 13 of 17 H. DATA COLLECTION Our firm does not collect market salary data by merely sending out a written questionnaire. We find that such questionnaires are often delegated to the individual in the department with the least experience in the organization and given a low priority. Typically, we collect this information in person by a prior appointment or we request salary schedules, organization charts and other information for review. With this prior knowledge and our experience in the public personnel field, we can make preliminary"matches"and then schedule an appointment by telephone, and sometimes in person, with a knowledgeable individual to answer specific questions. We find that the information collected using these methods has a very high validity rate and is generally substantiated before employee and bargaining units as well as governing bodies. As part of the study, we review your agency's regular workweek and normalize the study to your agency standard and also ensure that PERS is not included in the base salary of any agency. I. ANALYSIS AND PRELIMINARY DATA REVIEW Data will be entered into spreadsheet format designed for ease of interpretation and use. The information will be presented in a format that will identify the comparator positions used for each classification comparison. Information will be calculated based upon both average and median figures,allowing the agency to make informed compensation decisions. Benefit data will be collected and displayed in an easy-to-read format. J. DRAFT COMPENSATION FINDINGS AND MEETING wITH PROJECT TEAM We distribute our draft findings to the District. After the District's preliminary review, K&A will meet with the Project Team as well as representatives from the various stakeholders to clarify data,to receive requests for reanalysis of certain comparators (through the employee's supervisor) and to answer questions and address concems. This provides an opportunity for the project team and employees to review and question any of our recommended benchmark comparator matches. If questions arise, we review our analysis again to reconfirm our original analysis and/or make corrections as appropriate. K. INTERNAL JOB ANALYSIS To determine internal equity for non-benchmarked positions, considerable attention will be given to this phase of the project. It is necessary to develop an internal position hierarchy based on objective factors, some of which include: KOFF&ASSOCIATES,INC. Classification&Compensation Study Proposal Page 14 of 17 1. Education 2. Experience 3. Problem Solving/Ingenuity 4. Attention/Stress(Concentration/Time Pressure&Interruptions) 5. Independence of Action/Responsibility 6. Contacts with Others 7. Supervision Given to Others 8. Consequences of Action/Decisions Made on the Job 9, Working Conditions 10. Physical Demands L. REVIEW THE SALARY STRUCTURE Depending on data developed as a result of the internal analysis, we will review and make recommendations regarding internal alignment and the salary structure(set of ranges) within which the classes are allocated,based upon the District's preferred compensation model. M. PREPARATION OF FINAL REPORTS AND DELIVERABLES Two separate reports will be presented- first in Draft and then in Final form, after comments are received and included,as appropriate. Volume I will contain detailed classification and allocation findings and recommendations and include all of the classification descriptions. An educational document for developing future classifications and the maintenance of the Plan are also contained within this volume. Volume H will provide detailed compensation findings and documentation. All elements detailed in the"Deliverables"section(below)will be included. N. PARTICIPATION IN AN DISTRICT FORMAL APPEAL PROCESS Should the District have a formal appeal process regarding the allocation to salary range, this proposal does not cover time regarding a formal appeal process (the informal appeal process is identified in F [classification] and J [compensation] above). Should our on-site participation be desired, our stated composite hourly rate will be honored. As mentioned above,however,our internal process usually addresses most of the appeal issues. O. PRESENTATION TO THE BOARD OF DIRECTORS Our proposal includes one initial overview and one final presentation to the Board. KOFF&ASSOCIATES,INC. Classification&Compensation Study Proposal Page 15 of 17 P. Review of Exemption Status Although not specified in the Request for Proposal, with the recent changes to the Fair Labor Standards Act, most agencies need to have their classifications reviewed to ensure legal exemption status. After developing new classifications, this is particularly essential. Although this review would be completed as part of the classification process, we include it at the end so that, if unnecessary, the hours committed to this part of the proposal can be excluded when considering overall cost. DELIVERABLES Volume I ➢ A summary classification study document that outlines study processes, concepts and overall areas of concern of the District(such as consolidation of classes,reclassification issues,etc.); ➢ Detailed classification plan and allocation recommendations that will determine definitive job series and career ladders including the impact of our recommendations for incumbents; ➢ Identification of Fair Labor Standards Act (FLSA)Exemption/Non-Exemption status of each classification; and ➢ A hard copy of new and updated class specifications that are up-to-date, accurate and provide for organizational growth and development. Volume II ➢ A summary of and detailed base salary findings with recommendations for an overall compensation salary step and range plan; ➢ Internal relationships and market compensation data will be outlined for each class so that future equity relationships between classes can be continued; and ➢ Implementation recommendations for achieving compensation goals within a reasonable time frame and the economic and political limitations of the District. Throughout the Study ➢ Extensive communication with the Project Team,District Management,the Board and others; ➢ Three bound and one camera-ready,unbound original report; and ➢ Reports,analysis and other relevant data on email or disc in WORD and EXCEL format. EXPECTATIONS OF DISTRICT SUPPORT In order to conduct this study in the most timely and cost-effective manner, we expect support from the District in the following areas: KOFF&ASSOCIATES,INC. Classification&Compensation Study Proposal Page 16 of 17 ➢ Timely provision of written documentation, such as current class specifications, MOU's, organizational charts,budget documents,requests for audits,past studies, etc.; ➢ Assistance in the notification and scheduling of orientation meetings; ➢ Assistance in collecting and forwarding questionnaires and review comments and in ensuring that materials are returned in a timely manner; ➢ Assistance in scheduling Project Team, bargaining unit, management, employee audit and other meetings; ➢ Meeting agreed to time lines; and ➢ The provision of scheduling adequate interview space. PROJECT SCHEDULE Our experience is that studies of this nature and for this size organization take approximately four to five months to complete, allowing for adequate questionnaire completion; interview time; review steps by the agency; the development of final reports and recommendations; and presentation to Council. Given our current workload, we would be able to commence with this study in early September: Initial Orientation/Start-up/Council meetings Two weeks after contract signature Questionnaires Returned to Our Office 3 weeks from start-up meetings Employee/Management Interviews 4 weeks from receipt of all questionnaires Org./Class.Concept Development 5 weeks from receipt of all questionnaires Class Description Development 6-7 weeks from receipt of all questionnaires FLSA Exemption Review 7 weeks from receipt of all questionnaires Employee/Management Review 8 weeks from receipt of all questionnaires of Draft Descriptions and Follow-up Preparation of Final Class Descriptions 9 weeks from receipt of all questionnaires Collecting and Analyzing Market Data 9-11 weeks from receipt of all questionnaires Internal Job Analysis 1 I weeks from receipt of all questionnaires Development of Salary Ranges and 13 weeks from receipt of all questionnaires Compensation Strategies District Review Process 14 weeks from receipt of all questionnaires K&A Re-analysis/Feedback 15 weeks from receipt of all questionnaires Development of Draft Final Reports 17 weeks from receipt of all questionnaires Development of Final Reports 19 weeks from receipt of all questionnaires Presentation to Board As scheduled PROPOSED PROJECT COSTS Project Phase Hours A./B. Document Review/Project Team/Council Meetings/Orientations 28 C. Position Description Questionnaire Review,Employee interviews, 50 KOFF&ASSOCIATES,INC. Classification&Compensation Study Proposal Page 17 of 17 Supervisory Interviews(Based on 100%interview rate of all study employees including supervisors/managers) D. Classification Concept/Allocation Development 10 and on-site meeting E. Class Description Development/Position Allocation Development 58 F. Employee/Supervisory Review/Informal Appeal Process and Review 15 G Identify Benchmark Agencies,Positions,Benefits 8 IL Market Compensation Data Collection 50 I. Analysis and Preliminary Data Review 15 J. Draft Findings/Project Team Meeting 20 K. Internal Job Analysis 8 L. Salary Structure Development 8 M. Draft/Final Report Development 15 N. Formal Appeal Process * 0 O. Presentation to District Board 8 P. FLSA Exemption Review 10 Total Professional Hours 303 Combined professional and support staff composite rate: $90/Hour $27,270. Expenses, including, but not limited to: $2,000. Duplicating and binding reports,phone,supplies,FAX,UPS,postage, Lodging&per diem, etc. TOTAL LUMP SUM COST OF PROJECT: $29,270. *Additional professional consulting will be honored at composite rate of$90/hr. INSURANCE REQUIREMENTS Our insurance coverage is tailed to the amount required by cities and other public agencies and we will submit support of this level of coverage and to endorse the District with our General Liability insurance coverage(only)upon award of contract if desired: Workers' Compensation: Statutory Limits Automobile Insurance: $1 Million per accident Errors and Omissions: $lMillion per occurrence General Liability: Million per occurrence Respectfully Submitted, By. &ASSOCIATES,INC. State of alifornia cs4 11 B.Koff Date esident/CEO KOFF&ASSOCIATES,INC. August 25, 2005 Mr. David Heath, CPA TOWN OF TRUCKEE 10183 Truckee Airport Road Truckee, California 96161-3306 Dear Mr. Heath: MAXIMUS is pleased to present the following scope of services to complete an update of the Town of Truckee's compensation and classification system, excluding positions in the Police Department. This letter identifies specific tasks separately and indicates the fees and deliverables associated with each task. PROJECT SCOPE 1) Market Survey: MAXIMUS will conduct a customized salary survey to determine wages paid to comparable positions in the Town's competitive labor market. Salary data gathered for selected benchmarks will be carefully analyzed to ensure a high level of validity, and the results of the survey are made available to the organization. MAXIMUS consultants will review the data to ensure proper matches are developed. We will assume 25 benchmark positions will be surveyed. The agencies surveyed for the pay structure adjustments consist of the original respondents to the June 2002 salary survey which included the following: City of Auburn City of South Lake Tahoe City of Grass Valley County of El Dorado City of Mammoth Lakes County of Nevada City of Placerville County of Placer City of Reno County of Washoe City of Rocklin FEE: $6,000. DELIVERABLE: Summary listing of all surveyed positions and a summary listing sent to all respondents. 2) Classification Updates: MAXIMUS will analyze approximately twenty (20) Town positions by reviewing revised job descriptions and any other necessary documentation to ensure that these positions are properly placed within the Town's current classification and pay structure. Orientation meetings will be conducted to allow all employees an opportunity to hear about the study objectives and to ask questions about the process. In addition, a MAXIMUS consultant will conduct four days of on-site interviews with affected employees and management staff to clarify information presented and to discuss primary position duties, responsibilities and work requirements. FEE: $7,900 (excluding travel costs). DELIVERABLE: A summary letter that identifies the recommended classification levels of all positions evaluated during this study. Relevant portions of this letter will be included in the final report. 3) Pay Plan Update: MAXIMUS utilizes mathematical regression to integrate the relative worth of classifications (as established through job evaluation) with the competitive worth of each classification in the competitive labor market. This produces a pay schedule (a list of pay grades and their respective salary ranges) that can be structured and customized to reflect the organization's compensation philosophy. The Town currently utilizes this methodology in its existing pay structure. MAXIMUS will use the new survey data and the revised classification information to update the Town's pay plan. The updated pay plan will be designed to meet both internal and competitive needs. FEE: $6,000. DELIVERABLE: Updated Grade Order Listing, Updated Alphabetical Order Listing, Updated Salary Schedule. 4) Implementation Costs: MAXIMUS will assist the Town in the implementation of the new pay plan (i.e. placing employees into their new salary ranges based on their proposed classification and pay grade). Preliminary costs (beyond standard "cost-to- minimum" costs) can be calculated showing two alternative methodologies, with emphasis placed on resolving existing pay issues in the most fair and equitable manner, taking into consideration financial constraints and the organization's compensation philosophy. Additional implementation scenarios would be billed on an hourly basis. It is assumed the Town will maintain its existing open range and width structure. FEE: $2,000. DELIVERABLE: Implementation Cost Report that lists individual Pace 2 employees and the cost associated with adjusting their current salaries to the new pay ranges and steps. 5) Draft and Final Reports: MAXIMUS will prepare draft reports of the classification and pay plan recommendations and will discuss the draft report via telephone with appropriate Town management staff and employees, if required. After the draft report is thoroughly reviewed and approved by Town management, MAXIMUS will prepare a final report that will be used as the basis for recommendations and a presentation to the Town Council. FEE: $6,000. DELIVERABLE: Draft and Final Reports that include summary findings and recommendations on classifications and pay levels for all positions within the pay structure. 6) Presentation of Deliverables to City Staff: MAXIMUS will present the findings in a Power Point presentation format to appropriate Town staff and the Town Council. The presentation will show the recommended pay plan for the organization, including classifications, pay grade, salary ranges. The reports will also show recommended classification assignments for employees/positions along with associated implementation costs. This fee includes the consultant making one on- site presentation of the findings, but does not include the expenses associated with that trip. Actual expenses would be billed separately and are estimated to not exceed $2,700. Additional presentations to the Town Council or employee groups would be billed at a daily rate of$1,285 plus expenses. FEE: $ 2,000(excluding travel costs). DELIVERABLE: Power Point presentation summarizing the study findings. Page 3 FEES AND CONTRACTING Fees: The following table summarizes our fee structure and the proposed timelines: — — Task Timeframe I Fee Market Survey/Analysis Weeks 1 — 10 $6,000 Classification Updates Weeks 1 - 8 $7,900 Pay Plan Development Weeks 8 — 12 $6,000 Initial Implementation Scenario Weeks 11-12 $2,000 Week 12 — Draft Draft & Final Reports $6,000 Final — 1 week after Town _____Approval Final Presentation TBD $2,000 TOTAL $29,900 (plus travel expenses) Any additional meetings or requests for additional consulting work associated with discussing compensation philosophy, meeting with employee groups, or other on-site requirements will be billed at the prevailing hourly rate of $165.00 per hour, plus expenses. We are pleased to provide these services to the Town of Truckee. Please feel free to contact me at (972) 490-9990 if you have further questions or concerns. Sincerely, J. Mark Carpenter Senior Manager JMC/snn Page 4 TOWN OF TRUCKEEP AGREEMENT FOR PROFESSIONAL CONSULTING SERVICES :t This Agreement is made and entered into on September 15, 2005 by and between the Town of Truckee, a municipal corporation of the State of California (hereinafter"TOWN") and MAXIMUS (hereinafter "CONSULTANT"). RECITALS WHEREAS, the principal members of CONSULTANT are classification and compensation experts, and are experienced in providing classification and compensation consulting services; and WHEREAS, TOWN desires to engage CONSULTANT to render classification and compensation consulting services as set forth herein for the purpose of updating the Town's Job Classification Grade Order (hereinafter "Project"); NOW, THEREFORE, in consideration for the promises set forth herein, the receipt and adequacy of which is hereby acknowledged, the parties hereto agree as follows: ARTICLE 1 SCOPE OF SERVICES; TERM 1.1 General Scope of Services. CONSULTANT shall, upon request from Town, provide consulting services on various issues involving the classification and compensation of Town employees. Scope of Work attached hereto as Exhibit "A". 1.2 Term. The term of this Agreement shall be from September 15, 2005 until January 15, 2006, or until such time as it is terminated pursuant to the provisions in Article V of this Agreement. ARTICLE 11 RESPONSIBILITIES OF CONSULTANT 2.1 Control and Payment of Subordinates. TOWN retains CONSULTANT on an independent contractor basis and CONSULTANT is not an employee of TOWN. The personnel performing the Services under this Agreement on behalf of CONSULTANT shall at all times be under CONSULTANT's exclusive direction and control. CONSULTANT shall pay all wages, t salaries, and other amounts due such personnel in connection with their performance of services under this Agreement and as required by law. CONSULTANT shall be responsible for all reports and obligations with respect to such personnel, including, but not limited to social security taxes, income tax withholding, unemployment insurance, and workers' compensation insurance. 2.2 Conformance to Applicable Requirements. All work prepared by CONSULTANT shall be subject to the approval of TOWN. 2.3 Standard of Care; Licenses. CONSULTANT shall perform the Services underthis Agreement in a skillful and competent manner. CONSULTANT shall be responsible to TOWN for any errors or omissions in its execution of this Agreement. CONSULTANT represents and warrants to TOWN that it has all licenses, permits, qualifications and approvals of whatever nature that are legally required to practice its profession. CONSULTANT further represents and warrants that it shall keep in effect all such licenses, permits, and other approvals during the term of this Agreement. 2.4 Project Representatives. CONSULTANT assigns Mark Carpenter as its Project Representative who shall coordinate all phases of the project. The Project Representative shall be available to TOWN at all reasonable times. CONSULTANT may appoint another person as Project Representative upon written notice to TOWN. David Heath shall act as Town's Project Representative for purposes of carrying out this Agreement. 2.5 Accounting Records. CONSULTANT shall maintain complete and accurate records with respect to costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. CONSULTANT shall allow an authorized representative of TOWN, during normal business hours,to examine, audit, and make transcripts of copies of such records. CONSULTANT shall allow inspection by TOWN of all work, date,documents, proceedings, and activities related to the Agreement for a period of three (3)years from the date of final payment under this Agreement. ARTICLE III FEES AND PAYMENTS 3.1 Compensation. Except as provided in this section, CONSULTANT shall receive compensation for all Services rendered under this Agreement Exhibit "A". 3.2 Payment of Compensation. CONSULTANT shall provide to TOWN a monthly statement that indicates work completed, hours of service rendered and units of supply provided to the Project by CONSULTANT from the first of the first of the month, or the start of the subsequent billing periods, as appropriate, through the date of the statement. TOWN shall, within 45 days of receiving such statement from CONSULTANT, review the statement and pay all approved charges thereon. 3.3 Extra Work. At any time during the term of this Agreement, TOWN may request that CONSULTANT perform Extra Work. As used herein, "Extra Work" means any work that is determined by TOWN to be necessary for the proper completion of the Project, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. CONSULTANT shall not perform Extra Work until receiving written authorization from TOWN'S Project Representative. 3.4 Reimbursement for Expenses. CONSULTANT shall not be reimbursed for any expenses unless authorized in writing by TOWN. ARTICLE IV INDEMNIFICATION AND INSURANCE 4.1 Indemnification. CONSULTANT shall defend, indemnify and hold TOWN, its officials, officers, employees and agents free and harmless from any and all liability from loss, damage or injury to property or persons, including wrongful death, directly caused by the negligent acts, omissions or willful misconduct of CONSULTANT in connection with CONSULTANT's performance of this AGREEMENT, including the payment of reasonable attorneys' fees. Further, CONSULTANT shall defend at its own expense, including attorneys'fees, TOWN, its officials, officer, employees, and agents in any legal action based upon such negligent acts, omissions or willful misconduct. CONSULTANT shall not be responsible for any damages or liability resulting, in whole or in part, from the negligent acts, omissions or willful misconduct of TOWN, its officials, officers, employees or agents or any third party. In no event shall CONSULTANT be liable for special, indirect, incidental, economic, consequential, or punitive damages regardless of the legal theory under which such damages are sought, and even if CONSULTANT has been advised of the likelihood of such damages. TOWN agrees that CONSULTANT's total liability to TOWN for any and all 3 damages arising out of or related to this AGREEMENT shall not, in the aggregate, exceed three times the fees paid to CONSULTANT. 4.2 insurance. CONSULTANT shall obtain and shall require its subconsultants to obtain insurance of the types and in the amounts described below and satisfactory to TOWN. 4.2.1 Commercial General Liability Insurance. CONSULTANT shall maintain occurrence version commercial general liability insurance of equivalent form with a combined single limit of not less than $1,000,000 per occurrence. If such insurance contains a general aggregate limit, it shall apply separately to this Agreement or be no less than two times the occurrence limit. 4.2.2 Business Automobile Liability Insurance. CONSULTANT shall maintain business automobile liability insurance or equivalent form with a combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for owned, hired and non-owned automobiles. 4.2.3 Professional Liability Insurance. CONSULTANT shall maintain errors and omissions liability insurance with a limit of not less than $1,000,000 each claim. Such insurance shall be maintained for a minimum of five years following completion of the Services. 4.2A Workers' Compensation Insurance. CONSULTANT shall maintain workers'compensation insurance with statutory limits and employers' liability insurance with limits of not less than $1,000,000 per accident. 4.3 Additional Insureds. Such insurance shall name TOWN, its officials, officers, employees, agents and consultants, as insureds with respect of performance of Services. Such insured status shall contain no special limitations in the scope of its protection to the above-listed insureds. All insurance shall be primary with respect to any insurance or self-insurance programs covering TOWN, its officials, officers, employees, agents, and consultants and shall contain standard separation of insureds provisions. 4.4 Certificates of Insurance. CONSULTANT shall, prior to commencement of the Services, furnish to TOWN properly executed certificates of insurance, and certified copies of endorsements 4 and policies, which shall clearly evidence all insurance required in this Section. CONSULTANT shall not allow such insurance to be canceled, expire or be materially reduced in coverage except on 30 days prior to written notice to TOWN. 4.5 Policy Endorsement. The certificate of Insurance must be accompanied by a Policy Endorsement verifying a change to the policy has occurred to additionally insure The Town of Truckee with reference to the contract. 4.6 Term of Coverage. CONSULTANT shall maintain all insurance required by this Agreement from the time Services commence until Services are completed, except as may be otherwise required by this Article. CONSULTANT shall replace any policies, certificates and endorsements for any insurance expiring prior to completion of the Services. 4.7 Licensed Insurer. CONSULTANT shall place all insurance with insurers having an A.M. Best Company rating of no less than A:VIII and licensed to do business in California. ARTICLE V TERMINATION 5A Notice of Termination. TOWN may, by written notice to CONSULTANT, terminate the whole or any part of this Agreement at any time, with or without cause by g iving w ritten n otice to CONSULTANT of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. CONSULTANT shall discontinue all Services affected within seven (7) days of receipt of such notice, unless otherwise instructed by TOWN in writing. CONSULTANT may not terminate this Agreement except for cause. 5.1.1 Termination For Convenience. If termination is for the convenience of the TOWN, CONSULTANT shall be paid for Services performed through the date of termination, upon receipt of written documentation by TOWN. Such payment shall include a pro-rated amount of profit, if applicable, but no amount shall be paid for anticipated profit on unperformed services. 5.2.2 Termination for Cause. If termination is due to CONSULTANT's failure to fulfill its material obligations under this Agreement, CONSULTANT shall be compensated for Services that have been 5 completed and accepted by TOWN. CONSULTANT shall be liable to TOWN for any reasonable additional costs incurred in the revision of unsatisfactory work received from CONSULTANT, which at TOWN'S discretion must be revised, in part or in whole, to complete the Project. This liability is subject to the limitation stated in Article IV of this AGREEMENT. 5.2 Procurement of Similar Services. In the event this Agreement is terminated in whole or in part as provided by this Article, TOWN may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. 5.3 Work Product. If this Agreement is terminated as provided in Section 5.1 of this Agreement, or at the time that CONSULTANT completes the work required under this Agreement, TOWN may require CONSULTANT to provide all finished or unfinished documents, date, studies, drawings, reports, etc., prepared by CONSULTANT in connection with the performance of Services under this Agreement. ARTICLE VI GENERAL PROVISIONS 6.1 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may be modified only by a writing signed by both parties. 6.2 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties, and shall not be assigned by CONSULTANT without the prior written consent of TOWN. 6.3 Subcontracts. CONSULTANT shall not subcontract any portion of the work required by this Agreement without prior written approval of TOWN. All approved subcontracts, if any, shall be accomplished by a written instrument. S uch instrument shall contain an express assumption by the subcontractor of all conditions and terms and covenants contained in this Agreement. 6.4 Equal Opportunity Employment. CONSULTANT represents that it is an equal opportunity employer and shall 6 not discriminate against an employee or applicant for employment with CONSULTANT on the basis of race, color, religion, national origin, ancestry, sex or age. 6.5 Attorney's Fees. If either party commences an action against the other party arising cut of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney's fees and costs of suits. 6.6 Governing Law. This Agreement shall be governed by and construed with the laws of the State of California. 6.7 Time of Essence. Time is of the essence for each and every provision of this Agreement. 6.8 Right to Employ Other Consultants. TOWN, at its own and sole expense, reserves the right to employ other consultants in connection with this Project. 6.9 Delivery of Notices. All notices permitted, or required under this Agreement, shall be deemed made when delivered to the applicable party's representative as provided in this Agreement. A dditionally, s uch n otices m ay b e g iven to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose: TOWN: CONSULTANT: Town of Truckee MAXIMUS 10183 Truckee Airport Road 13601 Preston Road, Suite 201 E Truckee, CA 96161-3306 Dallas, TX 75240 Attn: Tony Lashbrook Attn: Mark Carpenter Town Manager Such notice shall be deemed made when personally delivered or when mailed,forty- eight (48) hours after deposit in the U.S. Mail, first class postage prepaid, return receipt requested and addressed to the party at its applicable address. 7 IN WITNESS WHEREOF, the parties hereto have executed the Agreement on the date first hereinabove written. TOWN OFTRUCKEE I DATED: Tony Lashb ok, Town Manager APPROVED AS TO FORM: DATED: J. Dennis Crabb, Town Attorney Town of Truckee CONSULTANT Firm Name 4 s DATED: y7 .� By. Sag�ature� Cl Printed Name & Title: 8 INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERB, AFL-CIO 1 wo i r 10 __0 H ----- ---- ---- 30 ORANGE TREE CIRCLE (707)452-2700 VACAVILLE, CA 95687 FAX(707) 452-2701 P,O BOX 2547,VACAVILLE,CA 95696 February 9, 2006 Dear: Members of the Board of Directors Peter Holzmeister, General Manager IBEW 1245 welcomes the opportunity to comment on the District's proposed wage & compensation survey. The Union is encouraged by the District's commitment to establish a competitive wage and compensation package for all District employees. We have expressed the Unions concern that retaining and attracting skilled personnel is an increasing challenge for the District. If this survey can be accomplished in an accurate, independent and verifiable manner. the District may improve its ability to compete for and retain qualified employees. In order to develop and establish confidence in the survey, the Union suggests the following issues be incorporated into the survey structure: • Positions to be surveyed (Attachment A) • Agencies/Compames to be surveyed (Attachment B) • Benefit items to be surveyed (Attachment C) • Use of an independent and credible consultant • Ability for Union to validate survey results • Union 1245 participation throughout the survey process * Review and comment on RFP preparation and consultant selection * Union requests that CPS be removed from consideration * Share and exchange all information throughout the survey process in a timely manner • Union to validate survey results -3 We look forward to working closely with the Board of Directors in establishing this valuable tool. We remain available to participate in any capacity the Board of Directors desires. Sincerely, IBEW 1245 Santiago Salazar Business Representative George Caballero Negotiating Committee Member Mike Connell Negotiating Committee Member Tami McCollum Negotiating Committee Member Pat Waite Negotiating Committee Member Attachments: Attachment A Positions To Be Surveyed Accounting/Computer Operations Supervisor Customer Billing Supervisor Senior Clerk Meter Reader - Collector - Disconnect/reconnect Warehouse/Relief Utility Worker Automotive Mechanic Buyer/Clerk EIectric Services Planner Electrician/Meter Technician - Industrial Electrician - Relay Technician Electric Foreman Journeyman Lineman - Trouble Shooter Mapping Technician Contract Administration Clerk Water Services Planner Water Service Technician Water Foreman Attachment B Agencies /Companies To Be Surveyed 1245 Represented with CalPers Retirement SMUD Santa Clara Turlock Irrigation District City of Lodi City of Shasta City of Ukiah City of Healdsburg City of Redding City of Roseville Neighboring Utility with employees residing in Truckee PG & E Utilities with Water and Electricians Truckee Meadows Water Authority East Bay MUD Local Special District with Electricians Tahoe Forest Hospital Attachment C Benefit Items To Be Surveyed Entire List presented to Board on 2-1-06 CalPers Employee contribution rate Cost of Living Benefit Basis 12 or 36 month formula 401/457 Employer Contributions Employee Upgrade Procedures Bereavement Leave Education Reimbursement