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HomeMy WebLinkAboutKoff & Associates, Inc. CONSULTING SERVICES AGREEMENT BETWEEN THE TOWN OF LOS ALTOS HILLS AND KOFF&ASSCIATES,INC. THIS AGREEMENT for consulting services is made by and between the TOWN OF LOS ALTOS HILLS,located at 26379 Fremont Road,Los Altos Hills,CA 94022("Town")and KANEKO AND KRAMMER CORP dba KOFF&ASSOCIATES, INC.("K&A"),a California corporation located at 2835 Seventh Street, Berkeley,CA 94710(together referred to as the"Parties")as of May 16.2018(the"Effective Date"). Section 1. SERVICES. Subject to the terms and conditions set forth in this Agreement, K&A shall perform the work project that is identified above to Client and other such services as may be requested by Client from time to time and that are within the competence and consistent with the expertise of KM (collectively,the"Services"). 1.1 Term of Services. The term of this Agreement shall begin on the Effective Date and shall end on July 31,2018,unless the term of the Agreement is otherwise terminated or extended,as provided for in Section 8. The time provided to K&A to complete the services required by this Agreement shall not affect the Town's right to terminate the Agreement,as referenced in Section 8. 1.2 Standard of Performance. K&A shall perform all services required pursuant to this Agreement according to the standards observed by a competent practitioner of the profession in said field, 1.3 Assignment of Personnel. K&A shall assign only competent personnel to perform services pursuant to this Agreement.In the event that Town,in its sole discretion,at any time during the term of this Agreement,desires the reassignment of any such persons, K&A shall,immediately upon receiving notice from Town of such desire of Town,reassign such person or persons. 1.4 Time. KM shall devote such time to the performance of services pursuant to this Agreement as may be reasonably necessary to meet the standard of performance provided in Section 1.1 above and to satisfy K&A's obligations hereunder. Section 2. COMPENSATION. Town hereby agrees to pay K&A a sum not to exceed$11.000 (Eleven Thousand Dollars),notwithstanding any contrary indications that may be contained in K&A's proposal,for services to be performed and reimbursable costs incurred under this Agreement.Time shall be billed on an hourly basis at rates set forth in Exhibit A. In the event of a conflict between this Agreement and K&A's proposal,attached as Exhibit A,regarding the amount of compensation,the Agreementshall prevail. Town shall pay K&A for services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified below shall be the only payments from Town to KM for services rendered pursuant to this Agreement. KM shall submit all invoices to Town in the manner specified herein. Except as specifically authorized by Town in writing,K&A shall not bill Town for duplicate services performed by more than one person. Consulting Services Agreement between 105/16/2018] Town of Los Altos Hills and Koff&Associates,Inc. Page 1 of 11 K&A and Town acknowledge and agree that compensation paid by Town to K&A under this Agreement is based upon K&A's estimated costs of providing the services required hereunder,including salaries and benefits of employees and subcontractors. Consequently,the parties further agree that compensation hereunder is intended to include the costs of contributions to any pensions and/or annuities to which K&A and its employees,agents,and subcontractors may be eligible. Town therefore has no responsibility for such contributions beyond compensation required under this Agreement. ( 2.1 Invoices. Consultant shall submit invoices,not more often than once a month during the term of this Agreement,based on the cost for services performed and reimbursable costs incurred prior to the invoice date. Invoices shall contain the following information: • Serial identifications of progress bills;i.e.,Progress Bill No. 1 for the first invoice, etc.; • The beginning and ending dates of the billing period; • At Town's option,for each work item in each task, a copy of the applicable time entries or time sheets shall be submitted showing the name of the person doing the work,the hours spent by each person,a brief description of the work,and each reimbursable expense; • The total number of hours of work performed under the Agreement by K&A and each employee,agent,and subcontractor of K&A performing services hereunder, • The K&A's signature; • K&A shall give separate notice to the Town when the total number of hours worked by K&A and any individual employee,agent,or subcontractor of K&A reaches or exceeds 75 hours within a 12-month period under this Agreement. 2.2 Monthly Payment. Town shall make monthly payments,based on invoices received,for services satisfactorily performed,and for authorized reimbursable costs incurred. Town shall have 30 days from the receipt of an invoice that complies with all of the requirements above to pay K&A. 2.3 Final Payment. Town shall pay the last 10%of the total sum due pursuant to this Agreement within 60 days after completion of the services and submittal to Town of a final invoice,if all services required have been satisfactorily performed. 2.4 Total Payment. Town shall pay for the services to be rendered by KM pursuant to this Agreement. Town shall not pay any additional sum for any expense or cost whatsoever incurred by K&A in rendering services pursuant to this Agreement. Town shall make no payment for any extra,further,or additional service pursuant to this Agreement. In no event shall K&A submit any invoice for an amount in excess of the maximum amount of compensation provided above either for a.task or for the entire Agreement,unless the Agreement is modified prior to the submission of such an invoice by a properly executed change order or amendment. 2.5 Hourly Fees. Fees for work performed by KM on an hourly basis shall not exceed the amounts shown on the compensation schedule attached hereto as Exhibit A.The current Consulting Services Agreement between [05/16/2018] Town of Los Altos Hills and Koff&Associates, Inc. Page 2 of 11 range of hourly rates for K&A time is from$70 per hour for Administrative/Technical,$130 per hour for Consultants,$135 per hour for Project Managers,and$170 per hour for Chief Executive Officer and President. Time is accounted for and billed on a quarter of an hour(.25)basis. 2.6 Reimbursable Expenses. Expenses are included in our combined professional and clerical composite hourly rate of $130 per hour, these include photocopying, binding, other similar document production charges, long distance telephone, mileage at the then current IRS rate, per diem, postage and courier, and other similar charges. Billable time shall be billed monthly,in arrears. 2.7 Payment of Taxes. K&A is solely responsible for the payment of employment taxes incurred under this Agreement and any similar federal or state taxes. 2.8 Payment upon Termination. In the event that the Town or K&A terminates this Agreement pursuant to Section 8,the Town shall compensate the KM for all outstanding costs and reimbursable expenses incurred for work satisfactorily completed as of the date of written notice of termination. K&A shall maintain adequate logs and timesheets to verify costs incurred to that date. 2.9 Authorization to Perform Services. The K&A is not authorized to perform any services or incur any costs whatsoever under the terms of this Agreement until receipt of authorization from the Contract Administrator Section 3. FACILITIES AND EQUIPMENT. Except as set forth herein, Consultant shall,at its sole cost and expense, provide all facilities and equipment that may be necessary to perform the services required by this Agreement. Section 4. INSURANCE REQUIREMENTS. Before beginning any work under this Agreement,K&A, at its own cost and expense,unless otherwise specified below,shall procure the types and amounts of insurance listed below against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by the K&A and its agents,representatives, employees,and subcontractors. Consistent with the following provisions, K&A shall provide proof satisfactory to Town of such insurance that meets the requirements of this section and under forms of insurance satisfactory in all respects,and that such insurance is in effect prior to beginning work to the Town. Consultant shall maintain the insurance policies required by this section throughout the term of this Agreement. The cost of such insurance shall be included in the Consultant's bid. Consultant shall not allow any subcontractor to commence work on any subcontract until Consultant has obtained all insurance required herein for the subcontractor(s)and provided evidence that such insurance is in effect to Town. Verification of the required insurance shall be submitted and made part of this Agreement prior to execution. Consultant shall maintain all required insurance listed herein for the duration of this Agreement. Consulting Services Agreement between [05/16/2018] Town of Los Altos Hills and Koff&Associates,Inc. Page 3 of 11 4.1 Workers'Compensation. K&A shall,at its sole cost and expense,maintain minimum limit on Statutory Workers'Compensation Insurance and Employer's Liability Insurance for any and all persons employed directly or indirectly by K&A. 4.2 Commercial General Liability and Property Damage Insurance. General Liability and Property Damage Combined.$1,000,000.00 per occurrence including comprehensive form,personal injury,broad form personal damage,contractual and premises/operation,all on an occurrence basis. If an aggregate limit exists, it shall apply separately or be no less than two(2)times the occurrence limit. 4.3 Automobile Insurance.$1,000,000.00 per occurrence. 4.4 Errors and Omissions Insurance. $1,000,000.00 aggregate. 4.4 All Policies Requirements. 4.4.1 Acceptability of insurers. All insurance required by this section is to be placed with insurers with a Bests'rating of no less than A:VII. 4.4.2 Verification of coverage. Prior to beginning any work under this Agreement, K&A shall furnish Town with complete copies of all policies delivered to K&A by the insurer,including complete copies of all endorsements attached to those policies. All copies of policies and endorsements shall showthe signature of a person authorized by that insurer to bind coverage on its behalf. If the Town does not receive the required insurance documents prior to the K&A beginning work, it shall not waive the K&A's obligation to provide them. The Town reserves the right to require complete copies of all required insurance policies at any time. 4.4.3 Deductibles and Self-Insured Retentions. K&A shall disclose.to and obtain the written approval of Town'for the self-insured retentions and deductibles before beginning any of the services or work called for by any term of this Agreement. At the option of the Town,either.the insurer shall reduce or eliminate such deductibles or sell-insured retentions as respects the Town,its officers, employees,and volunteers;or the K&A shall provide a financial guarantee satisfactory to the Town guaranteeing payment of losses and related investigations,claim administration and defense expenses. 4.4.4 Wasting Policies. No policy required by this Section 4 shall include a"wasting" policy limit(i.e.limit that is eroded by the cost of defense). 4.4.5 Waiver of Subrogation. K&A hereby agrees to waive subrogation which any insurer or contractor may require from vendor by virtue of the payment of any loss. K&A agrees to obtain any endorsements that may be necessary to affect this waiver of subrogation. Consulting Services Agreement between [05/16/2018] Town of Los Altos Hills and Koff&Associates,Inc. Page 4 of 11 The Workers'Compensation policy shall be endorsed with a waiver of subrogation in favor of the entity for all work performed by the K&A,its employees,agents,and subcontractors. 4.4.6 Subcontractors. K&A shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor All coverages for subcontractors shall be subject to all of the requirements stated herein. 4.5 Arbitration of Professional Liability or Other Claims. 4.5.1 Failure to supply insurance.In addition to any other remedies Town may have if K&A fails to provide or maintain any insurance policies or policy endorsements to the•extent and within the time herein required,Town may,at its sole option exercise any of the following remedies,which are alternatives to other remedies Town may have and are not the exclusive remedy for K&A's breach: • Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under the Agreement; • Order K&A to stop work under this Agreement or withhold any payment that becomes due to K&A hereunder,or both stop work and withhold any payment, until K&A demonstrates compliance with the requirements hereof;and/or • Terminate this Agreement. 4.5.2 Disputes.If a dispute between Town and K&A arises over fees charge for services,the controversy will be submitted to binding arbitration in accordance with the rules of the California State Bar Fee Arbitration Program,set forth in California Business and Professions Code,section 6200 through 6206.The arbitrator or arbitration panel shall have the authority to award to the prevailing party K&A's fees,cost and interest incurred.Any arbitration award may be served by mail upon either side and personal service shall not be requested. If a dispute arises between Town and K&A over any other aspect of K&A-client relationship, including,with limitation,a claim for breach of professional duty,that dispute will also be resolved by arbitration.It is understood that any dispute as to any alleged breach of professional duty(that is,as to whether any legal services rendered under this agreement were allegedly unnecessary,unauthorized,omitted entirely,or were improperly, negligently or incompetently rendered)will be determined by submission to arbitration as provided by California law,and not by a lawsuit or resort to court process except as California law provides for judicial review of arbitration proceedings.Both parties to this agreement,by entering into it,are giving up their constitutional right to have any such dispute decided in a court of law before a jury,and instead are accepting the use of Consulting Services Agreement between [05/16/20181 Town of Los Altos Hills and Koff&Associates,Inc. Page 5 of 11 arbitration. Each party is to bear its own K&A's fees and costs and the Town's remedy may include options set in Section 8.6. Section 5. INDEMNIFICATION AND K&A'S RESPONSIBILITIES. K&A shall indemnify,defend with counsel acceptable to Town,and hold harmless Town and its officers, officials,employees,agents and volunteers from and against any and all liability,loss,damage,claims, expenses,and costs(including without limitation, K&A's fees and costs and fees of litigation)(collectively, "Liability")of every nature arising out of or in connection with K&A's performance of the Services or its failure to comply with any of its obligations contained in this Agreement,except such Liability caused by the sole negligence or willful misconduct of Town. The K&A's obligation to defend and indemnify shall not be excused because of the K&A's inability to evaluate Liability or because the K&A evaluates Liability and determines that the KM is not liable to the claimant. The K&A must respond within 30 days,to the tender of any claim for defense and indemnity by the Town,unless this time has been extended by the Town. If the K&A fails to accept or reject a tender of defense and indemnity within 30 days,in addition to any other remedy authorized by law,so much of the money due the K&A under and by virtue of this Agreement as shall reasonably be considered necessary by the Town,may be retained by the Town until disposition has been made of the claim or suit for damages,or until the K&A accepts or rejects the tender of defense,whichever occurs first. With respect to third party claims against the K&A,the KM waives any and all rights of any type to express or implied indemnity against the Indemnitees. in the event that KM or any employee,agent,or subcontractor of K&A providing services under this Agreement is determined by a court of competent jurisdiction or the California Public Employees Retirement System(PERS)to be eligible for enrollment in PERS as an employee of Town,KM shall indemnify,defend,and hold harmless Town for the payment of any employee andlor employer contributions for PERS benefits on behalf of K&A or its employees,agents,or subcontractors,as well as for the payment of any penalties and interest on such contributions,which would otherwise be the responsibility of Town. Section 6. STATUS OF CONSULTANT. 6.1 Independent Contractor. At all times during the term of this Agreement,KM shall be an independent contractor and shall not be an employee of Town. Town shall have the right to control KM only insofar as the results of K&A's services rendered pursuant to this Agreement and assignment of personnel pursuant to Subparagraph 1.3;however, otherwise Town shall not have the right to control the means by which K&A accomplishes services rendered pursuant to this Agreement. Notwithstanding any other Town,state,or federal policy, rule,regulation,law,or ordinance to the contrary,K&A and any of its employees,agents,and subcontractors providing services under this Agreement shall not qualify for or become entitled to,and hereby agree to waive any and all claims to,any compensation,benefit,or any incident of employment by Town,including but not limited to eligibility to enroll in the California Public Employees Retirement System(PERS)as an Consulting Services Agreement between [05/1612018j Town of Los Altos Hills and Koff&Associates, Inc. Page 6 of 11 employee of Town and entitlement to any contribution to be paid by Town for employer contributions and/or employee contributions for PERS benefits. 6.2 K&A Not an Anent. Except as Town may specify in writing,K&A shall have no authority, express or implied,to act on behalf of Town in any capacity whatsoever as an agent. K&A shall have no authority,express or implied, pursuant to this Agreement to bind Town to any obligation whatsoever 6.3 Confidentiality. "Confidential Information' means any Town software source code; proprietary information; employment records; financial, tax, business and/or product records; and marketing, financial statements or records or other business information disclosed by Town either directly or indirectly, in writing, orally or by drawings or inspection of parts or equipment. "Confidential Information" shall not be deemed -to include information which(a) is known to K&A at the time of disclosure to K&A by Town, as evidenced by written records of K&A; (b) has become publicly known and made generally available through no wrongful act of K&A;or(c) has been rightfully received by K&A from a third party who is authorized to make such disclosure. K&A shall not, during or subsequent to the term of this Agreement, use any of the Confidential Information for any purpose whatsoever other than theperformance of the Services on behalf of Town,nor disclose any Confidential Information to any third party It is understood that all Confidential Information shall remain the sole property of Town. K&A further agrees to take all reasonable precautions to prevent any unauthorized disclosure of the Confidential Information by its employees or agents. ' Upon the termination of this Agreement or upon Town's earlier request, K&A will deliver to Town all of Town's Confidential Information in tangible form that K&A may have in K&A's possession or control, except that K&A may retain one copy of all such materials solely for archival purposes., 6.4 Ownership of Work Product. K&A agrees that all of its customized reports, recommendations, plans, handbooks, copyrightable material and other work product created or assembled by it in the course of performing its Services hereunder are works for hire for the benefit of Town and as such are the sole property of Town.To the extent that such materials and work product do not constitute work for hire, in consideration of the payments and other covenants of Town as set forth or called for herein, KM hereby sells,transfers,conveys and assigns any and all of its rights therein to Town. Consulting Services Agreement between [05/16/20181 Town of Los Altos Hills and Koff&Associates, Inc. Page 7 of 11 Section 7. LEGAL REQUIREMENTS. 7.1 Governing Law. The laws of the State of California shall govern this Agreement. 7.2 Compliance with Applicable Laws. K&A and any subcontractors shall comply with all laws applicable to the performance of the work hereunder. 7.3 Other Governmental Regulations. To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, K&A and any subcontractors shall comply with all applicable rules and regulations to which Town is bound by the terms of such fiscal assistance program. 7.4 Licenses and Permits. K&A represents and warrants to Town that K&A and its employees,agents,and any subcontractors have all licenses, permits,qualifications,and approvals of whatsoever nature that are legally required to practice their respective professions. K&A represents and warrants to Town that K&A and its employees,agents, any subcontractors shall,at their sole cost and expense,keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to practice their respective professions. In addition to the foregoing,KM and any subcontractors shall obtain and maintain during the term of this Agreement valid Business Licenses from Town. 7.5 Nondiscrimination and Equal Opportunity. K&A shall not discriminate,on the basis of a person's race, religion,color, national origin,age,physical or mental handicap or disability, medical condition, marital-status,sex,or sexual orientation,against any employee, applicant for employment,subcontractor,bidder for a subcontract,or participant in, recipient of,or applicant for any services or programs provided by K&A under this Agreement. K&A shall comply with all applicable federal,state,and local laws,policies, rules,and requirements related to equal opportunity and nondiscrimination in employment, contracting,and the provision of any services that are the subject of this Agreement, including but not limited to the satisfaction of any positive obligations required of K&A thereby K&A shall include the provisions of this Subsection in any subcontract approved by the Contract Administrator or this Agreement. Section 8. TERMINATION AND MODIFICATION. 8.1 Termination. Town may cancel this Agreement at any time and without cause upon written notification to K&A. K&A may cancel this Agreement upon 60 days'written notice to Town and shall include in such notice the reasons for cancellation. In the event of termination,K&A shall be entitled to compensation for services performed to the effective date of termination;Town, however, may condition payment of such Consulting Services Agreement between [05116/2018] Town of Los Altos Hills and Koff&Associates,Inc. Page 8 of 11 compensation upon KM delivering to Town any or all documents, photographs,computer software,video and audio tapes,and other materials provided to K&A or prepared by or for K&A or the Town in connection with this Agreement. 8.2 Extension. Town may,in its sole and exclusive discretion,extend the end date of this Agreement beyond that provided for in Subsection 1.1. Any such extension shall require a written amendment to this Agreement, as provided for herein. K&A understands and agrees that,if Town grants such an extension,Town shall have no obligation to provide K&A with compensation beyond the maximum amount provided for in this Agreement. Similarly,unless authorized by the Contract Administrator,Town shall have no obligation to reimburse K&A for any otherwise reimbursable expenses incurred during the extension period. 8.3 Amendments. The parties may amend this Agreement only by a writing signed by all the parties. 8.4 Assignment and Subcontracting. Town and K&A recognize and agree that this Agreement contemplates personal performance by K&A and is based upon a determination of K&A's unique personal competence,experience,and specialized personal knowledge. Moreover,a substantial inducement to Town for entering into this Agreement was and is the professional reputation and competence of K&A. K&A may not assign this Agreement or any interest therein without the prior written approval of the Contract Administrator. K&A shall not subcontract any portion of the performance contemplated and provided for herein,other than to the subcontractors noted in the proposal,without prior written approval of the Contract Administrator 8.5 Survival. All obligations arising prior to the termination of this Agreement and all provisions of this Agreement allocating liability between Town and K&A shall survive the termination of this Agreement. 8.6 Options upon Breach by K&A. If K&A materially breaches any of the terms of this Agreement,Town's remedies shall include, but not be limited to,the following: 8.6.1 Immediately terminate the Agreement; 8.6.2 Retain the plans,specifications,drawings, reports,design documents,and any other work product prepared by K&A pursuant to this Agreement; 8.6.3 Retain a different K&A to complete the work described in Exhibit A not finished by K&A,or 8.6.4 Charge K&A the difference between the cost to complete the work described in Exhibit A that is unfinished at the time of breach and the amount that Town would have paid KM pursuant to Section 2 if K&A had completed the work. Consulting Services Agreement between [05/16/2018] Town of Los Altos Hills and Koff&Associates,Inc. Page 9 of 11 I Section 9. FILE RETENTION.After the services concludes,K&A will,upon Town's request,deliver the file for the matter to Town,along with any funds or property of Town's in K&A's passion. If Town requests the file for the matter,K&A will retain a copy of the file at the Town's expense. If Town does not request the file for this matter,K&A will retain it for a period of three(3)years after this matter is closed. If Town does not request delivery of the file for this matter before the end of the three(3)year period,K&A will have no further obligation to retain the file and may,at K&A's discretion,destroy it without further notice to Town.At any point during the three(3)year period,Town may request delivery of the file. Section 10 MISCELLANEOUS PROVISIONS. 10.1 Severability. If a court of competent jurisdiction finds or rules that any provision of this Agreement is invalid,void,or unenforceable,the provisions of this Agreement not so adjudged shall remain in full force and effect. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement. 10.2 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this Agreement does not constitute a waiverof any other breach of that term or any other term of this Agreement. 10.3 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the parties. 10.4 Use of Recycled Products. K&A shall prepare and submit'all reports,written studies and other printed material on recycled paper to the extent it is available at equal or less cost than virgin paper 10.5 Conflict of Interest. K&A may serve other clients,but none whose activities within the corporate limits of Town or whose business,regardless of location,would place KM in a "conflict of interest,"as that term is defined in the Political Reform Act,codified at California Government Code Section 81000 et seq. K&A shall not employ any Town official in the work performed pursuant to this Agreement. No officer or employee of Town shall have any financial interest in this Agreement that would violate California Government Code Sections 1090 et seq. K&A hereby warrants that it is not now,nor has it been in the previous 12 months,an employee,agent,appointee,or official of the Town. If KM was an employee,agent, appointee,or official of the Town in the previous twelve months,KM warrants that it did not participate in any manner in the forming of this Agreement. K&A understands that,if this Agreement is made in violation of Government Code§1090 et seq.,the entire Agreement is void and KM will not be entitled to any compensation for services performed pursuant to this Agreement,including reimbursement of expenses,and KM will be required to reimburse the Town for any sums paid to the K&A. K&A understands that,in addition to the foregoing, it may be subject to criminal prosecution for a violation of Consulting Services Agreement between [05/16(2018] Town of Los Altos Hills and Koff&Associates,Inc. Page 10 of 11 Government Code§1090 and,if applicable,will be disqualified from holding public office 'in the State of California. 10.6 Solicitation. K&A agrees not to solicit business at any meeting,focus group,or interview related to this Agreement,either orally or through any written materials. 10.7 Contract Administration. This Agreement shall be administered by Carl Cahill("Contract Administrator"). All correspondence shall be directed to or through the Contract Administrator or his or her designee. 10.8 Notices. Any written notice to K&A shall be sent to: Georg Krammer,CEO Koff&Associates,Inc. 2835 Seventh Street Berkeley,CA 94710 Any written notice to Town shall be sent to: Carl Cahill,City Manager Town of Los Altos Hills 26379 Fremont Road Los,Altos Hills, CA 94022 10.9 Counterparts. This Agreement may be executed in multiple counterparts,each of which shall be an original and all of which together shall constitute one agreement. The Parties have executed this Agreement as of the Effective Date. TOWN OF LOS ALTOS HILLS KANEKO AND KRAMMER CORP. / CQJ1QA2Q- Carl Cahill,Town Manager r=org mmer,Vice President KANEKO AND KRAMMER CO Ca erine Kaneko,Treasurer Consulting Services Agreement between [05/16/2018] Town of Los Altos Hills and Koff&Associates,Inc. Page 11 of 11 EXHIBIT A PROJECT PROPOSAL Consulting Services Agreement between [05/16120181 Town of Los Altos Hills and Koff&Associates, Inc. Page 1 of 1 EXHIBIT A Kt4 May 10, 2018 Proposal for an Update to 2015 Total J Compensation Study Town of Los Altos Hills Submitted by• Koff & Associates GEORG S.KRAMMER Chief Executive Officer 2835 Seventh Street Berkeley,CA 94710 www KoffAssociates.com gkrammer@koffassociates.com Tel 510 658.5633 Fax: 510.652.5633 ®Koff & Associates Human Resources Consulting Since 1981 May 10, 2018 Submitted via Email Ms. Frances Reed Management Analyst, Finance & Human Resources Town of Los Altos Hills 26379 Fremont Road Los Altos Hills, CA 94022 Dear Ms. Reed Thank you for the opportunity to respond to your request for an update of the 2015 Total Compensation Study,for the Town of Los Altos Hills;this will include some changes to the list of benchmarks, as well as to the list of comparators. This proposal shall remain valid for ninety(90) days from the date on this letter Please call if you have any questions or wish additional information Sincerely, fotS-OakkkAkki Georg S Krammer Chief Executive Officer 2835 Seventh Street, Berkeley, California 94710 1510.658.5633 I www.KoffAssociates.com Total Compensation Study UPDATE: Cost Proposal Town of Los Altos Hills TABLE OF CONTENTS Key Personnel Page 1 Scope of Work & Deliverables Page 3 Timeline Page 6 Cost Proposal Page 6 Insurance Acknowledgment Page 7 Signature Page 2835 Seventh Street, Berkeley, California 94710 1510.658.5633 I www.KoffAssociates.com Total Compensation Study UPDATE. Cost Proposal Town of Los Altos Hills KEY PERSONNEL Following are short biographies of the specific staff who will be assigned to this study- Georg Krammer,M.B.A.,S.P.H R. Chief Executive Officer Georg brings twenty (20) years of management-level human resources experience to Koff& Associates with an emphasis in organizational development, classification and compensation design, market salary studies,executive and staff recruitment;performance management;and employee relations,in the public sector, large corporations and small, minority-owned businesses. He had five (5) years in the private sector where he served as an HR Manager,and Administrative Officer,and then HR Director After obtaining a Master of Arts in English and Russian and teaching credentials at the University of Vienna,Austria,Georg came to the United States to further his education and experience and attained his Master of Business Administration from the University of San Francisco. After starting his HR career in Wells Fargo's college recruiting department, he moved on to HR management positions in the banking and high-tech consulting industries With his wide-ranging and deep experience as a well-rounded senior HR generalist, his education in business and teaching, his depth and breadth of experience with public sector HR needs, programs, and functions, Georg's contribution to K&A's variety of projects greatly complements the Koff&Associates consulting team He has spearheaded several hundred classification, compensation,organizational,strategic planning,etc.,studies for hundreds of cities,towns,counties,and special districts throughout the State of California and has contributed to more than quadrupling the size of Koff&Associates as a result of the success of his projects and the subsequent expansion of the business through referrals from satisfied clients. Georg joined K&A in 2003 and has been the firm's Chief Executive Officer since 2005 Georg will be key personnel and serve as the Project Director for this study;he will coordinate all of K&A's efforts, will attend all meetings with the Town, and will be responsible for all work products and deliverables. Alyssa Thompson,Ph. D. Senior Project Manager Alyssa brings with her over ten (10) years of human resources experience in classification and compensation analysis and development, performance management, affirmative action program development, and recruitment. Alyssa also has experience in designing and conducting quantitative and qualitative research studies. Since joining the firm in 2007, Alyssa has led and worked on well over two hundred (200) classification, compensation, organizational assessment, and recruitment projects for cities, counties, and special districts, a few of which are • Cities: American Canyon, Anaheim, Bellflower, Claremont, Concord, Fremont, Madera, Monterey, Orange,Sacramento,San Diego,and Santa Barbara. • Counties. Placer,San Joaquin,San Mateo,Tehama,and Tuolumne. 2835 Seventh Street, Berkeley,California 94710 1510.658.5633 I www.KoffAssociates.com 1 I � K& Total Compensation Study UPDATE: Cost Proposal Town of Los Altos Hills • Special Districts: Alameda County Transportation Commission, Berkeley Unified School District, Central Contra Costa Sanitary District, Dublin San Ramon Services District, East Bay Municipal Utility District, Foothill-DeAnza Community College District, Metropolitan Transportation Commission, Midpeninsula Regional Open Space District, Mount San Antonio College, Northern California Power Agency, Oakland Housing Authority, Orange County Sanitation District, SACOG (Sacramento Area Council of Governments), Santa Clara County Housing Authority, Santa Clara Valley Water District, Superior Court of California-County of Orange, Vallejo Sanitation and Flood Control District, and Zone 7 Water District. She earned a Bachelor's degree in Psychology with a minor in Sociology-Organizational Studies from the University of California, Davis, and a Ph.D in Organizational Psychology from Alliant International University Alyssa will provide consultant support throughout the effort, including compensation analysis, internal job analysis,development of recommendations,and implementation strategies. 2835 Seventh Street, Berkeley,California 94710 1510.658.5633 www.KoffAssociates.com 2 Total Compensation Study UPDATE: Cost Proposal Town of Los Altos Hills SCOPE OF WORK & DELIVERABLES TOTAL COMPENSATION STUDY UPDATE Deliverable A. Initial Documentation Review,Meetings with Study Project Team and Management Staff • Identify client project team,contract administrator,and reporting relationships. • Orientation and briefing sessions with the study project team and staff to explain methodology • Gather all pertinent documentation, including class descriptions,organizational charts, personnel policies, memoranda of understanding, etc. • Review and confirm comparator agencies, benchmark classifications, and identify benefits to be surveyed. Deliverable B. List of Comparator Agencies,Benchmark Classifications and Benefits to be Collected • Confirm appropriate comparator agencies based on a number of evaluation criteria (such as type of organization, size of organization, number of employees, size of budgets, population served, cost of living,etc.),the comparator list may include: 1. Atherton 2. Cupertino 3. Half Moon Bay 4 Hillsborough 5 Los Altos 6. Mill Valley 7 Piedmont 8. Saratoga 9 Tiburon 10. Woodside • Confirm classifications to be studied based on an internal relationship analysis of all classifications. 1. Administrative Clerk II 2. Administrative Services Director 3. Administrative Technician II 4 Associate Engineer 5. Building Technician 6. City Clerk 7 Community Services Supervisor 8. Finance Manager 9 Maintenance Superintendent 10. Maintenance Worker II 11. Management Analyst 12. Planning Director 13 Planning Technician 14 Public Works Director 15. Senior Building Inspector 16. Senior Planner 17 Utilities Manager • Identify benefits to be collected. 2835 Seventh Street, Berkeley,California 94710 1510.658.5633 I www.KoffAssociates.com 3 Kt Total Compensation Study UPDATE: Cost Proposal Town of Los Altos Hills Deliverable C. Data Collection • K&A to conduct all of the data collection and analysis to ensure validity of data and quality control, compare job description to job description,ensure matches of at least 70%. • Review the Town's existing job descriptions to ensure understanding of each position to be surveyed. • Collect job descriptions,organization charts,and other information from comparator agencies via website, in person,or by telephone • Make preliminary "matches" and then schedule appointments by telephone, and sometimes in person,with knowledgeable individuals to answer specific questions. • Ensure a very high validity rate and produce data that is substantiated before management, employee representation as well as City Council. Deliverable D Analysis and Preliminary Data Review • Enter data into spreadsheet format designed for ease of interpretation and use. • Present information in a format that will identify the comparator positions used for each class comparison. • Calculate information based upon average and median figures, allowing the Town to make informed compensation decisions. Deliverable E. Draft Compensation Findings and Meeting with Project Team • Distribute draft findings to the Town. • After the Town's preliminary review, meet with the project team and various stakeholders to clarify data, receive requests for reanalysis of certain comparators; and answer questions and address concerns. • Provide an opportunity for the project team and other stakeholders to review and question any of our recommended benchmark comparator matches. • If questions arise, conduct follow-up analysis to reconfirm original analysis and/or make corrections. Deliverable F Internal Job Analysis • Determine internal equity for both market driven and non-benchmarked positions. • Develop internal position hierarchy based on the "whole position" classification methodology including education, experience, problem solving/ingenuity, attention/stress, independence of action/responsibility,contacts with others,supervision exercised,consequence of action/decisions. • Make recommendations regarding vertical salary differentials across the organization. Deliverable G Compensation Structure Development • Review and make recommendations regarding internal alignment and salary structure within which classifications are allocated, based upon the Town's preferred compensation model. • Discuss draft recommendations with management team prior to developing Interim Report. Deliverable H. Preparation of Draft Final and Final Report and Deliverables • Complete Draft Report and submit to the Town for review, comment, and recommendations, including detailed compensation findings and recommendations, proposed salary structure, and implementation issues, methodology for continued implementation and maintenance of plan. 2835 Seventh Street, Berkeley,California 94710 I 510.658.5633 I www.KoffAssociates.com 4 , __ KEY Total Compensation Study UPDATE: Cost Proposal Town of Los Altos Hills • After the Town's questions/concerns are addressed and discussed, create Final Compensation Report. 1 Deliverable I. Final Presentation to Project Team and City Council • Our proposal includes one initial overview,one interim study session(to discuss the initial findings of the market salary study), this includes one presentation to one Council committee and one presentation to the City Council,as needed 2835 Seventh Street, Berkeley, California 94710 I 510.658.5633 I www KoffAssociates.com 5 Total Compensation Study UPDATE. Cost Proposal Town of Los Altos Hills TIMELINE Note:the timeline below assumes completion of the project in July if we can start the project immediately upon the execution of a Contract or Purchase Order and/or issuance of a Notice to Proceed. Deliverables Total Compensation Study Completion by Update Initial Documentation Review, Meetings with Study Project A. Team & Management Staff Week 1 List of Comparator Agencies (up to 11 agencies), Benchmark Week 1 B. Classifications (up to 17),and Benefits to be Collected C. Data from Comparators _ Week 4 D Analysis and Preliminary Review of Data Week 5 Draft Compensation Findings/Additional Analysis/Study Project E. Week 7 Team Meetings (this assumes a conference call) Analysis of Internal Relationships and Alignment Week 8 G Compensation Recommendations _ Week 9 H Final Report and Recommendations Week 10 Final Presentation As Scheduled COST PROPOSAL Deliverables Total Compensation Study Hours Update A Initial Documentation Review, Meetings with Study Project Team 2 and Management Staff B List of Comparator Agencies(up to 11 agencies), Benchmark 1 Classifications (up to 17), and Benefits to be Collected C. Data from Comparators 34 D Analysis and Preliminary Review of Data 12 E Draft Compensation Findings/Additional Analysis/Study Project 5 Team Meetings (this assumes a conference call) F Analysis of Internal Relationships and Alignment 5 G Compensation Recommendations 4 H Final Report and Recommendations 8 Final Presentation (up to 2 presentations to one Council committee and one to the full City 5 Council) Total Professional Hours 76 Combined professional and clerical composite rate: $130/Hour $9,880 Expenses are included in our combined composite rate N/A 2835 Seventh Street, Berkeley,California 94710 I 510.658.5633 I www.KoffAssociates.com 6 Ka Total Compensation Study UPDATE: Cost Proposal Town of Los Altos Hills Expenses include but are not limited to duplicating and binding documents,phone,supplies,postage, travel,per diem,etc. TOTAL NOT-TO-EXCEED COST FOR PROJECT $9,880 *Additional consulting will be honored at our composite rate ($130/Hour) INSURANCE ACKNOWLEDGMENT We will submit and support the levels of coverage and endorse the Town with our General Liability coverage upon execution of a contract for the project. Workers'Compensation Statutory Limits Commercial General Liability. $2,000,000 per occurrence Professional Liability(Errors&Omissions) $1,000,000 per occurrence Automobile Insurance $1,000,000 per occurrence Our insurance broker is Ms. Eileen Hollander,Sr Account Manager/Commercial Lines, lntegro Insurance Brokers,2300 Contra Costa Blvd.,Suite 375, Pleasant Hill,CA 94523 2835 Seventh Street, Berkeley,California 94710 I 510 658.5633 I www.KoffAssociates.com 7 jj Total Compensation Study UPDATE: Cost Proposal E Town of Los Altos Hills Signature Page Koff&Associates intends to adhere to all of the provisions described in above. This proposal is valid for ninety(90)days. Respectfully submitted, By KOFF&ASSOCIATES State of California 'S. Georg S. Krammer May 10, 2018 Chief Executive Officer ►.Koff & Associates & Human Resources Consulting Since 1984 2835 Seventh Street, Berkeley,California 94710 1510.658.5633 I www.KoffAssociates.com