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HomeMy WebLinkAbout26-033 - Contract - Public Sector Personnel Consultants, Inc. - Market Class & Compensation StudyCity of Tukwila Contract Number:26-033 6200 Southcenter Boulevard, Tukwila WA 98188 Council Approval 1/26/26 PROFESSIONAL SERVICES AGREEMENT (Includes consultants, architects, engineers, accountants, and other professional services) THIS AGREEMENT is entered into between the City of Tukwila, Washington, hereinafter referred to as "the City", and Public Sector Personnel Consultants Inc., hereinafter referred to as "the Consultant", in consideration of the mutual benefits, terms, and conditions hereinafter specified. 1. Project Designation. The Consultant is retained by the City to perform Classification and Compensation Study for non -represented and Teamsters 763 services. 2. Scope of Services. The Consultant agrees to perform the services, identified Consultant's proposal attached hereto and incorporated by this reference, including the provision of all labor, materials, equipment and supplies. 3. Duration of Agreement; Time for Performance. This Agreement shall be in full force and effect for a period commencing upon execution and ending June 30, 2026, unless sooner terminated under the provisions hereinafter specified. Work under this Agreement shall commence upon written notice by the City to the Consultant to proceed. The Consultant shall perform all services and provide all work product required pursuant to this Agreement no later than June 30, 2026, unless an extension of such time is granted in writing by the City. 4. Payment. The Consultant shall be paid by the City for completed work and for services rendered under this Agreement as follows: A. Payment for the work provided by the Consultant shall be made as provided on Exhibit "B" attached hereto, provided that the total amount of payment to the Consultant shall not exceed $122,500 without express written modification of the Agreement signed by the City. B. The Consultant may submit vouchers to the City once per month during the progress of the work for partial payment for that portion of the project completed to date. Such vouchers will be checked by the City and, upon approval thereof, payment shall be made to the Consultant in the amount approved. C. Final payment of any balance due the Consultant of the total contract price earned will be made promptly upon its ascertainment and verification by the City after the completion of the work under this Agreement and its acceptance by the City. D. Payment as provided in this section shall be full compensation for work performed, services rendered, and for all materials, supplies, equipment and incidentals necessary to complete the work. E. The Consultant's records and accounts pertaining to this Agreement are to be kept available for inspection by representatives of the City and the state of Washington for a period of three (3) years after final payments. Copies shall be made available upon request. 5. Ownership and Use of Documents. All documents, drawings, specifications and other materials produced by the Consultant in connection with the services rendered under this Agreement shall be the property of the City whether the project for which they are made is executed or not. The Consultant shall be permitted to retain copies, including reproducible copies, of drawings and specifications for information, reference and use in connection with the Consultant's endeavors. The Consultant shall not be responsible for any use of the said documents, drawings, specifications or other materials by the City on any project other than the project specified in this Agreement. 6. Compliance with Laws. The Consultant shall, in performing the services contemplated by this Agreement, faithfully observe and comply with all federal, state, and local laws, ordinances and regulations, applicable to the services rendered under this Agreement. 7. Indemnification. The Consultant shall defend, indemnify and hold the City, its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or resulting from the acts, errors or omissions of the Consultant in performance of this Agreement, except for injuries and damages caused by the sole negligence of the City. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Consultant and the City, its officers, officials, employees, and volunteers, the Consultant's liability hereunder shall be only to the extent of the Consultant's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the Consultant's waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Agreement. 8. Insurance. The Consultant shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees. Consultant's maintenance of insurance as required by the agreement shall not be construed to limit the liability of the Consultant to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. A. Minimum Amounts and Scope of Insurance. Consultant shall obtain insurance of the types and with the limits described below: 1. Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. Automobile Liability insurance shall cover all owned, non -owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. 2. Commercial General Liability insurance with limits no less than $2,000,000 each occurrence, $2,000,000 general aggregate. Commercial General Liability insurance shall be at least as broad as ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, stop -gap independent contractors and personal injury and advertising injury. The City shall be named as an additional insured under the Consultant's Commercial General Liability insurance policy with respect to the work performed for the City using an additional insured endorsement at least as broad as ISO endorsement form CG 20 26. CA revised May 2020 Page 2 1 3. Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. 4. Professional Liability with limits no less than $2,000,000 per claim and $2,000,000 policy aggregate limit. Professional Liability insurance shall be appropriate to the Consultant's profession. B. City Full Availability of Consultant Limits. If the Consultant maintains higher insurance limits than the minimums shown above, the City shall be insured for the full available limits of Commercial General and Excess or Umbrella liability maintained by the Consultant irrespective of whether such limits maintained by the Consultant are greater than those required by this Contract or whether any certificate of insurance furnished to the City evidences limits of liability lower than those maintained by the Consultant. C. Other Insurance Provision. The Consultant's Automobile Liability and Commercial General Liability insurance policies are to contain, or be endorsed to contain that they shall be primary insurance with respect to the City. Any Insurance, self-insurance, or insurance pool coverage maintained by the City shall be excess of the Consultant's insurance and shall not be contributed or combined with it. D. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII. E. Verification of Coverage. Consultant shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Consultant before commencement of the work. Upon request by the City, the Consultant shall furnish certified copies of all required insurance policies, including endorsements, required in this Agreement and evidence of all subcontractors' coverage. F. Notice of Cancellation. The Consultant shall provide the City with written notice of any policy cancellation, within two business days of their receipt of such notice. G. Failure to Maintain Insurance. Failure on the part of the Consultant to maintain the insurance as required shall constitute a material breach of contract, upon which the City may, after giving five business days' notice to the Consultant to correct the breach, immediately terminate the contract or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the City on demand, or at the sole discretion of the City, offset against funds due the Consultant from the City. 9. Independent Contractor. The Consultant and the City agree that the Consultant is an independent contractor with respect to the services provided pursuant to this Agreement. Nothing in this Agreement shall be considered to create the relationship of employer and employee between the parties hereto. Neither the Consultant nor any employee of the Consultant shall be entitled to any benefits accorded City employees by virtue of the services provided under this Agreement. The City shall not be responsible for withholding or otherwise deducting federal income tax or social security or for contributing to the state industrial insurance program, otherwise assuming the duties of an employer with respect to the Consultant, or any employee of the Consultant. 10. Covenant Against Contingent Fees. The Consultant warrants that he has not employed or retained any company or person, other than a bonafide employee working solely for the Consultant, to solicit or secure this contract, and that he has not paid or agreed to pay any company or person, other than a bonafide employee working solely for the Consultant, any fee, commission, percentage, brokerage fee, gifts, or any other consideration contingent upon or resulting from the award or making of this contract. For breach or violation of this warrant, the City shall have the right to annul this contract without liability, or in its discretion to deduct CA revised May 2020 Page 3 1 from the contract price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift, or contingent fee. 11. Discrimination Prohibited. Consultant, with regard to the work performed by it under this Agreement, will not discriminate on the grounds of race, religion, creed, color, national origin, age, veteran status, sex, sexual orientation, gender identity, marital status, political affiliation, the presence of any disability, or any other protected class status under state or federal law, in the selection and retention of employees or procurement of materials or supplies. 12. Assignment. The Consultant shall not sublet or assign any of the services covered by this Agreement without the express written consent of the City. 13. Non -Waiver. Waiver by the City of any provision of this Agreement or any time limitation provided for in this Agreement shall not constitute a waiver of any other provision. 14. Termination. A. The City reserves the right to terminate this Agreement at any time by giving ten (10) days' written notice to the Consultant. B. In the event of the death of a member, partner or officer of the Consultant, or any of its supervisory personnel assigned to the project, the surviving members of the Consultant hereby agree to complete the work under the terms of this Agreement, if requested to do so by the City. This section shall not be a bar to renegotiations of this Agreement between surviving members of the Consultant and the City, if the City so chooses. 15. Applicable Law; Venue; Attorney's Fees. This Agreement shall be subject to, and the Consultant shall at all times comply with, all applicable federal, state and local laws, regulations, and rules, including the provisions of the City of Tukwila Municipal Code and ordinances of the City of Tukwila. In the event any suit, arbitration, or other proceeding is instituted to enforce any term of this Agreement, the parties specifically understand and agree that venue shall be properly laid in King County, Washington. The prevailing party in any such action shall be entitled to its attorney's fees and costs of suit. Venue for any action arising from or related to this Agreement shall be exclusively in King County Superior Court. 16. Severability and Survival. If any term, condition or provision of this Agreement is declared void or unenforceable or limited in its application or effect, such event shall not affect any other provisions hereof and all other provisions shall remain fully enforceable. The provisions of this Agreement, which by their sense and context are reasonably intended to survive the completion, expiration or cancellation of this Agreement, shall survive termination of this Agreement. 17. Notices. Notices to the City of Tukwila shall be sent to the following address: City Clerk City of Tukwila 6200 Southcenter Boulevard Tukwila, WA 98188 Notices to Consultant shall be sent to the following address: Public Sector Personnel Consultants Inc. Matthew Weatherly, President 2824 N. Power Road #113-486 Mesa, AZ 85215 18. Entire Agreement; Modification. This Agreement, together with attachments or addenda, represents the entire and integrated Agreement between the City and the Consultant and supersedes all prior negotiations, representations, or agreements written or oral. No CA revised May 2020 Page 4 1 amendment or modification of this Agreement shall be of any force or effect unless it is in writing and signed by the parties. CA revised May 2020 Page 5 1 DATED this 27th CITY OF TUKWILA Signed by: E�DSl KAaS htu,k Thomas McLeod, Mayor day of January '2026 ATTEST/AUTHENTICATED: Signed by: Andy Youn-Barnett, City Clerk APPROVED AS TO FORM: L by:((l� 9-. JCI.nA E Office of the City Attorney CONSULTANT: Signed by: Printed Name: Matt Weatherly Title: President CA revised May 2020 Page 6 1 Exhibit A Scope of Work 1. Market Surveys and Compensation Plan for All Employees. Develop a comprehensive, market- based, total cost of compensation plan that aligns with Council -adopted policy for non - represented and represented positions based on an objective analysis and evaluation of individual job content. Ensure that the proposed compensation plan addresses total salaries and benefits, including the total compensation package of insurance and other benefits. Total compensation may also include paid leave, pay differentials, retirement plans, bonuses, recruitment and retention incentives, take-home vehicles, vehicle allowances, performance pay, and more. Recommendations must be competitive with the market and intended to attract and retain qualified employees. The plan must also take into account compression caused by the effect of contractual agreements with represented employees. The plan must consider applicable Collective Bargaining Agreements (CBAs) to ensure compliance, equity, parity, and eliminate compression between represented and non -represented employees. 2. Provide recommendations for Teamsters 763 classifications and salaries no later than 4 weeks prior to the contractually obligated date of June 30, 2026. 3. Job Audits. Perform detailed job audits (preferably in-person) of all positions and draft up-to- date, accurate class specifications to uniformly reflect distinguishing characteristics, essential job functions, minimum qualifications, working conditions, license requirements, regulatory requirements, desired qualifications. In addition, recommend, if appropriate, classification series and levels within the series (i.e., I/II/III, Senior/Lead). Confirm the organizational structure and essential functions of each position. The job audits must include the input of Human Resources, employees and supervisors, and use data collected from previous classification and compensation studies, recent reclassifications, and recommend compensation and class specification placement. 4. Updated Job Classifications. Review and revise existing job classifications and recommend an appropriate classification for each position; recommend and establish a City-wide job classification structure. Evaluate and determine FLSA status for each position based on current Federal and State regulations. Provide written documentation of these recommendations. 5. Updated Salary Schedules. Conduct a thorough market compensation survey for all positions and recommend appropriate salary ranges based on the market survey results, internal relationships, compression, and pay equity. Use market comparison parameters for positions as defined in City of Tukwila Compensation Guidelines. Provide a summary of suggestions to place all studied positions to the appropriate classification and pay rate, including positions that are currently vacant. If a new salary schedule is proposed, provide the new table with a summary and justification based upon data obtained during the survey. 6. Appeals Process. Create and manage, together with Human Resources, a transparent appeals process allowing written or verbal responses and meeting with non -represented and represented staff to summarize and explain decisions and the results. 7. Financial projections. Provide financial projection reports and data in a 6 -year horizon to determine implementation costs over time and evaluate the sustainability of recommendations. 8. Implementation Support. Provide specific job audit and evaluation tools and guidance for HR's future use in maintaining the pay equity, internal parity, and external competitiveness of the market-based classification and total -cost -of -compensation system. 9. Final Report. Prepare a comprehensive written report to include the following: a. Analysis of results of the data from the external market survey to include information showing the salary relationship to other like organizations and identifying impacts and possible issues regarding internal equity. b. Discussion of methods, techniques and data used to develop the market-based classification and compensation system. c. Recommendations and supporting data for making alternate wage comparison calculations, such as using weighted average salaries. d. Recommendations regarding other pay practices consistent with market findings. e. Recommendations for best practices to choose criteria to determine comparable markets in the public sector (population, assessed valuation, with police agency). f. Recommendations for appropriate market compensation implementation measures that the City will need to take to include guidance on how to address positions identified above or below market value. g. Recommendations on the percentage of market match to guide parameters of how to assess competitiveness and address positions identified above or below market value. h. Analysis and recommendations regarding performance-based pay (merit, bonus incentive or other) in the public sector and how these programs work to attract, reward, and retain employees. Anticipated activities under the contract are expected to include: • Bi -monthly updates to leadership groups to include written reports on the methodology and goals of the study and potential outcomes. • Presentation of findings, recommendations, and anticipated costs of implementation to the Mayor, City Administrator, Leadership Team, per the timeline outlined below. 0 Providing ongoing, ad-hoc support to HR in the implementation of the recommendations through Q4 2026. 0 Meeting or exceeding the expectations of the following project timeline. Tentative Project Timeline (Revised) Week 1: February 2, 2026 • Project kickoff with Human Resources; review scope, timeline, and communication cadence • Review previous reclassification decisions and prior study data • Establish weekly meetings and bimonthly update schedule • Review policies to ensure adherence to scope of project: city compensation policy, all bargaining agreements including Teamsters 763 CBA, organization charts Week 2: February 9, 2026 • Determine a list of roles for job audits, employees in the roles (if applicable), and supervisors • Determine comparator agencies, cities, etc. per city compensation policy • Determine tentative schedule for introduction of project to Senior Leadership Team, Directors Group, and City Council • Determine tentative schedule for introduction of project to supervisors and employees • Gather class specs and salary information • Begin gathering comparator agency data Week 3: February 16, 2026 • Analyze previous reclassification decisions and prior study data • Schedule job audits with HR, supervisors, and employees • Launch internal classification review Week 4: February 23, 2026 • Conduct in-person job audits with HR, supervisors, and employees • Incorporate prior reclass decisions and historical audit data • Begin internal equity and classification parity analysis • Tentative introduction of project to City Council during Committee of the Whole meeting Week 5: March 2, 2026 • Provide first bimonthly written update to employees and supervisors • Provide first monthly updates to Senior Leadership, Directors, and City Council • Begin initial FLSA review for all non -represented classifications Week 6: March 9, 2026 • Final round of job audits (if needed) • Begin internal review of audit findings • Evaluate potential class series (1/11/III, Lead/Senior roles) Week 7: March 16, 2026 • Begin drafting revised job specifications • Start developing salary range methodology from market findings • Continue gathering comparator agency data Week 8: March 23, 2026 • Deliver second bimonthly update to employees and supervisors • Finalize appeal tools and employee guidance materials • Begin documenting methodology for inclusion in final report • Provide monthly update to Senior Leadership and Directors • Tentative update to City Council during regular meeting Week 9: March 30, 2026 • Review compression data and CBA implications • Finalize list of comparator agencies per city compensation policy Week 10: April 6, 2026 • Complete all market survey data collection • Start drafting updated job class specifications based on audit results Week 11: April 13, 2026 • Provide bimonthly update • Finalize classification series and proposed job groupings • Final in-person audit follow-ups (if necessary) Week 12: April 20, 2026 • Present preliminary salary range recommendations to Human Resources • Begin six-year cost modeling and implementation scenario planning • Start CBA salary structure crosswalk review Week 13: April 27, 2026 • Finalize FLSA determinations and documentation • Submit pay strategy recommendations • Schedule initial appeal information sessions for employees • Provide monthly update to Senior Leadership, Directors, and City Council Week 14: May 4, 2026 • Provide bimonthly update to employees and supervisors • Submit revised market survey and salary findings • Review internal pay compression data for final adjustments Week 15: May 11, 2026 • Finalize revised class specifications and series language • Align positions with new structure • Develop initial salary allocation proposal Week 16: May 18, 2026 • Finalize salary range alignment and classification placements • Review implementation models with executive leadership • Begin writing final report Week 17: May 25, 2026 • Delivery of employee and supervisor update • Submit finalized job specifications and market alignment data • Begin drafting formal appeals process Week 18: June 1, 2026 • Provide six-year implementation cost projections • Launch formal appeals window • Finalize formatting of final report • Provide monthly update to Senior Leadership, Directors, and City Council Week 19: June 8, 2026 • Close employee appeal intake • Finalize CBA compliance checks and parity reviews • Finalize FLSA status summaries Week 20: June 15, 2026 • Submit Teamsters 763 recommendations (due June 30, 2026) • Deliver bimonthly update to employees and supervisors • Finalize internal compression and equity report Week 21: June 22, 2026 • Complete all staff appeal meetings • Summarize appeal outcomes and distribute decisions • Complete implementation plan with final cost model Week 22: June 29, 2026 • Present final report and recommendations to Senior Leadership, Directors, and City Council • Submit final written report and documentation • Ensure all appeals are closed and documented • Project closeout and feedback Exhibit B The Consultant agrees to complete the project in accordance with an agreed-upon timeline for the Classification, Wage, and Compensation Study, for a total contract amount not to exceed $122,500. The City agrees to compensate the Consultant for work performed on the Project, as demonstrated by submission of invoices, according to the following payment schedule: $5,000 upon execution of the contract; up to sixty percent (60%) of the remaining contract amount upon submission of the draft report; and the remaining balance upon submission and acceptance of the final report.