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HomeMy WebLinkAboutSegal Proposal_RedactedCity of San Luis Obispo, CA Proposal for a Benchmark Compensation Study RFP #: 2020-HR-001 April 6, 2020 / Ruth Ann Eledge, SPHR, SPRHM-SCP, Vice President 0 MM by The Segal Gmup, Inc. Segal 7r Segal April 6, 2020 Daniel Clancy Finance City of San Luis Obispo 990 Palm Street San Luis Obispo CA 93401 Re: RFP #: 2020-HR-01 Benchmark Compensation Study Dear Mr. Clancy: 180 Howard Sheaf, sage 11M San Franawo, CA 9410S6147 wwws ako can T 415 26i.62116 F 415 3761167 Thank you for the opportunity to submit this proposal for a compensation study for the City of San Luis Obispo ('the City'). Through our extensive experience providing human resources advice to public sector clients nationwide, we think Segal is best qualified to assist you with this project. We have conducted classification and compensation studies for the following California entities: • Superior Court, County of Los Angeles • City of Carlsbad • City of Goleta • City of Livermore • City of Palo Alto • City of San Diego • City of San Marcos • City of Santa Cruz • City of Santa Monica • Inyo County • Santa Barbara County • ABC Unified School District • Palomar College • AC Transit • Bay Area Rapid Transit • Golden Gate Bridge & Highway Trans District • Orange County Transportation Authority • San Mateo County Transit • Southern California Regional Rail Authority • Victor Valley Transit Authority • Castaic Lake Water Authority • Coachella Valley Water District • Water Replenishment District of Southern CA • West County Wastewater District • Northern California UFCW We appreciate your consideration for this assignment and welcome the opportunity to meet with you to answer any questions you have. As an officer of the firm, I am authorized to bind the proposer to the terms of the proposal. Please feel free to contact me by phone at 214.466.2460 or by email at reledae(dseaalco.com. Sincerely yours, Yfc�e7zsx Ruth Ann Eledge, SPHR, SPRHM-SCP Vice President Table of Contents Qualifications About Our Company.......... Company History and Staff Segal's Project Team......... 10 10 10 16 Work Program 22 Step 1: Project Initiation........................................................................................................22 Step 2: Compensation (Salary and Benefits) Market Assessment.......................................23 Step 3: Present Final Results to the City...............................................................................32 Project Timeline 32 Cost Proposal 33 Exceptions to Terms and Conditions 35 Segal i ISubmittal Forms Attached are the following completed forms, as required by the RFP: • Proposal submittal summary • Certificate of Insurance • Statement of Past Contract Disqualifications • Sample Reports Executive Summary We understand the City seeks the assistance of a consultant to perform a compensation (salary and benefits) study for approximately 20 job titles to support the City's Compensation Philosophy of providing competitive compensation to attract and retain well qualified employees. The City anticipates utilizing the data collected from this project to prepare the salary forecast for the Citys 2021 -2023 Financial Plan. Segal confirms that the data and information for this project can be provided and collaborated on by using the City of San Luis Obispo's SharePoint site. Specifically, we understand the scope of this study will include: • Salary and benefits market study for up to 20 benchmarkjob titles, distributed to 12 comparison agencies • Collection and analysis of salary market data to determine the City's competitive market positon for pay • Collection of peer employer contributions to health insurance, retirement formulas and employee contributions • Collection of peer employer paid time off benefits and anticipated cost of living adjustments • Development of a final report that identifies the market median and the distance from the median for City benchmark data • Delivery of the report in final form, following preliminary review by City staff, no later than September 18, 2020 Our proposed work plan for this assignment includes the following steps: Step 1: Project Initiation Step 2: Compensation (Salary and Benefits) Market Assessment Step 3: Present Final Results We have described each project step in more detail in the "Work Program" section of this proposal. 90932350M7909 9029093235VIM7909 902 A- Sega I 1 Proposal Submittal Form The undersigned declares that she or he has carefully examined Project No. 2020-HR-001 which is hereby made a part of this proposal; is thoroughly familiar with its contents; is authorized to represent the proposing firm; and agrees to perform the specified work for the following cost quoted in full: BID ITEM: 2020-HR-001 — Benchmark Compensation Study Total Base Price $24,495 Sales tax a $0.00 Other TOTAL $0.00 $24,495 Delivery of equipment to the City to be within 140 calendar days after contract execution and written authorization to proceed. ® Certificate of insurance attached; insurance company's A.M. Best rating: All of our insurers are rated A+ (Superior) or A or A- (Excellent) by the AM Best Company. Firm Name and Address Segal 180 Howard Street, Suite 1100 San Francisco, CA 94105-6147 www.segalco.com Contact: Ruth Ann Eledce. Vice President �/Vc�t�71sx Signature of Authorized Representative Phone: 214-466-2460 Date: April 1, 2020 90=50M79099D2NM3235v1M7W9902 A -Segal 2 Certificate of Insurance ,.---MIAN scexcaxal xLY a Smucx 'n`:: CERTIFICATE OF LIABILITY INSURANCE olsru smw mxnaxzPwb ex Nylb..�..1 TM nr.Olw n....ne Nq..n np.b..N.sN. azmrzO MITCERIFILLTF LS ISSUED AS L WTIEP OF NFOPYLTON OIlYG1NLGVFERS MOPGMS UVpl1XFCERIIFCGIE XOILFA TXX 9FlNFIiNA CUCPTE GOES NOT INELT OR NEGGl1VELY "END.ORTI ESFEXU ALTER E C4VfTI liAGE ATTENDED By E POLICIES NF101Y THIS INSURANCEOO CERTIFICATE CFINSURANCEEE NOT OONSTITUTE G CCP<Cf EBME ISSUING GUINORQEO 013IREfFMAl1VEOR VROp/CER AND THE CERRFICGIE NOIDER, NiOMAM: XMF wNScabMONIST Nan Mpw lNnL IHSVREUNx . ppaqIXNMImum 100111 MUST RUNS TURNEDpwMwrewbae. IFSUNIIXi4M) TX IE WNVEO. Wnpd b IK C.Y bnI®YM wnNlnn.whl.poNy. ®IHN.L.Vj I.NIInen N1001.wK A W.Mm h.n NbuNb�aowm.Wsn bbnc.mnul. THRIFT s ln u w.Bcn 9993235019]9099929093235v1/9]999992 A- Segal 3 Statement of Past Contract Disqualifications Cry of Son Luis Obispo Bid 202arpor 0l an oftontutn oevFo Si tsr. Azzrz STATEMENT OF PASTCONTRACT DISQUALIFICATIONS The proposer shall State whether it or any of its Officers or employees who have a proprietary interest in it, has ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state, or local government project because of the violation of law, a safety regulation, or for any other including but not limited to financial difficulties, project delays, or disputes regarding work or product quality, and if so to explain the circumstances. • poyoa have mnydisqualifim5onas deSnMedln Me aboveparagrnphta dedarei Yes No® 0 If yes, expinln Me cir ouMSfnn[P5. Executed on 04/01/2020 at San Francisco, G _ under penalty of perjury of the laws of the State of California, that the foregoing is true and correct. c-lifc�ei A Signature of Authorized Proposer Representative 2]. 3f5G9eeamF p.30 90932350A)79099U29093235y,/97909902 Segal 4 References Cdy of Bw Luis Cases Bid 2020-HR-001 O"fSa r,e Obupo Spends all "No. 9xvx REFERENCES Number of years engaged in providing the services Included within the scope of the specifications under the present business name: g0 Acorn be fully the last three contracts performed by your firm that demonstrate your ability to provide the services Included with the scope of the specifications Attach addltlorel pages If man [red . The City reserves the right to contact each of the references listed for additional Information regarding your frm's qual[f[affi[on6. Reference No. 1: City of $ian Mil CA •Buegat 250,000 RaM1ranu No. 2: pa -25- 3/I�OPSOFAAI p.10 Agency Name Con[dct Name Ms. Michele Rentler Director of Human Resources Telephone &Email I760I 744-3050 mbender@san-marCO6.n6[ Street Agency Name Ed raw Rarbam county, cR Chief People Officer- [rya eme onto Contact Name Previous AR Director Barbara (i� for farm Barbara Telephone &Email (310)458.8245 lori. @m entlessay.n¢f Street Address 1226 Anacarta Street City, Stale, Zip Code Santa Barbara, CA 93101 Description of services provided • Analyzed the counNsjobs and ceaeurma amp[grea mmm[awa meaval decantation structure and recommend posidata todasziRmtlpns including contract amount, when • Conducted a wmpereation study for management positipnsw aering Provided and project outcome approvimately2&Jsfaff in 15 brn3tl leadership didactical•Dates of Serviws; 2016 •Rudgat $50,000 9993235019]9099929093235v1/9]999902 Segal 5 Cry of San Luis caused, Bid 2020-HR-001 CiyofSmnLoOObsspo ge"Ricall an Ma. sun.. Reference No. 3 Agency Name City ployees sector • Recommended adjustments Wthe salary plan for the APool alive, Mid- anagemenA Classified, General, Police, antl Fire employee groups that are nastent with the market findings and me Mad pay pmlospphy • Remm named grade resonances fair all job titles and pay plans covered by the study • Drahed updated compensation solidus • Presented final results to the City•Budget 555.000 In 2008: •CondUtted a compensation and benefits study forapproximately 1,100 employees covered by 2351ob titles, Including public safetyemployees • oevacced a tour tool compensation survey document •Analyzed market data for 75 benchmark job titles using 10 public senor peer disapproves and three (3) published data sources t0 represent Me private sector market •Asseaaed geograpHcal differences in cup of labor • Presented final results to the OW 30�08'Sa FBM p. l! ofSioux Falls SD ContactdCI Name Mr. RiII O'Toole, Director of Human Resources Telephone &Email 605 36Tw4o, botwle@siouxfalls.or Street Address; $$q Wes[Nin[h Street City, Slate, Sp Code Sioux Falls SDS]11J Description of services provided In 201J-2018: including contract amaunp when Ipmvitletl •Contluc[ede wmpensetion and beneflta s[udyfOrapproxlmefely l,2oo and prOlPct Outcome assured by 269jobtides and repr¢s¢Metl by TM1P American Fetlerationof 90932J50l979099029093235y,/919099R2 Segal 6 Segal Client List States, Agencies, Retirement Systems Arington County(VA) City of Cedar Rapids (LA) State of Alabama Barry County(MQ City of Chandler (AZ) State of Alaska Bay County(MI) City of College Stabon(U() State of Arizona Boulder County(GO) City of Fort Lauderdale [FL) State of Colorado Campbell County (WY) City of Fort Worth (TX) Division of Human Resources City/Cauntyof0emcr(CO) City of Gaithersburg (MD) District of Columbia Coconino County(AZ) City of Garland(iX) State of Delaware Deschutes County(OR) City of Glendale (AZ) State of Georgia Fairfax County (VA) City of Goleta (CA) Depzranent of Audits& AcGts Forsyth County(GA) City of Goodyear (AZ) Merit System Harris County Appraisal Distort(TX) City of Grand Rapids (MI) State of Illness_ Isabella County (MQ City of Greenville (NC) Board of Education Jackson Gounty (TX) City of Greenville (SC) Teachers Retirement System Johnson Gounty (TX) City of Henderson (NV) Universities Retirement System Kenosha County FIND City of Hollywood [FL) State of Iowa Lake County(IL) City of Houston(TX) State of Maryland Laramie County(WY) City of Kansas Cry (MO) Department of Budget B Management Laramie County Library System (WY) City of Knoxvilk:(TN) Department of Mental Health Las Vegas— Clark County Library(NV) City of Lansing (MI) Commonwealth of Massachusetts_ Lexington County (SC) City of Las Vegas (NV) Bay Transportation Authority Lincoln County (SD) City of League City M Department of Transportation Los Alamos County(NM) City of Livermore (CA) School Building Auffmnty Macomb County (MQ City of Manassas (VA) State Lottery Mmnehaha Gounly (SD) City of Mancepa (AZ) Treasurer B Receiver Mohave County(AZ) City of Middletown (CT) Teachers Retirement System Oakland County(MI) City of New Hartford (MA) State of North Carolina Education Loflery Pierce County (WA) City of North Kansas City (MO) State of Ohio Public Employees Retirement Pinal County (AZ) City of Olathe (KS) System Prince Georges County (MD) City of Palo Alto (CA) State of Oregon Prince William County (VA) City of Phoeaix (AZ) Legslativc Assembly Santa Barbara County(CA) City of Pittsburgh (PA) Lottery Seminole County (FL) City of Poway (CA) State of Rhode Island Shelby County (TN) City of Presceft [AZ) State of Texas Employees Retirement Smith County (TX) City of Raleigh INC) System Spotsylvania County (VA) City of Rehoboth Beach (DE) State of Washington Stafford County (VA) City of Salem (VA) CourtSystems Washington County(WI) City of San Antonio [TX) Admisstrative Office ofthe U S_ Courts Waukesha County (wq City of San Diego (CA) State of California Superior Court, County Webb County (TX) City of San Marcos (CA) of Los Angeles Municipalities City of San Marcos( DO State of Colorado Judicial Branch City ofAJbuqumque[NM) City of Santa Cruz (CA) State of Maine Judiciary City of Asheville [NC) City of Santa Monies (CA) State of Maryland Judiciary City ofAuram(GO) City of Seattle(WA) Commonwealth of Massachusetts Trial Court City ofAustin (EX) City of dona(A State of Minnesota Judicary City of Avondale (AZ) City of Siff (AZ) State of New Hampshire Judicial Branch City of Dethrone (MD) City of Sioux Falls (SD) State of New Jersey Judiciary City of Boston (MA) City of Solon (OH) State of Ohio Supreme Court City of Bowie [MD) City of Surprise [AZ) State of Vermont Judiciary City of Bristol [CT) City of Wilmington [DE) Counties City of Bryan (iX) City of Wylie (TX) Albemarle County (VA) City of Cape Coml (FL) Tombstone Pansh (LA) Town of Acton (MA) Anderson County (SC) City of Carlsbad (CA) Town of Buckeye (AZ) Anne Arundel County(MD) City ofCarrolton M Segal 90932350/979099029093235Vt/91909902 Transportation Systems Alaska Railroad Corporation AC Transit (CA) Bay Area Rapid Transit (CA) Ben Franklin Transit (WA) Bishop Inter national Airport Authority(MI) City of Austin — Transportation Dept. (TX) Central Ohio Transit Authority (OH) G THAN (WA) Columbus Regional Airport Authorty (OH) Denton County Transportation Authonl (M Denver Regional Transit Dishier (CO) Des Moines Area Regional Transit (IA) Fort Wayne-AIIen County Airport Autlwnty (IN) Golden Gale Bridge and Highway Transportation District (CA) Harris County Transportation Authority (TX) Hillsborough Area Regional Transit (FL) Indianapolis Public Transportation (IN) Jacksonville Aviation Authority (FL) Jacksonville: Transportation Authority (FL) Kenton County Airport Board (KY) Lehigh Northampton Airport Aut honty (PA) Lincoln Airport Authority (NE) Maryland Transit Administration Metra St. Louis (MO) Metropolitan Atlanta Rapid Transit Authority (GA) Metropolitan Nashville AirportAuth. (TN) Milwaukee County Transportation Aulh_ (WI) National Railway Labor Commission New Jersey Turnpike Au9mnty Northern Ancona Intergovernmental Transportation AuUronty Orange County Transportation Authority (CA) Pace, Suburban Bus Division of the RTA (IL) Pierce Transit (WA) Pan Authority of Allegheny County (PA) Part of Houston Authority (TX) RafeiglFDudmm Airport Authority (NC) San Mateo County Transit (CA) Southern California Regional Rail Authority Transit Management of Southeast Louisiana, Inc Transit Management of Washes Caunty (NV) Valley MetmrRPTA (AZ) Victor Valley Transit Authority (CA) Virginia Railway Express Washington DC Metropolitan Area Transit Authority Utilities and Water Authorities Birmingham Water Works Board (AL) Castaic Lake Water Authority (CA) Central Ancona Project (AZ) City of Austin —Austin Energy (f)() Coachella Valley Water District (CA) Colorado Spmgs Utilities Columbus Water Works (GA) Denver Water (CO) Des Moines Water Works (IA) D C_ Water & Sewer Authority Easton Utilities Commission (MD) Fairfax Water (VA) Great Lakes Water Authority (MI) Greenville Electric Utility System (TX) Greenville Utilities Commission (NC) Guadalupe -Blanca River Authority (M Kerrville Public Utilities Board (TX) Loudorn Water (VA) Metropolitan District Commission (CT) Navajo Tribal Utility Authority (AZ) New Braunfels mines (TX) Orange County Public Utilities (FL) Platte River Power Authority (CO) Prince William County Serves Authority (VA) Raleigh Public Utilities District (NC) Texas Municipal Power Authority Toho Water wtrority (FL) Trophy Club Municipal Utility Daniel (TX) Upper Occequan Service Authority (VA) Water Replenishment District of Southern California West County Wastewater District (CA) Other Clients Bexar County Juvenile Probation Department (TX) Brawn University Library (RI) Carers -Source of Palm Beach County (FL) Cenicrfor Health Care Services of Hoover County (TX) Cuyahoga Library District (OH) King County Housing Aufbonty (WA) Minnehaha County Deputies Association (SD) Northern California UFCW Nothem Virginia Regional Park Authority Orleans Pansh Sheriffs Office (LA) San Antonio Housing Authority (TX) Spokane Regional Health District (WA) Timberland Regional Library (WA) U S. Office of Personnel Management Public School Districts ABC Unified School District (CA) Adams 12 Two Star School District (CO) Arlington Public Schools (VA) Boulder Valley School DisNol (GO) Denver Public Schools (CO) East Baton Rouge Pansh School System (LA) Fairfax County Public Schools (VA) Frederick County Public Schools (MD) Lafayette Parish School System (LA) Lou loun County Public Schools (VA) Norfolk Public Schools (VA) Prince Ceoge's Go Public Schools (MD) Prince William Go Public Schools (VA) Spokane Public Schools (WA) Springfield Public Schools (MA) Stallard County Public Schools (VA) Virginia Beach City Public Schools (VA) Public Sector Higher Education Bunker Hill Community College (MA) Buffer Community College (KS) Central Piedmont Community College (NC) Central New Mexico Community College College of the Mainland (TX) Gallia County Community College (TX) Colorado Community College System Community College of Philadelphia (PA) Community College System of New Hampshire Delaware County Community College (PA) George Mason University (VA) Grand Rapids Community College (MI) James Madison University (VA) Markets County Community College (AZ) Milwaukee Area Technical College (NA) Morehead State University (KY) Montgomery College (MD) Mott Community College (MI) Northern Virginia Community College Northern Wyoming Community College Palomar College (CA) Paddand College (IL) Portland Community College (OR) Radford University (VA) Texas A&M University Libraries Thomas Edison State College (NJ) University of Connecticut University of the District of Columbia Virginia Community College System Yampai Community College (AZ) 90932350197909 9029093235v1/91909 902 -Tr Sega I 8 Sample Reports The following reports, available online, provide specific examples of how our organization's expertise and recommendations have benefited a public agency City of Phoenix, AZ hftPS71AVWW.phoenix.gov/itssite/Documents/070008.pd City of San Diego Police Department, CA http://www.sandiego.gov/mayor/pdf/sdpd reppositions11614.pdf City of Sioux Falls, SD http://www.siouxfalls. ora/h u man -resources State of Alaska http://doa.a laska. aov/doD/fileadm i n/d i rectorsoffice/odf/seaalfi nalreoort. Ddf State of Colorado https:lAvww.colorado.gov/pacific/sites/default/fi les/D PA%20An n ual%20Compensation 20Survev%20Report%20FY2014-15 O.Ddf State of Rhode Island http://www.local2881.ora/docs/Seaal%20Report%20to%20State%20of%20RI %2001- 26-13.pdf Pinal County Sheriffs Office, AZ http://sthcw.files.wordpress.com/2013/04/pinal county sheriffs office memo as of 4- 22-131.pdf 00032350WW99020003235vIWW9902 Segal 9 IQualifications About Our Company The Segal Group (www.segalco.com) has been a leading, independent firm of benefit, compensation, and human resources consultants since its founding in 1939. Our clients include corporations, non-profit organizations, higher education institutions, professional service firms, and public sector entities, and jointly trusteed benefit funds. Segal is an independent, employee -owned organization with no ties to any other companies. Our only interest is in providing unbiased solutions to clients' total rewards needs. Our firm is headquartered in New York and has more than 1,000 employees working in the following offices throughout the U.S. and Canada. Atlanta, GA Edmonton, AS New York, NY Boston, MA Hartford, CT Philadelphia, PA Chicago, IL Juneau, AK Phoenix, AZ Cleveland, OH Los Angeles, CA Princeton, NJ Dallas, TX Minneapolis, MN San Francisco, CA Denver, CO Montreal, QC Toronto, ON Detroit, MI New Orleans, LA Washington, DC Segal has extensive experience in providing independent, results -driven consulting services to public sector entities throughout the country. For 80 years, we have developed cutting -edge total rewards approaches that provide quality health care, secure retirement, and competitive compensation programs for our clients' employees. Offering comprehensive total compensation and benefits packages requires governments to continually search for cost efficiencies and innovations. Many widely accepted benefit practice and cost containment solutions were originally designed by Segal. Company History and Staff The Segal Group was founded as the Martin E. Segal Company in October 1939, early in the development of employee benefit plans in American industry. From the beginning, Segal has been involved in developing health and retirement programs that meet the needs of employees and employers. In 1967, the Martin E. Segal Company became part of Wertheim & Co. and in 1978 it again became independent when it was repurchased by company management. W93235V1M7 099V2 3235vIWW9902 Segal to In 2001, The Segal Group acquired Marjorie Gross and Company, an award -winning firm specializing in communicating benefits and compensation information, as well as building strategies for effective employer communications. Early in 2002, The Segal Group acquired Sibson Consulting, a human resources consulting firm dedicated to helping companies improve the return on human capital through talent strategies, effective organization practices, change management, rewards and compensation design, work/life programs and other solutions that help enhance employee performance. In 2006, The Segal Group acquired Irwin Tepper Associates, Inc., a consulting firm that specializes in asset'liability analysis for employee benefit programs and other organizations. In 2010, The Segal Group acquired Aon Consulting's multiemployer defined benefit plan and related consulting business in the United States. In 2012, The Segal Group's investment consulting affiliate, Segal Rogerscasey, acquired Rogerscasey, a global investment consulting firm. The combined entity (Segal Rogerscasey) is a leading global investment solutions firm that provides innovative, client -driven consulting advice and outsourcing solutions. The firm has been in operation for more than 40 years and is one of the largest U.S.-based investment consultants. In 2013, The Segal Group's Fiduciary Liability Insurance Practice was incorporated as the insurance brokerage subsidiary of The Segal Group, Inc., and named Segal Select Insurance Services, Inc. Segal Select works with plan sponsors to obtain a full range of fiduciary insurance and fidelity bond coverage as well as employment practices liability insurance and cyber liability coverage. In 2014, The Segal Group acquired the Human Resources Consulting Division of Waters Consulting and combined it with Segal's Public Sector Compensation and Bargaining Practice. The combined entity, Segal Waters Consulting, provides compensation and human resources consulting solutions to public sector entities. Also in 2014, The Segal Group acquired a portion of the business of Moroni Fantin, an employee benefits consulting firm (which has now ceased operations) specializing in working with Michigan and national, mid -market, self -insured health plans. In 2017, The firm acquired Marco Consulting Group to expand our investment consulting services, and Segal Rogerscasey (the SEC -registered investment consulting member of The Segal Group), was renamed Segal Marco Advisors. The firm is a leading global investment solutions firm that provides innovative, client -driven consulting advice and discretionary solutions. It has been in operation for 50 years and is one of the largest U.S.-based investment consultants. In 2018, the firm acquired Touchstone Consulting Group, based in Worcester, MA, which provides retirement, health and welfare, actuarial and related employee benefit consulting services. 00032350/92009 9D20a03235v1M2009902 A- Sega I 11 Also in 2018, The firm acquired The Singer Group, a human resources and organizational development consulting firm based in the Baltimore area. Founded in 1983, The Singer Group provides compensation consulting, organizational design and development, performance management, workflow design and other human resources -related consulting services, for public and higher education library systems and not -for -profit organizations. In 2019, The firm acquired Benz Communications, an award -winning, industry -leading HR and employee benefits communications consulting firm. Founded in 2006, Benz Communications has been among the largest women -owned firms in the San Francisco Bay Area since 2012 and a five -time honoree on the Inc. 5000 list of fastest -growing, privately held companies. The new name of our combined Communications practice is Segal Benz. Through our history, we've built a group of brand names you've come to count on for truly personal actuarial and investment expertise aimed at one mission: delivering trusted advice that improves lives. Today in 2020, we now formally operate under one name: Segal. Segal, Segal Benz and Segal Marco Advisors are all members of the Segal family. While company names and logos have evolved over the frm's 80-year history, we remain an employee -owned firm known for providing unbiased consulting based on the integrity, expertise, personal investment and trusted advice of our people. The Segal Group is a founding member of the Multinational Group of Actuaries and Consultants (MGAC), whose member companies across the world meet clients' needs for assistance in international benefits planning The Segal Group is a private corporation owned by its active officers, with no shareholder owning more than 5% of the common stock. Our firm's chief officers are: • Joseph Lo Cicero — Chairman • David Blumenstein —President and Chief Executive Officer • Ricardo DiBartolo —Senior Vice President, Chief Financial Officer and Treasurer • Kimberly Banks MacKay, Esq. — Secretary and General Counsel Company Organization Chart Our jeans MV a aside was mimuecnee. Bo mmec.cm you are, we can assist yu,wnn: Adminmman and HR and Benue Technology demands commamcaaysn Amason Solutions er recroscan, (k.isamre Inductance communication Bo-eegy Financial mermedianes Beryd Amid Sdu6ns Oryanzallonal ERetlMness PersmalKed densest Statements ^amomte Gawnance compliance and Pnmy Voting dN Welton Pemdmance end is Rellremei�Benefi�s Women and Focus; [)mama Wetsne and Party! 0.sgi defied comndatlon con:mdma dema eenmds Blecreclant cutions g S �tmen� Wowuau Traditional c«iamwg Boc any saduaoni 90932350M7909 9029093235v1WW!) 902 Segal 12 Summary of Segal Services Segal is a completely independent organization vdth no ties to any other companies. Our only interest is in providing unbiased solutions to clients' total rewards needs. Visit us at www.segalco.com. Our comprehensive array of results -driven consulting and actuarial services includes strategic planning and program designs that align human resources strategies with staffing needs. Segal serves three distinct markets —Public Sector, Corporate and Multiemployer—with services, staff and expertise available to consult on the full range of health, retirement, and compensation issues in each of these markets. • Human Resources Consulting • Health and Welfare Plan Consulting • Retirement Plan Consulting • Compliance Consulting • Claims Audit Consulting • Communications Consulting • Administrative and Technology Consulting • Investment Consulting (through our SEC -registered affiliate, Segal Marco Advisors) Human Resources Consulting Services Segal has offered human resources consulting services dedicated to our public sector and collectively bargained clients since 1997. We help organizations adopt a more strategic, comprehensive and integrated approach to total rewards that includes both financial and nonfinancial rewards. Our services include: • Human Resources Functional Assessments • Total Compensation Market Studies • Total Compensation System Design and Implementation • Job Classification Analyses • Job Evaluation System Design and Implementation • Performance Management System Design and Implementation • Employee Opinion Surveys • Pay Equity Analysis • Cost Modeling Our consulting approach is based on customized solutions to meet specific needs, not "off -the - shelf' systems. Our goal is to maximize the value of total rewards by encouraging employee participation in our engagements. This is crucial to a successful outcome. Human Resources Functional Assessments We conduct assessments of all activities that support human resources. This includes evaluating the staffing, effectiveness of payroll, compensation, benefits, classification, recruitment and selection, training, employee relations, civil service rules, regulations and 99=50WN99Uz 3235vIWW9992 A -Segal 13 procedures. Our approach identifies strengths and weaknesses that impact effective human resources management. Total Compensation Market Studies We conduct total compensation market analyses targeted to specific comparable employers. This process identifies benchmark positions that are representative of an employers workforce. The surveys rapture information on pay ranges, maximum hiring pay rates, pay progression policies, performance -based reward systems, paid time off, health and welfare related benefits, and retirement benefits. As a routine part of any project, Segal provides clients with all detailed source data received through our surveys. Total Compensation System Design and Implementation We design total reward systems by working with clients to develop compensation philosophies that support organizational strategic goals and compensation best practices. We frequently work with clients to transform longevity -based pay programs to performance -based systems. Additionally, we often work with our clients in a joint labor-management environment to facilitate and communicate reward system changes. Job Classification Analyses Classification studies include development and analysis of position questionnaires and employee interviews as the basis for evaluating and streamlining the classification structure. Additionally, we can assist in developing customized job descriptions that are consistent with legislation such as FLSA and ADA. Job Evaluation System Design and Implementation Our Segal EvaluatorTM point -factor method of job evaluation is easily understood and provides an internal hierarchy based on established factors common to jobs throughout the organization. This approach determines the eight specific compensable factors customized to support the operating environment and organizational structure of each client. Performance Management Based on an organization's compensation strategy, we will develop a performance management approach that includes tools to measure individual and group performance as well as tie the performance management system to a pay delivery approach. Employee Opinion Surveys As part of evaluating total compensation programs, we frequently design and implement opinion surveys to measure employees' preferences and priorities regarding all aspects of their rewards of work (direct compensation, paid leave, benefits programs, work environment, career opportunities, affiliation with the organization, and other aspects). Our analysis can include comparisons of demographic groups, highlighting differences by occupational categories, career stage, or other groupings. In addition, we often conduct employee engagement surveys to 9093235V1M79099029093235v1M7W9902 i-Segal 14 understand employees' level of motivation and morale, turnover potential, and other measurable aspects of commitment and engagement with the organization. Pay Equity Analysis As an increasing number of states have enacted pay equity legislation, Segal Waters can conduct pay equity analysis based on gender and/or race. Our analysis identifies the existence of potential pay disparities and provides recommendations for policies to correct and prevent inequities. Cost Modeling Most reward system redesigns result in a fiscal impact to the employer. Our modeling approach not only identifies the immediate impact of implementation, but also provides a multi -year perspective to identify steady employer costs. 00032350WW9902 3235vIWW9902 Segal 15 Segal's Project Team The Segal project team consists of experienced consultants who are dedicated to meeting the needs of the City in a manner that is cost efficient, timely, and of high quality. All services will be provided by Segal consultants. No subcontractors will be used for this engagement. We bring to this project an excellent combination of skills and experience in public sector compensation analysis and design. Our team has relevant advanced degrees and professional certifications including: Certified Compensation Professional (CCP) through WoddatWork Professional (PHR), Senior Professional in Human Resources (SPHR) and SHRM Senior Certified Professional (SHRM-SCP) through the Society for Human Resources Management (SHRM) Segal will not be utilizing subcontractors for this assignment. Hourly Billing Rates Segal has never been removed from a project or disqualified from proposing on a project. We invite you to review the resume of each team member on the following pages. 90932350WN9 9029093235VIM7909 902 i-Segal 16 Ruth Ann Eledge, SPHR, SHRM-SP Vice President Project Role: Senior Consultant/Project Manager Expertise Ms. Eledge is a Vice President of Segal. In this role, she leads and oversees many of our Human Resources studies and compensation projects and works closely with the entire consulting team to ensure on -time delivery while meeting the quality requirements of our clients. Clients States. Agencies. and Retirement Systems Municipalities El Paso City Employees' Pension Fund (TX) City of Addison (TX) Fire and Police Pension Association (CO) City of Avondale (AZ) State of Illinois_ City of Austin DX) Teachers' Retirement System City of Bryan (TX) Universities Retirement System City of Chandler (AZ) State of North Carolina Education Lottery City of Charlotte INC) State of Texas Assoc. of Public Employee City of College Station FIX) Red Systems City of Colorado Springs (CO) State of Oregon Legislative Assembly City of Edinburg ILK) State of Oregon Lottery City of Farmers Branch (TX) City of Fort Worth (fX) Counties City of Fountain (CO) Bandera County Appraisal District (TX) City of Goleta (CA) Bay County (MI) City of Granbury (fX) Cannot County (TX) City of Grand Rapids (MI) Harris County Appraisal District (TX) City of Greenville INC) Howard County (MD) City of Greenville (SC) Jackson County (TX) City of Houston (TX) Jefferson County (CO) City of League City (TX) Lincoln County (SD) City of Lynnwood (WA) Macomb County (MI) City of Mancopa (AZ) Montrose County (CO) City of Marana (AZ) Terrehonne Parish (LA) City of Oklahoma City (OK) Santa Barbara County (CA) City of Overland Park (KS) Shelby County (TN) City of Palo Alto (CA) Webb County (FX) City of Poway (CA) City of San Marcos (CA) Htaher Education City of San Marcos (fX) College of the Mainland (TX) City of Sugar Land (TX) Collin County Community College (fX) City of Thibodaux (LA) Hanford Community College (MD) City of Thornton (CO) Northeast Community College (NE) City of Tyler (IX) Texas A B M University —Libraries Town of Chapel Hill INC) Village of W nne&a (IL) 90932350/97909 9029093235v1/97909 902 A-Sega I 17 Transportation Bishop International Airport Authority (MI) Capital District Transit Auld (NY) City of Charlotte (NC) -Airport Authority C-TRAN (WA) Columbus Regional Airport Authority (OH) Fort WayneAllenCounty Airport Auth_ (IN) Jacksonville Part Authority (FL) Lincoln Airport Authority (NE) Metropolitan Nashville Airport Authority (fN) Part of Houston Authority (TX) Raleigh -Durham Airport Authority (NC) Other Clients Anderson Public Library (IN) IndianapolisMarian County Library (IN) Kansas City Housing Authority (KS) Montgomery County 911 DX) North Little Rack Housing Authority (AR) Taff ant County 911 (TX) Professional Background Utilities and Water Authorities City of Austn - Austin Energy (TX) Colorado Springs Utilities Floresville Electric (fX) Greenville Utilities Commission INC) Guadalupe Brazos River Authority (TX) New Braunfels Utilities (TX) Orange Water and Sewer District INC) San Miguel Electric Cooperative, Inc (TX) Toho Water Authority (FL) Prior to joining Segal, Ms. Eledge worked at The Waters Consulting Group, one of the most experienced firms in public sector human resources and compensation consulting, which was acquired by Segal in 2014. Before joining Waters Consulting Group in 2000, Ms. Eledge served as the City of Austin's Director of Human Resources and Civil Service. Under her leadership, the City received an A+ rating from Governing Magazine for having a top Human Resource Department in 2000, an honor given only to two cities nationwide. Ms. Eledge has worked closely with various boards and commissions for the City of Austin, Texas, including the Civil Service Commission, Human Rights Commission, Mayor's Committee for Persons with Disabilities, and the City Council Affirmative Action Subcommittee. Education/Professional Designations Ms. Eledge received her Master's degree (MPA) from Southwest Texas State University and her Bachelor's degree from the University of Texas at Austin. RNh Mn Eleme, Vice President reledde(dse ialeo can 2144662460 seqa1ca 9093235vl M7909 9029093235v1/91909 902 A-Sega I 18 Lauralee Adams, CCP, PHR, SHRM-CP Senior Associate Project Role: Senior Compensation Analyst Expertise Mrs. Adams joined Segal in December 2018. She performs complex analytical work for total compensation market studies and job classification analysis. Clients Counties Higher Education Lake County (IL) Northern Virginia Community College Lincoln County (SD) Seminole County (LL) Transportation Webb County JX) San Mateo County Transit District (CA) K-12 School Districts Other Clients Virginia Beach City Public Schools (VA) Minnehaha County Deputies Association (SD) Utilities and Water Authorities Columbus Water Works (GA) Professional Background Prior to joining Segal, Mrs. Adams Worked for two years as a Compensation Analyst for the City of Clarksville in Tennessee where she updated the out-of-date pay structure to better represent the market and to make data -driven recommendations for wage increases. Mrs. Adams also spent four years as a Human Resources Manager for a national marketing firm in Shreveport, Louisiana. Education Mrs. Adams received her M.A. in Industrial/Organizational Psychology from the number one Master's Program in the country for the 1/0 field at Middle Tennessee State University in Murfreesboro, Tennessee. Before that, she obtained her B.A. in Psychology from Centenary College in Shreveport, Louisiana. Mrs. Adams also holds several professional certifications including her CCP (Certified Compensation Professional), her PHR (Professional in Human Resources), and her SHRM-CP (Society for Human Resources Management Certified Professional). rauraiee Adams, seoarasmcare edams seoaim com Zia accsace sedalco 90932350/97909.902 -A-Segal 19 Joyce C. Powell, CCP Senior Associate Project Role: Senior Compensation Analyst Expertise Ms. Powell is a Senior Associate in with more than 20 years of hands-on compensation experience, ten of which have been in the public sector. Her expertise includes conducting market analyses; designing pay structure; conducting FLSA classification reviews and internal equity reviews; developing and costing pay plan implementation scenarios; writing job descriptions; developing custom survey documents, and developing affirmative action plans. She is also experienced in job analysis and job evaluation. Clients States. Agencies. and Retirement Systems Municipalities State of Delaware City of Ashville INC) Fire and Police Pension Association (CO) City of Auburn (AL) Commonweatih of Massachusefls_ City ofAustin (fX) School Building Authority City of Avondale (AZ) Treasurer & Receiver City of Boston (MA) State of Illinois_ City of Cape Coral (FL) Board of Eduration City of Cedar Hill (TX) Teachers' Retirement System City of College Station (TX) Universities Retirement System of City of Colorado Springs (CO) City of Denver (CO) State of Ohio Public Employees Ret System City of Fat Lauderdale (FL) State of Oregon Lottery City of Fat Worth (TX) State of Tess Munirapal Retirement System City of Fountain (CO) Counties City of Garland (TX) Anderson County (SC) City of Grand Rapids (MI) Bay County (MI) City of Greenville (NC) Gillespie County (TX) City of Greenville (SC) Isabella County (MQ City of Hollywood (FL) Jefferson County (CO) City of League City (TX) Johnson County (TX) City of Liberty (FA) Kenosha County (WI) City of Lynnwood (WA) Lake County (IL) City of Manmpa (AZ) Macomb County (MI) City of Missouri City (TX) MGKinley County (NM) City of Palo Alto (CA) Montrose County (CO) City of Poway (CA) City of San Marcos (CA) Higher Education City of San Marcos (TX) Central New Mexico Community College City of Sierra Vista (AZ) College of the Mainland (TX) City of Thornton (CO) Collin County Community College(fX) City of Upper Arlington (OH) Harlord Community College (MD) City of Wichita Falls (fX) Lamar University (TX) City of York (PA) Northeast Community College (NE) Town of Chapel Hill INC) 9093 350197909.902 it Segal 20 Transportation C-TRAN (WA) City of Charlotte (NC) -Airport Authority Denton County Transportation Authority (TX) Des Moines Area Regional Transit (IA) Hillsborough Area Regional Transit (FL) Jacksonville Pod Authority (FL) Metropolitan Nashville Airport Authonl (TN) Northern Arizona Intergovernmental Public Transportation Authority Professional Background Utilities and Water Authorities Brown & Caldwell City of Austin - Austin Energy (TX) Colorado Springs Utilities Guadalupe Brazos River Authority (TX) New Braunfels Utilities (TX) Orange County Utilities (FL) Orange Water and Sewer District (NC) San Miguel Electric Cooperative, Inc (TX) Texas Municipal Power Agency (TX) K-12 School Districts Stafford County Public Schools (VA) Prior to joining Segal, Ms. Powell served as an independent consultant working for private and public sector organizations in a variety of industries including energy and oil, health care, information services, defense, insurance, transportation, and higher education. Prior to consulting, she served as the Supervisor of Compensation and EEO for a subsidiary of a Fortune 500 company. Education/Professional Designations Ms. Powell attended West Texas A&M University in Canyon, Texas. She has been a Certified Compensation Professional since 1990 and is an active member of WorldatWork and the North Texas Compensation Association. She is also an active member of the Society for Human Resource Management and the Dallas Human Resources Management Association. Speeches and Published Works Ms. Powell has co-authored articles in ICMKs The Municipal Year Book: "Salaries of Municipal Officials, 2008";'Salaries of Municipal Officials, 2009;" and "Salaries of Municipal Officials, 2010. Joyce Powell, Senior Aesociate imm%relliciseemalco 214 0662$61 a% 9p9323501979119.992 it Segal 21 Work Program Step 1: Project Initiation Initial Meeting The first task of this project will be to meet, via video conference, with the City's Project Team and any other key advisors to the project. The purpose of the meeting is to: • Confirm the goals and objectives of the study • Discuss the City's current compensation structures, as well as the reasons for this project • Finalize the timeline and specific dates for deliverables • Clarify Segal's and the City's roles in each project phase • Establish parameters and protocols for keeping the Project Team updated and informed • Identity data or information needed to support the overall assignment This meeting will help identify a clear project strategy that will facilitate a smooth and effective working relationship resulting in a successful outcome for the City. Our Expectations of the City for this Step For the initial meeting we ask the City to coordinate the schedules of those who will participate, as well as provide a meeting room. In addition, we ask that the City provide the following information in electronic format: • Salary structures • Current personnel policy documents • Current organization charts • Up-to-date job descriptions in Microsoft Word • Current and accurate employee census data WvM5019r9 9M irSegal 22 Step 2: Compensation (Salary and Benefits) Market Assessment We understand the City is requesting a compensation (salary and benefits) market assessment with the following goals: • Salary and benefits market study for up to 20 benchmarkjob titles, distributed to 12 comparison agencies • Collection and analysis of salary market data to determine the City's competitive market positon for pay • Collection of peer employer contributions to health insurance, retirement formulas and employee contributions • Collection of peer employer paid time off benefits and anticipated cost of living adjustments • Development of a final report that identifies the market median and the distance from the median for City benchmark data • Delivery of the report in final form, following preliminary review by City staff, no later than September 18, 2020 To conduct a valid, reliable, and useful market study, we propose to take the following steps: 1. Develop a Market Study Methodology 2. Identify Benchmark Job Titles and Comparable Employers 3. Collect and Analyze the Market Data 4. Prepare and Deliver a Report to you Detailing our Findings These steps are described in more detail below and on the following pages. 1. Develop a Study Methodology We think that it is important for Segal and the Project Team to gain consensus on the overall goals and strategy regarding total compensation, including the market study. We will work with the City's Project Team to clarify and finalize the market study methodology. Our goal is to have a common understanding of the various options for conducting the market study, as well as an understanding of the implications on subsequent design of new salary structures. This understanding will allow us to develop and conduct a market study that is consistent with the City's compensation goals and will support the City's expectations. For this project, we recommend conducting a custom -designed survey targeted to your public sector peer employers: • Custom surveys provide the most currently available data. • Custom surveys allow you to target specific geographic markets, employers, and specific jobs. WIDM50/97WI91 z 7� Segal 23 Custom surveys allow you to collect information that is not usually available in published data sources, such as scheduled salary ranges, pay supplements, compensation policies, union status, benefits, etc. 2. Identify Benchmark Job Titles and Comparable Employers We understand that this project covers approximately 20 job benchmarkjob titles The next step will be to determine the comparable employers to include in the study. Typically, these employers include public sector entities that are geographically proximate to the City and are likely to have matching jobs. In addition, it might also include public sector employers outside of the immediate commuting area, but that are similar to the City in terms of size, scope, population, or other characteristics. Naturally, we will discuss this list with the Project Team and make modifications as necessary. For pricing purposes, we have assumed the custom market study will be distributed to up to 12 public sector entities. 3. Collect and Analyze the Market Data We will also design a survey instrument for collecting the market information, which we typically develop in MS Excel. The types of information we anticipate collecting through the survey include: • Benchmark job base pay ranges (minimum and maximum annual pay rates) • Actual average pay rates • Policies regarding adjustments to the pay schedule • Paid time off accrual rates (vacation time, sick leave, and holidays) • Prevalence, cost, and cost -sharing arrangements for medical plans and other benefits (prescription drugs, dental, vision, etc.) • Prevalence and costs associated with retirement programs • Prevalence of supplemental benefits and perquisites (such as wellness programs, tuition assistance, etc.) We will also draft brief job summaries for each benchmark title based on currentjob descriptions to assist the survey participants with matching jobs consistently and appropriately. Once the Project Team has reviewed and approved the survey document, we will distribute it to the approved group of comparable employers. We make many efforts to achieve the goal of 100% participation from each invited employer, yet we cannot guarantee that we will obtain good data from each of the employers invited to participate and for all of the jobs requested. Respondents will return completed surveys and supplementary materials directly to Segal. We will review and validate each survey response for completeness and reasonability, and then follow up with survey participants as necessary to clarity any incomplete or inconsistent responses. 909M5v1M7W1.9V %Segal 24 Segal will desion a database to support our analysis that will become the property of the City upon completion of this project for your future analyses. We will then analyze the survey data to determine the City's market position relative to the market average minimum, midpoint, and maximum pay rate for each benchmark job title. We then compare these averages to the City's pay ranges to determine the market position for each job title and occupational group. Based on industry standards that align with federal antitrustfsafe harbor guidelines, benchmarks that receive less than five (5) total responses will not be included in our final report. To the extent that different employer groups or industry sectors are included in the study, we will segment our findings accordingly. In addition, if applicable, we will geographically adjust market data for respondents outside of the metro area, using current cost of labor differentials from ERI Geographic Assessor. Our report will include summary tables, such as the tables shown below. EXAMPLE TABLE 1 CLIENT MARKET POSITION BY SECTOR —PAY ONLY Client Pay Ranges as a Percent of the Market Average Pay Range Minimum Range Midpoint PM Range Maximum 100% 95% 90% Figures shown in red are below market gess than 95% of the market average) Fgures shown in black within the market range (95% to 105%of the market average) Fgmes shown in blue are above market (mare than 105%of the market average) EXAMPLE TABLE 2 CLIENT MARKET POSITION BY DATA SOURCE —PAY ONLY Client as a Percent of the Average Public Sector Peer Employer o Matches Pay Range Minimum Pay Range Midpoint Pay Range Maximum Peer Organization Name 46 97% 98% 99% Peer Organization Name 55 100% 99% 99% Peer Organization Name 57 102% 99% 97% Peer Organization Name 58 116% 108% 102% Peer Organization Name 59 97% 98% 98% Peer Organization Name 48 124% 104% 93% Peer Organization Name 56 101% 95% 90% Peer Organization Name 30 113% 107% 103% Peer Organizalion Name 54 90% 89% 88% Peer Organization Name 46 121% 116% 112% Peer Organization Name 48 90% 92% 92% Peer Organization Name 39 108% 99% 95% Overall 99% 94% 89% 9093za50U97900.902 T- Segal 25 EXAMPLE TABLE 3 CLIENT OVERALL MARKET POSITION -PAY ONLY Client as a % of the Overall Markel Average Job Family and Benchmark Title Nof Matches Pay Range Minimum Pay Range Midpoint Pay Range Maximum Accounting/Finance/Business Account Clerk ll 12 92% 88% 85% Payroll Coordinator 12 113% 103% 96% Senior Buyer 13 113% 110% 107% Senior Financial Analyst 12 102% 97% 93% Buildings and Facilities Maintenance Mechanic II 13 94% 91% 88 h Building Operations Supervisor 13 114% 110% 106% Building Operations Manager 13 116% 109% 102Mo Engineering Senior Engineering Technician 11 102% 100% 98% Senior Civil Engineer 12 96% 91% 87% Engineering Services Manager 13 95% 88% 82% Human Resources Human Resources Assistant 13 95% 94% 92% Human Resources Analyst 13 91% 87% 82% Information Technology Applications Analyst Programmer 14 90% 95% 98% Senior Business Analyst 12 90% 97% 100% Senior Network Analyst 13 89% 93% 96% Principal Database Administrator 12 101% 100% 98% Information Technology Manager 15 97% 89% 83% Law Enforcement Lieutenant 11 101% 99% 97% Captain 11 105% 99% 9596 Legal Senior Attorney 15 99% 86% 79% Office Support Administrative Assistant 13 99% 92% 87% Office Services Coordinator 13 100% 96% 91% 9093 350/97909.902 itSegaI 26 In addition, our report will include detailed data showing each comparator's job match, salary range, and other information for each benchmark title, as shown below. EXAMPLE TABLE 4 APPENDIX B - DETAILED MARKET DATA (ADJUSTED) Purchasing Specialist Business Operations/Administrative Respondent Matching Job Title Minimum Base Salary Midpoint Base Salary Maximum Base Salary Average Salary Custom Survey Data Sources Peer#1 Buyer $35,083 $43,854 $52,624 $46,566 Peer#2 HR Purchasing Specialist $51,071 $66,521 $81970 $58,864 Peer#3 No Match NA NA NA NA Poor#4 ProcurementSpecialist $49,612 $73,912 $98.212 NA Poor#5 Junior Procurement Officer $47,923 $61,059 $74,194 $56.838 Poor#6 Purchasing Adminislralor $43,139 $53,675 $64.210 $52.284 Poor#7 Purchasing Specialist $43,449 $52,139 $%828 $56.228 Poor#8 Purchasing Agent $44,116 $55,151 $66.185 $50,482 Poor#9 Senior Pumhassing Associate $39,125 $48,911 $58.698 $49,698 Peer#10 Purchasing Specialist $42,640 $56,587 $70.533 $52,291 Poor#11 Lead Purohasin0 Specialist $38,792 $50,055 $61 318 $45,989 Peer#12 Project Purchaser $44,582 $57,899 $71215 NA Client $35,048 $43,004 $50,960 $41,600 Custom Survey MarketAverage $43,594 $56,342 $89.090 $52,138 Client as a% of Custom Survey MarketAvemge 80% 76% 74% 80% Client $35,048 543,004 $50,960 $41,600 Overall CompamtorMarketAverage $43,594 $56,342 $69,090 $52,138 Client as a% of Overall Market Average 76% 74% 80% Adjustment To Reach MarketAvemge 31% 36% 9093235v1197909902 Segal 27 Our report will also include tables showing each survey respondent's pay policies, benefit offerings, and other information collected in the study, such as in the tables shown below. EXAMPLE TABLE 5 VACATION ACCRUAL -PUBLIC SECTOR Vacation Days Accrued per Year, after how many years of service Public Sector Peer Employer 1 10 15 20 25 Peer Name 10 125 15 20 25 25 27 Peer Name 12 17 22 27 27 32 32 Peer Name 13 16 19 22 25 28 31 Peer Name 10 15 20 25 30 30 35 Peer Name 10 15 19 25 30 30 30 Peer Name 10 15 20 20 25 25 25 Peer Name 12 14 17 20 23 23 23 Peer Name 12 15 15 21 21 21 21 Peer Name 10 15 15 20 20 20 20 Peer Name 10 15 20 25 30 30 30 Peer Name 10 15 20 20 25 25 25 Peer Name 12 15 20 22 25 25 25 MarketAvemge 10.9 15.0 18.5 22.3 25.5 26.2 27.0 Client 10 10 15 20 20 25 25 90932350M7909.902 Segal 28 EXAMPLE TABLE 6 PPO/POS PLAN MONTHLY COSTS Employer $ Employee $ Employer % Peer Employer Single Family Single Family Single Family Peer Name $485 $1,209 $508 $1,270 49% 49% Peer Name $708 $2,115 $85 $266 89% 89% Peer Name $609 $1,703 $41 $118 94% 94% Peer Name $623 $1,755 $0 $378 100% 82% Peer Name $611 $1346 $25 $150 96% 90% Peer Name $569 $1681 $145 $600 80% 74% Peer Name $600 $1044 $85 $485 88% 68% Peer Name $469 $1,457 $56 $170 89% 90% Peer Name $615 $1559 $63 $238 91% 87% Peer Name $863 $1401 $85 $170 91% 89% Peer Name $411 $1217 $72 $215 85% 85% Average $1,499 $106 $369 86% 81% Client Urns $x,xor $xx $xx xx% xx% Monthly casts have been munced to the nearest dollar PPOIPOS = Prefenetl Pmvider Orgamnation or Point of Service Plan 999M5vlM79o9.902 ti Segal 29 EXAMPLE TABLE 7 DEFINED BENEFIT PLAN CONTRIBUTIONS - PUBLIC SECTOR Defined Benefit Defined Contribution Plan Deferred Compensation Plan Social Security Contribution Survey Participant Employer Normal Cost Contribution EE Contribution Cost Picked up by ER? EE Contribution Employer Contribution Maximum Match Employer Contribution Maximum Match Contribute to SS? OSADI Medicare Total Employer Contribution Peer#1 4.10% No 3.50% 3.00% 3.00% Yes 6.20% 1.45% 17.75% Peer#2 6.02% No 9.00% N/A N/A Yes 6.20% 1.45% 13.67% Peer#3 4.88% No 6.25% N/A N/A Yes 6.20% 1.45% 12.53% Peer#4 4.61% No 5.00% 0.58% 2.50% N/A N/A Yes 6.20% 1.45% 15.34% Peer#5 13.10% N/A 4.40% 1.00% 4.00% N/A N/A Yes 6.20% 1.45% 25.75% Peer#6 6.09% No 3.00% N/A N/A Yes 6.20% 1.45% 13.74% Peer#7 1.61% No 3.00% 1.00% 2.00% N/A N/A Yes 6.20% 1.45% 12.26% Peer#8 3.83% No 6.75% N/A N/A Yes 6.20% 1.45% 11.48% Peer#9 2.66% No 7.50% N/A N/A Yes 6.20% 1.45% 10.31% Peer#10 9.20% No 3.50% N/A N/A Yes 6.20% 1.45% 16.85% Peer#11 4.48% No 6.00% N/A N/A Ves 6.20% 1.45% 12.13% Peer#12 7.20% No 3.00% N/A N/A Yes 6.20% 1.45% 14.85% Participant Average 14.72% Client 6.440/. No 5.00% Yes 6.20% 1.45% 14.09% 90932a 119799s 9D2 i�SegoI 30 6. Prepare a Report of Our Findings Once all data have been collected, reviewed, and analyzed, we will prepare a report detailing our methodology and findings. The report will include at least the following items: • An Executive Summary, briefly describing our key findings • A description of the study objectives and methodology • The City's competitive market position for pay, applicable to each benchmark job title and job family • The prevailing policies regarding pay progression, supplemental pay, and other compensation -related practices collected in the survey • Appendices showing detailed information collected for the market study Our Expectations of the City for this Step City's Project Team Role 1_ Develop Compensation Strategy and Market Study • Meet with Segal staff, provide direction on strategy and methodology Methodology 2_ Identify Benchmark Jobs • Review and approve list of benchmarks 3_ Identify Comparable Employers • Review and approve list of comparators 4_ Collect and Analyze the Market Data • Review and approve survey document • Assist contacting survey recipients, if necessary • Complete survey on behalf of the City • Review draft market data and pumvide comments 5_ Prepare and Deliver Report • Review draft report, provide feedback, and approve final report 9093235v1m7900.902 it Segal 31 Step 3: Present Final Results to the City We anticipate presenting the final results to City Council. While it is difficult to anticipate at this time the exact nature of this presentation, our price proposal assumes we will develop and deliver one on -site presentation that will contain at least the following elements: • Background and reasons for the project • Objectives and goals of the project • Methodology used to conduct our analysis • Key findings and outcomes • Our recommendations, including potential implications of those recommendations We will draft the presentation for the Project Team's review, and then will finalize the document based on your comments and input. We anticipate that a senior member of Segal' Team will deliver the presentation, in conjunction with a senior member of the City's Project Team. Project Timeline Segal is available to begin this project upon award of contract and understands the final report needs to be presented no later than September 16, 2020. Our proposed timeline below and specific project deliverables will be finalized with the City's Project Team during Step 1: Project Initiation. Please note: Segal is unable to begin any project without a signed contract from the City. ANTICIPATED TIMELINE IN MONTHS 9003235vtWs00.902 Segal 32 Cost Proposal Segal is fully aware of the sensitivity of budget allocations for public sector employers. We believe that you will find our approach focused toward achieving the City's objectives in the most cost-effective manner consistent with quality, accuracy, and timeliness. Step 1: Project Initiation Assumes we will meet via video -conference with the City's Project Team and conduct stakeholder interviews, as well as time associated with learning about the City's current compensation structures, policies, and practices. Step 2: Compensation (Salary and Benefits) Market Assessment Assumes the following: • Develop a customized compensation (salary and benefits) market survey document with up to 20 benchmark job titles, to be distributed to no more than 12 public sector peer employers • One draft and one final report of the market study findings Step 3: Present Final Results Assumes we develop and deliver one presentation, either on -site or via video conference, to City Council TOTAL FIXED FEE Anticipated Number of Hours: 100 $24,495 The proposed fee includes charges for all professional, analytic, and administrative services, as well as all expenses associated with materials, supplies, overhead, and travel for all tasks outlined in this proposal except as otherwise noted. Our total fixed fee will be billed at the end of each month in 4 equal invoices for $6,250. Travel expenses for meetings scheduled less than one week in advance will be charged additionally. If a scheduled meeting is cancelled by the client, any non-refundable travel expenses will be billed to the client at cost. To the extent our proposed scope and fees differ from your needs or the level of effort described in other proposals you may receive, Segal is prepared to discuss alternatives to the fees stipulated in our proposal. Our proposed fee assumes only the services and on -site meetings described in the proposal. Should the City request additional services or additional on -site meetings, we would charge the hourly rates shown below, as well as for the time and expenses associated with travel. ff Member Ruth Ann Eledge Title/Role 0 Hourly Rate Vice President, Senior Consultant, Project Manager $395 Lauralee Adams Senior Associate $285 Joyce C. Powell Senior Associate $285 WgM50Wgo 9M Segal 33 Preferred Payment Information For your convenience, invoices can be paid by check or wire transfer. Please see the following information included below. By Check By Wire Transfer JP MORGAN/CHASE BANK P. O. Box 4070 Acct Name: THE SEGAL COMPANY Church Street Station (WESTERNSTATES) INC. New York, NY 10261-4070 Acct Type: CHECKING Acct#: 1440-74105 ABA #: 021000021 Please return a copy of this Remittance Advice with your check to assist us in Please reference client name and invoice. crediting your account. WgM5v,19]9 9n2 irSegal Exceptions to Terms and Conditions Segal reserves the right to negotiate mutually agreeable terms and conditions of any contract awarded to it pursuant to this RFP. Segal's typical points of negotiation include: i) Ownership of Deliverables: To ensure client -ownership and full use of the deliverables, while retaining for Segal its right to its proprietary software, tools, techniques, consulting methodologies and report formats. ii) Insurance: To reflect the scope and applicability of coverages maintained by Segal. iii) Indemnification: To reflect an appropriate trigger before Segal's indemnification obligations apply (e.g., a determination that claims, damages, costs and expenses resulted from Segal's willful misconduct or negligence). iv) Data Security: To reflect the industry standard protections that Segal employs around data security. W932350M]r o9.9M irSegal 35