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HR Employee Benefits Process AuditAGREEMENT FOR PROFESSIONAL SERVICES EMPLOYEE BENEFITS PROCESS AUDIT This Agreement is made and entered into this day of Q',uqu%L— .20 !b', by and between the CITY OF SAN RAFAEL (hereinafter "CITY"), and PAUL IIACKLEMAN, doing business as I.C. BENEFITS CONSULTING (hereinafter "CONTRACTOR"). RECITALS WHEREAS, CITY provides a comprehensive benefits program for its employees; and WHEREAS, CITY wishes to obtain the services of an expert in the employee benefits field to review CITY's benefits program to ensure that it is compliant with current regulatory requirements and best management practices, and is operating efficiently to optimize the benefits CITY provides to its employees, CITY wishes to obtain the services; AGREEMENT NOW, THEREFORE, the parties hereby agree as follows: 1. PROJECT COORDINATION. A. CITY'S Project Manager. The Human Resources Director is hereby designated the PROJECT MANAGER for the CITY, and said PROJECT MANAGER shall supervise all aspects of the progress and execution of this Agreement. B. CONTRACTOR'S Project Director. CONTRACTOR shall assign a single PROJECT DIRECTOR to have overall responsibility for the progress and execution of this Agreement for CONTRACTOR. Paul Hackleman is hereby designated as the PROJECT DIRECTOR for CONTRACTOR. Should circumstances or conditions subsequent to the execution of this Agreement require a substitute PROJECT DIRECTOR, for any reason, the CONTRACTOR shall notify the CITY within ten (10) business days of the substitution. 2. DUTIES OF CONTRACTOR. CONTRACTOR shall perform the duties and/or provide the services described as "Phase 1" in the proposal letter from CONTRACTOR dated June 19, 2015, attached hereto and incorporated herein by reference. 3. DUTIES OF CITY. CITY shall pay the compensation as provided in Paragraph 4, and provide CONTRACTOR with access to information and CITY personnel as necessary for the performance of CONTRACTOR's services hereunder. gyp, Rev. Date: 8/8/15 X 4. COMPENSATION. For the full performance of the services described herein by CONTRACTOR, CITY shall pay CONTRACTOR hourly at the rate of TWO HUNDRED FIFTY DOLLARS ($250.00) per hour, inclusive of expenses. In no event shall the compensation paid to CONTRACTOIR, hereunder exceed a total of FIFTEEN TIIOUSAND DOLLARS ($15,000.00). Payment will be made monthly upon receipt by PROJECT MANAGER of itemized invoices submitted by CONTRACTOR. 5. TERM OF AGREEMENT. The term of this Agreement shall be for one (1) year commencing as of August 1, 2015 and ending on July 31, 2016. Upon mutual agreement of the parties, and subject to the approval of the City Manager the term of this Agreement may be extended for an additional period of up to six (6) months. 6. TERMINATION. A. Discretionary. Either party may terminate this Agreement without cause upon thirty (30) days written notice mailed or personally delivered to the other party. B. Cause. Either party may terminate this Agreement for cause upon fifteen (15) days written notice mailed or personally delivered to the other party, and the notified party's failure to cure or convect the cause of the termination, to the reasonable satisfaction of the party giving such notice, within such fifteen (15) day time period. C. Effect of Termination. Upon receipt of notice of termination, neither party shall incur additional obligations under any provision of this Agreement without the prior written consent of the other. D. Return of Documents. Upon termination, any and all CITY documents or materials provided to CONTRACTOR and any and all of CONTRACTOR's documents and materials prepared for or relating to the performance of its duties under this Agreement, shall be delivered to CITY as soon as possible, but not later than thirty (30) days after termination. 7. OWNERSHIP OF DOCUMENTS. The written documents and materials prepared by the CONTRACTOR in connection with the performance of its duties under this Agreement, shall be the sole property of CITY. CITY may use said property for any purpose, including projects not contemplated by this Agreement. INSPECTION AND AUDIT. Upon reasonable notice, CONTRACTOR shall make available to CITY, or its agent, for inspection and audit, all documents and materials maintained by CONTRACTOR in connection Rev. date: 8/8/15 with its performance of its duties under this Agreement. CONTRACTOR shall fully cooperate with CITY or its agent in any such audit or inspection. 9. ASSIGNABILITY. The parties agree that they shall not assign or transfer any interest in this Agreement nor the performance of any of their respective obligations hereunder, without the prior written consent of the other party, and any attempt to so assign this Agreement or any rights, duties or obligations arising hereunder shall be void and of no effect. 10. INSURANCE. During the term of this Agreement, CONTRACTOR shall maintain in force, at no expense to CITY, an automobile liability (owned, non -owned, and hired vehicles) insurance policy with coverage in the minimum amounts of $500,000/person // $500,000/occurrence for bodily injury and $100,000/occurrence for property damage. If it employs any person, CONTRACTOR shall maintain worker's compensation and employer's liability insurance, as required by the State Labor Code and other applicable laws and regulations, and as necessary to protect both CONTRACTOR and CITY against all liability for injuries to CONTRACTOR's officers and employees. CONTRACTOR'S worker's compensation insurance shall be specifically endorsed to waive any right of subrogation against CITY. The limits of insurance required in this Agreement may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and noncontributory basis for the benefit of CITY (if agreed to in a written contract or agreement) before CITY'S own insurance or self-insurance shall be called upon to protect it as a named insured. CONTRACTOR shall provide proof of the required insurance to the PROJECT MANAGER Failure to exercise this right shall not constitute a waiver of the right to exercise it later. The insurance shall be approved as to form and sufficiency by PROJECT MANAGER. 11. INDEMNIFICATION. CONTRACTOR shall, to the fullest extent permitted by law, indemnify, release, defend with counsel approved by CITY, and hold harmless CITY, its officers, agents, employees and volunteers (collectively, the "City Indemnitees"), from and against any claim, demand, suit, judgment, loss, liability or expense of any kind, including but not limited to attorney's fees, expert fees and all other costs and fees of litigation, (collectively "CLAIMS"), arising out of CONTRACTOR'S performance of its obligations or conduct of its operations under this Agreement due to the willful or negligent acts (active or passive) or omissions by CONTRACTOR and CONTRACTOR'S officers, employees or agents, if any. Rev. date: 8/8/15 3 12. NONDISCRIMINATION. CONTRACTOR shall not discriminate, in any way, against any person on the basis of age, sex, race, color, religion, ancestry, national origin or disability in connection with or related to the performance of its duties and obligations under this Agreement. 13. COMPLIANCE WITH ALL LAWS. CONTRACTOR shall observe and comply with all applicable federal, state and local laws, ordinances, codes and regulations, in the performance of its duties and obligations under this Agreement. CONTRACTOR shall perform all services under this Agreement in accordance with these laws, ordinances, codes and regulations. CONTRACTOR shall release, defend, indemnify and hold harmless CITY, its officers, agents and employees from any and all damages, liabilities, penalties, fines and all other consequences from any noncompliance or violation of any laws, ordinances, codes or regulations. 14. NO THIRD PARTY BENEFICIARIES. CITY and CONTRACTOR do not intend, by any provision of this Agreement, to create in any third party, any benefit or right owed by one party, under the terms and conditions of this Agreement, to the other party. 15. NOTICES. All notices and other communications required or permitted to be given under this Agreement, including any notice of change of address, shall be in writing and given by personal delivery, or deposited with the United States Postal Service, postage prepaid, addressed to the parties intended to be notified. Notice shall be deemed given as of the date of personal delivery, or if mailed, upon the date of deposit with the United States Postal Service. Notice shall be given as follows: TO CITY's Project Manager: TO CONTRACTOR's Project Director: 16. INDEPENDENT CONTRACTOR. Deirdre Dolan, Human Resources Director City of San Rafael 1400 Fifth Avenue P.O. Box 151560 San Rafael, CA 94915-1560 Paul Hackleman I.C. Benefits Consulting 232 Stanley Road Burlingame, CA 94010-2844 For the purposes, and for the duration, of this Agreement, CONTRACTOR, its officers, Rev. date: 8/8/15 agents and employees shall act in the capacity of an Independent Contractor, and not as employees of the CITY. CONTRACTOR and CITY expressly intend and agree that the status of CONTRACTOR, its officers, agents and employees be that of an Independent Contractor and not that of an employee of CITY. 17. ENTIRE AGREEMENT -- AMENDMENTS. A. The terms and conditions of this Agreement, all exhibits attached, and all documents expressly incorporated by reference, represent the entire Agreement of the parties with respect to the subject matter of this Agreement. B. This written Agreement shall supersede any and all prior agreements, oral or written, regarding the subject matter between the CONTRACTOR and the CITY. C. No other agreement, promise or statement, written or oral, relating to the subject matter of this Agreement, shall be valid or binding, except by way of a written amendment to this Agreement. D. The terms and conditions of this Agreement shall not be altered or modified except by a written amendment to this Agreement signed by the CONTRACTOR and the CITY. E. If any conflicts arise between the terms and conditions of this Agreement, and the terns and conditions of the attached exhibits or the documents expressly incorporated by reference, the terms and conditions of this Agreement shall control. 18. SET-OFF AGAINST DEBTS. CONTRACTOR agrees that CITY may deduct from any payment due to CONTRACTOR under this Agreement, any monies which CONTRACTOR owes CITY under any ordinance, agreement, contract or resolution for any unpaid taxes, fees, licenses, assessments, unpaid checks or other amounts. 19. WAIVERS. The waiver by either party of any breach or violation of any term, covenant or condition of this Agreement, or of any ordinance, law or regulation, shall not be deemed to be a waiver of any other tern, covenant, condition, ordinance, law or regulation, or of any subsequent breach or violation of the same or other term, covenant, condition, ordinance, law or regulation. The subsequent acceptance by either party of any fee, performance, or other consideration which may become due or owing under this Agreement, shall not be deemed to be a waiver of any preceding breach or violation by the other party of any term, condition, covenant of this Agreement or any applicable law, ordinance or regulation. 20. COSTS AND ATTORNEY'S FEES. The prevailing party in any action brought to enforce the terms and conditions of this Rev. date: 8/8/15 Agreement, or arising out of the performance of this Agreement, may recover its reasonable costs (including claims administration) and attorney's fees expended in connection with such action. 21. CITY BUSINESS LICENSE / OTI IER TAXES. CONTRACTOR shall obtain and maintain during the duration of this Agreement, a CITY business license as required by the San Rafael Municipal Code CONTRACTOR shall pay any and all state and federal taxes and any other applicable taxes. CITY shall not be required to pay for any work performed under this Agreement, until CONTRACTOR has provided CITY with a completed Internal Revenue Service Form W-9 (Request for Taxpayer Identification Number and Certification). 22. APPLICABLE LAW. The laws of the State of California shall govern this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day, month and year first above written. CITY OF SAN RAFAEL J S M SCHUTZ, City ager ATTEST: A..5&WJ G - 9.e -c ,e," ESTHER C. BEIRNE, City Clerk APPROVED AS TO FORM: ROBERT F. EPSTEIN, ityAI#Orney Rev. date: 8/8/15 CONTRACTOR By: Title:t ,�c� ( ` i I.C.fitConsulting Paul Hackleman 232 Stanley Road Burlingame, 4010 - Deirdre Dolan Human Resources Director City of San Rafael 1400 Fifth Avenue, Suite 210 San Rafael, CA 94901 Dear Deirdre and Mark: Attached is the proposal for the City of San Rafael's process audit. This is an electronic copy but I have a formal written copy going out to you today, along with a copy of the contract I had with San Jose in the early 2000s. Since that contract, I formally began doing my consulting work with Bill under the SST Benefits Consulting auspices because we were collaborating on all of our consulting projects. As you will note in the attached Scope of Services, I have divided the work into two major Phases. Below is a general summary of these two Phases, although the attached outline is more specific in terms of what documents I will review and how I will conduct my work. As we discussed, I propose we meet to discuss this proposal in greater detail so you can refine the scope and work you'd like me to perform and correct any omissions I have made based on our conference call. The first Phase is my review of current contracts, benefits programs, communication covering legislative, legal and regulatory processes as well as internal policies, payroll processes and collective bargaining agreements and processes. In this first Phase, I would propose interviewing the individuals you identified in your e-mail to learn what roles and responsibilities they individually assume, how they conduct their work and what mechanisms they use to evaluate current programs and options. From this information I would identify key issues and make broad suggestions for enhancements / changes. I will conclude Phase 1 with an onsite discussion of the key findings and recommendations with you, Mark and anyone else you feel is appropriate. Phase 2 would be developed from that discussion to propose a more in-depth consideration of possible changes in policies, processes and evaluative capabilities and the corresponding cost for my work. As we discussed, this will allow you to decide where you want me to concentrate my work and what you or the City would wish to pursue independently of this project. In terms of cost, my current independent hourly rate is $250. Alternatively, I can estimate the time for each element of each Phase with a fixed price. Based on my estimate of time and the hourly rate I charge I cannot imagine a cost that would exceed $20,000 for Phase 1 and the price is likely to be closer to $15,000. We can discuss this more in person. As we discussed, the cost would begin with the signed contract and the first work begun on the implementation of Phase 1. There is no cost for this proposal or for the onsite meeting we have to refine that proposal to your satisfaction. When you have had a chance to review, please let me know what date works best for you. As a reminder, I am in Albany, New York from June 29 to July 3 and unavailable and out of cell phone range from July 5 through July 11. The week of July 13 is still very clear for me at present with the exception of July 14. Sincerely, Paul Hackleman I.C. Benefits PHASE 1 This scope of services covers the City's Health, Dental and Vision Plans, the 457(b) and 401(a) Defined Contribution Plans, term and supplemental Life Insurance coverage, a Flexible Spending Account, and Long Term Disability. The objectives of Phase 1 are to ascertain: • How the City assesses and maintains compliance with federal and state legislative and regulatory requirements. • How newly considered benefit policies, programs and program changes are vetted, analyzed and, if adopted, implemented and evaluated. • Who plays what roles in each of the areas of benefit management, oversight and implementation. • How effective is the current system of maintaining benefit -related documents (electronic and paper). • How effective are the current processes in ensuring timely and accurate processing of benefits? • How collective bargaining proposals (either by labor or management) are evaluated, considered and adopted and, once adopted, implemented, communicated and evaluated. • What processes are followed on an ongoing basis to assure that each benefit remains in compliance and continues to meet its objectives. • At a strategic level, how is the package of benefits assessed to determine their effectiveness in meeting overall City objectives. REVIEW OF CITY DOCUMENTATION AND PROCESSES Documentation — For each plan / program plan documents will include electronic or hardcopies of formal plan documents. Because of the defined nature of health coverage through PERS, Summary Plan Descriptions or New Employee Packet information is an appropriate substitute for your health plans. This element of documentation should also include employer / employee premium contributions across all bargaining units. MOUs — Provision of MOUs covering benefit provisions for each of the 11 bargaining units. Pavroll / Eliaibility — Select a representative sample of recent hires to confirm internal enrollment procedures and accuracy of employees selections and corresponding costs. Communications — Recent (within the last year or since the last bargaining cycle) communications to employees / retirees covering newly implemented benefits or changes to benefits. Policies — Any policies or resolutions adopted by City Council or Manager that relate to benefit coverage or programs. Reports — Any major reports provided to City Council or Manager covering evaluation of benefit costs, changes in coverage, modification due to regulatory, provider contractual or other external changes. This should also encompass any written summaries of processes / instructions / directives between benefits and payroll. Website Information — A breakdown of what information is available on the City's internet / intranet on benefits. Access information to allow consultant review of website information and material. Other Materials — Any new employee material, pre -retirement information that is distributed to individuals or any other routine communication to individuals for major life events. This should also include a breakdown of payroll information, how contributions are established for the City and employee, basic deductions taken on benefit options employees may exercise. Analvsis — Review of the above will allow consultant to assess any inconsistencies, develop questions regarding the process by which benefit options are introduced, assessed, communicated, implemented and evaluated. ONSITE / TELEPHONIC INTERVIEWS Interviews — Based on the review of documentation and processes outline above, consultant will conduct on-site or telephonic interviews based on questions developed from the initial review. The following individuals will be interviewed: • Deirdre Dolan, HR Director • Mark Moses, Finance Director • Sylvia Gonzalez, HR Coordinator • Helena Munoz, Payroll Coordinator • Van Bach, Accounting Manager • Khelri Jhovahn, HR Representative • Lisa Goldfien, Assistant City Attorney • Beth Minka, Administrative Assistant, Police Department The questions to be covered will include both those questions common to all interviewees as well as specific questions based on roles and responsibilities and will first be provided as a draft to the HR and Finance Directors for review. Questions will be provided to each interviewee several days in advance to assure sufficient time to prepare. Estimated time for the interviews will be one hour although some follow-up discussion and documentation may be necessary. Based on the interviews, additional documentation may be sought to complete the assessment of processes followed by City personnel. Results of the interviews will be summarized along with key findings. FINAL ASSESSMENT / PRELIMINARY RECOMMENDATIONS Based on the review of documentation and the interviews, consultant will prepare a preliminary report for the HR and Finance Directors covering the major findings and the recommendations. Based on feedback, the report will be modified and formally presented to the City. Appended to this final report will be potential next steps including policy considerations, development of new processes, bargaining issues / considerations and strategic initiatives the City may wish to consider. These areas will constitute the basic elements of any Phase 2 work the City wishes the consultant to perform. John Leland Corp 1777BorelPl #400 San Mateo CA 94402 Irlllllrllrrlllllrlllllllrlllllu�rlulrlrlllulllllllll�lll PAUL D HACKLEMAN AND REBECCA HASELEU 232 STANLEY RD BURLINGAME CA 94010-2844 i Information as of October 3, 2014 Policyholder(s) Page 1 of 2 Paul D Hackleman and Rebecca Haseleu Policy number 1927 244 4101 Your Allstate agency is John Leland Corp (650) 341-0222 johnleland4nallstate.com Thank You for Being a Loyal Allstate Customer—We're Happy to Have You with Us! Here's your Allstate Indemnity Company automobile in:,urance renewal offer—we're glad to have you back, and we look forward to helping protect what's important to you for another six months. How to Contact Us Give me a call at (650) 341-0222 if you have any questions or if you see something that needs updating—coverages, limits, deductibles, drivers, vehicles. The enclosed Checklist outlines several additional convenient contact options. It also outlines what's in this package and walks you through any "next steps" you may need to take. And for 24 -hour -a -day, 7 -day -a -week service and information, just call 1-800-ALLSTATE (1-800-255-7828). We Appreciate Your Business Thank you again for choosing Allstate—where you get the peace of mind of knowing you, your family and your vehicle are protected by an established, experienced insurance provider offering service when and how you want it. You also have access to our knowledgeable, helpful agent network. We appreciate the opportunity to help you protect what you have today and help prepare you for the future. Sincerely, John Leland Corp Your Allstate Agent Agent License Number: OB89355 RA719-1 Renewal auto policy declarations Policy number: 1927 244 4101 Policy effective date: November 25, 2014 Your Allstate agency is John Leland Corp (650) 341-0222 Coverage detail for 2015 Volvo S80 Coverage Limits Automobile Liability Insurance Bodily Injury $500,000 each person $500,000 each occurrence Property Damage $100,000 each occurrence Auto Collision Insurance Actual cash value Deductible Not applicable $500 IIS 7 Nd 11 11 S Page 3 of 5 Premium $119.37 $196.54 Waiver of deductible applies Auto Comprehensive Insurance Actual cash value $500 $34.74 ' Rental Reimbursement Not purchased* Towing and Labor Costs Not purchased* Uninsured Motorists Insurance for Bodily $500,000 each person Not applicable $33.20 Injury $500,000 each accident Automobile Medical Payments Not purchased* Coordinated Medical Protection Not purchased* Lease/Loan Gap Not purchased* Repair or Replacement Cost Option Not purchased* Sound System Not purchased* Tape Not purchased* Total premium for 2015 Volvo S80 $383.85 * This coverage can provide you with valuable protection. Talk to your agent about the availability of this coverage and whether it meets your needs. VIN YV126MACOF1184070 Lienholder Volvo Car Financial Inc Rating information Your premium is determined based on certain information, including the following: • This vehicle is driven for business use, married female licensed 47 years. Allstate uses mileage information as one factor to help determine your premium amount. Important Note: The annual mileage figure applicable to this vehicle for the expiring policy period was: 9,000 - 9,499. The annual mileage figure applicable to this vehicle for the current policy period is: 10,000 -10,499. The required odometer information to calculate your annual mileage for the current policy period was not provided, was illegible, could not be obtained or the most recent odometer reading we received was less than a previous reading. If any of the information shown above is incorrect, missing or changes in the future, please contact your Allstate representative. Please keep in mind that a change in any of the information may result in an adjustment to your premium. t. PROFESSIONAL SERVICES AGREEMENT/CONTRACT COMPLETION CHECKLIST AND ROUTING SLIP Below is the process for getting your professional services agreements/contracts finalized and executed. Please attach this "Completion Checklist and pouting Slip" to the front of your contract as you circulate it for review and signatures. Please use this form for all professional services agreements/contracts (not just those requiring City Council approval). This process should occur in the order presented below. Step Responsible Description Completion Department Date 1 City Attorney Review, revise, and comment on draft L agreement. 2 Contracting Department Forward final agreement to contractor for, l their signature. Obtain at least two signed originals from contractor.�'��� 3 Contracting Department Agendize contractor -signed agreement for Council approval, if Council approval I.) necessary (as defined by City Attorney/City Ordinance*). .a 4 City Attorney Review and approve form of agreement; D Q� bonds, and insurance certificates and /� l endorsements. t 1 5 City Manager / Mayor / or Agreement executed by Council authorized (� Department Head official. �13� r✓ 6 City Clerk City Clerk attests signatures, retains original agreement and forwards copies to the (S ' contracting department. To be completed by Contracting Department: Project Manager: Deirdre Dolan Project Name: Employee Benefits Audit- Paul Hackleman Agendized for City Council Meeting of (if necessary): _N/A FPPC: X, check if required If you have questions on this process, please contact the City Attorney's Office at 485-3080. '. Council approval is required if contract is over $20,000 on a cumulative basis.