Loading...
HomeMy WebLinkAboutStaff Report 7063 City of Palo Alto (ID # 7063) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/27/2016 City of Palo Alto Page 1 Summary Title: Amendment to Contracts with Renne Sloan Holtzman Sakai LLP for Labor Negotiation Services Title: Approval of Amendment Number 5 to Contract Number S13149754 to add $85,000 for a Total Amount Not-to-Exceed $421,000 and Amendment Number 3 to Contract Number S15155809 to add $45,000 for a Total Amount Not-to-Exceed $95,000 With Renne Sloan Holtzman Sakai LLP Public Law Group for Labor Negotiations Services and to Extend Both Contract Terms to June 30, 2017 From: City Manager Lead Department: Human Resources Recommendation Staff recommends that the Council approve an amendment extending and adding $85,000 to the existing contract S13149754 with Renne Sloan Holtzman Sakai LLP (RSHS) for labor negotiations consulting services for a total amount not to exceed $421,000 through June 30, 2017; and approve a contract amendment extending and adding $45,000 to the existing contract S15155809 with Renne Sloan Holtzman Sakai LLP for contract for labor negotiations consulting services with Utilities Management Professional Association of Palo Alto (UMPAPA) for a total amount not to exceed $95,000 through June 30, 2017. Background Since 2013, the City has engaging in collective bargaining with 7 different labors groups and on 8 different occasions, as a result of which 6 labor contracts were ratified and approved by Council. To fulfill the City’s duty to bargain in good faith, various factors are taken into consideration when proposals are made and accepted. To make the most informed decision and to determine market conditions and trends, the City incorporates, with mindful consideration to the fiscal implications on the City’s approximate $100 million salary and $22 million Benefit funds, a collaborative approach with Renee Sloan Holtzman Sakai LLP in aspects of strategic planning, negotiating, conducting comprehensive classification data surveys and market research. City of Palo Alto Page 2 Such approach has proven to be successful in reaching agreements with three of the City’s larger labor groups: Service Employees International Union, Palo Alto Peace Officers Association and International Association of Fire Fighters 1319. The City is currently bargaining with two labor groups: Fire Chiefs Association (FCA) and Utilities Managers and Professionals Association of Palo Alto (UMPAPA.) With added resources, the City will continue its efforts to successfully negotiate labor agreements with the goal of reaching agreements with all 7 Palo Alto employee groups through 2018. Discussion On November 30, 2015 Council approved amendments to contracts S13149754 and S15155809 with Renne Sloan Holtzman Sakai LLP. Staff Report 6366 (attached) provides further background and contract history with the firm. Contract negotiations have been complex and the duty to bargain in good faith can result in extended timelines to complete the bargaining process. Human Resources did not anticipate that the negotiations with the City’s employee groups would be so lengthy, however, since November 30, 2015 the City has successfully completed negotiations with 4 labor groups: Palo Alto Police Manager’s Association (PAPMA,) Palo Alto Peace Officers Association (PAPOA,) International Association of Fire Fighters (IAFF) and Service Employees International Union (SEIU.) Negotiations with PAPMA, PAPOA, IAFF and SEIU are complete but the City is still actively negotiating with FCA and UMPAPA requiring amendment to contracts and the request for additional funding. During the course of bargaining, the City found it pertinent to review all available resources to successfully reach an agreement. Therefore necessary measures of extensive classification studies, labor strategy meetings and negotiating sessions occurred more often than anticipated. Resource Impact Funding for contract S13149754 is budgeted in the Human Resources Department General Fund. $40,000 of the $85,000 amendment is funded in Fiscal Year 2016. The remaining $45,000 will be funded from Fiscal Year 2017. Funding for contract S15155809 is budgeted from existing funds within the Utilities Department’s various enterprise funds. The $45,000 will come from Fiscal Year 2016 funds. Environmental Review Approval of the recommended contract amendments is not a project under the California Environmental Quality Act (CEQA) and therefore no environmental review is required. Attachments:  Attachment14.a: Attachment A: Contract S13149754 Amendment No. 5 (PDF)  Attachment14.b: Attachment B: Contract S15155809 Amendment No. 3 (PDF)  Attachment14.c: Attachment C: Staff Report 6366 (PDF) 1 of 3 Revision July 25, 2012 AMENDMENT NO. 5 TO CONTRACT NO. S13149754 BETWEEN THE CITY OF PALO ALTO AND RENNE SLOAN HOLTZMAN SAKAI, LLP This Amendment No. 5 to Contract No. S13149754 (“Contract”) is entered into June 27, 2016 by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and RENNE SLOAN HOLTZMAN SAKAI, LLP, a California Limited Liability Partnership, located at 350 Sansome Street, Suite 300, San Francisco, California, 94104, Telephone (415) 678-3800 (“CONSULTANT”). R E C I T A L S: WHEREAS, the Contract was entered into between the parties for the provision of labor negotiation services between CITY and labor unions; and WHEREAS, CITY intends to extend the term and increase the compensation From $336,000.00 by $85,000.00 to $421,000.00 for continuation of services as specified in Exhibit “A” Scope of Services; and WHEREAS, the parties wish to amend the Contract; NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: SECTION 1. Section 2 is hereby amended to read as follows: “SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through June 30, 2017 unless terminated earlier pursuant to Section 19 of this Agreement.” SECTION 2. Section 4 is hereby amended to read as follows: “SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A”, including both payment for professional services and reimbursable expenses, shall not exceed Four Hundred Twenty One Thousand Dollars ($421,000.00). The applicable rates and schedule of payment are set out in Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE,” which is attached to and made a part of this Agreement. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described in Exhibit “A”.” DocuSign Envelope ID: 0EA0B0B8-A5A2-46FA-A891-4387F80177B4 2 of 3 Revision July 25, 2012 SECTION 3. The following exhibit(s) to the Contract is/are hereby amended to read as set forth in the attachment(s) to this Amendment, which are incorporated in full by this reference: a. Exhibit “C” entitled “COMPENSATION”. SECTION 4. Except as herein modified, all other provisions of the Contract, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. IN WITNESS WHEREOF, the parties have by their duly authorized representatives executed this Amendment on the date first above written. CITY OF PALO ALTO APPROVED AS TO FORM: RENNE SLOAN HOLTZMAN SAKAI, LLP Attachments: EXHIBIT "C": COMPENSATION DocuSign Envelope ID: 0EA0B0B8-A5A2-46FA-A891-4387F80177B4 Managing Partner 3 of 3 Revision July 25, 2012 EXHIBIT “C” COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement based on the hourly rate schedule attached as Exhibit C-1. The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit “A” (“Scope of Services”) and reimbursable expenses shall not exceed $421,000.00. CONSULTANT agrees to complete all Services, including reimbursable expenses, within this amount. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: None ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expenses, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement. DocuSign Envelope ID: 0EA0B0B8-A5A2-46FA-A891-4387F80177B4 Certificate Of Completion Envelope Id: 0EA0B0B8A5A246FAA8914387F80177B4 Status: Completed Subject: Please DocuSign this document: S13149754 CONTRACT AMENDMENT 5.pdf Source Envelope: Document Pages: 3 Signatures: 1 Envelope Originator: Certificate Pages: 1 Initials: 0 Christopher Anastole AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 chris.anastole@cityofpaloalto.org IP Address: 199.33.32.254 Record Tracking Status: Original 6/6/2016 10:06:03 AM Holder: Christopher Anastole chris.anastole@cityofpaloalto.org Location: DocuSign Signer Events Signature Timestamp Charles Sakai csakai@publiclawgroup.com Managing Partner Security Level: Email, Account Authentication (None)Using IP Address: 69.170.11.34 Sent: 6/6/2016 10:09:11 AM Viewed: 6/6/2016 10:11:53 AM Signed: 6/6/2016 10:12:37 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign ID: In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Khashayar Alaee Khashayar.Alaee@CityofPaloAlto.org Sr. Management Analyst City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 6/6/2016 10:12:38 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign ID: Notary Events Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 6/6/2016 10:12:38 AM Certified Delivered Security Checked 6/6/2016 10:12:38 AM Signing Complete Security Checked 6/6/2016 10:12:38 AM Completed Security Checked 6/6/2016 10:12:38 AM Professional Services Rev. Feb. 2014 1 AMENDMENT NO. 3 TO CONTRACT NO. S15155809 BETWEEN THE CITY OF PALO ALTO AND RENNE SLOAN HOLTZMAN SAKAI, LLP This Amendment No. 3 to Contract No. S15155809 (“Contract”) is entered into 27th day of June, 2016, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and RENNE SLOAN HOLTZMAN SAKAI, LLP, a California Limited Liability Partnership, located at 350 Sansome Street, Suite 300, San Francisco, California, 94104, Telephone (415) 678-3800 (“CONSULTANT”). R E C I T A L S A. The Contract was entered into between the parties for the provision of labor consulting services for the Utilities Management and Professional Association (“UMPAPA”). B. CITY intends to extend the term and increase the compensation from $50,000.00 by $45,000.00 to $95,000.00 for continuation of services per EXHIBIT “A” Scope of Services. C. The parties wish to amend the Contract. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: SECTION 1. Section 2 is hereby amended to read as follows: “SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through June 30, 2017 unless terminated earlier pursuant to Section 19 of this Agreement.” SECTION 2. Section 4 is hereby amended to read as follows: “SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A”, including both payment for professional services and reimbursable expenses, shall not exceed Ninety Five Thousand Dollars ($95,000.00). The applicable rates and schedule of payment are set out in Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE,” which is attached to and made a part of this Agreement. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described in Exhibit “A”.” SECTION 3. The following exhibit(s) to the Contract is/are hereby amended to read as set forth in the attachment(s) to this Amendment, which are incorporated in full by this reference: DocuSign Envelope ID: 9EF7707A-FE30-4DCC-911A-0D8FB334961B Professional Services Rev. Feb. 2014 2 a. Exhibit “C” entitled “COMPENSATION”. SECTION 4. Except as herein modified, all other provisions of the Contract, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. IN WITNESS WHEREOF, the parties have by their duly authorized representatives executed this Amendment on the date first above written. CITY OF PALO ALTO APPROVED AS TO FORM: RENNE SLOAN HOLTZMAN SAKAI, LLP Attachments: EXHIBIT "C": COMPENSATION DocuSign Envelope ID: 9EF7707A-FE30-4DCC-911A-0D8FB334961B Managing Partner Professional Services Rev. Feb. 2014 3 EXHIBIT “C” COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement based on the hourly rate schedule attached as Exhibit C-1. The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit “A” (“Services”) and reimbursable expenses shall not exceed $95,000.00. CONSULTANT agrees to complete all Services, including reimbursable expenses, within this amount. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: None All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $0.00 shall be approved in advance by the CITY’s project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expenses, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement. DocuSign Envelope ID: 9EF7707A-FE30-4DCC-911A-0D8FB334961B Certificate Of Completion Envelope Id: 9EF7707AFE304DCC911A0D8FB334961B Status: Completed Subject: Please DocuSign this document: S15155809 AMENDMENT No 3.pdf Source Envelope: Document Pages: 3 Signatures: 1 Envelope Originator: Certificate Pages: 2 Initials: 0 Christopher Anastole AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 chris.anastole@cityofpaloalto.org IP Address: 199.33.32.254 Record Tracking Status: Original 6/2/2016 2:21:56 PM Holder: Christopher Anastole chris.anastole@cityofpaloalto.org Location: DocuSign Signer Events Signature Timestamp Charles Sakai csakai@publiclawgroup.com Managing Partner Security Level: Email, Account Authentication (None)Using IP Address: 75.101.52.53 Sent: 6/2/2016 2:25:45 PM Viewed: 6/3/2016 10:24:33 AM Signed: 6/3/2016 10:26:16 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign ID: In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Frank Lee Frank.Lee@CityofPaloAlto.org Senior Human Resources Administrator City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 6/2/2016 2:25:45 PM Viewed: 6/2/2016 2:39:16 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign ID: Khashayar Alaee Khashayar.Alaee@CityofPaloAlto.org Sr. Management Analyst City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 6/2/2016 2:25:45 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign ID: Carbon Copy Events Status Timestamp Khashayar Alaee Khashayar.Alaee@CityofPaloAlto.org Sr. Management Analyst City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 6/3/2016 10:26:16 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign ID: Notary Events Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 6/3/2016 10:26:16 AM Certified Delivered Security Checked 6/3/2016 10:26:16 AM Signing Complete Security Checked 6/3/2016 10:26:16 AM Completed Security Checked 6/3/2016 10:26:16 AM City of Palo Alto (ID # 6366) City Council Staff Report Report Type: Consent Calendar Meeting Date: 11/30/2015 City of Palo Alto Page 1 Summary Title: Amendment to Contract S13149754 with Renne Sloan Hotlzman Sakai LLP Title: Approval of Amendment Number Four to Contract Number S13149754 to Add $120,000 for a Total Amount Not to Exceed $336,000 and Amendment Number Two to Contract Number S15155809 to Add $25,000 for a Total Amount Not to Exceed $50,000 with Renne Sloan Holtzman Sakai LLP Public Law Group for Labor Negotiations Services and to Extend both Contract Terms to June 30, 2016 From: City Manager Lead Department: Human Resources Recommendation Staff recommends that the Council approve an amendment adding $120,000 to the existing contract S13149754 with Renne Sloan Holtzman Sakai LLP for labor negotiations consulting services with the Service Employees’ International Union (SEIU) and the public safety groups, International Association of Fire Fighters, Local 1319 (IAFF) and Palo Alto Police Officer’s Association (PAPOA) for a total amount not to exceed $336,000 through June 30, 2016; and approve a contract amendment adding $25,000 to the existing contract S15155809 with Renne Sloan Holtzman Sakai LLP for contract for labor negotiations consulting services with Utilities Management Professional Association of Palo Alto (UMPAPA), for a total amount not to exceed $50,000 through June 30, 2016. Background In April 2013, the City entered into an agreement with Renne Sloan Holtzman Sakai LLP (RSHS) to provide labor negotiation services for a focused bargaining process with the Palo Alto Police Managers’ Association (PMA) for $30,000 through December 31, 2014. Following a successful process with PMA, the City amended the contract in August 2013 through June 30, 2014 for RSHS to provide labor strategy and bargaining services for the City’s 2013-2014 negotiations with SEIU for $60,000. In May 2014, the contract with RSHS was amended a second time for additional bargaining support in the City’s negotiations with the two public safety labor groups, IAFF and PAPOA for $90,000. In June 2015, the City Council approved an additional amendment City of Palo Alto Page 2 by adding $36,000 and extending the contract through December 2015 for ongoing labor negotiations with the IAFF and PAPOA. In addition to negotiations with SEIU, PAPOA and IAFF, in August 2014, under the City Manager’s authority level, entered into a specific contract with RSHS to provide labor negotiations services for UMPAPA in the amount of $25,000. Discussion Negotiations with SEIU, UMPAPA, IAFF and PAPOA continue with the utilization of RSHS. Given RSHS’s previous negotiations and their effective and practical labor strategy advice, continuing the City’s contracts will provide important continuity in the bargaining process. RSHS is familiar with labor issues in the City and the issues on the bargaining table with Palo Alto’s labor groups. Resource Impact Costs associated with contract S13149754, for negotiations with SEIU and public safety are estimated to equal $120,000 ($60,000 for SEIU and $60,000 for both public safety groups). Amending the current contract will increase the total not to exceed to $336,000. No additional funding is need at this time, as the funding is budgeted in the Human Resources Department General Fund and Human Resources Contingency allocations. However, should the negotiation process of with any bargaining unit reach the mediation or fact finding stages, staff may have to return with additional contract amendments and funding requests to the City Council. Contract S15155809 with RSHS for Utilities Management Professional Association negotiations will also be increased. The current not to exceed amount for this contract is $25,000. Staff recommends an additional $25,000 for a new not to exceed amount of $50,000. No additional funding is needed, as this contract will be funded from existing funds within the Utilities Department’s various enterprise funds. Attachments:  Attachment A: S13149754 Contract Amendment No. 4 (PDF)  Attachment B: S15155809 Contract Amendment No. 2 (PDF)