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HomeMy WebLinkAboutPersonnel Decisions International; 2006-04-27;RATIFICATION OF AMENDMENT NO. 3 TO EXTEND THE AGREEMENT FOR HUMAN RESOURCES SERVICES PERSONNEL DECISIONS INTERNATIONAL This Ratification of Amendment No. 3 is entered into 20Q/_, but effective April 27, 2008, extending the underlying initial agreement between the Parties dated April 27, 2006 (the "Agreement") by and between the City of Carlsbad, a municipal corporation, ("City"), and Personnel Decisions International, ("Contractor") (collectively, the "Parties"). RECITALS A. On September 12, 2006 the Parties executed Amendment No. 1 to the Agreement to modify Section 5 of the Agreement to increase the not-to-exceed compensation payable for the services to be performed from $30,000 to $100,000; and B. On April 27, 2007, the parties extended the agreement for a period of one year; and C. The Agreement, as amended from time to time expired on April 27, 2008 and Contractor continued to work on the services specified therein without the benefit of an amendment. D. The Parties desire to ratify the amendment extending the term of the Agreement, and any amendments thereto, for a period of one year, ending on April 27, 2009. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and Contractor agree as follows: Amendment No. 3 to the Agreement, is hereby retroactively approved and the Agreement is hereby extended for a period of one year, ending on April 27, 2009. All other provisions of the Agreement, as may have been amended from time to time, will remain in full force and effect. 3. All requisite insurance policies to be maintained by the Contractor pursuant to the Agreement, as may have been amended from time to time, will include coverage for this Amendment. 4. The individuals executing this Amendment and the instruments referenced in it on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions of this Amendment. . . City Attorney Approved Version #04.11.01 CONTRACTOR *By: (sign here) (print name/title) (e-mail address) 'By; (sign here) \) (print name/title) (e-mail address) CITY OF CARfoSBAD, a municipal corporation of ttfejstefi' of California By: LORRAINE City Clerk i^iliii^'-?<. ->ffiit,,*,''fe- -ft .,:•- If required by City, proper notarial acknowledgment of execution by contractor must be attached. If a Corporation. Agreement must be signed by one corporate officer from each of the following two groups. "Group A. Chairman, President, or Vice-President **Group B. Secretary, Assistant Secretary, CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPROVED AS TO FORM: RONALD R. By: Deputy City Attorney REV. 11/18/2008 AMENDMENT NO. 2 TO EXTEND THE AGREEMENT FOR HUMAN RESOURCES SERVICES PERSONNEL DECISIONS INTERNATIONAL Amendment No. 2 is entered into and effective as of thg^Q___ day of , 200Q_, extending the agreement dated April 27, 2006 (the sment") by and between the City of Carlsbad, a municipal corporation, ("City"), and 'ersonnel Decisions International, ("Contractor") (collectively, the "Parties"). RECITALS A. On September 12, 2006 the parties executed Amendment No. 1 to the Agreement to modify Section 5 of the Agreement to increase the not-to-exceed compensation payable for the Services to be performed from $30,000 to $100,000; and B. The Parties desire to extend the Agreement for a period of one year; and NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and Contractor agree as follows: 1. The Agreement, as may have been amended from time to time, is hereby extended for a period of one year ending on April 27, 2008. 2. All other provisions of the Agreement shall remain in full force and effect. 3. All requisite insurance policies to be maintained by the Contractor pursuant to the Agreement, shall include coverage for this Amendment. City Attorney Approved Version #05.22.01 4. The individuals executing this Amendment and the instruments referenced on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions hereof of this Amendment. CONTRACTOR *By: ^: (sign here) fr yf (print name/title) (e-mail address) ; 3ITY OF CARLSBAD, a municipal corporation of the State of California By: City Manager or Mayor LORlfiAINE M.'WO'OD If required by City, proper notarial acknowledgment of execution by contractor must be attached. If a Corporation. Agreement must be signed by one corporate officer from each of the following two groups. *Group A. Chairman, President, or Vice-President **Group B. Secretary, Assistant Secretary, CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPROVED AS TO FORM: RONALD S-BALL, City Attorney Deputy City Attorney City Attorney Approved Version #05.22.01 SCOPE OF SERVICES PERSONNEL DECISIONS 4 N.TCftK ATI 0 M AL Via e-mail: cabbo6d.carisbacl.ca.us Cherl Abbott > Human Resources Manager City of Carlsbad 1635 Faraday Avenue Carlsbad, CA 92008-7314 Dear Chert: • Thank you for your continued Interest in PDI. We very much enjoyed the opportunity to meet with you, your colleagues from human resources, and your fine managers. Based on bur discussion and understanding of your needs, I see the following as having the greatest potential to improve your selection procedures: Selection interview design Interview training Background & experience evaluation Test battery evaluation Leadership assessment Promotablllty Index Each of these will be explained In more detail below. Also, for entry-level hiring, 1 suggest the Employment Inventory (El) as a selection tool. Interview System Design Since Interviews will be a mainstay of any selection process, they should be linked to your core competencies and conducted with the required motivation and Ctty Attorney Approved Veoton f04.01.02 10 Page 2 . skill level. Whether these are Initial Interviews to determine an eligibility list or final interviews conducted by department management, interviewers need to look for the right things and have the capability to extract important information. This begins by building the interview infrastructure to accomplish these goals. PDI would b'egin with your core competencies and develop the following additional tools: • Initial Interview questions . • Follow-up probing questions • Scoring anchors These core tools would be complemented by more general Interview Information such as legal issues, questioning technique, methods of relaxing candidates, etc. Interview Training • The other half of improving interview skill is having trained, competent interviewers. This would be accomplished through a training program conducted either by PDI or by Carlsbad staff trained by PDI. Minimally, a four-hour training program would give interviewers the rudimentary skills. Ideally, eight hours of instruction, including practice with mock applicants, would achieve the full training benefit Exerience Evaluation PDI would work with you to design Background & Experience rating forms for one or two specific job titles. The training would Include design and evaluation. Following this training, you would be equipped to use this tool in new applications without further assistance from PDI. Test Battery Evaluation For critical hires, you could add a PDI test battery evaluation to the hiring process. For a small group of finalist candidates, a battery such as the following would add significant validity to hiring decisions: • Measures of verbal reasoning • Measures of critical thinking • Indices of personality and leadership • Measures of leadership experience Some parts of the evaluation can be mailed and completed by candidates on their own. Others could be administered by the City of Carlsbad or at remote Cfty Attorney Approved Vodton #041)1.02 11 Paged locations. The results would than be mailed to PDI and evaluations sent back to the city via mail or electronically. Leadership Assessment PDI's leadership assessment uses the test battery evaluation as a starting point and adds in-depth interviews by a PDI professional and public sector simulations to the assessment process. The result is an extensive daylong process in any of PDI's 18 U.S. offices, which provides you with detailed Information regarding the candidate's capabilities. The process begins with a pro-call to determine specific, needs for the position and culminates In feedback to both the hiring manager and the candidate regarding results. Promotabilrtv Index ' PDPs Promotabiilty Index is a powerful tool for internal promotions that yields information that cannot be reliably gained in any other fashion. It allows for the inclusion of past performance into promotional decisions by articulating specific competencies and using a broad group of raters so that reliable estimates are obtained. This technique has the additional advantage of providing all candidates, whether successful or not, with critical feedback regarding how they are perceived by supervisors and peers. Employment Inventory The Employment Inventory is a simple, easily administered instrument designed to add significant predictive value to entry-level hiring decisions. The El Is a non- cognitive tool that measures, depending on the choice of scales, the following attributes: • Conscientious work behaviors • Customer service orientation • Tenure The performance scale, which measures conscientious work behaviors, identifies individuals with stronger work ethic, greater achievement orientation, increased likelihood of following rules and procedures, and absence of counter-productive behaviors. The customer service scale Identifies people with stronger Interpersonal orientation, better team performance, and a desire to hefp others. The tenure scale reduces the risk of serf-directed turnover. City Attorney Approved Vmfon #04.01.02 12 Page 4 The Employment Inventory can.be administered in a variety of ways and scores obtained through various electronic means. Following are labor cost estimates for the procedures described above. Out-of- pocket expenses such as travel, etc. would be billed at cost. • Interview system design: $8,000 • Interview training -Option A, PDI training o Full-day session: $3,500 per session (25 participants) o Half-day session: $2,000 per session (25 participants) • Background & Experience Rating Form: design and scoring training, $1,500 t Test battery evaluation: $350 per battery • Leadership assessment $2,400 per participant • Promotability index: $1 ,050 design and scoring o Additional groups: $350 Costs for the Employment Inventory are as follows: • Usage fee $150 o Candidates 1- 100: $20/candidale o Candidates 101- 500: $15/candidate o Candidates 500+: $10/candidate Thank you again for your continued interest in PDI services. I very much look forward to working with you and the City of Carlsbad. Please feel free to contact me by phone (612/337-8233) or e-mail fHarrv.Brull@Dersonneldecteton8.com) if you have further questions. Cordially, Harry Brull Senior Vice President, Public Sector Services Cc: Russ Allison, PDI Los Angeles Cty Attorney Approved Venion §04.01.02 13 AMENDMENT NO. 1 TO AGREEMENT FOR HUMAN RESOURCE SERVICES Personnel Decisions International This Amendment No. 1 is entered into and effective as of the ICX day of 200Le_, amending the agreement dated April 27, 2006, (the "Agreement") by and between the City of Carlsbad, a municipal corporation, ("City"), and Personnel Decisions International, ("Contractor") (collectively, the "Parties") for (description of project). RECITALS A. The Parties desire to modify Section 5 of the Agreement to increase the not-to-exceed compensation payable for the Services to be performed should be increased from $30,000 to $100,000; and B. The Parties agreed that the increase of $70,000 to Paragraph 5 of the Agreement brings the total not-to-exceed contract fees for the initial contract term to $100,000. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and Contractor agree as follows: 1. City will pay Contractor for all work associated with those services described in Exhibit "A" to the Agreement on a time and materials basis not-to-exceed for the initial contract term to one-hundred thousand dollars ($100,000). Contractor will provide City, on a monthly basis, copies of invoices sufficiently detailed to include hours performed, hourly rates, and related activities and costs for approval by City. 2. Contractor will complete all work described in Exhibit "A" to the Agreement by April 27, 2007. 3. All other provisions of the Agreement, as may have been amended from time to time, will remain in full force and effect. 4. All requisite insurance policies to be maintained by Contractor pursuant to the Agreement, as may have been amended from time to time, will include coverage for this Amendment. 5. The individuals executing this Amendment and the instruments referenced in it on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions of this Amendment. (Remainder of Page Intentionally Left Blank) City Attorney Approved Version #05.22.01 CONTRACTOR *By: (sign here)5, (print name/title) *t''*1 \> * (e-mail address) (print name/title) (e-mait address) CITY OF C corporation By: LORRAINE M. WOOD City Clerk '"'/i,£i»^ If required by City, proper notarial acknowledgment of execution by contractor must be attached. If a Corporation. Agreement must be signed by one corporate officer from each of the following two groups. *Group A. Chairman, President, or Vice-President *Group B. Secretary, Assistant Secretary, CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPROVED AS TO FORM: RONALD &?&$£, City Attorney Deputy City Attorney REV. 08/18/2006 EXHIBIT "A" SCOPE OF SERVICES PERSONNEL DECISIONS 4NTEKNATIONAL Via e-mail: cabbo@ci.carlsbad.ca.us Cheri Abbott Human Resources Manager City of Carlsbad 1635 Faraday Avenue Carlsbad, CA 92008-7314 Dear Cheri: Thank you for your continued interest in PDI. We very much enjoyed the opportunity to meet with you, your colleagues from human resources, and your line managers. Based on bur discussion and understanding of your needs, i see the following as having the greatest potential to improve your selection procedures: Selection interview design Interview training Background & experience evaluation Test battery evaluation Leadership assessment PromotabiJity Index Each of these will be explained in more detail below. Also, for entry-level hiring, I suggest the Employment Inventory (El) as a selection tool. interview System Design Since Interviews will be a mainstay of any selection process, they should be linked to your core competencies and conducted with the required motivation and City Attorney Approved Version #04.01.02 10 Page 2 skill level. Whether these are initial interviews to determine an eligibility list or final interviews conducted by department management, interviewers need to look for the right things and have the capability to extract important information. This begins by building the interview infrastructure to accomplish these goals. PDI would b'egin with your core competencies and develop the following additional tools: • Initial interview questions . • Follow-up probing questions • Scoring anchors These core tools would be complemented by more general interview information such as legal issues, questioning technique, methods of relaxing candidates, etc. Interview Training The other half of improving interview skill is having trained, competent interviewers. This would be accomplished through a training program conducted either by PDI or by Carlsbad staff trained by PDI. Minimally, a four-hour training program would give interviewers the rudimentary skills. Ideally, eight hours of instruction, including practice with mock applicants, would achieve the full training benefit. Background & Experience Evaluation PDI would work with you to design Background & Experience rating forms for one or two specific job titles. The training would include design and evaluation. Following this training, you would be equipped to use this tool in new applications without further assistance from PDI. Test Battery Evaluation For critical hires, you could add a PDI test battery evaluation to the hiring process. For a small group of finalist candidates, a battery such as the following would add significant validity to hiring decisions: • Measures of verbal reasoning • Measures of critical thinking • Indices of personality and leadership • Measures of leadership experience Some parts of the evaluation can be mailed and completed by candidates on their own. Others could be administered by the City of Carlsbad or at remote Cfty Attorney Approved Version #04.01.02 11 Page3 locations. The results would then be mailed to PDI and evaluations sent back to the city via mail or electronically. Leadership Assessment PDI's leadership assessment uses the test battery evaluation as a starting point and adds in-depth interviews by a PDI professional and public sector simulations to the assessment process. The result is an extensive daylong process in any of PDI's 18 U.S. offices, which provides you with detailed information regarding the candidate's capabilities. The process begins with a pre-call to determine specific needs for the position and culminates in feedback to both the hiring manager and the candidate regarding results. Promotabiiitv Index PDI's Promotability index is a powerful tool for internal promotions that yields information that cannot be reliably gained in any other fashion. It allows for the inclusion of past performance into promotional decisions by articulating specific competencies and using a broad group of raters so that reliable estimates are obtained. This technique has the additional advantage of providing all candidates, whether successful or not, with critical feedback regarding how they are perceived by supervisors and peers. Employment Inventory The Employment inventory is a simple, easily administered instrument designed to add significant predictive value to entry-level hiring decisions. The El Is a non- cognitive tool that measures, depending on the choice of scales, the following attributes: • Conscientious work behaviors • Customer service orientation • Tenure The performance scale, which measures conscientious work behaviors, identifies individuals with stronger work ethic, greater achievement orientation, increased likelihood of following rules and procedures, and absence of counter-productive behaviors. The customer service scale identifies people with stronger interpersonal orientation, better team performance, and a desire to help others. The tenure scale reduces the risk of self-directed turnover. City Attorney Approved Version #04.01.02 12 Page 4 The Employment Inventory can.be administered in a variety of ways and scores obtained through various electronic means. Following are labor cost estimates for the procedures described above. Out-of- pocket expenses such as travel, etc. would be billed at cost. • Interview system design: $8,000 • Interview training -Option A, PDI training o Full-day session: $3,500 per session (25 participants) o Half-day session: $2,000 per session (25 participants) • Background & Experience Rating Form: design and scoring training, $1,500 t Test battery evaluation: $350 per battery t Leadership assessment: $2,400 per participant • Promotability Index: $1,050 design and scoring o Additional groups: $350 Costs for the Employment inventory are as follows: • Usage fee $150 o Candidates 1-100: $20/candidate o Candidates 101 -500: $15/candidate o Candidates 500+: $10/candidate Thank you again for your continued interest in PDI services. I very much look forward to working with you and the City of Carlsbad. Please feel free to contact me by phone (612/337-8233) or e-mail (Harrv.Brull @ Dersonneldecistons.com) if you have further questions. Cordially, Harry Bruli Senior Vice President, Public Sector Services Cc: Russ Allison, PDI Los Angeles City Attorney Approved Version M4.01.02 13 AGREEMENT FOR HUMAN RESOURCE SERVICES Personnel Decisions International IK THIS AGREEMENT is made and entered into as of the 7") day of 1A , 2006 , by and between the CITY OF CARLSBAD, a municipal corporation, ("City"), and Personnel Decisions International Corporation, a Minnesota Corporation, ("Contractor"). RECITALS A. City requires the professional services of a consulting company that is experienced in public sector recruiting, selection and on-boarding services. B. Contractor has the necessary experience in providing professional services and advice related to public sector recruiting, selection and on-boarding. C. Selection of Contractor is expected to achieve the desired results in an expedited fashion. D. Contractor has submitted a proposal to City and has affirmed its willingness and ability to perform such work. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and Contractor agree as follows: 1. SCOPE OF WORK City retains Contractor to perform, and Contractor agrees to render, those services (the "Services") that are defined in attached Exhibit "A", which is incorporated by this reference in accordance with this Agreement's terms and conditions. v 2. STANDARD OF PERFORMANCE While performing the Services, Contractor will exercise the reasonable professional care and skill customarily exercised by reputable members of Contractor's profession practicing in the Metropolitan Southern California Area, and will use reasonable diligence and best judgment while exercising its professional skill and expertise. 3. TERM The effective term of this Agreement will be for a period of one year from the date first above written. The City Manager may, upon the written agreement of both parties, amend the Agreement to extend it for two additional one year periods or parts thereof in an amount not to exceed thirty thousand dollars ($30,000) per Agreement year. Extensions will be based upon a satisfactory review of Contractor's performance, City needs, and appropriation of funds by the City Council. The parties will prepare a written amendment indicating the effective date and length of the extended Agreement. 4. TIME IS OF THE ESSENCE Time is of the essence for each and every provision of this Agreement, and any amendment thereto. City Attorney Approved Version #04.01.02 5. COMPENSATION The total fee payable for the Services to be performed during the initial Agreement term will be thirty thousand dollars ($30,000). No other compensation for the Services will be allowed except for items covered by subsequent amendments to this Agreement. The City reserves the right to withhold a ten percent (10%) retention until City has accepted the work and/or Services specified in Exhibit "A". Incremental payments, if applicable, should be made as outlined in attached Exhibit "A". 6. STATUS OF CONTRACTOR Contractor will perform the Services in Contractor's own way as an independent contractor and in pursuit of Contractor's independent calling, and not as an employee of City. Contractor will be under control of City only as to the result to be accomplished, but will consult with City as necessary. The persons used by Contractor to provide services under this Agreement will not be considered employees of City for any purposes. The payment made to Contractor pursuant to the Agreement will be the full and complete compensation to which Contractor is entitled. City will not make any federal or state tax withholdings on behalf of Contractor or its agents, employees or subcontractors. City will not be required to pay any workers' compensation insurance or unemployment contributions on behalf of Contractor or its employees or subcontractors. Contractor agrees to indemnify City within thirty (30) days for any tax, retirement contribution, social security, overtime payment, unemployment payment or workers' compensation payment which City may be required to make on behalf of Contractor or any agent, employee, or subcontractor of Contractor for work done under this Agreement. At the City's election, City may deduct the indemnification amount from any balance owing to Contractor. 7. SUBCONTRACTING Contractor will not subcontract any portion of the Services without prior written approval of City. Notwithstanding the foregoing, PDI may subcontract its test/instrument processing to Questar and/or DSI, and hosting obligations to VeriCenter under this Agreement, provided that (i) PDI remains primarily responsible for the performance of the Services; and (ii) PDI has executed agreements with such third party including protections no less stringent than those included in this Agreement. PDI shall be responsible for the work and activities of each of its subcontractors, including compliance with the terms of this Agreement. If Contractor subcontracts any of the Services, Contractor will be fully responsible to the City for the acts and omissions of Services, Contractor will be fully responsible to City for the acts and omissions of Contractor's subcontractor, and of the persons either directly or indirectly employed by the subcontractor, and of the persons either directly or indirectly employed by the subcontractor, as Contractor is for the acts and omissions of person directly employed by Contractor. Nothing contained in this Agreement will create any contractual relationship between any subcontractor of Contractor and City. Contractor will be responsible for payment of subcontractors. Contractor will bind every subcontractor and City Attorney Approved Version #04.01.02 every subcontractor of a subcontractor by the terms of this Agreement applicable to Contractor's work unless specifically noted to the contrary in the subcontract and approved in writing by City. 8. OTHER CONTRACTORS The City reserves the right to employ other Contractors in connection with the Services. 9. INDEMNIFICATION Contractor agrees to indemnify and hold harmless the City and its officers, officials, employees and volunteers from and against all claims, damages, losses and expenses including attorneys fees arising out of the performance of the work described herein caused in whole or in part by any willful misconduct or negligent act or omission of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable. The parties expressly agree that any payment, attorney's fee, costs or expense City incurs or makes to or on behalf of an injured employee under the City's self- administered workers' compensation is included as a loss, expense or cost for the purposes of this section, and that this section will survive the expiration or early termination of this Agreement. 10. INSURANCE Contractor will obtain and maintain for the duration of the Agreement and any and all amendments, insurance against claims for injuries to persons or damage to property which may arise out of or in connection with performance of the services by Contractor or Contractor's agents, representatives, employees or subcontractors. The insurance will be obtained from an insurance carrier admitted and authorized to do business in the State of California. The insurance carrier is required to have a current Best's Key Rating of not less than "A-:V". 10.1 Coverage and Limits. Contractor will maintain the types of coverages and minimum limits indicated below, unless City Attorney or City Manager approves a lower amount. These minimum amounts of coverage will not constitute any limitations or cap on Contractor's indemnification obligations under this Agreement. City, its officers, agents and employees make no representation that the limits of the insurance specified to be carried by Contractor pursuant to this Agreement are adequate to protect Contractor. If Contractor believes that any required insurance coverage is inadequate, Contractor will obtain such additional insurance coverage, as Contractor deems adequate, at Contractor's sole expense. 10.1.1 Commercial General Liability Insurance. $1.000.000 combined single-limit per occurrence for bodily injury, personal injury and property damage. If the submitted policies contain aggregate limits, general aggregate limits will apply separately to the work under this Agreement or the general aggregate will be twice the required per occurrence limit. City Attorney Approved Version #04.01.02 10.1.2 Automobile Liability (if the use of an automobile is involved for Contractor's work for City). $1,000,000 combined single-limit per accident for bodily injury and property damage. 10.1.3 Workers' Compensation and Employer's Liability. Workers' Compensation limits as required by the California Labor Code and Employer's Liability limits of $1,000,000 per accident for bodily injury. Workers' Compensation and Employer's Liability insurance will not be required if Contractor has no employees and provides, to City's satisfaction, a declaration stating this. 10.1.4 Professional Liability. Errors and omissions liability appropriate to Contractor's profession with limits of not less than $1,000,000 per claim. Coverage must be maintained for a period of five years following the date of completion of the work. 10.2. Additional Provisions. Contractor will ensure that the policies of insurance required under this Agreement contain, or are endorsed to contain, the following provisions: 10.2.1 The City will be named as an additional insured on General Liability. 10.2.2 Contractor will obtain occurrence coverage, excluding Professional Liability, which will be written as claims-made coverage. 10.2.3 This insurance will be in force during the life of the Agreement and any extensions of it and will not be canceled without thirty (30) days prior written notice to City sent by certified mail pursuant to the Notice provisions of this Agreement. 10.3 Providing Certificates of Insurance and Endorsements. Prior to City's execution of this Agreement, Contractor will furnish certificates of insurance and endorsements to City. 10.4 Failure to Maintain Coverage. If Contractor fails to maintain any of these insurance coverages, then City will have the option to declare Contractor in breach, or may purchase replacement insurance or pay the premiums that are due on existing policies in order to maintain the required coverage. Contractor is responsible for any payments made by City to obtain or maintain insurance and City may collect these payments from Contractor or deduct the amount paid from any sums due Contractor under this Agreement. 11. BUSINESS LICENSE Contractor will obtain and maintain a City of Carlsbad Business License for the term of the Agreement, as may be amended from time-to-time. City Attorney Approved Version #04.01.02 12. ACCOUNTING RECORDS Contractor will maintain complete and accurate records with respect to costs incurred under this Agreement. All records will be clearly identifiable. Contractor will allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of records and any other documents created pursuant to this Agreement. Contractor will allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 13. OWNERSHIP OF DOCUMENTS The City shall have and retain ownership of all reports prepared by Contractor for the City under the terms of this Agreement. Such reports shall be considered works for hire under the Copyright Act, as amended from time to time. To the extent that such report(s) formats are based on original, proprietary material owned by Contractor prior to the commencement of this Agreement ("Contractor-Owned Materials"), City acknowledges that such proprietary materials shall continue to be owned by Contractor. In the event Contractor customizes the Contractor-Owned Materials to meet the unique needs of the city, the City acknowledges that Contractor will retain ownership of such derivative works. Notwithstanding the prior sentence, City shall acquire a royalty-free, perpetual license to the use of such proprietary materials consistent with the intent of this Agreement. The City will not allow the materials to be disclosed, copied by, distributed, conveyed or otherwise transferred to any other person or entity without prior written consent of Contractor, which shall not be reasonably withheld. All material and information supplied by the City to Contractor during the performance of this Agreement shall remain solely the City's property, and Contractor shall have no rights to such material or information whatsoever. 14. NOTICES The name of the persons who are authorized to give written notices or to receive written notice on behalf of City and on behalf of Contractor under this Agreement. For City: Cheri Abott Human Resources Manager Human Resources Department City of Carlsbad 1635 Faraday Avenue Carlsbad, CA 92008 760 602 2496 For Contractor: Harold P. Brull Senior Vice President Personnel Decisions International 45 South 7th Street Minneapolis, MN 55402 Phone No. 6123378233 Each party will notify the other immediately of any changes of address that would require any notice or delivery to be directed to another address. 16. CONFLICT OF INTEREST City Attorney Approved Version #04.01.02 City will evaluate Contractor's duties pursuant to this Agreement to determine whether disclosure under the Political Reform Act and City's Conflict of Interest Code is required of Contractor or any of Contractor's employees, agents, or subcontractors. Should it be determined that disclosure is required, Contractor or Contractor's affected employees, agents, or subcontractors will complete and file with the City Clerk those schedules specified by City and contained in the Statement of Economic Interests Form 700. Contractor, for Contractor and on behalf of Contractor's agents, employees, subcontractors and consultants warrants that by execution of this Agreement, that they have no interest, present or contemplated, in the projects affected by this Agreement. Contractor further warrants that neither Contractor, nor Contractor's agents, employees, subcontractors and consultants have any ancillary real property, business interests or income that will be affected by this Agreement or, alternatively, that Contractor will file with the City an affidavit disclosing this interest. 17. GENERAL COMPLIANCE WITH LAWS Contractor will keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by Contractor, or in any way affect the performance of the Services by Contractor. Contractor will at all times observe and comply with these laws, ordinances, and regulations and will be responsible for the compliance of Contractor's services with all applicable laws, ordinances and regulations. Contractor will be aware of the requirements of the Immigration Reform and Control Act of 1986 and will comply with those requirements, including, but not limited to, verifying the eligibility for employment of all agents, employees, subcontractors and consultants that the services required by this Agreement. 18. DISCRIMINATION AND HARASSMENT PROHIBITED Contractor will comply with all applicable local, state and federal laws and regulations prohibiting discrimination and harassment. 19. DISPUTE RESOLUTION If a dispute should arise regarding the performance of the Services the following procedure will be used to resolve any questions of fact or interpretation not otherwise settled by agreement between the parties. Representatives of Contractor or City will reduce such questions, and their respective views, to writing. A copy of such documented dispute will be forwarded to both parties involved along with recommended methods of resolution, which would be of benefit to both parties. The representative receiving the letter will reply to the letter along with a recommended method of resolution within ten (10) business days. City Attorney Approved Version #04.01.02 20. TERMINATION In the event of the Contractor's failure to prosecute, deliver, or perform the Services, City may terminate this Agreement for nonperformance by notifying Contractor by certified mail of the termination. If City decides to abandon or indefinitely postpone the work or services contemplated by this Agreement, City may terminate this Agreement upon written notice to Contractor. Upon notification of termination, Contractor has five (5) business days to deliver any documents owned by City and all work in progress to City address contained in this Agreement. City will make a determination of fact based upon the work product delivered to City and of the percentage of work that Contractor has performed which is usable and of worth to City in having the Agreement completed. Based upon that finding City will determine the final payment of the Agreement. Either party upon tendering thirty (30) days written notice to the other party may terminate this Agreement. In this event and upon request of City, Contractor will assemble the work product and put it in order for proper filing and closing and deliver it to City. Contractor will be paid for work performed to the termination date; however, the total will not exceed the lump sum fee payable under this Agreement. 21. COVENANTS AGAINST CONTINGENT FEES Contractor warrants that Contractor has not employed or retained any company or person, other than a bona fide employee working for Contractor, to solicit or secure this Agreement, and that Contractor has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or making of this Agreement. For breach or violation of this warranty, City will have the right to annul this Agreement without liability, or, in its discretion, to deduct from the Agreement price or consideration, or otherwise recover, the full amount of the fee, commission, percentage, brokerage fees, gift, or contingent fee. 22. CLAIMS AND LAWSUITS By signing this Agreement, Contractor agrees that any Agreement claim submitted to City must be asserted as part of the Agreement process as set forth in this Agreement and not in anticipation of litigation or in conjunction with litigation. Contractor acknowledges that if a false claim is submitted to City, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that California Government Code sections 12650 et seq.. the False Claims Act applies to this Agreement and, provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of information. If City seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorney's fees. Contractor acknowledges that the filing of a false claim may subject Contractor to an administrative debarment proceeding as the result of which Contractor may be prevented to act as a Contractor on any public work or improvement for a period of up to five (5) years. Contractor acknowledges debarment by another jurisdiction is grounds for City to terminate this Agreement. City Attorney Approved Version #04.01.02 23. JURISDICTIONS AND VENUE Any action at law or in equity brought by either of the parties for the purpose of enforcing a right or rights provided for by this Agreement will be tried in a court of competent jurisdiction in the County of San Diego, State of California, and the parties waive all provisions of law providing for a change of venue in these proceedings to any other county. 24. SUCCESSORS AND ASSIGNS It is mutually understood and agreed that this Agreement will be binding upon City and Contractor and their respective successors. Neither party may sell, assign, or transfer this Agreement, or the rights accorded thereunder, without the written consent of the other party, except in the event of the assignor's merger, consolidation, spin-off, split- off, or acquisition. In that event, assignment will be restricted to any survivor, subsidiary or successor.. 25. ENTIRE AGREEMENT This Agreement, together with any other written document referred to or contemplated by it, along with the purchase order for this Agreement and its provisions, embody the entire Agreement and understanding between the parties relating to the subject matter of it. In case of conflict, the terms of the Agreement supersede the purchase order. Neither this Agreement nor any of its provisions may be amended, modified, waived or discharged except in a writing signed by both parties. 26. AUTHORITY The individuals executing this Agreement and the instruments referenced in it on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions of this Agreement. CONTRACTOR ^CITY OF CARLSBAD, a municipal corporation of the State of California ^S>^Z*^7 / ^7S' / 'By: (sign here) . i <£&£ City Manager er Mayor (print name/title) ATTEST. City Attorney Approved Version #04.01.02 8 If required by City, proper notarial acknowledgment of execution by contractor must be attached. If a Corporation. Agreement must be signed by one corporate officer from each of the following two groups. 'Group A. "Group B. Chairman, Secretary, President, or Assistant Secretary, Vice-President CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPROVED,^ TO FORM: ^7., City Attorney W^>BVL City Attorney Approved Version #04.01.02 EXHIBIT "A" SCOPE OF SERVICES PDI PERSONNEL DECISIONS INTERNATIONAL Via e-mail: cabbo@ci.carlsbad.ca.us Cheri Abbott Human Resources Manager City of Carlsbad 1635 Faraday Avenue Carlsbad, CA 92008-7314 Dear Cheri: Thank you for your continued interest in PDI. We very much enjoyed the opportunity to meet with you, your colleagues from human resources, and your line managers. Based on our discussion and understanding of your needs, i see the following as having the greatest potential to improve your selection procedures: Selection interview design Interview training Background & experience evaluation Test battery evaluation Leadership assessment Promotability Index Each of these will be explained in more detail below. Also, for entry-level hiring, I suggest the Employment Inventory (El) as a selection tool. Interview System Design Since interviews will be a mainstay of any selection process, they should be linked to your core competencies and conducted with the required motivation and 10 City Attorney Approved Version #04.01.02 Page 2 skill level. Whether these are initial interviews to determine an eligibility list or final interviews conducted by department management, interviewers need to look for the right things and have the capability to extract important information. This begins by building the interview infrastructure to accomplish these goals. PDl would begin with your core competencies and develop the following additional tools: • Initial interview questions • Follow-up probing questions • Scoring anchors These core tools would be complemented by more general interview information such as legal issues, questioning technique, methods of relaxing candidates, etc. Interview Training The other half of improving interview skill is having trained, competent interviewers. This would be accomplished through a training program conducted either by PDl or by Carlsbad staff trained by PDl. Minimally, a four-hour training program would give interviewers the rudimentary skills. Ideally, eight hours of instruction, including practice with mock applicants, would achieve the full training benefit. Background & Experience Evaluation PDl would work with you to design Background & Experience rating forms for one or two specific job titles. The training would include design and evaluation. Following this training, you would be equipped to use this tool in new applications without further assistance from PDl. Test Battery Evaluation For critical hires, you could add a PDl test battery evaluation to the hiring process. For a small group of finalist candidates, a battery such as the following would add significant validity to hiring decisions: • Measures of verbal reasoning • Measures of critical thinking • Indices of personality and leadership • Measures of leadership experience Some parts of the evaluation can be mailed and completed by candidates on their own. Others could be administered by the City of Carlsbad or at remote City Attorney Approved Version #04.01.02 11 Pages locations. The results would then be mailed to PDI and evaluations sent back to the city via mail or electronically. Leadership Assessment PDI's leadership assessment uses the test battery evaluation as a starting point and adds in-depth interviews by a PDI professional and public sector simulations to the assessment process. The result is an extensive daylong process in any of PDI's 18 U.S. offices, which provides you with detailed information regarding the candidate's capabilities. The process begins with a pre-call to determine specific needs for the position and culminates in feedback to both the hiring manager and the candidate regarding results. Promotabilitv Index PDI's Promotability Index is a powerful tool for internal promotions that yields information that cannot be reliably gained in any other fashion. It allows for the inclusion of past performance into promotional decisions by articulating specific competencies and using a broad group of raters so that reliable estimates are obtained. This technique has the additional advantage of providing all candidates, whether successful or not, with critical feedback regarding how they are perceived by supervisors and peers. Employment Inventory The Employment Inventory is a simple, easily administered instrument designed to add significant predictive value to entry-level hiring decisions. The El is a non- cognitive tool that measures, depending on the choice of scales, the following attributes: • Conscientious work behaviors • Customer service orientation • Tenure The performance scale, which measures conscientious work behaviors, identifies individuals with stronger work ethic, greater achievement orientation, increased likelihood of following rules and procedures, and absence of counter-productive behaviors. The customer service scale identifies people with stronger interpersonal orientation, better team performance, and a desire to help others. The tenure scale reduces the risk of self-directed turnover. City Attorney Approved Version #04.01.02 12 Page 4 The Employment Inventory can.be administered in a variety of ways and scores obtained through various electronic means. Following are labor cost estimates for the procedures described above. Out-of- pocket expenses such as travel, etc. would be billed at cost. • Interview system design: $8,000 • Interview training - Option A, PDI training o Full-day session: $3,500 per session (25 participants) o Half-day session: $2,000 per session (25 participants) • Background & Experience Rating Form: design and scoring training, $1,500 • Test battery evaluation: $350 per battery t Leadership assessment: $2,400 per participant • Promotability Index: $1,050 design and scoring o Additional groups: $350 Costs for the Employment Inventory are as follows: • Usage fee $150 o Candidates 1-100: $20/candidate o Candidates 101-500: $15/candidate o Candidates 500+: $10/candidate Thank you again for your continued interest in PDI services. I very much look forward to working with you and the City of Carlsbad. Please feel free to contact me by phone (612/337-8233) or e-mail (Harrv.Brull@personneldecisions.com) if you have further questions. Cordially, Harry Brull Senior Vice President, Public Sector Services Cc: Russ Allison, PDI Los Angeles City Attorney Approved Version #04.01.02 13