CPS HR Board of Directors

Board Meeting Agenda

Friday, June 12, 2020

9:00 AM PST

CPS HR Consulting 2450 Del Paso Road, Suite 220 Sacramento, CA 95834 t: 916.263.3600 f: 916.263.3613 www.cpshr.us

By request, alternate agenda and agenda document formats are available to persons with a disability as required by Section 202 of the 1990 Americans with Disabilities Act.

To arrange an alternative agenda format or to arrange aid or services to accommodate

persons with a disability to participate in a public meeting, contact the Executive Office at (916) 263-3600 extension 3379.

Any person not on this Agenda who wishes to address the Board of Directors must sign in with

the Board’s Executive Assistant. Any person requesting a disability-related modification or

accommodation, including auxiliary aids, or services who require these aids or services in order to participate in the public meeting should contact Dana Henderson, Executive Assistant, CPS HR Consulting, 2450 Del Paso Road, Suite 220, Sacramento, CA, 95834, (916) 263-3600. Requests must be made at least 3 business days before the scheduled meeting.

CPS HR Consulting Board Meeting Teleconference Locations June 12, 2020 Closed Session 9:00AM PST (12:00 PM EST) Open Session 10:00AM PST (1:00 PM EST)

Click on the “Join Microsoft Teams Meeting” link in your meeting invitation or phone in to the toll-free number. Locations CPS HR Consulting, 2450 Del Paso Road, Suite 220, Sacramento, CA 95834

Hayward Unified School District, HR Dept., 24411 Amador Street, Hayward, CA 94544

Pinellas County, HR Dept., 400 S. Fort Harrison, Clearwater, FL 33756

Mecklenburg County, 700 E. 4th Street, Suite 220, Charlotte, NC 28202

City of Plano, 1520 Avenue K, Suite 300, Plano, TX 75074

City of Anaheim, 201 S. Anaheim Blvd., Suite 501, Anaheim, CA 92805

City of , 495 S. Main Street, 1st Floor, Las Vegas, NV 89101

Sacramento County, 700 H Street, Room 5720, Sacramento, CA 95814

The CPS Board Year Revised March 22, 2019

The following calendar outlines “routine” agenda items that are addressed throughout the year. Other items are added as required based on business/governance requirements.

Every Meeting  Minutes from previous meeting – for approval  Budget and Cash Flow Update – for information  Performance Dashboard – for information (variances only)  Investment Update – for information (as required by law)  Approve Class/Pay Plan (to meet CalPERS requirements)  Return to Board Funds Update – for information  Employee Recognition – for information (recognize the individual, and highlight the accomplishment)  Board Development/Emerging Trends (30-60 minutes) o Organizational Showcase o Current trends or client success stories November  Review CPS HR cash minimum every two years (last reviewed in Nov 18; starts in Nov 2020) – for info  Annual Financial Audit Report – discussion/approval  Salary market survey results/class and pay plan implementation – discussion/approval  Meeting dates/locations for following year’s Board Meetings – for approval  Disclosure of reimbursement for special districts – for information (no report out)  Board Member Meeting Attendance Cost Summary – annual report – for information (no report out)  Board Development Activity (new in 2011)

March  Board Offsite Meeting for Strategic Planning and Board Integration Activities  Review By-Laws & Ground Rules annually (eff. 3/2012)  Review Board Orientation (Eff. 2016)  Review Return to Board Funds availability and amount for next FY (Friday agenda)  Senior Leader/Board Dialogue  Board report out of CEO-level interviews on business trends (eff. 3/2014)

June  Next Fiscal Year Budget and Strategic Plan – for approval  Election of Board Officers (every 2 years) – upcoming in 2018, 2020, etc. or as needed – for approval  Annual appointment of Board Development Committee, Executive Committee and Financial Audit Committee members  Investment Policy for Next FY – for approval  Delegation of Authority/Authority to Contract (approval) if needed  FY Strategic Plan and Accomplishments – for info and discussion (variances only)  Annual Diversity Report – for information (year to year performance)  Client Satisfaction Survey Data (for information)  Emergency Succession Plan – Review and update for approval by the Board every two years starting in 2018.  Executive Performance Plan Accomplishments – discussion/closed session  Executive Performance Plan for Next FY – discussion/acceptance/closed session

As Needed  Information on policy changes, internal operations, investments, special projects and Board subcommittee reports.  CEO Report – info and discussion on an as-needed basis.  Insurance/Benefits-for information at the beginning of each calendar year; sent out as separate report

CPS HR Board Committee Appointments

Board Executive Subcommittee (standing committee) July 1, 2019 – June 30, 2020

• David Devine, Board Chair, Sacramento County • Shanté Akafia, Board Vice Chair/Secretary, City of Plano • Paula Herman, Member-At-Large, Mecklenburg County

Board Development Subcommittee (standing committee) July 1, 2019 – June 30, 2020

• Holly Schoenherr, Pinellas County • Fernando Yañez, Hayward USD • Dan Tarwater, City of Las Vegas

Board Financial Audit Subcommittee (ad hoc committee) 2019 members:

• Fernando Yañez, Hayward USD • Holly Schoenherr, Pinellas County

Revised 6/24/19

CPS HR Consulting – Agenda Board of Directors Meeting Friday, June 12, 2020 – 9:00 a.m. PST

CPS HR Consulting Grand Canyon Conference Room 2450 Del Paso Road, Suite 220 Sacramento, CA 95834

Action may be taken on any item on the Agenda

Board of Directors - Closed Session - 9:00 AM PST

1. PUBLIC EMPLOYEE PERFORMANCE EVALUATION Title: Chief Executive Officer

CONFERENCE WITH LABOR NEGOTIATOR (Government Code §54957.6) Agency designated representative: Board Chair Unrepresented employee: Chief Executive Officer

Return to Open Session

• Report out from Closed Session

Open Session Board of Directors Business Meeting

Introduction of Board Members and Staff Oath of Office – Craig Barnes, City of Plano, Board Alternate

I. Action Items 1. Approval of Minutes - November 1, 2019 meeting Attachment 1 2. Approval of Minutes - February 4, 2020 Board Dev. Comm. Mtg. Attachment 2 3. Nomination and election of Board Chair, Vice Chair/Secretary & Board Attachment 3 Sub-Committee Members 4. Approval of FY21 Budget & Strategic Plan (under separate cover) Attachment 4 5. Approval of Investment Policy for FY21 Attachment 5 6. Approval of Class/Pay Plan (to meet CalPERS requirements) Attachment 6

II. Information Only 7. FY20 Budget/Cash Flow Update Attachment 7 8. CPS HR FY20 Performance Dashboard Attachment 8 9. CPS HR FY20 Investment Update Attachment 9 10. Review FY20 Strategic Plan & Accomplishments Attachment 10

CPS HR Consulting – Agenda Board of Directors Meeting Friday, June 12, 2020 – 9:00 a.m. PST

CPS HR Consulting Grand Canyon Conference Room 2450 Del Paso Road, Suite 220 Sacramento, CA 95834

Board of Directors Meeting Continued –

Informational Items Only (Con’t)

11. Annual Diversity Report Attachment 11 12. Review of Client Satisfaction Survey Data Attachment 12 13. Return to Board Funds update Attachment 13 14. Board Recruitment Discussion Attachment 14

Public Comment on Matters Not on the Agenda

Attachment 1

Minutes of Board of Directors Meeting November 1, 2019

The Board of Directors of CPS HR Consulting met on Friday, November 1, 2019, in the Grand Canyon Room at CPS HR Consulting, 2450 Del Paso Road, Suite 220, Sacramento, CA 95834.

Board members attending: Dave Devine, County of Sacramento (Chair) Linda Andal, City of Anaheim Paula Herman, County of Mecklenburg Holly Schoenherr, County of Pinellas Fernando Yañez, Hayward Unified School District Vince Zamora, City of Las Vegas (Alternate)

Staff attending: Jerry Greenwell, CEO Melissa Asher Dana Henderson Jeff Hoye Sandy MacDonald-Hopp Vicki Quintero Brashear Regina Romeo David Powell Geralyn Gorshing

Others attending: Jeff Mitchell, KMTG, Legal Counsel Pam Freeman, Gilbert Associates, Inc. Kevin Wong, Gilbert Associates, Inc.

Board Members not attending: Shante Akafia, City of Plano

Attachment 1– Page 1

Attachment 1

Open Session for Board Meeting

Dave Devine, Board Chair, called the meeting to order at 9:31am and welcomed all attendees.

All attendees introduced themselves.

Action Items

Attachment #1 – Approval of CPS HR Audited Financial Statements

Pam Freeman and Kevin Wong with Gilbert Associates, Inc., presented and summarized their Independent Auditor’s Report findings and the Required Communications document, and the Audited Financial Statements. The Independent Auditor’s Report and other supporting documents were provided to the Board as a separate document along with the November 1, 2019 agenda.

The Board of Directors of CPS HR Consulting approved the audited financial statements for FY2018-2019 and agreed to disband the ad-hoc Finance Audit Subcommittee, to be reconstituted for the FY2019-2020 financial audit.

Motion: Herman, Mecklenburg County Second: Yañez, Hayward USD Vote: City of Anaheim Aye Pinellas County Aye City of Las Vegas Aye Sacramento County Aye Hayward USD Aye Mecklenburg County Aye

Resolution # 19-11

Attachment #2 – Approval of Minutes from June 21, 2019 Board Meeting

There were no changes to the minutes of the previous Board Meeting. The Board of Directors of CPS HR Consulting approved the minutes from the June 21, 2019 Board Meeting.

Motion: Schoenherr, Pinellas County Second: Zamora, City of Las Vegas Vote: City of Anaheim Aye Pinellas County Aye City of Las Vegas Aye Sacramento County Aye

Attachment 1– Page 2

Attachment 1

Hayward USD Aye Mecklenburg County Aye

Attachment #3 – Approval of the Salary Market Survey/Classification and Pay Plans

Regina Romero introduced the item stating that we go out to the market to conduct a salary survey. She also reviewed the process and requirements for salary adjustments.

Paula Herman thinks it would be helpful going forward if we add the number of employees that will be impacted. Holly Schoenherr agreed and asked in the future that we add the number of employees to the spreadsheet as well as the overall fiscal impact.

The Board of Directors of CPS HR Consulting approved the Salary Market Survey and Classification and Pay Plan.

Motion: Yañez, Hayward USD Second: Andal, City of Anaheim Vote: City of Anaheim Aye Pinellas County Aye City of Las Vegas Aye Sacramento County Aye Hayward USD Aye Mecklenburg County Aye

Resolution # 19-12

Attachment #4 – Approval of 2020 Proposed Board Meeting Dates & Locations

The CPS HR proposed Board Meeting Schedule for 2020 was reviewed. Holly Schoenherr, Pinellas County, and Vince Zamora, City of Las Vegas, have offered to host the March 2020 meeting. The location will be determined pending a cost comparison. The March Meeting dates have been changed to March 11 – 13, 2020. The November Board Meeting was moved from November 6, 2020 to November 13, 2020 due to scheduling conflicts. The June date will not change.

The Board of Directors of CPS HR Consulting approved the 2020 Board Meeting Dates and Locations as listed below:

March 11-13, 2020 TBD June 12, 2020 in Sacramento November 13, 2020 in Sacramento

Motion: Andal, City of Anaheim

Attachment 1– Page 3

Attachment 1

Second: Yañez, Hayward USD Vote: City of Anaheim Aye Pinellas County Aye City of Las Vegas Aye Sacramento County Aye Hayward USD Aye Mecklenburg County Aye

Resolution # 19-13

At 10:14am, Dave Devine left for an appointment and turned over Chair duties to Paula Herman.

For Information Only

Attachment #5 – Board Recruitment Update

Jerry Greenwell discussed the board recruitment update and his visit to the City of ERF.

Attachment #6 – FY20 Budget/Cash Flow Update

Sandy MacDonald-Hopp gave an overview of the FY20 budget and cash flow. The total CPS revenue of $5.3 million for the fiscal year-to-date as of September 30, 2019 is $1.5 million or 23% below budget. This revenue represents 4% decrease from year-to-date September 2018 in which CPS HR had $205k more in revenue. Year-to-date, all markets but Training are underrunning revenue budget as we had budgeted for growth.

Fiscal year-to-date through September 2019 direct expenses are under budget by $682k and the mix generated gross profit margin of 35.4% versus budgeted 40% as a percent of revenue. Operating expenses are $174k or 5.7% under budget due to timing of expense and staff vacancies.

Year-to-date CPS has net operating loss of $996k, which is $695k worse than the budgeted operating loss thru September. The net loss figure of $773k equates to -15% of revenue and below budgeted net loss and FY20 Strategic Goal of -2%. The cash flow forecast for the next 12 months indicates some ups and downs in cash reserves with capital expenditures, ongoing disbursements, and timing of collections. Monthly variations in cashflow reflect changes in the timing of receipt of invoice payments and payments to vendors.

Attachment #7 – Performance Dashboard

Attachment 1– Page 4

Attachment 1

Jerry introduced the Performance Dashboard and the indicators that reflect the key elements that are monitored to assess organizational success at a high level.

Geralyn Gorshing touched on the Qualified Lead Goals and stated there is a lot of activity that doesn’t necessarily reflect in these numbers. Geralyn says we have a lot of small projects going on, approximately 220 a month, and it takes about 4 months on average to get a response on the leads.

Holly says the contract approval process goes through a lot of departments and gets held up which is why there is such a delay in receiving a timely response.

Attachment #8– FY20 Strategic Initiatives – Progress Update

Jerry introduced this item and turned it over to the Senior Leaders to brief the Board on their progress.

Geralyn spoke to the board about strategic initiative #1. Geralyn says we have hired a Florida BD Rep to develop business in the region and we have acquired 19 new clients in first quarter (on track to meet FY20 client growth goals). Our Client satisfaction rating is also at 4.4 for the first quarter.

David Powell touched on strategic initiative #2 and our progress with digital transformation. Dynamics 365 Business Central goes live for timesheets on November 4 for our employees. Microsoft Teams deployment is complete. We are averaging 10% monthly adoption rate/move of internal communication from email to Teams. We will be getting all of the Board Members setup with Teams later in this meeting.

Melissa Asher, Vicki Quintero Brashear and Regina Romero spoke about initiative #3. Melissa talked about our subscription-based service that we would be testing with special districts. She also brought up Executive Search and piloting video interviews and prototyping a client portal to provide real time search updates. Vicki touched on the software development of the Class & Comp Calculator. Linda Andal thinks the client portal and the Class & Comp calculator are a good idea and sound promising.

Regina discussed the 4-part model that we are using both internally and with two clients on Performance Management work. The methodology is being constructed with the ability to apply it across different organizations based on their needs.

Regina spoke about initiative #4. We have reconstructed the employee engagement survey to remove the “neutral” option and have respondents give more specific feedback to the survey. It was launched on October 21 and run through today, November 1st.

Attachment #9 – Investment Update

Attachment 1– Page 5

Attachment 1

Sandy reviewed the investment update and stated we have $9,961,970 (includes accrued interest of $43k) in investments with an average maturity rate of 2.68 years, and 100% of our investment dollars are CD’s that are FDIC insured.

Attachment #10 – Disclosure of Reimbursement for Special Districts

Sandy stated this is an annual requirement as a governmental agency; this is publicly available information. No one has ever requested it.

Attachment #11 – Board Member Meeting Attendance Cost Summary – Annual Report

Jerry reported that this report discloses the cost of each board meeting and helps us track our expenses.

Attachment #12 – Return To Board (RTB) Funding Balance – Status Update

Page 3 of this attachment shows the RTB fund balances, and what funds were used for by each agency as of October 7, 2019. We encourage use of the funds to go toward improvement of management, culture or HR function of the organization. The Board Member needs to make the request in writing, and the funds need to be used by March 31, 2020; the funds are use it or lose it. If the funds are not being used, we might take away the funds next year.

Attachment #13 – New Legislation AB1912 – Discussion

AB 1912 (attachment 13, pages 3 - 9) would require member agencies of an agency established pursuant to a joint powers agreement that participates in, or contracts with, a public retirement system, prior to filing a notice of termination or upon notice of potential termination by the Board of Administration of the Public Employees’ Retirement System, to mutually agree as to the apportionment of the agency’s retirement obligations among themselves, provided that the agreement equals 100% of the retirement liability of the agency.

Jerry asked that our legal representative, Jeff Mitchell, to speak about this legislation and answer any questions.

The board took a break from 11:46am and resumed at 12:12pm.

Attachment #14 – Adoption of MS Teams for Board Members

David Powell gave instructions to the board members for downloading MS Teams. Each board member will have access to the CPS HR Teams environment. Instructions were provided as how to use Teams, find information and use the editing and chat features of Teams.

Attachment 1– Page 6

Attachment 1

Public Comment on Matters Not on the Agenda – there was none.

Having no other business to discuss, the meeting was adjourned at 12:31 PM.

Minutes prepared by: Dana Henderson

Minutes reviewed by: Jerry Greenwell

Respectfully Submitted:

Dated:___11/7/19______Signed: David Devine ______David Devine, CPS HR Board Chair Director, Sacramento County

Attachment 1– Page 7

Attachment 2

MINUTES OF CPS HR BOARD OF DIRECTORS SUB-COMMITTEE MEETING

Board Development Committee February 4, 2020

The Board Development Committee members met via conference call on Tuesday, February 4, 2020 from the following locations:

CPS HR Consulting, 2450 Del Paso Road, Suite 220, Sacramento, CA 95834 Pinellas County, HR Dept., 400 S. Fort Harrison, Clearwater, FL 33756

Open Session: The meeting was called to order at 1:02 PDT with the following in attendance via conference call:

Jerry Greenwell, CEO, CPS HR, Sacramento, CA Dana Henderson, Executive Assistant, CPS HR, Sacramento, CA Holly Schoenherr – Pinellas County, Clearwater, FL

Jerry called the meeting to order and stated that the purpose of the meeting was to discuss the board development/learning activities to engage in for an approximate 2-hour block of time at the Thursday, March 12, 2020 Board of Directors Development/Planning Meeting.

A discussion was held around the following ideas:

• Evolving world of work • How well are we prepared to engage tomorrows workforce? • Impacting the workplace culture / developing culture around values • How do we help manage the emotional part of change and how do we model it? • AI – Will it humanize or dehumanize the workplace?

Jerry mentioned we have our Client Conference starting tomorrow in Napa, CA. He would like to go to the conference and see if he comes away with any new ideas and will report back to Holly and determine what we will cover at the March 12, 2020 meeting.

There being no further business, the meeting adjourned at 1:34 PM PDT.

Minutes prepared by: Dana Henderson Minutes reviewed by: Jerry Greenwell / Holly Schoenherr

Dated:__2/17/2020______Signed: Holly Schoenherr Holly Schoenherr, CPS HR Board Member

Attachment 2– Page 1

Attachment 2

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Attachment 2– Page 2

Attachment 3

DATE: June 12, 2020

TO: CPS HR Consulting Board of Directors

FROM: Jerry Greenwell, CEO

PREPARED BY: Dana Henderson, Executive Assistant

SUBJECT: Election of Board Officers for 2020-2022 and appointment of Board Sub-Committee Members

ACTION REQUESTED:

___ Information Item _X_ Approval and/or Authorization ___ Policy Change or Adoption ___ Closed Session Item

RELATIONSHIP TO BUSINESS PLAN:

Board Governance is an important element to the overall success of CPS HR Consulting. Roles and responsibilities within the Board assure the governance role is effectively carried out.

DISCUSSION:

Every two years, as part of the Annual Board Meeting in June, the Board makes decisions about who will serve as Board officers. The election of Board Officers is for terms serving in 2020 - 2022.

According to the CPS HR By-Laws, “Board officers shall be elected at the annual June Board meeting of the year in which the term of the prior officer ends. Election of officers requires that a quorum of the Board be present, and a majority of that quorum must vote for the new officer.” The By-Laws also state “The officers of the Board shall be a Chair and Vice Chair/Secretary.”

Another part of the Annual Board Meeting in June is the CPS HR Board makes decisions about who will serve on Board committees for the next fiscal year.

See the duties of the Chair, Vice Chair/Secretary and Board Committee Members in the document that follows on page 3.

Committee Assignments

Two standing committees were formed in 2008: The Executive Committee and the Board Development Committee. The Finance Audit Subcommittee was formed as an Ad-Hoc Committee.

Current Executive Committee members will serve until June 30, 2020. Committee Members are Dave Devine, Shanté Akafia & Paula Herman. The Board Executive Committee is made up of the Board Chair, Board Vice-Chair and one elected Board Member-At-Large.

Attachment 3 – Page 1

Attachment 3

Current Board Development Committee Members are: Holly Schoenherr, Fernando Yañez, and Dan Tarwater, and their term expires on June 30, 2020.

The Finance Audit Subcommittee is formed as an ad-hoc committee responsible each year for the CPS HR financial audit process and reporting of audit results. Committee members in 2019 were Holly Schoenherr and Fernando Yañez. Two Board members are needed to serve as the 2020 Finance Audit Subcommittee.

RECOMMENDED ACTION:

Nominate and elect Board Officers for the following positions to serve: • Board Chair • Vice Chair/Secretary • One Member-at-Large to serve on the Board Executive Committee • Three Board Members to serve on the Board Development Committee. • Two Board Members to serve as the Finance Audit Sub-Committee for 2020. (This committee disbands after the 2020 audit is completed.)

FISCAL IMPACT: None

Attachment 3 – Page 2

Attachment 3

The duties of both the Chair and Vice Chair/Secretary as defined in the By-Laws are listed below:

6.02 Duties of the Chair. Subject to the direction and control of the Board, the Chair shall:

➢ Preside at all meetings and assure the integrity of the Board’s procedures. ➢ Create and maintain a spirit of unified purpose among the members of the Board. ➢ Ensure that deliberation will be fair and open, but also efficient, timely and orderly. ➢ Ensure that the Board works appropriately with the Chief Executive Officer and staff in exercising power effectively and ethically. ➢ Represent the Board to outside parties. ➢ Be a member of all standing and ad hoc committees, except the nominating committee. ➢ Appoint all committees, except when such appointment is reserved to the Board of Directors. ➢ Set the Board Agenda in collaboration with the Chief Executive Officer. ➢ Authorize expenditures of $250,000-$500,000. ➢ Provide a summary report to the full Board of any actions he/she has taken since the last Board meeting and any reports he/she has received from the Chief Executive Officer concerning the general overview of the affairs of the business of the agency.

6.03. Duties of the Vice Chair/Secretary. The Vice Chair/Secretary shall ensure that accurate minutes of the meetings of the Board of Directors are kept and distributed to the Directors in a timely and appropriate fashion. The Vice Chair/Secretary shall act in place of the Chair in the latter’s absence and shall also perform such other duties as assigned by the Chair.

Board Executive Committee Responsibilities

• The Executive Committee is tasked with managing the Emergency CEO Succession Plan.

Board Development Committee Responsibilities

• Develop a recruitment plan, when needed, that takes into account the expertise, perspective, judgment and resources needed in new board agencies and members. • Review potential board member agencies and candidates, and present nominees for the Board’s approval. • Periodically review the orientation program, including not only official briefings and printed materials, but also individual mentorship to make new members part of the culture of the Board. • Review the talents and interests of current and new members and recommend to the Chair committee assignments most appropriate for their involvement. • Recommend to the Board policies about expectations for members, reaching out to those whose commitment does not match expectations. • Nominate members for officer positions.

Attachment 3 – Page 3

Attachment 3

• Encourage participation in special occasions, which bond trustees to each other and to the organization. • Report to the Board of Directors at regular meetings of the Board in a manner determined by the Board. • Assist in planning a one-day session of the 2-day annual March Board Meeting.

Revised 6.9.17

Board Audit Committee Responsibilities

The Finance Audit Subcommittee is formed as an ad-hoc committee responsible each year for the CPS financial audit process and reporting of audit results.

Attachment 3 – Page 4

Attachment 4

DATE: June 12, 2020

TO: CPS HR Consulting Board of Directors

FROM: Jerry Greenwell, CEO

PREPARED BY: Jerry Greenwell, CEO and Sandy MacDonald-Hopp, CFO

SUBJECT: Fiscal Year 2021 - 2022 Strategic Plan & FY21 Budget (under separate cover)

ACTION REQUESTED:

_____ Information Item __X__ Approval and/or Authorization _____ Policy Change or Adoption _____ Closed Session Item

RELATIONSHIP TO BUSINESS PLAN:

The proposed FY2021-22 Strategic Plan and FY21 Budget documents outline the direction for our organization in the coming year. As discussed in November 2019, upon completion of the third year of the three-year plan ending in FY2019, we were only focused on the current year FY20. We will now enter a new two-year plan with reviews and updates annually. The information is now presented in a one-page document that outlines the upcoming efforts to support our guiding values and our strategic objectives for FY2021.

DISCUSSION:

The budget process was an iterative process led by the Chief Financial Officer and occurring in the same time frame as our strategic planning process led by the Chief Executive Officer. Both processes engaged the entire Senior Leadership team along with unit/team leadership and staff as appropriate. The strategic plan and budget provide business units, and the organization, specific parameters to work toward and to be held accountable for in the next year. The strategic plan and budget assumptions are outlined in the document under separate cover.

FY21 Initiatives

The strategic plan for the upcoming year will continue to build upon our guiding values: Care for our Customers, Care for the Organization, and Care for Each Other, and in support of Vision 20/20.

As outlined in the previous strategic plan, in order to move the business forward and continue to offer relevant products and services CPS HR Consulting needed to engage in the process of developing digital fluency across our entire business operation. The goal of this effort is to enhance the customer experience and streamline business processes and operations as supported in Vision 20/20, which moves us toward becoming an agile, forward thinking, and energized organization. The conversion to digital operations and digital delivery of products and services is essential to our sustainability and growth as an organization. Attachment 4– Page 1

Attachment 4

This next two-year effort will look to capitalize on the investment and now move toward mobilizing the organization, which will in turn transition to sustaining the digital transformation.

The initiatives for FY2021 that emerged from our strategic planning process continue to be: 1. Care for the Customer Deliver quality products and services that enable our clients to meet their current/future needs and will create a highly satisfied client base.

2. Care for the Organization Maintain company revenues, reserves, and reinvestment dollars to ensure year- over-year growth and ensure our long-term sustainability.

3. Care for Each Other Create an organization with a high level of employee engagement.

As we develop the above key strategic initiatives for next fiscal year, we will stay in the mode of less is better. It provides for a more concentrated focus and clarity for the employees in understanding the direction of the organization and where our energy and efforts will be applied.

FY21 Budget

The budget as presented recognizes the challenge of aligning expenditures with revenues from short-term contracts and clients whose budgets are limited. We anticipate revenue in FY2021 to be lower than the FY2020 actuals, but we are reluctant to budget 100% of the anticipated revenue from a variety of sources in the coming year and believe the conservative approach has served us well. We are confident in our projections based on focused and disciplined sales and business development efforts, an understanding of current economic trends and market analysis. Our stretch goals are reflected in our aggressive business development efforts. We budgeted for increased expenses to incorporate some technology enhancements to current product offerings. Given these factors, we believe we can achieve a break-even budget for FY2021. We believe this is a realistic budget projection based on historical trends and an analysis of market potential.

In the FY21-22 Strategic Plan and Budget document, the documents are organized to present:

• Overall organizational context • FY21-22 Strategic Direction and FY21 Initiatives • FY21 Budget

RECOMMENDATIONS:

1) The CPS HR Board of Directors approves the Strategic Plan Initiatives for FY2021-22 as presented in the FY 2021-22 Strategic Plan and Budget packet under separate cover.

2) The CPS HR Board of Directors approves the Budget for FY2021 as presented in the FY 2021-22 Strategic Plan and Budget packet under separate cover.

Attachment 4– Page 2

Attachment 5

DATE: June 12, 2020

TO: CPS HR Consulting Board of Directors

FROM: Jerry Greenwell, CEO

PREPARED BY: Sandy MacDonald-Hopp, CFO

SUBJECT: Investment Policy for Fiscal Year 2021

ACTION REQUESTED:

Information Item X Approval and/or Authorization Policy Change or Adoption Closed Session Item

RELATIONSHIP TO BUSINESS PLAN:

The Investment Policy maximizes interest income while minimizing risk, thereby helping to ensure the financial success of CPS HR.

DISCUSSION:

The board approves this policy annually, often with no changes. For FY2021, there are no changes.

The current policy allows us sufficient discretion to shorten the portfolio’s maturity as required by liquidity needs.

RECOMMENDED ACTION:

Approval of the investment policy for Fiscal Year 2021.

FISCAL IMPACT:

None

Attachment 5– Page 1

Attachment 5

CPS HR CONSULTING INVESTMENT POLICY JUNE 30, 2013

I. SCOPE: It is intended that this policy cover all funds and investment activities under the direct authority of Cooperative Personnel Services (CPS).

II. OBJECTIVES:

A. Safety: It is the primary responsibility of the Treasurer of CPS to protect, preserve, and maintain all cash and investments placed in his/her trust on behalf of CPS.

B. Liquidity: An adequate amount of the investment portfolio is to be maintained in liquid, short-term securities that may be easily converted to cash, if necessary, to meet disbursement requirements.

C. Yield: Yield should become a consideration only after the basic requirements of safety and liquidity have been met.

D. Market Average Rate of Return: The investment portfolio shall be designed to attain a market-average rate of return throughout budgetary and economic cycles, taking into account the agency's risk constraints and other influencing factors.

E. Diversification: The investment portfolio will be diversified to avoid incurring unreasonable and avoidable risks regarding specific security types or individual financial institutions.

F. Prudence: CPS adheres to the guidance provided by the "prudent man rule," which obligates a fiduciary to ensure that:

"investment shall be made with the exercise of that degree of judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation but for investment considering the probable safety of their capital as well as the probable income to be derived."

G. Public Trust: All participants in the investment process shall act as custodians of the public trust. The investment portfolio is subject to public review and evaluation and shall be designed and managed with a degree of professionalism worthy of the public trust. While occasional losses are

Attachment 5– Page 2

Attachment 5

inevitable, they are to be considered within the context of the overall portfolio's rate of return providing the requirement of adequate diversification has been met.

III. DELEGATION OF AUTHORITY: The CPS Joint Powers Agreement designates the Chief Financial Officer as the Treasurer/Auditor of CPS. It further states that the Treasurer/Auditor shall be responsible for prudent investment of funds and be responsible for the safekeeping of all CPS money. All investments under this investment policy shall be made in accordance with the Joint Powers Agreement and provisions of Article 1 (commencing with Section 6500), Chapter 5, Division 7, Title 1 of the Government Code.

IV. REPORTING:

A. Annually: Annual reports shall be submitted summarizing activity for the period covered.

B. Every Board Meeting: The Treasurer shall submit an investment report to the Board of Directors, encompassing all required elements of the report as prescribed by Government Code Section 53646:

a) Type of investment b) Institution c) Date of maturity d) Deposit amount/cost e) Current market value of long-term (12+ months) securities f) Interest rate g) Statement relating the report to the Investment Policy h) Statement that there are sufficient funds to meet the next 30 days' obligations i) Accrued interest j) Earnings to date.

V. INVESTMENT INSTRUMENTS: Authorized investment instruments may include: a) Securities of the U.S. Government b) Debt issued by U.S. Government Agencies or U.S. Government Sponsored Enterprises c) Certificates of Deposit d) Negotiable Certificates of Deposit e) Banker's Acceptances f) Commercial Paper g) Sacramento County Pooled Investment Fund h) LAIF i) Cal/TRUST j) Passbook Deposits k) Mutual Funds

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l) Corporate Bonds m) Municipal Bonds

VI. INTERNAL CONTROL: A system of internal control shall be established and designed to prevent losses of public funds arising from fraud, employee error, unanticipated changes in financial markets, or imprudent actions by employees and officers of the agency. VII. MATURITIES: Except for investments listed in section V.(a) and V.(b) above, the limitation on the term or remaining maturity at the time of investment for any debt security should be five years. Further, no investment stated in V.(a) and V.(b) should have a remaining maturity at the time of investment of greater than ten years. The total of investments with greater than five years remaining to maturity should be limited to not more than 50 percent of the portfolio."

VIII BANKS AND SECURITIES DEALERS: The Treasurer shall consider the credit worthiness of financial institutions being selected for deposit or investment of funds and shall continue to monitor the credit and financial history of said institutions throughout the investment/deposit period. All bank deposits shall be secured with pledged securities in accordance with California Government Code Section 53651.

IX. RISK/TOLERANCE: No individual investment transaction shall be undertaken which jeopardizes the total capital position of the overall portfolio. The Treasurer shall periodically establish guidelines and strategies to control risks of default, market price changes, and illiquidity. Prudence in selection of securities and portfolio diversification is employed to minimize risk. Short-term securities selected for investment shall have credit ratings at or above A-1 by Standard & Poor’s, P-1 by Moody’s, and, if available, F1 by Fitch, with the exception of short-term municipal obligations, which shall be at or above a short-term rating of SP-1 by Standard & Poor’s, MIG1 by Moody’s, and, if available, F1 by Fitch. All long-term securities selected for investment shall have credit ratings at or above A- by Standard & Poor’s, A3 by Moody’s, and if available, A- by Fitch. Security selection shall be in compliance with California Government Code Section 53600, et seq.

X. SAFEKEEPING AND CUSTODY: All securities owned by the agency should be held by a third party except time-deposits in banks and savings and loans.

XI. STATEMENT OF INVESTMENT POLICY: The Statement of Investment Policy shall be reviewed and submitted annually to the Board of Directors.

AMENDED JUNE 2003, DECEMBER 2003, JUNE 2007, JUNE 2008, JUNE 2009, JUNE 2012, AND JUNE 2013

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DATE: June 12, 2020

TO: CPS HR Consulting Board of Directors

FROM: Jerry Greenwell, CEO

PREPARED BY: Eric Brown, Sr. HR Consultant

SUBJECT: Approval of Class/Pay Plan

ACTION REQUESTED:

___ Information Item __X__ Approval and/or Authorization ____ Policy Change or Adoption ____ Closed Session Item

RELATIONSHIP TO BUSINESS PLAN:

Maintenance of competitive pay is critical to attracting and retaining a workforce that can deliver our products and services to meet the wide variety of our clients’ needs.

DISCUSSION:

Prior to each Board meeting, HR staff updates the class and pay plan to incorporate any additions, deletions, or modifications to the plan that have occurred since the last Board meeting, including changes to titles and pay rates. This is done, in part, to comply with the requirement by CalPERS to have our pay plan approved by the Board.

There are changes to the pay plan during this and the previous time period (The last Class and Pay Plan was approved by the CPS HR Board on 11/1/19.) The changes reflect an across the board salary reduction of 10% for all regular staff classifications effective 5/1/20. Effective 7/1/20 the changes reflect a continued reduction of 10% in base salary for the CEO, and a 5% reduction in Sr. Mgmt. base salary. All other classifications were reinstated to the pre-COVID levels.

RECOMMENDED ACTION:

Approve the Class and Pay Plan as shown in the CPS HR Board Agenda for March 13, 2020 and June 12, 2020.

FISCAL IMPACT:

Fiscal impact is reflected in the FY21 budget.

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DATE: June 12, 2020

TO: CPS HR Consulting Board of Directors

FROM: Jerry Greenwell, CEO

PREPARED BY: Sandy MacDonald-Hopp, CFO

SUBJECT: FY2020 Budget and Cash Flow Update

ACTION REQUESTED:

__X__ Information Item

RELATIONSHIP TO BUSINESS PLAN: The attached schedules depict unaudited financial performance for the month-ending April 30, 2020 in comparison to the budget. These schedules depict the organization in its’ component groups of State, Federal, Local, Emerging Markets, Products & Services, and Operation Management Services.

DISCUSSION:

Revenue The total CPS revenue of $20.6 million for the fiscal year-to-date as of April 30, 2020 is $2.4 million or 10.4% below budget. This revenue represents 1.2% decrease from year-to-date April 2019 in which CPS HR had $246k more in revenue. The market mix included increase in the Local and Emerging Markets mix of service contracts offset by decreases mainly in the State Market with transition of the Merit Services contract and decrease in larger Org Strat contracts. Year-to-date, all markets are underrunning revenue budget as we had budgeted for growth and have experienced severe impact from COVID-19 shelter-in-place restrictions. Business adaption has included utilizing online collaboration tools to work remote as well as move to all online/virtual training yet significant client budget impacts activities.

Expense Fiscal year-to-date through April 2020 direct expenses are under budget by $472k and the mix generated gross profit margin of 35% versus budgeted 39.7% as a percent of revenue. Operating expenses are $464k or 4.5% under budget due to timing of expense and staff vacancies. OMS indirect expense, a component of total operating expense, is 9.5% below budget. Average monthly operating expense is running $990k per month versus FY19’s $936k monthly average.

Net Operating Income and Cash Flow Year-to-date CPS has net operating loss of $2.7M, which is $1.5M worse than the budgeted operating loss thru April 2020. The net loss figure of $2.1M equates to -10% of revenue and below budgeted net loss and FY20 Strategic Goal of -2%. The cash flow forecast for the next 12 months indicates some ups and downs in cash reserves with capital expenditures, ongoing disbursements, and timing of collections. Monthly variations in cashflow reflect changes in the timing of receipt of invoice payments and payments to vendors. Minimum cash reserve balance of $4M was established in November 2018 and as of April 30, 2020 cash balance is $10M. Based on ten-month Operating Expense average of $990k the $4M reserve would cover 121 days of operations.

RECOMMENDATIONS: None, information only

FISCAL IMPACT: None, information only

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DATE: June 12, 2020

TO: CPS HR Consulting Board of Directors

FROM: Jerry Greenwell, CEO

PREPARED BY: Jerry Greenwell, CEO and Dana Henderson, Executive Assistant

SUBJECT: CPS HR Performance Dashboard

ACTION REQUESTED:

__X_ Information Item _____ Approval and/or Authorization _____ Policy Change or Adoption _____ Closed Session Item

RELATIONSHIP TO BUSINESS PLAN:

At the request of the Board, the purpose of the Performance Dashboard is to provide the Board with a high-level overview of the performance of the organization at a glance. The Senior Team and staff monitor these indicators in order to assess organizational performance as tracked to goals.

DISCUSSION: The performance indicators on the Performance Dashboard reflect the key elements that are monitored to assess organizational success at a high level. The indicators reported on include:

• CPS HR Financials • Qualified Lead Goals • RFP Goals

RECOMMENDATIONS: None, for information only

FISCAL IMPACT: None, no expense will be incurred

*NOTE - this is a dynamic file and reflects current data as of May 28, 2020

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CPSKey HRPerforming Performance Indicators Dashboard Company Overview

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CPS HRKey Performance Performing Dashboard Indicators (con’t) Company Overview

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DATE: June 12, 2020

TO: CPS HR Consulting Board of Directors

FROM: Jerry Greenwell, CEO

PREPARED BY: Sandy MacDonald-Hopp, CFO

SUBJECT: Investment Update

ACTION REQUESTED:

__X__ Information Item _____ Approval and/or Authorization _____ Policy Change or Adoption _____ Closed Session Item

RELATIONSHIP TO BUSINESS PLAN:

The CPS schedule of investments is presented for Board information and to comply with the reporting section of CPS’s Investment Policy. It is the intent of CPS to maximize investment earnings through longer-term investments while maintaining a balance of short-term investments to meet current obligations. All investments must conform to CPS’s investment policy. Current reserves are sufficient to meet the next 30 day’s obligations.

DISCUSSION:

As part of the Board’s role in providing financial oversight each meeting, an updated investment portfolio is provided for informational purposes. At the request of the board, portfolio summary statistics are provided below, including the annualized investment total return on the long-term portfolio.

Portfolio Value as of April 30, 2020: $8,444,092 (includes accrued interest of $32.5k)

Average Maturity 1.95 years Average S&P Rating 100% investment dollars are CDs that are FDIC insured

Performance 1 month YTD Since Inception Period Total Return 1.23% -14.1% 7.2% Annualized Total Return 1.55% -16.56% 2.02%

RECOMMENDATIONS: None, for information only

FISCAL IMPACT: None, no expense will be incurred.

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Attachment 10

DATE: June 12, 2020

TO: CPS HR Consulting Board of Directors

FROM: Jerry Greenwell, CEO

PREPARED BY: Jerry Greenwell, CEO

SUBJECT: FY20 Strategic Plan Progress Update and FY20 Accomplishments

ACTION REQUESTED:

__x__ Information Item _____ Approval and/or Authorization _____ Policy Change or Adoption _____ Closed Session Item

RELATIONSHIP TO BUSINESS PLAN:

Our FY20 strategic goals are aligned with the FY2020 Strategic Direction as approved by the board in June 2019. The goals were designed to move us toward achievement of the one-year transition from the prior three-year plan as outlined. The plan has been built to assure we achieve our mission and vision while adhering to our core organizational principles.

DISCUSSION

This update is reflective of the strategic plan. We are finishing the 4th quarter and we are behind in our budgeted revenue target. Our expenses are running above budget levels due to the investments in technology; however, and we will finish the year reporting a net loss. Year over year revenue was trending up from last FY but not yet enough to offset the increase in primarily overhead expenses. (Office space, technology, additional staff)

Our largest market, the state of CA started to rebound and generate new business as our Practice Leader has made significant inroads. We are still challenged by the move to in-source HR services, but in several cases, we have been successful in transitioning. We continue to experience a higher than normal A/R primarily with the state of CA, and have seen a reduction in our cash reserve, as the state is still +$1.0M in arrears on payments. However, we have stabilized our cash reserves at or above $8.5m which is still a robust fund level but considerably down from the prior year.

We are still seeing steady business in Executive Recruitment, Classification and Compensation, and Training projects. These are trends that have carried over from last year. In-roads have been made in the target states; in particular CO, where we have established name recognition, won several projects, and have developed client relationships and consultant resources. Our business development staff have been very active, and we are winning new work and repeat business. Although we did not meet our revenue projections for the Texas state market this year, we were optimistic for FY20 at least at the local levels in TX. Our wins are spread across our markets, which ultimately will improve our sustainability.

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We have seen our Local Market revenue continue to grow primarily due to the expansion of the training, class and comp and executive search services. Test rental services remain flat although they added new clients, however, we experienced a good year with the Assessment projects. The Test Development and Administration team continued to provide sustainable revenue but the impact of COVID 19 short circuited the last quarter of the year, as it did for most other test related services. The ability to transition to online services will be a key for the upcoming year. The shutdown of clients has created a ripple effect on our business and resulted in significant changes to not only our strategy going forward but our current operational capacity. The impact of these changes is reflected in the budget and strategic plan for FY21-22. We were clearly not prepared for the magnitude of the disruption but have taken steps in the last quarter to respond accordingly.

This year we did meet the benchmark for Bid and Proposal (B&P) labor expense through April, and our overall win rate remained above the target. The number of proposals submitted stayed consistent from last year with the number of wins increasing. We expected and realized an increase in client contact with the business development team now intact for a full year. We exceeded our Qualified Lead goal as the outreach efforts on the part of the Business Development team is paying dividends. We added 59 new customers this year (through March on a goal of 77).

The strategic plan is monitored at monthly Senior Leadership meetings and regular updates are provided to the Board throughout the year. This is the final update to be provided on our FY20 Goals & Initiatives and the focus should be on the Results/Evidence as depicted by the Dashboard information item and the attached FY20 Strategic Initiatives updates.

The organization’s accomplishments for FY20 are outlined for review. These accomplishments represent the impact and influence of CPS HR Consulting on our clients and the HR marketplace. This document represents the high level and most significant of our accomplishments and is a microcosm of the many achievements of the organization.

RECOMMENDATIONS: None, for information only.

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FY20 STRATEGIC INITIATIVE #1 STRATEGIC DIRECTION: Sustainable Organizational Growth (Care for the Organization) STRATEGY: Grow company revenue, reserves and reinvestment dollars METRICS: 1. Grow revenue to $27.5M (10.9 % increase from FY19) 2. Increase the number of new clients by 10% (FY 20 Goal – 77) 3. Increase client satisfaction rating from 4.2 to 4.3

ACCOMPLISHMENTS FOURTH • Revenue of $20.6M is 10.4% below budget of $23M and 1.2% decline over YTD FY19 revenue (as of April 2020). Revenue QUARTER had been tracking ahead of FY19 until the full effect of COVID- 19 hit in April. o Products/services were redesigned and heavily marketed to highlight our virtual capabilities during COVID-19 with the end goal of maintaining a revenue stream for the organization. • Acquired 57 new clients thru March 2020 (CPS HR was on track to meet FY20 client growth goals prior to COVID-19). • Client satisfaction score of 4.31 meets our FY20 goal and shows improvement over FY19. • As of 5/19/20, CPS HR’s proposal win rate is at 63.5%, slightly above FY19’s 62.8% for the same time period and under our goal of 65%. The win rate for Full & Open proposals stands at 34.3% as of this date. Proposals awarded during FY20 have totaled $11.1M to date from 297 opportunities. Of our Qualified Leads, 84% resulted in a proposal; 54% of these proposals resulted in awarded work worth an estimated $7.8M. • The COVID-19 crisis began impacting proposal activity (both in the procurement process itself and in the number of opportunities) mid-March 2020 and is anticipated to continue for the foreseeable future.

FY20 STRATEGIC INITIATIVE #2 STRATEGIC DIRECTION: Sustainable Organizational Growth (Care for the Organization) STRATEGY: Digital transformation – single technology platform METRICS: On 4. Implement all business modules by end of FY20 5. Create dashboards and analytics

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ACCOMPLISHMENTS FOURTH • Test Rental-On-Demand Version 1 complete by June 30. Ready to test with pilot customers. UI changes in progress QUARTER (must be complete before pilot test) • Wage Gauge first prototype complete • Production/Fulfillment/Inventory Management change orders complete, testing in progress • Sales Order Processing configuration and setup complete • Business Central Finance change requests complete and moved to Production • Financial Statement Power BI initial reports complete, more Power BI reports due in first quarter of FY21 • Contracts development process beginning • References solution development in progress • Document automation discovery in progress

FY20 STRATEGIC INITIATIVE #3 STRATEGIC DIRECTION: Product and Service Excellence (Care for our Customers) STRATEGY: Develop and deliver quality products and services METRICS: 6. Launch two new products/services 7. Re-image three products/services 8. Four products marketed nationally 9. Redesign service methodologies

ACCOMPLISHMENTS FOURTH 1. New Products • Subscription-based product – Launched the HR QUARTER Membership product on the CPS HR website in May. This first version of the package consists of 12 hours of consulting to be used throughout the year, a personal Senior HR Consultant, and several checklists and tools for $1,950/year. This product is targeted at small public agencies with little HR expertise. This first version does not include any IT components (ecommerce, client portal, etc.). We will be marketing to special districts through CSDA (California Special District Association) and working with the marketing department to build awareness with local government agencies. There is an option to add on discounted hours in increments of 5- hours. • Onboarding – A general and executive onboarding framework has been created and is being priced out. Key elements include co-creation of a 100-day plan, coordination and conversation outlines for key people

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who need to be involved in onboarding, and pulse surveys to the new hire. The Executive Onboarding service is a standalone product as well as an add-on for Executive Search.

2. Re-imagine products/services • Executive Search – Converted interview processes to an online format using the InterviewStream platform and Microsoft Teams. InterviewStream allows for one-way recorded and two-way live interview experiences. Staff has been creating 1-minute videos to improve LinkedIn and other social media posts. IT resources have not been available to build the client portal or interview question bank. • Training – Transformed 100% of training courses to an online format consisting of primarily live virtual training ranging from 30-minute sessions to 2 days. Standardized on GoToTraining and using WebEx Events and Microsoft Teams to meet the demand. Expect to continue with online live virtual training well into the 1st Quarter of FY20/21. • Classification and Compensation – We have completed the Business Requirements Document for Wage Gauge (our classification and compensation proprietary software build). Although software development is on hold for next year, we will be working with several internal teams to create process improvements and develop existing tools to help with automation and ease of product use for the client and our staff. We have completed the development of a Classification Manual and associated templates and are currently in the process of developing a training plan to roll it out to staff via a series of recorded webinars. We have also begun a 6-part training series on Compensation methodologies for internal staff.

3. Four products marketed nationally • Executive Search – Ending the year with projects in 16 states – AZ, CA, CO, FL, MD, MO, MT, ND, NM, NV, OK, OR, TX, UT, VI, and WA. We also won a master agreement in Michigan. Dramatically increased the number of searches in Texas, 17 for this year. • Next year will be a busy year with our focus turning to other markets for Classification and Compensation. We will be starting a large new project in Maryland ($150K) and will work to parlay that into other East Coast agencies.

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4. Redesign Service Methodologies • Performance Management – We created a 4-part model. Model has been tested internally and with two clients. Simple methodology that includes a training component, a coaching component, a template for goal setting, and a performance tracking system. We are now ready to get with marketing to package and make available to the business development staff. • Workforce Planning - We have created a competency- based workforce planning model. With competency linkage, this model can link to a hiring strategy, training / development strategy, succession planning, and serve to populate individual performance plans.

FY20 STRATEGIC INITIATIVE #4

STRATEGIC DIRECTION: Organizational Excellence (Care for Each Other) STRATEGY: Create an organization with a high level of engagement METRICS: 1. Decrease EE neutral group to less than 50%

ACCOMPLISHMENTS FOURTH • The original plan was for HR to engage with each business unit to create action plans based on the survey results. Due to QUARTER the onset of the Corona virus and the subsequent impacts to our business, the original engagement plan has been tabled for this quarter.

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FY20 Business Team Accomplishments

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CPS Training Center

The CPS HR Training Center focused on developing new programs and adding new courses to the portfolio in the first half of the year and shifting to live, virtual, instructor-led training beginning in March 2020.

New Programs and Courses The Training Center added eight (8) new programs and many new courses in FY20 including a performance management webinar series, a robust portfolio of Technology training classes and an expansion of the popular 30-minute Tech Talks.

New Programs

• Career Executive Assignment • (The) Leadership Mindset Academy (State of California) • Customer Service Certificate • Master Trainer Certificate

• Data Analytics Certificate Program • Performance Management Webinar Series

• Essential Supervisory Skills • Women in Leadership Series

New Courses included: Dare to Lead, Sustainovation, Online Collaboration, the Art of Delegation, Train Your Brain for Positivity, Workplace Investigations, and the Delegate Art of Persuasion.

New Program Development In addition to the new programs that CPS launched, we collaborated with clients to develop new programs to support their learning and development goals. • Department of Toxic Substances Control (DTSC): Aspiring Leaders 2.0 (currently on- hold) • Department of Motor Vehicles (DMV): Analyst Training Program and Data Analytics Program (currently on-hold) • Department of Corrections and Rehabilitation (CDCR): Analyst Academy Developed a 40-hour Basic Electronics and Math courses for CalOES Public Safety Communications Radio Technicians.

Technology Training Launched in April 2020. Originally planned as in-person training, the COVID-19 crisis necessitated a change to pilot the Technology Training in a virtually delivered format. CPS piloted two platforms for delivery of the technology training, ReadyTech and Microsoft Teams. Tech training has been very well received.

Live Virtual, Instructor-Led Training Following the stay at home order for the State of CA, we developed a series of free webinars designed to assist public sector employees in navigating teleworking and managing remotely. The “6 things” webinars drew more than 1000 registrations each and were run initially at the end of March and again at the end of April.

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• 6 Activities to Improve Your Success • 6 Things You can Expect when Working from Home Working Remotely

• 6 Strategies to Manage Your Time • 6 Things You can Expect when Managing Remotely

• 6 Ways to Set Expectations for Your Remote Team

In addition, we developed a “for fee” tele-worker and tele-manager series focused on providing more guidance and best practices for success as a manager and an individual contributor working remotely. There are eight manager courses and eight courses for staff.

Shifting Training from In-Person to Live Virtual Instructor-Led Training In mid-March, following the state at home order throughout most of the U.S. and in CA., the Training Center moved all training to a live, instructor-led format. During that time, we developed guidelines for instructors and participants, trained instructors on the platforms, and worked with clients as they agreed to pilot the webinar-based format. • More than 150 courses were converted to the virtual, webinar-based format. • 55-instructors were trained and are being supported by the Training Center administrative team. From our launch, within a few days from the first stay at home order in mid-March, until the end of the current fiscal year we will provide nearly 377 virtual training classes. Kudos to our staff for responding quickly to the change in the marketplace.

New Business In FY20, the Training Center expanded our client base as follows: • The Central Contra Costa Sanitary District awarded CPS a contract to deliver Supervisory Skills training. The program was put on-hold as a result of COVID-19, but they plan to reschedule for FY21. The contract value is $28,000. • County of Orange. Training and Organizational Development, Master Agreement. • County of Boulder, CO. CPS was awarded a contract to deliver training courses for the County of Boulder. Initial courses were delivered in-person. Following COVID-19, all courses were delivered virtually. The contract value is $12,000.00 • County of Santa Clara. CPS was awarded a contract to deliver training courses in the following areas: Employee Engagement and Motivation, Process Improvement, and Project Management. As a result of COVID-19, courses scheduled from March – June 2020 were postponed. The county plans to create a robust program of virtual training in lieu of in-person training. • CPS is continuing to deliver a series of training classes for the Texas Comptroller’s office. This engagement is significant because since the COVID-19 outbreak, classes have been delivered virtually to enable the training to go forward. The platforms used are: Go to Training and the Microsoft Teams platforms. Operational Improvements In FY20, the training center focused on a few key areas to realize efficiencies, process improvements and cost savings. Efforts included:

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• Savings on room rental fees by maximizing scheduled use of the 4-training center classroom. Savings on room rental fees against the prior year (through February 2020) were ~$12,000. • Savings on shipping of materials and supplies ~$4,800.00 (through February 2020). The shift to all virtual training led to the following operational improvements to processes and cost savings from March – June 2020

Cost Savings • All student materials are electronic. No printing or shipping expenses. • No in-classroom supplies (e.g., markers, flip chart paper) • No additional room rental fees • No travel expenses. Process Improvements

All electronic, interactive materials are disseminated to students one-week prior to the scheduled class. Electronic course evaluations. Eliminated paper course evaluation and made data reports available within 24-hours to CPS, clients and instructors. Greater opportunity for “real time” feedback and improvements/adjustments to content, instructional delivery and technology.

Organizational Strategy (O/S)

• Provided a large, complex workload study to the CA Department of State Toxics Control (DTSC) to be able to petition the CA Department of Finance for additional staff. This was accomplished by: o Analyzing a series of large data sets (daily log, FI$Cal, and EnviroStor data), creating interactive project tools to support work groups, and identifying implications for project methodology o Construction of processes for interviews, task list development, and focus groups o Development of the data review process and data reviews for all branches o Development and provision of an extensive quality assurance process for reporting

DTSC utilized this year–long effort to move forward with the request for additional staff.

• Completion of a fee study for the Medical Board of California that involved the following: o Determined the specific fee amounts for the 22 fees through a complex analysis of work staff performed related to each fee; licensing and enforcement statistics, and revenue and expenditure statements. o The analysis resulted in a 45% recommended fee increase with an annual estimated additional revenue of approximately $35,000,000 in order to prevent the Board’s fund condition from going insolvent. o Finalized the report and presented the findings at the January 2020 Board meeting. The entire project was completed in only two and a half months during the holiday season - more than twice as quickly as other similar projects in the past. o The Board was granted its fee increase in record time in the May 2020

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Governor’s Budget revise. • Other key staffing studies delivered this year included: Fresno Irrigation District; Travis County Texas; Livermore Pleasanton Fire District; Contra Costa County Staffing and Workload; LA County Clerk Registrar Recorder; CA Office of Statewide Public Defender; CA Dept. of Business Oversight. • Provided an integrated product /service to the City of Henderson that included both a Succession Planning Program & Process, and an Employee Engagement Program & Process. City of Henderson this year’s the IPMA-HR Award for their city size this year - and linked our work to help them stand up their SP Program and EE Program. • Staff Development / Knowledge Transfer– developed two consultants with the hands-on ability to develop a succession planning project and run a process improvement project. One member of O/S earned their Certified Quality Auditor (CQA) from the American Society for Quality. Further we were able to transfer much of the knowledge to fully participate in a workload study project. • Completion and Presentation of Travis County Organizational Review to the Commissioners Court of Travis County, TX. • Completion of the Bexar County, TX HR Strategic Planning project which has led to subsequent work which will roll into FY2020. • Completed Program / Process Improvement project for the Community Development Commission. • Completion of a Process Improvement project for the California Department of Tax and Fee Administration. • Completion of an Organizational Assessment project for the Department of Water Resources Public Affairs Office. • Completion of a Talent Modernization Study for the Public Library

Institute for Public Sector Employee Engagement (IPSEE)

This year, the Institute continued to expand our business, our brand and our thought leadership. In 2019-20, we signed 27 contracts for engagement surveys and follow-up work. Six of these projects were for re-surveys, thus building long-term business. We also continued to drive follow- up work, including focus groups and action-planning workshops. Our staff has established a national practice – we have now worked with clients in 17 states.

We also continued this year to expand the Institute brand and thought leadership through speaking and writing. The Institute director was a featured speaker at seven national and regional conferences. He also conducted five webinars and wrote 11 articles in publications that include Government Finance Review, Policy and Practice Magazine (American Public Human Services Association), Engaging Local Government Leaders online, Route Fifty online, IPMA-HR News and Public Administration Times.

Updating our benchmarks

In 2019, The Institute again conducted our national online poll to update our employee engagement benchmarks. These benchmarks are a key competitive advantage, providing our clients with the ability to compare their engagement survey results, overall and question-by- question, to a national sample of employees in the private and public sectors. While many of our competitors use benchmarks based only on their clients, ours are nationally representative of employees in each sector, including by level of government.

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Responding to COVID-19: Employee Connection Survey

As a public service and to help government respond to the COVID-19 workforce disruption, the Institute quickly developed and launched the free Employee Connection Survey. This tool is enabling participating organizations to understand how their employees are dealing with this new working environment. Just as important, the survey results show how organizations can help their employees continue to be productive in – and feel good about – their new work environment.

To date, more than 90 organizations across the nation have requested the survey. Combined, they employ more than 65,000 public servants. Many are new to CPS and in our target markets. This has been a great source for new lead generation. This initiative is further differentiating us in the marketplace, strengthening relationships with current clients, and creating new relationships.

In addition to providing participating organizations with essential information on their workforces, we plan to produce a summary report that will include lessons learned about how to deal with a crisis like this.

The Institute is also adapting our services to the COVID-19 workplace, including emphasizing our online survey services and using technology to remotely conduct follow-up services such as focus groups and action-planning workshops.

Updating our pricing and partnership agreements

We continue to refine our pricing and are also modifying the structure of current and prospective partnership agreements. We now have an agreement with the International Public Management Association for HR (IPMA-HR) in which we remit a finder’s fee for each survey project IPMA-HR refers to us. This agreement has generated almost $400,000 in revenue since its inception. We are currently discussing referral agreements with other organizations.

Classification and Compensation

The Classification and Compensation team has managed 126 projects between 6/1/19 through 5/31/20 across all of our market segments. There are two (2) contracts in progress/awarded in Spring that either have begun work or are pending.

We had renewals of all ongoing services contracts including Montgomery County, City of San Jose, County of San Joaquin, Association of Governments (SANDAG), County of Sacramento, Department of Water Resources, Western Area Power Agency, etc.

We obtained several new ongoing services agreements. Under the ongoing services agreements, they range from a total of $30,000 – 320,000 in services throughout the year.

Recent High Wins in 2020:

Santa Clarita Valley Water Agency $162,890 Summer 2019 Glendale Community College $132,250 Fall 2019/Spring 2020 Montgomery County Program Management Series $109,320 Spring 2020 City of Westminster $ 80,500 Winter 2019 Madera County $ 70,000 Summer 2019

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University of the West $ 66,800 Fall 2019 Temple Unified School District $ 57,500 Fall 2019 Butte County Superior Court $ 50,000 Summer 2019

Total $ 729,260

• The classification redesign team finalized a practical manual complete with templates and process descriptions. The compensation redesign team continues to move forward on it’s companion manual and is participating in an in-depth series of trainings on methodology. • The compensation redesign team created a library of key compensation definitions, principles, and best practices with the goal of better defining CPS HR’s methodology around compensation. The team is working on a comprehensive practical manual.

Test Development and Administration

FY20 has been a robust year of onboarding new clients, developing new programs, and expanding the services provided to our existing clients. Through our partnerships with Pearson Vue and ProctorU, we continue to expand testing utilizing electronic modalities including in-person Computer Based Testing (CBT) and testing online via remote proctoring. By collaborating, we can leverage our relationships with our partners while continuing to provide program and candidate management. Toward the beginning of the year the increase in interest in digitization was promising and we saw steady moves in that direction. Toward the end of the year COVID- 19 completely changed the testing environment putting a halt to in-person testing and creating an online testing demand that has never been seen before.

• We collaborated extensively with the Santa Clara University Certified Equity Professional Institute (CEPI) – our client of 20+ years – to develop a new Advanced Accounting Program that will be offered to equity professionals with a keen interest on accounting principles and practices. We completed a job analysis, developed a new exam, and assisted CEPI with website updates and marketing efforts for the new program. Throughout most of FY20, we carefully planned the transition of CEPI’s three equity professional exams (Level 1, 2, and 3) for computer-based testing implementation with Pearson VUE in May; however, due to the onset of COVID-19, the administration of that exam has been significantly impacted, such that we had to also onboard the client with ProctorU for remote online testing two weeks prior to the start of testing. This took a significant amount of flexibility and effort, but we were able to act quickly and avoid a test interruption. • Early in the year we began working with the City University of New York (CUNY) to begin transitioning some of their exams online to remote proctoring. The first of three testing windows for Campus Peace Officer was administered in March. We expect significant program growth with CUNY with six new titles projected to open in the coming fiscal year. • In addition to CEPI and CUNY, we have revived online testing with the California Department of Corrections (CDCR) to provide online exam administration for Correctional Officers and had a pilot program with the California Office of Emergency Services (CalOES) for the Disaster Assistance Program Specialist moving from paper and pencil to an online exam.

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• FY20 was a productive year for our Department of Buildings (NYC DOB) client. We assisted them with the transfer of their High Pressure Boiler Operating Engineer practical exam from a municipal building in Manhattan where the exam had been conducted for over 10 years, to Queens Hospital, a newer facility with more modern equipment and a more updated boiler. We also worked extensively with a cadre of high caliber subject matter experts to develop a new practical exam for that specific location. In this fiscal year, we also won another significant, multi-year, contract for the development and delivery of training and testing for Hoist Machine Operators, Class Filing Representatives, and Master Riggers. With regards to the written exams, we received a request from NYC DOB to develop a new written exam for a Gas Work Qualification program. We began development in October 2018 and went live in Pearson Vue in January 2019, which is an extremely tight timeline, especially considering that this was our first program to launch on the Pearson VUE platform. After that successful launch, we transitioned all of NYC DOB’s written exams for 13 other trades into the Pearson Vue network. Testing for all 14 trades was on the incline until March 2020 when testing was shut down due to COVID-19. Unable to deem it essential or move online, testing has not yet resumed. • We continue to support our long-standing Notary contract with the California Secretary of State’s Office providing Test Administration and Development services for over 50,000 candidates a year. In July we rolled out our new Exam Plan which increased the overall length and time limit. In March when testing was upset due to COVID-19, we approached the topic of online testing through remote proctoring and were able to move forward with a demonstration. The demonstration has created interest and we are now reviewing program requirements and required changes to move to that platform. Although there are no commitments, this is significant progress forward in a program that hasn’t had any changes in over twenty years! • We are in the tenth year of providing Test Development and Test Administration services to the Carpenters International Training Fund (CITF) for their certification programs throughout the United States and Canada. We had a prolific year of exam development activities, as we assisted CITF in obtaining national accreditation from the National Commission for Certifying Agencies (NCCA) for four of their Building Envelope programs. We also collaborated with subject matter experts to develop a new program for Overhead Crane Operators from the ground up. We piloted the new written and practical exam in December 2019 and will be submitting an application for program accreditation through the NCCA in January 2021. We administered the various exams throughout the United States and Canada through February, but similar to other programs, COVID-19 has significantly slowed down operations for the CITF. However, we are hopeful things are able to pick up soon and we can continue with planned program growth for the coming year. • Our test administration work for the City of included two Entry Police Officer Exams (August and January) utilizing the small model approach where the exams were given at colleges within the city over a series of exam dates. We successfully administered three additional written exams over one weekend at McCormick Place in December for Police Sergeant, Fire Lieutenant and Battalion Chief. Phase two (computer-based oral assessments) for those three exams begun in January, but due to network issues was not successfully completed. The rescheduling of those oral exams has been complicated by COVID-19, so we do not have administration dates finalized at this time. • We were recently awarded a contract with the California Department of Housing and Development (HCD) to complete job analyses for two positions, conduct a thorough

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cleanup of their existing bank of questions, develop multiple new exam forms for both positions, and ultimately deliver their exams with Pearson VUE.

Test Development and Assessment

Test Rental

The Test Rental team developed new exams for Social Worker, Enty-Level Law Enfocement, and Fire Apparatus Driver/Operator and updated 18 additional stock examinations.

Test Rental developed business requirements and a wireframe for an online ordering and account management software - TR On Demand (TROD). Progress continues to be made with the goal of a minimally viable product by June 30th.

Test Rental responded rapidly to the COVID-19 situation and provided our clients with a number of remote options. We launched a new entry-law exam that can be administered in an unproctored setting and saw a sharp increase in orders for our proctorless and remote proctored services.

The Test Rental team continued to work closely with MSS/CalHR to develop and provide the most updated written examinations to support their program. As part of this initiative, Test Rental worked with the team to update 12 semi-stock and five stock examinations for program use. CPS HR also provided expertise and guidance for transition for CalHR policy and best practices.

Test Rental obtained 12 new clients in FY 2019/20.

• City of Markham, IL • Connecting Point, CA • Northshore Utility District, WA • San Bruno Fire Department, CA • San Mateo Consolidated Fire Department, CA • City of McComb Police Department, MS • City of Daphne, AL • Richmond Hill Fire and Emergency Services, ON • City of Fairfield, OH • Truckee Meadows Fire Protection District, NV • City of Calistoga, CA • City of Palm Springs, CA

Assessment Centers

• The team worked on 52 different assessment center projects in FY 2019/20. We were awarded large master contracts with the City of San Jose and the City of Tucson. New assessment center clients include:

o City of San Jose, CA o City of Laguna Beach, CA o City of Chamblee, GA o Colorado River Fire Protection District, CO o Town of Davie Fire Department, FL

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o Daytona Beach Fire Department, FL o City of Gerogetown, TX

Job Analysis/Selection Tool Development

• For the FY 2019/20, existing multi-year contracts with the CA Department of Parks and Recreation and the Board of State and Community Services (BSCC) were renewed. o Continuing to provide job analyses for the Department of Parks and Recreation, which totals thirty plus job titles that have been under study. o Continuing to provide psychometric services for Adult Corrections Officer, Juvenile Corrections Officer, and Probations Officer for BSCC. • Completed two high-profile contracts with the Commission on Correctional Peace Officer Standards and Training (CPOST), which included in-depth job analytic studies for multiple job titles such as Correctional Officers, Youth Correctional Officers, Youth Correctional Counselors, Parole Agents, Caseworker Specialists, Adult Correctional Counselors. Over 30,000 surveys were collected as part of the studies. o Awarded another high-profile contract with CPOST to conduct analyses for Fire Captain and Fire Chief. • Awarded a job analytic contract with the City of Chicago to conduct job analyses for their Captain and Commander ranks. This contract included recommendations for revisions to their job duty statements and minimum qualifications. • Continued working with the State of Connecticut to provide training and experience examinations for their public safety ranks. • Working with the Port of Oakland to develop a competency model for supervisors and managers in the Aviation Division, which will establish a unified vision of leadership practices at the Oakland Airport. We will link the model to existing management training at the Port of Oakland and identify new training needs to create management development pathways. • Conducted a series of training sessions for over 200 supervisors and managers at the Orange County Transportation Authority in conducting structured interviews and using proper interviewing techniques, to ensure all staff participating on interview panels comply with best practice and current state and federal laws.

Recruitment Solutions/Merit Systems Services Recruitment Solutions spent the majority of FY20 continuing to build up new business and develop client relationships. Despite the pandemic, we will exceed our $1.2 million budget with projected revenue of $1.3 million, an almost 40% increase over the previous year. This was accomplished largely through word of mouth and by responding to formal and informal client requests.

Key Wins:

• City of Santa Rosa, CA – Interim HR Placement • Truckee Donner Public Utility District, CA – Ongoing Consultation & Employee Handbook Development • San Joaquin Regional Transit District, CA – Ongoing HR Consultation/Special HR Projects • City of Alameda Housing Authority – Recruitment and Selection Services • City of Palo Alto, CA – Recruitment and Selection Services • City of Santa Clara, CA – Recruitment and Selection Services • Santa Clara Housing Authority, CA – Recruitment and Selection Services

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• San Luis Obispo Regional Transit Authority, CA– Audit and Compliance Services • San Luis Obispo Integrated Water Management Authority, CA – Audit and Compliance Services • Elizabeth Fire Protection District, CO – Ongoing HR Consultation and Audit and Compliance Svcs. • Boulder River Fire Rescue, CO – Recruitment and Selection Services

Additionally, we continued to service the following clients with ongoing contracts: • City of Union City, CA - – Interim HR Placement • City of Oakland, CA – Recruitment and Selection Services • West Bay Sanitary District, CA – Ongoing HR Consultation • City of Sheridan, CO – Interim HR Placement • City of Manitou Springs, CO – HR Outsourcing

New Products and Services:

• Human Resource Membership o The membership includes: ▪ Dedicated Senior Level HR Consultant who understands your business ▪ One-hour free meet-up when you activate your membership ▪ 12 hours of consulting that you can use at any point during the year (with the option to add more) ▪ Discounted rates for additional services, i.e. training, recruiting, testing, etc. ▪ HR Basics Kit including checklists to ensure compliance and best practice for major HR functions ▪ Cost - $1,950/Annually o The HR Membership product went live on the CPS HR website in May of 2020. o We believe this product will help public sector clients with little HR expertise on staff obtain high-quality, on-demand HR services that are affordable. • Onboarding Services (in conjunction with Executive Search and Human Resources) o Development of an Onboarding product and service for general and Executive level hires. o A draft framework is in development and includes: ▪ 100-day onboarding plan ▪ Identification of stakeholder roles and conversation outlines ▪ Facilitate stakeholder scheduling in alignment with 100-day plan ▪ Pulse surveys o A pricing model will be finalized by the end of June 2020. The product will be sold as stand-alone or as part of a recruiting project and will include different options depending on the level of onboarding support needed. o Development will continue into FY21 with a probable launch in Q2.

Remote Services Recruitment Solutions continued serving clients during the COVID-19 pandemic by effectively delivering recruiting and selection services remotely. Through a partnership with Interviewstream, we were able to conduct virtual interview processes, including pre-recorded one-way interviews and two-way live interviews, as well as panel interviews. We offered this service as part of our regular recruitment and selections services and as a standalone service that our clients could use with their staff. Additionally, we partnered with Executive Search and Test Rental to create and deliver a free webinar to clients on Best Practices in Remote Hiring.

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General HR Projects General HR services are also provided by this team and Recruitment Solutions partnered with the Marketing Division to update the General HR Services section of the CPS HR website. These services include: • Employee Handbook Review & Update or Development • Audit and Compliance • Interim HR Placement/Ongoing HR Consultation (both onsite and remote) • Workplace Investigations • HR Membership The new website launched in May of 2020. In order to continue to build business and promote awareness of these products and services, Recruitment Solutions is continuing to work with the Marketing Division to develop and implement a marketing campaign highlighting these services.

Merit Contract Finally, FY20 marked the third and final year in the three-year transition plan to return the Merit System Services program back to the State of CA, Department of Human Resources (CalHR). In addition to all of the work listed above, the Recruitment Solutions team fully transitioned the remaining IMS counties on March 1, 2020. From March 1, 2020 through June 30, 2020, the Recruitment Solutions team has been working with CalHR to wrap up several job analyses projects, written exam reviews and updates, and offer final training and consultation to the CalHR team. Our goal was a highly collaborative transition which was achieved and culminated in a final transition memo sent in May to all IMS counties thanking them for allowing us to serve them over the last 25 years and inviting them to reach out to us should we be able to serve them in the future.

Executive Search

The Executive Search team started more than 170 recruitments this fiscal year. Our newer recruiters, brought on in the second quarter of FY19, were completely up to speed and carrying full loads of recruitments (7-8) after six months.

Our Texas-based recruiter, Kylie Wilson, continued our business development efforts in the state and secured work with new clients including the Galveston Island Park District, the Texas Recreation and Park Society, and the cities of McAllen, League City and Sugar Land. In addition to highly successful recruitments for Austin and Dallas, we received master contracts with Austin, the Housing Authority, the Employees’ Retirement System of Texas and the Texas Water Development Board.

Our recruiters’ exemplary efforts also resulted in an ever-increasing amount of repeat business for clients including the cities of Amarillo TX, Aurora CO, Berkeley CA, Bozeman MT, Long Beach CA, Oxnard CA and Santa Clara CA. Repeat county clients include Contra Costa, Marin, Monterey, San Bernardino and Santa Clara. And, we continue to build strong relationships with special districts – Alderwood WA Water and Wastewater, Carmichael Water District, the San Mateo County Harbor District, San Mateo County Mosquito and Vector Control, and San Mateo County Transit District to name a few. In addition, we were awarded a master agreement with the State of Utah and are currently conducting a recruitment for the Utah Transit Authority.

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Nationwide Presence

We continued our efforts to work in additional markets and conducted recruitments in 15 states:

• California • Colorado • Florida • Maryland – new in 2020 • Montana • Nevada • New Mexico – new in 2020 • Oklahoma • Oregon • Texas • Utah – new in 2020 • Virginia • Washington • Wyoming – new in 2020 Remote Recruiting Up and Running Executive Search continues to increase our technological capabilities and with COVID have been able to provide our clients with the opportunity to continue recruitments virtually. This included the successful recruitment of a City Manager for Bozeman, MT that was conducted all via virtual processes. Using InterviewStream we are able to conduct one-way recorded and two-way live virtual interview processes, including panel interviews. We use two scheduling applications to more efficiently and effectively schedule candidate interviews, InterviewStream and Calendly. We also continue to sharpen our skills surrounding social media and our LinkedIn presence is shared by employees throughout the company.

Notable Searches We completed several notable recruitments this fiscal year: City of Berkeley, CA Frank Rojas has established a strong relationship with the City of Berkeley that has led to four (4) recruitments in FY20, with a fifth on hold due to the pandemic. In addition, Pam Derby is currently leading the Director of Library Services recruitment that has required extensive stakeholder engagement and resulted in an exceptional candidate pool.

San Mateo County Harbor District After a winning proposal presentation, Andrew Nelson conducted the General Manager recruitment for the San Mateo County Harbor District. This District has been plagued by bad press and political infighting for many years. Due to an aggressive and innovative outreach process that included Andrew using his Coast Guard reserve status to attract candidates, he was able to garner a high-quality candidate pool. This exceptional work lead to three more recruitments for the agency. In addition, their strong reference was a major factor in CPS HR being awarded the current District Manager recruitment for the San Mateo County Mosquito and Vector Control District.

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City of Reno, NV During the month of September, the Executive Search team conducted significant business development activities. This included a trip to northern Nevada to visit the cities of Reno and Carson City and the County of Washoe. Subsequent to that visit, we learned that the Reno City Council had an item on their agenda to approve a contract with one of our competitors to conduct their City Manager search. However, they did not approve that contract and Josh was contacted by the Human Resources Director and asked to submit a proposal. Our proposal was a success and Josh is currently conducting the City Manager recruitment.

Parks and Recreation Directors Due to her significant background in Parks and Recreation, Kylie Wilson is currently cornering the market on Parks and Recreation Director recruitments. Stellar work in Las Vegas and Aurora CO, lead to recruitments with the cities of Dallas, Long Beach and San Jose. In addition, her exceptional performance in Dallas lead to being awarded the recruitment for a Chief Information Officer where we successfully placed a candidate in May.

OPERATIONS MANAGEMENT SYSTEMS (OMS)

Finance Department

• This fiscal year was quite busy for the Finance team with system implementation of Microsoft Dynamics Business Central accounting system. The digital transformation required numerous process changes to adapt to the new system. Lots of coordination and training for go-live dates with no impact to weekly accounts payable check-runs and bi-weekly payrolls. There were some delays in releasing month-end financials yet now on cycle. Invoicing was impacted by delayed month-end closes along with adapting process/formats and are now current. The Finance team has put in many hours working together to learn system features and different ways to troubleshoot. The Finance team received a team award this year recognizing those efforts. • Payroll went through two phases of implementation with new timesheets in combination with Sentric payroll that then changed to Primo payroll. The team continues to demonstrate patience and adaptability with high level of attention to detail in dealing with unique payrolls. • Other aspects of digital transformation relate to PowerBI reporting that Finance collaborated with ISD and business units on report design, training, and usage. PowerBI will continue to be expanded with more reports and more users. • Travel activities were busy throughout the year and COVID-19 prompted lots of monitoring and then sudden trip cancellations. Still working thru airline credits to minimize change fees or expiration dates. • Business Continuity Planning required updates for testing and system updates. • Increased proposal activities involved Finance review of contract language exceptions and unusual data or response language. • Finance team’s collective efforts and internal control focus resulted in clean audit reports once again for annual financial statement audit and workers compensation audit. • Ongoing insurance activities involved annual renewal package, never-ending Certificate of Insurance requests, claims support, and policy clarification. • Numerous Shout Outs for good customer support on contracts, invoices, payroll, purchasing, capital, travel, A/P, A/R, off-site meeting, and miscellaneous activities.

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ISD/Production

Information Technology spent the majority of FY20 focused on the Digital Transformation strategic initiative. The main area was the implementation of the Microsoft Dynamics 365 for Government Contractors solution. Our software development efforts have resulted in prototypes for a new Test Rental online ordering custom application and a new prototype to improve services delivered to Classification & Compensation clients.

Our ISD projects have helped the organization become more collaborative by enhancing our Microsoft Teams investment, more secure via improvements in cyber security, BCP and employee training programs and more agile via solutions designed to help people work from anywhere on any device during the stay-at-home orders in place in the last quarter of the fiscal year. Digital Transformation:

• Implemented Microsoft Dynamics 365 Sales (CRM) • Implemented Microsoft Dynamics 365 Talent (HR) • Implemented Microsoft Dynamics 365 Business Central (Finance) • Implemented Primo Payroll for Microsoft Dynamics 365 (Payroll) • Developing Microsoft Dynamics 365 Business Central for Warehouse Operations (Production) • Developing Microsoft Dynamics 365 Business Central for Sales Order Processing (Print Ordering) • Microsoft Office 365 Teams Phase 3 • Beginning Microsoft Dynamics 365 Project Operations (PSA, Project Life Cycle) • Implemented Business Intelligence for Reporting and BI Dashboards (Microsoft Power BI) Software Development:

• Test Rental On Demand (TROD) o Completed business requirements o Completed prototype o Completed version 1 o Beginning UI development for pilot testing • Wage Gauge (Classification & Compensation) o Completed business requirements o Completed prototype • Proctor Timesheet (Business Central) o Completed business requirements o Completed prototype ISD Projects

ISD completed the following projects in FY20: • Cloud Migration of all internal and client documents into SharePoint Online • Completed shutdown of on-premise SharePoint 2016 environment • Implemented online training platform for Training Center to allow online training during the pandemic office shutdowns

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• Implemented dozens of workflows and automations using Microsoft Power Automate and Nintex workflows • Implemented dozens of Power BI reports and dashboards for Finance, Project Managers and various business units • Windows 10 migration complete for all workstations • Completed SSA cybersecurity compliance annual initiative and security awareness training • Microsoft Teams adoption increased to 60% • Completed various cyber security initiatives • Completed business continuity plan and employee security handbook • Moved off site business continuity site to the Microsoft Cloud • Moved all application servers to the Microsoft Cloud • Completed 4 rounds of Resolution Training via Microsoft Teams

Marketing and BusinessDevelopment

Business Development

• Through 3/30/2020, CPS HR acquired 57 new clients (8% growth from the same timeframe last year). ➢ Northern CA Market (3 months): ▪ Through March 2020, the NorCal market acquired 15 new clients. ▪ Made 76 client contacts through May 2020. ▪ Conducted outreach to approximately 1000 potential clients promoting COVID related products and services. ▪ Increased social media presence - 41 posts on LinkedIn garnered 4,120 views. ➢ Southern CA Market: ▪ Exceeded sales revenue goal of $600,000; ($790,560 for SoCal and $163,720 for NorCal). o 37 wins were sole source/limited competition. ▪ Through March 2020, acquired 11 new clients and assisted in acquiring an additional 4 new clients for NorCal. o Acquired 2 new education clients and 6 special districts; continuing to develop emerging market. ▪ Made over 200 client contacts including virtual and in-person meetings to focus on cross selling and developing new business. ▪ Increased social media presence by reaching out through LinkedIn postings, job re-posts, and increasing views for CPS hosted webinars and events. ▪ Attended/moderated at 19 conferences/events to promote products/services. ➢ Colorado Market: ▪ Generated new sales revenue of $570,00 thru May 2020. (Revenue will be closer to $800k due to outsourcing projects with the cities of Manitou Springs and Sheridan). ▪ Through March 2020, the Colorado market acquired 8 new clients. ▪ Made approximately 250 client contacts through May 2020. ▪ Attended 5 conferences/tradeshows to promote products/services. ▪ Direct/hands-on project work:

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o PM for City of Manitou Springs, Routt County, Fremont Sanitation District, all Colorado Investigations o SME/Advisor – City of Sheridan, Town of Mead ➢ Texas Market (2 months): ▪ Through March 2020, the Texas market acquired 7 new clients. ▪ Made 34 client contacts from April 2020 to May 2020. ▪ Conducted outreach to over 400 potential clients promoting COVID related products and services. ➢ Florida Market: ▪ Through March 2020, the Florida market acquired 4 new clients. ▪ Conducted outreach to over 600 potential clients promoting COVID related products and services. ▪ Developed partnerships with WSA-Law (West Palm Beach/Palm Beach County), Ford Harrison, Gehring Group and Culture IQ. ▪ Attended 8 conferences/tradeshows to promote products/services. ▪ Recruited 7 local PCs to deliver services. Marketing

• Market Research ▪ Increased market outreach by capturing contacts, segmenting them, and adding to our market lists. ▪ Revised the client satisfaction survey and invitation to improve the user experience and to improve return rates. ▪ Cross-selling and retention analyses were conducted in August and December 2019. These analyses narrowed our strategic focus to cross-selling (over retention) and established a goal of 28% of clients purchasing from multiple products and services for FY20; comparison against the goal will occur upon completion of FY20 financials.

• Marketing Process Improvements ▪ Created a Power BI tool to identify demographics in email campaigns and subsequent opens/clicks. This led to a 45% reduction in email distribution lists while increasing our open and click rates to 15% and 2.2%, respectively, meeting our goals. ▪ To meet our digital strategic initiative, created a variety of Power BI reports enabling CPS HR staff to examine Marketing and Business Development metrics in transparent real time. ▪ Created web-based forms that feed information directly into CRM and notify pertinent staff of new email subscription signups and requests for Test Rental public safety material. Marketing Communications

• Scheduled a total of 41 webinars for FY20 and to date, have conducted 39 of those webinars. The 39 webinars generated 13,658 registrations, and 8,460 attendees. It should be noted that attendance is actually higher, as many agencies attend webinars in groups under a single login. The increased number of webinars reflects increased use of webinars as a cost-efficient way to reach large numbers of people, and additional webinars scheduled in response to shelter in place orders – we held a number of webinars on topics surrounding remote work and remote services.

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• From 7/1/19 – 6/30/20, CPS HR was scheduled to exhibit at and/or sponsor 35 tradeshows and conferences. Of those, 11 have been cancelled due to the COVID19 pandemic. • From 7/1/19 – 5/21/20, CPS HR distributed 176 HTML email campaigns accounting for 1,250,960 emails sent to promote products/services, client conference, webinars, and company announcements.

Website

• Incorporated video on website homepage to provide additional branding. • Created three micro-site pages for targeted services. • Created page templates for organizational blog posts. • Created separate site for notary information and registration to separate notary function from core consulting competencies and allow for re-targeting ad campaigns. • Installed Google Analytics to properly assess traffic. • Created email subscription form to opt-in to receive communication from CPS HR Consulting on various products and services.

Social Media - July 1, 2019 – April 30, 2020 Facebook: ▪ CPS HR’s audience grew 1% from 7/1/19 to 4/30/20. Total page likes are now 1,839. ▪ There were 143 posts from 7/1/19 to 4/30/20. Twitter: ▪ Followers increased 3% from 829 on 7/1/19 to 859 followers as of 4/30/20. A total of 151 tweets were posted during this time period. ▪ There was a total of 64,025 impressions and 469 engagements – clicks, retweets, replies, follows and favorites. LinkedIn: ▪ CPS HR’s LinkedIn audience grew by 35% with 657 new followers from 7/1/19 to 4/30/2020. Total page followers are now 2,516. ▪ There were 172 posts with 1,658 clicks and 58,868 total impressions throughout the time period. There was also an average of 16.7 interactions per post. ▪ Two sponsored campaigns ran in May 2020 to promote Remote Services in a time of COVID-19. The sponsored posts provided 7,811 impressions for 44 clicks. In addition, the InMail campaign provided 348 highly targeted messages with 20 clicks for an overall Click to Open Rate of 5.75%.

Proposals

• As of 5/19/20, 1045 requests have been received and 761 proposals have been produced and submitted, approximately the same amount as in FY19. Non-Training proposals have increased slightly from 578 to 613 proposals for the same time period. • As of 5/19/20, CPS HR’s proposal win rate is at 63.5%, slightly above FY19’s 62.8% for the same time period and under our goal of 65%. The win rate for Full & Open proposals stands at 34.3% as of this date, short of our 40% goal. Proposals awarded during FY20 have totaled $11.1M to date from 297 opportunities. Of our Qualified Leads, 84% resulted in a proposal; 54% of these proposals resulted in awarded work worth an estimated $7.8M.

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Client Satisfaction • Through 4/30/20, CPS HR’s overall Client Satisfaction (CSAT) score registers 4.31, on a 5-point scale, meeting our goal of 4.3.

Human Resources Department

• The Human Resources Team has worked diligently on the build out on the Talent Module of the Microsoft 365 Dynamics system. It has been a massive undertaking that is continuing in collaboration with the Fiscal and IT Teams. There have been ongoing months of discovery and testing and the implementation continues. Other modules that were not used last year are in the scoping phase for implementation in the coming year for performance management and open enrollment. • We have begun partnerships with NxtGov for networking in Sacramento and Jibe Mobility to promote healthy habits in the workplace. The CHRO continues to write articles for publication on Forbes to provide more visibility for our organization. • We hosted our second virtual job fair and provided support or the on site job fair in partnership with the State Practice Leader. • We continue to support the efforts of Products and Services in the client space by providing expertise in the areas of Classification and Compensation, salary surveys, job analysis, performance management and human resource operations performance audits for various projects. • With be advent of the Corona Virus, the team quickly made resources and information available for all staff. The CHRO did an in-service training for “Families First Corona Response Act” (FFCRA) and put a procedure in place for employees to use this benefit. • HR published telework guides for both managers and employees. The guides are comprehensive handbooks that provide tools and tips on working remotely whether they are experienced with telework or new to it. • HR coordinated opportunities for employees to socialize within the organization for Halloween, Valentine’s Day and other special events in the office. After the office closure, we began hosting a weekly “Midweek Mingle” that is an all staff meeting on Teams to socialize during lunch and stay connected with each other. • The CHRO hosted a record setting webinar or “Mental Health Awareness” in the workplace. The response was overwhelming. It was the highest number of registrants and participants for any HR Webinar! We will continue to highlight this important topic and provide more focus and training in the post-Corona era. • In partnership with the Marketing and Employer Branding Manager, the CHRO produces and hosts our new podcast “Work/Life UnBalanced” which focuses on HR matters. The show is dedicated to helping listeners understand employment matters by host’s discussion or with different guests. Most recently, they have used their platform to produce and launch a leadership development series with the National Association of State Personnel Executives (NASPE).

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Attachment 11

DATE: June 12, 2020

TO: CPS HR Consulting Board of Directors

FROM: Jerry Greenwell, CEO

PREPARED BY: Eric Brown, Sr. HR Consultant

SUBJECT: Diversity Report – Update

ACTION REQUESTED:

X Information Item

RELATIONSHIP TO BUSINESS PLAN: CPS HR values diversity of people and ideas and believes that a diverse workforce can enhance our ability to provide quality products and services to our clients.

DISCUSSION:

In June of each year, the Board receives an updated look at the demographics of the CPS HR workforce. This report provides CPS HR workforce data, as well as comparative information on the collective civilian labor force for 2018 obtained from the U.S. Department of Labor. This is the most current data available. Details are displayed on the following pages.

The CPS HR workforce is predominantly female and white. Year over year, targeted outreach efforts have translated into diversifying the workforce. Consider the gains in groups identifying as Black and All Other*. Sustaining outreach efforts will certainly factor into achieving workforce diversity.

Below is a comparison of CPS HR against the most recently available U.S. data:

Below is a comparison of CPS HR against the most recently available U.S. data: U.S. 2018 CPS 2016 CPS 2017 CPS 2018 CPS 2019 CPS 2020 Female 57% 65% 69% 68% 69% 66% White 78% 72% 65% 64.6% 62.8% 60% Black 13% 4% 4% 4.3% 5.8% 6.9% Asian 6% 11% 12% 12% 13.2% 12.2% Hispanic 17% 7% 10% 10.3% 10.7% 10.4% All Other* 4% 7% 9% 8.6% 7.4% 9.6% *Includes those identifying as the categories of American Indian, Native Hawaiian or other Pacific Islander, Two or More Races, and Decline to Answer.

Additional charts are on the pages that follow.

RECOMMENDATIONS: None – for information only. FISCAL IMPACT: There is no fiscal impact associated with this informational item.

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Attachment 12

DATE: June 12, 2020

TO: CPS HR Consulting Board of Directors

FROM: Jerry Greenwell, CEO

PREPARED BY: Geralyn Gorshing, Director of Marketing and Business Development

SUBJECT: Client Satisfaction Update

ACTION REQUESTED:

__X__ Information Item _____ Approval and/or Authorization _____ Policy Change or Adoption _____ Closed Session Item

RELATIONSHIP TO BUSINESS PLAN:

CPS HR Consulting strives to provide exceptional products and services that exceed client expectations. To measure success in the area of Care for Our Customers, one of our three Guiding Values, CPS HR Consulting conducts a client satisfaction survey following every client engagement. The surveys give customers a chance to voice their concerns or sing our praises. The information garnered from the surveys is used for corrective action and on-going continuous improvement.

DISCUSSION:

CPS HR Consulting set an aggressive goal of a 4.3 client satisfaction rating. All markets/service areas saw an increase in client satisfaction ratings this past year. At the request of the board, client satisfaction survey results are provided below.

State 4 .23 Local 4.54 Emerging 4.57 Test Rental 4.23 Training 4.55

Overall client satisfaction rating 4.31 (up from 4.24 in FY19).

RECOMMENDATIONS: None, for information only.

FISCAL IMPACT: None, no expense will be incurred.

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Attachment 13

DATE: June 12, 2020

TO: CPS HR Consulting Board of Directors

FROM: Jerry Greenwell, CEO

PREPARED BY: Dana Henderson, Executive Assistant

SUBJECT: Return to Board Funds Update

ACTION REQUESTED:

__x__ Information Item _____ Approval and/or Authorization _____ Policy Change or Adoption _____ Closed Session Item

RELATIONSHIP TO BUSINESS PLAN: This fund is provided to assist Board members with internal initiatives to promote Human Resources within Board member organizations. Funds go toward improvement of management, culture or HR function of the organization. These funds are a part of the investment CPS HR makes in our Board member agencies from the Professional and Community Investment Fund.

DISCUSSION: The March 2020 meeting was cancelled and is normally when the Return to Board (RTB) funding is discussed and approved by the organization. The current funding period for RTB is April 2020– March 2021. Given the current and projected financial situation we have not allocated funding for RTB in the FY21 budget. We hope to be in position to resume this benefit in FY22.

RECOMMENDATIONS:

None, for information only.

FISCAL IMPACT:

The fiscal impact varies from year to year based on ability to fund.

__X__1) Sufficient revenue does not exist to support this action (OMS budget)

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Attachment 14

DATE: June 12, 2020

TO: CPS HR Consulting Board of Directors

FROM: Jerry Greenwell, CEO

PREPARED BY: Jerry Greenwell, CEO

SUBJECT: Board Recruitment Discussion

ACTION REQUESTED: (Check those most applicable)

__X__ Information Item _____ Approval and/or Authorization _____ Policy Change or Adoption _____ Closed Session Item

RELATIONSHIP TO BUSINESS PLAN:

This item is related to the Board Governance structure and membership.

DISCUSSION

The withdrawal of EBMUD created a vacancy on the CPS HR Board of Directors. Based on the JPA agreement as revised and approved by the Board in March 2009, the Board determines the number of members on the Board with no specific number of members being required. CPS conducted outreach and 4 agencies applied for membership in the JPA. After a review and vetting process, the City and County of was invited to join the Board. They accepted; however we are still awaiting written confirmation from the CAO of the agency to complete the process. With the disruptions caused by the current crisis, I don’t anticipate any activity until late summer and would hope to have onboarded the new agency by the fall Board meeting.

RECOMMENDATIONS: None – for information only.

FISCAL IMPACT: None – for information only.

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