HomeMy WebLinkAboutOrdinance 4495 ORDINANCE NO. 4495
AN ORDINANCE WAIVING THE REQUIREMENTS-OF FORMAL
COMPETITIVE BIDDING AND APPROVING A PROPOSAL
FROM THE HAYGROUP IN AN AMOUNT NOT TO EXCEED
EIGHTEEN THOUSAND DOLLARS ($18,000.00) TO CONDUCT A
WAGE SURVEY; AND APPROVING A PROJECT
CONTINGENCY OF ONE THOUSAND FIVE HUNDRED
DOLLARS ($1,500.00).
WHEREAS, the HayGroup's position grading system, the Hay Guide
Chart and Profile Methodology® form the foundation of the City's non-
uniformed compensation system, and;
WHEREAS, the HayGroup is the only vendor capable of providing these
systems and methodologies, and;
WHEREAS, the City Council of the City of Fayetteville, Arkansas finds
that such circumstances constitute an exceptional situation where competitive
bidding is not feasible or practical.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF FAYETTEVILLE, ARKANSAS:
Section 1 . That the City Council of the City of Fayetteville, Arkansas
hereby waives the requirements of formal competitive bidding and approves a
proposal from the HayGroup in an amount not to exceed Eighteen Thousand
Dollars ($18,000.00) to conduct a wage survey.
Section 2. That the City Council of the City of Fayetteville, Arkansas
hereby approves a project contingency of One Thousand Five Hundred Dollars
($1,500.00).
. . PASSED AND APPROVED this 17th day of June, 2003.
F PYE /l
APPRt)1
t `+` • ��d qac T
By:
DAN GOODY, May
T: A
/6l sy
a , SONDRA SMITH, City Clerk
Ord Yy4s
CONTRACT
The City of Fayetteville, Arkansas (hereinafter "Fayetteville") and Hay Group,
Inc. agree as follows:
The City of Fayetteville agrees to hire the Hay Group, Inc. to accomplish the
Salary Survey Project Steps as set forth in the letter of June 27, 2003, to Michele
Bechhold from Jodi Francis of the Hay Group, Inc. (attached as Exhibit A to this
Contract).
The City of Fayetteville agrees to pay the Hay Group, Inc. a contingency amount
not to exceed $ 1 ,500 for reimbursement of incurred travel expenses — a maximum of
$500 per consultant, per trip, not to exceed 3 trips for this Salary Survey Project.
The City of Fayetteville agrees to pay and the Hay Group, Inc. agrees to accept
the sum of Eighteen Thousand Dollars ($ 18,000.00) as full payment to accomplish all
Salary Survey Project Steps outlined in the June 27, 2003 letter (Exhibit A).
The City of Fayetteville will pay the Hay Group, Inc. Nine Thousand Dollars
($9,000.00) upon full execution of this contract by both parties. Fayetteville will pay Hay
Group, Inc. the second Nine Thousand Dollar ($9,000.00) payment upon its satisfactory
completion of all Salary Survey Project Steps as stated in Exhibit A including receipt by
Fayetteville of the Hay Group, Inc. 's final report with recommendations.
Presented by: Agreed to and accepted by:
Hay Group, Inc. City of Fayetteville
J6di Francis Dan Coody, Mayor
Datfi Date
Hay Group, Inc. • •
8350 N. Central Expressway
Suite 825
Dallas, TX 75206
June 27, 2003 EXHIBIT A
HayGroup Michele Bechhold
Director of Human Resources
City of Fayetteville
113 West Mountain
Fayetteville, AR 72701
Dear Michele:
Hay Group will be happy to provide a market analysis for the City of Fayetteville.
The cost to provide this analysis will be $ 18,000 plus expenses (max $500 per
consultant, per trip, not to exceed 3 trips). This analysis will consist of:
♦ Current Pay structure for police and fire vs. comparisori Cities (similar to 2002)
♦ Comparison of non-uniform positions vs. municipal survey Cities (similar to
2002)
♦ Comparison of non-uniform positions vs. NOARK survey (positions matched by
your internal HR team)
♦ Recommendations for structure and/or merit increase budget for 2004
♦ Presentation to City Council
Let me know when you are ready to begin the project. As you know, due to the
amount of time it takes to receive market data from comparison cities, the sooner we
are able to begin this process, the better our opportunity to gather the most data.
Sincerely,
o
dS �rmne�d
Jodi L. Francis
Consultant
Southwest Regional Office — Hay Group
Tel + 1 .469.232.3800 Fax + 1 .469.232.3888 www.haygroup.com
FAYETTEVI PLE
THE OTY OF FAYETTEVIELE, ARKANSAS
DEPARTMENTAL CORRESPONDENCE
To: Michele Bechhold
Human Resources
From: Clarice Buffalohead-Pearman
City Clerk's Division
Date: July 22, 2003
Re: Hay Group, Inc.
Attached hereto is a copy of the above referenced agreement for the Salary Survey Project. The
original ordinance will be microfilmed and filed in the city clerk's office. If anything else is needed
please let the city clerk's office know.
/cbp
Attachment(s)
cc: Nancy Smith, Internal Auditor
NAME OF FILE: Ord. No. "95
CROSS REFERENCE:
Item # Date Document
1 06/03/03 10rd. No. 4495
2 06/05/03 1 Staff Review Form w/attachments:
draft ordinance
memo to mayor city/council
copy of Itr to Michele Bechhold
copy of email to Michele Bechhold
3 06/20/03 Imemo to Michele Bechhold
NOTES:
FAYETTEVTLLE •
THE CITY OF FAYETTEVILLE. ARKANSAS
DEPARTMENTAL CORRESPONDENCE
To: Michele Bechhold '
Human Resources
From: Clarice Buffalohead-Pearman v
City Clerk's Division
Date: June 20; 2003
Re: Ordinance 4495
Attached hereto is a copy of the above ordinance passed by the City Council, June 17, 20031
waiving the requirements of formal competitive bidding for HayGroup, to conduct a wage survey.
The original ordinance will be microfilmed and filed in the city clerk's office. If anything else is
needed please let the city clerk's office know.
lcbp
Attachment(s)
cc: Nancy Smith, Internal Auditor
6 �
STA F REVIEW FORM - FINANCIAL OBLIGARON uC' pp
XX AGENDA REQUEST /-► yl�
CONTRACT REVIEW F 44Y r
GRANT REVIEW ufQ2v
For the Fayetteville City Council Meeting of : June 17, 2003
FROM :
Michele Bechhold Human Resources Finance & Internal Services
Name Division Department
ACTION REQUIRED : Approve a contract with the HayGroup in the amount of $18,000.00 to conduct a salary
survey and a project contingency amount of $ 1500.00. Staff also requests approval of a bid waiver.
COST TO CITY :
Not to exceed $ 19 , 500 $ 180000 . 00 Professional Services
Cost of this request Category/ Project Budget Program Category / Project Name
1010 1210 5314 00 $ - Human Resources
Account Number Funds Used to Date Program / Project Category Name
$ 180000 . 00 General
Project Number Remaining Balance Fund Name
BUDGET REVIEW : Budgeted Item Budget Adjustment Attached
LQQ S (0 3
Budget Manager Date
CONTRACT/GRANT/LEASE REVIEW :
_J& �� n a uc a cC4 , 6, 1S (03
Accounting Manager Date Internal Audi tor Date
4(16z&ff 2v Z(�-Q 15 03
City Att rney to Purchasing Manager Date
STAFFC ONDA O �.
� Received in Mayor ' s Office
Division Head Date Date )r1
Cross Reference :
Department Director Date
Previous Ord/Res# :
Fina & I r Servi Dir . Date Orig . Contract Date :
Orig . Contract Number :
Chief Administrative Officer Date
New Item :RECEIVED Yes No
Mayor Date JUN 0 5 2003
CITY OF FAYETTEVILLE
'NnY CLERK'S OFFICE
• Staff Review Form - Page 2 •
Description Meeting Date June 17 , 2003
Comments : Reference Comments :
Budget Manager
Accounting Manager
City Attorney
Purchasing Manager
ADA Coordinator
Internal Auditor
Grants Coordinator
ORDINANCE NO.
AN ORDINANCE WAIVING THE REQUIREMENTS OF FORMAL
COMPETITIVE BIDDING AND APPROVING A PROPOSAL
FROM THE HAYGROUP IN AN AMOUNT NOT TO EXCEED
EIGHTEEN THOUSAND DOLLARS ($18,000.00) TO CONDUCT A
WAGE SURVEY; AND APPROVING A PROJECT
CONTINGENCY OF ONE THOUSAND FIVE HUNDRED
DOLLARS ($1,500.00).
WHEREAS, the HayGroup's position grading system, the Hay Guide
Chart and Profile Methodology® form the foundation of the City's non-
uniformed compensation system, and;
WHEREAS, the HayGroup is the only vendor capable of providing these
systems and methodologies, and;
WHEREAS, the City Council of the City of Fayetteville, Arkansas finds
that such circumstances constitute an exceptional situation where competitive
bidding is not feasible or practical.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of the City of Fayetteville, Arkansas
hereby waives the requirements of formal competitive bidding and approves a
proposal from the HayGroup in an amount not to exceed Eighteen Thousand
Dollars ($18,000.00) to conduct a wage survey.
Section 2. That the City Council of the City of _FeeMt ff e, Ar " nsas
hereby approves a project contingency of One Thousand Five indred D llars
($1,500.00).
PASSED AND APPROVED this 17th day u e, 2003. i L
k
AP. ROVED:
By
A COODY, Mayor
A T:
By:
S`+ NDRAII ITHA Clerk
FAYETTEVI LLE
THE CITY OF FAYETTEVILLE, ARKANSAS
HUMAN RESOURCES DIVISION 113 W. Mountain St.
Fayetteville, AR 72701
Telephone: 479-575-8278
TO : Fayetteville City Council
THRU : Dan Coody, Mayor
Hugh Earnest, Chief Administrative Officer
Stephen Davis, Finance and Internal Services Director
FROM : Michele Bechhold , Human Resources Directorm B
DATE: June 4, 2003
SUBJECT: Response to City Council's Request for Information
BACKGROUND
At the Agenda Session on May 27, 2003, the Council removed an item regarding
a consulting contract with the HayGroup. Council also requested that Staff
present a menu of options regarding these projects. This memo is provided in
response to that request.
During this Agenda Session , the Council requested Staff conduct an RFP
process for a compensation consultant. Staff will begin the RFP process this fall
and plans to have a recommendation to City Council for a compensation
consultant during the first quarter of 2004.
CURRENT STATUS
In light of the upcoming RFP process, Staff is not presenting all of the project
items originally proposed on this menu . Two of the project items that were
originally proposed , the job evaluation audit and job evaluation training
workshops, were directly tied to the Hay's Guide Chart Methodology. Given the
fact that the City will be going through a bidding process later this year to identify
a compensation consultant, it would not be prudent to expend funds for these
items at this time. Staff also recommends delaying the performance
management discussion . The process of performance management should be
closely tied to the pay system and how that system is administered . Once the
City has determined what compensation system we will be utilizing, Staff will
propose addressing performance management again .
Based on the discussion at the Agenda Session , Staff is not proposing to
conduct a Benefits Analysis this year.
Staff is still proposing to conduct a salary survey this year. Based on our pay
plan's history, the non-uniformed employees expect a salary survey to be
conducted this year. We recognize the fact that it is possible that the survey
would result in no change to the pay ranges, however, Staff believes that we
should still expend funds for the survey. We will be better equipped to address
the morale issues that will result from holding the pay ranges steady if we have
checked the market and have data to support the decision .
Council is correct in stating that the 2002 survey included non-uniformed
positions. However, the 2002 survey did not include any examination of regional
data for non-uniformed employees. The original Oversight Committee developed
the survey group of cities, and they also determined that we would continue to
send a regional salary survey, commissioned by the NOARK Human Resources
Association , to Hay so that they could identify any regional pay issues that might
exist in the non-uniformed group. Conducting a salary survey this year would
provide the opportunity to include that regional data in the process.
We are presenting a menu of two options to conduct the salary survey. Each
option is outlined below. Both options would require a bid waiver.
Option 1
$ 18 ,000 HayGroup conducts the salary survey for Police, Fire and
non-uniformed positions using the selected survey group.
The City provides Hay with the NOARK survey results so
that any regional differences in the non-uniformed group can
be considered .
Option 2
$ 15,000 HayGroup conducts the salary survey for Police and Fire
using the selected survey group. The City provides Hay with
the NOARK survey results and the non-uniformed pay
ranges are compared to this market survey as they were
prior to the 2002 survey.
RECOMMENDATION
Staff recommends Option 1 in keeping with the survey methodology decided
upon by the Oversight Committee.
Hay Group, Inc.* •
8350 N. Central Expressway
Suite 825
Dallas, TX 75206
May 8, 2003
HayGroup Michele Bechhold
Director of Human Resources
City of Fayetteville
113 West Mountain
Fayetteville, AR 72701
Dear Michele,
Per our discussion this morning, Hay Group has revised the pricing for the compensation and
benefit survey and analysis project. The revised pricing quote is $43,000 for the combined
survey and analysis ($25,000 for the benefit portion and $ 18,000 for the compensation
portion).
Hopefully the revised pricing will assist you in budgeting approval. I look forward to
moving forward and getting started on the projects as outlined. hi the meantime, please let
me know if you need any further information.
Sincerely,
Jodi L. Francis
Consultant
Tel + 1 .469.232.3800 Fax + 1 .469.232.3888 www.haygroup.com