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Home My WebLink AboutOrdinance 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