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HomeMy WebLinkAbout70-89 RESOLUTION70-89 RESOLUTION NO. A RESOLUTION; AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A LEASE AGREEMENT WITH THE HOLIDAY INN CONVENTION CENTER OF SPRINGDALE, ARKANSAS FOR DIRECT -DIAL TELEPHONE SPACE AT THE FAYETTEVILLE AIRPORT TERMINAL BUILDING._. • f BE IT RESOLVED' BY THE BOARD, OF DIRECTORS OF THE'CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That'the Board•of Directors hereby authorizes the Mayor and City Clerk}to execute•a one (1) -year lease agreement with the Holiday Inn Convention Center of Springdale, Arkansas for direct -dial telephone space No. 5 at the Fayetteville Airport Terminal Building. ,`f — - Section 2. The term of said lease shall be from September 1, 1989 through August 31, 1990, at the rate of $20.00 per month. A copy of the lease agreement authorized for execution hereby is attached marked "Exhibit A" and made a part hereof. PASSED AND APPROVED this 15th day of August , 1989. ATTEST By: / l,j(elierk Est z. / Y :rte-� / .C' ell C'�£.-=- s„reproWE z APPROVED • BY: (?.../i erAe 7 .2 Mayor / 2.321 MICROFILMED LEASE AGREEMENT This LEASE AGREEMENT executed this 6th day of July 19 198By and between the City of Fayetteville, Arkansas, hereinafter called "lessor", and new Holiday Inn Convention Center hereinafter called "Lessee". WHEREAS, Lessor has available for lease at the Fayetteville Airport Terminal Building space for a direct ai.port-hotel/motel telephone: WHEREAS, Lessee desires to lease said space from Lessor. NOW, THEREFORE, in consideration of the mutual covenants contained herein the parties hereby agree as follows: 1. Lessor hereby leases to Lessee, and Lessee hereby leases frau Lessor, that certain air-hotel/motel direct phone service at the Fayetteville Airport Terminal Building depicted on Exhibit "An attached hereto and made a parthereof. Said space consists of one section identified as direct phone space number 5 2. Lessee agrees that its direct phone accompanying advertisement will measure x.4" 3. Term. The initial term of this agreement shall be for a period of one year commencing on the ' ..2) day of f , 19 89r and ending on the " - day of , 1990 at 12:00 p.m. This agreement may be extended for up to 5 additional one year teens in accordance with the following procedure: At least 60 days prior to the scheduled termination date, Lessor shall give Lessee written notice of the monthly rent payable in the extended term; at least 30 days prior to the termination date, Lessee shall give Lessor written notice if Lessee exercises this option to extend. 4. Removal of direct phone and accompanying advertisement: Upon termination or cancellation of this agreement, Lessee shall imne diatelyt.remove_the direct 4. phone and accompanying -advertisement, in a workmanlike manner. In the event Lessee fails to remove its direct phone and advertisement within five (5) days from the termination or cancellation date, said direct phone and advertisement shall be -2 - deemed abandoned and shall become the property of Lessor and Lessor shall have the right to remove and dispose of said material. 5. Maintenance: The City shall maintain and clean the direct phone carrousel. The City shall have .the right, at its discretion, to perform necessary maintenance of any repairs to the direct phone and accompanying advertisement in order to maintain a high standard of appearance; the cost of such maintenance of repairs shall be paid by Lessee within fifteen (15) days from receipt of a statement therefore from Lessor. 6. The direct phone and accompanying advertisement shall not be placed on the direct phone carrousel leased hereby to Lessee without the prior approval of Lessor's Airport Committee. Lessee agrees that Lessor's Airport Committee may disapprove any proposed phone style and/or advertising material which Lessor's Airport Committee determines would be detrimental to the operation of the Airport. In the event the Airport Committee disapproves a proposed phone style and/or adver- tisement, the Airport Manager shall state in writing to Lessee the reasons the proposed phone style and/or advertisement would be detrimental to the operation of the Airport. The Airport Committee and the Fayette- ville Board of Directors shall have the right to refuse to approve any proposed phone style and/or advertisement, which is found to violate any federal, state, or local law or which is found to infringe upon any copyright or trademark. 7. The City shall provide random surveillance during normal Airport operation hours in order to protect Lessee's direct phone carrousel space against damage from vandalism or trespass, but Lessor shall not be liable to Lessee for any such damage. Lessor shall imme- diately report to Lessee the discovery of any damage to Lessee's carrousel space. 8. In the event Lessee, through no fault of its own, is deprived from using the direct phone carrousel leased hereby, or if the public is denied normal access to the Airport Terminal Building during regular working hours, the consideration payable Lessor by Lessee under this 2.33 -3 - lease shall be adjusted downward on a pro -rata basis for the period of such deprivation or denial. Should such deprivation or denial continue for ninety (90) calendar days Lessee may terminate this lease as of the original date of such deprivation or denial by giving Lessor written notice of termination. 9. .Consideration: As consideration for use of the demised premises, Lessee agrees to pay Lessor for the term of this lease the sum of $ 80.00 per month/or $ 20.00 per month if Lessee leases an advertising space in the terminal building (whichever is applicable) payable in advance on or before the first day of each month. If any monthly payment due Lessor is not received by the 10th day of the month Lessee shall pay a. late charge equivalent to ten (10) percent of the monthly installment due. If the monthly installment plus late charge are not received by the 30th day of the month, this lease shall automatically be terminated and Lessee shall have the right to remove the direct phone and accompanying advertisement from the direct phone carrousel space leased hereby. Upon execution of this lease agreement, Lessee shall deposit with Lessor a damage deposit in the amount of $ 50.00 , Said deposit, less expenses 'incurred by Lessor to repair damage caused by Lessee or Lessee's agents, employees, licensees, or invitees, and less costs incurred by Lessor to clean the display space leased hereby, shall be returned to Lessee upon termination or cancellation of this agreement. 10. Lessee shall not assign, transfer, pledge, or otherwise encumber this lease without the prior written approval of Lessor's Airport Manager. Lessee shall not sublet the demised premises and shall not allow the demised premises to be used for any purpose not authorized by this agreement, without the prior written approval of Lessor. -` 11. Lessee shall indemnify and hold Lessor harmless from and against any and all claims, demands, suits, judgments, costs and expenses asserted by any person or persons, including agents or employees of 2.34 • Lessor or Lessee, resulting from Lessee's use of the demised premises including, but not limited to, claims for death or personal injury to any person, loss or damage to property, and damages for libel, trademark or copyright infringement, or plagiarism. In the event any material or exhibit placed in the display space leased hereby is determined to be in violation of any federal, state or local law, Lessee shall immediately remove said material or exhibit and shall indemnify, defend and hold harmless Lessor and Lessor's employees and officials from all claims, damages and penalties which may arise therefrom. 12! Lessee shall not, on the grounds of race, color, creed, national origin, sex or handicap, discriminate or permit discrimination against any person or group of persons in any manner prohibited by Title VI of the Civil Rights Act of 1964 and Part 21 of the Regulations of the Office of the Secretary of Transportation as now worded or as may hereafter be amended. Lessee shall have the right to take such action as the United States government may direct to enforce this covenant. Nothing contained herein shall be construed to grant or authorize the granting of an exclusive right within the meaning of Section 308 of the Federal Aviation Act of 1958. 13. Lessee shall have the right to place, or have placed, at the Airport any advertisement or exhibit. 14. Termination by Lessor: In addition to any other right of termination contained herein, Lessor shall have the right to terminate this agreement in the event of any of the following: (a) The filing by Lessee of a voluntary petition in bankruptcy; (b) The adjudication of Lessee as a bankrupt pursuant to bankruptcy proceedings; (c) The appointment of a receiver of Lessee's assets; (d) The divestiture of Lessee's estate herein by operation of law; (e) -The abandonment by Lessee of the use of the demised premises; (f) Damage from any cause to the demised premises which damage makes said premises untenantable for 90 days. 2.35 -5- 15. Termination by Lessee: Lessee may terminate this agreement by giving written notice of termination to Lessor upon the occurrence of any of the following events' (a) The permanent abandonment of the Airport Terminal Building described in Exhibit "A" attached hereto and made a part hereof. (b) The lawful assumption by the United States government, or any authorized agency thereof, of the operation, control or use of the Airport in such a manner as to substantially restrict Lessee from using the demised premises for a period in excess of 90 days. (c) Issuance by any court of competent jurisdiction of an injunction preventing or restraining the use of the Airport Terminal Building for a period in excess of 90 calendar days. (d) Default by the City in the performance of any covenant contained herein and the failure of the City to remedy such default within 60 days after receipt of written notice from Lessee. 16. Notices: Notices to Lessor shall be sufficient if sent by certified mail, addressed to Lessor's Airport Manager at 113 West Mountain Street, Fayetteville, Arkansas 72701. Notices to Lessee shall be sufficient if sent by certified mail addressed to Lessee at Hiways 412 and new U.S. 71 Bypass, Springdale, Arkansas 72764 (phone: 751-8300) IN WITNESS WHEREOF the parties hereto have executed this agreement or. the year and date first above written. ATTEST By: C ATTEST CITY OF FAYETTEVILLE, ARKANSAS Lessor 13y Mayor Lessee By: Title: 0-41.14dow 2.36 8" Phone j13½'1 Figure 1. Restaurant Concourse to Baggage Claim 12.37 - 7 Individual airport-hotel/motel direct phone space. (entire carrousel houses 8 individual sections) Carrousel as seen if looking down from the top. 6/ 7 3 i/2 1 Direct phone spaces numbered 1-8. "Airport manager's offices Figure 2. s E ... -. 'f Baggage Claim "EXHIBIT "A" RESOLUTION NO. 72-89 e 7,3 A RESOLUTION AUTHORIZING AN AWARD OF CONTRACT FOR A NOT -TO -EXCEED FEE OF $60,000.00 TO THE HAY GROUP TO CONDUCT A PAY PLAN STUDY AND A REQUEST FOR A BUDGET ADJUSTMENT FROM FUNDS AVAILABLE FROM THE WORKER'S COMPENSATION PREMIUM TAX ACCOUNT. BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the Mayor and City Clerk are hereby authorized and directed to execute contract for a not -to -exceed fee of $60,000.00 to The Hay Group to conduct a pay plan study. A copy of the contract authorized for execution hereby is attached hereto marked Exhibit "A" and made a part hereof. Section 2. The Board of Directors hereby approves the budget adjustment attached hereto marked Exhibit "B" and made a part hereof. PASSED AND APPROVED this 15th day of August `x 1989. APPROVED • By: ATTEST Clerk 40, i7 -e;77/1; -'7,2efr • Mayor /% MICROFILMED PROFESSIONAL SERVICES CONTRACT The City of Fayetteville, Arkansas (the City) hereby requests and contracts with the Hay Group (the Contractor) to conduct a Compensation and Position Classification Study (the Study). The specific requirements of the Study are set out and described in the Hay Group's proposal to The City of Fayetteville, titled, a Proposal for Comprehensive Study of Compensation and Position Classification Systems (the Proposal), dated June, 1989, attached and hereby incorporated in this contract by reference, and amended below. On $"15-$/ , the City:> d, in regular session, voted to accept the Proposal and authorized the presentklMayor} r�u sj_� icy to enter into a contract with the Hay Group on behalf of the City to provide the service as described in the Proposal for fees and expenses as stated, not to exceed $60,000. In the event that the City decides to increase or modify the scope and or requirements of the Proposal, it is agreed that the professional fees and expenses will be mutually renegotiated to reflect these modifications. Invoices will be rendered monthly for the fees and expenses incurred in the period and are due within thirty days. The Study will commence on or around but not later than October 1, 1989 and will be completed within five months. This contract and the Proposal incorporated by reference constitute the complete agreement between the City and the Contractor. aZecaer,;/ Mayo` th7fzet For the City of Fayetteville, By: jV,1/ium V. Mart l Date: $-617 Attest: Arkansas Vice President For The Hay Group By: Richard D. Maus Date: 2C, M '? Amendments to Attached Proposal: • • • The number of interviews and desk audits will not exceed 35; • All job specifications that are still generally valid will be revised rather than totally rewritten; • Existing salary and benefits survey data will be used, rather than conducting a custom survey, or the City will administer a survey to supplement published surveys; • Word processing and revisions of new class specifications will be done by the City or local typists; • Point factor evaluations will be done in consulting offices in Dallas, eliminating several trips. Occasional on-site input by the Personnel Officer is suggested; • Selected data entry of information about jobs, evaluations, names, and current pay will be done by the City for use by the City and consultants. CITY OF FAYETTEVILLE Proposal for Comprehensive Study of Compensation and Position Classification Systems June 1989 Prepared By: Stanford S. Fader • Vice President Carlos J. Green III Senior Consultant is EACKGROUND_AND OBJECTIVES The City of Fayetteville is requesting assistance in performing a comprehensive review and study of its job descriptions, position classification program, pay plan, and benefits plans, which cover approximately 120 positions and 350 employees. Substantial changes have occurred in the City within the last five years, including a comprehensive reorganization. City services have expanded, departments have reorganized, program emphasis has changed, and positions have been restructured without corresponding changes in the formal classification and compensation systems since they were reviewed in 1986. Consequently, a thorough study of the position classification, pay and benefit plans is required to promote and assure internal equity in pay and maintain competitiveness in the external pay markets in which the City competes for qualified personnel. The City of Fayetteville is seeking assistance in developing a classification and compensation system that will accommodate changes in job content and organizational structure over time with the necessary supportive training and documentation to allow City staff to maintain the system with a minimum amount of administrative effort. The primary objectives of the proposed study are: o Group similar positions into appropriate classes on the basis of the duties and responsibilities of each position while ensuring the necessary degree of flexibility to withstand periods of organization change and job restructuring. o Determine internal relationships of classes to each other and examine the equity of pay within and among the positions within each class. o Determine the City's compensation position relative to pay and benefits in the competitive marketplace. o Train City employees to administer the classification and compensation systems with the aid of formal, written salary administration policies and procedures. HayGroup PHASE I: CLASSIFICATION STUDY 1. Project Planning and Initial DataJteauest The consultants will meet with appropriate City of Fayetteville staff to discuss the objectives of the study, the specific project steps, arrangements for interviews and meetings, and to identify materials to be furnished to the consultants. The consultants will design the Position Description Questionnaire which will be reviewed and approved before being administered to all employees. Usually a mass, written communication is distributed to all employees announcing the project and describing in appropriate detail what is being done, when and how. This type of communication often takes the form of a memo or letter to all employees. Other formats may also work well, and the decision about the most appropriate format will be made with City of Fayetteville project staff and approved at the project planning meeting. 2. Job Analysis Hay consultants will collect job content information using the following methods: o Management Interviews The City of Fayetteville will establish with the consultants an interview schedule with the five Department Directors for interviews of approximately 1-1/2 hours each. These interviews will provide the basis for the formal descriptions of these key jobs. In addition, the Division Heads (approximately 45 people) will be gathered in small groups for focus group sessions designed to provide the consultants with an understanding of their jobs, the entire organization, its structure, culture and management style, major challenges and major management goals and objectives. Each focus group should have eight or nine participants, and each session will last approximately 1-1/2 hours, and will be scheduled by City of Fayetteville personnel. o Position Description Questionnaire The City will administer the approved Position Description Questionnaire to all employees, using City staff as Job Analysts who will distribute the questionnaires, gather completed questionnaires, review for completeness and accuracy, and seek clarification from job holders when necessary. The completed .Position Description Questionnaires and existing position descriptions and background information will be reviewed and used throughout the project by the consultants. HayGroup 2 i i } o Field/Desk Audits The consultants will perform field and desk audits in cases where questionnaire information is unclear or incomplete. It is our experience that these audits are usually required for no more than 25% of the jobs. These audits may take the form of supervisory interviews, short personal interviews with incumbents, actual on-site observation of work, or telephone conversations with incumbents. 3. Classification Based on the completed Position Description Questionnaires and other available data, jobs will be assigned to classes based on job content so that jobs with similar content and requirements will be classed together. A complete list of all class assignments will be presented and reviewed carefully with appropriate City personnel to ensure the results are appropriate to the values and culture of the organization. This review will include alist showing movement of fobs from the current class structure to the new class structure. The completed position description questionnaires for each job in a cluster of similarly evaluated jobs will be consolidated into classification specifications developed based on the common elements of the jobs in the class. Classification specifications will be written for each job classification in the City of Fayetteville. The consultants will prepare and present a report showing the classification specifications and the allocation of jobs to classes for Department Directors, the Personnel Officer and the City Manager for their review and approval. !HayGroup PHASE II: PAY AND BENEFITS SURVEY 1 1. Job Evaluation Hay consultants will work with City of Fayetteville personnel to evaluate the City's job classes based on the class specifications. The Hay Guide Chart -Profile method of job evaluation will be used to assign points to the classes based on three factors which cover eight dimensions that are common to all jobs in varying degrees. The three factors and their dimensions are described as follows: Know How o Depth of Knowledge - considers the complexity of the skill or discipline required in the job, combined with the depth of knowledge needed for fully competent job performance. o Management Breadth - measures the size and diversity of functions or major segments of the organization which the job must manage. o Human Relations Skills - addresses the level of interpersonal skills needed. Problem Solving o Thinking Environment - considers the latitude afforded by the job to identify and solve problems, evaluate alternatives or create new approaches. o Thinking Challenge — measures the complexity and breadth of problems and the intensity of the thought process required to solve them. Accountability o Freedom to Act - considers the latitude the job has in terms of personal or procedural control and guidance in taking action and making or implementing decisions. o Impact - addresses the job's impact on desired end results. o Magnitude - measures the resources over which the job has control, along with the type of impact. HayGroup 4 The job evaluation process can be completed in one of' two ways: Alternative 1: The consultants will evaluate the classes, assigning points to each classification and preparing a report explaining the methodology used and the range of points for each classification. This report would be presented and approved by appropriate City of Fayetteville personnel. Alternative 2: The consultants will train and work with a job evaluation committee composed of a cross section of City of Fayetteville personnel, who will evaluate the classes and assign points to each classification. Hay consultants will then prepare and present a report explaining the methodology used and the range of points .for each classification for approval of the City of Fayetteville. Alternative 1 would be the fastest, and therefore the least expensive, of the two alternatives. Alternative 2 offers the City the additional value of having several people within the organization familiar with the Hay Guide Chart -Profile method of job evaluation and provides significant input and ownership in the process. A unique feature of the Hay Guide Chart -Profile method is its ability to compare pay on the basis of job content across disciplines and between classes. The primary outcomes of this method of Job evaluation are: o An internal ranking of classes that also measures and quantifies the distances within and between classes o A quantitative framework for developing a salary structure that is both internally equitable and externally competitive o A system that is flexible and adaptive to organization and environmental changes o A direct link to Hay's proprietary data base containing thousands of jobs evaluated similarly to those of the City of Fayetteville, which furnishes information regarding the competitive market HayGroup 5 2. Compensation and Benefits Survey The consultants will design, administer, analyze and process a special compensation and benefits survey of selected organizations in the Fayetteville area, as well as other selected municipalities. The City will identify the organizations to be surveyed and assist in contacting participating organizations. A representative sample of jobs in all job categories (i.e. Police, Fire, Labor, Clerical, Professional, Managerial) will be included. Hay will evaluate survey participants' jobs according to the same job content criteria used when evaluating City of Fayetteville jobs to ensure accurate job matching with survey participants. This provides the basis for consistent comparisons taking into account differences in job content through the assignment of points to surveyed jobs, rather than just a simple title match. Using the findings from the survey, the consultants will meet with the City's Budget Coordinator, Assistant City Manager, and Assistant Administrative Services Director to 1) discuss the fiscal constraints on the City, and 2) determine the City's pay position relative to the different external markets through a detailed analysis of external competitiveness, and 3) identify current pay inequities which may require attention. 3. Salary Ranges Hay will develop an appropriate salary structure and salary ranges for all jobs covered by the study. This will include assignment of each class of positions to a pay grade, considering internal equity and market competitiveness issues as well as the fiscal environment in which the City operates. When the salary structure and ranges have been determined, the consultants will prepare and present a report for discussion and approval by the Personnel Officer and City Manager which describes the methodology used and itemizes the results of the class evaluations, including the point ranges assigned to each class. This report will also contain information about the estimated costs to the City of implementing the proposed new pay structure. 4. Program Management and Salary Administration Transfer of knowledge about the processes, procedures and systems to City personnel is imperative so they can easily and effectively administer the programs once they are implemented. Throughout the course of this project, communication and training between the City's project team and the consulting team will be a continuous, interactive and ongoing process so that the knowledge of the processes and procedures necessary to effectively administer the programs are completely transferred to City personnel. HayGroup 6 PRASE TTI: FORMAL REPORTS At the completion of Phases I and II, formal reports will be provided which will include a summary of the procedures and methodology used in developing the programs to that point. These reports will be reviewed with City staff, edited and consolidated for a formal presentation to the City's Board of Directors. A survey feedback report will be provided to all survey participants upon the completion of Step 1 of Phase II. This feedback report is one way of encouraging desired participants to dedicate their time and effort to completing the survey questionnaire and providing us with data. The consultants will draft recommended actions for guiding the day-to-day administration of the Position Classification and Pay Plans. Documentation regarding how the system can be maintained, including administrative procedures and guidelines will be provided to the City to ensure that the program can be effectively admini stered. • HayGroup 7 PROJECT COSTS Consulting fees are based on our best estimate of the time and consultant level required to deliver quality results as defined in our proposal. The following schedule shows the estimated range of fees associated with each of the major project phases. Consulting Fees Overhead PHASE I $22,000 $2,200 PHASE II $30,000-$35,000 $3,000-$3,500 PHASE III $4,250 $425 Hay Management Consultants agrees to provide the services described in this proposal for professional fees of $56,000 to $61,000, depending on which alternative is chosen in Phase II. This represents our best estimate of consulting time required to prepare documents which meet the highest standards of quality. Total estimated costs are further broken down as follows: 46 Professional Workdays X average of $1,250 per day $56,250 Fourteen trips to Fayetteville X $200 airfare 2,800 Twenty three days of hotel and meals at approx. $100 per day 2,300 Twenty three days of local car rental at approx. $40 per day 920 Overhead: 46 days X average of $125 per day 5,625 Computer expenses, graphics, other services 2.500 Total estimated charges, assuming Alternative 1 is chosen for the Job Evaluation step of Phase II $70,395 Additional estimated charges if Alternative 2 is chosen for the Job Evaluation step of Phase II $ 7,640 All out-of-pocket expenses are charged at cost, and the numbers quoted above represent our best estimate of expenses which will be billed to the City of Fayetteville. HayGroup 8 The fees quoted represent what Hay feels to be a realistic estimate of the time and expenses required to perform the project as outlined in the proposal. However, there are some alternative approaches which, if applied, could reduce the fees quoted. Some of those alternatives might be: o The consultants will train City of Fayetteville employees to revise or write classification specifications. This limits the time of consultants to training and quality control, thus reducing the cost of that step of the project, and increases City employees' involvement in the project. o Reduce the required number of interviews and job audits. We would be very willing to work with the City to determine a lower estimate of required interviews and audits which would still include a good cross sample of City employees. Please let us know you are interested in discussing these or other alternatives which will involve more City staff time in an effort to reduce the quoted fees. Fees will be billed to the City in three equal installments. Payment are due within 30 days of the invoice date. It is understood that if additional items are requested above those specified in the proposal, they will be billed at the average daily rate for the level of consulting expertise required. If at any time during the course of the assignment you fmd it necessary or desirable to terminate our services, you are free to do so and are only obligated to pay fees and expenses incurred up to that point. We will staff this project to assure that our services are of the highest quality and that you receive the best possible return on your investment. Biographical information on the Hay consulting team is included in this proposal. HayGroup 9 Hay Management Consultants is the largest human resources consulting firm in the world with a widely recognized expertise in compensation and surveys. Some points to consider regarding the unique ability of Hay to perform this study are: o The Hay approach measures job content against critical factors associated with job need and success, rather than simply ranking jobs by regressing demographic data such as organization level, years of experience or functional area. o The Hay method has been used by thousands of organizations worldwide and has been used by the courts as a method for evaluating nondiscrimination. o Hay professionals will be assigned to the project team based on their knowledge of the public sector and their fields of expertise. Hay Management Consultants are full time professionals in the human resources function and bring with them vast experience from the private and public sectors. This assures you highly qualified input regarding the multitude of human resource issues which inevitably surface during completion of a project of this scope. o Hay has substantial experience working in the public sector in the areas of compensation and classification systems, giving us the breadth of experience to assure successful project completion. o Hay's approach to job evaluation involves a full transfer of knowledge to representatives from the City of Fayetteville from the• consultants to maximize acceptance of the process and effective maintenance of the final programs. o Hay's approach to consulting is on -going and interactive. Our goal is to remain a source of service for each of our clients, assisting in implementation and maintenance of compensation plans long after the original installation of the system is• completed. In addition to the obvious savings resulting from gaining control of your payroll costs, other savings result from the intangible effects of your programs, such as: o A more efficient allocation of salary dollars o Provision of motivating recognition and reward to employees o Management training in compensation and salary administration o The development of an equitable and defensible system of relating pay to job content HayGroup 10 DESCRIPTION COMMENTS: BUDGET COORDINATOR � • STAFF REVIEW FORM MEETING DATE REFERENCE COMMENTS: ACCOUNTING MANAGER REFERENCE COMMENTS: dod.®� ern n � uLd4iY �9iunolaaa4C CITY ATTORNEY PURCHASING OFFICER ADA COORDINATOR INTERNAL AUDITOR Cr ku O t flrnc( 4-o Oh � 0AD14Tctt*� ? REFERENCE COMMENTS: REFERENCE COMMENTS: REFERENCE COMMENTS: REFERENCE COMMENTS: II PAGE 2 , FAYETTEVItLE - • THE. CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE TO: Peggy Vice, Purchasing Manager FROM: Don Bailey, Personnel Director , ,_— DATE: July 31, 1998 SUBJECT: RFP No. 98-5 Pay Plan Audit The City's, compensation pay plan system was purchased from and installed by the Hay. Management Group effective January 1990 pursuant to a professional service contract executed on 8-15-89 by the City Board. This pay plan is designed to be largely self administered by the City. However, the pay .plan is proprietary property of the Hay Group and the City does not actually own the process. Inherent in the original implementation was the understanding that Hay may be called upon from time to time to assist with system maintenance. This has occurred with the semi-annual salary survey analysis to update pay ranges. The pay plan at this point in time has been operating for eight years. We believe it appropriate that an outside audit of our current job evaluation be conducted to assess the accuracy and performance of the Personnel Committee's action in maintaining the system. The rational for this action is not unlike requesting a CPA to audit company books. The pay plan is a key element of control for the City's $15,000,000 payroll. Potentially a consultant with prior Hay System experience could perform such an audit. We therefore published RFP No. 98-5 requesting services. We received only one proposal, that being from the Hay Group. I believe the quoted fee to be reasonable and considering the excellent high quality services previously received the Selection Committee recommends their proposal be accepted. RFP NO. 98-4 REQUEST FOR PROPOSAL CITY OF FAYETTEVILLE, ARKANSAS PAY PLAN UPDATE The City of Fayetteville installed the Hay Guide -Chart methodology of job evaluation in the late 1980's and has been internally administering the job evaluation and salary administration program to the present. To ensure the salary administration program is being administered in a fair and consistent manner, the City believes an outside "audit" of the current evaluations, salary administrative guidelines and procedures is warranted.* The scope of the project will be: a) review current job descriptions and job evaluations for a sampling of jobs to ensure the guide -charts are being applied appropriately. b) review the current job documentation format to ensure it meets the requirements of the City. c) interview a select number of job holders to more accurately access job duties and responsibilities when necessary. d) review current salary administration guidelines to ensure practices and processes align with the needs of the City, and e) prepare a written report summarizing findings to the City. *PROPOSALS SUBMITTED MUST CLEARLY DEMONSTRATE KNOWLEDGE AND EXPERIENCE WITH THE SYSTEM UTILIZED BY THE CITY. Agencies submitting proposals should include along with their proposals the following information: Resumes of all project team members. A client reference list. Bid proposals will be considered based upon the ability of the agency to accomplish the objectives of the City of Fayetteville. The City of Fayetteville reserves the right to accept or reject any or all bid proposals, waive formalities in the bid process, and make a bid award deemed to be in the best interest of the City. Evaluation of the proposals are outlined in Section 13.05-A of the City of Fayetteville Professional Services Policy. Bid Proposals should be prepared simply and economically, providing a straight forward, concise description of the agency or firm's ability to meet the requirements for the contract. Each agency or firm must seal its proposal(s) in a separate envelope or box, and clearly. mark on the outside the following: 1. Name of the agency or firm 2. Address of agency or firm 3. "Pay Plan Update Services Contract - RFP NO. 98-4." Bid proposals must be sent to Peggy Vice, Purchasing Manager, 113 W. Mountain Street, Fayetteville, Arkansas 72701 and received no later than 5:00 p.m. on July, 13th, 1998. SELECTION METHODOLOGY The City of Fayetteville professional selection policy FUR 13 provides for the procurement of professional services based upon professional qualifications. A selection committee consisting of the Chief Financial Officer or representative, designated Department Directors, or other designated. City staff shall review and rate the submitted proposals. The proposals/qualifications will be evaluated based upon a point system using the percentages indicated below. The selection committee has established the following point levels with respect to this RFP. The relative weight of each requirement is indicated next to each item. 25 points (1) Qualifications in relation to specific project to be performed. 25 points.(2) Experience, competence, and capacity of performance. 25 points (3) Proposed method of doing work. 10 points (4) 15 points (5.) Past performance Price. Hay Management " nsultants North Central Plaz�iroe 12801 North Central Expressway Suite 1000 Dallas, TX 75243-1731 Tel: (972) 934-6800 Fax: (972) 458-6986 July 6, 1998 Confidential Hay Management Ms. Peggy Vice Consultants Purchasing Manager City of Fayetteville 113 W. Mountain Fayetteville, AR 72701 Subject: RFP No. 98-5 Dear Ms: Vice: 0 Per your Notice to Bidders, RFP No. 98-5, published in the July 3, 1998 Edition of the Northwest Arkansas Times, this letter will serve as our letter proposal to conduct a compensation audit for the City of Fayetteville. Background The . City of Fayetteville installed the Hay Guide -Chart methodology of job evaluation in the late 1980's and has been internally administering the job evaluation and salary administration program to the present. To ensure the salary administration program is being administered in a fair and consistent manner, the City believes an outside `audit' of the current evaluations, salary administrative guidelines and procedures is warranted. Therefore, the scope of the project would be to: a) review current job descriptions and job evaluations for a sampling of jobs to ensure the guide -charts are being applied appropriately, b) review the current job documentation format to ensure it meets the requirements for the City, c) interview a select number of job holders to more accurately access job duties and responsibilities when necessary, d) review current salary administration guidelines to ensure practices and processes align with the needs of the City, and e) prepare a written report summarizing our findings to the City. =1 Ms. Peggy Vice July 6, 1998 Page 2 The following outlines the project steps we would generally follow in this type of assignment: Phase 1 - Project Planning This most certainly would be a brief conference call between the Personnel Director and I to come to clear agreement as to the project scope, project schedule, data needed for an our assessment, etc. Phase II - Job Documentation Review• We anticipant that we would select approximately 40% of the jobs for review. The consultant would, on site, review this documentation, along with other pertinent data, to ascertain whether; a) the job appears to be properly evaluated, b) more information (i.e., an interview with either personnel or the job incumbent) is required, or c) the job is evaluated too high or too low. In- addition, during this phase we would review current the polices and procedures dealing with the compensation plan. This review would also be in the form of a 'desk audit' type activity. Time on site with client - 2 days Phase III - Job Holder Interviews As a result of the work in Phase II, it is likely that interviews with job holders will be necessary. We anticipate that approximately 30% of the jobs audited may require an interview session. The purpose of the interview would be to gather job content information (i.e., duties and responsibilities) from the job holder. Each interview should last no more than one hour. Time on site with client - 2 days Phase IV - Final Report Following the gather an analysis of all the information gathered in Phases II & III, we will prepare a written report of our findings for the City. Ms. Peggy Vice July 6, 1998 Page 3 Estimate of Fees We estimate fees for the project as outlined to be $16,000. This estimate does not include expenses associated with the project such as travel, lodging and meals. As noted in the project outline above we anticipate two separate two-day client site days as part of this project. I have attached some information about the HayGroup as well as a copy of by Bio. Please let me know if you need any additional information or call me if you have any questions. My direct telephone number is (972) 934-6843. Thank you. Sincerely, Paul Glogowski Consultant 1a Paul T. Glogowski Professional Expertise Mr. Glogowski is a Consultant in the Southwest Region of the Hay Group. His sixteen years of experience in the Human Resources field include the delivery of diverse compensation and benefits services in the electric, natural gas, and coal mining industries. Background Mr. Glogowski's corporate experience includes the development and implementation of various compensation programs including base pay plans for management, professional, hourly, and craft employees, company -wide gaining sharing programs, marketing and sales incentive programs with individual and team components. In addition, Mr. Glogowski has extensive experience in traditional market pricing and market analysis activities. Performance management design and implementation has also been an area of responsibility for Mr. Glogowski. Previous Experience Prior to joining Hay, Mr. Glogowski held the position of Compensation Manager for Texas Utilities Company (the fourth largest electric utility in the states). Other experiences at the utility included benefit administration, employee relations and EEO. Education Mr. Glogowski holds a Bachelor of Business Administration (Personnel Management) from the University of North Texas. Client Experience Mr. Glogowski has provided consulting services to a variety of clients including: City of Dallas Dallas County Darr Equipment JC Penney Kimberly Clark Tarrant County Texas Utilities University of Texas Medical Branch Hay Group S • J ' • CONSU TING With locations in 32 countries, the Competency -based Human Resources Planning and Development Hay Group is one of the world's No area today is as important as finding or preparing the right people for the right jobs. Hay/McBer, largest human resources manage- the human resources planning practice group within Hay, helps clients manage these critical human resources needs in the fallowing ways: ment consulting firms. Founded in Philadelphia in 1943, Hay pro- Selection and Assessment. Hay/McBer helps companies go well beyond the matching of a job title or description with a candidate's credentials and experience. Rather, consultants work with vides services in North America clients to discover the key competencies necessary for outstanding performance —and then find through a 26 -city network of the person who possesses these competencies. When appropriate, Hay/McBer also conducts offices. Full-time staff worldwide assessment centers for specific industries, as well as in-house centers. includes nearly 2000 top profes- The Hay/McBer Executive 360® approach uses subordinate, supervisor, and peer review to assess sionals and support employees, executives' capabilities. This not only compares individual competencies with those required for outstanding performance, but also gauges managerial style and that style's impact on the internal Hay serves more than 7,000 organizational climate. clients throughout the world, Performance Management. Hay/McBer helps create comprehensive, ongoing performance ranging from $1 million to over management systems that not only objectively measure how well individuals or teams perform, $300 billion in sales, and from but also evaluate how the results are achieved and, most importantly, how closely those results tie in to the organization's overall strategy and objectives. The process also measures individuals 35 to 250,000 employees. Hay and teams against a set of desired job competencies. Hay/McBer also trains managers to coach consults with clients in both the employees and create a climate that will enhance performance. public and private sectors, Development and Succession Planning. Hay/McBer uses proprietary techniques to determine including major manufacturers, exactly which competencies need to be developed at selected job levels or in specific parts of the financial, services companies, organization —and which people in the organization have what it takes to succeed in specific jobs. health care organizations, high- Hay can custom design and deliver training programs or identify the best programs commercial- ly available at the lowest cost. tech corporations, not -for -profits, and all levels ofgovernment. Hay/McBer Xcel® is a competency -based, computer -assisted process that streamlines the identi- fication of competencies in individuals and pinpoints their developmental needs. The following briefly describes The McBer Training Resources Group (TRG) provides self -scoring assessment and develop - Hay and the spectrum ofservices merit materials. the company offers. Compensation: Dynamic Pay Approaches The world of compensation is filled with many innovative" alternatives. The Hay Dynamic Pay`"' approach provides a structured method to make the correct compensation decisions —aligning reward programs with an organization's unique strategy and work culture. Compensation Design. Using Dynamic Pay "work culture models," Hay helps an organization deter- mine its current and future internal work culture. Then, based on what our research and experience have shown to be effective in a particular culture, we help the organization design the right reward pro- gram. This may include: team -based pay, pay for competencies, pay for quality, broadbanding, small group incentives, gainsharing, and many other innovative alternatives —Gs well as more traditional merit increase and salary administration programs that may be suited to the organization. Compensation Information. Supporting Hay compensation consulting are three of the most comprehensive surveys in this field. The Hay Compensation Report includes more than 1,000 3 Hrmn E U.S. organizations and 1.5 million jobs. The Hay Executive Compensation Report covers top positions in over 500 companies. The Hay Benefits Report is the most exten- sive survey of employee benefits in the U.S. Hays Compensation Information Center also conducts more than 50 industry and functional surveys each year. Job Measurement. Used as both a compen- sation and an organizational tool, job mea- surement helps organizations maintain internal equity in their pay programs, while ensuring external competitiveness. Hay offers the world's most adaptable and wide- ly used job measurement system: the Hay Guide Chart° -Profile Method of Job Evaluation. Hay now offers HRXperto, a flexible, computer -assisted technology that allows organizations to evaluate, describe, and price jobs quickly and efficiently. Benefits, Actuarial, and Communica— dons Services. Hay Benefits provides a complete range of benefits, actuarial, and communica- dons services to help clients design, imple- ment, and communicate attractive, cost- effective benefits programs. Innovative appli- cations of Hay Benefits proprietary software include designing non-traditional retirement and capital accumulation plans, streamlining benefits administration, and producing indi- vidualized benefits statements. Hay Benefits provides such additional ser- vices as deferred compensation planning for executives, competitive analyses of benefits, special benefits design, regulatory compli- ance, and merger and acquisition analyses. In addition, Hay Benefits designs and imple- ments employee communication programs across a broad spectrum of ass, including benefits, compensation, job structures, com- petencies, and strategic business plans. Employee Surveys and Culture Studies Almost all organizations today gather infor- mation from employees to help improve overall performance. Hay Research for Management (RM) maintains an Employee Attitude Database, comprising more than 2,000 organizations, that provides diem with crucial informa- tion on how their employee opinions com- pare with national, industry, and quality corn-pany norms. The firm's Business Culture Database also contains information from more than 200,000 managers. In addition to employee surveys and culture studies, RM performs sales force, customer satisfaction, service quality, and communi- sations studies. For all its surveys, RM uses individual and group interviews as well as questionnaires to collect critical informa- tion that then serves as a basis for planning and implementing organizational change. For more immediate feedback, clients can use HayPoll—RM; unique toudsrone tele- phone survey system. Organization Effectiveness An effective strategy requires the appropriate organization to support it Hay helps clients ensure that strategies are reflected in their organizational structures, communicated effectively throughout the organization, embraced by management, supported by the organization's internal cul- ture, and flexible enough to adapt to an ever -shifting business environment. Key areas include: structuring the organiza- tion, effectively managing the business, cus- tomizing management practices and sys- tems, and distributing resources between units and functions. Work Transformation Few industries have escaped the need to rethink their stmtegies—and then consider zeengineering' their work processes and the way employees approach their jobs. Hay helps companies with this "work trans- formation" process by: • designing jobs and reengineering work processes; • reinforcing quality initiatives; • designing new management systems; • creating more effi:ctive work cultures; and • coordinating new work processes with appropriate new reward and performance management systems. Seminars and Publications Hay conducts external seminars and confer- ences annually. These include Consulting Skills for the HR l;ofurionah Basic Guide Chart Cosine, and an executive breakfast series throughout the U.S. and in Canada Hay publications keep current and poten- tial clients informed on important develop- ments in key human resources areas. tendons IW ba slim ids 10hovrna N"Amsrhan d9ac AM.IPmh, M - Thewas wnm41r6uik4rg. 100 Penn Stemo Eat PhUdd9lda, PA 19107 _(215) 961.1909 Adadm U10aoL L. -*•Taradm Tm 9946500 (847) YJ63100 (416) 896.1871 ` L aopma - UUAnes" ymnaouamr : ;(617)4254500 (218 )6243921 (9)0 68242M W9arP 9heemwa10 d104ri10r0rt (4a3) 2154785 (612)3S1$55 (510) 945-8229 0411000 19ae40m1 •9apA10910n, 90 4104) 333-1591 (514)8669691 (201) 9316609 Lmp10 Nat YmiSt ' , -313) 228-1600 (201)457-9400 Pc ran Chm4mmd- Nmrtrdk -: (ius 641.0079: {915) 67&1160 r4i8):790.6m . 8rda ahem.:.: `10addrdda -. (971) 9348606 (913)-2394745 tdm an PYYNAN9m NriOgrarrers {4)487-4&48 (215)861-2090 Nahm¢ ?"NINN 4 {q{{k W-2685 (412)268-2810 urns Clb nodes ($14) M24656 (308)8$9.0181 _ "smah oMarciehgld10umg - - Afros on" -; Priem Auirad w hwd Rome -9arfAak f10a0raea_ _ Rmadx - 4drfe ' - Satrem ' SD Paulo Ludo firasinyhan 4W - :. -9srddidm -. 8ra16Nm S labor - whirl Alarm w - Stbry &mars ampule Tdga &AVW dads D7 Nome -6umoa ants 1dtl1 - wekingmn - -ceiari hmed411- WhIdsor -':oLft ass - :. - 1Nst oublin Puis Hindi -Frermurt Prding,a® No 010011 a 010► tit ts"Amra P.aom I.;€,::1m _ _ 4 1Y'1 tcIyt ti PROFESSIONAL SERVICES CONTRACT The City of Fayetteville, Arkansas (the City) hereby requests and contracts with the Hay Group (the Contractor) to conduct a Compensation and Position Classification Study (the Study). The specific requirements of the Study are set out and described in the Hay Group's proposal to The City of Fayetteville, titled, a Proposal for Comprehensive Study of Compensation and Position Classification Systems (the Proposal), dated June, 1989, attached and hereby incorporated in this contract by reference, and amended below. On S"IS$/ , the City Board:-, in regular session, voted to accent the Proposal and authorized the present Mayor to enter into a contract with the . Hay Group on behalf of the City to provide the service as described in the Proposal for fees and expenses as stated, not to exceed $60,000. In the event that the City decides to increase or modify the scope and or requirements of the Proposal, it is agreed that the professional fees and expenses will be mutually renegotiated to reflect these modifications. Invoices will be rendered monthly for the.fees and expenses incurred in the period and are due within thirty days. The Study will commence on or around but not later than October 1, 1989 and will be completed within five months. This contract and the Proposal incorporated by reference constitute the complete agreement between the City and the Contractor. �L�f� Mayor • • / Vice President For the City of Fayetteville, Arkansas For The Hay Group By: (NI(llam V. Mavfldl By: Richard D. Maus Date: Date: Attest: c4 Clerk Amendments to Attached Proposal: • The number of interviews and desk audits will not exceed 35; • All job specifications that are still generally valid will be revised rather than totally rewritten; • Existing salary and benefits survey data will be used, rather than conducting a custom survey, or the City will administer a survey to supplement published surveys; • Word processing and revisions of new class specifications will be done by the City or local typists; • Point factor evaluations will be done in consulting offices in Dallas, eliminating several trips. Occasional on -site input by the Personnel Officer is suggested; • Selected data entry of information about jobs, evaluations, names, and current pay will be done by the City for use by the City and consultants. w CITY OF FAYETFEVILLE Proposal for Comprehensive Study of Compensation and Position Classification Systems June 1989 Prepared By: Stanford S. Fader Vice President Carlos J. Green III Senior Consultant BACKGROUND AND OBJECTS The City of Fayetteville is requesting assistance in performing a comprehensive review and study of its job descriptions, position classification program, pay plan, and benefits plans, which cover approximately 120 positions and 350 employees. Substantial changes have occurred in the City within the last five years, including a comprehensive reorganization. City services have expanded, departments have reorganized, program emphasis has changed, and positions have been restructured without corresponding changes in the formal classification and compensation systems since they were reviewed in 1986. Consequently, a thorough study of the position classification, pay and benefit plans is required to promote and assure internal equity in pay and maintain competitiveness in the external pay markets in which the City competes for qualified personnel. The City of Fayetteville is seeking assistance in developing a classification and compensation system that will accommodate changes in job content and organizational structure over time with the necessary supportive training and documentation to allow City staff to maintain the system with a minimum amount of administrative effort. The primary objectives of the proposed study are: o Group similar positions into appropriate classes on the basis of the duties and responsibilities of each position while ensuring the necessary degree of flexibility to withstand periods of organization change and job restructuring. o Determine internal relationships of classes to each other and examine the equity of pay within and among the positions within each class. o Determine the Cit/s compensation position relative to pay and benefits in the competitive marketplace. o Train City employees to administer the classification and compensation systems with the aid of formal, written salary administration policies and procedures. HayGroup • S PHASE I: CLASSIFICATION STUDY 1. Project Planning and Initial Data Request 4 The consultants will meet with appropriate City of Fayetteville staff to discuss the objectives of the study, the specific project steps, arrangements for interviews and meetings, and to identify materials to be furnished to the consultants. The consultants will design the Position Description Questionnaire which will be reviewed and approved before being'administered to all employees. Usually a mass, written communication is distributed to all employees announcing the project and describing in appropriate detail what is being done, when and how. This type of communication often takes the form of a memo or letter to all employees. Other formats may also work well, and the decision about the most appropriate format will be made with City of Fayetteville project staff and approved at the project planning meeting. 2. Job Analysis Hay consultants will collect job content information using the following methods: Management Interviews The City of Fayetteville will establish with the consultants an interview schedule with the five Department Directors for interviews of approximately 1-1/2 hours each. These interviews will provide the basis for the formal descriptions of these key jobs. In addition, the Division Heads (approximately 45 people) will be gathered in small groups for focus group sessions designed to provide the consultants with an understanding of their jobs, the entire organization, its structure, culture and management style, major challenges and major management goals and objectives. Each focus group should have eight or nine participants, and each session will last approximately 1-1/2 hours, and will be scheduled by City of Fayetteville personnel. Position Description Questionnaire The City will administer the approved Position Description. Questionnaire to all employees, using City staff as Job Analysts who will distribute the questionnaires, gather completed questionnaires, review for completeness and accuracy, and seek clarification from job holders when necessary. The completed Position Description Questionnaires and existing position descriptions and background information will be reviewed and used throughout the project by the consultants. HayGroup 2 • Field/Desk Audits The consultants will perform field and desk audits in cases where questionnaire information is unclear or incomplete. It is our experience that these audits are usually required for no more than 25% of the jobs. These audits may take the form of supervisory interviews, short personal interviews with incumbents, actual on -site observation of work, or telephone conversations with incumbents. 3. Classification Based on the completed Position Description Questionnaires and other available data, jobs will be assigned to classes based on job content so that jobs with similar content and requirements will be classed together. A complete list of all class assignments will be presented and reviewed carefully with appropriate City personnel to ensure the results are appropriate to the values and culture of the organization. This review will include a list showing movement of jobs from the current class structure to the new class structure. The completed position description questionnaires for each job in a cluster of similarly evaluated jobs will be consolidated into classification specifications developed based on the common elements of the jobs in the class. Classification specifications will be written for each job classification in the City of Fayetteville. The consultants will prepare and present a report showing. the classification specifications and the allocation of jobs to classes for Department Directors, the Personnel Officer and the City Manager for their review and approval. HayGroup PHASE H: PAY AND BENEFITS SURVEY 1. Job Evaluation Hay consultants will work with City of Fayetteville personnel to evaluate the City's job classes based on the class specifications. The Hay Guide Chart -Profile method of job evaluation will be used to assign points to the classes based on three factors which cover eight dimensions that are common to all jobs in varying degrees. The three factors and their dimensions are described as follows: Know How o Depth of Knowledge - considers the complexity of the skill or discipline required in the job, combined with the depth of knowledge needed for fully competent job performance. o Management Breadth - measures the size and diversity of functions or major segments of the organization which the job must manage. o Human Relations Skills - addresses the level of interpersonal skills. needed. Problem Solving o Thinking Environment - considers the latitude afforded by the job to identify and solve problems, evaluate alternatives or create new approaches. o Thinking Challenge - measures the complexity and breadth of problems and the intensity of the thought process required to solve them. Accountability o Freedom to Act - considers the latitude the job has in terms of personal or procedural control and guidance in taking action and making or implementing decisions. o Impact - addresses the job's impact on desired end results. o Magnitude - measures the resources over which the job has control, along with the type of impact. R HayGroup 4 The job evaluation process can be completed in one of two ways: Alternative 1: The consultants will evaluate the classes, assigning points to each classification and preparing a report explaining the methodology used and the range of points for each classification. This report would be presented and approved by appropriate City of Fayetteville personnel. Alternative 2: The consultants will train and work with a job evaluation committee composed of a cross section of City of Fayetteville personnel, who will evaluate the classes and assign points to each classification. Hay consultants will then prepare and present a report explaining the methodology used and the range of points for each classification for approval of the City of Fayetteville. Alternative 1 would be the fastest, and therefore the least expensive, of the two alternatives. Alternative 2 offers the City the additional value of having several people within the organization familiar with the Hay Guide Chart -Profile method of job evaluation and provides significant input and ownership in the process. A unique feature of the Hay Guide Chart -Profile method is its ability to compare pay on the basis of job content across disciplines and between classes. The primary outcomes of this method of job evaluation are: o An internal ranking of classes that also measures and quantifies the distances within and between classes o A .quantitative framework for developing a salary structure that is both internally equitable and externally competitive o A system that is flexible and adaptive to organization and environmental changes o A direct link to Hay's proprietary data base containing thousands of jobs evaluated similarly to those of the City of Fayetteville, which furnishes information regarding the competitive market HayGroup 5 2. Compensation and Benefits Survey The consultants will design, administer, analyze and process a special compensation and benefits survey of selected organizations in the Fayetteville area, as well as other selected municipalities. The City will identify the organizations to be surveyed and assist in contacting participating organizations. A representative sample of jobs in all job categories (i.e. Police, Fire, Labor, Clerical, Professional, Managerial) will be included. Hay will evaluate survey participants' jobs according to the same job content criteria used when evaluating City of Fayetteville jobs to ensure accurate job matching with survey participants. This provides the basis for consistent comparisons taking into account differences in job content through the assignment of points to surveyed jobs, rather than just a simple title match. Using the findings from the survey, the consultants Budget Coordinator, Assistant City Manager, and Services Director to 1) discuss the fiscal constraints on the City's pay position relative to the different exi detailed analysis of external competitiveness, and inequities which may require attention. Salary Ranges will meet with the City's Assistant Administrative the City, and 2) determine vernal markets through a 3) identify current pay Hay will develop an appropriate salary structure and salary ranges for all jobs covered by the study. This will include assignment of each class of positions to a pay grade, considering internal equity and market competitiveness issues as well as the fiscal environment in which the City operates. When the salary structure and ranges have been determined, the consultants will prepare and present a report for discussion and approval by the Personnel Officer and City Manager which describes the methodology used and itemizes the results of the class evaluations, including the point ranges assigned to each class. This report will also contain information about the estimated costs to the City of implementing the proposed new pay structure. 4. Program Management and Salary Administration Transfer of knowledge about the processes, procedures and systems to City personnel is imperative so they can easily and effectively administer the programs once they are implemented. Throughout the course of this project, communication and training between the City's project team and the consulting team will be a continuous, interactive and ongoing process so that the knowledge of the processes and procedures necessary to effectively administer the programs are completely transferred to City personnel. HayGroup PHASE III: FORMAL REPORTS At the completion of Phases I and II, formal reports will be provided which will include a summary of the procedures and methodology used in developing the programs to that point. These reports will be reviewed with City staff, edited and consolidated for a formal presentation to the City's Board of Directors. A survey feedback report will be provided to all survey participants upon the completion of Step 1 of Phase II. This feedback report is one way of encouraging desired participants to dedicate their time and effort to completing the survey questionnaire and providing us with data. The consultants will draft recommended actionsfor guiding the day-to-day administration of the Position Classification and Pay Plans. Documentation regarding how the system can be maintained, including administrative procedures and guidelines will be provided to the City to ensure that the program can be effectively administered. a HayGroup 7 PROJECT COSTS Consulting fees are based on our best estimate of the time and consultant. level required to deliver quality results as defined in our proposal.. The following schedule shows the estimated range of fees associated with each of the major project phases. Consulting Fees Overhead PHASE I $22,000 $2,200 PHASE II $30,000-$35,000 $3,000-$3,500 PHASE III $4,250 $425 Hay Management Consultants agrees to provide the services described in this proposal for professional fees of $56,000 to $61,000, depending on which alternative is chosen in Phase II. This represents our best estimate of consulting time required to prepare documents which meet the highest standards of quality. Total estimated costs are further broken down as follows: 46 Professional Workdays X average of $1,250 per day $56,250 Fourteen trips to Fayetteville X $200 airfare 2,800 Twenty three days of hotel and meals at approx. $100 per day 2,300 Twenty three days of local car rental at approx. $40 per day 920 Overhead: 46 days X average of $125 per day 5,625 Computer expenses, graphics, other services 2.500 Total estimated charges, assuming Alternative 1 is chosen for the Job Evaluation step of Phase II $70,395 `Additional estimated charges if Alternative 2 is chosen for the Job Evaluation step of Phase II $ 7,640 All out-of-pocket expenses are charged at cost, and the numbers quoted above represent our best estimate of expenses which will be billed to the City of Fayetteville. - HayGroup F The fees quoted represent what Hay feels to be a realistic estimate of the time and expenses required to perform the project as outlined in the proposal. However, there are some alternative approaches which, if applied, could reduce the fees quoted. Some of those alternatives might be: The consultants will train City of Fayetteville employees to revise or write classification specifications. This limits the time of consultants to training and quality control, thus reducing the cost of that step of the project, and increases City employees' involvement in the project. Reduce the required number of interviews and job audits. We would be very willing to work with the City to determine a lower estimate of required interviews and audits which would still include a good cross sample of City employees. Please let us know you are interested in discussing these or other alternatives which will involve more City staff time in an effort to reduce the quoted fees. Fees will be billed to the City in three equal installments. Payment are due within 30 days of the invoice date. It is understood that if additional items are requested above those specified in the proposal, they will be billed at the average daily rate for the level of consulting expertise required. If at any time during the course of the assignment you find it necessary or desirable to terminate our services, you are free to do so and are only obligated to pay fees and expenses incurred up to that point. We will staff this project to assure that our services are of the highest quality and that you receive the best possible return on your investment. Biographical information on the Hay consulting team is included in this proposal. HayGroup 9 Hay Management Consultants is the largest human resources consulting firm in the world with a widely recognized expertise in compensation and surveys. Some points to consider regarding the unique ability of Hay to perform this study are: o The Hay approach measures job content against critical factors associated with job need and success, rather than simply ranking jobs by regressing demographic data such as organization level, years of experience or functional area. o The Hay method has been used by thousands of organizations worldwide and has been used by the courts as a method for evaluating nondiscrimination. o Hay professionals will be assigned to the project team based on their knowledge of the public sector and their fields of expertise. Hay Management Consultants are full time professionals in the human resources function and bring with them vast experience from the private and public sectors. This assures you highly qualified input regarding the multitude of human resource issues which inevitably surface during completion of a project of this scope. o ,Hay has substantial experience working in the public sector in the areas of compensation and classification systems, giving us the breadth of experience to assure successful project completion. o Hay's approach to job evaluation involves a full transfer of knowledge to representatives from the City of Fayetteville from the consultants to maximize acceptance of the process and effective maintenance of the final programs. o Hay's approach to consulting is on -going and interactive. Our goal is to remain • a source of service for each of our clients, assisting in implementation and maintenance of compensation plans long after the original installation of the system is completed. In addition to the obvious savings resulting from gaining control of your payroll costs, other savings result from the intangible effects of your programs, such as: o A more efficient allocation of salary dollars -_ o Provision of motivating recognition and reward to employees o Management training in compensation and salary administration o The development of an equitable and defensible system of relating pay to job content HayGroup 10 July 6, 1998 Confidential Hay Management Ms. Peggy Vice Consultants Purchasing Manager City of Fayetteville 113 W. Mountain Fayetteville, AR 72701 Subject: RFP No. 98-5 Dear Ms. Vice: Per your Notice to Bidders, RFP No. 98-5, published in the July 3, 1998 Edition of the Northwest Arkansas Times, this letter will serve as our letter proposal to conduct a compensation audit for the City of Fayetteville. Background The City of Fayetteville installed the Hay Guide -Chart methodology of job evaluation in the. late 1980's and has been internally administering the job evaluation and salary administration program to the present. To ensure the salary administration program is being administered in a fair and consistent manner, the City believes an outside `audit' of the current evaluations, salary administrative guidelines and procedures is warranted. Therefore, the scope of the project would be to: a) review current job descriptions and job evaluations for a sampling of jobs to ensure the guide -charts are being applied appropriately, b) review the current job documentation format to ensure it meets the requirements for the City, c) interview a select number of job holders to more accurately access job duties and responsibilities when necessary, d) review current salary administration guidelines to ensure practices and processes align with the needs of the City, and e) prepare a written report summarizing our findings to the City. Ms. Peggy Vice July 6, 1998 Page 2 The following outlines the project steps we would generally follow in this type of assignment: Phase 1 - Project Planning This most certainly would be a brief conference call between the Personnel Director and I to come to clear agreement as to the project scope, project schedule, data needed for an our assessment, etc. Phase II - Job Documentation Review We anticipant that we would select approximately 40% of the jobs for review. The consultant would, on site, review this documentation, along with other pertinent data, to ascertain whether; a) the job appears to be properly evaluated, b) more information (i.e., an interview with either personnel or the job incumbent) is required, or c) the job is evaluated too high or too low. In addition, during this phase we would review current the polices and procedures dealing with the compensation plan. This review would also be in the form of a 'desk audit' type activity. Time on site with client - 2 days Phase III - Job Holder Interviews As a result of the work in Phase II, it is likely that interviews with job holders will be necessary. We anticipate that approximately 30% of the jobs audited may require an interview session. The purpose of the interview would be to gather job content information (i.e., duties and responsibilities) from the job holder. Each interview should last no more than one hour. Time on site with client - 2 days Phase IV - Final Report Following the gather an analysis of all the information gathered in Phases H & III, we will prepare a written report of our findings for the City. 4 Ms. Peggy Vice July 6, 1998 Page 3 Estimate of Fees We estimate fees for the project as outlined to be $16,000. This estimate does not include expenses associated with the project such as travel, lodging and meals. As noted in the project outline above we anticipate two separate two-day client site days as part of this project. I have attached some information about the HayGroup as well as a copy of by Bio. Please let me know if you need any additional information or call me if you have any questions. My direct telephone number is (972) 934-6843 Thank you. Sincerely, Paul Glog owskek9� Consultant r iE Paul T. Glogowski Professional Expertise Mr. Glogowski is a Consultant in the Southwest Region of the Hay Group.. His sixteen years of experience in the Human Resources field include the delivery of diverse compensation and benefits services in the electric, natural gas, and coal mining industries. Background Mr. Glogowski's corporate experience includes the development and implementation of various compensation programs including base pay plans for management, professional, hourly, and craft employees, company -wide gaining sharing programs, marketing and sales incentive programs with individual and team components. In addition, Mr. Glogowski has extensive experience in traditional market pricing and market analysis activities. Performance management design and implementation has also been an area of responsibility for Mr. Glogowski. Previous Experience Prior to joining Hay, Mr. Glogowski held the position of Compensation Manager for Texas Utilities Company (the fourth largest electric utility in the states). Other experiences at the utility included benefit administration, employee relations and EEO. Education Mr. Glogowski holds a Bachelor of Business Administration (Personnel Management) from the University of North Texas. Client Experience Mr. Glogowski has provided consulting services to a variety of clients including: City of Dallas Dallas County Darr Equipment JC Penney Kimberly Clark Tarrant County Texas Utilities University of Texas Medical Branch Hay Group el . T ..�:�..• CONSULTIIN With locations in 32 countries, the Competency -based Human Resources Planning and Development Hay Group is one of the worlds No area today is as important as finding or preparing the right people for the right jobs. Hay/McBer, the human resources planning practice group within Hay, helps clients manage these critical human largest human resources manage- resources needs in the following ways: meet consulting firms. Founded in Selection and Assessment. Hay/McBer helps companies go well beyond the matching of a job Philadelphia in 1943, Hay pro- tide or description with a candidate's credentials and experience. Rather, consultants work with vides services in North America clients to discover the key competencies necessary for outstanding performance —and then find through a 26 -city network of the person who possesses these competencies. When appropriate, Hay/McBer also conducts offices. Full time staff worldwide assessment centers for specific industries, as well as in-house centers. includes nearly 2,000 top profes- The Hay/McBer Executive 360® approach uses subordinate, supervisor, and peer review to assess sionals and support employees, executives' capabilities. This not only compares individual competencies with those required for outstanding performance, but also gauges managerial style and that style's impact on the internal Hay serves more than 7,000 organizational climate. clients throughout the world, Performance Management. Hay/McBer helps create comprehensive, ongoing performance ranging from $1 million to over management systems that not only objectively measure how well individuals or teams perform, $300 billion in sales, and from but also evaluate how the results are achieved and, most importantly, how closely those results ie in to the organization's overall strategy and objectives. The process also measures individuals 35 to 250,000 employees. Hay and teams against a set of desired job competencies. Hay/McBer also trains managers to coach consults with clients in both the employees and create a climate that will enhance performance. public and private sectors, Development and Succession Planning. Hay/McBer uses proprietary techniques to determine including major manufacturers, exactly which competencies need to be developed at selected job levels or in specific parts of the financial services companies, organization —and which people in the organization have what it takes to succeed in specific jobs. health care organizations, high- Hay can custom design and deliver training programs or identify the best programs commercial- ly available at the lowest cost. tech corporations, not -for -profits, and all levels ofgovernment. Hay/McBer Xcelo is a competency -based, computer -assisted process that streamlines the identi- fication of competencies in individuals and pinpoints their developmental needs. The following briefly describes The McBer Training Resources Group (TRG) provides self -scoring assessment and develop - Hay and the spectrum ofservices meat materials. the company offers. Compensation: Dynamic Pay Approaches The world of compensation is filled with many "innovative" alternatives. The Hay Dynamic Payt't approach provides a structured method to make the correct compensation decisions —aligning reward programs with an organization's unique strategy and work culture. Compensation Design. Using Dynamic Pay "work culture models," Hay helps an organization deter- mine its current and future internal work culture. Then, based on what our research and experience have shown to be effective in a particular culture, we help the organization design the right reward pro- gram. This may include: team -based pay, pay for competencies, pay for quality, broadbanding, small group incentives, gainsharing, and many other innovative alternatives —as well as more traditional merit increase and salary administration programs that may be suited to the organization. Compensation Information. Supporting Hay compensation consulting are three of the most comprehensive surveys in this field. The Hay Compensation Report includes more than 1,000 "� • STAFF REVIEW FORM Agenda Request -� F Contract Review I 'MCROFILMED Grant Revi FOR THE FAYETTEVILLE CITY COUNCIL MEETING OF FROM: Doi RAILFY PE25. ADMIt.J. Seat'. Name Division Department ACTION REQUESTED: REVIEW /APP20VAL OF A CO,JTRACT WITH 14AY MAA/AanlEwT GotJSULTAMT5 FoR A PAY PLAN AUDIT. COST TO THE CITY: CJf'`i g'+$2 $ 1 g, coo $ 20, 1 Z9 %foog_ P20F. SEiZVIC.E5 Cost of this request Category/Project Budget Category/Project Name 53,4 %-L3.S H.R. Account Number Funds used to date Program Name s`f, GEMEIAL. Project Number Remaining Balance Fund BUDGET REVIEW: Budgeted Item Budget Adjustment Attached Budget oordinator CONTRACT/GRANT/LEASE REVIEW: Purchasing Officer Date 9 Date -a4-98 Date STAFF RECOMMENDATION: Administrative Services Director GRANTING AGENC : Internal Auditor ADA Coordinator Date Date /S�iiF/-� (isvl 42 784; Division Head / Date Dep nt D' ector D to ss gg RECEIVED Ad ''ra �' e ervices r ctor t AUG 03 1998 Mayor Date CITY OF FAYETTE MAYOR'S OFFICE