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HomeMy WebLinkAbout57-07 RESOLUTIONRESOLUTION NO. 57-07 A RESOLUTION APPROVING A CONTRACT WITH HR FACTOR IN THE AMOUNT OF $46,885.00 TO COMPLETE PHASE III OF THE COMPENSATION AND CLASSIFICATION SYSTEM PROJECT; AND APPROVING A CONTINGENCY NOT TO EXCEED $1,000.00. 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 approves a contract with HR Factor in the amount of $46,885.00 to complete Phase III of the Compensation and Classification System Project. Section 2. That the City Council of the City of Fayetteville, Arkansas hereby approves a contingency not to exceed $1,000.00. PASSED and APPROVED this 3rd day of April, 2007. APPROVED: ATTEST. By: 1,4 t,za AN COODY, Mayor By: Q01094424-4—. &at SONDRA E. SMITH, City Clerk/Treasurer F CONTRACT FOR SERVICES This Agreement is made and entered into by and between the CITY OF FAYETTEVILLE Arkansas, 113 W. Mountain Street, Fayetteville, AR 72701 and FIR FACTOR, 3996 Frontage Road, Fayetteville, AR 72703 RECITALS WHEREAS, the Fayetteville City Selection Committee, after reviewing responses to Request for Proposal 07-02 and interviewing finalists, selected HR FACTOR to complete Phase Three -Performance Measures of the Classification and Compensation System for the CITY OF FAYETTEVILLE; and WHEREAS, HR FACTOR desires to conduct the Classification and Compensation System, Phase Three -Performance Measures for the consideration set forth below; and NOW THEREFORE, the CITY OF FAYETTEVILLE AND HR FACTOR agree to the promises, conditions, terms, and agreements set forth below: AGREEMENT NOW, THEREFORE, in consideration of the foregoing premises, of the promises, representations, warranties and covenants herein contained and of the other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties intending to be legally bound, hereby agree as follows. 1. Defmitions. As used throughout this Agreement, the following terms shall have the meanings set forth below, unless otherwise indicated. Capitalized tclins not otherwise defined in this Section 1, shall have the meanings ascribed thereto where such capitalized term is defined. 1.1. "Affiliates" means any business entity now or hereafter controlled by, controlling or under common control with either party to this Agreement, provided, however, that control exists for purposes of this definition when an entity owns or controls more than fifty percent (50%) of the outstanding securities or interests, as applicable, representing the right to vote or the election of directors or other managing authority of another entity. 1.2. "Agreement" means this agreement and any relevant amendment and other attachments, exhibits or appendices specifically referenced in this Agreement. 1.3. "Services" means projects provided pursuant to an Agreement, whether written or verbal and provided pursuant to City of Fayetteville's direction. 1.4. "Third Party" means any individual, general partnership, limited partnership, corporation, limited liability company, limited liability partnership, association, joint stock company, trust, joint venture, unincorporated organization or association or governmental authority, other than the parties to this Agreement and their Affiliates. 2. Description, Location, Pricing of the Services, or any Other Project Terms. 2.1. Master Agreement Concept. HR Factor will provide all of the staff, equipment and labor necessary to complete, in good faith, the complete requirements of the project specified in RFP # 07-02. The parties may enter into additional amendments under this Agreement which shall be governed by the terms of this Agreement and the terms of this Agreement will control over any conflicting provision (whether relating to pricing, description, location or any other terms of this Agreement) of one or more amendments, unless City of Fayetteville and HR Factor agree in writing that any such conflicting provisions will control. 3. HR Factor's Responsibilities. 3.1. Generally. FIR Factor will commence the project included in this Agreement on a date to be specified in a written Notice to Proceed. 3.2. Progress Reports. HR Factor agrees to submit a progress report to Fayetteville City Council at each of its regular agenda sessions to keep the City Council informed of the status of the project until its completion. 3.3. Compliance. In connection with the performance of this Agreement, HR Factor will comply with all laws, regulations, and orders, to the extent applicable to HR Factor including, but not limited to, equal opportunity employment laws and regulations, the Fair Labor Standards Act (the "FLSA") and the Immigration Reform and Control Act. 3.4. Personnel on Assignment. The Personnel assigned to City of Fayetteville under this Agreement shall remain Personnel of HR Factor. 3.5. Subcontractors. HR Factor may, at its option, use subcontractors to provide certain of the Services under this Agreement. 3.6 Assignment. Notwithstanding the terms of 3.5, above, HR. Factor shall not assign the whole or any part of this Contract or any monies due or to become due hereunder without written consent of City of Fayetteville. In case HR Factor assigns all or any part of any monies due or to become due under this Contract, the Instrument of assignment shall contain a clause substantially to the effect that is agreed that the right of the assignee in and to any monies due or to become due to HR Factor shall be subject to prior liens of all persons, firms, and corporations for services rendered or materials supplied for the performance of the services called for in this contract. 4. City of Fayetteville's Responsibilities. 4.1. Compliance. In connection with the perforniance of this Agreement, City of Fayetteville will comply with all applicable laws, regulations, and orders, including, but not limited to, equal opportunity employment laws and occupational safety and health legislation and regulations. 4.2 Notice to Proceed and Deposit. The Notice to Proceed and a deposit equal to 20% of the total awarded amount shall be promptly issued after City Council Approval of the Contract Agreement by City of Fayetteville and the Mayor's execution of same. In no event shall the Notice and Deposit be issued in more than 15 days after City Council approval of and Mayor's signature on the agreement. If there are reasons why the Notice to Proceed and Deposit should not be issued within this period, the time may be extended by mutual agreement between City of Fayetteville and HR Factor. If the Notice to Proceed has not been issued within the above described time period or within the period mutually agreed upon, the FIR Factor may terminate the Contract Agreement without further liability on the part of either party. 5. Payment for Services. 5.1. Application for Payment HR Factor shall submit an application for payment (invoice) for services rendered during the preceding calendar month. This application shall be sent to: City of Fayetteville Attn: Missy Leflar 113 W. Mountain Fayetteville, AR 72701 5.2. Payments If HR Factor has made application for payment as above, the HR Division Manager will issue a request for payment to the Accounting Department for such amount as is determined to be properly due, or state in writing the itemized and specific reasons for withholding a payment. The Accounting Department shall pay the Consultant, within thirty (30) days, the amount covering services completed. No payment shall constitute an acceptance of any services not in accordance with the contract documents. 5.3 Final Payment Upon receipt of written notice from HR Factor that all contracted services are complete, the HR Division Manager will, within 30 days of receipt of the final written itemized billing statement, review all services and reports. If the HR Division Manager finds the services and reports of HR Factor complete and acceptable in accordance with the provisions of the contract documents, she shall, within said 30 day time period, process a pay request so that final payment can be made. The acceptance of final payment shall constitute a waiver of all claims by HR Factor except those previously made in writing and still unsettled. 6. Adjustments to Pricing. The pricing provided in the Agreement may only be adjusted with the written consent of both City of Fayetteville and HR Factor. Changes, modifications, or amendments in scope, price, or fees to this contract shall not be allowed without a prior formal contract amendment approved by the Mayor and the City Council in advance of the change in scope, cost or fees. 7. Insurance HR Factor will, at its own expense, provide and keep in full force and effect during the term of this Agreement the following kinds and minimum amounts of insurance: 7.1. Workers' Compensation. Workers' compensation statutory coverage as required by the laws of the jurisdiction which the services are performed. 7.2. Employer's Liability. Employer's liability insurance with a limit of not less than $500,000 per accident. 7.3. Commercial Automobile Liability. Commercial automobile liability insurance with a $1,000,000 combined single limit on vehicles owned, leased, or rented by HR Factor while performing under this Agreement. 7.4. General Commercial Liability. Commercial general liability insurance, including personal injury blanket contractual liability and broad form property damage, with a $1,000,000 combined single limit per occurrence. 7.5. Umbrella. Excess coverage under certain of the aforementioned policies up to $1,000,000 in the aggregate for each occurrence. Such Umbrella Liability Insurance shall be on terms and with coverages coextensive and consistent with the General Liability, Commercial Automobile Liability, and Employer's Liability Insurance as referenced above. 7.6 Errors and Omissions. HR Factor shall hold City of Fayetteville harmless from any liability arising from acts or omissions of its Employees or Subcontractors and shall furnish to City of Fayetteville, certificates of insurance certifying that HR Factor is carrying errors and omissions or professional liability insurance with minimum limits of $1,000,000.00. 7.6 Certificates of Insurance. Certificates of Insurance reflecting the Insurance described in 7.1 — 7.6, above, shall be submitted to the HR Division Manager prior to HR Factor commencing work on this project. These certificates contain the statement that "Coverage afforded under the policies will not be canceled unless at least thirty (30) days prior to cancellation written notice has been given to City of Fayetteville, as evidenced by receipts of Registered or Certified mail." 7.7 Subcontractor Insurance. HR Factor shall provide (to the extent not enumerated above) and shall cause each of its Subcontractors to provide adequate employer's liability insurance for the protection of such of its employees as are not otherwise protected, as follows: 1. Workers' Compensation: Statutory Amount 2. Comprehensive General & Automobile Insurance 3. Bodily Injury Liability: $250,000 for each person injured. $500,000 for each accident. 4. Property Damage Liability: $500,000 aggregate. 8. Freedom of Information Act. 8.1 Freedom of Information Act: City of Fayetteville contracts and documents prepared while performing city contractual work are subject to the Arkansas Freedom of Information Act. If a Freedom of Information Act request is presented to the City of Fayetteville, HR Factor will do everything possible to provide the documents in a prompt and timely manner as prescribed in the Arkansas Freedom of information Act (A.C.A. § 25-19-101 et seq.) Only legally authorized photocopying costs pursuant to the FOIA may be assessed for this compliance. 9. Indemnification. HR Factor will indemnify and hold harmless City of Fayetteville and their agents and employees from and against all claims, damages, losses and expenses including attorneys' fees arising out of or resulting from the performance of the services, provided that any such claims, damage, loss or expense is attributable to bodily injury, sickness, disease or death, or to injury to or destruction of tangible property, including the loss of use resulting there from; and is caused in whole or in part by any negligent or willful act or omission of HR Factor and anyone directly or indirectly employed by it or anyone for whose acts any of them may be liable. In any and all claims against City of Fayetteville or any of their agents or em- ployees, by any employee of HR Factor, directly or indirectly employed by it, or anyone for whose acts any of them may be liable, the indemnification obligation shall not be limited in any way by any limitation on the amount or type of damages, compensation or benefits payable by or for HR Factor or under the Workers' Compensation Acts, Disability Benefits Acts or other employee benefits acts. 10. Notices 10.1. All Notices, demands, requests, instructions, approvals, and claims shall be in writing. 10.2 City of Fayetteville and HR Factor agree. (a) to notify each other in writing of any asserted Third Party claim within ten (10) business days of learning of the Third Party claim. 10.3 Any notice to or demand upon HR Factor shall be sufficiently given if delivered at the office of FIR Factor specified in its proposal (or at such other office as HR Factor may from time to time designate to City of Fayetteville in writing), or if deposited in the United States Mail in a sealed, postage -prepaid envelope. 10.4 All papers required to be delivered to City of Fayetteville shall, unless otherwise specified in writing to HR Factor, be delivered to the Hr Division Manager. Any notice to or demand upon City of Fayetteville shall be sufficiently given if delivered to the Office of said Hr Division Manager or if deposited in the United States Mail in a sealed, postage -prepaid envelope, or delivered said Hr Division Manager or to such other representative of City of Fayetteville or to such other address as City of Fayetteville may subsequently specify in writing to HR Factor for such purposes. 11. Exclusive Dealing. During the term of this Agreement, City of Fayetteville agrees to use HR Factor exclusively as its sole and/or primary vendor providing human resources consulting services for Phase Three -Performance Measures of the Classification and Compensation System. . 12. Termination. This contract can be terminated based on: 12.1. Failure of HR Factor to perform based on Hr Factor's bankruptcy, lack or loss of skilled personnel, or disregarding laws, ordinances, rules, regulations or orders of any public body having jurisdiction. Should any single, multiple or all of the above conditions occur, City of Fayetteville shall have the authority to terminate the contract with written notice to HR Factor. HR Factor shall be liable for any losses occurring as a result of not abiding by the terms of the agreement. 12.2 City of Fayetteville shall have the right to voluntarily terminate this agreement at any time upon ten (10) days advance written notice to the other party of its intention to terminate. 12.3 Any termination of HR Factor's services shall not affect any right of City of Fayetteville against HR Factor than existing or which may thereafter occur. Any retention of payment of monies by City of Fayetteville due HR Factor will not release HR Factor from compliance with the Contract. 13. Force Majeure. Neither party will be responsible for failure or delay in satisfying its obligations hereunder, if the failure or delay is due to labor disputes and strikes, fire, riot, war, or acts of God. 14. Governing Law. 14.1 This Agreement will be governed by and construed in accordance with internal laws of the State of Arkansas, without reference to choice of laws, rules or principles. 14.2 HR Factor's attention is directed to the fact that all applicable Federal and State laws, municipal ordinances, and the rules and regulations of all authorities having jurisdiction over the services shall apply to the contract throughout, and they will be deemed to be included in the contract as though written out in full herein. HR Factor shall keep itself fully informed of all laws, ordinances and regulations of the Federal, State, and municipal governments or authorities in any manner affecting those engaged or employed in providing these services or in any way affecting the conduct of the services and of all orders and decrees of bodies or tribunals having any jurisdiction or authority over same. If any discrepancy or inconsistency should be discovered in this contract document or in the specifications herein referred to, in relation to any such law, ordinance, regulation, order or decree, HR Factor shall herewith report the same in writing to City of Fayetteville. 14.3 FIR Factor shall at all times observe and comply with all such existing and future laws, ordinances and regulations, and shall protect and indemnify City of Fayetteville and its agents against the violation of any such law, ordinance, regulation, order or decree, whether by itself or by its employees. Licenses of a temporary nature, necessary for the prosecution of the services shall be secured and paid for by HR Factor. 14.4 HR Factor irrevocably consents that any legal action or proceeding against it under, arising out of or in any manner relating to this Contract shall be brought in any court in Fayetteville, Washington County, Arkansas. HR Factor hereby expressly and irrevocably waives any claim or defense in any said action or proceeding based on any alleged lack of jurisdiction or improper venue or any similar basis. 15. Section Headings. The Section headings of this Agreement are for the convenience of the parties only and in no way alter, modify, amend, limit, or restrict the contractual obligations of the parties. 16. Severability and Waiver. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. Any delay or waiver by a party to declare a breach or seek any remedy available to it under this Agreement or by law will not constitute a waiver as to any past or future breaches or remedies. 17. Assignment/Binding Effect. Neither HR Factor nor City of Fayetteville may assign this Agreement without the prior written consent of the other party; provided, however, that HR Factor may use subcontractors to fulfill any or all of its obligations hereunder, without securing City of Fayetteville's prior written consent. This Agreement will be binding upon and inure to the benefit of the parties named herein, and their respective successors and permitted assigns. Nothing in this Agreement, express or implied, is intended to confer upon any other Third Party any rights or remedies of any nature whatsoever under or by reason of this Agreement. 18. No Third Party Beneficiaries. Nothing in this Agreement shall be construed to create any rights or obligations, except among the parties hereto, and no Third Party shall be regarded as a Third Party beneficiary of this Agreement. • 19. Independent Contractor. In its performance of this Agreement, HR Factor will at all times act in its own capacity and right as an independent contractor, and nothing contained herein may be construed to make HR Factor an agent, partner, or joint venture of City of Fayetteville. Neither HR Factor nor its Personnel will have any claim to City of Fayetteville's revenues from their work. 20. Amendment. This Agreement may not be amended or supplemented in any way except in writing, dated and signed by authorized representatives of both parties. 21. Counterparts and Telecopy Execution. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. A facsimile telecopy of this Agreement, including counterparts shall be considered valid, binding and effective for all purposes. 22. Exhibits and Schedules. The Exhibits and Schedules identified in this Agreement are incorporated herein by reference and made a part hereof. 23. Entirety. This Agreement and any Exhibits and Schedules are the entire understanding and agreement between the parties with respect to the subject matter covered, and all prior agreements, understandings, covenants, promises, warranties, and representations, or written, express or implied, not incorporated in this Agreement are superseded. IN WITNESS WHEREOF, the parties have caused this Agreement to be signed by their respective duly authorized representatives as of the day and year first shown above. Exhibit A Classification and Compensation System Phase 3, Performance Measures RFP #07-02 Scope of Services will include the following: Facilitate participative onsite discussions between consultant and City representatives to identify and develop specific core measures for the performance evaluation tools. Recommend whether separate forms should be utilized for hourly and salaried employees. Consult with City staff to determine a scale that will be utilized to differentiate defined performance levels. The 2007 appraisal forms must be compatible with the 2007 merit grid provided by the Phase II consultant. Recommend appropriate measures to evaluate supervisors and team leaders that can be applied to both hourly and salaried positions. Develop separate appraisals for non -uniformed, Police and Fire employees, along with appropriate supervisory/lead measures as stated in Task 3. Review the merit grid provided by the Phase II consultant. Revise as needed to reflect possible ratings. Provide on-site training to staff for effective use of performance evaluation tool. Approximately 170 supervisors at varying levels of the organization will require training. Create training materials to be utilized by the City's Human Resource staff to continue the training program. The city reserves the right to video tape an onsite training session for future City of Fayetteville use. Recommend an employee communications strategy and develop necessary written materials. Materials developed will be suitable for use in the implementation of the program as well as for on-going education of new employees. Data shall be maintained in a format that allows for creation of reports to track evaluation scores over time and break out the information by division, department, and an organization -wide review. Provide norms for the distribution of scores. Submitted bid for above scope of services: Not to exceed S39,145 HR Factor will facilitate and lead four (4) three hour supervisor meetings in order to properly identify and differentiate essential functions from secondary duties for each job description. Based upon a detailed analysis of job function data gained from the supervisor meetings HR Factor will review, assess, revise, and as necessary re -write existing job descriptions to accurately reflect duties which are considered essential functions as well as essential functions reflecting physical requirements using non - prejudicial language as prescribed by the ADA. Minimum qualifications, skills and abilities will also be examined and revised as necessary. If additional supervisor meetings are required, or if it is necessary for the planned meetings to run longer than anticipated due to city supervisors requiring more time, the additional cost will be billed at $125 per hour. HR Factor will obtain pre -approval from the HR Division Manager, who will be present at the meetings, for any additional meetings or meeting extensions. Submitted bid for analyzing, rewriting, revising, and editing of job descriptions Total $ 7,740 (and possible additional contingency amount of up to a cap of $1,000 for up to eight hours of extra supervisory meetings if pre -approved by the HR Division Manager) 546,885 (and possible contingency amount of up to a cap of $1,000 for up to eight hours of extra supervisory meetings if pre - approved by the HR Division Manager) Missy Leflar Submitted By City of Fayetteville Staff Review Form City Council Agenda Items or Contracts 4/3/2007 City Council Meeting Date Human Resources Division Action Required: Operations ets ,y3/67 fi--o 9 Fachr Department Staff recommends approval of a contract with HR Factor for Phase III of the Compensation and Classification System Project. $46,885.00 Cost of this request 1010.1210.5314.00 Account Number N/A Project Number Budgeted Item XX 202,736.00 Category / Project Budget 39,818.00 Funds Used to Date 162,918.00 Remaining Balance Budget Adjustment Attached Services and Charges Program Category / Project Name Human Resources Program / Project Category Name General Fund Name City Atto ney 4)cudi Cactis___ Finance and Internal Service Director 3 • Ili -Re 7 Date Date Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: Received in Mayor's Office BMW Comments: CITY COUNCIL AGENDA MEMO City Council Meeting April 3, 2007 TO: Mayor Dan Goody and the City Council THRU: Gary Dumas, Operations Director FROM: Missy Leflar, Human Resource Division Manager DATE: March 14, 2007 SUBJECT: Award of a Contract for Phase 111 of the Compensation and Classification System Project Recommendation Staff recommends approval of a contract with HR Factor in the amount of $46,885 to complete Phase III of the Compensation and Classification Project — the creation and implementation of new Job Performance Evaluations. Background The City Council previously approved the City's Compensation and Classification Study. Phases I and II of that project were conducted in 2006. Phase III (the creation and implementation of Job Performance Evaluations for all city employees) is scheduled to be conducted and completed in 2007. Discussion The Human Resources Division is on target to meet the 2007 completion goal of Phase 111. To do so necessitates employing the services of a qualified outside vendor. The selected vendor, HR Factor, was competitively selected by a city committee formed for that purpose. HR Factor's original bid was $52,000. However, after several meetings and discussions clarifying the precise scope of the services that would best meet the City's needs for this project, the contract price became $46,885. A additional contingency amount of up to $1,000 (representing up to 8 additional hours of work at $125 per hour), was prudently added in case City supervisors require more hourly time with the consultants than anticipated. Any such additional time would require pre -authorization by the HR Division Manager. The present target date for completion of the Job Performance Evaluations is August, 2007. September, 2007 will be the "test month" (four weeks to test for and fixing any glitches that might occur between the online component of the evaluations and the City's mainframe computer system). October and November will be the training months. Weekly meetings to teach supervisors how to properly perform the new Job Performance Evaluations will occur in October and November until all of the approximate 170 supervisors have been trained. The new Job Performance Evaluations will then go "live" effective January, 2008. Budget Impact This planned item has been budgeted for in the Human Resource Division's 2007 budget. Staff is available to answer any questions you may have. RESOLUTION NO. A RESOLUTION APPROVING A CONTRACT WITH HR FACTOR IN THE AMOUNT OF $46,885.00 TO COMPLETE PHASE III OF THE COMPENSATIONAND CLASSIFICATION SYSTEM PROJECT; AND APPROVING A CONTINGENCY NOT TO EXCEED $1,000.00. BE IT RESOLVED BY THE CITY COUNCIL OF THE-tI FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the Ci hereby approves a contract with HR Factor in the complete Phase III of the Compensation a d Classificatio Section 2. That -t hereby approves ar0-1 ‘..ngency • E\13 APP OVED: Conn( ot to eh kansas .00 to Fayettevil ansas By: yor TTEST: 07. By. SONDRA E. SMITH, City Clerk/Treasurer Finance & Internal Services Director: Budget Manager: IT Manager: Dispatch Manager: Utilities Manager: Other: Special Instructions: —a Ul CO C4 —a CD 0> "-4 CD la NJ — Fn. 3 'Requester: Staci Branson Address: 3996 Frontage Rd City: State: Fayetteville AR < CD 0 a o -, z m 1 City Of Fayetteville (Not a Purchase Order) 6UlIPUBHI6UiddhiS Phase III Compensation Plan Description _I Quantity 1Vendor Name: HR Factor Lot ! r a Unit of Issue a. a> -co co a b a Unit Cost $0.00 $0.00 $0.00 fat 0 b a 400 0 b a SI 0 b a $0.00 $0.00 Ita 0 b a 4/. 0 b a $46,885.00 Extended Cost 1010.1210.5314.00 Account Numbers Requester's Employee #: 2857 Fob Point: Zip Code: Ship to code: 72703 060 Subtotal: $46,885.00 Tax: $0.00 Total: $46,885.00 13 3. a. r) V) c cr 60 3. 0. 0 CI .3 1•4 CO rn cp z coC _. 0 0 -< o CO 1 Z 9 Ix I —i 0 X cr co Mail No:_x 11 b z c 3 0 •-•L • • Z 2 c t7) .c.. M Z 0 • - illiventory # rYeotes Attached s: No: Expected Delivery Date: Date: 3/15/2007 11 R" co ca co a) 3t J4/6/2007) Liskl3iinsOn_-_Res. 57-07 _ P?ge 1 From: To: Date: Subject: Attachments: CC: Ms. Leflar: Attached is a copy of the above resolution passed by City Council, April 3, 2007. I will forward to you one of two original agreements via interoffice mail. I will also forward to Purchasing your original purchase requisition. If anything else is needed please let me know. Have a good day. Thanks. Lisa Lisa Branson Leflar, Missy 4/6/2007 9:47 AM Res. 57-07 57-07 HR Factor.pdf Audit; Vice, Peggy