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
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SONDRA E. SMITH, City Clerk/Treasurer
Finance & Internal Services Director: Budget Manager: IT Manager:
Dispatch Manager: Utilities Manager: Other:
Special Instructions:
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Staci Branson
Address:
3996 Frontage Rd
City: State:
Fayetteville AR
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Account Numbers
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2857
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Zip Code: Ship to code:
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Subtotal: $46,885.00
Tax: $0.00
Total: $46,885.00
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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