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52-18 RESOLUTION
113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 52-18 File Number: 2017-0775 JOHANSON CONSULTING INC. D/B/A JOHANSON GROUP: A RESOLUTION TO ACCEPT AND ADOPT THE PAY PLAN COMMITTEE'S RECOMMENDATIONS FOR NEW CRITERIA FOR MARKET STUDIES, TO APPROVE A CHANGE ORDER TO THE CONTRACT WITH JOHANSON CONSULTING INC. D/B/A JOHANSON GROUP TO INCREASE THE ANNUAL CONTINGENCY FEES BY THE AMOUNT OF $5,500.00 FOR ANNUAL MARKET STUDIES AND CONSULTING, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, in September 2016, the City Council approved a contract with Johanson Consulting, Inc. d/b/a Johanson Group for a Classification, Compensation, and Benefits Study; and WHEREAS, in March 2017, the City Council accepted the Johanson Group's study and approved an updated compensation philosophy and several measures to implement a new classification, compensation and benefits plan; and WHEREAS, the City Pay Plan Committee has recommended new criteria for market studies including modifying the data source list for both uniformed and merit positions; implementing a market study each year alternating between uniformed and merit employees; and collecting specific benefit offerings from data sources. 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 accepts and adopts the Pay Plan Committee's recommendations for new criteria for market studies including modifying the data source list for both uniformed and merit positions; implementing a market study every year, alternating between uniformed and merit employees; and collecting specific benefit offerings from data sources. Page 1 Printed on 217118 Resolution: 52-18 File Number., 2017-0775 Section 2: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan to sign the Change Order to the contract with Johanson Consulting, Inc. d/b/a Johanson Group, a copy of which is attached to this Resolution, reflecting the change in scope and cost based on the new market study criteria. Section 3: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution, in the amount of $5,500.00 to implement the change order for 2018. PASSED and APPROVED on 2/6/2018 Attest: Sondra E, Smith, City Clerkr�tasttrr�� r e � �f 3; 4 IIY�TT�VII_L�`. is � �.•• T rx� Page 2 Printed on 217118 City of Fayetteville Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Text File — File Number: 2017-0775 Agenda Date: 2/6/2018 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: D. 11 JOHANSON CONSULTING INC. D/B/A JOHANSON GROUP: A RESOLUTION TO ACCEPT AND ADOPT THE PAY PLAN COMMITTEE'S RECOMMENDATIONS FOR NEW CRITERIA FOR MARKET STUDIES, TO APPROVE A CHANGE ORDER TO THE CONTRACT WITH JOHANSON CONSULTING INC. D/B/A JOHANSON GROUP TO INCREASE THE ANNUAL CONTINGENCY FEES BY THE AMOUNT OF $5,500.00 FOR ANNUAL MARKET STUDIES AND CONSULTING, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, in September 2016, the City Council approved a contract with Johanson Consulting, Inc. d/b/a Johanson Group for a Classification, Compensation, and Benefits Study; and WHEREAS, in March 2017, the City Council accepted the Johanson Group's study and approved an updated compensation philosophy and several measures to implement a new classification, compensation and benefits plan; and WHEREAS, the City Pay Plan Committee has recommended new criteria for market studies including modifying the data source list for both uniformed and merit positions; implementing a market study each year alternating between uniformed and merit employees; and collecting specific benefit offerings from data sources. 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 accepts and adopts the Pay Plan Committee's recommendations for new criteria for market studies including modifying the data source list for both uniformed and merit positions; implementing a market study every year, alternating between uniformed and merit employees; and collecting specific benefit offerings from data sources. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan to sign the Change Order to the contract with Johanson Consulting, Inc. d/b/a Johanson Group, a copy of which is attached to this Resolution, reflecting the change in scope and cost based on the new market study criteria. Section 3: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution, in the amount of $5,500.00 to implement the change order for 2018. City of Fayetteville, Arkansas Page 1 Printed on 21712018 File Number: 2017-0775 City of Fayetteville, Arkansas Page 2 Printed on 21712018 Brenda Reed Submitted By City of Fayetteville Staff Review Form 2017-0775 Legistar File ID 2/6/2018 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 1/3/2018 Human Resources/ _ Chief of Staff Submitted Date Division / Department Action Recommendation: Staff recommends approval of the Pay Plan Committee's proposal of new criteria for market studies completed by the Johanson Group as follows: (1) Modifing data source list for Police and Fire uniformed and merit positions, (2) Implementing a market study every year, alternating each year with Police and Fire uniformed and merit employees and (3) Collecting specific benefit offerings from data sources. Due to the recommendations proposed by the Pay Plan Committee, staff recommends the approval of a change order to increase the annual contingency fees for contract #2016-0372 with the Johanson Group from $4,500 to $10,000 (a difference of $5,500) for annual market studies and consulting each year the contract is in effect. Staff recommends the approval of a budget adjustment for 2018 in the amount of $5,500. Budget Impact: 1010.120.1220-5314.00 Account Number Project Number General Fund Project Title Budgeted Item? Yes Current Budget $ 137,188.00 Funds Obligated $ - Current Balance $ 137,188.00 Does item have a cost? Yes Item Cost $ 5,500.00 Budget Adjustment Attached? Yes Budget Adjustment $ 5,500.00 Remaining Budget $ 137,188.00 V20140710 Previous Ordinance or Resolution # 156-16 Original Contract Number: 2016-0372 Comments: Approval Date: CITY OF FAYETTE'VILLE ARKANSAS TO: Mayor Lioneld Jordan THRU: Don Marr, Chief of Staff FROM: Brenda Reed, HR Director DATE: January 3, 2018 STAFF MEMO SUBJECT: Approval of the Pay Plan Committee's proposal of new criteria for market studies completed by the Johanson Group and approval of Change Order #2 to increase the annual contingency fees for contract #2016-0372 with the Johanson Group RECOMMENDATION: Staff recommends approval of the Pay Plan Committee's proposal of new criteria for market studies completed by the Johanson Group as follows: (1) Modifying data source list for Police and Fire uniformed and merit positions, (2) Implementing a market study every year, alternating each year with Police and Fire uniformed and merit employees and (3) Collecting specific benefit offerings from data sources. Due to the recommendations proposed by the Pay Plan Committee, staff recommends the approval of a change order to increase the annual contingency fees for contract #2016-0372 with the Johanson Group from $4,500 to $10,000 (a difference of $5,500) for annual market studies and consulting each year the contract is in effect. Staff recommends the approval of a budget adjustment for 2018 in the amount of $5,500. BACKGROUND: The City of Fayetteville entered into a contract with the Johanson Group in the amount of $45,725 for a Classification, Compensation and Benefits Study and an annual contingency in the amount of $4,500. Change order #1 was approved in the amount of $1,500 for consulting services to the Pay Plan Committee in 2017. DISCUSSION: Change order #2 is requested to compensate the Johanson Group for annual market studies and consulting services. In October 2017, the Pay Plan Committee recommended new criteria for market studies conducted by the Johanson Group: 1. Data Sources 2. Survey Frequency 3. Benefit Offerings Mailing Address: 113 W. Mountain Street www,fayetteville-ar.gov Fayetteville, AR 72701 1. Data Sources Uniform Market Cities Bentonville Rogers Springdale Jonesboro Lawrence, KS Merit Market Tier 1 Bentonville Rogers Springdale Jonesboro Lawrence, KS NOARK Study DOL — NWA Study Merit Market Tier 2 and 3 Bentonville Rogers Springdale Jonesboro Lawrence, KS NOARK Study DOL — NWA Study CompAnalyst Study Compdata Study 2. Survey Frequency Implement a market study every year, alternating each year with Police and Fire uniformed and merit employees. • 2018 Police and Fire uniformed * 2019 Merit • 2020 Police and Fire uniformed • 2021 Merit 3. Survey Benefits Provided by Selected Data Sources Fire and PD Uniformed 1. Retirement 2. Medical/Dental 3. Time off over statutory 4. Certification -pay 5. Longevity Merit 1. Retirement 2. Medical/Dental 3. Time off 4. Shift/on call pay 5. Education Reimbursement BUDGET/STAFF IMPACT: The total request for the change order is $5,500. s� City of Fayetteville, Arkansas Change Order to Professional Services Contract between lTy OF Johanson Consulting, Inc. DBA FAYETTEVILLE ARKANSAS Johanson Group and The City of Fayetteville, AR This change order executed this day of 4_A('44 , 2018, between the City of Fayetteville, Arkansas, (City), and Johanson Consulting, Inc. DESA Johanson Group (Johanson Group). In consideration of the mutual covenants contained herein, the parties agree as follows. 1. Amend Section 3. Item (d.) of the original contract - A contingency amount not -to -exceed $5,000.00 annually for market reviews to potentially update the compensation plans. 2. Amend Section 3. Item (e.) of the original contract - A contingency amount not -to -exceed $5,000.00 annually for consulting services outside of the scope of work covered by -d.. rd.. WITNESS OUR HANDS THIS 3 DAY OF J�_nu.C,.,Ct.,,, , 2018. JOHANSON GROUP By: t fit' .Ju Rq5, ISIS 1 Printed Contractor Name &Title ATTEST: ILA (� Company Secretar' ATTEST: Sondra E. Smith, City Clerk L Date Signed: Business Address ADZ --7a-7 u_:�, City, St4te & Zip Code Date Signed: I - �- I k `/d gr -9,K / t "/sir rho 'r M •''fil J Cid _ t-AMr EVILLE j r?�LIti •s AA N •�, �� City of Fayetteville, AR �¢%, 01 ON V" ,%' Change Order to Professional Services Contract between Johanson Consulting, Inc DBA Johanson Group and The Cityaf h bEq AR Page 1 of 1 4 e 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Resolution: 156-16 File Number: 2016-0372 RFP 16-02 JOHANSON CONSULTING, INC. D/B/A JOHANSON GROUP: A RESOLUTION TO AWARD RFP 16-02 AND APPROVE A ONE (1) YEAR CONTRACT WITH AUTOMATIC RENEWALS FOR FOUR (4) ADDITIONAL ONE (1) YEAR TERMS WITH JOHANSON CONSULTING, INC. D/B/A JOHANSON GROUP FOR A CLASSIFICATION, COMPENSATION AND BENEFITS STUDY 1N THE AMOUNT OF $45,725.00 FOR THE FIRST YEAR, TO APPROVE AN ANNUAL PROJECT CONTINGENCY OF $4,500.00 FOR ONGOING MARKET REVIEWS AND CONSULTING SERVICES EACH YEAR THE CONTRACT IS IN EFFECT, AND TO APPROVE A ONE (1) YEAR SOFTWARE LICENSE AND SUPPORT AGREEMENT WITH AUTOMATIC RENEWALS FOR FOUR (4) ADDITIONAL ONE (1) YEAR TERMS WITH DB SQUARED, LLC FOR DBCOMPENSATION SOFTWARE IN THE AMOUNT OF $1,200.00 PER MONTH FOR THE FIRST THREE YEARS AND $250.00 PER MONTH FOR THE LAST TWO YEARS. 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 awards RFP 16-02 and approves a one (1) year contract with automatic renewals for four (4) additional one (1) year terms with Johanson Consulting, Inc. d/b/a Johanson Group for a classification, compensation and benefits study in the amount of $45,725.00 for the first year, and further approves an annual project contingency in the amount of $4,500.00 for ongoing market reviews and consulting services each year the contract is in effect. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a one (1) year software license and support agreement with automatic renewals for four (4) additional one (1) year terms with DB Squared, LLC for DBCompensation software in the amount of $1,200.00 per month for the first three years and $250.00 per month for the last two years. Page 1 Printed on 917/16 Resolution: 156-16 File Number: 2016-0372 PASSED and APPROVED on 9/6/2016 A nnroved- Attest: 1,r Sondra E. Smith, City Clerk Treasurer Page 2 Printed on 917116 City of Fayetteville, Arkansas 113 West Mountain Street I Fayetteville, AR 72701 R� r (479) 575-8323 Text File 4 -- File Number: 2016-0372 Agenda Date: 9/6/2016 Version: 2 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: A. 4 RFP 16-02 JOHANSON CONSULTING, INC. D/B/A JOHANSON GROUP: A RESOLUTION TO AWARD RFP 16-02 AND APPROVE A ONE (1) YEAR CONTRACT WITH AUTOMATIC RENEWALS FOR FOUR (4) ADDITIONAL ONE (1) YEAR TERMS WITH A JOHANSON CONSULTING, INC. D/B/A JOHANSON GROUP FOR A CLASSIFICATION, COMPENSATION AND BENEFITS STUDY IN THE AMOUNT OF $45,725.00 FOR THE FIRST YEAR, TO APPROVE AN ANNUAL PROJECT CONTINGENCY OF $4,500.00 FOR ONGOING MARKET REVIEWS AND CONSULTING SERVICES EACH YEAR THE CONTRACT 1S IN EFFECT, AND TO APPROVE A ONE (1) YEAR SOFTWARE LICENSE AND SUPPORT AGREEMENT WITH AUTOMATIC RENEWALS FOR FOUR (4) ADDITIONAL ONE (1) YEAR TERMS WITH DB SQUARED, LLC FOR DBCOMPENSATION SOFTWARE IN THE AMOUNT OF $1,200.00 PER MONTH FOR THE FIRST THREE YEARS AND $250.00 PER MONTH FOR THE LAST TWO YEARS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Se tion 1: That the City Council of the City of Fayetteville, Arkansas hereby awards RFP 16-02 and approves a one (1) year contract with automatic renewals for four (4) additional one (1) year terms with Johanson Consulting, Inc. d/b/a Johanson Group for a classification, compensation and benefits study in the amount of $45,725.00 for the first year, and further approves an annual project contingency in the amount of $4,500.00 for ongoing market reviews and consulting services each year the contract is in effect. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a one (1) year software license and support agreement with automatic renewals for four (4) additional one (1) year terms with DB Squared, LLC for DBCompensation software in the amount of $1,200.00 per month for the first three years and $250.00 per month for the last two years. City or Fayetteville, Arkansas Page 1 Printed on 91712016 Brenda Reed Submitted By City of Fayetteville Staff Review Form 2016-0372 Legistar File ID 9/6/2016 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 8/4/2016 Human Resources/ Chief of Staff Submitted Date Division / Department Action Recommendation: Staff recommends approval of a contract with Johanson Group in the amount of $45,725 for a classifi"cation, compensation and benefits study and an annual contingency amount not to exceed $4,500 for consulting services. Staff also recommends Council approve a contract with DB Squared, LLC (a sister company of Johanson Group) for use of their proprietary DBCompensation software. Budget Impact: 1010.120.12 20.5314.00 Account Number Project Number Budgeted Item? Yes Current Budget Funds Obligated Current Balance Does item have a cost? Yes Item Cost Budget Adjustment Attached? NA Budget Adjustment Remaining Budget Previous Ordinance or Resolution # Original Contract Number: Comments; General Fund Project Title $ 203,566.00 $ 43,475.00 $ 50,525.00 Approval Date: CITY OF 7ay%Pt.� V Ile s ARKANSAS MEETING OF SEPTEMBER 6, 2016 TO: Mayor and City Council THRU: Don Marr, Chief of Staff FROM: Brenda Reed, HR Director DATE: August 4, 2016 CITY COUNCIL AGENDA MEMO SUBJECT: Approval of a consulting contract with Johanson Group to conduct a classification, compensation and benefits study and approval of a software licensing agreement with DB Squared, LLC RECOMMENDATION: Staff recommends approval of a contract with Johanson Group in the amount of $45,725 for a classification, compensation and benefits study and an annual contingency amount not to exceed $4,500 for consulting services. Staff also recommends Council approve a contract with DB Squared, LLC (a sister company of Johanson Group) for use of their proprietary DBCompensationT"' software. Both contracts have an initial term of one year and are renewable for four years. BACKGROUND: In 2006, Management Advisory Group (MAG), the City's selected compensation consultant, facilitated the development of the City's Compensation Philosophy, which was approved by City Council. The philosophy is below. The City of Fayetteville is committed to recruiting, retaining and motivating an excellent workforce by providing a high quality of work life to City employees through a competitive compensation structure, competitive benefits program and a challenging and enriched work environment. Along with the Compensation Philosophy, the City established measures to conduct a market survey every four years. The City last conducted a market survey and updated its pay structures in 2012. DISCUSSION: In order for the City to remain a top competitor in the market, a decision was made to issue an RFP to conduct a more comprehensive scope of work to include a classification, compensation and benefits study. It has been ten years since the City last contracted with Management Advisory Group to perform this scope of work. The City completed a professional selection process and received five responses. The selection committee voted to recommend Johanson Group. In addition to the classification, compensation and benefits study, the contract with Johanson Group includes a contingency Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701. amount not -to -exceed $3,000 annually for market reviews to evaluate the competitive position of the compensation plans and a contingency amount not -to -exceed $1,500 annually for consulting that may be needed during the four year renewable term of the agreement. Staff recommends entering into the software licensing agreement to utilize the proprietary DBCompensationT" software. Software Features • Reduces staff time in building job descriptions and supports internal consistencies • Provides a repository of job descriptions and grades, which allows ease of use for sharing and enhanced collaboration across the organization • Allows a quick analysis of jobs, grades and pay lines for easy evaluation of internal equity and value • Serves as a resource to train supervisors to better understand the process of job evaluation • Allows easy evaluation of current employee pay lines to market data • Allows easy evaluation of our current pay practices to ensure equal pay • Saves staff time in creating custom reports to determine the financial effect of moving the City' pay line The cost for DBCompensationTM software licensing, technical support and upgrade fees for years one through three is $1,200 per month. The cost for DBCompensationT" software technical support and upgrade fees for years four and five is $250 per month. The licensing fee will be paid in years one through three and does not apply to years four and five. BUDGET/STAFF IMPACT: Funds are budgeted in the 2016 Human Resources program to cover the cost of this project. The annual software fees and any contingency costs incurred during the term of the consulting contract will be funded in the Human Resources budget. CITY OF City of Fayetteville, Arkansas 011 Ifle Contract for Classification, Compensation and Benefits Study ._ Y ARKANSAS Renewable Terms: One year with four one-year renewal options �" This contract executed this �l�.'�day of 2.G9.T; between the City of Fayetteville, Arkansas, (City), and Johanson Consulting, Inc. DOA Johanson Group (J ancon Group). In consideration of the mutual covenants contained herein, the parties agree as follows. WITNESSETH: WHEREAS, City has previously determined that it has a need for a classification, compensation, and benefits study; and WHEREAS, City, after soliciting competitive proposals for such services pursuant to City of Fayetteville RFP 16-02 (herein after referred to as Request for Proposal or RFP), City has awarded this contract to Johanson Group; and WHEREAS, Johanson Group has represented that it is able to satisfactorily provide these services according to the terms and conditions of the RFP, which are incorporated herein by reference, and the terms and conditions are contained herein; WHEREAS, this contract is riot an exclusive contract, and NOW THEREFORE, in consideration of the above and mutual covenants contained herein, the parties agree as follows: 1. Services to be Performed: Johanson Group hereby agrees to provide the City with a classification, compensation and benefits study, as requested and more specifically outlined in the RFP, this agreement, and the attached Exhibit "A" Services. The Johanson Group shall provide, as a minimum, professional services and dedicated personnel necessary to provide the following: a. Facilitation and development of an updated and competitive compensation philosophy b. Final data source list c. Salary survey form with selected benchmark positions d. Benefit survey form with employee benefits e. Project status updates as requested by the City City of Fayetteville, AR Contract for Classification, Compensation and Benefits Study (RFP 16-02) Page 1 of 7 f. Factor evaluation or other quantitative job evaluation system to classify each job within an appropriate grade g, Trainings on how to classify positions utilizing Johanson group's evaluation software during the study's job classification process In. Trainings on any automated tools used to support the classification and compensation system i. A review of existing compensation policies and practices and draft recommended compensation policies and practices which align with the updated compensation philosophy of the City j. A review of ordinances that set pay for elected officials and draft recommended revisions as appropriate k. A recommendation of mechanisms to maintain both internal and external pay equity I. Geographically modified survey data in. A draft salary and benefit survey report by December 12, 2016 and a final salary and benefit survey analysis with recommendations and implementation proposals no later than January 6, 2017. n. A review of classification specifications for Fair Labor Standards Act (FLSA) exempt/non- exempt classifications o. A review of all classifications for appropriate Equal Employment Opportunity (EEG -4) job categor ies p. An implementation plan for the new pay plans with consideration of proposed FLSA overtime exemption changes q. A presentation of the final salary and benefit survey repart to the City no later than January 6, 2017 and a presentation of the final report, recommendations, implementation options and associated cost estimates on site at the February 14, 2017 Council Agenda Session in Fayetteville, AR. The consultant shall attend and/or present at the February 21, 2017 Council Meeting to provide information and answer questions. r. Assistance with communication materials and employee educational meetings to explain the approved job evaluation system, survey results and implementation; plan s. Assistance with ongoing consultation and support for the maintenance of classification specifications and Pay plans t. Assistance with providing annual updates (to evaluate industry fluctuations, etc_ ) 2 lime of Service: Services shall be performed in a timely manner, as identified In the f imelin_e found in Exhibit "A" attached hereto. City of NyettQville, AR Contract for Classification, C ernpensation and Benefits Study (RrP 16-02) Page 2 of 7 3. Compensation: As compensation for Johanson Croup providing services to the City as described herein, the City shall pay Johanson GrouI2 based on the submission of invoices for work completed and properly authorized. The fees will be payable as follows: a. $2.1,525 following the completion of job grading and classification L $13,400 following the completion of the Salary and Benefits Survey c. $10,800 following the completion of report analysis and formulation of recommendations for the pay structures and implementation plans d. A contingency amount not -to -exceed $3,000 annually for market reviews to potentially update the compensation plans e. A contingency amount not -to -exceed $1,500 annually for consulting outside of the scope of the work covered by a. - d. f. Invoices shall be billed based on the pricing submitted in the RFP. Payments will be made within 30 days of receipt of accepted invoice. 4. Insurance: The Johanson Group shall provide and maintain in force at all times during the term of the services contemplated herein insurance as presented in RFP 16-02 including general automotive, commercial general liability, workers' compensation insurance, and errors & omissions. Fees for policies associated with this requirement shall be paid by Johanson Group. A complete certificate of insurance shall be provided to the City within ten (10) business days of contract award and shall list the City of Fayetteville, AR as an additional insured. 5. Term of Agreement: The City reserves the right to award this contract for additional classification, compensation, and benefits studies within five (5) years from City Council approval date of contract. The City also reserves the right to contract with Johanson Group within such five (5) year period for work related to this RFP and the City's classification, compensation, and benefits mission. Services performed pursuant to this Contract shall commence upon execution of this agreement unless canceled or terminated with thirty (30) days written notice by either party. 6. Amendment of Contract: This Contract may be amended only by mutual written agreement of the parties. 7. Legal Compliance: Johanson ,Group is responsible for full and complete compliance with all applicable laws, rules, regulations and licensing requirements imposed by any public authority having jurisdiction, City of Fayetteville, AR Contract for Classification, Compensation and Benefits Study (RFP 16-02) Page 3 of 7 8. A�,proval ❑f Agent: The City reserves the right to require the Johanson Group to replace the assigned agent with another agent of the same company if, in the opinion of the City staff, the agent is not rendering or is incapable of rendering the quality of service and cooperation required. 9. Auditable Records: The Johanson Group shall maintain such accounts and records in connection with its performance of services for the City as may reasonably be required by the City. 10. Assignment and Subcontracting, Johansson Crou shall perform this contract and no assignment or subcontracting shall be allowed without the prior written consent of the City. In the event_ of a corporate acquisition and/or merger, Johanson Group shall provide written notice to the City within thirty (30.) business days of such notice of action or upon the occurrence of said action, whichever occurs first. The right to terminate this contract, which shall not be unreasonably exercised by the City, shall include, but not be limited to, instances in which a corporate acquisition and/or merger represent a conflict of interest or are contrary to any local, state, or federal laws. Action by the City awarding a proposal to a Proposer, which has disclosed its intent to assign or subcontract in its response to the RFP, without exception shall constitute approval for purposes of this Agreement. 11, Cancellation: The City of Fayetteville reserves the right to cancel this Contract, without cause, by giving thirty (30) days' notice to Johanson Group of the intent to cancel, or with cause if at any time Johanson Groff fails to fulfill or abide by any of the terms or conditions specified. Failure of Johanson Group to comply with any of the provisions of this contract shall be considered a material breach of contract and shall be cause for immediate termination of the contract at the discretion of the City of Fayetteville. In addition to all other legal remedies available to the City of Fayetteville, the City reserves the right to cancel and obtain from another source any services which have not been provided within the period of time stated in the proposal, or if no such time is stated, within a reasonable period of time from the date of order or request, as determined by the City. In the event that sufficient budgeted funds are not available for a fiscal period, the City shall notify Johanson Grouts of such occurrence and the Contract shall terminate on the last day of the then current fiscal period without penalty or expense to the City. The City reserves the right to terminate within the thirty (30) day notice because of budgetary issues. City of Fayetteville, AR Contract for Classification, Compensation and Benefits Study (RFP 16-02) Page 4 of 7 12. Permits & Licenses, Johanson Group shall secure and maintain any and all permits and licenses required to complete this contract. 13. Indemnification: Johanson Group shall indemnify, pay the cost of defense, including but not limited to attorneys' fees, and hold harmless the City from all suits, actions or claims of any character brought on account of any injuries or damages received or sustained by any person, persons, or property by or from the said Johanson Group; or by, or in consequence of any neglect in safeguarding the work; or on account of any act or omission, neglect or misconduct of Johanscin Group: or by, or on account of, any claim or amounts recovered under the Workers' Compensation Law or of any other laws, by-laws, ordinances, order of decree, except only such injury or damage as shall have been occasioned by the sole negligence of the City of Fayetteville. The first ten dollars ($10.00) of compensation received by Johanson Group represents specific consideration for this indemnification obligation, which .shall begin at the time services are first rendered or expenses are incurred. Furthermore, Johanson Group in performing its obligations under this contract, is acting independently and the City assumes no responsibility of liability for the Johanson Group acts or omissions to third parties, and Johanson Group shall agree to indemnify and hold harmless, the City, its officers and employees against any and all claims, lawsuits, judgments, costs and expenses for which recovery of damages is sought, suffered by any person or persons, that may arise out of or be occasioned by Johanson Group's breach of the terms or provisions of contract, or by any negligent act or omission of Johanson Group, its officers, agents, employees, or invitee, in the performance of this contract; except that the indemnity specified in this paragraph shall not apply to any liability resulting from the sole negligence of the City, its officers, or employees. In the event of joint and concurrent negligence of both Johanson [group and the City, responsibility and indemnity, if any, shall be apportioned comparatively in accordance with the laws of the State of Arkansas, without, however, waiving any governmental immunity available to the City under Arkansas law and without waiving any defense of the parties under Arkansas law. This paragraph is solely for the benefit of Johanson group and the City and is not intended to create or grant any rights, contractual or otherwise, to any other person or entity. However, in no event shall the Johanson Group's liability under this indemnification provision exceed the amount of $45,725.00. City of Fayetteville, AR Contract for Classification, Compensation and Benefits Study (RFP 16-02) Page 5 of 7 14. Governing Law & Jurisdiction: Legal jurisdiction to resolve any disputes shall be Washington County, Arkansas with Arkansas law applying to the case. 15. Severability: The terms and conditions of this agreement shall be deemed to be severable. Consequently, if any clause, term, or condition hereof shall be held to be illegal or void, such determination shall not affect the validity of legality of the remaining terms and conditions, and notwithstanding any such determination, this agreement shall continue in full force and effect unless the particular clause, term, or condition held to be illegal or void renders the balance of the agreement impossible to perform. 16, Changes in Scope ar Price: Changes, modifications, or amendments in scope, price, or fees to this contract shall not be allowed without a prior formal written contract amendment approved by the Mayor and the City Council in advance of the change in scope, cost or fees. 17. Freedom of Information Act: 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, Johanson Grouo 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 18. Documents Comprising Contract: The contract shall include this Agreement for a classification, compensation, and benefits study, as well as the following documents, which are incorporated herein by reference. a. City of Fayetteville's Request for Proposal (RFP 16-02) and all of its addenda and attachments; b. Johanson Croup's Proposal; C, Johanson Croup Certificate of Insurance as required, listing the City as an additional insured; d. Exhibit A: Scope of work with associated deliverables and progress payments If there is a conflict between the terms of this Agreement and the above referenced documents, the conflict shall he resolved as follows: the terms of this Agreement shall prevail over the other documents, and the terms of the remaining documents shall be given preference in their above listed order. WITNESS OUR HANDS THIS U _DAY OF 2016. City of Fayetteville, AR Conti act for Classification, Compensation and Benefits study (RFP 16-02) Page 6 of 7 JOHANSON GROUP Y: w Printed Contractor Name & Title h1 �ST: Company Secretary A1-rE ST- j Sondra E. Smith, City Clerk Cgl-. g _°'! e- Ip'3 Date Signed Business Address a �IRTF.Jii,L-p-, 1$1? X2"703 City, State & Zip Code 7 Date Signed: 9- 9 - 0701 City of Fayetteville, AR Contract For Classification, Compensation and Benefits Study (RFP 16-02` Page 7 of 7 DBCompensationTM SOFTWARE License and Support Agreement This DBCompensation711 SOFTWARE License and Support Agreement, hereinafter referred to as AGREEMENT, is made and entered into as of the dates set forth below by and between DB Squared, LLC, an Arkansas Limited Liability Company, hereinafter referred to as DB SQUARED, and City of Fayetteville hereinafter referred to as LICENSEE. WITNESSETH: WHEREAS, LICENSEE is desirous of licensing DBCompensationTM SOFTWARE from DB SQUARED and receiving support for the DBCompensationTM SOFTWARE and DB SQUARED is desirous of providing said licenses and support services to LICENSEE, pursuant to the terms and conditions more particularly described herein; NOW THEREFORE, for and in consideration of the premises, the terms and conditions herein and for other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged, DB SQUARED and LICENSEE hereby agree as follows: 1. Rates, Amounts and Taxes Applicable to this AGREEMENT. The rates and amounts listed in this section constitute an offer by DB Squared that shall be null and void if not accepted by LICENSEE by the OFFER EXPIRATION DATE. Rates and amounts shown here do not include applicable federal, state or local taxes or any other type of tax which might be applicable to this agreement. Applicable taxes will be added at the time of invoicing. The OFFER EXPIRATION DATE for this agreement shall be September 21, 2016 The EFFECTIVE DATE of this AGREEMENT shall be September 21, 2016 The EMPLOYEE COUNT RANGE on which this AGREEMENT is based is 500-1,000 The DBCompensationTM SOFTWARE Licensing, Tech Support & Upgrade Fee for first three years The DBCompensationTm SOFTWARE Fee for 9/2016 — 8/2017 $1,200 per month The DBCompensationTM SOFTWARE Fee for 9/2017 — 8/2018 $1,200 per month The DBCompensationTM SOFTWARE Fee for 9/2018 — 8/2019 $1,200 per month The DBCompensationTM SOFTWARE Tech Support & Upgrade Fee for fourth and fifth years The DBCompensationT" SOFTWARE Fee for 9/2019 — 8/2020 $250 per month The DBCompensationTM SOFTWARE Fee for 9/2020 — 8/2021 $250 per month This annual fee covers software upgrades released during agreement term. The initial TERM OF THE AGREEMENT shall be 12 months The four annual options for agreement renewal will be September 21 of each subsequent year. Training provided to LICENSEE at no additional cost shall be 4 hours and be provided at the City of Fayetteville Administration Building All applicable taxes shall be Not Applicable Market Update: The Market Update and related fees are covered in a separate agreement with Johanson Consulting, LLC, dba Johanson Group, Fayetteville, AR. v20160921 Copyright © 2016 by DB Squared, LLC. All rights reserved. Page 1 of 6 2. Definitions 2.1 "DBCompensationTM SOFTWARE" means the object code version of the JOB EVALUATION AND SALARY ADMINISTRATION MODULE (Copyright © 2005 by LIB Squared, LLC. All rights reserved), any UPDATES and UPGRADES thereto, and any related user guides, instructions, and reference materials provided to LICENSEE. 2.2 "UPDATE" means any subsequent minor modification of, or patch to, the DBCompensation"m SOFTWARE. 2.3 "UPGRADE" means any major new release of the DBCompensationTM SOFTWARE. The term UPGRADE does not include other MODULES. 2.4 "MODULE" means any software which constitutes a separate product offering by DB SQUARED. 2,5 "DBCompensationTM METHODOLOGY" means a methodology developed for the purpose of prescribing the process and structure for fairly and equitably determining job classification salary ranges and employee pay rates. The DBCompensation7A9 METHODOLOGY is proprietary to Johanson Consulting, Inc., d.b,a., Johanson Group, an affiliate of DB SQUARED. 2.6 "LICENSEE" means the legal entity which is a party to this AGREEMENT. It does include subsidiaries of LICENSEE or other third parties. For the purposes of this AGREEMENT, the term "third party" means anyone other than LICENSEE. 27 "EMPLOYEE COUNT RANGE" means the number of employees on which this AGREEMENT is based Fees for this AGREEMENT are based on the number of full-time employees within the employee count range. 3. Licenses 3.1 DBCompensationT"' SOFTWARE License. DB SQUARED hereby grants LICENSEE a nonexclusive, nontransferable license to operate (but not to sublicense) DBCompensationTM SOFTWARE on the internet hosted platform. Under this license, the DBCompensationTM SOFTWARE may be used with up to the number of employees specified in the EMPLOYEE COUNT in section 1 plus twenty percent (20%). 3.2 DBCompensationTM SOFTWARE License Termination. DB SQUARED may terminate this DBCompensationTM SOFTWARE License if LICENSEE breaches this AGREEMENT, subject to Section 6.2 of this agreement. Upon termination of the license, LICENSEE will not have access to the DBCompensationTM Internet Hosted SOFTWARE. If this AGREEMENT is terminated for any reason prior to the end of the INITIAL TERM, the license will automatically terminate. Except as provided herein, if this AGREEMENT is terminated after the end of the INITIAL TERM, and LICENSEE does not opt for self - renewing annual AGREEMENT provision, then the license and access to the Internet Hosted SOFTWARE shall terminate. 3.3 Limitations on License. LICENSEE may not: (a) modify, translate or create derivatives of the DBCompensationTM SOFTWARE and METHODOLOGY; (b) operate the DBCompensationTM SOFTWARE in connection with any methodology other than the DBCompensationTM METHODOLOGY for which it was designed, or (c) permit any access to, or use of, the DBCompensationTM SOFTWARE by any third party, subject to the LICENSEE being legally compelled to disclose said information. (Freedom of Information Act, etc.) If LICENSEE violates provision (a) above, LICENSEE hereby quitclaims and assigns all intellectual property rights arising therefrom to DB SQUARED, and shall take all necessary steps to perfect DB SQUARED'S title therein. No rights are granted except as expressly set forth in this AGREEMENT, and no right or forbearance may be construed under any theory of implication, estoppel or otherwise. 34 Ownership of DBCompensationTM SOFTWARE and DBCompensationTM METHODOLOGY. The DBCompensationTM SOFTWARE and DBCompensationTM METHODOLOGY are owned by DB SQUARED and/or its affiliates. This AGREEMENT does not confer any ownership of the DBCompensationTM SOFTWARE or the DBCompensationTM METHODOLOGY to LICENSEE. v20160921 Copyright OO 2016 by DB Squared, LLC: All rights reserved. Page 2 of 6 4. Support and Training 4.1 Generally_ DB SQUARED will provide the following support for the DBCompensation TM SOFTWARE licensed hereunder, in accordance with DB SQUARED'S standard software support policies, as may be amended by DB SQUARED from time to time in its sole discretion: (a) DBCompensation TM SOFTWARE UPDATES AND UPGRADES; (b) telephone and/or e-mail consultation on use of the DBCompensation TM SOFTWARE and DBCompensation TM METHODOLOGY; and (c) assistance in error isolation and correction. 4,2 LICENSEE Support Obligations. LICENSEE agrees to test and verify any suspected error or defect in the DBCompensation TM SOFTWARE and to report such errors or defects to DB SQUARED in a timely manner Upon request, LICENSEE agrees to provide DB SQUARED with reasonable assistance in reproducing such errors or defects. 4.3 Limitations. DB SQUARED'S support is limited to the DBCompensationTM SOFTWARE and DBCompensation TM METHODOLOGY. 4.4 Training, DB SQUARED will provide training on the use of the DBCompensation TM SOFTWARE AND DBCompensationTM METHODOLOGY to LICENSEE as specified in section 1 of this AGREEMENT 4,5 Market Updates. If LICENSEE has elected in section 1 to receive optional market updates, then 1) DB SQUARED agrees to provide optional market updates to LICENSEE on an as needed basis during the term of this AGREEMENT, and 2) LICENSEE agrees to provide salary data to DB SQUARED when the optional market update has been request during the term of this AGREEMENT. LICENSEE understands that said salary data will be included in a study which will be made available to clients of DB SQUARED and/or its affiliates and that LICENSEE is not entitled to remuneration for the use of said salary data DB SQUARED agrees that it will make said salary data available only in a consolidated form using market averages and that it will not publish the details of any specific LICENSEE'S salary data. Salary data to be provided to DB SQUARED by LICENSEE shall include the following: job titles used by LICENSEE, salaries associated with employees having said job titles and points associated with said job titles. Salary data will not include employee names 4.6 UPDATES and UPGRADES. LICENSEE shall be entitled to UPDATES and UPGRADES to the DBCompensation TM SOFTWARE only as long as 1) this AGREEMENT remains in force, 2) the LICENSEE has not been notified that they are in breach of this AGREEMENT, and 3) all fees which are due to DB SQUARED from LICENSEE have been paid_ 5. Fees and Timing of Payments 5,1 DBCompensationTM SOFTWARE License Fee. The Software License Fee is based on the EMPLOYEE COUNT RANGE specified in section 1 and is a one-time fee which is due and payable at the signing of this AGREEMENT. This fee is non-refundable. 5 2 DBCompensation TM SOFTWARE Support Fee. The Software Support Fee is based on the EMPLOYEE COUNT RANGE specified in section 1 and is an annual fee, and it will be paid on the anniversary dates of this agreement 5.3 MARKET UPDATE FEE. The MARKET UPDATE FEE is based on a flat dollar amount as specified in section 1 and is due and payable upon completion of the update. If no MARKET UPDATE FEE is charged to LICENSEE, then no market update service will be provided to LICENSEE under this AGREEMENT, v20160921 Copyright © 2016 by DB Squared, LLC. All rights reserved, Page 3 of 6 Term and Termination of AGREEMENT 6,1 Term, This AGREEMENT will take effect upon the date specified above and will remain in effect for a minimum amount of time referred to as the INITIAL TERM of the AGREEMENT, as specified in section 1 of this AGREEMENT. This AGREEMENT will self -renew on an annual basis after the INITIAL TERM unless terminated by LICENSEE or DB SQUARED. 62- Termination, Either LICENSEE or DB SQUARED may terminate this AGREEMENT upon completion of the INITIAL TERM by a thirty (30) day written notice to the other party DB SQUARED may terminate this AGREEMENT at any time if LICENSEE breaches this AGREEMENT and fails to cure such breach within thirty (30) calendar days following notice of such breach. 6.3 Survival of Obligations, The following provisions will survive termination of this Agreement for any reason: (a) Sections 3.3, 4.3, 7,1, 7.2, 8.2, 8.3, 8.4 and 9 (all paragraphs); and (b) any provision that expressly indicates it will survive. Confidentiality and Proprietary Notices T1 Nondisclosure. The DBCompensationTM SOFTWARE, the DBCompensationTM METHODOLOGY, and the proprietary job factors weighted point system are confidential to DB SQUARED and its affiliates_ LICENSEE will maintain confidence and not disclose to any third party any of the DB SQUARED confidential information LICENSEE acknowledges that the above information is likely protected from disclosure under A.0 A.25- 19-105 (b)(9)(A), but DB SQUARED acknowledges that LICENSEE must otherwise comply with the requirements of A.C.A. 25-19-101, Et. Seq. 72 Proprietary Marks. LICENSEE agrees not to alter, change, or remove from the DBCompensationlm SOFTWARE any proprietary mark of DB SQUARED or its affiliates, including, patent, copyright, trade secret, trademark, or other intellectual property right notices 8. Warranty; Limitations on liability 8.1 Warranties. DB SQUARED warrants, during the term of this AGREEMENT, that: (a) the internet hosted account on which the DBCompensationTM SOFTWARE is delivered, is free from defects; and (b) the DBCompensationTM SOFTWARE licensed hereunder shall operate substantially in accordance with the specifications contained in the documentation accompanying the DBCompensationTM SOFTWARE. LICENSEE'S sole remedy for breach of the warranties shall be, at DB SQUARED'S sole discretion: (i) addressing internet hosted account accessibility; or (ii) modification of either the program code of the DBCompensationTM SOFTWARE or the associated documentation to bring them into compliance with each other. 8.2 DISCLAIMER. EXCEPT FOR THE PROVISIONS OF PARAGRAPH 8.1, NO REPRESENTATIONS OR WARRANTIES ARE MADE, OR MAY BE IMPLIED, WITH RESPECT TO THE SOFTWARE AND/OR ANY SERVICES PROVIDED HEREUNDER. DB SQUARED SPECIFICALLY DISCLAIMS ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. DB SQUARED, ITS DEVELOPERS AND AFFILIATES WILL NOT BE HELD LIABLE FOR ANY LIABILITY OR OUTCOME FROM LICENSEE'S USE OF THE DBCOMPENSATIONTM SOFTWARE AS A MANAGEMENT SALARY ADMINISTRATION TOOL. 8.3 Limitations on liability LICENSEE ACKNOWLEDGES THAT DB SQUARED, ITS DEVELOPERS, AND AFFILIATES SHALL NOT BE LIABLE FOR DAMAGES BEYOND THE VALUE OF THE SOFTWARE ITSELF TO ANY THIRD PARTY FOR ANY LOSS OR CLAIM RESULTING DIRECTLY FROM AND ATTRIBUTABLE TO LICENSEE'S USE OR POSSESSION OF THE DBCOMPENSATION SOFTWARE. NOTHING CONTAINED IN THIS AGREEMENT SHALL OPERATE TO WAIVE, LIMIT, MODIFY, NULLIFY, OR ALTER THE RIGHTS AND IMMUNITIES GRANTED TO LICENSEE UNDER ARKANSAS CODE ANNOTATED 21-9-301. v20160921 Copyright © 2016 by DB Squared, LLC. All rights reserved Page 4 of 6 8.4 LIMITATION ON LIABILITY. EXCEPT FOR BREACHES OF SECTION 3.3, or 7.1, NEITHER PARTY SHALL BE LIABLE FOR ANY LOSS OF PROFITS, LOSS OR INTERRUPTION OF BUSINESS, LOSS OF USE OR DATA, OR FOR ANY INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 9. General Terms 9.1 Assignment. Licensee may not assign any right or delegate any obligation under this AGREEMENT, or transfer this AGREEMENT, without prior written consent of DB SQUARED, and any such attempt shall be void. 9.2 Waiver. The failure of a party to enforce its rights with respect to a breach hereunder shall not constitute a waiver with respect to any other occurrence of breach. Except as otherwise specified, the rights and remedies of a party under this AGREEMENT are in addition to any other rights or remedies available at law or in equity 9.3 Governing Law. This AGREEMENT will be governed by the laws of the State of Arkansas, U.S.A., without regard to choice of law/conflict of law principles. Each party submits to the jurisdiction of the federal and state courts in Washington County, Arkansas, and agrees that any action brought in connection with this AGREEMENT shall be exclusively brought in such courts. 9A Severability. In the event that any provision of this AGREEMENT is found to be invalid or unenforceable, it will be enforced to the extent permissible and the remainder of this AGREEMENT shall remain in full force and effect. 9.5 Modifications. Any modification of this AGREEMENT must be in writing and executed by an authorized representative of both parties. 96 Construction. The headers of this AGREEMENT are for convenience only The verb "to include" (and all variations thereof) shall not be construed as a term of limitation, unless expressly indicated by the context in which it is used. 9.7 Compliance with Applicable Laws LICENSEE shall at all times comply with all applicable laws and regulations in using the DBCompensationTM SOFTWARE. 9.8 Notices. LICENSEE shall send all communications to DB SQUARED as follows: 1) technical communications to Technical Director of Software; and 2) business and legal communications to General Counsel; at DB Squared, LLC, 2928 McKee Circle, Suite 119, Fayetteville, AR 72703, phone: 479-587- 0151, fax: 479-521-5453_ Both parties agree to notify the other party immediately in the event of a change of address. 99 Complete Agreement. This AGREEMENT represents the complete agreement between DB SQUARED and LICENSEE. v20160921 Copyright © 2016 by DB Squared, LLC, All rights reserved. Page 5 of 6 APPROVAL AGENT ACKNOWLEDGES AND AGREES THAT: 1) AGENT IS AUTHORIZED TO ENTER INTO THE TERMS AND CONDITIONS OF THIS AGREEMENT ON BEHALF OF THE LICENSEE AND 2) BY EXECUTING THIS AGREEMENT, LICENSEE IS LEGALLY BOUND BY THE TERMS OF THIS AGREEMENT. IN WITNESS WHEREOF, the parties have caused this AGREEMENT to be duly executed by their respective authorized representatives. DB Squared, LLC By: Name: Bruce Johanson Title: Principal Date: 7-28-2016 Witness; X" (?-e City of Fayetteville, AR v20160921 Copyright© 2016 by DB Squared, LLC. All rights reserved. Page 6 of 6 City of Fayetteville, Arkansas Purchasing Division Room 306 113 W. Mountain Fayetteville, AR 72701 Phone: 479.575.8220 TDD (Telecommunication Device for the Deaf): 479.521.1316 REQUEST FOR PROPOSAL: RFP 16-02, Classification, Compensation, & Benefits Study DEADLINE: Friday, May 27, 2016 before 2:00:00 PM, local time RFP DELIVERY LOCATION: Room 306 —113 W. Mountain, Fayetteville, AR 72701 PURCHASING AGENT: Andrea Rennie, CPPD, CPPB, aforen@fayetteville-ar.gov DATE OF ISSUE AND ADVERTISEMENT: Friday, April 15 & 29, 2016 REQUEST FOR PROPOSAL RFP 16-02, Classification, Compensation, & Benefits Study No late proposals shall be accepter. RFD's shall be submitted in sealed envelopes labeled with the project number and name as well as the name and address of the firm. All proposals shall be submitted in accordance with the attached City of Fayetteville specifications and bid documents attached hereto. Each Proposer is required to fill in every blank and shall supply all information requested; failure to do so may be used as basis of rejection. Any bid, proposal, or statements of qualification will be rejected that violates or conflicts with state, local, or federal laws, ordinances, or policies. NOTICE TO ALL PROPOSERS: All interested parties shall register as a plan holder by notifying Andrea Rennie, via e-mail at aforen@faVetteville-ar.Aov. When registering as an interested party, vendors shall submit primary contact information including name of company, primary contact, phone number, and e-mail address. All documents will be distributed electronically from the City of Fayetteville Purchasing Division. Receiving project documents from the City of Fayetteville, AR automatically registers you as an interested parry. E-MAILED BlD PACKAGE INCLUDES LINKS TO THE FOLWWING FILES: FILE #01. REQUEST FOR PROPOSAL: 59 PAGES (RFP 24 pages, Appendix A -J 35 pages) *Additional files added as addendums are issued_ Addendums will be directly e-mailed to all listed interested parties notice of all addendums will be posted on the City's website. Proposers shall ossume all responsibility for receiving updates and any addenda issued to this project by monitoring trttp,//frtyettevrlle,•ar,rtr�v/� d . Failure to acknowledge addenda issued as instructed could result in proposal rejection, City of Fayetteville, AR RFP 16-02, Classification, Compensation, and Benefits Study Page 1 of 24 City of Fayetteville RFP 16-02, Classification, Compensation, and Benefits Study Advertisement City of Fayetteville, AR Request for Proposal RFP 16-02, Classification, Compensation, and Benefits Study The City of Fayetteville, Arkansas, invites qualified vendors to submit responses to Request for Proposal (RFP) ] 6- 02 to provide a classification, compensation, and benefits study. To be considered, proposals shall be received at the City Administration Building, City Hall, Purchasing — Roc !° 306, 113 West Mountain, Fayetteville, Arkansas, by Friday, May 27, 2016 before 2-00:00 PM,. local time. No late submittals shall be accepted. A non -mandatory pre -proposal conference will be held on Tuesday, May 03, 2016 at 9:30 AM at the City of Fayetteville, City Hall, Room 326 at 113 W. Mountain, Fayetteville, AR 72701. All interested parties are strongly encouraged to attend. Project documents & addendums can be obtained by request from the City of Fayetteville via request from Andrea Rennie, CPPD, CPPB, Purchasing Manager atafioren fiatteville-ate or (479)575-8289. The invitation to bid, notice of and addenda issued will be made publically available at http.[Lfavetteville-ar,pov/bids. All questions regarding the process should be directed to Andrea Rennie. Proposals submitted shall be qualified to do business and licensed in accordance with all applicable laws of the state and local governments where the project is located. Pursuant to Arkansas Code Annotated §22-9-203 The City of Fayetteville encourages all qualified small, minority and women business enterprises to bid on and receive contracts for goods, services, and construction. Also, City of Fayetteville encourages all general contractors to subcontract portions of their contract to qualified small, minority and women business enterprises. The City of Fayetteville reserves the right to reject any or all proposals and to waive irregularities therein and all Proposers shall agree that such rejection shall be without liability on the part of the City of Fayetteville for any damage or claim brought by any Proposer because of such rejections, nor shall the Proposers seek any recourse of any kind against the City of Fayetteville because of such rejections. The filing of any Proposal in response to this invitation shall constitute an agreement of the Proposer to these conditions CITY OF FAYFTTEVILLF By: Andrea Foren Rennie, CPPD, CPPB Title: Purchasing Manager Ad dates: 04/15/16 and 04/29/2016 City of Fayetteville, AR RFP 16-02, Classification, Compensation, and Benefits Study Page 2 of 24 City of Fayetteville RFP 16-02, Classification, Compensation, and Benefits Study SECTION A: General Terms & Conditions 1. SUBMISSION OF A PROPOSAL SHALL INCLUDE: Each proposal shall contain the following at a minimum. Proposer must also address detailed requirements as specified in the Scope of Work. a. A written narrative describing the method or manner in which the Proposer proposes to satisfy requirements of this RFP in the most cost effective manner, b. A description of the Proposer's experience in providing the same or similar services as outlined in the RFP. This description should include the names of the person(s) who will provide the services, their qualifications, and the years of experience in performing this type of work_ Also, include the reference information requested in this RFP. c. The complete fee and cost to the City for all services outlined in this RFP. d. Statement should be no more than twenty five (25) pages; single sided, standard, readable, print on standard 8.5x11 papers. Proposers shall also submit a three (3) page (maximum) executive summary. The following items will not count toward the page limitations: appendix, cover sheet, 3 -page executive summary, resumes (resumes shall be no more than 1 page per person), and forms provided by the City for completion. e. All Proposers shall submit ten (10) sets of the proposal as well as one (1) electronic copy on a properly labeled CD or other electronic media device. The electronic copy submitted should be contained into one (1) file. The use of Adobe PDF documents is strongly recommended. Files contained on the CD or electronic media shall not be restricted against saving or printing. The electronic copy shall be identical to the original papers submitted inclusive of City forms for completion. Electronic copies shall not be submitted via e-mail to City employees by the Proposer. f. Proposals will be reviewed following the stated deadline, as shown on the cover sheet of this document. Only the names of Proposers will be available after the deadline until a contract has been awarded by the Fayetteville City Council. All interested parties understand proposal documents will not be available until after a valid contract has been executed. g. Proposers shall submit a proposal based on documentation published by the Fayetteville Purchasing Division. h. Proposals shall be enclosed in sealed envelopes or packages addressed to the City of Fayetteville, Purchasing Division, Room 306, 113 W. Mountain, Fayetteville, AR 72701. The name, address of the firm and Bid, RFP, or RFQ number shall be on the outside of the packaging as well as on any packages enclosed in shipping containers or boxes. i. Proposals must follow the format of the RFP. Proposers should structure their responses to follow the sequence of the RFP. j. Proposers shall have experience in work of the same or similar nature, and must provide references that will satisfy the City of Fayetteville. Proposer shall furnish a reference list of City of Fayetteville, AR RFP 16-02, Classification, Compensation, and Benefits Study Page 3 of 24 clients for whom they have performed similar services and must provide information as requested in this document. k. Proposer is advised that exceptions to any of the terms contained in this RFP or the attached service agreement must be identified in its response to the RFP. Failure to do so may lead the City to declare any such term non-negotiable. Proposer's desire to take exception to a non- negotiable term will not disqualify it from consideration for award. Local time shall be defined as the time in Fayetteville, Arkansas on the due date of the deadline. Documents shall be received before the deadline time as shown by the atomic clock located in the Purchasing Division Office. 2. WRITTEN REQUESTS FOR INTERPRETATIONS OR CLARIFICATION: No oral interpretations will be made to any firms as to the meaning of specifications or any other contract documents. All questions pertaining to the terms and conditions or scope of work of this proposal must be sent in writing via e-mail to the Purchasing Department. Responses to questions may be handled as an addendum if the response would provide clarification to the requirements of the proposal. All such addenda shall become part of the contract documents. The City will not be responsible for any other explanation or interpretation of the proposed RFP made or given prior to the award of the contract. DESCRIPTION OF SUPPLIES AND SERVICES: Any manufacturer's names, trade name, brand name, catalog number, etc. used in specifications are for the purpose of describing and establishing general quality levels. Such references are NOT intended to be restrictive. Proposals shall be considered for all brands that meet the quality of the specifications listed for any items. 3. RIGHTS OF CITY OF FAYETTEVILLE IN REQUEST FOR PROPOSAL PROCESS: In addition to all other rights of the City of Fayetteville, under state law, the City specifically reserves the following: a. The City of Fayetteville reserves the right to rank firms and negotiate with the highest-ranking firm. Negotiation with an individual Proposer does not require negotiation with others. b. The City reserves the right to select the proposal it believes will serve the best interest of the City. c. The City of Fayetteville reserves the right to accept or reject any or all proposals. d. The City of Fayetteville reserves the right to cancel the entire request for proposal, e. The City of Fayetteville reserves the right to remedy or waive technical or immaterial errors in the request for proposal or in proposals submitted. f. The City of Fayetteville reserves the right to request any necessary clarifications, additional information or proposal data without changing the terms of the proposal. g.. The City of Fayetteville reserves the right to make selection of the Proposer to perform the services required on the basis of the original proposals without negotiation. 4. EVALUATION CRITERIA: City of Fayetteville, AR RFP 16-02, Classification, Compensation, and Benefits Study Page 4 of 24 The evaluation criterion defines the factors that will be used by the selection committee to evaluate and score responsive, responsible and qualified proposals. Proposers shall include sufficient information to allow the selection committee to thoroughly evaluate and score proposals. Each proposal submitted shall be evaluated and ranked by a selection committee. The contract will be awarded to the most qualified Proposer, per the evaluation criteria listed in this RFP. Proposers are not guaranteed to be ranked. 5. COSTS INCURRED BY PROPOSERS: All expenses involved with the preparation and submission of proposals to the City, or any work performed in connection therewith, shall be borne solely by the Proposer(s). No payment will be made for any responses received, or for any other effort required of, or made by, the Proposer(s) prior to contract commencement. 6. ORAL PRESENTATION: An oral presentation and/or interview may be requested of any firm, at the selection committee's discretion. 7. CONFLICT OF INTEREST: a. The Proposer represents that it presently has no interest and shall acquire no interest, either direct or indirect, which would conflict in any manner with the performance or services required hereunder; as provided in City of Fayetteville Code Section 34.26 titled "Limited Authority of City Employee to Provide Services to the City". The Proposer shall promptly notify Andrea Foren Rennie, City Purchasing Agent, in writing, of all potential conflicts of interest for any prospective business association, interest, or other circumstance which may influence or appear to influence the Proposer's judgment or quality of services being provided. Such written notification shall identify the prospective business association, interest or circumstance, the nature of which the Proposer may undertake and request an opinion to the City as to whether the association, interest or circumstance would, in the opinion of the City, constitute a conflict of interest if entered into by the Proposer. The City agrees to communicate with the Proposer its opinion via e-mail or first-class mail within thirty days of receipt of notification. 8. WITHDRAWAL OF PROPOSAL: A proposal may be withdrawn prior to the time set for the proposal submittal based on a written request from an authorized representative of the firm; however, a proposal shall not be withdrawn after the time set for the proposal. 9. LATE PROPOSAL OR MODIFICATIONS: a. Proposal and modifications received after the time set for the proposal submittal shall not be considered. Modifications in writing received prior to the deadline will be accepted. The City will not be responsible for misdirected bids. Proposers should call the Purchasing Division at (479) 575-8220 to insure receipt of their submittal documents prior to opening time and date listed. City of Fayetteville, AR RFP 16-02, Classification, Compensation, and Benefits Study Page 5 of 24 b. The time set for the deadline shall be local time for Fayetteville, AR on the date listed. All proposals shall be received in the Purchasing Division BEFORE the deadline stated. The official clock to determine local time shall be the atomic clock located in the Purchasing Division, Room 306 of City Hall, 113 W. Mountain, Fayetteville, AR. 10. LOCAL, STATE, AND FEDERAL COMPLIANCE REQUIREMENTS: a. The laws of the State of Arkansas apply to any purchase made under this request for proposal. Proposers shall comply with all local, state, and federal directives, orders and laws as applicable to this proposal and subsequent contract(s) including but not limited to Equal Employment Opportunity (EEO), Disadvantaged Business Enterprises (DBE), & OSHA as applicable to this contract. Pursuant to Arkansas Code Annotated §22-9-203 The City of Fayetteville encourages all qualified small, minority and women business enterprises to bid on and receive contracts for goods, services, and construction. Also, City of Fayetteville encourages all general contractors to subcontract portions of their contract to qualified small, minority and women business enterprises. PROVISION FOR OTHER AGENCIES: Unless otherwise stipulated by the Proposer, the Proposer agrees to make available to all Government agencies, departments, municipalities, and counties, the proposal prices submitted in accordance with said proposal terms and conditions therein, should any said governmental entity desire to buy under this proposal. Eligible users shall mean all state of Arkansas agencies, the legislative and judicial branches, political subdivisions (counties, local district school boards, community colleges, municipalities, counties, or other public agencies or authorities), which may desire to purchase under the terms and conditions of the contract. 11. COLLUSION: The Proposer, by affixing his or her signature to this proposal, agrees to the following: "Proposer certifies that his proposal is made without previous understanding, agreement, or connection with any person, firm or corporation making a proposal for the same item(s) and/or services and is in all respects fair, without outside control, collusion, fraud, or otherwise illegal action." 12. RIGHTTOAUDIT, FOIA, ANDJURISDICITON; a. The City of Fayetteville reserves the privilege of auditing a vendor's records as such records relate to purchases between the City and said vendor. Freedom of Information Act: City 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, the (contractor) 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. c. Legal jurisdiction to resolve any disputes shall be Arkansas with Arkansas law applying to the case. City of Fayetteville, AR RFP 16-02, Classification, Compensation, and Benefits Study Page 6 of 24 13. CITY INDEMNIFICATION: The successful Proposer(s) agrees to indemnify the City and hold it harmless from and against all claims, liability, loss, damage or expense, including but not limited to counsel fees, arising from or by reason of any actual or claimed trademark, patent or copyright infringement or litigation based thereon, with respect to the services or any part thereof covered by this order, and such obligation shall survive acceptance of the services and payment thereof by the City. 14. VARIANCE FROM STANDARD TERMS & CONDITIONS: All standard terms and conditions stated in this request for proposal apply to this contract except as specifically stated in the subsequent sections of this document, which take precedence, and should be fully understood by Proposers prior to submitting a proposal on this requirement. 15. ADA REQUIREMENT FOR PUBLIC NOTICES & TRANSLATION:. Persons with disabilities requiring reasonable accommodation to participate in this proceeding/event, should call 479.521.1316 (telecommunications device for the deaf), not later than seven days prior to the deadline. Persons needing translation of this document shall contact the City of Fayetteville, Purchasing Division, immediately. 16. CERTIFICATE OF INSURANCE: The successful Proposer shall provide a Certificate of Insurance in accordance with specifications listed in this request for proposal, prior to commencement of any work. Such certificate shall list the City of Fayetteville as an additional insured. Insurance shall remain valid throughout project completion. 17. PAYMENTS AND INVOICING: The Proposer must specify in their proposal the exact company name and address which must be the same as invoices submitted for payment as a result of award of this RFP, Further, the successful Proposer is responsible for immediately notifying the Purchasing Division of any company name change, which would cause invoicing to change from the name used at the time of the original RFP. Payment will be made within thirty days of invoice received. The City of Fayetteville is very credit worthy and will not pay any interest or penalty for untimely payments. Payments can be processed through Proposers acceptance of Visa at no additional costs to the City for expedited payment processing. The City will not agree to allow any increase in hourly rates by the contract without PRIOR Fayetteville City Council approval. 18. CANCELLATION: a. The City reserves the right to cancel this contract without cause by giving thirty (30) days prior notice to the Contractor in writing of the intention to cancel or with cause if at anytime the Contractor fails to fulfill or abide by any of the terms or conditions specified. b. Failure of the contractor to comply with any of the provisions of the contract shall be considered a material breach of contract and shall be cause for immediate termination of the contract at the discretion of the City of Fayetteville. c. In addition to all other legal remedies available to the City of Fayetteville, the City reserves the right to cancel and obtain from another source, any items and/or services which have not been City of Fayetteville, AR RFP 16-02, Classification, Compensation, and Benefits Study Page 7 of 24 delivered within the period of time from the date of order as determined by the City of Fayetteville. d. In the event sufficient budgeted funds are not available for a new fiscal period, the City shall notify the vendor of such occurrence and contract shall terminate of the last day of the current fiscal period without penalty or expense to the City. 19. A.SSIGNNIENT SUBCONTRACTING CORP+ORATEACQUISITIONS ANIS OR MERGERS: The Contractor shall perform this contract. No assignment of subcontracting shall be allowed without prior written consent of the City. If a Proposer intends to subcontract a portion of this work, the Proposer shall disclose such intent in the proposal submitted as a result of this RFP. b. In the event of a corporate acquisition and/or merger, the Contractor shall provide written notice to the City within thirty (30) calendar days of Contractor's notice of such action or upon the occurrence of said action, whichever occurs first. The right to terminate this contract, which shall not be unreasonably exercised by the City, shall include, but not be limited to, instances in which a corporate acquisition and/or merger represent a conflict of interest or are contrary to any local, state, or federal laws. Action by the City awarding a proposal to a firm that has disclosed its intent to assign or subcontract in its response to the RFP, without exception shall constitute approval for purpose of this Agreement. 20. NON-EXCLUSIVE CONTRACT: Award of this RFP shall impose no obligation on the City to utilize the vendor for all work of this type, which may develop during the contract period. This is not an exclusive contract. The City specifically reserves the right to concurrently contract with other companies for similar work if it deems such an action to be in the City's best interest. In the case of multiple -phase contracts, this provision shall apply separately to each item. 21. LOBBYING: Lobbying of selection committee members, City of Fayetteville employees, or elected officials regarding request for proposals, request for qualifications, bids or contracts, during the pendency of bid protest, by the bidder/proposer/protestor or any member of the bidder's/proposer's/protestor's staff, and agent of the bidder/proposer/protestor, or any person employed by any legal entity affiliated with or representing an organization that is responding to the request for proposal, request for qualification, bid or contract, or has a pending bid protest is strictly prohibited either upon advertisement or on a date established by the City of Fayetteville and shall be prohibited until either an award is final or the protest is finally resolved by the City of Fayetteville; provided, however, nothing herein shall prohibit a prospective/bidder/proposer from contacting the Purchasing Division to address situations such as clarification and/or questions related to the procurement process. For purposes of this provision lobbying activities shall include but not be limited to, influencing or attempting to influence action or non -action in connection with any request for proposal, request for qualification, bid or contract through direct or indirect oral or written communication or an attempt to obtain goodwill of persons and/or entities specified in this provision. Such actions may cause any request for proposal, request for qualification, bid or contract to be rejected. 22. ADDITIONAL REQUIREMENTS: City of Fayetteville, AR RFP 16-02, Classification, Compensation, and Benefits Study Page 8 of 24 The City reserves the right to request additional services relating to this RFP from the Proposer. When approved by the City as an amendment to the contract and authorized in writing prior to work, the Contractor shall provide such additional requirements as may become necessary. 23. SERVICES AGREEMENT: A written agreement, in substantially the form attached, incorporating the RFP and the successful proposal will be prepared by the City, signed by the successful Proposer and presented to the City of Fayetteville for approval and signature of the Mayor. 24. INTEGRITY OF REQUEST FOR PROPOSAL (RFP) DOCUMENTS: Proposers shall use the original RFP form(s) provided by the Purchasing Division and enter information only in the spaces where a response is requested. Proposers may use an attachment as an addendum to the RFP form(s) if sufficient space is not available on the original form for the Proposer to enter a complete response. Any modifications or alterations to the original RFP documents by the Proposer, whether intentional or otherwise, will constitute grounds for rejection of such RFP response. Any such modifications or alterations a Proposer wishes to propose shall be clearly stated in the Proposer's RFP response and presented in the form of an addendum to the original RFP documents. 25. OTHER GENERAL CONDITIONS: a. Proposers must provide the City with their proposals signed by an employee having legal authority to submit proposals on behalf of the Proposer. The entire cost of preparing and providing responses shall be borne by the Proposer. b. The City reserves the right to request any additional information it deems necessary from any or all Proposers after the submission deadline. c. This solicitation is not to be construed as an offer, a contract, or a commitment of any kind; nor does it commit the city to pay for any costs incurred by Proposer in preparation. It shall be clearly understood that any costs incurred by the Proposer in responding to this request for proposal is at the Proposer's own risk and expense as a cost of doing business. The City of Fayetteville shall not be liable for reimbursement to the Proposer for any expense so incurred, regardless of whether or not the proposal is accepted. d. If products, components, or services other than those described in this solicitation document are proposed, the Proposer must include complete descriptive literature for each. All requests for additional information must be received within five working days following the request. Any uncertainties shall be brought to the attention to Andrea Foren Rennie immediately via telephone (479.575.8289) or e-mail (afor @fayetteville-ar.gov). It is the intent and goal of the City of Fayetteville Purchasing Division to provide documents providing a clear and accurate understanding of the scope of work to be completed and/or goods to be provided. We encourage all interested parties to ask questions to result in all Proposers being on equal terms. f. Any inquiries or requests for explanation in regard to the City's requirements shall be made promptly to Andrea Foren Rennie, City of Fayetteville, Purchasing Manager via e-mail (af__oren.@fayetteyille-ar.gov) or telephone (479.575.8289). No oral interpretation or clarifications will be given as to the meaning of any part of this request for proposal. All City of Fayetteville, AR RFP 16-02, Classification, Compensation, and Benefits Study Page 9 of 24 questions, clarifications, and requests, together with answers, if any, will be provided to all firms via written addendum. Names of firms submitting any questions, clarifications, or requests will not be disclosed until after a contract is in place. g. At the discretion of the City, one or more firms may be asked for more detailed information before final ranking of the firms, which may also include oral interviews. h. Any information provided herein is intended to assist the Proposer in the preparation of proposals necessary to properly respond to this RFP. The RFP is designed to provide qualified Proposers with sufficient basic information to submit proposals meeting minimum specifications and/or test requirements, but is not intended to limit a RFP's content or to exclude any relevant or essential data. i. Proposers irrevocably consent that any legal action or proceeding against it under, arising out of or in any manner relating to this Contract shall be controlled by Arkansas law in Washington County. Proposer 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. j. The successful Proposer 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 the successful Proposer 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 the successful Proposer shall be subject to prior liens of all persons, firrns, and corporations for services rendered or materials supplied for the performance of the services called for in this contract. k. The successful Proposer'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. The successful Proposer shall keep himself/herself 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 these Contract Documents or in the specifications herein referred to, in relation to any such law, ordinance, regulation, order or decree, s/he shall herewith report the same in writing to the City of Fayetteville. 26, CONTRACT REQUIREMENTS: Any contract between the successful proposer and the City shall include the following: a. Indemnification: The awarded Proposer shall 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 the successful Proposer and anyone directly or indirectly employed by him/her 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 employees, by any City of Fayetteville, AR RFP :16-02, Classification, Compensation, and Benefits Study Page 10 of 24 employee of the successful Proposer, directly or indirectly employed by him/her, 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 orfor the successful Proposer or under the Workers' Compensation Acts, Disability Benefits Acts or other employee benefits acts. Suspension or Termination of Services: City of Fayetteville or awarded Proposer shall have the right to terminate this agreement at any time upon thirty (30) days advance written notice to the other party of its intention to terminate. Laws and Regulations: The successful Proposer'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. The successful Proposer shall keep himself/herself 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 anyjurisdiction or authority over same. If any discrepancy or inconsistency should be discovered in these Contract Documents or in the specifications herein referred to, in relation to any such law, ordinance, regulation, order or decree, s/he shall herewith report the same in writing to City of Fayetteville. Proposer 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 himself/herself or by his/her employees. Licenses of a temporary nature, necessary for the prosecution of the services shall be secured and paid for by the successful Proposer. Assignments: The successful Proposer 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 the successful Proposer 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 the successful Proposer 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. Insurance: The successful Proposer shall not commence work under this contract until all insurance described below has been obtained, certificate listing the City as an additional insured, and such insurance has been approved by City of Fayetteville. Premiums for all insurance policies required shall be the responsibility of the Proposer. Errors and Omissions: The successful Proposer shall hold City of Fayetteville harmless from any liability arising from acts or omissions of Employees or Proposer's Subcontractors and shall furnish to City of Fayetteville, certificates of insurance certifying that the Proposer is carrying errors and omissions or professional liability insurance with minimum limits of $1,000,000.00 per claim ii. Worker's Compensation: Statutory Amount iii. Comprehensive General & Automobile Insurance City of Fayetteville, AR RFP 16-02, Classification, Compensation, and Benefits Study Page 11 of 24 f. Payments: If the Consultant has made application for payment as above, the Project 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 City intends to pay accepted invoice within thirty (30) calendar days. No payment shall constitute an acceptance of any services not in accordance with the Contract Documents. Final payment: Upon receipt of written notice from the Consultant that all contracted services are complete, the Project Manager will, within a reasonable time, review all services and reports. If the Project Manager finds the services and reports of the Consultant complete and acceptable in accordance with the provisions of the Contract Documents, s/he shall, within a reasonable time, process a pay request so that final payment can be made. The acceptance of final payment shall constitute a waiver of all claims by the Consultant except those previously made in writing and still unsettled. g. Renewable Terms: The City reserves the right to award this contract for a second classification, compensation, and benefits study within five (5) years from City Council approval date of contract, The City also reserves the right to contract with the awarded vendor within such five (5) year period for work related to this RFP and the City's classification, compensation, and benefits mission. h. 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, the contractor 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 photo coping costs pursuant to the FOIA may be assessed for this compliance. i. Changes in Scope or price: 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. 27. APPENDIX DOCUMENTS: The appendix documents below are included as part of this RFP a, Appendix A — Organizational Chart as of 01.21.16 b. Appendix B —Job Titles and Grades c_ Appendix C — Police Step Plan d. Appendix D— Fire Step Plan e. Appendix E — Merit Pay Plan f. Appendix F — 2016 PPO g_ Appendix G — 2016 High Deductible Health Plan (HDHP) and Health Savings Account (HSA) h. Appendix H — Retirement Plans i. Appendix I — Paid Leave j: Appendix J — Data Sources List City of Fayetteville, AR RFP 16-02, Classification, Compensation, and Benefits Study Page 12 of 24 City of Fayetteville RFP 16-02, Classification, Compensation, and Benefits Study SECTION B: Scope of Work and General Information 1. PURPOSE: The City of Fayetteville, Arkansas, hereinafter referred to as "the City", is requesting proposals for comprehensive classification, compensation and benefit reviews with recommendations for step pay plans for Police and Fire (uniformed) and merit pay plans (non -uniformed) that are internally equitable and externally competitive. The City desires to implement classification and compensation plans that are legally defensible, support objective measurement of compensable factors and maintain internal equity. Our compensation philosophy is designed as a strategy to support the City's commitment to recruiting, rewarding, retaining and motivating an excellent workforce. This is accomplished through competitive and equitable pay plans, practices and benefit offerings. The scope of work within this document requires the development of strategies, policies and practices necessary to carry out the total compensation philosophy. The City encourages all responding firms to propose any services they recommend to achieve these objectives that are not specifically requested herein. Questions from interested parties shall be submitted to Andrea Rennie, City Purchasing Manager, no later than Sunday, May 08, 2016 via e-mail to aforenWayetteville-ar.gpv. 2. CURRENT PROGRAMS: The City of Fayetteville is located in the northwest corner of Arkansas and has an estimated population of 80,600. Fayetteville serves as the seat of Washington County. The City is part of the Fayetteville - Springdale -Rogers, AR -MO MSA (Metropolitan Statistical Area), with a population of just under 500,000. The City of Fayetteville operates under a Mayor -Council form of government. The City Council is composed of eight council members and a Mayor, Reference AppendixA— Organizational Chart. The City's 2016 Budget provides for 777.55 full-time equivalent positions. Within these authorized positions are 298 active job descriptions. 212 of these descriptions are one incumbent positions and the remaining 86 are multiple incumbent positions, Reference Appendix B —Job Titles and Grades. The City currently utilizes the Monagement Advisory Group's point factor method of job evaluation. This system has been in place since 2007. The development of the City's current compensation philosophy, pay grids and compensation policies were facilitated by Management Advisory Group consultants. a. PAY PLANS I. The City currently has three separate pay plans, one plan for merit, non -uniformed employees and separate step chart pay plans for uniformed Police and Fire. Proposers shall reference the Appendix documents below for understanding of current pay plans. 1. Reference Appendix C— Police Department Pay Plan 2. Reference Appendix D— Fire Department Pay Plan. City of Fayetteville, AR RFP 16-02, Classification, Compensation, and Benefits Study Page 13 of 24 3. Reference Appendix E— Merit Pay Plan ii. These groups are comprised of approximately 525 non -uniformed employees, 125 uniformed Police and 119 uniformed Fire personnel. Police and Fire uniformed employees are covered by Civil Service Rules and Regulations for selection and promotion. Uniformed Civil Service employees in the Police and Fire departments are compensated through a step -rate pay system and the City's non -uniformed employees are compensated through an open range system based on merit pay (Reference Appendix E — Merit Pay Plan). The last salary survey was conducted in 2012 and implemented March 2013. iii. The City has made a decision to continue to utilize a step -rate pay system for the uniformed Police and Fire employees. The compensation plan for non -uniformed employees is to be merit based; the City is willing to consider open pay ranges and step - rate pay systems that accomplish this goal. b. BENEFITS i. The City offers two healthcare plans, one plan is a PPO (Reference Appendix F) and the other plan is a high -deductible, HSA plan (Reference Appendix G). ii. There are two retirement plan options, one plan is for regular, full-time merit employees and the other plan is for Civil Service employees (Reference Appendix H— Retirement Plans). iii. The City provides paid holidays and accrual of paid leave to eligible, regular full and part- time employees (Reference Appendix I— Paid Leave). iv. Additional benefits the City offers are dental and vision coverage, flexible spending and health saving accounts, life insurance, disability coverage, AD & D insurance and supplemental life insurance. 3. SCOPE OF WORK: The scope of work in this section has been provided to communicate the work in which the City believes is critical for success of this project. In the event a Proposer believes a different approach or different steps should be taken, which are critical, Proposer shall clearly provide differences in a clear and precise manner to the City with its RFP response: a. Item 1: The Consultant shall facilitate the development of an updated and competitive compensation philosophy. b. Item 2: The Consultant will be provided a list of benchmark cities as data sources to be used to conduct a salary survey, Reference Appendix J— Data Sources List. The list of benchmark cities was chosen by an Ad Hoc Compensation Committee in 2006 and revisited again in 2013, In 2006, the committee agreed upon the data sources as valid salary comparisons for the City of Fayetteville based on shared community characteristics. The City has determined it competes in different labor markets for different types of positions; therefore, the City has identified three labor markets — national, regional and local. The regional and local markets are defined below. Both public and private employers shall be included in the survey as appropriate. Consultant shall coordinate with the City to arrive at a final Data Source List. Reference sub -part iii below for guidance on the City's vision for the finalized data source list. City of Fayetteville, AR RFP 16-02, Classification, Compensation, and Benefits Study Page 14 of 24 Regional - Vibrant, growing communities in the states of Arkansas, Kansas, Louisiana, Missouri, Oklahoma and Texas with a population of 65,000 to 95,000 and selected major university communities within those states. Population limits do not apply to university towns. ii. Local - Northwest Arkansas cities of Springdale, Rogers, and Bentonville. W. Consultant shall provide an evaluation of the 2006 data source list as it compares to what data sources are a best fit for the study at hand. The City prefers to keep the data source list close to the same listing from 2006 if possible; however, the City also realizes modification might be necessary. The City desires to keep competition under consideration when considering data sources while realizing a city may not necessarily mirror characteristics of Fayetteville; however, fact remains the city might be considered a competitor for top talent. iv. Final data source list shall he approved by the City prior to any benchmarking taking place. v. Additional survey tools shall be considered for professions where salaries have not been competitive to the market, including but not limited to IT, Engineering, Utility Management, Executive positions, and under market single incumbent positions. vi. Lowest level positions in the City, specifically positions less than $13.00 per hour ($27,400 annually) shall be carefully evaluated and consultant shall provide information on what other employers are doing to be paying a livable wage to these positions. c. Item 3: Develop a salary survey form and gain approval from designated City representative(s) prior to its distribution. Review selected benchmark positions and update as needed, The survey form will provide a method for participants to indicate the degree of job match for each benchrnarkjob. The salary study will include supplemental pay types such as longevity pay, on -tali pay, certificate pay, special team pay, top -out bonus, shift differential, and other supplemental pays. Sufficient data shall be collected to compare base pay for uniformed employees. A minimum number of five (5) responses for each merit position is required to provide sufficient comparative data. The consultant shall request each participant to report the date of the last revision to the salary schedule. i. The consultant shall distribute the survey and perform the appropriate follow-up to encourage participation in the survey. All survey responses shall be reported and summarized for each benchmark position. d. Item 4: Develop a benefit survey form of employee benefits (medical, dental, vision, retirement, employee leaves, FSA, HSA, life insurance, car allowances, flexible wort: schedules, wellness programs, etc.) and premium cost sharing/HSA contributions with comparable cities (past comparable cities are referenced in Appendix]). i. Provide reasons and recommendations to enhance the City's benefit offerings, including but not limited to implementation guidelines and associated costs. ii. Develop a methodology to quantify the value of benefits and how such benefits can be incorporated into a total compensation package. City of Fayetteville, AR RFP 16-02, Classification, Compensation, and Benefits Study Pape 15 of 24 e. Item 5: Provide project status updates as requested by the City. The reports h a I I include accomplishments during the reporting period and any foreseeable issues which may affect the timely completion of the project. f, Item 6: Using a factor evaluation or other quantitative evaluation procedure, assign a job evaluation value to eachjob description provided by the City. Present and explain the resultingjob classification structure to senior management. Meet with Department Directors and/or other appropriate supervisory personnel to resolve conflicts relating to the classification of individual jobs. Recommend and conduct a process for employee appeals regarding the classification of the assigned position and respond in writing to any appeals. g. Item 7: Train the City's existing Job Grading Committee, consisting of approximately fifteen (15) City Employees, to classify positions utilizing the consultant's evaluation procedure during the Study's job classification process. h. Item 8: Provide access to and demonstrate the use of any automated tools which support the classification and compensation system. This shall include samples of electronic applications to support the recordkeeping process for merit/step increases and any decision support systems linked to the job evaluation process. The City may or may not choose to purchase the products offered. Proposer shall provide an itemized Fist which corresponds with each item(s) description and functionality with RFP response. i. Item 9: Review existing compensation policies and practices. Draft recommended compensation policies and practices which align with the updated compensation philosophy of the City, j. Item 10: Review ordinances that set pay for elected officials. Recommend revisions as appropriate. k. Item 11: Recommend mechanisms to maintain both internal and external pay equity. i. Recommend the frequency of market surveys to assess the City's competitive position relative to the adopted total compensation philosophy and the defined markets. I. Item 12: Geographically modify the survey data using the most current and reliable cost of labor index for the City of Fayetteville compared to responding survey cities. Adjusted data shall be aged to the implementation date of March 01, 2017 if it was collected more than 90 days prior to this date. The report shall include an explanation of the survey methodology, the requested geographic adjustment process and any aging process applied to the survey data. m, Item 13: Present a draft salary and benefit survey report by November 18, 2016 and a final salary and benefit survey analysis with recommendations and implementation proposals no later than December 16, 2016. Communicate initial survey results to employees and review the proposed implementation process. All reports shall be available to the City in an electronic format, preferably a searchable PDF document. n. Item 14: Audit classification specifications for Fair Labor Standards Act (FLSA) exempt/non-exempt classifications. For the exempt positions, document the exemption test met by the position. o. Item 15: Audit all classifications for appropriate Equal Employment Opportunity (EEO -4) job categories. p. Item 16: Develop an implementation plan for the new pay plans with consideration of proposed FLSA overtime exemption changes. This plan shall detail out the placement of each employee within the proposed salary ranges. Recommend at least two implementation strategies—full implementation and City of Fayetteville, AR RFP 16-02, Classification, Compensation, and Benefits Study Page 16 of 24 implementation within budget constraints. All cost estimates shall be broken out by funding sources. This breakout will be provided to the awarded consultant. q. Item 17: Present the final salary and benefit survey report to the City no later than December 16, 2016. The report shall include a description of the classification, compensation and benefit plan and recommended policies and practices for maintenance and administration of the program. The consultant shall present the final report, recommendations, implementation options and associated cost estimates on site at the January 10, 2017 Council Agenda Session in Fayetteville, AR. The consultant shall attend and/or present at the January 17, 2017 Council Meeting to provide information and answer questions. r. Item 18: Create final communication materials and conduct employee educational meetings to explain the job evaluation system, survey results and implementation plan. s. Item 19: Provide ongoing consultation and supportforthe maintenance of classification specifications and pay plans for a five (5) year term from date of award at no additional fee to the City of Fayetteville. Ongoing consultation and support shall be for typical standard support as it relates to the City understanding the consultant's software and utilizing such software to its fullest capacity. Out of scope work shall be priced separate, post contract, as needed for unforeseen circumstances such as reorganizations, organizational chart restructuring, adding departments or divisions, etc, t. Item 20: Depending upon the resulting compensation philosophy from the selected consultant as well as otherfactors, the City mayor may not decide to procure annual updates (to evaluate industry fluctuations, etc). Each Proposer shall provide pricing via an annual rate along including a scope of work detailing what is included with the annual fee. 4. SUMMARY OF REQUIRED SIGNIFICANT DELIVERABLES This list is a summary of significant project deliverables. It is not representative of every deliverable the City expects from the selected consultant. a. Align compensation philosophy to ensure competitive positioning in the market, Reference Appendix K— Compensation Philosophy. b. Salary survey and benefit analysis reports c. Evaluation of each job description d. FLSA and EEO -4 review e. Police step pay plan f. Fire step pay plan g. Merit pay plan h. Implementation plan outlining at least two options with the associated cost estimates L Policies, practices and processes to administer and maintain the system, including recommended frequency of salary surveys and market reviews j. Communication materials and employee educational meetings L HR staff and Job Grading Committee training forjob evaluation I. Procedure to review and resolve employee objections of job evaluation results City of Fayetteville, AR RFP 16-02, Classification, Compensation, and Benefits Study Page 17 of 24 5. SUBMITTAL. REQUIREMENTS, The Proposer shall provide adequate information that will render it qualified and capable of effectively accomplishing the scope of services. The proposal will be reviewed by a Selection Committee which could include ranking. Since there is no assurance of the Proposer having any other opportunity to communicate its ability, the proposal response shall negate any ambiguity with respect to the Proposer's ability and approach. All respondents shall submit the following information with submittal at a minimum: a. ,Methods and Approach. Describe expected approach and identify each task. Describe the anticipated interaction with the City and a description of the method(s) which will be used to successfully accomplish the project. Provide a detailed timeline of the anticipated schedule for completing each task. b_ Scope of Work/Deliverables. Provide deliverables for the Scope of Work outlined by the City in this RFP. C. Qualifications and Experience. Provide relevant information regarding previous experience related to developing similar projects or contracts completed on behalf of cities or counties within the State of Arkansas or for other public entities outside of Arkansas during the past five (5) years. References in relation to sirnilar projects is required. Proposals shall also provide information for all entities in which they are presently or have been engaged with during the past five (5) years. All proposers shall submit a minimum of three (3) governmental references, with work relationships within the past five (S) years. Provide in this section, the company's primary business interest and/or operations including any affiliations. d. List of Project Personnel. Proposer shall provide a description of its staff and work force that will be assigned to effectively facilitate the requirements of this project: This description shall include; ata minimum, the number of permanent employees, parttime employees, and an organizational chart reflecting their responsibilities. It is the desire of the City that senior level strategic input is provided at all stages of the project. Resumes shall be no more than two pages (a page being defined as a single sided document), and shall include, at a minimum: • Position title for each person assigned to this project; • Tenure with Proposer for each person assigned to this project; • Education of each person,- Experience erson;Experience of each person; • Estimated number of hours for each person assigned to this project; * Total billable hourly rate for each person assigned to this project; • Any other pertinent information related to this project e. Availability. Proposers shall describe the availability of project personnel and company to City of Fayetteville, AR RFP 16-02, Classification, Compensation, and Benefits Study Page 18 of 24 participate in this project in the context of the Proposer's other commitments. Listing of all Fees. Proposer shall clearly itemize and provide a list of all fees to cover the requested scope of work and deliverables. Proposer shall also provide an hourly rate for any additional work which is not included in the scope of work. Fees proposed are extremely important; however, fees will not be the determining factor in the selection process. It is not the intent of the City of Fayetteville to limit innovative solutions by dollar constraints, but rather to determine which proposal has the potential of providing the best value for the services required. Fee proposal shall clearly set forth the basis for the time and fees to be charged for the work proposed and at a minimum should contain the following information: • Estimate of the number of hours to complete scope of services • Hourly rates for performing such services as indicated above • Any and all costs associated with this study including any tools to be used o This shall include any software fees as well as applicable annual maintenance fees. Software pricing (initial fees and ongoing) shall include the City being able to stay on the most up to date version of the software. • Total firm fixed cost to complete this study, including a payment schedule • Annual pricing for market updates, if so desired for completion by the City, as described in Item 20. City of Fayetteville shall not be liable for any expense incurred in connection with preparation of a response to this document. In addition, City of Fayetteville shall reserve the right to accept any part or the Proposer's entire fee schedule and to negotiate any charges contained therein, unless otherwise qualified by the Proposer. 6. PROPOSAL CONTENT: Proposals shall be prepared simply and economically, providing a straight forward, concise description its ability to meet the requirements for the project. Fancy bindings, colored displays, and promotional material are not required. Emphasis should be on completeness and clarity of content. All documents should be typewritten on standard 8 Yz" x 11" white papers and bound in one volume. Exceptions would be schematics, exhibits, one page resumes, and City required forms. Limit proposal to twenty- five (25) pages or less, excluding one-page team resumes, references, and forms required by the City for completion. All proposals shall be sealed upon delivery to the City of Fayetteville. All Proposers shall submit ten 10sets of their proposal as well as one 1 electronic cop on a properly labeled CD or other electronic media device. The electronic copy submitted shall be contained into one (1) electronic file and shall be identical to the hard copies provided. The use of Adobe PDF documents is strongly recommended. Files contained on the CD or electronic media shall not be restricted against saving or printing. Electronic copies shall not be submitted via e-mail to City employees by the Proposer and shall be provided to the City in a sealed manner. FedEx, UPS, USPS, or other packages should be clearly marked with the RFP number on the outside of the mailing package. 7. NEGOTIATIONS: City of Fayetteville, AR RFP 16-02, Classification, Compensation, and Benefits Study Page 19 of 24 If the negotiation produces mutual agreement, a contract will be considered for approval by the City Council. If negotiations with the highest ranking Proposer fail, negotiations shall be initiated with the next highest ranking Proposer until an agreement is reached.. The City reserves the right to reject all offers and end the process without executing a contract. 8. CONTRACT ADMINISTRATION: The Contract Administrator for this Request for Proposal (RFP) shall be the City of Fayetteville's assigned Project Manager, which is intended to be Brenda Reed, Human Resources Director or Michele Bechhold, Senior Human Resources Officer. The City's selected Project Manager will; a. Provide the successful Proposer direction and monitor the results within the limits of the contract's terms and conditions. b. Manage issues which may arise as to quality and acceptability of services performed. c. Shall judge as to the accuracy of quantities submitted by the successful Proposer in payment requests and the acceptability of the services which these quantities represent. d. Serve as the point -of -contact for developing contract changes and amendments to be approved by City of Fayetteville. e. Shall act as City of Fayetteville's Representative during the execution of any subsequent contract and related amendments. All questions arising, subsequent to contract award, shall be addressed to the Purchasing Division. Other than the Project Manager, the successful Proposer shall not take guidance or influence from any group or individual in relation to this project. All communication, both formal and informal shall be routed through the Project Manager. 9. SELECTION CRITERIA: The following criteria will be used by the committee to evaluate and score responsive proposals. Proposers shall include sufficient information to allow the committee to thoroughly evaluate and score the proposal City of Fayetteville reserves the right to accept a proposal, as submitted, and enter directly into a contractual agreement with a selected Proposer. Each proposal submitted is not required to be ranked by the selection committee; however, all proposals will be evaluated, The contract may be awarded to the most qualified firm, per the evaluation criteria listed below, based on the evaluation and voting of the selection committee. Following the evaluation of the proposals, the Selection Committee may request that the top ranking firm(s) make an oral presentation, be interviewed or submit best and final offers. If presentations are necessary, they will take place in Fayetteville, Arkansas. Notices will be sent by the Purchasing Division. 1) 30% Qualifications in Relation to Specific Project to be Performed: Information reflecting qualifications of the firm. Indicated specialized experience and technical competence of the firm in connection with the type and complexity of the service required. Subcontractors, if used, must be listed with RFP response. 2) 20% Experience, Competence, and Capacity for Performance: including information reflecting the names, titles, and qualifications (including experience and technical competence) of the major personnel assigned to this specific project. City of Fayetteville, AR RFP 16-02, Classification, Compensation, and Benefits Study Page 20 of 24 3) 25% Proposed Method of Doing Work: A proposed work plan (description of how the project would be conducted as well as other facts concerning approach to scope you wish to present) indicating methods and schedules for accomplishing scope of work. Include with this the amount of work presently underway. 4) 15% Past Performance: Previous evaluations shall be considered a significant factor. If previous evaluations with the City are not available, the professional firm's past performance records with other governmental agencies, and others will be used, including quality of work, timely performance, diligence, and any other pertinent information. Firm shall provide a list of similar jobs performed and person whom the City can contact for information. 5) 10% Cost/Fees: Proposer shall provide a total listing of any fee the City could be charged. A fee shall be included for the presented scope of work as well as any other additional fee, All fees shall be clearly identified with RFP response and be itemized as much as possible. 10. RENEWABLE TERMS: The City reserves the right to award this contract for a second classification, compensation, and benefits study within five (5) years from City Council approval date of contract. The City also reserves the right to contract with the awarded vendor within such five (5) year period for work related to this RFP and the City's classification, compensation, and benefits mission. City of Fayetteville, AR RFP 16-02, Classification, Compensation, and Benefits Study Page 21 of 24 11. ANTICIPATED PROJECT TIMELINE: subject to change Date Time Description Friday, April 15, 2016 N/A Date RFP available and date of first advertisement Friday, April 29, 2016 N/A Date of second advertisement Tuesday, May 03, 2016 9:30 AM Non -Mandatory Pre -Proposal Conference Midnight Sunday May 08, 2016 Deadline for questions from vendors Friday, May 13, 2016 End of Day City intends to issue Final Addendum (if necessary) 2:00 PM, local tin7e to Deadline to submit a sealed response to the City Friday, May 27, 2016 Fayetteville, of Fayetteville. Proposals shall be received prior ARto the deadline, no exceptions. N/A City intends to short list vendors no later than this Friday, June 17, 2016 date Week of June 27, 2016 TBD Interviews, if applicable Friday, August 19, 2016 N/A City Council Request Deadline for September 6, 2016 City Council Meeting Tuesday, August 30, 2016 5:30 PM Agenda Session for September 6, 2016 City Council Meeting Tuesday, September 06, 2016 6:00 PM Council Meeting to consider contract award Monday, September 19, 2016 N/A City authorizes work to begin (no later than this date) City of Fayetteville, AR RFP 16-02, Classification, Compensation, and Benefits Study Page 22 of 24 City of Fayetteville RFP 16-02, Classification, Compensation, and Benefits Study SECTION E: Signature Submittal — Required with all responses Proposers shall include this farm completed in its entire with RFP response. This farm shall not count towards page limitations set forth in the RFP. 1. DISCLOSURE INFORMATION Proposer shall disclose any possible conflict of interest with the City of Fayetteville, including, but not limited to, any relationship with any City of Fayetteville employee. Proposer response must disclose if a known relationship exists between any principal or employee of your firm and any City of Fayetteville employee or elected City of Fayetteville official. If, to your knowledge, no relationship exists, this should also be stated in your response. Failure to disclose such a relationship may result in cancellation of a purchase and/or contract as a result of your response. This form must be completed and returned in order for your bid/proposal to be eligible for consideration. PLEASE CHECK ONE OF THE FOLLOWING TWO OPTIONS, AS IT APPROPRIATELY APPLIES TO YOUR FIRM: 1) NO KNOWN RELATIONSHIP EXISTS __2) RELATIONSHIP EXISTS (Please explain):_ I certify that; as an officer of this organization, or per the attached letter of authorization, am duly authorized to certify the information provided herein are accurate and true, and my organization shall comply with all State and Federal Equal Opportunity and Non -Discrimination requirements and conditions of employment. 2. PRIMARY CONTACT INFORMATION At the discretion of the City, one or more firms may be asked for more detailed information before final ranking of the firms, which may also include oral interviews. NOTE: Each Proposer shall submit to the City a primarycontact name, e-mail address, and phone number (preferably a cell phone number) where the City selection committee can call for clarification or interview via telephone. Corporate Name of Firm: Primary Contact: Phone#1 (cell preferred): E -Mail Address: Title of Primary Contact: Phone#2: 3. ACKNOWLEDGEMENT OF ADDENDA Acknowledge receipt of addenda for this invitation to bid, request for proposal, or request for qualification by signing and dating below. All addendums are hereby made a part of the bid or RFP documents to the same extent as though it were originally included therein. Proposers/Bidders should indicate their receipt of same in the appropriate blank listed herein. Failure to do so may subject vendor to disqualification. City of Fayetteville, AR RFP 16-02, Classification, Compensation, and Benefits Study Page 23 of 24 ADDENDUM NO. SIGNATURE AND PRINTED NAME DATE ACKNOWLEDGED 4. PRICING: Pricing shall be attached as a separate form. Reference RFP for details on what all pricing shall include. 5. DEBARMENT CERTIFICATION: As an interested party on this project, you are required to provide debarment/suspension certification indicating in compliance with the below Federal Executive Order. Certification can be done by completing and signing this form. Federal Executive Order (E.O.) 12549 "Debarment and Suspension" requires that all contractors receiving individual awards, using federal funds, and all sub -recipients certify that the organization and its principals are not debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded by any Federal department or agency from doing business with the Federal Government. Signature certifies that neither you nor your principal is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any federal department or agency. Questions regarding this form should be directed to the City of Fayetteville Purchasing Division. 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After averaging, the market is not recognizing a difference in pay at these two grade levels. Moving forward, jobs in grades 107 & 108 will be listed on the pay grid with one pay range labeled 107/108. From a status change standpoint, employee movement from a position graded 107 to 108 will not be a promotion; it will be a lateral move, ****NOTE. The hourly rates have been rounded up to two decimal places beginning 3/18/2013 and are now considered to be the Official Hourly Rate (OHR), Any difference in the annualized salary is a result of rounding and you should not attempt to determine the OHR by taking a published annual rate and dividing by 2080. co O X N aj � M c T Q m T N N lD o T CD O CL m U C• a- a- bi LLn. r� c cv a E m LL c 0 N d O U 00 0 T M 4H o �r; G U s L O Cd L C U Y c 3 a u a o 41-1 = a CL Y CL U o a �, s U �a�i o 3 3 0 U' a� 'o v t cd Y fl. :3 E > O_ 7' L a N C N G LO L U s- E O U bA L' b00 ., O O O G eA i EUm� > ° o 3ca 0�Y E x � O f]. 0 N W OCL N O. sU.. 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UcCa -AXrcCna L N m x- s K U v] l� v) a N (- Q N F— ccs O o E- c °' C1 : V a `° Appendix H - Retirement Plans Employee Retirement Savings Plan Options The City offers two plan options for regular full-time merit employees, and Civil Service employees if they choose to participate (with no City contribution) in addition to LOPFI (with a City contribution rate required by the plan). Eligibility To be eligible for the plans you will need to have completed 1 year of service. Year of service is defined as a 12 consecutive month period during which you are continuously employed as an eligible employee. Contributions A minimum employee contribution of 3% of eligible compensation in the plan is required to participate and qualify for the City's contribution of 12%. Maximum contributions are set every year by the IRS. See maximums for each plan below. Plan oarticioants are 100% The 401(A) plan provides for after-tax contributions where your contributions are deducted from your paycheck after taxes are calculated, Your contributions are not taxable when withdrawn however, earnings are taxable. The 457 plan provides for pre-tax contributions where your contributions are deducted from your paycheck before taxes are calculated. Your contributions along with the earnings will be taxable when withdrawn from your plan account. 2016 Annual Maximum Contribution: 13% 2016 Annual Maximum Contribution: $18,000; (the required 3%+ 10% elective participants who are currently age 50 or will be age contribution) 50 in 2016 may contribute up to an additional $6,000 in "catch-up" contributions. The total annual contribution limit for a 457 participant age 50 or older is $24,000. Nlaking Changes You may change your contribution amount or suspend contributions by completing the Retirement Plan Change Form. Such change or suspension shall be effective on the first payroll date of the calendar month following completion of the change form. You may change your designation of beneficiary at any time by completing the Retirement Plan Change Form. Contact your Benefits Administrator for the change form. You may change your investment options at any time by logging in to StartRight website or calling BOKF Participant Services Group at 800.976.9557. Arkansas Local Police and Fire Retirement System (LOPFI) Civil Service employees are automatically enrolled in LOPFI with the option to also participate in the City's Retirement Plans. Contributions Each member of this plan is required to contribute 8.5% of their compensation. The City's contribution is set annually according to the requirement of the plan. U HR -38 Paid Absence Policy Page 1 of 4 CITY OF FAYETTEVILLE, ARKANSAS POLICY AND PROCEDURE Subject: Appendix I - Paid Absence Policy Policy Number: IEIR-38 Original Policy Date: January 10, 2011 Effective Date ofNew/Revised Policy: Revision Dates: January 10, 2011 Custodian of Policy -.. Mayor's Signature and Date Hinnan esources el--- - ,i2z% HR -38.0 PURPOSE: 4 / Ce The purpose of this policy is to clarify whether a particular employee absence will be paid or unpaid. HR -38.1 POLICY: A. Whether an employee's absence is paid or unpaid will nonnally depend upon whether the individual employee has earned enough paid leave in his/her paid leave banks so that lie/she will be paid during a given absence. B. The types of paid leave which regular, full time employees (and regular, part time employees after two years of service) may accrue in their paid leave banks, and use in keeping with the individual policies on each type of leave, are; - Paid sick leave - Paid vacation leave - Paid personal day leave - Paid comp time leave (only for hourly employees) - Professional development leave C. The types of paid leave which all regular, full time employees and eligible part time employees will receive when the requirements of City policies are met are: - Paid holiday leave - Paid funeral leave - Paid military leave HR -38 Paid Absence Pot icy Page 2 of 4 • Paid Jury Duty D. In addition, eligible employees may utilize crisis leave (paid out of sick leave banks), catastrophic leave (see applicable policy), and Family and Medical Leave Act ("FMLA") leave (paid out of various banks per FMLA policy). E. Uniformed Police employees may be eligible for paid fitness leave earned as a result of meeting certain work related fitness requirements. F. In order to maintain fairness across divisions and administrative supervision of' matters affecting the City budget and employee morale, City supervisors are not permitted to create new or additional types of paid leave without first obtaining written authorization from Human Resources, the Finance Director, the Chief of Staff, and the Mayor. G. Employees may donate certain types of paid leave hours from their own paid leave banks to other employees' paid leave banks. The types of leave an employee may donate to another are governed by the applicable individual leave policies and are limited to: - Catastrophic leave • Professional development leave H. The presence of accrued leave in an accrued leave bank docs not mean the employee has the automatic right to use it to take a day off. Supervisors are responsible for seeing to it that all the work gets done with a minimum of overtime, and are accordi ngly always in charge of employee schedules and have the final say on whether an employee is permitted to take a day off of work. 1. UneXCUSed absences are unpaid, as are absences for which there is no accrued paid leave available in the employee's paid leave banks. An exception to this would be a scheduling instance as described in Section 37.1(E) of HR -37, City Attendance Policy: Planned and Unplanned Absences.. J. Employees are, of course, expected to be honest with their supervisors and this is particularly true with regard to their requests for time off work for reasons pertaining to sick leave, funeral leave, crisis leave, or emergency situations. Dishonesty in this or any other context is considered valid grounds for disciplinary action. Ifthe question arises as to whether an employee's activities while off work are generally consistent with the reasons given by the employee for missing work due to sick leave, funeral leave, crisis leave, or an emergency situation, the issue will be decided based upon the totality of the circumstances. K. Employees may not normally be absent without pay unless all of their accrued leave banks are depleted • 2. One exception to this rule can occur where an employee out for This rule assumes that benefits admin istration may occasionally necessitate a few accrued leave ban k hours being authorized by HR to be set aside by the City to assist the employee in paying for employee insurance premiums HR -38 Paid Absence Policy Page 3 of 4 medical related reasons, in conjunction with calculation assistance from l -IR and the employee's supervisor, intentionally sets aside a portion of accrued leave for later payrolls during the anticipated absence for the sole purpose of continuation of benefits. A second exception may occur in the rare situation where, by prior permission in writing, the employee's Department head, the City's Finance Director, and the City's Chief of Staff sign an approval in writing for a particular employee to take an unpaid leave of absence despite having accrued leave in leave banks available for use. This type of rare privilege should be reserved for unusual circumstances and only for employees with an established documented history of good job performance. L. Employees may be paid some or all of their accrued but unused paid leave out of their paid leave banks upon termination of employment, depend ing on whether they meet the criteria set out in the individual policies for each type or paid leave bank. If a Civil Service employee (uniformed Police of Fire employee) appeals a termination then if the appeal results in reinstatement of employment the employee will be required to reimburse the City for the leave banks that were paid out. M. Civil Service (uniformed Police or Fire) employees transferring out of the Police Department or Fire Department from a Civil Service position to a merit employee position will have their paid leave banks paid out as if they had termi nated their employment with the City. Other employee transfer situations will not normally requi re or permit a payout of paid leave banks. The transferring employee's seniority dates will remain unaltered for paid leave accrual (and benefit eligibility) purposes. N. Making up time worked instead of using paid leave' : The direct supervisor (or other designee) of an hourly employee has the discretion to agree in advance to allow an hourly employee to miss regularly scheduled work and then make it up as long as the time is made up within the same workweek (or lookback period ror uniformed fire and police employees) and is a non -routine, occasional situation. Such discretion should be based on considerations of scheduling, staffing, the services provided by that Division/Department, budget considerations (especially overtime caused by others having to work extra), the quality of the employee's attendance otherwise, and general fairness to the other employees in the Division/Department. 2. Salaried employees at the City are often in positions of increased responsibility and are expected to regularly and routinely work over 40 hours per workweek. Salaried employees may be permitted by their supervisors to make up work during an extended absence, such as the process described in the Benefits Continuation section of City Policy H R- 27, FM19LA. This rule assumes that benefits adm in istration may occasionally necessitate a few accrued leave bank hours being authorized by HR to be set a.sicic by the City to assist the employee in payi ng for employee insurance premiums during an extended absence, such as the process described in the Benefits Continuation section of City Pol icy fiR- 27, FNJLA. Please note that this .section is not intended to apply to Uniformed Pol ice, or Fire "shift trade" situations. HR -38 Paid Absence Policy Page 4 of 4 missed in the same day or same workweek without having to utilize accrued leave. Supervisors have discretion to permit or not permit the employee to do so based upon the totality of the circumstances. Among the circumstances to be considered are whether: a. The employee regularly and routinely works over 40 hours each week; b. The supervisor's permission was obtained beforehand by Be salaried employee (absent emergency circumstances); and c. The request is a non -routine, occasional one. HR -38.2 PROCEDURE: Questions concerning applicability of this policy to individual situations should be directed to the designated personnel in Human Resources. Questions concerning the paid leave banks themselves should be directed to the designated payroll personnel in Accounting. ARKANSAS Appendix J - Data Source List Bentonville Conway Fort Smith Jonesboro Little Rock N. Little Rock Pine Bluff Rogers Springdale KANSAS Lawrence Manhattan LOUISIANNA Bossier City MISSOURI Blue Springs Columbia Florissant Joplin Lee's Summit O'Fallon Springfield St. Charles St. Joseph St. Peters OKLAHOMA Broken Arrow Edmond Midwest City Norman Stillwater TEXAS Bryan College Station PRIVATE SECTOR DATA OTHER PUBLIC ORGANIZATIONS University of Arkansas, Fayetteville NOARK Salary Survey This salary survey is commissioned each year by the Northwest Arkansas Human Resources Associatioi It includes both private and public employers. RFP 16-02, Addendum 1 CITY OF 7ay Date: Tuesday April 26, 2016 refille ARKANSAS To: All Prospective Vendors From: Andrea Foren Rennie, CPPD, CPPB — 479.575.8220 — aforen@fayetteville-ar.gov RE: RFP 16-02, Classification, Compensation, and Benefits Study This addendum is hereby made a part of the contract documents to the same extent as though it were originally included therein. Bidders should indicate their receipt of same in the appropriate blank of the Bid Form. BIDDERS SHOULD 1. A non -mandatory pre -proposal conference will be held on Tuesday, May 03, 2016 at 9:30 AM, local time in Room 326 at City Hall, 113 W. Mountain, Fayetteville, AR 72701. All interested parties are strongly encouraged to participate in this conference. 2. Interested parties unable to attend on site in Fayetteville, Arkansas may attend via telephone conference call option listed below. a. Conference Call Option: Call 479-718-7657 to be in open conference call. 3. Agenda for the Pre -Proposal Conference will he as stated below. a. Attendee identification — both from attendees in physical presence as well as telephone. At 9:30 AM, all attendees will be asked to provide their company name, primary contact, phone number and email. b. RFP 16-02 i. Administrative summary (Purchasing) ii. Reminder of Deadline for Questions (Purchasing) iii. Scope review (Human Resources) c. Questions from interested parties (taken one at a time from any interested party) d. Document clarifications if needed e. Recap 4. An addendum will be issued at a later date and time and is intended to have the following information: a. Summary from the pre -proposal conference b. List of attendees from the pre -proposal conference c. Answers to any questions asked via e-mail prior to the deadline for questions previously identified d. Additional questions, clarifications or modifications to the RFP (if necessary). ':f''.PiG'tlli�': iHil::;ii.. s.. JC••,., ��':f li`2 �?c.l it?LJ ir, ,. ,�. ?': ii RFP 16-02, Addendum 2 CITY OF Date: Friday, May 6, 2016 Tayvet reille ARKANSAS To: All Prospective Vendors From: Andrea Foren Rennie, CPPD, CPPB -479.575.8289, aforen@fayetteville-ar.Rov RE: RFP 16-02, Classification, Compensation, and Benefits Study This addendum is hereby made a part of the contract documents to the same extent as through it were originally included therein. Bidders should indicate their receipt of same in the appropriate blank of the Bid Form. BIDDERS SHOULD ACKNOWLEDGE THIS ADDENDUM ON THE DESIGNATED LOG4TION ON THEPROPOSAL FORM. 1. A non -mandatory pre -proposal conference was held on Tuesday, May 03, 2016 at 9:30 AM, local time in Room 326 at City Hall, 113 W. Mountain, Fayetteville, AR 72701. Attached is a copy of the sign in sheet, including conference attendees as well as the pre -proposal conference agenda, 2. The deadline for questions is hereby extended to Monday,. May 09, 2016 at 2:00 PM, local time. All questions shall be sent via e-mail to Andrea Rennie at afore n@faye teville;ar.gov. 3. The following items were discussed during the Pre -Proposal conference: a. The City is open to modifying its existing point factor system. b. The City expects the consultant to collect new data for the study. c. The City anticipates post study support to consist of training the City HR Staff and the Job Grading Committee (approximately 15 employees), and key personnel (approximately 5 employees) on the consultant's job grading methodology and general ongoing standard support. d. The City currently updates job descriptions on an ongoing basis. i_ Jobs which have had recent turnover have been revised. ii. In 2015 approximately 53 job descriptions were updated. iii. Job description revisions are NOT included in the scope of work for this project. e. No legal firm is identified for FLSA consultation other than the selected consultant. The City typically consults with the City Attorney on items as necessary, f. Page 6 of 24 referencing "provision for other agencies" is not a requirement for this project. Proposers not in favor of extending proposal to another agency shall disclose such. Disclosure of not extending terms to another agency will not have an impact on the City's decision and is not part of the selection criteria. g. Benefits have not been evaluated in a significant amount of time as a component of a total rewards strategy. h. The City provides annual merit/step increases on the same effective date for all employees rather than anniversary dates. i, The City desires a firm which has experience in public safety. Proposers with experience should disclose such experience in their RFP response. tI� Tef„cet3rra r :k i!ion; Device for the C:eM rDD,4a r)) 2 1-13':: 1 13 Vre a: A4c.uxra J -. eP':ev,lie ,Ali 72"G' The City is currently under contract for an economic development study and has identified five cities as comparisons for benchmarking including (Ashville, NC, Boulder, CO, Chapel Hill, INC, Fort Collins, CO and Lawrence, KS). The City disclosed this information so it can be evaluated by the selected consultant for data comparison, if applicable. k. The City is not against modifying the data sources; however, deviation from the 2012 listing should come only after consideration, evaluation, and coordination with the City. I. Unions are not recognized as bargaining units; however, certain groups such as IAFF and FOP are actively engaged in the survey process. m. The evaluation of Police and Fire classification, compensation and benefits is important as there have been idiosyncrasies in past studies where compensation for these two groups were not fully understood. Since compensation for holiday pay varies in different states, an understanding of differences is essential when comparing data sources. n, The City is going through this RFP process to allow open, fair, and equitable competition to all interested parties. Proposals will be evaluated fairly in accordance with the selection criteria published in the RFP. 4, The City has received the following questions in writing pertaining to this RFP. An answer for each question has been provided. Has the City budgeted funds for this study"? If yes, please indicate the amount budgeted for this study. i. The City will not be releasing an amount for budgeted funds in this addendum due to the selection criteria being 10% of the consideration. Funds were budgeted; however, they may or may not be an accurate representation of the amount of funds necessary to complete the scope of work. While the City clearly identifies 'what' services; consulting are being requested, it is unclear 'why` the City is interested in having this Study completed. The City states it "desires to implement classification and compensation plans that are legally defensible, support objective measurement of compensable factors and maintain internal equity". This seems to suggest the current plan does not do so. Therefore, can the City provide any additional Information that informs prospective proposers on why the current plans may riot be meeting the needs of the City? i. The City of Fayetteville is going out to bid because it has been approximately 4 years since the previous study. This project is important as it will provide the City with useful information to have the resources and knowledge to better recruit, retain, and reward employees. This will better position the City to be competitive with other private and public sector employers. c. Has the City invited the Management Advisory Group to bid on this work? If no, can you explain why? i. The project was advertised state wide twice, is currently published on the City's website, and was distributed to over 1,700 subscribers on the City's Purchasing Division mailing listing. The City does not restrict any firm from submitting a proposal and invites all qualified firms to submit. ..P =e!�tc��rto?nun�Cdt;t?;i°,Dei✓i<r.inf ;he�?ea( T�)U(47:,i>1; 1116 _ l:37Vp�sEP,1?;axEaut il/c[lEviiie,AisI27??1 d, Did the City contract with Management Advisory Group in any years between 2008 through 2015 for services/products related to Classification, Compensation and/or Benefits? If yes, in what years during this period was Management Advisory Group under contract with the City? i. The City contracted with Management Advisory Group in 2012 for a salary survey. Is the City satisfied with the Management Advisory Group's point factor method of job evaluation? i. The current point factor method of job evaluation has served the City well. The City is open to new job evaluation systems which may or may not include previously contracted third parties. All proposals will be evaluated in accordance with the selection criteria listed in the RFP. With regards to the Anticipated Project Timeline outlined in your RFP (Page 22 of 24), can you provide more details for the item listed for the date —"Week of June 27" — Interviews. Will these 'interviews' use a panel of City employees beyond the HR team to interview the prospective consultant? If yes, please explain the process in greater detail. i. The Selection Committee anticipates evaluating all proposals received and reserves the right to short list (if necessary) vendors for an interview. Interviews will be conducted by the selection committee assigned to the project. The City anticipates holding interviews with the short listed consultants some time the week of Rune 27111. Section 3: Scope of Work sub item 2: page 14 of 24. Can the City provide insight on the benchmark cities' (ReferenceAppendixJ— Data Sources List) participation levels with the 2012 survey. Did most or all of the listed benchmark cities provide data for the 2012 study and is the City interested in including the five benchmark cities mentioned during the pre -proposal conference (Ashville, NC, Boulder, CO, Chapel Hill, NC, Fort Collins, CO and Lawrence, KS) in the 2016 salary and benefits study? i. The City is open to modifying the data source listing with coordination, consideration and discussion. Will the physical office location of the consulting team impact with whom the City of Fayetteville chooses to partner? i. No. The location in comparison of the consultant to Fayetteville, AR is not part of the selection criteria. i. (With respect to communications) How does the City of Fayetteville typically communicate with employees? Are there preferred (or off-limits) communication methods of which we should be aware? i. Proposers should state in their RFP response how they prefer to communicate with employees. They City is open to best practice methods and has an existing internal employee only website which could be utilized. (With respect to communications) Does the City of Fayetteville have internal communications resources with which we can partner? i. See response above in item "V. 314 .1eco:rir::.r=€cation>L?eveire!nrtiieDE,a,' iDu(,f7n's- 7-iw'fi 1;>'aVe,raNJItjWz u Fayet[ewfle,AR7 '1, k. (With respect to employee meeting support) How many locations and meetings per location are anticipated? i. Proposers shall provide this in their method of accomplishing the scope of work. The City has not required a minimum or maximum number of meetings. The City was asked various questions in regard to a proposed approach to accomplishing the scope of work. To be fair to all interested parties, the City will not disclose specific methods questioned and will not provide information pertaining to how the City prefers the scope of work be completed. Proposers should present a solution to complete the scope of work based on their experience, knowledge, and best practices known within the industry. 6. The City has received additional questions which will be responded to next week after the deadline for questions has passed. The City intends to issue an third and final addendum by Friday, May 13, 2016. �a !r]eccniE3�„�:air_stioiz��eul�isfo�-Utroe.if TL7J(47��}SFt-13iG t13'vVes9r`rlau<itai��-FapetLevslle,R�{:27IJ1 CITY OF City of Fayetteville, AR Fay 111C RFP 16-02, Classification, Compensation, & Benefits Study Tuesday, May03, 2016-9:30AM ARKANSAS 113 W. Mountain, Fayetteville, AR 72701 Pre -Proposal Conference Agenda 1. A copy of this agenda is available on the City's website at http://fayetteville-ar. ovl'bids under RFP 16-02. 2. Introductions from City Staff a. Purchasing b. Human Resources 3. Attendee identification a. Due to the conference call situation, attendees in person will first be identified following attendees, one at a time, on the conference phone. 4. Administrative summary (Purchasing) a. The City is seeking sealed proposals in response to RFP 16-02, issued on 4/15/16. b. This RFP was initiated by the desire for a new classification, compensation, and benefits study. The formal RFP process is required by City policy due the project being expected to exceed $20,000. c. Renewal Term: The City is seeking a long term partner and reserves the right to award this contract for a second classification, compensation, and benefits study within five (5) years from City Council approval date of contract, i. The City also reserves the right to contract with the awarded vendor within such five (5) year period for work related to this RFP and the City's classification, compensation, and benefits mission. d. All proposers will be evaluated in a fair and impartial manner as outlined in the "Selection Criteria" listed in the RFP. 1. 30%: Qualifications in Relation to Specific Project to be Performed 2. 20%: Experience, Competence, and Capacity for Performance 3. 25%: Proposed Method of Doing Work 4. 15%: Past Performance: If previous evaluations with the City are not available, the professional firm's past performance records with other governmental agencies, and others will be used, including quality of work, timely performance, diligence, and any other pertinent information, 5. 10%: Cost/Fees This pre -proposal conference is non -mandatory. A summary of the pre -proposal conference will be provided via addendum in addition to answers from questions as necessary. Interested parties are reminded not to contact any City employee other than Purchasing. Questions after this conference shall be addressed to Andrea Rennie, Purchasing Manager at 479-575-8289 or aforenWayetteville-ar.gov. is Ded .vli(,79; ��1 iI!1; �`� ..,e �i!i+., AR.21€ 1 13 VAY , t =. .:;3i<ii" yeite r . Deadline for questions has been established for Sunday, May 08, 2016 by midnight to aforen @fayettevi I le -a r.gov. Deadline to submit sealed proposal is Friday, May 27, 2016 before 2:00:00 PM, local time to City Hall, 113 W. Mountain, Room 306, Attn: Purchasing, Fayetteville, AR 72701. Proposals can be mailed and received or delivered in person prior to the deadline, Late responses will not be accepted. Currently two files make up the project solicitation documents: i. FILE 01: RFP 16-02, 59 pages including Appendix Ad 1. Appendix A— Organizational Chart as of 01.21.16 2, Appendix B—Job Titles and Grades 3. Appendix C-- Police Step Plan 4. Appendix D — Fire Step Plan 5. Appendix E — Merit Pay Plan 6. Appendix F — 2016 PPO 7. Appendix G — 2016 High Deductible Health Plan (HDHP) and Health Savings Account (HSA) 8. Appendix H — Retirement Plans 9. Appendix I — Paid Leave 10. Appendix J — Data Sources List ii. FILE 02: Addendum 1 was issued on Tuesday, April 26, 2016 All Proposers shall submit ten (10) sets of the proposal as well as one (1) electronic copy on a properly labeled CD or other electronic media device. The electronic copy submitted should be contained into one (1) file. The use of Adobe PDF documents is strongly recommended. Files contained on the CD or electronic media shall not be restricted against saving or printing. The electronic copy shall be identical to the original papers submitted inclusive of City forms for completion. Electronic copies shall not be submitted via e-mail to City employees by the Proposer. 5. Scope review (Human Resources) a, The City is requesting proposals for comprehensive classification, compensation and benefit reviews with recommendations for step pay plans for Police and Fire (uniformed) and merit pay plans (non - uniformed) that are internally equitable and externally competitive. b. The City desires to implement classification and compensation plans that are legally defensible, support objective measurement of compensable factors and maintain internal equity. Our compensation philosophy is designed as a strategy to support the City's commitment to recruiting, rewarding, retaining and motivating an excellent workforce. This is accomplished through competitive and equitable pay plans, practices and benefit offerings. The scope of work within the RFP requires the development of strategies, policies and practices necessary to carry out the total compensation philosophy, 6. Questions from attendees (taken one at a time from any interested party). 7. An addendum will be issued at a later date and time and is intended to have the following information at minimum: a. Copy of this conference pre -proposal agenda b. List of attendees from the pre -proposal conference c. Answers to any questions asked via e-mail prior to tl e deadline for questions previously identified d. Additional questions, clarifications or modifications to the RFP (if necessary). a ecamrx;, .._:_3€h:rss Dev co fol- div Dow' Tr ?f_7 07 ,l 521 = 316 6 3!?4:;, ;tau ;ai:, .Fay. ;€e cilli: ff '2701 LO M s✓ L a L _ V1 u U a� 4 a� �- v ra+-� LT R 4- 0 V a a a LL - cc 0 .mf v E z .-+ c"i m v do ID o dry m d' Ul kc) r— CIO (j) o h W Ol c -I c -i cti N 1-1 I -f N rl ri rl N L t� I'n .jir') CVa )� � cy z \I tfa Iz J •�j t in ' a OL E '� 3 L f - o U r F 1 v E z .-+ c"i m v do ID o dry m d' Ul kc) r— CIO (j) o h W Ol c -I c -i cti N 1-1 I -f N rl ri rl N RFP 16-02, Addendum 3 Date: Friday, May 13, 2016 To: All Prospective Vendors CITY OF 'Fay . reille ARKANSAS From: Andrea Foren Rennie, CPPD, CPPB — 479.575,8289, aforen2fayetteville-ar.g RE: RFP 16-02, Classification, Compensation, and Benefits Study This addendum is hereby made a part of the contract documents to the same extent as though it were originally included therein. Bidders should indicate their receipt of same in the appropriate blank of the Bid Form. BIDDERS SHOULD ACKNOWLEDGE THISADDENDUM ON THE DESIGNATED LOCATION ON THE PROPOSAL FORM. The City received the following questions in writing pertaining to this RFP. An answer for each question has been provided below. 1. Section 3: Scope of Work sub item 3: page 15 of 24. It would be helpful to know how many benchmark positions were utilized in the 2012 survey and if the City is expecting to increase or decrease this number of benchmark positions for the 2016 salary survey. a. There were 52 non -uniformed and 9 uniformed benchmark positions included in the 2012 survey, for a total of 61 benchmark positions. b. The City anticipates this number to be slightly higher, due to the need to thoroughly evaluate the market for certain positions the City has had a difficult time sourcing. 2. Section 3: Scope of Work sub item 11: page 22 of 24. Would the City be willing revise the projected timeline so the Classification, Compensation and Benefits Study will have a project start date in early September instead of September 191h? This would allow for more time to complete the scope of work deliverables and present a draft salary and benefits study report by the November 18, 2016 stated date. a. See attached revised timeline beginning on page 4 of this addendum. 3. (With respect to communications) Will we be creating and producing all of the materials for the meeting, as well as facilitating all of the sessions? a. Yes, as needed. 4. (With respect to communications) Is an analysis of total remuneration within the scope of this engagement? a. The City does not need a total compensation statement for each employee. The City does expect a communication strategy for the total compensation (rewards) package offered by the City. 5, During the pre-bid conference, it was asked if the City wished to keep the current point factor job evaluation or replace it. Either option was acceptable. Is it permissible, therefore, for prospective vendors to submit different work plans and pricing options (one that would use the currentjob evaluation system and one replacing the job evaluation)? a. Yes 6. The point -factor evaluation has been in place since 2007. On page 14, it says that the last salary survey was conducted in 2012 and implemented in March 2013. Does this suggest that Management Advisory Group completed thestudy both in 2007 and 2012, or was a different consultant used in 2012 and they simply maintained the existing point factor evaluation? a. MAG has served as the compensation consultant since 2006. 7. Scope of Work, Item 2: Has the City been successful obtaining compensation information from local private sector employers or were published sources of private sector information used in lieu of a custom survey? a. The City obtains regional survey data from NOARK, (the local SHRM affiliate chapter) who conducts a survey of both private and public organizations. The City does not provide a custom, private survey and expects a custom, public survey using the final list of data sources. 8. Scope of Work, Item 3: Approximately how many benchmark positions were used in 2007 and 2012 and, of this list, how many of those benchmarks received a minimum of five matches? a. See response to question #1. I Receiving five matches has not been a significant issue in past salary surveys. 9, Scope of Work, Item 4: It appears that the City wants associated cost for benefits implementation recommendations. Some of these would be difficult for the consultant to quantify. For example, if a survey of benchmark organization health plans showed that Fayetteville wasn't competitive, the consultant would be unable to price changes such as different deductibles on health insurance. Can you elaborate on what specific costs the City is looking for (excluding, of course, the cost to implement classification and compensation study recommendations)? a. The City is not seeking specific costs of implementation outside the study's recommendations for the salary survey. The City is seeking benefit comparisons, but not the cost to implement benefit changes. 10. Scope of Work, Item 6: During the pre-bid conference, it was emphasized that the City is looking for true partner as a result of this procurement, and that the City may award multiple projects and use the consultant on an ad-hoc basis throughout the term of that partnership (5 years). In item 6, it says that the consultant will conducting the appeals process for the City. How would the City like this element to be priced since it's impossible to determine how many appeals might be requested throughout a S -year term? a. The consultant would be expected to conduct a one-time appeals process to resolve employee challenges, regarding the classification of their assigned position during the implementation phase. 11. Scope of Work, Item 10: This item is not listed anywhere under the Summary of Required Significant Deliverables. How does the City anticipate that this would be prepared/presented? 2.16 ......:. itit'Jj if-ICt1`lE�: t^;4-_ii(e r'i`...e D u,' `: �i�;�,,;1; _��•.� (: - :i V;e. .mof:t :in a. The City may not have revisions; and, is only asking to recommend revisions as appropriate. 12. Scope of Work, Item 13: Based on the Anticipated Project Timeline, it appears the successful consultant will have a maximum of 3 months to complete this project. Our experience has shown that a custom study of this nature requires more than 3 months, especially if questionnaires are to be completed by employees and benchmarks are being asked to provide quantitative data on the cost of benefits. Is there flexibility in the completion date? a. The City is not asking for questionnaires to be completed by employees and has updated job descriptions. b. The quantitative benefits data questions are simple — What benefits do you offer and how much are they? 13. Does the City have an approved budget for this project and, if so, can you share that with prospective vendors? If not, can you share what you spent on the 2007 and 2012 studies? a. Refer to Addendum 2, Item 4 regarding budget. b. Work completed since 2006 with its respective price is listed below: Date Description Amount 2006 2006 Compensation, Classification Plan Survey and $38,608 Implementation Annual Market Update - General Merit Employees and 2008 uniformed pay plan maintenance (Transition from $7,750 progression pay plan to step rate pay plan) $20,000 2012 2012 Salary Survey 3)A Twit; -t ;p a=r cstic r l 0c:victr 6or the f.;eaf IDD 0791 :;27 -1.31: , rst Pvtecrrttair: - F ;yetlev lfe, ,n 72:r l 14. The City has revised the tentative project timeline as stated below. Date Time Description Friday, April 15, 2016 N/A Date RFP available and date of first advertisement Friday, April 29, 2016 N/A Date of second advertisement Tuesday, May 03, 2016 9:30 AM Non -Mandatory Pre -Proposal Conference Sunday May 08, 2016 Midnight Deadline for questions from vendors City intends to issue Final Addendum Friday, May 13, 2016 End of Day (Addendum 3) 2`00 PM, local time to Deadline to submit a sealed response to the City Friday, May 27, 2016 Fayetteville, of Fayetteville. Proposals shall be received prior AR to the deadline, no exceptions. Friday, June 17, 2016 N/A City intends to short list vendors no later than this date Week of June 27, 2016 TBD Interviews, if applicable Friday, August 19, 2016 N/A City Council Request Deadline for September 6, 2016 City Council Meeting Tuesday, August 30, 2016 5:30 PM Agenda Session for September 6, 2016 City Council Meeting Tuesday, September 06, 2016 6:00 PM Council Meeting to consider contract award Monday, September 19, 2016 N/A City authorizes work to begin (no later than this date) Deadline to submit the draft salary and benefit Monday, December 12, 2016 5:00pm survey report with recommendations and implementation proposals to the City. Deadline to submit final salary and benefit survey Friday, January 06, 2017 5:00pm analysis report with recommendations and proposals to the City. _implementation Selected consultant will present the final report, Tuesday, February 14, 2017 4:30pm recommendations, implementation options and cost estimates on site at the Council Agenda Session in Fayetteville, AR Selected consultant will attend and/or present at Tuesday, February 21, 2017 5:30pm the City Council meeting in Fayetteville, AR to provide information and answer questions, n i i:`"rnjiii...[iJriI De-vECf::, fu. -"5 `.i£'i.. yS`:"�i•31'�lil i.if::°,:i!:.-��i�i:1 �CVli�l'. �.�..r3 i. F J7 Fay'fttevill�eR X A N S A S CLASSIFICA'T'ION, COMPENSATION, & BENEFITS STUDY TO: City of Fayetteville Selection Committee Classification, Compensation & Benefits Study Request for Proposal: RFP 16-02 C/o Andrea Rennie, CPPD, CPPB Purchasing Division - Room 306 113 W. Mountain Fayetteville, AR 72701 BY Blair Johanson and Bruce Johanson President and Vice President Johanson Consulting Inc. d.b.a. Johanson I Group Johanson I Group 2928 N. McKee Circle, Suite 123 Fayetteville, AR 72703 1'1A -A' j0ha11S0u9 �oup.net PROFESSIONAL CONSULTING SERVICES PROPOSAL for CLASSIFICATION, COMPENSATION & BENEFITS STUDY TABLE OF CONTENTS Page I. Cover Letter, Introduction and Executive Summary 3 II. Scope of Work Objectives - Classification 6 111. Scope of Work Objectives — Compensation & Benefits 9 IV. Scope of Work Objectives — Compensation and Classification Management 1 1 V. Summary of Required Significant Deliverables 14 VI. Project Timeline Schedule 15 VII. Project Fees — Cost Sheet Summary 16 VIII. Classification and Compensation Projects Experience 17 IX. Project Team and Personnel Qualifications 19 X. Sample DBCompensation System Classification Description 22 /Appendix: City of Fayetteville RFP — 16-02 Classification, Compensation, and Benefits Study Section E: Completed Signature Submittal Form as required with all RFP responses. 2 I. COVER LETTER, INTRODUCTION & EXECUTIVE SUMMARY Johanson group 2928 N. McKee Circle, Suite 123 Fayetteville, Arkansas 72703 479.521.2697 [telephone] www.wobansongroup.net May 25, 2016 Dear Selection Committee Members: Johanson Group is pleased to submit the enclosed proposal to provide professional consulting services for a comprehensive review of the City's classifications, compensation plans and benefits with recommendations for step -pay plans for Police and Fire (uniformed) and merit pay plans (non - uniformed) that are internally equitable and externally competitive. Based on the City's Request for Proposal, we understand that the City's current positions include 298 active job descriptions that are filled with approximately 525 non -uniformed employees, 125 uniformed Police personnel and 1 19 uniformed Fire personnel. We understand that the City wants to implement classification and compensation plans that are legally defensible, support objective measurement of compensable factors and maintain internal equity. The City's compensation philosophy is designed as a strategy to support its commitment to recruiting, rewarding, retaining and motivating an excellent workforce. The Johanson Group professional consulting team is in affirmation with the City's compensation philosophy and its desire to offer competitive and equitable pay plans, compensation practices and benefit offerings. Johanson Group will assist the City with development of strategies, policies and practices necessary to carry out its total compensation philosophy. (Jur compensation consulting principals have over 50 years of combined experience, and we will draw from this knowledge along with over 30 years of compensation management with public municipalities to assist the City with identified Compensation, Classification and Benefits Scope of Work Services and Project Deliverables as outlined in the City's RFP 16-02 Section B. EXECUTIVE SUMMARY Johanson Consulting, hic, d.b.a. Johanson Group and DB Squared, LLC will join together to provide professional compensation and classification services and software to meet the scope of work objectives and deliverables as outlined in Section B: Scope of Services and Project Deliverables. Johanson Group has offered compensation consulting for 30 years and the principal consultants have worked with numerous public and private organizations inclusive of 30+ cities during the past five years. The company developed the JESAP System, a point -factor job evaluation methodology in 1985 and computerized it in 2001. After several years of internal use, Johanson Group further developed the software through DBSquared, LLC and began licensing and distributing the DBCompensation Software in 2005. DBSquared has over 75 DBCompensation software clients of which 30 provide public services including cities, counties or public utility organizations. Primary Contractor: Johanson Consulting, Inc. d.b.a. Johanson Group, 2928 N. McKee Circle, Suite 123, Fayetteville, AR 72703; Authorized Party and RFP Response Contact: Blair Johanson, President, Phone: 479-521-2697, Fax: 479-521-5453, 2928 N. McKee Circle, Suite 123, Fayetteville, AR 72703. Subcontractor: DBSquared, Blair Johanson, Principal, 2928 McKee, Suite 119, Fayetteville, AR. Email: blah johansontiohansaitgroup.iaet. Johanson Consulting, Inc. has been in business for 43 years. Our primary focus is employee classification and compensation plans and market pay and benefits studies. Our secondary focus is human resources and planning. We have six employees associated with Johanson Group and DBSquared, N.C. Some of our current client references are noted below. Government References: City of Rogers — Greg Hines, City Mayor, (479) 621-1 1 17 and Thomas Dunlap, Director of Human Resources and Development, (479) 621-1117. Job Classification and Compensation Study, May to August, 2015 and a DBCompensation software client. City of Moore, OK — Stephen Eddy, City Manager, (405) 793-5200 and Gary Benefield, Director of Human Resources and Risk Management, Job Classification, (405) 794-5579. Compensation and Benefits Study, January to April, 2016 and a DBCompensation software client. City of Jonesboro - Harold Perrin, City Mayor, (870) 932-1052. Suzanne Allen, Chief Financial Officer, (870) 932-0820. Job Classification/Compensation Study 2016 and DBCompensation. City of Shreveport, LA — Angelita Jackson, Director of' Human Resources (318) 673-5153. Compensation study for 200 positions titles — October/Novembcr, 2015. Owensboro Municipal Utility, Owensboro, KY --Dana Wilson, Human Resource .Manager, (270) 691-4116 and Michael Moore, Director of Customer Service & Shared Services, (270) 926-3200. Job Classification, Compensation and Benefits Study 2014 and a DBCompensation client. City of Springdale — Doug Sprouse, City Mayor and Wyman Morgan, Director of Finance and Administration, (479) 750-8114. Classification and Compensation Study in 2006 with an update in 2012. City of Springdale is a DBCompensation soflwarc client. City of Fort Smith — Richard Jones MA, SHRM-SCP, SPHR, previous Director of Human Reources and presently Director 1 ]uman Resources, City of Rowlett, TX, (972) 463-3969. Job Classification and Compensation Project in 1999 and semi-annual updates from 2001 to 2015. Midwest City, OK — J. Guy Henson, City Manager, (405) 739-1204 and Catherine Wilson, Human Resources Director, (405)739-1235, 100 N. Midwest Blvd., Midwest City, OK Project: Job Classification and Compensation Study for 186 job classifications with a Winter 2011 to Spring 2012 project period and job reviews 2013 to 2016 and a DBCompensation software client. City of Edmond, OK — Lamy Stevens, City Manager, (405) 359-4500, Lisa Goodpasture Human Resources Director, (405) 359-4685, 100 E. First Street, Edmond, OK 73034 Project: Job Classification and Compensation Study for 191 job classifications with a Spring 2008 to early Summer 2008 project period and a 2014 update and a DBCompensation software client. City of Benton, AR, Mayor David Mattingly and Kathy Kirk, Human Resources Director, (501) 776- 5900 Ext. 106, Benton, AR 72018, Job Classification and Compensation Study in with a 2007/08 project period, updates in 2012, 2014 and 2016 and a DBCompensation software client. Washington County. Job Evaluation and Salary Administration Program and Compensation Consultant Services, 1985 to Present. Lindsi Huffaker, Human Resources Director, 479-444-1728. Proiect Leader Blair .lohanson, Principal Partner and President, Johanson Group, Fayetteville, AR — Areas of Expertise — Job Evaluation and Salary Administration Programs (JESAP) ©1985- 2016. Blair has worked with over 25 municipality, county and utility clients during the past 5 years. Blair has an MBA and a BSBA in Human Resources from the University of Arkansas Business School. Proiect Leader Rack -Up and Data Analyzer Bruce Johanson, Principal Partner, Johanson Group, Fayetteville, AR— Areas of Expertise — Job Evaluation and Salary Administration Programs (JESAP) ©1985-2015. Bruce has completed job evaluation and compensation program projects for several hundred public and private clients during the past 27 years. Bruce has a Master's of Business Administration and a BSBA in Personnel Management from the University of Arkansas Sam M. Walton School of Business. Project Administrative Support Denise Wagner, Project Support Specialist, Johanson Group, Fayetteville, AR — Areas of Expertise Job Description Development and Salary Administration Processes and Programs. Denise has been a team member with Johanson Group since 2007. Detailed methods and approach to complete the City's Classification, Compensation and Benefits Study Scope of Work, Deliverables, Timeline and Project Fees are provided in the following sections of this proposal. We will he able to present the draft salary and benefits survey report to the City no later than December 12, 2016 and present the final report, recommendations, implementation options and assoicated cost estimates on site at the February 14, 2017 Council Agenda session in Fayetteville, AR based on a project start date in early September, 2016. We have a 100% completion rate with our classification/compensation projects during the last 30 years. Johanson Group is not in favor of extending this proposal to another agency—Reference RFP 16-02 Addendum 2 — ]tem f. As a principal of Johanson Consulting, d.b.a., Johanson Group, I am authorized to commit our firm to all the terns and conditions contained in this proposal. We look forward to working with the City on this project. Sincerely, �._te..-. �''a—.—mo-.-.•_-- II. Scope of Work Objectives CLASSIFICATION 1. Johanson Group support staff will transfer current City's classification descriptions into the DBCompensation 10,0 hosted compensation management software database. General heading information, purpose statements and duties/responsibilities will be transferred into the DBCompensation 10.0 Position Analysis Questionnaire format for each of the 298 job title classification descriptions. This will allow for management of an active database with the 298 job title classification descriptions where the software offers an efficient editing function, collaboration email feature and the ability to view and save classification in various file formats inclusive of Microsoft Word. Each classification description will be produced in an electronic file format that is comprehensive, consistent and compliant with employment laws. The process of transferring the current classifications from the City's documents into the DBCompensation software will be completed by Denise Wagner and this function will take her 15 minutes per classification. With the 298 job title classifications, the total hours for this effort will be 75. Once classifications have been transferred into the DBCompensation license software database, the Johanson Group consultants will complete this process by selecting the appropriate degrees for the fifteen factors, the remaining computer skills, and physical demands and working conditions drop down selections that mirror the current Cityjob descriptions by job title. This effort will take one of the Johanson Group consultants (Blair Johanson) 15 minutes per classification or 75 hours based on 298 individual classification descriptions. 2. Recommend an automated classification descriptions process that provides for input by employees, supervisors, and managers as to the job content and knowledge, skills and abilities required for effective performance, reporting relationships, and other related matters. The collaborative classification descriptions are viewable and editable by employees, supervisors and managers as requested by Department Directors and managed by the Hurnan Resources staff. Each classification description will have the following content headings: Classification Title, Department, Supervisor's Title, Location, Exempt/Non Exempt Status,_ Purpose Statement, Duties and Responsibilities; Required General Experience, Required Management Experience, Education, Initiative/Ingenuity, Mental Demand, Problem -Solving, Responsibilities for Supervision, Funds, Budgets, and Equipment, Accuracy, Accountabilities, Internal and External Communication, Software Skills Inventory, Machine and Computers, Physical Demands, Working Conditions and Additional Information. The Johanson Group's recommended classification description format and job rating process has been functional since 1985. Hundreds of municipal classifications/jobs have been developed by this internal classification description and job rating system which has experienced a few modifications during the past 31 years. After the City's classification descriptions have been transferred into the DBCompensation 10.0 software database, the descriptions will be saved in Microsoft Word and PDF file formats and made available to the City's Human Resources Department. 3. Using the DBCompensation job valuing system, the Johanson Group project lead consultant and the City's existing Job Grading Committee will assign a job evaluation value to each job description provided by the City during the Study's job classification process. The Job Grading Committee will have access to the DBCompensation job valuing system and the Johanson Group project lead consultant will demonstrate the use ofthis system which supports the classification and compensation system. The Johanson Group lead consultant will present and explain the resulting job classification structure to the City's senior management team members. Johanson Group consultants will recommend that the City adopt the Job Evaluation and Salary Administration Program description assessment methodology imbedded in the DBCompensation software. The Job Evaluation and Salary Administration Program was developed in 1985 and thousands of municipal, government and utility and private sector classifications have been reviewed and rated with this point -factor description assessment methodology. The process was automated between 2001 and 2005 by the Johanson Group Principals and Dale Oliver, CTO and Principal Partner with DBSquared. Several municipalities, county governments, utilities in Arkansas, Missouri, Oklahoma, Kentucky, and Utah have purchased the DBCompensation software since 2006 when the software was licensed and made available to public and private sector clients. Since 1985, the Job Evaluation and Salary Administration Program classification description assessment methodology has stood the examination of outside regulatory review agencies, union representatives and a labor arbitrator. Complete classification descriptions are aligned with the DBCompensation job rating process which encourages objective classification descriptions and minimizes legal risk considerations when completed for the classification requirements and not for the employee in the classification. Each individual classification description will be rated with the following fifteen (15) tactors: Skill Requirements I . General Experience 2. Management Experience 3. Initiative and Ingenuity 4. Education 5. Mental Demand 6. Analytical Ability/Problem Solving Responsibilities 7. Responsibility for Work of Others (Supervision) 8. Responsibility for Funds, Equipment and Property 9. Responsibility for Accuracy 10. Accountabilities (End Results) Contacts/Human Relations/Efforts 11. Contacts with Public 12. Contacts with Employees 13. Machine Operations 14. Working Conditions 15. Physical Demands All classification descriptions will receive a total point job rating value based on factor and degree levels required for each classification description. A classification exhibit is developed in the DBCompensation software that lists the classification title, the factors and degrees and total points for each classification description. This exhibit will sort all of the City's 298 separate classifications in a descending order and this exhibit allows for review, fine-tuning, recalculation and resorting functionality to make this process efficient and comprehensive. Tables are exportable to Excel so individual department heads may participate in the review process with or without seeing the job ratings for other departments. This process is called sore -thumbing and the Johanson Group principal consultants will manage and facilitate this effort with the City's Job Grading Committee. Johanson Group consultant, Blair Johanson will train the City's existing Job Grading Committee consisting of approximately fifteen (15) City employees, to classify positions utilizing the DBCompensation job evaluation system, The .final classification ratings will be retained in the DBCompensation software and utilized in the development of the City's internal pay designators and/or job classes for the classification and compensation study employees. The classification descriptions rating process final review will take three days by one of the Johanson Group principal consultants (off-site) and the on-site sore -thumbing session with the City's Job Grading Committee will take two days to complete. The sore -thumbing session will be lead and facilitated by the Johanson Group lead principal consultant. Johanson Group principal consultants will seek input from the City's leadership team how to handle the sore -thumbing session with the City's Job Grading Committee and the level of review by the department heads. 'l. Recommend appropriate pay designators and/or job classes/grades, as needed. Meet with Department Directors and/or other appropriate supervisory personnel to resolve conflicts relating to the classification of individual jobs. Recommend and conduct a process for employee appeals regarding the classification of the assigned position and respond in writing to any appeals. The Johanson Group consultants will assist in the development of job classes/grades for non -sworn employees as needed depending on a comparison analysis of the City's current job classes/grades' structure and the new or recommended job classes/grades based on the DBCompensation classification description methodology and Final job ratings. The DBCompensation program has a feature to automate this process and make adjustments until the final job classes' structure is approved by the City's leadership team. From our experience with other municipalities, this is the process where we find positions that have been overstated or understated or placed in a grade with several other positions and the internal pay line structure has lost its pay equity and linear pay average structure. The Johanson Group principal consultants will complete a comparative analysis and evaluate the City's current and proposed job classes' structure for compensation and classification study merit pay plan employees and reference notable differences and recommendations. This process will take one day to complete by one of the Johanson Group principal consultants. In addition, the Johanson Group consultants will meet with Department Directors and/or other appropriate personnel to resolve conflicts relating to the classification of individual job and recommend and conduct a process for employee appeals regarding the classification of the assigned position and respond in writing to any appeals. The one-time appeals process will take one day to complete by one of the Johanson Group principal consultants. 5. The Johanson Group consultants will provide the City with a method for maintaining and updating the City's classification and compensation plan. The Job Evaluation and Salary Administration Program, now called DBCompensation classification description and job rating methodologies will be taught to the City's Human Resources staff. Methodologies are proven and validated by the hundreds of classifications developed, reviewed and approved by numerous municipal and commission authorities. Johanson Group principal consultants strongly recommend that designated staff be trained to properly maintain classification description processes which are automated in the DBCompensation software database system and perform market pay surveys on a periodic basis. A detailed discussion of how the software automates the market pay survey process will be addressed in the following Compensation Scope of Work section. Training on the recommended classification description and job rating methodology process with the City's Job Grading Committee and Human Resources staff will take one day by one of the Johanson Group principal consultants. 6. Johanson Group will audit the City's 298 exempt/non-exempt classifications designations for classification specifications to comply with current Fair Labor Standards Act (FLSA) regulations and audit all classifications for appropriate Equal Employment Opportunity (EEO -4) job categories. These audits will take one day and they will be performed by one of the Johanson Group principal consultants. III. Scope of Work Objectives COMPENSATION & BENEFITS 1. The Johanson Group project leader consultant will facilitate the development of an updated competitive compensation philosophy. The Johanson Group consultants (Blair and Bruce) will meet with the City's Chief of Staff, Director of Human Resources and Assistant Director of Human Resources to discuss the facilitation and development of an updated competitive compensation philosophy. This process may include additional City leaders as recommend by the City's Chief of Staff and the Director of Human Resources. It is anticipated that the facilitation and development of the updated competitive compensation philosophy will take four hours of the consultants' time and another four hours of the lead project consultant's time to prepare a draft competitive compensation philosophy for review and approval of the City's leadership team. 2. The Johanson Group project leader consultant will review existing compensation policies and practices and work with the Chief of Staff, Director of Human Resources, and Assistant Human Resources Director for input and insight on revisions to existing compensation policies and practices. It is anticipated that the review of the existing competitive compensation policies and practices and discussion with the Chief of Staff and HR leaders will take four hours of the lead project consultant's time and another four hours of the lead project consultant's time to prepare revised compensation policies and practices which are aligned with the City's updated competitive compensation philosophy. 3. The Johanson Group consultants have received the list of benchmark cities as data sources to be used to conduct a salary survey as referenced in the City's RFP, Appendix J — Data Sources List. The Johanson Group lead consultants recognize that the City competes for new employee talent in different labor markets for different types of positions and that the City has identified three labor markets — national, regional and local. The Johanson Group lead project consultant will coordinate with the City to arrive at a final Data Sources List and Johanson Group agrees with the City's preference to keep the data source list close to the same listing from 2006 data source list with a few additions that will be discussed with the City as part ofthe coordination to prepare a final Data Sources List. The final Data Sources List shall be approved by the City prior to survey position benchmarking taking place. The coordination and preparation of a final Data Sources List will take the Johanson Group lead project consultant eight hours to complete. 4. The Johanson Group consultants recognize that the City will consider additional survey tools for professional positions where salaries have not been competitive in the market, including but not limited to IT, Engineering, Utility Management, Executive positions, and under market single incumbent positions. The Johanson Group consultants have access to national survey data sources that have the ability to index aggregated pay data to the Northwest Arkansas market. We have found these sources to be beneficial when included with municipality data from targeted cities. In addition, we would like to recommend use of the Department of Labor Bureau of Labor Statistics salary survey data as another source for public and private entities in the Northwest Arkansas Standard Metropolitan Statistical Area (SMSA). 5. As part of the City's Classification, Compensation and Benefits Study, the Johanson Group consultants will provide assistance to the City with evaluating the lowest level positions in the City, specifically positions less than $13.00 per hour ($27,400) annually. The consultants will provide information on what other employers are doing to be paying a livable wage to these positions. 6. The Johanson Group lead project consultant will create and recommend a survey model template(s) that will enable the City to make compensation comparisons with the cities listed on the final Data Sources List. The Johanson Group will gain approval from the designated City representative(s) for the salary survey form and the designated benchmark positions (60 to 70 positions) prior to its distribution. Typically, the survey model template(s) will have benchmarked classification titles, brief purpose/focus statements, minimum education and experience requirements and a salary study worksheet with degree of job match for each benchmark job, average actual salary, and salary range minimums, midpoints and maximums. In addition, the salary survey will include supplemental pay types such as longevity pay, on-call pay, certificate pay, special team pay, top -out bonus, shift differential, other supplemental pays and the participant's reported date of the last revision to their current salary schedule. The Johanson Group consultants have experience working with total compensation for public safety positions associated with cities and with the annual Arkansas Municipal I,eague Salary and Benefits Study. We understand the importance of apples to apples comparison of supplemental pay types for public safety positions. The Johanson Group consultants are in agreement with the City's understanding for a minimum of five (5) salary survey responses for each merit position to be considered as sufficient comparative data and that all survey responses will be reported and summarized for each benchmark position. Normally, the time period for a thorough compensation and benefits study is about 30 to 45 calendar days depending on the depth and breadth of`the total compensation and benefits study. The Johanson Group consultants will geographically 10 modify the survey data using the most current and reliable cost of labor index for the City of Fayetteville compared to responding survey cities. Adjusted data shall be aged to the implementation date of March 1, 2017 if it was collected more than 90 days prior to this date. The report shall include an explanation of the survey methodology, the requested geographic adjustment process and any aging process applied to the survey data. The preparation of salary survey form with approved benchmark positions, distribution of the survey, appropriate follow-up to encourage participation in the survey and the salary survey analysis will be performed by Denise Wagner and one of the Johanson Group principal consultants and it will take five days to complete. 7. The Johanson Group consultants will work with the City to develop a benefits survey form of employee benefits (medical, dental, vision, retirement, employee leaves, FSA, HSA, life insurance, car allowances, flexible work schedules, wellness programs, etc.) and premium cost sharing /IISA contributions and other offered employee benefits with comparable cities as listed on the final Data Sources List. The Johanson Group consultants and the firm's staff have developed, distributed, compiled and reported the annual salary and benefits surveys for the Arkansas Compensation Association, the Northwest Arkansas SHRM Chapter (NOARK) and the Arkansas Municipal League. We have a significant amount of experience working with salary and benefits surveys for these organizations and with other Arkansas cities. We believe that this experience will be beneficial to helping the City achieve success with its salary and benefits surveys. The preparation of benefits survey form, distribution of the survey, appropriate follow-up to encourage participation in the survey and the benefits survey analysis will be performed by Denise Wagner and one of the Johanson Group principal consultants and it will take two days to complete. 8. The Johanson Group consultants will review City ordinances that set pay for elected officials, initiate discussions with designated City staff for clarification and understanding of these ordinances and recommend revisions as appropriate. 9. The Johanson Group consultants will recommend mechanisms to maintain both internal and external pay equity for the City's employees in the following section on classification and compensation management. In addition, -as part of the final study report, the Johanson Group consultants will recommend the frequency of market surveys to assess the City's competitive position relative to the City's adopted total compensation philosophy. IV. Scope of Work Objectives CLASSIFICATION AND COMPENSATION MANAGEMENT 1. The Johanson Group consultants will assist the City with developing externally competitive and internally equitable salary recommendations for the classification, compensation and benefits study positions. The use of market pay data, internal classification ratings to create competitive pay grades and ranges and uploaded actual employee pay and related information will provide the recommend mechanisms to maintain an external and internal pay equity analysis for the classification, compensation and benefits study. Competitive and equitable salary schedules will be recommended that support the City's Police and Fire positions step pay plans and the non -uniformed positions merit pay plan. The DBCompensation classification rating system with 15 differentiating factors and numerous degree levels as a common denominator classification evaluation process is both a comprehensive and objective program to create an internal point -valued structure that supports differential pay practices based on both pay for performance methodologies and critical performers/key positions. When market pay survey data is included in this classification and compensation study process, the internal structure by classification and job grade series is validated and aligned for external market influencers that include difficult to recruit and retain professional positions with certain skills sets and abilities. This analysis with externally competitive and internally equitable salary study recommendations will take two days of professional consulting time for the proposed salary schedule(s). Preliminary draft reports, a proposed merit pay plan schedule and proposed separate step chart pay plans for the Police and Fire uniformed positions will be prepared and presented by the Johanson Group principal consultants to the City's leadership team for review and to address questions that arise from these reports that display current salaries by employee within recommended job grade and range series for compensation and classification study merit pay plan employees, 2. The Johanson Group principal consultants will identify inconsistencies and deficiencies with the City's current compensation and classification system as compared to the study results and proposed compensation and classification structure and ranges. Various tables, graphs and worksheets will be utilized in this analysis along with written recommendations for adoption of the proposed compensation and classification study system. The consultants will develop and present a plan for implementation of the recommendations to include cost of implementation, timing, and the effect on employees' pay based on a minimum of two requested implementation strategies (frill implementation and implementation within budget constraints). All cost estimates will be broken out by funding sources which will be provided by the City to the consultants and the implementation plan for new pay plans will take in consideration the new FLSA overtime exemptions regulations. The lead project consultant will allocate one day of professional services to review and discuss compliance with the new FLSA exempt regulations with a December 1, 2016 compliance date. The lead project consultant will work with the City on re -classifications, wage adjustments to meet or exceed the new salary threshold, cutting overtime hours or some combination of'approaches. The DI3Compensation .Exhibit 6G spreadsheet with a proposed grade and steps table for the merit pay plan employees will be used to determine recommended employee pay placement on the new pay table and to determine future pay increases based upon the determined market values for job categories for the fiscal 2017 budget or additional fiscal year budgets depending on budget constraints. The identification of deficiencies within the current compensation and classification system will take one day of consulting time by one of the Johanson Group principal consultants and another one day period for review with designated City leaders for additional insight and revisions if necessary. The Johanson Group lead project consultant will present the draft salary and benefits survey report by December 12, 2016 and a final salary and benefits survey analysis with recommendations and implementation proposals no later than January 6, 2017. This report will include a description of the classification, compensation and 12 benefits plan and recommended policies and practices for maintenance and administration of the program. The consultants will communicate initial survey results to employees and review the proposed implementation process. All reports will be available to the City in an electronic format and the consultants will provide the reports in a searchable PDF document. 3. A formal presentation will be made to the City Council at the completion of the study. The lead project consultant will present the final report, recommendations, implementation options and associated cost estimates on-site at the February 14, 2017 Council Agenda Session in Fayetteville, AR. The consultant shall attend and/or present at the February 21, 2017 Council Meeting to provide information and answer questions. Development of final reports and presentations will take one day of principal consultant's time.. 4. The Johanson Group consultants will provide project status updates as requested by the City. The report will include accomplishments during the reporting period and any foreseeable issues which may affect the timely completion of the project. The lead project consultant will provide the status updates. It will take one day of the lead project consultant's time for these updates. 5. The Johanson Group consultants will create final communication materials and conduct employee educational meetings to explain the job evaluation system, survey results and implementation plan. It will take the lead project consultant two days to complete the communication materials and conduct the large group employee educational meetings. 6. The Johanson Group consultants will provide ongoing consultation and support for the maintenance of classification specifications and pay plans for a five (5) year term from date of award at no additional fee to the City of Fayetteville. Ongoing consultation and support shall be for typical standard support as it relates to the City understanding the consultant's software to its fullest capacity. The Johanson Group consultants and the City agree that out of scope work shall be priced separately, post contract, as needed for unforeseen circumstances such as reorganizations, organizational chart restructuring, adding departments or divisions, etc. 7. The Johanson Group consultants understand that the City may or may not decide to procure annual updates (to evaluate industry Fluctuations) depending upon the resulting compensation philosophy recommended by the Johanson Group consultants as well as other factors. Johanson Group consultants strongly encourage its municipal classification and compensation study clients to complete periodic market pay studies to stay competitive with local and market cities. The Johanson Group principal consultants will train the City's Human Resources staff on market compensation and benefits survey methodologies, analysis and data utilization techniques recommended. City Human Resources staff will be equipped to conduct on-going and future compensation system maintenance efforts with the D13Compensation software which utilizes the Johanson Group classification and compensation processes and techniques for the completion of the proposed Compensation and Classification Study for the City by the Johanson Group Team. Training for the market surveying process will take one day for one of the Johanson Group principal consultants. V. Summary of Required Significant Deliverables 13 The Johanson Group consultants will complete at a minimum the following required significant Classification, Compensation and Benefits Study deliverables as noted in the City of Fayetteville RFP -16-02 Scope of Work Section 3 Item 4. a. Align compensation philosophy to ensure competitive positioning in the market b. Salary survey and benefit analysis reports C. Evaluation of each job description d. FLSA and EE0-4 review e. Police step pay plan f. Fire step pay plan g. Merit pay plan h. Implementation plan outlining at least two options with the associated cost estimates i. Policies, practices and processes to administer and maintain the system, including recommended frequency of salary surveys and market reviews j. Communication materials and employee educational meetings k. HR staff and Job Grading Committee training for job evaluation 1. Procedure to review and resolve employee objections of job evaluation results V. PROJECT TIME SCHEDULE FOR THE CLASSIFICATION, COMPENSATION AND BENEFITS STUDY/PLAN SCOPE OF WORK AND DELIVERABLES 14 MONTHS 2016/2017 Start Completion Sept. Oct. Nov. Dec. Jan. Feb. PROGRAM Review of Present Comp. Program Current Classifications, Comp. Philosophy, Policies and Practices Meetings with Chief of Staff, HR Leaders & Department Managers Project Timeline and Expectations Completion of Salary and Benefits Study Forms, Job Benchmarks and Final Sources List— Cities/Studies New Classification Descriptions in 11111111111111111111 DBCompensation Software Database Initial job ratings by JG Consultants Classification Ratings Training with Job 111I111J111111I11 Rating Committee - Review of Job Descriptions by Dept. Heads and Managers Sore -Thumbing Classifications (Reviewing of ratings) Conduct Market Salary and Benefits Study FLSA and EEO audits and compliance Prepare Comparison Initial Draft Reports Recommendations for Implementation of a Revised Pay Structure(s), Evaluate Internal Pay Equity and External Pay Competitiveness Finalize Reports and Communicate Draft Study Results to the City's Leadership Team and Project Oversight Committee Present Classification, Competition and Benefits Study Report along with Implementation plans to City's Leadership Team and City Council Vi. PRWECT FEES 15 Cost Sheet Summary based on Services/Fees Described in RFP Sections and Paragraphs CLASSIFICATION: $ COST 1. Support Staff& PC: 75 Hrs. x $25/Hr. + 75 Hrs. x $150/Hr. $13,125 3. Principal Consultant: 1 x $150/Hr. x 8 Hrs. Offsite $1,200 3. Principal Consultant: 1 x $15041r. x 16 Hrs. Onsite $2,400 4. Principal Consultant: 1 x $150/Hr. x 16 Hrs. $2,400 5. Principal Consultant: 1 x $150/Hr. x 8 Hrs. $1,200 6. Principal Consultant: 1 x $150/Hr. x 8 Hrs. $1,200 TOTAL FOR CLASSIFICATION SECTION: $21,525 COMPENSATION AND BENEFITS STUDY: $ COST 1. Principal Consultant: 1 x $150/Hr. x 8 Hrs. $1,200 2. Principal Consultant: 1 x $150/Hr. x 8 Hrs. $1,200 3. Principal Consultant: l x $150/Hr. x 8 Hrs. $1,200 6. Support Staff & PC: 40 Hrs. x $25/Hr. +40 Hrs. x $150/Hr. $7,000 7. Support Staff & PC: 16 Hrs. x $25/Hr. + 16 Hrs. x $150/Hr. $1800 TOTAL FOR COMPENSATION SECTION: $13,400 COMPENSATION AND CLASSIFICATION MANAGEMENT: $ COST 1. Principal Consultant: 1 x $150/Hr. x 16 Hrs. $1,200 2. Principal Consultant: 1 x $1501Hr. x 24 Hrs. $3,600 3. Principal Consultant: 1 x $150/Hr. x 8 Hrs. $1,200 4. Principal Consultant: 1 x $150/Hr. x 8 Hrs. $1,200 5. Principal Consultant: I x $150/Hr. x 16 Hrs. $2,400 7. Principal Consultant: l x $150/Hr. x 8 firs. $1,200 TOTAL FOR COMPENSATION AND CLASSIFICATION MGMT. $10,800 TOTAL FOR COMPENSATION AND CLASSIFICATION STUDY: $45,725r *Total firm fixed cost to complete this study. DBCompensation 10.0 Internet Hosted Software— D13Syuared, LLC Monthly Software License, Technical Support and Upgrade Fee for Three Years: $1,200 For future studies, the Johanson Group consultants will be available to provide assistance with salary and benefits surveys which will include developing the survey forms, distributing and following-up with survey participants, compiling the survey data and entering the survey results in the DBCompensation software. This professional assistance will be on an as needed basis and the scope of work rate for each update will be $10,000. If the City desires for the Johanson Group consultants to handle the combination of internal job updating and the market pay study as part of the salary and benefits survey update, the professional fee will be $20,000. VII. QAULIFICATIONS AND EXPERIENCE 16 Johanson Consulting, Inc. (S - Corporation), d.b.a., Johanson I Group has been in business for 43 years in Northwest Arkansas. The Company was founded by Dr. Richard C. Johanson, who became a second career University of Arkansas professor of Management in the School of Business. Dr. Johanson worked for Ford Motor Company and Continental EMSCO in high level Human Resources positions prior to completion of his PhD. at University of North Texas. Johanson Group has grown to provide flexible business management support with a focus on human resources support, management training, and on the highly utilized Job Evaluation and Salary Administration Program. Over the years, Johanson Group has concentrated on providing cost-effective professional human resources and compensation management services to small- and medium-sized organizations in both private and public sectors. Our firm has over 50 years of combined business management and human resources experience. Johanson I Group has two principal consultants/owners, Bruce and Blair Johanson, one additional consultant and one administrative support manager. The address of the firm and phone number for questions regarding the proposal is: 2928 McKee Circle, Suite 123, Fayetteville, Arkansas, 72703 (479) 521-2697. The company has analyzed and implemented compensation and classification studies for numerous clients located in 20 states across America. Johanson Group has and continues to provide ongoing assistance for several cities, counties, and other private and public businesses/entities. The firm has been retained by other regional cities, counties, school districts and private sector employers to develop plans similar to that which the City desires. Founded in 2005, DB Squared, i,LC, is dedicated to providing a software too] that will increase the productivity of Human Resource staff, improve employee morale and the return for compensation dollars of the organization. The JESAP (Job Evaluation and Salary Administration Program) is a program custom -developed by the Johanson Group in 2001 to increase the consulting firm's in-house productivity. The program is modeled after the firm's proprietary JESAP methodology, which originated in 1985. The JESAP/ DBCompensation software has experienced nine new releases since 2005 and the tenth release will be available within a few months. Additional information on DB Squared, LLC, its principals, services and software is available by viewing the Company's web -site, www.dbsquared.com. The following list of organizations represents a partial list of the Johanson Group clients requesting classification, compensation and/or benefits survey projects similar to the City of Fayetteville's project during the past five years. 17 AERT, Inc Fayetteville Public Library Arkansas Bankers Association First Arkansas Bank & Trust Arkansas Capital Corporation First Community Bank Arkansas Compensation Association First National Bank of Crossett Arkansas Electric Coop Corporation First Western Bank Arkansas Federal Credit Union Frankfort Plant Board Arkansas Municipal League Garland County Arkansas Urology Goodwill Industries of AR Baldor Electric Gravette Public Schools Bank of the Ozarks Greene County, MO Bear State Financial Harding University Bella Vista Village POA Heifer International Benton County Hytrol Conveyor, Inc. Bentonville Public Schools Integrity First Bank Big Rivers Electric Corporation, KY J.B. Hunt Transportation Bill & Hillary Clinton National Airport Jacksonville Wastewater Utility BNSF Logistics Lakeland Bank Capital Health Liberty Bank Celerit MANA Medical Associates Centennial Bank Maverick Transportation Central EMS Mississippi County Central States Manufacturing Murphy Oil Corporation Circle of Life NEA Baptist Clinic Citizens Bank NOARK SHRM Chapter City of Arkadelphia NW Community College City of Benton NW Regional Airport City of Bryant NWA Children's Shelter City of Conway OK Municipal Power Authority City of Duncan, OK Owensboro Municipal Utilities, KY City of Edmond, OK Ozarks Electric Cooperative City of Fort Smith Pathfinder City of Hot Springs Pel-Freez Arkansas, LLC City of Jonesboro Qualchoice City of Lowell Regional Water Resource Agency, KY City of Maumelle Rocket Farms, CA City of Moore, OK Riceland Foods City of Rogers Safe Foods, Inc. City of Sallisaw, OK Saline County City of Russellville Salmon Companies City of Sand Springs, OK Sebastian County City of Shreveport, LA Southern Bancorp City of Springdale Springdale Water Utilities City of Yukon, OK Stephens Inc Conway Corporation Travel Nurse Across America Conway National Bank, SC UAMS Medical Center DaySpring Cards, Inc. Vestcom Delta Plastics Washington Water Authority VIII. PROJECT TEAM AND AVAILABILITY Johanson Group has provided consulting services for compensation, classification and benefits studies since 1973. Our firm has completed numerous studies for cities, counties and utilities in Arkansas, Kentucky, Louisiana, Missouri, and Oklahoma as well as other public, private, government and non-profit organizations in these regional states as well as numerous studies in other states around the country. The lead consultant for this project will be Blair Johanson. Blair was or is currently the lead consultant for cities in Oklahoma including Duncan, Edmond, Midwest City, Miami, Moore, Sallisaw, Sand Springs and Yukon. In Arkansas, Blair was or is currently the lead consultant for Fort Smith, Rogers, Springdale, Benton, Russellville, and Conway and the lead consultant for Greene County located in Springfield and Washington County in Fayetteville. The Johanson Group principal consultants and support staff have the capacity and availability to complete the City's compensation, classification and benefits study. Mr. Johanson will provide team leadership and he will provide the majority of the Johanson Group support services for the City of Fayetteville classification, compensation and benefits study project, Blair will be present for all on-site meetings with the City of Fayetteville leadership team, I Inman Resources Department and the Job Grading Committee during the study project. He will interface with the City's designated project contact person(s) and the Johanson Group professionals and support staff: The email for Blair Johanson is blair.jolianson(a) ohansongroW.net. The second principal consultant will be Bruce Johanson. He was/is the lead consultant for cities in Arkansas including Bryant, Hot Springs, Maumelle, and Pine Bluff. The reason for the "was/is" with our clients is that we have established and maintained ongoing relationships with our clients. For example, the City of Fort Smith and City of Hot Springs contracted with our firm back in the mid 90's to complete a Compensation and Classification study for each city. We continued to provide each city with updates over the years. The cities of Benton, Bryant, Conway, Fort Smith, Hot Springs, Jonesboro, Malvern. Maumelle, Osceola, Rogers, and Springdale are licensed to use the DBCompensation software program internally. We continue to compile actual market pay data for them every two to three years. Our DBCompensation client organizations have employee counts ranging from 100 to over 8,000. Bruce Johanson will assist in reviews of the City's compensation policies, schedules, and current pay plan documents. In addition, he will offer consulting help with job evaluation with the JESAP- DBCompensation ratings for the classification and compensation study positions. In addition to Blair Johanson as the lead consultant and Bruce as the back-up consultant, Denise Wagner will support the consultants with this project. Bruce's email is brtacc. Qbanson a),johanson&EManct. Denise Wagner is a Project Support Specialist and Office Manager with Johanson Group, She has been part of the Johanson Group team since 2007. She will be responsible for transition of the City's Job descriptions in the DBCompensation database for the City, assisting with the compensation and benefits surveys and helping with various reports and related documents. Ie Resumes for Bruce and Blair Johanson are located on the next two pages. RESUME Blair R. Johanson Johanson Consulting, Inc. dba Johanson Group 2928 McKee Circle, Suite 123 Fayetteville, AR 72703 Phone: (501) 521-2697 — Fax: (501) 521- 5453 blair,johansonCfr)johanson roup.net Experience: Johanson Consulting, Inc. Fayetteville, AR (1999 — Present): President The firm provides a vast array of business and human resources management services. Mr. Johanson has consulted with hundreds of public and private organizations on human resources administration, policies, job classification valuing, compensation and benefits studies during his sixteen year tenure with the family consulting business. Blair and twin brother Bruce are principals of the firm. Bruce has been with the firm since 1986. The firm has agreements with the Arkansas Bankers' Association, Arkansas Municipal League, NOARK SHRM Chapter and the Arkansas Compensation Association to compile annual compensation and benefits surveys that include capturing information on current employee salaries, medical and dental care benefits and other employee benefits that are part of the total compensation package offered by employers. Pendulum Practice Management Company, Sarasota, FL (1997 — 1999): VP of Operations A national practice management company that offered strategic growth planning and practice Management services for practices located in several states. Practice groups with two physicians to thirty plus physicians received management services from Pendulum's Operations Team Physicians Resource Group, Dallas, TX (1996 - 1997): Regional Practice Operations V.P. National eye care practice management company that provided services for ophthalmic and optometric practices. Facilitated strategic planning and operations support for 14 eye care practices located in North Texas, Arkansas and Oklahoma. Development Officer — Central Region (TN, MS, MO, AR, KS, OK and CO). PRG provided services for over 700 eye doctors during the pinnacle of its operation. McDonald Eye Associates, Fayetteville, AR (1994-1996): Practice Administrator Charter Medical Corporation, Macon, GA (1983-1994): Hospital Administrator Baxter -Travenol Corporation, Mountain Home, AR (1979-1983): Personnel Administrator Education: BSBA — Personnel Management and Masters of Business Admin. - University of AR 1978 Professional Associations: World at Work Member; Fayetteville Rotary Club — Paul Harris Fellow and NOARK Association Local Board Member Participation: 20 Credit Counseling of Arkansas; Life Styles — Support for Disabled Adults Bruce E. Johanson Home Address Office Address 1100 Glenn Lane, Fayetteville, AR 72703 2928 McKee Circle, # 123, Fayetteville, AR 72703 (479) 443-4546 Office (479) 521-2697 Fax (479) 521-5453 (479) 871-9345 (Cell) --,,--bruce.johansoiieiohansongi-oul2.net Education University of Arkansas, Fayetteville, AR Bachelor of Business Administration, Personnel, May 1978 Masters of Business Administration, Finance, May 1979 Past Honors & Mouse Manager — Sigma Chi Fraternity — University of Arkansas Activities Cheerleader, 1976-1977; Blue Key, 1978 — University of Arkansas Bank Director, The Bank of Fayetteville, 1997 — 2002 Chairman, Junior Achievement, 11/2000 -- 3/2002 Funding Chairman, Downtown Dickson Enhancement Project, 2001 Current Business Member, Fayetteville Downtown Rotary Club and Chamber of Commerce & Civic Activities Board Member/Treasurer — LifeSource International Board Member/V.P. — Butterfield Trail Village Retirement Community Church Council/Vice President — Central United Methodist Church Past Board Member and President —NOARK Human Resources Association Past Treasurer, Arkansas Alumni Association Experience Johanson Croup — Fayetteville, AR: Partner, 4/2002 to Current • Exec./Mgmt./Employee Compensation and Benefits Consultant • Human Resources & Strategic Planning Consultant • Training/Development Professional and Facilitator The Bank of Fayetteville— Fayetteville, AR: Exec. V.P., 5/2000 to 4/2002 • Functional responsibility Over HUrnan Resources, Marketing, Financial Center, Trust, "braining, New Accounts & Technology Johanson Consulting, Inc. - Fayetteville, AR: President, 5/1986 to 5/ 2000 • Management and Human Resources Consultant • Training and Development Specialist — Univ. of AR (P -T) • Adjunct Instructor— Walton College of Business: Univ. of AR Arkansas Tech Univ.—Russellville, AR: Instructor -6/1984 to 5/1986 • Taught courses in Finance, Marketing, Economics, Mgmt. & Gen. Bus. • Also a partner in a local Ladies Apparel Store Zapata Corp. Houston, TX: Human Resources Mgr. -6/1980 to 5/1984 Conoco, Inc. — Houston, TX: Management Trainee — May, 1979 to May, 1980 Additional Skills Certified facilitator/trainer in several leadership and customer service programs including Franklin Covey's Seven 1-labits of Highly Effective People and Speed of 21 Trust; Proficient in Microsoft programs: Word, Excel, and Power Point. IX. SAMPLE DECOMPENSATION CLASSIFICATION DESCRIPTION Sample City Director of HR & Development Job Description Exempt: Yes Department: Human Resources Reports To: Mayor Location: City Hall Building Date Prepared: March 17, 2015 Date Revised: May 14, 2015 GENERAL DESCRIPTION OF POSITION Primary responsibilities include proactively developing, managing, implementing and integrating people strategies, programs and guidelines in support of business and organizational objectives. This includes organizational development, building leadership capability, retention strategies, employee relations, compensation, performance management, training and development; integration of diversity and inclusion, and career coaching. ESSENTIAL DUTIES AND RESPONSIBILITIES 1. Providing customer service to both internal and external customers, maintaining a positive and effective working relationship with other City employees, and have regular and reliable attendance that is non -disruptive. 2. Developing and providing training for employees to maximize leadership abilities and improving communications between departments and employees. 3. Monitoring changes in federal, state, and local law with respect to personnel issues and recommending changes in policies or established programs as required for compliance. 4. Conducting inquiries into employee grievances and complaints (i.e. harassment and/or discrimination) and report results and recommendations of the investigations to the Mayor and City Attorney. 5. Overseeing the recruiting of qualified candidates for vacancies by various means. Advertising, receiving applications, and referring applicants to management, and assisting as necessary in the interviewing and hiring process. Assuring that qualified internal candidates receive consideration for promotion. Reviewing selection and promotion methods to ensure compliance with appropriate legal constraints and professional standards. 6. Overseeing special and strategic projects assigned by the Administration, ensuring that 22 they are completed in a successful and timely manner. 7. Supervising of the HR Staff, including scheduling and assignment of duties. 8. Determining the need for and conducting other periodic self -audits to ensure legal compliance (wage parity, employee versus independent contractor status, etc.). 9. Supervising the coordination of the annual open enrollment benefit process. 10. Assisting the various departments in the process of organizational planning by evaluating the department's structure and job design. Reviewing and evaluating proposed plans and providing recommendations. 11. Coordinating management training for all aspects of human resource issues, including recruiting, screening, hiring, promotions, disciplinary actions, and terminations. 12. Providing strategic administration of benefits programs such as life, health, dental and disability insurance, retirement plans, vacation, sick leave, leave of absence, workers compensation, cafeteria plan, and EAP. 13. Custodian of City's Employee Personnel records. Assisting the City Attorney with completing Freedom of Information Act requests and news reporter inquiries concerning employee records or employee matters. 14. Perform any other related duties as required or assigned. QUALIFICATIONS To perform this job successfully, an individual must be able to perform each essential duty mentioned satisfactorily. The requirements listed below are representative of the knowledge, skill, and/or ability required. EDUCATION AND EXPERIENCE Broad knowledge of such fields as accounting, marketing, business administration, finance, etc. Equivalent to a four year college degree, plus 9 to 10 years related experience and/or training, and 5 years related management experience, or equivalent combination of education and experience. COMMUNICATION SKILLS Ability to write reports, business correspondence, and policy/procedure manuals; Ability to effectively present information and respond to questions from groups of managers, clients, customers, and the general public. Ability to read, analyze, and understand common scientific and technical journals, financial reports, and legal documents; Ability to respond to complex or difficult inquiries or complaints from customers, regulatory agencies, or members of the business community. Ability to write speeches and articles for publication that conform to prescribed style and format; Ability to effectively present information to top 23 management, public groups, and/or boards of directors. MATHEMATICAL SKILLS Ability to calculate Figures and amounts such as discounts, interest, commissions, proportions, percentages, area, circumference, and volurne. Ability to apply concepts such as fractions, ratios, and proportions to practical situations. CRITICAL THINKING SKILLS Ability to define problems, collect data, establish facts, and draw valid conclusions. Ability to interpret an extensive variety of technical instructions in mathematical or diagram form and deal with several abstract and concrete variables. REQUIRED CERTIFICATES, LICENSES, REGISTRATIONS BA in Human Resources or Business related field; or equivalent combination of undergraduate education and experience. HRCT or SHRM certification required. PREFERRED CERTIFICATES, LICENSES, REGISTRATIONS Not indicated. SOFTWARE SKILLS REQUIRED Advanced: Human Resources Systems Intermediate: Spreadsheet, Word Processing/Typing Basic: Alphanumeric Data Entry, Contact Management, Database, Payroll Systems, Presentation/PowerPoint INITIATIVE AND INGENUITY SUPERVISION RECEIVED Under administrative direction, setting up own standard of performance. Virtually self - supervising. Reports to senior management of the organization. PLANNING Considerable responsibility with regard to general assignments in planning time, method, manner, and/or sequence of performance of own work, in addition, the organization and delegation of'work operations f'or a division of employees engaged in widely diversified activities. DECISION MAKING Performs work operations which permit frequent opportunity for decision-making of major importance which would have considerable effect on the final attainment of multiple major activities and the organization's projects of a large organization component and organization's clientele. 24 MENTAL DEMAND Comprehensive and very intense mental demand. Comprehensive and continual involvement with multiple divisions, departments and/or organizations. Strategic and operational management functions which relate to both the short-term and long-term time periods. ANALYTICAL ABILITY / PROBLEM SOLVING General oversight. Activities covered by general organizational philosophy and objectives. Solving problems in novel, non-recurring or swiftly changing situations in which the approach is not fully defined. Guidance by top executive officer or business owner. SUPERVISORY RESPONSIBILITIES Carries out supervisory responsibilities in accordance with the organization's policies and applicable laws. Responsibilities may include but not limited to interviewing, hiring and training employees; planning, assigning and directing work; appraising performance, rewarding and disciplining employees; addressing complaints and resolving problems. Supervises a small group (1-3) of employees in the same or lower classification. Assigns and checks work; assists and instructs as required, but performs same work as those supervised, or closely related work, most of the time. Content of the work supervised is of a non- technical nature and does not vary in complexity to any great degree. Supervises the following departments: Human Resources RESPONSIBILITY FOR FUNDS, PROPERTY and EQUIPMENT Regularly responsible for funds, building premises, inventory, or other property owned, controlled, or leased by the organization and, in addition, may have temporary custody and responsibility of patron property, which through carelessness, error, loss, theft, misappropriation, or similar action would result in very important monetary losses to the organization. The total value for the above would range from $1,000,000 to $10,000,000. ACCURACY Probable errors would normally not be detected in succeeding operations and would definitely have serious effects in relationships with patrons and/or with the operations of other segments of the organization. Frequent possibilities of error would exist at all times, since the above mentioned areas are inherent in the job. ACCOUNTABILITY FREEDOM TO ACT Oversight. High level of freedom to complete the duties of the position and guided by broad policy with oversight by president, elected official, etc. ANNUAL MONETARY IMPACT The amount of annual dollars generated based on the job's essential duties / responsibilities. Examples would include direct dollar generation, departmental budget, proper handling of organization funds, expense control, savings from new techniques or 25 reduction in manpower. Medium. Job creates a monetary impact for the organization from $l mm to $1 Omm. IMPACT ON END RESULTS Major impact. Job has a considerable impact on the organization's end results. A high level of accountability to generate, manage, and/or control funds within a department and/or total organization. PUBLIC CONTACT Regular contacts with patrons where the contacts are initiated by the employee. Involves both furnishing and obtaining information and, also, attempting to influence the decisions of those persons contacted. Contacts of considerable importance and of such nature, that failure to exercise proper judgment may result in important tangible or intangible losses to the organization. EMPLOYEE CONTACT Establishes company culture by setting tone of interactions and communication with senior level internal officials and employees throughout the organization. USE OF MACHINES, EQUIPMENT AND/OR COMPUTERS Occasional use of highly complex machines and equipment; specialized or advanced software programs. WORKING CONDITIONS Somewhat disagreeable working conditions. Continuously exposed to one or two elements such as noise, intermittent standing, walking; and occasional pushing, carrying, or lifting. ENVIRONMENTAL CONDITIONS The following work environment characteristics described here are representative of those an employee encounters while performing essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions. The noise level in the work environment is usually moderate. PHYSICAL ACTIVITIES The following physical activities described here are representative of those that must be met by an employee to successfully perlorm the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions and expectations. High diversity, low physical. Work activities which allow for considerable amount of diversity as an incumbent performs a variety of tasks. Such tasks might be performed from a given work area, or the individual may move about physically in performing a variety of 26 duties. While performing the functions of this job, the employee is regularly required to talk or Ticar; frequently required to stand, walk, sit; and occasionally required to use hands to finger, handle, or feel, reach with hands and arms, stoop, kneel, crouch, or crawl. The employee must occasionally lift and/or move up to 50 pounds. Specific vision abilities required by this job include close vision; and color vision. ADDITIONAL INFORMATION LANGUAGE SKILLS Ability to read and interpret benefit plan summaries, operating instructions, procedure manuals and explain same to others. Sets the example for others to follow in moderately stressful situations. Provides leadership to changes in the work environment, manages competing demands and is able to navigate and lead through frequent change, delays or unexpected events. INTERNAL COMMUNICATIONS Regular contacts with elected officials, department heads, Finance and Human Resources staff, and all City Employees as needed. EXTERNAL COMMUNICATIONS High level contact with insurance company representatives, the City's workers' compensation carrier and other physicians' offices. Frequent contact with job applicants for city positions. OTHER SKILLS AND ABILITIES Actively ensures and personally observes the confidentiality of sensitive information about employees. Ability to utilize both internal and external resources to obtain information and data necessary to carry out routine assignments and special projects. Must have ability to establish and maintain effective working relationships with management and staff, remaining open to others' ideas and exhibit willingness to try new things. Sample City Printed 8/20/2015 7:24:46 AM Jab Description for Director oJ'HR & Development DUCompensation System - ivsvwv„ lhaa�tare�Lcnm 27 Johanson group Exhibit A Services COMPENSATION & BENEFITS 1. The Johanson Group project leader consultant will facilitate the development of an updated competitive compensation philosophy. The Johanson Group consultants (Blair and Bruce) will meet with the City's Chief of Staff, Director of Human Resources and Assistant Director of Human Resources to discuss the facilitation and development of an updated competitive compensation philosophy. This process may include additional City leaders as recommend by the City's Chief of Staff and the Director of Human Resow•ces. It is anticipated that the facilitation and development of the updated competitive compensation philosophy will take four hours of the consultants' time and another four hours of the lead project consultant's time to prepare a draft competitive compensation philosophy for review and approval of the City's leadership team. 2. The Johanson Group project leader consultant will review existing compensation policies and practices and work with the Chief of Staff, Director of Human Resources, and Assistant Human Resources Director for input and insight on revisions to existing compensation policies and practices. It is anticipated that the review of the existing competitive compensation policies and practices and discussion with the Chief of Staff and HR leaders will take four hours of the lead project consultant's time and another four hours of the lead project consultant's time to prepare revised compensation policies and practices which are aligned with the City's updated competitive compensation philosophy. 3. The Johanson Group consultants have received the list of benchmark cities as data sources to be used to conduct a salary survey as referenced in the City's RFP, Appendix J — Data Sources List. The Johanson Group lead consultants recognize that the City competes for new employee talent in different labor markets for different types of positions and that the City has identified three labor markets—national, regional and local. The Johanson Group lead project consultant will coordinate with the City to arrive at a final Data Sources List and Johanson Group agrees with the City's preference to keep the data source list close to the same listing from 2006 data source list with a few additions that will be discussed with the City as part ofthe coordination to prepare a final Data Sources List. The final Data Sources List shall be approved by the City prior to survey position benchmarking taking place. The coordination and preparation of a final Data Sources List will take the Johanson Group lead project consultant eight hours to complete. 4. The Johanson Group consultants recognize that the City will consider additional survey tools for professional positions where salaries have not been competitive in the market, including but not limited to IT, Engineering, Utility Management, Executive positions, and under market single incumbent positions, The Johanson Group consultants have access to national survey data sources that have the ability to index aggregated pay data to the Northwest Arkansas market. We have found these sources to be beneficial when included with municipality data from targeted cities. In addition, we would like to recommend use of the Department of Labor Bureau of Labor Statistics salary survey data as another source for public and private entities in the Northwest Arkansas Standard Metropolitan Statistical Area (SMSA). S. As part of the City's Classification, Compensation and Benefits Study, the Johanson Group consultants will provide assistance to the City with evaluating the lowest level positions in the City, specifically positions less than $13.00 per hour ($27;400) annually. The consultants will provide information on what other employers are doing to be paying a livable wage to these positions. 6. The Johanson Group lead project consultant will create and recommend a survey model template(s) that will enable the City to make compensation comparisons with the cities listed on the final Data Sources List. The Johanson Group will gain approval from the designated City representative(s) for the salary survey form and the designated benchmark positions (60 to 70 positions) prior to its distribution. Typically, the survey model templates) will have benchmarked classification titles, brief purpose/focus statements, minimum education and experience requirements and a salary study worksheet with degree of job match for each benchmark job, average actual salary, and salary range minimums, midpoints and maximums. In addition, the salary survey will include supplemental pay types such as longevity pay, on-call pay, certificate pay, special team pay, top -out bonus, shift differential, other supplemental pays and the participant's reported date of the last revision to their current salary schedule. The Johanson Group consultants have experience working with total compensation for public safety positions associated with cities and with the annual Arkansas Municipal League Salary and Benefits Study. We understand the importance of apples to apples comparison of supplemental pay types for public safety positions. The Johanson Group consultants are in agreement with the City's understanding for a minimum of five (5) salary survey responses for each merit position to be considered as sufficient comparative data and that all survey responses will be reported and summarized for each benchmark position. Normally, the time period for a thorough compensation and benefits study is about 30 to 45 calendar days depending on the depth and breadth of the total compensation and benefits study. The Johanson Group consultants will geographically modify the survey data using the most current and reliable cost of labor index for the City of Fayetteville compared to responding survey cities. Adjusted data shall be aged to the implementation date of March 1, 2017 if it was collected more than 90 days prior to this date. The report shall include an explanation of the survey methodology, the requested geographic adjustment process and any aging process applied to the survey data. The preparation of salary survey form with approved benchmark positions, distribution of the survey, appropriate follow-up to encourage participation in the survey and the salary survey analysis will be performed by Denise Wagner and one of the Johanson Group principal consultants and it will take five days to complete. 7. The Johanson Group consultants will work with the City to develop a benefits survey form of employee benefits (medical, dental, vision, retirement, employee leaves, FSA, HSA, life insurance, car allowances, flexible work schedules, wellness programs, etc.) and premium cost sharing /HSA contributions and other offered employee benefits with comparable cities as listed on the final Data Sources List. The Johanson Group consultants and the firm's staff have developed, distributed, compiled and reported the annual salary and benefits surveys for the Arkansas Compensation Association, the Northwest Arkansas SHRM Chapter (NOARK) and the Arkansas Municipal League. We have a significant amount of experience working with salary and benefits surveys for these organizations and with other Arkansas cities. We believe that this experience will be beneficial to helping the City achieve success with its salary and benefits surveys. The preparation of benefits survey form, distribution of the survey, appropriate follow-up to encourage participation in the survey and the benefits survey analysis will be performed by Denise Wagner and one of the Johanson Group principal consultants and it will take two days to complete. S. The Johanson Group consultants will review City ordinances that set pay for elected officials, initiate discussions with designated City staff for clarification and understanding of these ordinances and recommend revisions as appropriate. 9. The Johanson Group consultants will recommend mechanisms to maintain both internal and external pay equity for the City's employees in the following section on classification and compensation management. In addition, as part of the final study report, the Johanson Group consultants will recommend the frequency of market surveys to assess the City's competitive position relative to the City's adopted total compensation philosophy. CLASSII+ICATION AND COMPENSATION MANAGEMENT 1. The Johanson Group consultants will assist the City with developing externally competitive and internally equitable salary recommendations for the classification, compensation and benefits study positions. The use of market pay data, internal classification ratings to create competitive pay grades and ranges and uploaded actual employee pay and related information will provide the recommend mechanisms to maintain an external and internal pay equity analysis for the classification, compensation and benefits study. Competitive and equitable salary schedules will be recommended that support the City's Police and Fire positions step pay plans and the non - uniformed positions merit pay plan. The DBCompensation classification rating system with 15 differentiating factors and numerous degree levels as a common denominator classification evaluation process is both a comprehensive and objective program to create an internal point -valued structure that supports differential pay practices based on both pay for performance methodologies and critical performers/key positions. When market pay survey data is included in this classification and compensation study process, the internal structure by classification and job grade series is validated and aligned for external market influencers that include difficult to recruit and retain professional positions with certain skills sets and abilities. This analysis with externally competitive and internally equitable salary study recommendations will take two days of professional consulting time for the proposed salary schedule(s). Preliminary draft reports, a proposed merit pay plan schedule and proposed separate step chart pay plans for the Police and Fire uniformed positions will be prepared and presented by the Johanson Group principal consultants to the City's leadership team for review and to address questions that arise from these reports that display current salaries by employee within recommended job grade and range series for compensation and classification study merit pay plan employees. 2. The Johanson Group principal consultants will identify inconsistencies and deficiencies with the City's Current compensation and classification system as compared to the study results and proposed compensation and classification structure and ranges. Various tables, graphs and worksheets will be utilized in this analysis along with written recommendations for adoption of the proposed compensation and classification study system_ The consultants will develop and present a plan for implementation of the recommendations to include cost of implementation, timing, and the effect on employees' pay based on a minimum of two requested implementation strategies (frill implementation and implementation within budget constraints). All cost estimates will be broken out by finding sources which will be provided by the City to the consultants and the implementation plan for new pay plans will take in consideration the new FLSA overtime exemptions regulations. The lead project consultant will allocate one day of professional services to review and discuss compliance with the new FLSA exempt regulations with a December 1, 2016 compliance date. The lead project consultant will work with the City on re -classifications, wage adjustments to meet or exceed the new salary threshold, cutting overtime hours or some combination of approaches. The DBCompensation Exhibit 6G spreadsheet with a proposed grade and steps table for the merit pay plan employees will be used to determine recommended employee pay placement on the new pay table and to determine future pay increases based upon the determined market values for job categories for the fiscal 2017 budget or additional fiscal year budgets depending on budget constraints. The identification of deficiencies within the current compensation and classification system will take one day of consulting time by one of the Johanson Group principal consultants and another one day period for review with designated City leaders for additional insight and revisions if necessary. The Johanson Group lead project consultant will present the draft salary and benefits survey report by December 12, 2016 and a final salary and benefits survey analysis with recommendations and implementation proposals no later than January 6, 2017. This report will include a description of the classification, compensation and benefits plan and recommended policies and practices for maintenance and administration of the program. The consultants will communicate initial survey results to employees and review the proposed implementation process. All reports will be available to the City in an electronic format and the consultants will provide the reports in a searchable PDF document. 3. A formal presentation will be made to the City Council at the completion of the study. The lead project consultant will present the final report, recommendations, implementation options and associated cost estimates on-site at the February 14, 2017 Council Agenda Session in Fayetteville, AR. The consultant shall attend and/or present at the February 21, 2017 Council Meeting to provide information and answer questions. Development of final reports and presentations will take one day of principal consultant's time. 4. The Johanson Group consultants will provide project status updates as requested by the City. The report wil I include accomplishments during the reporting period and any foreseeable issues which may affect the timely completion of the project. The lead project consultant will provide the status updates. It will take one day of the lead project consultant's time for these updates. 5. The Johanson Group consultants will create final communication materials and conduct employee educational meetings to explain the job evaluation system, survey results and implementation plan. It will take the lead project consultant two days to complete the communication materials and conduct the large group employee educational meetings. 6. The Johanson Group consultants will provide ongoing consultation and support for the maintenance of classification specifications and pay plans for a five (5) year term from date of award at no additional fee to the City of Fayetteville. Ongoing consultation and support shall be for typical standard support as it relates to the City understanding the consultant's software to its fullest capacity. The Johanson Group consultants and the City agree that out of scope work shall be priced separately, post contract, as needed for unforeseen circumstances such as reorganizations, organizational chart restructuring, adding departments or divisions, etc. 7. The Johanson Group consultants understand that the City may or may not decide to procure annual updates (to evaluate industry fluctuations) depending upon the resulting compensation philosophy recommended by the Johanson Group consultants as well as other factors. Johanson Group consultants strongly encourage its municipal classification and compensation study clients to complete periodic market pay studies to stay competitive with local and market cities. The Johanson Group principal consultants will train the City's Human Resources staff on market compensation and benefits survey methodologies, analysis and data utilization techniques recommended. City Human Resources staff will be equipped to conduct on-going and future compensation system maintenance efforts with the DBCompensation software which utilizes the Johanson Group classification and compensation processes and techniques for the completion of the proposed Compensation and Classification Study for the City by the Johanson Group Team. Training for the market surveying process will take one day for one of the Johanson Group principal consultants. Exhibit A Timeline MONTHS 2016/2017 Classification Ratings Training with Job Rating Committee - Review of Job Descriptions by Dept. Heads and Managers Sore -Thumbing Classifications (Reviewing of ratings) Conduct Market Salary and Benefits Study FLSA and EEC audits and compliance Prepare Comparison Initial Draft Reports Recommendations for Implementation of a Revised Pay Structure(s), Evaluate Internal Pay Completion Nov. Dec. .tan. Feb. Start Sept. Oct. PROGRAM Review of Present Comp. Program Current Classifications, Comp. Philosophy, Policies and Practices Meetings with Chief of Staff, IIR Leaders & Department Managers Project Timeline and Expectations Completion of Salary and Benefits Study Forms, Job Benchmarks and Final Sources List — Cities/Studies New Classification Descriptions in /11111N11111!///l// DBCompensation Software Database Initial _job ratings by JG Consultants Classification Ratings Training with Job Rating Committee - Review of Job Descriptions by Dept. Heads and Managers Sore -Thumbing Classifications (Reviewing of ratings) Conduct Market Salary and Benefits Study FLSA and EEC audits and compliance Prepare Comparison Initial Draft Reports Recommendations for Implementation of a Revised Pay Structure(s), Evaluate Internal Pay Completion Nov. Dec. .tan. Feb. Timeline (Continued) MONTHS 2016/2017 Start Commotion Sept. Oct. Nov. Dec. Jan. Feb. Equity and External Pay Competitiveness Finalize Reports and Communicate Draft Study Results to the City's Leadership Team and Project Oversight Committee Present Classification, Competition and Benefits Study Report along with Implementation plans to City's Leadership Team and City Council Exhibit A Deliverables The .Johanson Group consultants will complete at a minimum the following required significant Classification, Compensation and Benefits Study deliverables. a. Align compensation philosophy to ensure competitive positioning in the market b. Salary survey and benefit analysis reports C. Evaluation of each job description d. FLSA and EEO -4 review e. Police step pay plan f. Fire step pay plan g. Merit pay plan h. Implementation plan outlining at least two options with the associated cost estimates i. Policies, practices and processes to administer and maintain the system, including recommended frequency of salary surveys and market reviews j. Communication materials and employee educational meetings k. HR staff and Job Grading Committee training for job evaluation 1. Procedure to review and resolve employee objections of job evaluation results City of Fayetteville, Arkansas - Budget Adjustment Form (Legistar) Budget Year Division Adjustment Number HUMAN RESOURCES (120) 2018 (BY) /Org2 Requestor: Brenda Reed BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: Staff recommends the approval of a budget adjustment in the amount of $5,500. The budget adjustment is due to an increase in the annual contingency fees for contract #2016-0372 with the Johanson Group from $4,500 to $10,000 (a difference of $5,500) for annual market studies and consulting each year the contract is in effect. The increase in the contingency fees is due to the Pay Plan Committee's recommendation to implement a market study every year, alternating each year with Police and Fire uniformed and merit employees. RESOLUTION/ORDINANCE TOTAL Account Number 1010.120.1220-5111.00 1010.120.1220-5314.00 COUNCIL DATE: LEGISTAR FILE ID#: 2/6/2018 2017-0775 xev�wspr 12/28/2017 9:18 AM Budget Director TYPE: DESCRIPTION: GLDATE: POSTED: Increase / (Decrease) Prolect.Sub# Expense Revenue Proiect Sub (5,500) - 5,500 - Date V Ii v.20170707 AT Account Name EX Workers Compensation - Insurance EX Professional Services - : C:\Users\losmith\AppData\Roaming\L5\Temp\39b573b1-9735-4747-b30c-813f1d8c9be2 1 of 1