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PROFESSIONAL CONSUL TING SERVICES AGREEMENT BETWEEN THE CITY OF MOSCOW, IDAHO AND BDPA, INC., CONSULTANT THIS PROFESSIONAL CONSULTING SERVICES AGREEMENT is made this lt' day of , 2014 between the City of Moscow, Idaho, a municipal corporation of the State of Idaho, 206 East Third Street, Moscow, Idaho, 83843 (hereinafter "CITY"), and BDPA, Inc., P 0 Box 15424, Boise, Idaho, 83715 (hereinafter "CONSULTANT"). SECTION I: RECITALS CITY is in the business of providing municipal services to citizens of Moscow, and in the conduct of such business, desires to have the following services/tasks be performed or provided by CONSUL TANT: Conduct a Compensation and Benefits Study as set out within the Scope of Work Section of this Agreement (hereinafter "Project"). CONSULT ANT agrees to perform these services for CITY under the terms and conditions set forth in this Agreement, specifically as stated in Attachment 1 and Attachment 2 to this Agreement. In consideration of the mutual promises set forth herein, it is agreed by and between CITY and CONSULT ANT as follows: SECTION II: SCOPE OF WORK A. Project Preparation CONSULT ANT will meet with the Human Resources Director and other representatives (including Department Heads and/or elected officials) to ensure mutual understanding of Project goals, objectives and expected outcomes. B. Analysis of Background Materials CONSULT ANT will review current job descriptions, class specifications and the existing pay structure. C. Job Evaluation CONSULTANT will evaluate jobs based on the whole job method as that term is understood and accepted within the compensation and benefits industry. D. Additional Data Collection CONSUL TANT will collect additional data with concurrence by the Human Resources Director. Throughout the data collection process, careful efforts are made to understand and identify the full range of duties and requirements of all benchmark positions. Since CONSULTING SERVICES AGREEMENT 20 14- BDPA, INC. PAGE I OF 1 1 ---PAGE BREAK--- finding good job matches is imperative to valid salary data, a through review of the duties and responsibilities of each benchmark job is necessary. It is important to point out that the purpose of the salary survey is to compile the data needed to analyze the labor market to identify general wage trends of other agencies to gain a realistic picture of market rates for CITY as a whole. Therefore, it is not as critical for all job duties to be exactly the same for a good job match. Comparable jobs in other organizations do not need to utilize the same equipment, have the same workload, or work in an identical facility. Critical comparability lies in jobs with similar knowledge, skills and abilities to perform the required duties. In some cases, a comparable job may exceed the responsibilities and duties of CITY' s benchmark position, and in other cases the market job may perform duties at a lower level. Overall, the market comparables provide an "on-the-average" indication of market trends without identically matching the CITY job. Many data sources may be used, local, regional, and in some cases national, as well as specific occupational survey data when required. Confidential proprietary information about survey participants will be kept. As such, the identity of each surveyed "employer name" is coded for published documents presenting survey results. This philosophy is advantageous to provide meaningful, reliable and defensible market data. E. Salary Data Analysis and Compilation Once the salary and benefit information is thoroughly analyzed for appropriate job matches, completeness and accuracy, CONSULT ANT will tabulate the data in a consistent and uniform manner showing pre-determined factors such as minimum and maximum, as well as an "actual average salary" paid to current incumbents. Additionally, the salary survey report will show simple averages for all data compiled. With concurrence of CITY, a copy of the compiled data will be returned to the survey participants. CONSULT ANT will compile and analyze benefit practices of survey participants, including health, dental, vision, disability, life, vacation, sick leave, retirement and executive compensation benefits. The data will be compiled to display a total compensation value for benchmark positions. CONSULT ANT will analyze survey results to determine the "overall average" competitiveness of CITY salaries. This average allows identification of market trends that may be used to tie salaries to the market. The market rate is defined as the actual average salary paid to employees performing similar work in other organizations; this is the salary that a CITY employee could reasonably expect to make if working for another market employer, based on whatever criteria or pay philosophy that employer utilizes. All survey results will be used to identify general wage trends of survey participants to gain a realistic picture of market rates, including base wages and total compensation, for CITY as a whole. CONSUL TING SERVICES AGREEMENT 20 14 - BDPA, INC. PAGE 2 OF 11 ---PAGE BREAK--- F. Reports A preliminary report that documents all completed tasks, methodology and findings will be prepared and presented to the Human Resources Director and designated others for review and comment. The report will then be revised to final form ("Final Project Report"). G. Project Outcome An analysis of Total Compensation (salary and benefits) as compared to the labor market. SECTION III: TIMELINE Phase I - 2014: This Project starts CX.rtDOC.f ll..P 2014 and shall be completed on or before (.>ec.Mber 4S , 2014 unless otherwise agreed to in writing by both parties prior to that date. Phase II - 2015: This ċroject continues JU.t\ CU. fZj l 2015 and shall be completed on or before L \ \6 , 2015 unless otherwise agreed to in writing by both parties prior to that date. SECTION IV: PAYMENT CONSUL TANT will perform all tasks outlined in the Scope Of Work hereinbefore for a fixed fee amount not to exceed thirteen thousand forty dollars ($13,040). This fixed fee amount includes all related expenses to include the costs of printing, telephone, overhead, postage, facsimile and consumable supplies. Phase I - 2014: CONSULTANT shall be paid five thousand nine hundred sixty dollars ($5,960) upon approval of this Agreement by CITY. Phase II - 2015: CONSULTANT shall be paid seven thousand eighty dollars ($7,080) upon completion and acceptance by CITY of Phase II - 2015. SECTION V: STATUS OF CONSULTANT This Agreement calls for CONSUL TANT to perform professional services as an independent contractor and CONSULT ANT will not be considered an employee of CITY for any purpose. CONSUL TING SERVICES AGREEMENT 2014 - BDP A, INC. PAGE 3 OF 11 ---PAGE BREAK--- SECTION VI: INSURANCE CONSULT ANT shall provide all of her own insurances necessary to protect CITY against claims for worker's compensation and for liability arising out of the sole negligence of CONSULTANT. SECTION VII: LIMITATION OF LIABILITY CONSULTANT is performing the specified work on behalf of CITY and only for such specified purposes. Under no circumstances will CONSULTANT's liability to CITY for any negligent act or mission relating to or arising out of Project exceed CONSULT ANT' s total fee for the services rendered. Further it is understood and agreed that CONSULT ANT is not liable or responsible for the results of any surveys or other tasks and data collection undertaken as a part of and necessary to the completion of Project, such survey information and data being entirely outside of the control of CONSULTANT. CONSULTANT is responsible for presenting and shall present all relevant information and data collected pursuant to the Scope Of Work to be performed. SECTION VIII: CONFIDENTIALITY/PROPRIETARY INTERESTS CONSUL TANT and CITY recognize that CONSULT ANT may, in the course of performing her services, acquire or have access to information and data that may be confidential or personal to the individual/entity disclosing such information or data. While CONSULT ANT' s tasks and Project being undertaken may require disclosure of such information to CITY in a general, statistical or other non-specific manner, CITY understands and accepts CONSULTANT's limitation that in order to obtain the information and data necessary to perform the assigned tasks and to complete Project in question, all of the information specifically obtained by CONSULT ANT in carrying out and completing Project is confidential and proprietary to CONSULTANT and is not subject to disclosure to CITY as part of Project. SECTION IX: CANCELLATION Either party may cancel Project if other party breaches any requirement under this Agreement, and will not be required to further perform if breach is material. The parties agree that CITY may cancel Project at any time upon thirty (30) days written notice to CONSULTANT, and subject to payment to CONSULTANT for all services rendered by CONSULT ANT toward the completion of Project, up to the time of cancellation, based on the benchmarks or percentage of completion of the total Project set forth in this Agreement, plus a termination charge of twenty five percent (25%) of the total remaining value of the Agreement. SECTION X: SERVICES AFTER TERMINATION Inasmuch as CONSULT ANTs will acquire or have access to information that is of a highly confidential and secret nature it is expected that CONSUL TANT will not use or disclose any CONSULTING SERVICES AGREEMENT 20 14- BDPA, INC. PAGE40F 1 1 ---PAGE BREAK--- proprietary or confidential information obtained from CITY during the period of Project without CITY' s prior written approval. SECTION XI: LEGAL ASSISTANCE CONSUL TANT does not render legal advice or legal opinion in her services or products. Such advice may only be given by a licensed practicing attorney. Therefore, CITY will confer with their representing counsel on any issues requiring legal review. CONSULTANT BDPA, Inc. STATE OF IDAHO ) ) SS. COUNTY OF ADA ) CITY City of Moscow, Idaho &ti On this I2 day of }ov.e,mbe;( , 2014, before me, a Notary Public in and for said . State, appeared BDP A, Inc. known to me to be the person named above and acknowledged that he/she executed the foregoing document as the duly authorized representative for BDP A, Inc. DANIELA HEFNER NOTARY PUBLIC STATE OF IDAHO CONSULTING SERVICES AGREEMENT 2014- BDPA, INC. ublic for the S ate of I Residing at_ČBt My commission expires Ql3}k J4 1 PAGE 5 OF 11 ---PAGE BREAK--- ATTACHMENT 1 - PHASE I IA. Work and Compensation! Job Valuation for Internal Equity A review of Internal Equity establishes a hierarchy of jobs across occupational categories and levels of responsibility. This enables CONSULT ANT and the CITY to provide justification on how employees are paid and validation for the Equal Pay Act and Lilly Ledbetter Act. Using common evaluation factors, jobs are eventually assigned to pay grades. Every job is reviewed and evaluated as though it is vacant: the incumbent's personal skills, education, or experience is not considered; the focus is on the job's primary functions and minimum qualifications. CONSULTANT will review CITY's current classification process and work with the Human Resources Director and selected others to finalize an appropriate methodology customized for CITY' s use. CONSUL TANT typically utilizes the Whole Job Method of position evaluation to determine internal equity because it makes sense, is flexible, and conforms to regulatory compliance. The Equal Pay Act requires that jobs of equal value should be paid equitably and requires at least four factors in determining a job's value: scope of responsibility, level of effort, skill and working conditions. CONSULT ANT will work with the Human Resources Director and selected others to ensure that the CITY's job valuation factors meet the requirements of the Act and are consistent with the CITY's goals. Kinds and Levels Chart CONSULT ANT will analyze all positions in the CITY using the agreed-upon job valuation factors. We assume all job descriptions are up to date and reflective of primary functions and acceptable qualifications. We will use the CITY's current Kinds and Levels Chart as the basis for this task, and any revisions will be reviewed by CITY managers before it is finalized. We will closely review Fire, Police and Public works jobs particularly as they may relate to other employers' positions covered by collective bargaining agreements. We will work with CITY to ensure that job matches are similar, using job descriptions versus job titles. It is important that all understand the job valuation and grouping process is based on the position's value (not the individual employee's contributions or performance) to the organization and not on the salary that may be assigned to the position. The managers' input is vital to finalizing a viable process for internal equity; however, CONSULT ANT takes seriously its obligation to be impartial and will make the final recommendations for internal equity to the City and other managers. CONSULT ANT will provide the City with detailed documentation both on its current classification process as well as (if needed) a revised approach and recommendations for continued maintenance. It is our practice to develop useable administrative procedures for our SERVICES AGREEMENT 2014- BDPA, INC. PAGE 60F 11 ---PAGE BREAK--- clients to maintain classification and compensation plans. All information will be made available in MS Office format or other configurations agreeable to CITY. IB. Analy²ing Compression Issue1 The CITY has identified specific areas of compression, both in pay and position alignment for jobs such as Deputy Public Works Director, Administrative Assistant II and III, Maintenance Operator I, II, and III, engineering positions and planner positions. We will work with the HR Director and City Supervisor to develop options that reduce or eliminate compression. Project Component Professional' Profe,ssional Travel Total Hours hourly rate of $90 * Meetings with City Supervisor, HR Director ( 1) 6 540 $ 750 Internal Equity Review Job valuation via current K&L Chart 18 1,620 Address compression issues 18 1,620 Recommendations re K&L Chart 22 1,980 Total for FY2014 5,220 750 $ 5,960 In witness hereof, by the signatures below, the parties agree to all parts, sections and conditions of this Attachment 1 of the Agreement as stated herein. BDPA, Inc. By: Andrea Fogleman or Bonnie Brazier Title: President and Vice-President, Co-Owners Signature: _js/ Bonnie Brazier/sf _ Date September 23, 2014 _ _ CONSUL TING SERVICES AGREEMENT 2014 - BDP A, INC. City of Moscow By: U\\LtuAA.Lt Title: Signature{ Date l D l \ I L 4 PAGE 70F 11 ---PAGE BREAK--- ATTACHMENT2 ""PHASE II IA. Conducting a Market Comparability Stud0 The City wants to determine whether it's compensation plan is competitive in the marketplace. CONSULTANT will closely examine the CITY's existing compensation plan to determine first, whether it conforms to the CITY' s compensation philosophy and then, whether it is competitive in the CITY's market area. Development of a viable and defensible compensation plan usually requires several steps: • defining the market area and identifying employers with whom the CITY competes for qualified applicants and employees; • selecting benchmark positions for a market survey that represent a cross-section of the CITY' s workforce; • determining benefit information to be collected for a resulting total compensation analysis; • analyzing survey results for an overall, on-the-average comparison; • applying the compensation philosophy to develop a salary structure; • preparing implementation options and costs; and • developing a final report with administrative guidelines that the CITY can use to maintain the classification and compensation system for the next several years. 1. Defining the Market Area and Competing Employers The detailed process and the survey participants will be mutually defined by the City Supervisor, Human Resources Director, department heads and CONSULT ANT because the definition of the labor market within which the CITY must compete is critical. The labor market identification should definitely include other employers with whom the CITY competes for qualified applicants and employees, and those that are likely to employ a number of similar type jobs and are located within the competitive geographic area to the CITY, understanding that the geographic area may be different for various levels of positions and could be local, regional or national. CONSULT ANT recommends that both public and private employers be invited to participate in the survey process. The market area will be identified and survey participants will be mutually defined with the CITY. The City of Moscow is a subscriber to the Northwest Data Exchange (NWDE), a clearinghouse of salary and benefit data -from Idaho cities and counties and some contiguous states, that is a separate service of CONSULTANT. The CITY currently subscribes to Level III which will allow it to select specific employers in the Exchange and choose up to five additional employers that are not currently in the Exchange. 2. Selecting Benchmark Positions With the subscription to the Northwest Data Exchange, selecting Benchmark Positions is not necessary because we collect salary data from all of a subscriber's jobs. We use job descriptions collected from each subscriber to make reliable matches for jobs. Survey data will be provided for every CITY classification that has a reasonable job match within the Exchange. CONSULTING SERVICES AGREEMENT 2014- BDPA, INC. PAGE80F 11 ---PAGE BREAK--- We will also do our best to collect data from other employers who are not Exchange subscribers, such as University of Idaho, Washington State University, and Latah County. For these non NWDE employers, we will work with the CITY to identify benchmark positions for the CITY. Private employers may also be identified and CONSUL TANT will ask the CITY to intercede to obtain private sector data. We will be collecting FY2015 data for the Northwest Data Exchange in November and December, and will begin analyzing that data for the CITY in January 2015. It is important to understand the survey data is ONLY used to identify the "overall average" competitiveness of CITY salaries. This average allows CONSUL TANT to identify a market trend that may be used to design a salarv structure that is competitive in the market. 3. Providing a Total Compensation Analysis Through the NWDE we are able to access and provide current actual salary data: this is the amount an employee could expect to make working for other employers and forms the "market" rate for comparable jobs. We are also able to provide salary range minimums and maximums so a range analysis can be conducted. For benefit comparisons, CONSULTANT calculates total compensation based on a formula adapted from one developed by the International City/County Manager's Associations. It includes the value of personal leave, sick leave (if applicable), retirement contribution and the premium amount paid for medical, dental and vision insurance for the employee and/or the employee's family. 4. Compiling and Analyzing Survey Results The purpose of the salary survey is to develop a realistic picture of market rates for the CITY as a whole. We accomplish this by analyzing current wage information on jobs through the NWDE and from other employers identified by the CITY, determining the general wage trends of other agencies, and then comparing that data with an average of CITY wages. Survey results are analyzed to determine the "overall average" competitiveness of CITY salaries. This average allows CONSULTANT to identify a market trend that may be used to design a salary structure tied to the market. CONSULT ANT defines the market rate as the actual average salary paid to employees performing similar work in other organizations; this is the salary that a CITY employee could reasonably expect to make if working for another market employer, based on whatever criteria or pay philosophy that employer utilizes. CONSUL TANT will analyze the survey data to develop results showing the overall average market ratio (CITY wages compared to those of competing employers), along with comparisons of salary ranges, range analyses, benefits comparisons, and total compensation. The preliminary results of the salary survey will be presented to the CITY for initial review and CONSUL TANT will follow up on questions or issues raised to clarify survey data if needed. The final results will be used to recommend refinements to the existing pay plan or alternative salary structures as requested. CONSULTING SERVICES AGREEMENT 2014- BDPA, INC. PAGE 90F 11 ---PAGE BREAK--- 5. Salary Structure Design/Refinement CONSULT ANT will review with the HR Director and City Supervisor the CITY' s pay philosophy (how should employees be recognized and rewarded for their contributions while still having a competitive salary structure to attract and retain staff). If requested, this discussion may include the City Council and Department Heads. The pay philosophy is often considered to be a policy decision and the City Council is typically asked for their determination, using recommendations from managers. Once the pay philosophy has been determined, CONSULTANT will use the survey's general wage trends to develop a recommended salary structure that links internal equity (as identified through the job valuation process) and external competitiveness (as compiled from the salary survey). Optional design strategies will be discussed with the CITY and a salary structure will be finalized through organizing pay grades based on the pre-determined structure alternatives. 6. Plan Implementation CONSULT ANT will prepare and present cost estimates for implementation of the proposed pay structure, as requested. Recognizing that many cities have limited funding available for implementation, CONSULT ANT may develop several strategies for implementing the recommended salary structure including placement of individual employees into ranges and phased implementation, if necessary. CONSULTANT will also recommend guidelines for ongoing administration of the salary system, providing the CITY with tools and processes to administer and maintain the approved compensation plan. IB. Evaluating CITY's Performance Management System! We will work with the HR Director and City Supervisor to address issues concerning the CITY 's performance-based compensation plan. The CITY has been using its AMPS program for several years and there are some concerns about it. We will help develop options to revitalize the program. CONSUL TING SERVICES AGREEMENT 2014 - BOP A, INC. PAGE \OOF 11 ---PAGE BREAK--- Project Component Professional Professional Travel* Total Hours hourly rate of $90 Meetings with City Supervisor, HR Director 8 720 $1,500 Market Comparability Study Identify market employers and benchmarks Included in Included in Note: By subscribing to Level III of NWDE Level NWDE Level the Northwest Data Exchange, CITY III subscription III subscription saves approximately $7,000. Review NWDE data and obtain data Included in Included in from five other selected employers NWDE Level NWDE Level if needed III subscription III subscription Prepare total compensation analysis Included in Included in NWDE Level NWDE Level and present preliminary survey results III subscription III subscription Review pay philosophy and analyze salary structure 24 2,160 Prepare recommendations and implementation options 24 2,160 Assess Performance System Determine options to revitalize performance management system 12 1,260 Total for FY2015 5,580 1,500 7,080 In witness hereof, by the signatures below, the parties agree to all parts, sections and conditions of this Attachment 1 of the contract as stated herein. BDPA, Inc. By: Andrea Fogleman or Bonnie Brazier Title: President and Vice-President, Co-Owners Signature: _js/ Bonnie Brazier/sf _ Date September 23, 2014 _ _ CONSULTING SERVICES AGREEMENT 2014- BDPA, INC. City of Moscow By: Title: % Signature: Date PAGE 11OF 11