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HomeMy WebLinkAbout12-006 - NW Management Consulting - Compensation Analysis12 -006 Council Approval N/A CONSULTANT AGREEMENT FOR COMPENSATION ANALYSIS/REVIEW SERVICES THIS AGREEMENT is entered into between the City of Tukwila, Washington, herein -after referred to as "the City and NW Management Consulting, Inc. hereinafter referred to as "the Consultant in consideration of the mutual benefits, terms, and conditions hereinafter specified. 1. Project Designation. The Consultant is retained by the City to perform a wage and benefit analysis to validate the City's non represented salary and benefit program. 2. Scope of Services. The Consultant agrees to perform the services, identified on Exhibit "A" attached hereto, including the provision of all labor, materials, equipment and supplies. 3. Time for Performance. Work under this contract shall commence upon the giving of written notice by the City to the Consultant to proceed. The Consultant shall perform all services and provide all work product required pursuant to this Agreement according to the schedule provided in Attachment unless an extension of such time is granted in writing by the City. 4. Payment. The Consultant shall be paid by the City for completed work and for services rendered under this Agreement as follows: A. Payment for the work provided by the Consultant is outlined below: Wage and benefit analysis study, including fees and expenses, $9,850.00 (includes final report) Provision for program development, $3,400 (if requested by City) The total amount of payment to the Consultant shall not exceed $15,000 without express written modification of the Agreement signed by the City. B. The Consultant may submit vouchers to the City once per month during the progress of the work for partial payment for that portion of the project completed to date. Such vouchers will be checked by the City and, upon approval thereof, payment shall be made to the Consultant in the amount approved. C. Final payment of any balance due the Consultant of the total contract price earned will be made promptly upon its ascertainment and verification by the City after the completion of the work under this Agreement and its acceptance by the City. D. Payment is provided in this section shall be full compensation for work performed, services rendered, and for all materials, supplies, equipment and incidentals necessary to complete the work. J+o.. 6Y t�� J r? E. The Consultant's records and accounts pertaining to this Agreement are to be kept available for inspection by representatives of the City and state for a period of three (3) years after final payments. Copies shall be made available upon request. 5. Ownership and Use of Documents. All documents, drawings, specifications and other materials produced by the Consultant in connection with the services rendered under this Agreement shall be the property of the City whether the project for which they are made is executed or not. The Consultant shall be permitted to retain copies, including reproducible copies, of drawings and specifications for information, reference and use in connection with the Consultant's endeavors. The Consultant shall not be responsible for any use of the said documents, drawings, specifications or other materials by the City on any project other than the project specified in this Agreement. 6. Compliance with Laws. The Consultant shall, in performing the services contemplated by this Agreement, faithfully observe and comply with all federal, state, and local laws, ordinances and regulations, applicable to the services to be rendered under this Agreement. 7. Indemnification. The Consultant shall indemnify, defend and hold harmless the City, its officers, agents and employees, from and against any and all claims, losses or liability, including attorney's fees, arising from injury or death to persons or damage to property occasioned by any act, omission or failure of the Consultant, its officers, agents and employees, in performing the work required by this Agreement. With respect to the perform- ance of this Agreement and as to claims against the City, its officers, agents and employees, the Consultant expressly waives its immunity under Title 51 of the Revised Code of Washington, the Industrial Insurance Act, for injuries to its employees, and agrees that the obligation to indemnify, defend and hold harmless provided for in this paragraph extends to any claim brought by or on behalf of any employee of the Consultant. This waiver is mutually negotiated by the parties. This paragraph shall not apply to any damage resulting from the sole negligence of the City, its agents and employees. To the extent any of the damages referenced by this paragraph were caused by or resulted from the concurrent negligence of the City, its agents or employees, this obligation to indemnify, defend and hold harmless is valid and enforceable only to the extent of the negligence of the Consultant, its officers, agents and employees. 8. Insurance. The Consultant shall secure and maintain in force throughout the duration of this contract comprehensive general liability insurance, with a minimum coverage of $500,000 per occurrence and $1,000,000 aggregate for personal injury; and $500,000 per occurrence/ aggregate for property damage, ,990,9ea. Said general liability policy shall name the City of Tukwila as an additional named insured and shall include a provision prohibiting cancellation of said policy except upon thirty (30) days prior written notice to the City. Certificates of coverage as required by this section shall be delivered to the City within fifteen (15) days of execution of this Agreement. 2 9. Independent Contractor. The Consultant and the City agree that the Consultant is an inde- pendent contractor with respect to the services provided pursuant to this Agreement. Nothing in this Agreement shall be considered to create the relationship of employer and employee between the parties hereto. Neither the Consultant nor any employee of the Consultant shall be entitled to any benefits accorded City employees by virtue of the services provided under this Agreement. The City shall not be responsible for withholding or otherwise deducting federal income tax or social security or for contributing to the state industrial insurance program, otherwise assuming the duties of an employer with respect to the Consultant, or any employee of the Consultant. 10. Covenant Against Contingent Fees. The Consultant warrants that he has not employed or retained any company or person, other than a bonafide employee working solely for the Consultant, to solicit or secure this contract, and that he has not paid or agreed to pay any company or person, other than a bonafide employee working solely for the Consultant, any fee, commission, percentage, brokerage fee, gifts, or any other consideration contingent upon or resulting from the award or making of this contract. For breach or violation of this warrant, the City shall have the right to annul this contract without liability, or in its discretion to deduct from the contract price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift, or contingent fee. 11. Discrimination Prohibited. The Consultant, with regard to the work performed by it under this Agreement, will not discriminate on the grounds of race, color, national origin, religion, creed, age, sex or the presence of any physical or sensory handicap in the selection and retention of employees or procurement of materials or supplies. 12. Assignment. The Consultant shall not sublet or assign any of the services covered by this Agreement without the express written consent of the City. 13. Non Waiver. Waiver by the City of any provision of this Agreement or any time limitation provided for in this Agreement shall not constitute a waiver of any other provision. 14. Termination. A. The City reserves the right to terminate this Agreement at any time by giving ten (10) days written notice to the Consultant. B. In the event of the death of a member, partner or officer of the Consultant, or any of its supervisory personnel assigned to the project, the surviving members of the Consultant hereby agree to complete the work under the terms of this Agreement, if requested to do so by the City. This section shall not be a bar to renegotiations of this Agreement between surviving members of the Consultant and the City, if the City so chooses. 15. Attorneys Fees and Costs. In the event either party shall bring suit against the other to enforce any provision of this Agreement, the prevailing party in such suit shall be entitled to 3 recover its costs, including reasonable attorney's fees, incurred in such suit from the losing party. 6. Notices. Notices to the City of Tukwila shall be sent to the following address: City Clerk City of Tukwila 6200 Southcenter Boulevard Tukwila, WA 98188 Notices to Consultant shall be sent to the following address: NW Management Consulting, Inc. Attn: Ross Ardrey 1326 Fifth Ave., Suite 349 Seattle, WA 98101 17. Integrated Agreement. This Agreement, together with attachments or addenda, represents the entire and integrated Agreement between the City and the Consultant and supersedes all prior negotiations, representations, or agreements written or oral. This Agreement may be amended only by written instrument signed by both the City and the Consultant. DATED this 3 C 1 CITY OF TUKWILA day of L-1 -1/ CONSULTANT 201 cal. B 'mss `Z S A (_1� Printed Name: I Title: Po F---,ev�� Attest/Authenticated: I 1� City Clerk 0 Approved as to Form: O e of orn 4 Exhibt A CITY OF TUKWILA PROPOSAL FOR WAGE AND BENEFIT ANALYSIS OF NON REPRESENTED POSITIONS Ross J. Ardrey Consultant JVW Management Consulting, Inc. 1326 Fifth Ave #349- Seattle, WA 98101 Outline: Introduction (Page 1), Qualifications (Page 2), Suggested Approach Costs (Pages 3 -4), Other Data (Page 5) INTRODUCTION, SCOPE AND GOALS This proposal responds to the City of Tukwila's request for a wage and benefit analysis of non- represented positions. The proposal recognizes that the review is not a traditional compensation study and is intended to be a validation study of the City's existing program. NW Management Consulting's statement of qualifications is included as an attachment. Study Goals and Concerns The City of Tukwila is located in South King County, has 320 regular full -time and part-time employees including 36 non represented chiefs, directors, supervisors, analyst, and administrative technical employees who are assigned to 32 positions. Examples of concerns: How to conduct a review without disrupting the City's ongoing compensation programs? How to select comparables that recognize the uniqueness of the City of Tukwila? How to compare City position responsibilities and functions with other agencies? How compare internal equity between non -rep and represented positions? How to attain credibility with elected officials, management, unions, and staff? Uniqueness of City of Tukwila The proposed approach emphasizes the challenges of defining comparability, validating wage and benefit data, recognizing the uniqueness of the City of Tukwila's responsibilities, and keeping everyone informed. Examples of City of Tukwila's unique responsibilities, programs and services: Tukwila has a population of 18,190 residents and a daytime population of 170,000. Tukwila is unique in the extent of its resident and regional retail and business services. Resident and regional services impact City functions, positions and responsibilities. Tukwila is one of the most complex municipalities in the Puget Sound area. Tukwila, like other cities, is facing challenging business and economic times. Proposal Format and Suggested Approach The proposal format and suggested approach is designed to be responsive to the scope of services as outlined in the RFP and reflects the uniqueness of the City of Tukwila. Highlights of the consultant's experience and qualifications are shown on page 2, a suggested approach and schedule is on page 3, and information on project costs is on page 4. Information regarding insurance coverages, warranties, and professional ethics, as well as the consultant's affidavit of submittal is on page 5. EXPERIENCE AND QUALIFICATIONS NW Management Consulting is the compensation and human resources consulting practice of Ross J. Ardrey. The firm was founded in 1993, and, at the request of clients, functions as a sole proprietorship. Mr. Ardrey's studies include public administration, business, and law. Degrees received: B. A., University of Chicago; M. A., Graduate School, University of Washington; and J. D., School of Law, University of Washington. Mr. Ardrey began his consulting career in Seattle with the general management consulting firm of Harry Prior Associates, a spin -off from the national firm of Booz Allen Hamilton. In 1976 Mr. Ardrey and Mr. Prior worked with Mayor Bauch to assist the City on a city -wide salary study. On the retirement of Mr. Prior in 1990, Mr. Ardrey consulted for the actuarial and consulting firm of Howard Johnson Company in Seattle before starting NW Management Consulting in 1993. Over the years Mr. Ardrey has completed over 500 projects for more than 250 clients. Distinctive Features of Consultant's Practice Clients look to Mr. Ardrey as a local compensation consulting resource who: Presents a good balance of listening, consulting, and communications skills. Keeps up on compensation practices and public sector compensation. Operates at a national and best practices level; good teamwork with client staff. Retains a low overhead cost structure and completes projects on budget and on schedule. Maintains a good track record with mayors, managers, employees, and unions. Examples of Client References Projects recognize the uniqueness of each agency and avoid "cookie cutter" approaches. Most of Mr. Ardrey's references are with agencies where he has completed multiple projects. Examples of client references are listed geographically from North to South. City of Lynnwood 19100 44th Ave West Lynnwood, Washington 98046 Steve Jensen Police Chief Telephone: (425) 670 -5601 Fax number: (425) 670 -1418 Email: sjensen @ci.lynnwood.wa.us City of Covington 16720 SE 271st Street Covington, WA 98042 City of Portland 1900 SW 4th Avenue, Room 3500 Portland, Oregon 97201 Noreen Beaufrere Human Resources Manager Telephone: (253) 638 -1110 ext 2240 Fax number: (253) 638 -1122 Email: nbeaufrere @ci.covington.wa.us David J. Rhys Assistant Director, Human Resources Telephone: (503) 823 -3507 Fax number: (503) 827 -5933 Email: drhys @ci.portland.or.us The suggested approach and project costs are shown on pages 3 and 4 following this page. SUGGESTED APPROACH AND PROJECT COSTS The suggested approach is intended to be about City of Tukwila, meet the Mayor and other elected officials goals, respond to management requirements, and provide a framework for refinements. Step l: Review and Analysis of other Jurisdictions Start-up efforts focus on consultant introductions, familiarization and project planning. The focus of this step should be on review and analysis of the jurisdictions that the City of Tukwila utilizes for comparable data for market based guidance on classification and compensation structures. The consultant's role will be to collect and compare data regarding traditional matters such as population, staffing, and assessed valuation, as well as current best practices, recruiting and retention, departmental considerations, and comparisons with cities that have something going on. Step 2: Review and Analysis of Internal Equity with Represented Positions The purpose of this step is to review and compare internal equity between non- represented and represented positions. The City has a Decision Band Method (DBM) system for classification and compensation so the concern is with internal equity between the non -rep and represented positions. The consultant's role will be to compare DBM alignments for non -rep and represented positions, conduct tests with alternative weighting and point comparisons structures, determine the extent of variance, and recommend alternative modifications, if any, to enhance internal equity. Step 3: Conduct a Survey of Prevailing Market Rate Salaries and Benefits The scope of this phase of the study is to include up to ten (10) of the identified comparable jurisdictions for a designated group of benchmark positions. Survey data, as stated in the RFP, is available from the Association of Washington Cities. The consultant's role will be to review and critique benchmark selection criteria and selections, compile and analyze AWC salary and benefit data, prepare trendlines and position by position comparisons between the survey cities and the City of Tukwila, and prepare salary and benefit total compensation comparisons for survey cities and City of Tukwila. Step 4: Discuss and Recommend Range Placement Adjustments Step 4 focuses on reconciliation of existing range placements and survey findings with explanations to the City Management Team and City Council where the results of the labor market rate survey cause market adjustments to be recommended. The consultant's role will be to work with the City's management team and HR Analyst to build on the City's practice for developing recommendation for range placements and to enhance communications regarding study practices, benchmark selections, and overall fairness. Step 5: Provide Recommendations for Compensation Program Developments Findings, reports and presentations should focus on compensation program development functions such as the frequency and review of this kind of compensation study, general policies for compensation reviews, and improvements in the current compensation study process. The suggested approach focuses on the scope of services outlined in the RFP. Suggested project work plan, costs, and a suggested schedule follow this page. WAGE AND BENEFIT ANALYSIS OF NON REPRESENTED POSITIONS Scove: Focus on Validation, Do Reviews and AnaNsis. Assist in Develonine Recommendations Avvroach to Be Flexible and Provide for Options such as Provision for Reports and Presentations Process to Be Oven and Transvarent No Secrets /No Mvsteries Treat Represented and Non -Rev the Same. Note: Ontion for Program Develonment Is Estimated at Uo to $3,400 and Omitted from Pro Totals Project PROJECT PLAN Cnslt Fees (Cnslt $100 /Hr) Schedule (Weeks) Steps Tukwila and Consultant Responsibilities Hours Fees Expense Total 1st 2nd 3rd 4th 1 REVIEW AND ANALYSIS OF JURISDICTIONS Comparability factors: pop, AV, hub, dpt, rcrt /rtn Start -up meetings and preliminary plans Review documents, contracts, descriptions Collect /prepare city comparability analysis 2 REVIEW AND ANALYSIS INTERNAL EQUITY Conduct internal equity analysis non -rep and rep Review Decision Band Method system Compare non -rep and Teamster alignments Recommend modifications, if any 3 CONDUCT SURVEY OF SALARIES AND BENEFITS Validate survey data provided by AWC Review to include salaries and benefits Focus on 10 -15 benchmark positions Review to include up to 10 other jurisdictions Summarize survey comparisons and validations Develop trendlines and position comparisons Develop total compensation comparisons 4 RECOMMEND SURVEY ADJUSTMENTS Recommendations based on market rate survey Comparisons to focus on benchmark levels Survey based on AWC data selections Recommendations to include explanations Attention to Council and economic conditions 5 RECOMMEND COMPENSATION UPDATES Focus on compensation program concerns Respond to Mayor, Council, other issues such as Frequency of validation studies Scope and content of validation studies General policies for compensation reviews Improvements to current study processes Reports and Presentations (34 hrs at $3,400) 1- 5 WORK PLAN, BUDGET AND SCHEDULE 24 2,400 25 2,425 24 2,400 25 2,425 32 3,200 50 3,250 16 1,600 50 1,650 Please See 100 100 Heading Note am 96 9,600 250 9,850 aF_] ICI® uu 17 ��u OTHER INFORMATION Insurance Coverage and Warranties NW Management Consulting maintains general liability insurance that provides coverage to protect consultant and client interests. Liability provisions include general aggregate business liability at $4,000,000 and bodily injury by accident at $2,000,000 each accident. The policy is with Hartford/ITT. It is Mr. Ardrey's practice to provide informal assistance to clients without charge during the implementation and initial administration of new or updated compensation programs for a period of 12 months. Compensation reviews, surveys, recommendations, and other deliverables are to be in accordance with generally accepted compensation practices in effect among public agencies in the State of Washington. Deliverables are to be in electronic and hard copy formats. Professional Ethics Mr. Ardrey adheres to the Institute of Management Consultants' Code of Professional Conduct. The Code assures clients of the consultant's independence of judgment and protection of the confidentiality of client matters. CONSULTANT AFFIDAVIT OF SUBMITTAL This proposal for the Wage and Benefit Analysis of Non Represented Positions was prepared by Ross J. Ardrey, the president and principal consultant at NW Management Consulting, Inc., is intended to be fully responsive to City of Tukwila's Request for Proposals, and incorporates by reference any and all provisions of the Request for Proposals. Mr. Ardrey will welcome the opportunity to respond to questions, and, if authorized, to assist the City of Tukwila in preparation of project plans and contract provisions as may be required, and to get started on the Wage and Benefit Analysis. Sincerely, Ross J. Ardrey President 1/25/2012 IA,--- —4 R-fif Anaivsis Pa Lye 5