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HomeMy WebLinkAboutResolution - 2013-R0417 - Agreement - Management Advisory Group International Inc.- Study - 11_21_2013Resolution No. 2013-RO417 November 21 2013 Item No. 5.34 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock is hereby authorized and directed to execute for and on behalf of the City of Lubbock, a Service Agreement for Classification and Compensation Study, by and between the City of Lubbock and Management Advisory Group International, Inc., and related documents. Said Agreement is attached hereto and incorporated in this resolution as if fully set forth herein and shall be included in the minutes of the City Council. Passed by the City Council on November 21, 2013 ROBERTSON, MAYOR ATTEST: R ec Garza, City Secretary APPROVED AS TO CONTENT: Quincy Whi Assistant City Manager APPROVED AS TO FORM: Chad Weaver, Assistant City Attorney vw:ccdocs/RES.Agrmt-Management Advisory November 1, 2013 Resolution No. 2013-R0417 City of Lubbock, TX Classification and Compensation Study Service Agreement Contract 11498 This Service Agreement (this "Agreement") is entered into as of the 21st day of November, 2013, ("Effective Date") by and between Management Advisory Group International, Inc., (the Contractor),and the City of Lubbock (the "City'). RECITALS WHEREAS, the City has issued a Request for Proposals 13-11498-TL, Classification and Compensation Study. WHEREAS, the proposal submitted by the Contractor has been selected as the proposal which best meets the needs of the City for this service; and WHEREAS, Contractor desires to perform as an independent contractor to provide classification and compensation study upon terms and conditions maintained in this Agreement; and NOW THEREFORE, for and in consideration of the mutual promises contained herein, the City and Contractor agree as follows: City and Contractor acknowledge the Agreement consists of the following exhibits which are attached hereto and incorporated herein by reference, listed in their order of priority in the event of inconsistent or contradictory provisions: 1. This Agreement 2. Exhibit A — General Requirements 3. Exhibit B — Cost Proposal 4. Exhibit C — Insurance Scope of Work Contractor shall provide the services that are specified in Exhibit A. The Contractor shall comply with all the applicable requirements set forth in Exhibit B, and C attached hereto. Article 1 Services 1.1 Contractor agrees to perform services for the City that are specified under the General Requirements set forth in Exhibit A. The City agrees to pay the amounts stated in Exhibit B, to Contractor for performing services. 1.2 Contractor shall use its commercially reasonable efforts to render Services under this Agreement in a professional and business -like manner and in accordance with the standards and practices recognized in the industry. 1.3 Nonappropriation clause. All funds for payment by the City under this Agreement are subject to the availability of an annual appropriation for this purpose by the City. In the 1.3 Nonappropriation clause. All funds for payment by the City under this Agreement are subject to the availability of an annual appropriation for this purpose by the City. In the event of nonappropriation of funds by the City Council of the City of Lubbock for the goods or services provided under the Agreement, the City will terminate the Agreement, without termination charge or other liability, on the last day of the then -current fiscal year or when the appropriation made for the then -current year for the goods or services covered by this Agreement is spent, whichever event occurs first. If at any time funds are not appropriated for the continuance of this Agreement, cancellation shall be accepted by the contractor on thirty (30) days prior written notice, but failure to give such notice shall be of no effect and the City shall not be obligated under this Agreement beyond the date of termination. Article 2 Miscellaneous. 2.1 This Agreement is made in the State of Texas and shall for all purposes be construed in accordance with the laws of said State, without reference to choice of law provisions. 2.2 This Agreement is performable in, and venue of any action related or pertaining to this Agreement shall lie in, Lubbock, Texas. 2.3 This Agreement and its Exhibits contains the entire agreement between the City and Contractor and supersedes any and all previous agreements, written or oral, between the parties relating to the subject matter hereof. No amendment or modification of the terms of this Agreement shall be binding upon the parties unless reduced to writing and signed by both parties. 2.4 This Agreement may be executed in counterparts, each of which shall be deemed an original. 2.5 In the event any provision of this Agreement is held illegal or invalid, the remaining provisions of this Agreement shall not be affected thereby. 2.6 The waiver of a breach of any provision of this Agreement by any parties or the failure of any parties otherwise to insist upon strict performance of any provision hereof shall not constitute a waiver of any subsequent breach or of any subsequent failure to perform. 2.7 This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, representatives and successors and may be assigned by Contractor or the City to any successor only on the written approval of the other party. 2.8 All claims, disputes, and other matters in question between the Parties arising out of or relating to this Agreement or the breach thereof, shall be formally discussed and negotiated between the Parties for resolution. In the event that the Parties are unable to resolve the claims, disputes, or other matters in question within thirty (30) days of written notification from the aggrieved Party to the other Party, the aggrieved Party shall be free to pursue all remedies available at law or in equity. 2.9 At any time during the term of the contract, or thereafter, the City, or a duly authorized audit representative of the City or the State of Texas, at its expense and at reasonable times, reserves the right to audit Contractor's records and books relevant to all services provided to the City under this Contract. In the event such an audit by the City reveals any errors or overpayments by the City, Contractor shall refund the City the full amount of such overpayments within thirty (30) days of such audit findings, or the City, at its option, reserves the right to deduct such amounts owing the City from any payments due Contractor. 2.10 The City reserves the right to exercise any right or remedy to it by law, contract, equity, or otherwise, including without limitation, the right to seek any and all forms of relief in a court of competent jurisdiction. Further, the City shall not be subject to any arbitration process prior to exercising its unrestricted right to seek judicial remedy. The remedies set forth herein are cumulative and not exclusive, and may be exercised concurrently. To the extent of any conflict between this provision and another provision in, or related to, this document, this provision shall control. IN WITNESS WHEREOF, this Agreement is executed as of the Effective Date. CITY OF LUBBOCK, TX: Glen bertson, Mayor 1 M ST: eb ca Garza, City Secretary APPROVED AS TO CONTENT: Quincy Whi Assistant City Manager APP D AS O FORM: Chad Weaver, Assistant City Attorney CONTRACTOR: Contractor's Signature Donald C. Long Printed Name President Title City of Lubbock, TX RFP 13-11498-TL Classification and Compensation Study II. General Requirements 1 INTENT Exhibit A 1.1 The City of Lubbock (hereinafter called "City") is seeking proposals from interested firms and individuals, (hereinafter called "Proposer") to provide professional assistance in the preparation, implementation, and maintenance of a Classification and Compensation Plan to include updates to job descriptions) and its subsequent presentation and adoption. 1.2 Offerors are invited to submit demonstrated competence and qualifications of their firm for providing these services. 1.3 The information contained within this document is intended to provide interested firms with the requirements and criteria that will be used to make the selection. 2 BACKGROUND INFORMATION 2.1 City of Lubbock has a Council -Manager form of government and is a home rule city. The City provides a full array of services to a population of approximately 229,573. A seven member City Council governs the City of Lubbock. The City Manager is the chief executive officer for the City. The City has slightly more than 2,000 authorized full-time positions. The last comprehensive classification and compensation review was implemented in 2005. This review was completed by The Waters Consulting Group Inc. The goal at that time was to update a previous classification and pay study completed in 1998 by a committee of management employees representing various City departments with the technical assistance of the City's Human Resources department. 2.2 The City's current classification plan has approximately 590 different titled positions (i.e. job descriptions). The City currently uses a point factor job evaluation plan and pay ranges with a width of approximately 65% for the majority of classifications. Broad bands and market pricing are used for executive, department head, information technology, and electric utility positions and any other positions for which the city determines that external equity should be the primary determinant of compensation. Civil service positions consist of sworn police and fire classifications are established by ordinance. Civil service positions account for 700 of the authorized full time positions. 3 SCOPE OF SERVICES The City will determine the various components to be completed within the scope of the study. The costs and time for completion for these project components are to be listed separately in the proposal. The following describes the various project components and tasks that may be necessary to meet the requirements of this Request for Proposal. Tasks expected to be performed include: 3.1 Classification Component a. Prepare up-to-date, clearly defined ADA and EEO compliant classification specifications for all non -civil service and civil service jobs. Distinctions between jobs should be readily understood, while providing broad based, generic classifications, where appropriate. The final class specifications should include job duties, distinguishing characteristics, physical and mental demands, and all minimum qualifications. Q1Purchase\Bid Docs\RFP 13-11498-TL 11 b. Conduct orientation and briefing sessions for employees at all levels to educate them on the goals of the study and the potential outcomes. c. Obtain job -related questionnaires from all employees. d. Conduct interviews and job audits with a representative sample of employees to confirm data provided by questionnaires. e. Allocate all employees included within the scope of the study to an appropriate job classification. f. Submit recommendations for appropriate implementation measures that City staff will need to take. Include proposed policies and administrative guidelines that will need to be in place to administer the system. These policies and administrative guidelines should be very specific in nature and include all aspects of classification. Software should be provided that expedites and simplifies future job specification development and position reclassifications. g. Suggest a maintenance system that will be used to keep the classification system current and equitable. 3.2 Compensation Component a. Conduct a salary survey; identify benchmark classifications in a way that is equitable and fair. b. Develop externally competitive and internally equitable salary recommendations for each classification included within the study. c. Develop new salary range tables, encompassing all non -civil service City jobs. Update civil service pay schedules with step increases based on the attached council resolution. d. Develop an implementation strategy (including costs) and a maintenance strategy for the new salary system including any necessary software. Two implantation strategies need to be submitted for consideration; one that is implemented in a single revision and one that is implemented over a period of two years. e. Provide comprehensive training for key staff members on how to maintain the new compensation system and software. f. Prepare two alternative pay progression structures; 1) performance based, and 2) step/tenure based. g. Identify the appropriateness of other key compensation practices in relation to the City including pay for performance, skill pay, executive compensation, shift differentials, special assignment pay, out of class pay, specialty pay, certification pay, bilingual pay, etc. These recommendations may be pursued at a later date. 3.3 Performance Appraisal Plan a. Propose an objective performance evaluation tool that allows for open communication between employees and management, documents employee performance, and facilitates the awarding of merit increases based on performance. b. Develop a plan for training supervisors and employees on how to use the new performance evaluation tool. QAPurchase\Bid DocsWP I3-11498-TL 12 4 PROPOSAL REQUIREMENTS The classification and compensation system to be recommended as responses to this RFP must adhere to the following basic elements and characteristics: a. The systems must meet all legal requirements, be totally nondiscriminatory and provide for compliance with all pertinent federal, state and local requirements (e.g., ADA, FLSA, EEO/AA, etc.) b. The systems must be easy for management to administer, maintain and defend. c. The systems must easily accommodate organizational change and growth. d. The systems should be based upon sound compensation principles and methods. The systems should provide for new positions to be incorporated into the compensation plan as well as regular adjustments to maintain the plan's competitiveness. 5 INSURANCE REQUIREMENTS The firm selected shall be required to provide and maintain in force insurance in limits no less than stated below. 5.1 General Liability: Contractor's insurance shall contain contractual liability with a combined single limit of a minimum of $500,000 each occurrence and in the aggregate and shall include the following: • Products-Comp/Op AGG • Personal and Adv. Injury Contractual Liability Fire Damage (Any one Fire) Med Exp (Any one Person) 5.2 Professional Liability Insurance: Contractor shall carry Professional Liability Insurance in the Amount of $1,000,000. 5.3 Business Automobile Liability Insurance: Contractor's insurance shall contain a combined single limit of at least $500,000 per occurrence, and include coverage for but not limited to the following: • Any Auto 5.4 Workers' Compensation and Employers Liability Insurance: Contractor shall elect to obtain workers' compensation coverage pursuant to Section 406.002 of the Texas Labor Code. Further, Contractor shall maintain said coverage throughout the term of this Lease and shall comply with all provision of Title 5 of the Texas Labor Code to ensure that the Contractor maintains said coverage. Any termination of workers' compensation insurance coverage by Contractor or any cancellation or non -renewal of workers' compensation insurance coverage for the Contractor shall be a material breach of this contract. The policy must be endorsed to include a waiver of subrogation in favor of the City of Lubbock. QVurchuseWid DocsUtFP 13-11498-TL 13 5.5 The City of Lubbock shall be named as an additional insured on Auto/General Liability on a primary and non-contributory basis, to include products of completed operations endorsements. A waiver of subrogation in favor of the City of Lubbock on all coverages. All copies of the Certificates of Insurance shall reference the RFP or proposal number for which the insurance is being supplied. 5.6 Additional Policy Endorsements: The City shall be entitled, upon request, and without expense, to receive copies of the policies and all endorsements thereto and may make any reasonable request for deletion, revision, or modification of particular policy terms, conditions, limitations, or exclusions (except where policy provisions are established by law or regulation binding upon either of the parties hereto or the underwriter of any of such policies). Upon such request by the City, the Contractor shall exercise reasonable efforts to accomplish such changes in policy coverages, and shall pay the cost thereof. 6 MINIMUM INFORMATION REQUIRED IN PROPOSALS a. When submitting proposals: 1. Provide replies to all requested information. 2. Comply with the outlined scope of services and conditions. 3. State clearly any variances. b. Each proposal should contain: 1. Description of the firm. 2. List of employees to be assigned to the project including their experience and qualifications. 3. At least 5 client references. 4. A complete sample of the proposed service agreement/contract. 5. Details of services to be provided. 7 SELECTION CRITERIA All proposals will be evaluated by a team to include but not be limited to City of Lubbock members, legal counsel, and independent consultant(s). The following criteria will be used to judge and rank submittals a. In addition to cost, the City of Lubbock is looking for firms who can provide a high level of service and whose service provides sound compensation methods and cost projections. b. The agreement will be project based. The opportunity for presentation will be determined. 1. Quality of compensation studies completed — 40% 2. Fixed and variable costs; time proposed to complete— 30% 3. Experience of firm — 10% 4. Prior Municipal experience —10% 5. References — 10% Q Turchese\Bid Docs\RFP 17-11498-TL 14 E.M-991TO011.1AW41,13K%y a. Proposals should provide a straightforward, concise description of the Proposer's capabilities to satisfy the requirements of the RFP. Emphasis should be on completeness, clarity of content, and conveyance of the information requested by the City. b. If the proposal includes any comment over and above the specific information requested in the RFP, it is to be included as a separate appendix to the proposal. c. The proposal must be organized into the following response item sections and submitted in an indexed binder. i. Cover letter addressed to the Honorable Mayor and City Council that states the Proposer's understanding of the services to be provided. Include any additional information believed necessary that is not requested elsewhere in the RFP. ii. A description of the methodology to be used to complete the project to include, but not be limited to, how recommendations will be formulated and commitment of adequate appropriate resources to the project. iii. Proposer's specific expertise in areas pertinent to the project to include a listing and brief description of similar projects completed (with the dates of completion) or in progress and a list of references by name, address, and telephone number for each project listed. d. A brochure of past work, with emphasis on comparable projects. e. List of principal(s) of the Proposer and amount of time that principal(s) will be involved in the project. f. List of other professionals to be used, if applicable, with a record of experience in projects of this nature. Identification of principal(s) and percentage of time the principal(s) will be involved in the project. g. The organizational structure of the employees who will be assigned to this project along with resumes of those individuals. If a joint venture is expected, then provide the organizational structure of the sub -contractor and resumes of those persons who will be involved in the project. h. The Proposer must assure the City that he/she will to the best of his/her knowledge, information and belief, be cognizant of, comply with, and enforce, where applicable and to the extent required, all applicable federal or state statutes and local ordinances including, but not limited to the Davis -Bacon Federal minimum wage requirements. i. Disclosure of any obligations posing a potential conflict of interest, including service on City boards and/or commissions and any current contracts with the City of Lubbock. This would apply to the Proposer as well as consultants subcontracted by the Proposer. j. Offerors are strongly encouraged to explore and implement methods for the utilization of local resources, and to outline how they would address outreach issues in their proposal. It is also the desire of the City that the City of Lubbock program serve, as much as practicable, to stimulate growth in all sectors of the local business community. Describe how your firm would facilitate this process, and provide any relevant information about similar efforts on previous projects. k. Any material that the proponent wishes to submit and which is not specifically requested in the above categories. Q Turchaw\Bid Docs\RFP 13-11498-TL 15 Exhibit B SECTION 3.0 METHODS AND PROCEDURES Management Advisory Group, Inc. 2013 Section 3.0 - Methods and Procedures Background The City of Lubbock, TX seeks to conduct a comprehensive compensation and classification analysis to provide professional assistance in the preparation, implementation, and maintenance of a Classification and Compensation Plan to Include updates to job descriptions) and its subsequent presentation and adoption. The City has slightly more than 2,000 authorized full-time positions. The City's current classification plan has approximately 590 different titled positions (i.e. job descriptions). The City currently uses a point factor job evaluation plan and pay ranges with a width of approximately 65% for the majority of classifications. Broad bands and market pricing are used for executive, department head, Information technology, and electric utility positions and any other positions for which the city determines that external equity should be the primary determinant of compensation. Civil service positions consist of sworn police and fire classifications are established by ordinance. Civil service positions account for 700 of the authorized full time positions. Scope of Services: Classification Component a. MAG will prepare up-to-date, clearly defined ADA and EEO compliant Uassu1cauun specmcations Tor all non -civil service and civil service lobs. I he tinal -I iss specifications will include job duties, distinguishing characteristics, physical and mental demands, and all minlm,jrn qu?lifli,allons. b. MAG will conduct orientation and briefing sessions for employees at all levels to educate them on the goals of the study and the potential outcomes. c. MAG will obtain job -related questionnaires from all employees. d. MAG will conduct Interviews and job audits with a representative sample of employees to confirm data provided by questionnaires. e. MAG will allocate all employees Included within the scope of the study to an appropriate job classification. f. MAG will submit recommendations for appropriate implementation measures that City staff will need to take, and include proposed policies and administrative guidelines that will need to be in place to administer the system. These policies and administrative guidelines will be very specific In nature and Include all aspects of classification. Software will be provided that expedites and simplifies future job specification development and position reclassifications. g. MAG will suggest a maintenance system that will be used to keep the classification system current and equitable. Management Advisory Group International, Inc. 2013 3-1 Compensation Component a. MAG will conduct a salary survey; Identify benchmark classifications in a way that is equitable and fair. b. MAG will develop externally competitive and Internally equitable salary recommendations for each classification Included within the study. c. MAG will develop new salary range tables, encompassing all non -civil service City jobs, and update civil service pay schedules with step increases based on Council resolution. d. MAG will develop an Implementation strategy (Including costs) and a maintenance strategy for the new salary system Including software. Two implementation strategies will be submitted for consideration; one that is implemented in a single revision and one that is implemented over a period of two years. e. MAG will provide comprehensive training for key staff members on how to maintain the new compensation system and software. f. MAG will prepare two alternative pay progression structures; 1) performance based, and 2) step/tenure based. g. MAG will identify the appropriateness of other key compensation practices In relation to the City including pay for performance, skill pay, executive r:-moensatinn, shift differentials, snPnial asGinnment pav oiit of rless nm' specialty pay, cortification pay, bilingual pay, etc. These recommendations may be pursued at a later date. Performance Appraisal Plan a. MAG will propose an objective performance evaluation tool that allows for open communication between employees and management, documents employee performance, and facilitates the awarding of merit increases based on performance. b. MAG will develop a plan for training supervisors and employees on how to use the new performance evaluation tool. � .: ► _ � it it Review background materials including organizational charts, budget information related to the existing classification and compensation plan, and other related information. This is a standard practice under MAG's methodology. 2. Meet with Department Heads and other supervisory staff to explain the study, the process to be used, and potential outcomes. Management Advisory Group International, Inc. 2013 3-2 This is a standard practice under MAG's methodology as part of excellent communications. We seek to promote full understanding of the process and expectations by top management personnel. We have found that great communications up front are critical to full understanding at all levels and positive outcomes. MAG will also provide Administrative Issues Forms (electronically in Word) that will enable Department Heads and supervisors to specify any classification and compensation concerns that may exist In their departments. These are very helpful as the study progresses, so that MAG evaluators can focus on Issues Important to the City. Conduct on -site orientation and briefing sessions for all employees covered within the scope of the study to explain the methodology of the project and the job analysis questionnaire. MAG uses a comprehensive PowerPoint presentation to conduct orientation sessions. It Is customized to the City's Interests and focuses on explaining study goals and objectives, the overall methodology, and the role of each employee in the process. MAG will review the Job Analysis Questionnaire, how to complete the questionnaire, and answer any questions employees may have. 4. Provide a job analysis questionnaire to be used as part of the position review process. MAG has developed an online Job Analysis Questionnaire specifically for the conduct of classification and compensation studies for local governments. It has been completed online by many thousands of municipal employees at all :_ _' the organization. Thz c�...,..:r_ _ ' ;1L _..: y_.. ,ec " ►A_ job evaluation, classification, and future development of position specifications. 5. Distribute and oversee the completion of the job analysis questionnaire by all employees covered within the scope of the study. MAG has developed a progressive online Job Analysis Questionnaire for completion by employees. The process allows for supervisory and management review and comment to ensure validity. MAG is also able to produce update reports to the City Indicating who has completed the JAG and whether there has been supervisory review. This confirms the extent of participation and feedback on reviews. 6. Review and analyze the completed questionnaires and management review for all employees covered within the scope of the study. This is a standard practice under MAG's methodology. 7. Recommend and develop new classes as appropriate; recommend deletion of outdated or unnecessary classes. This Is a standard practice under MAG's methodology. Using the software, MAG Is able to develop new classes easily to reflect changes In work and organization. MAG makes every effort to consolidate classes to ensure ease of management by HR. Employees are allocated to new and existing titles as appropriate. Management Advisory Group International. Inc. 2013 3-3 1. Review of current compensation practices and related issues. This Is a standard practice under MAG's methodology. We normally review compensation practices with HR as well as Department Heads, as users. 2. Identify and recommend appropriate salary survey labor market and benchmark classes that provide relevant/meaningful comparative salary data, which can be utilized In creating a competitive pay plan. Benchmark classifications must be a good representation of an occupational group or profession. This Is a standard practice under MAG's methodology. MAG will develop a salary survey, with input from the City on benchmarks and targets to be used. 3. Conduct market salary survey of public sector organizations comparable to the City In size, population, economic climate, proximity to major cities, etc., which are selected in consultation with the City. The survey will compare base annual salary for each benchmark Included in the study by minimum, midpoint, and maximum. This is a standard practice under MAG's methodology. 4. Utilizing the market survey results, comparable job descriptions, and other dar^ c=- : ;^atlon plan design and salary schedule to correspond to the classification plan and customized to reflect the City's pay policy and compensation philosophy, This is a standard practice under MAG's methodology. Each of these requests is possible using the compensation software to produce various reports and alternative implementation scenarios. Management Advisory Group International, Inc. 2013 3-4 MAG has developed a project flowchart illustrating the proposed project methodology. PROPOSED PROJECT METHODOLOGY FLOWCHART Comcensatlon and Classification Study Process i' HR and DH Ahnifw \ `\ •e, Mulm Salary survey r r JAQ praess Survey Dm Aaalym 16 Dua Revier ` r Proposed Salary Schedules Develoo PM on Web Individual Salary Adjustment Calculations Gust Calculations Review and Finalize Performance Criteria Implementation Options/Costing Training on Performance Management Advisory Group International, Inc. 2013 3-5 Project Initiation Initial Upon agreement to proceed, MAG's study team will meet with Meetings management, HR and departmental staff, and other appropriate personnel to request background information, review the objectives of the study, and ascertain concerns and issues relevant to local preference with respect to peer and competitive employers. MAG's representatives will facilitate discussions of the strengths and limitations of current human resource management systems and the appropriate methodologies for developing and incorporating the City's philosophies, vision, preferences, and needs into the classification and compensation system to be developed. Compensation At the outset of the Structure study MAG Analysis representatives will meet with HR and Department Heads to communicate goals and objectives. Supervisors will also be provided with an "Administrative Issues" form, which will guide them in providing feedback on problem areas or concerns and to identify positions in need of review. vve will uiscuss: Data Required > Current Employee & Payroll Data > Organization Charts > Pay and Classification Plan > Salary Schedules > Personnel Policies > The City's positive efforts in conducting a compensation study are communicated at the outset of the study, thereby gaining the support and cooperation necessary to conduct a successful study; > An overview of the study goals and objectives, thereby ensuring staff are apprised of the City's intentions to maintain an Internally and externally competitive salary system; > The study approach and critical aspects of the project so staff is made aware of and understands the project's important milestones and schedule, as well as their contribution to adhering to established timelines; and, > An opportunity to ask general questions pertaining to the project so that concerns can be addressed at the outset of the study. MAG's unique software system, Classification Manger®, also retains the employees' "working title" thus reducing any resistance to migrating from a wider number of 'Working titles" to a more streamlined number of classification titles. Simplification increases understanding and improves the efficiency of administering the plan. In addition to consolidating positions, MAG groups positions into occupational categories. Management Advisory Group International, Inc. 2013 3-6 External Review of Position Classifications Upon agreement to proceed with the study, we develop the market salary survey instrument, provide the survey Instrument and target list to the City for review, comment, and suggestions, and contact target organizations to solicit survey participation. The survey instrument will be customized to meet the needs of the City. MAG prefers to conduct salary surveys on-line via our custom Internet survey, but alternative formats (hard copy, email & facsimile) are also available. For your study, MAG will use the Identified sources of data and manage the input directly into the Market Manager software program. Survey Instrument Content Each survey instrument Is pre -populated with the following information for review by the target organization: ■ City's job class title. ■ A brief description of the job class. ■ Required qualifications of the job class. We will then enter the following survey data into Market Manager& • The respondents matching title and degree of match; ■ Minimum, mid -point and maximum pay ranges; rotes regarding any :lifferencrus betwair�.. J City's joy class and the respondent's equivalent job class. CITY OF LUBBOCK SAMPLE ONLINE SALARY SURVEY a M F .ptr Irr CIr Aw.d � LI•.n�Ql�ll•�+.OtidMllr�d.Y3.... r+a....w.D•d/. ..,-•—.���.•��—._^ T_— - ®V •• p.�— ' p. mn. o. ivL.d.. m w••� •� • 2 nw. • o..r. • ®arw • da•r•.h- - Orw I—SelECIcled Benchmark - �.-1 lasslfications A salary survey for Valued Client r q.tlMd.rl S.'.q owd..V... C....h GMF.Fn.wlrw. nH. r N.j..r wr T.. Ne Oenw Ir u S. ce... P"" OE.M srcr..ption U. Ascit-d.cn..wt — _ ® wn Brief Class DesCficatio ti Qualifications 1 Ydr.Yl... a.t, .rarvaf ..l.l �YYW�--: ^.�r.LY�.[! Ywl tYvfe.l YYrle.o Yn/Y r ..w•. wtl ..F_19 pr.[i.W a[. rtltq. F..L.r .r.tuy IMF...........wFly. ..�..t/..IYtL.Y �. YFl/m.1. F.tM[tl.. YLq .r YH ..Yt.. .w.l. In..1.Y Enter Salary/Pay .or• yY.Yt/awt�.dpl.yF. �tYIR.. W .lY.tt... .. CYttgt FI.f IN F.IMY Information .q FnN.•R Ia O O O P.1 N.Mp l.w Own a IlwrtHs tY. ra.Y .�E Ttt1. Y.. Dr. r .rrnreY, .w.d.em.r.n.y. rr. ,6r .r.Mn to6q U. N.n r Ft..or dnw Wt.ytr.w. A.MsF li.^ rr AM7ME. IM302711 OWL i.h�Ypie sy • � F�II.I Management Advisory Group International, Inc. 2013 3-7 At the close of the survey phase, we analyze the received survey response data and compile market study results for the City's review, evaluation, and comment. Once final results are calculated, we submit the completed market report and recommendations. CITY OF LUBBOCK SAMPLE SURVEY RESULTS Sulat},- Sun•ey Results Emergency Commmlradaur omre• ,�. baW nplgtuNCiltNturtNMtnOtrtmtlrmotgnb/YhPAantPt On{MR sOmta4pollnt•ItpAOnt nolel wn" nrnders loin o Poll" RIGNtat6t ptntmdlls brkt.n narsemtr{tnq tnlpmvYn mt Benchmark tnOtl hllomu00M1 trtntltn ttlt to poPq p010mtl and tr0nrhrtplukrpellu tmtn.nty tqupm.ntta tNR svptnt G rth RvroCltt vthleln kr pntnl Wormtom tnd oottNrt Rom teltppt Cr othu roach and rtP0ttu0 lnrormttuntnnrm00t0. optltttr - Classification Ctb qtr %:t 111 trt 11 In ndlo.1*"l utlom, ..IN ton tr t rin01r0 NO tWrywAOth WaM01t. la .lnroMtOgo, tilts 0n0 t{Intt talc wrezel 4tntr prtu0010 W the p101M Ctmny NitIonr Cenvdulm Survey Respondent(s) al I = 1 +� a, Results "`` MMm`°i° ° L) Comparison �.ve •--.--___.. dun � ate. ""L„ .. _ �— ......__� - "" 1.1>m sure an { Momm: aW mAnl MOM e new. atsl -Ulm sec } The market report includes: ➢ Overall raw data and response from the survey participants and our analyses of the received data; ➢ Our recommendations for use of the received data in the development of the subsequent pay plan(s) and salary schedule recommendations; and ➢ Discussion regarding any observations by analysis staff during the market survey that are deemed applicable to the overall objectives of the study. Internal Equity We have developed and utilize a WindowsTM based system, Classification Managero, an evaluation system that integrates current market data through Linear Regression Modeling. When the City sees the efficiency and effectiveness of the software tool developed by MAG specifically to accomplish compensation and classification projects, you will see that there is no true comparison on the market by any of our competitors. Management Advisory Group International, Inc. 2013 3-8 Your project will include the completion of job analysis questionnaires and use of the software for point factor job analysis. The software is used for the integration of current market data and employee data to produce informative, Innovative, and budget projection reports. CITY OF LUBBOCK SAMPLE ANALYSIS SCREEN EMPLOYEE LOOKUP MAKES IT EASY TO: 5410911 Pau Wa 40.000 ►0019 Y►N MI ► 4 ►IYpwY Job Class 1. y►0.w I.+..a..+�Q.�'�p► - Irl. 1>fml>�J� r „ 0.6 1.1 1 Psi Ho ►.Mnrlt r ; b..a r rent, Ir �� r-W Locate and Log Respondents Build Current Supervisory Relallonships oY/n.Yn 600imist on I&M slim" Enter Employee's Y.p...lYnlnr.0 GI.IIYWIwI. Oeacriplion of the job Sell -Validation of the Job Responsibilities �►� � r �7 • h1111Ae1.Yp • Ann►tll.MV ' aY1.1 • u.e.. • r� , ,,,,I..wItlllnmin.ulY,I1,IrYIby, < IMIYgIl11,IN.11iN.lI.Y.I bI b.I1N Irlun6el M.rLYen.p pllH.a.pN111YL I/MYIWNIYo,.Ir.nLMN� I.YNw SIR w.►.YrenIMYNYgYY►.I.Po- r�Y.11 dhs&. Owing 1 br..Y1.1.1 1Nlrlr Y brllmy ;vW% rpYa►Innitl 11►IYr b..11 . I •�'� •4•'M' - Job Class Tasks YN.r111..11Y I.ri 11 br.t I.I tYYp.1I u f�IgIY. Ytlp I YM VNI•rY►N.MI ! bI.YW1NIIMI t Irry ►1 O.IIII � .Ir.1 Y.I.11 tl11Ylllr ltl.IMI 1 LYI ►.I.Y 17 Y Add Explanatory Notations / I J Y Nr.,. .q I.r. r. ►rd� Same Criteria for All Employees Review and Evaluation of Salary Structure In developing an effective salary and classification structure, the overriding goal is to establish a system that is Internally equitable and externally competitive. To ensure Internal equity, each position must be reviewed by evaluating effort, skill, responsibility, and working conditions in accordance with the Equal Pay Act of 1963. External competitiveness must be achieved through the analysis of current competing labor market data. The pay plan(s) should be evaluated for vertical and horizontal consistency according to these criteria. Equal pay for equal work and equal pay for comparable work must be established within the pay structure to ensure internal equity. Salary Plan Design At the outset and during the course of the study, we discuss specific pay plan design with the City so as to ascertain goals and objectives. Consequently, the most appropriate plan design is determined and applied to the City's proposed pay plan. During the market analysis and classification analysis process, the following goals are accomplished: Management Advisory Group International, Inc. 2013 3-9 1. Economic anomalies in the marketplace are identified and addressed. 2. Internal classification/Jobs are confirmed, thereby establishing an Internally equitable organizational hierarchy. 3. External market data Is integrated into the pay structure, thereby establishing an externally competitive pay plan. 4. The feasibility of various pay plan designs are evaluated, and pay ranges are established for each job, to include minimum, midpoint, and maximum range values. 5. All study group employees are allocated to the recommended pay plan, to include pay range, job title, and (where applicable) any recommended salary adjustments. Statistical Details & Report of Study Conclusions Because we tailor plans to the specific needs of each organization, several cost analyses for implementing proposed study recommendations can be considered. The cost by employee to bring staff up to the proposed pay range minimums is the most conservative option and is always provided. Other options, such as length of time in classification and performance histories, can also be used as criteria to assign employees to the proposed plan. Once an implementation strategy is determined, we initiate the final reporting phase of the project and provide the City with a proposed pay and classification plan report that presents: Revised pay rates and salary schedules for all classifications in the scope of the study, > Study findings, statistical detail reports, and detailed financial impact scenarios based on identified goals and objectives of the City, > Implementation options and strategies regarding maintenance and costs of the proposed elements of the plan, > Recommendations for pay administration practices for all issues and elements identified as useful to during the course of study, > Recommendations regarding segregation of employees with respect to entry level compression or other agreed upon criteria (if applicable). Management Advisory Group International, Inc. 2013 3-10 CITY OF LUBBOCK SAMPLE IMPLEMENTATION REPORT fun fe Data with40 arnplayeas IniplemorbUon Report Propad PvyRm e Afi11MUMECDgtCods 031M) Mna !0 Ita1e 1.III Y Ulf/ IeP O u0Y rW IYt1 10r rY b na Rapol/d a1 1 t a p,l ee a Ilro ren IrY11 Mill f A r r NY IOLICt:E1lOd11R ®S = arm a 1 S 1 03Q/1101 md` xel ilU I,ue 0 0 RmremC�G� IOIKl r.FaOelar In9 9, 1311t IfAYI a171 a 0 03tt/®I It^3 '$371 s o 0 o UNter 1011a6Ur SPe:411'CUMCLOKaYL9► =30 3i&, 31,a31 A01601 I 1 0300m0 M: 31•NI B1 0 0 "Mco.u1te01A LPB;PLSNUlR00PErMon US30 WI/ Ifs: Zvi e 0 03aGW 01� 3f.3er 0 0 0 0091rIs,iDWIICIL' gunumeq fer 6palastttFell= CtrrentPayroll 166,378,709 ■Poldoes f M7 Hatt Adjustment W27,674 hQurineritToMMmum $593,L77 ■AdimtdThhUmm is Adju 1towntTo IN~ 866,126 IF MI 1M To Hooker b5 AdjustmentAbelre Market $O +Alpetd AYua Meat 0 AdjuatmardTe Step $0 +Adpatad To Sq 0 MeaAauatmert >)D r Mafitedjlaallm is 0 Donut Adjustment i0 ■BVVwsAdiYs%n"h 0 Proposed Payroll 656.164,662 Summary for Sample Oats w9h 40,000 employees Cunvadpaynn $1,242.162,146 +Patitoes 4OX3 Flats Adjustment $26,257,593 AdivatnertTo:Inimum t57,450,100 +AgoomaTsaaalnun ss,7gi MjuatraeItToarlot $63,903,944 aposewl Teeitket 23.40 Amurbnord.Above Martmt 00 +A4atd Aatl morbel 0 AdjurbnertTe Stoop so +A4a000d Tog" 0 MerttAdjuttmad f0 +MedtMjaaeletn 0 BerwAd)urtment $98,688 +BaaurAflastnelrs 11 Proposed Pryrall 51,461,On,380 n lay,/paa>s II•I>9 IY 0Ipn10 1 Iq:33l 0=0 All implementation recommendations and other reports such as the above sample can be exported Into multiple software formats, including Microsoft Excel, Microsoft Word, Microsoft Access and PDF formats. All other project related reports/documentation are provided in the client's in -use formats, e.g., Microsoft Word or Excel. These files are provided electronically and in hard copy. Salary Plan Administration, Maintenance, and Training We will provide and install a licensed version of the automated Classification Managers system. The system will contain the completed study data and pay plan, and HR staff will receive comprehensive training in the use, administration, and automated maintenance of the plan. The system includes comprehensive user-friendly documentation manuals with step-by-step procedures for the on -going administration of the plan. We ensure you are provided with the tools and training necessary to administer/maintain the plan. MAG will train HR staff in proper procedures and methods to ensure the plan remains in line with market indicators and organizational changes and/or growth. Thus, your plan will remain fair and competitive with the competing labor market. We remain available as a resource during the transition in the administration of the plan. Management Advisory Group International, Inc. 2013 3-11 Performance ManagerO The Performance Manager@ job evaluation form is specifically designed to support the MAG's compensation and classification system Integrated software suite and uses the same database, web -enabled. It is accessible from anywhere employees and supervisors have access to the world wide web. Because MAG is a consulting firm and not primarily a software vendor, the PM© Job Evaluation and Performance Management System, can be modified, if necessary to fit the unique and individual needs of the client organization. Job Class -Specific Performance Indicators: The first section of the evaluation screen shows the five core tasks assigned to all positions of the evaluator. Ali pusmons wim in the unit have live core tasks already assigned by MAG for each Job Class. The evaluator can use the core tasks as the complete basis for this part of the evaluation or can add to up to five more auxiliary tasks each incumbent. This allows each evaluation to be customized right down to the individual incumbent level. If an incumbent is going to be evaluated on auxiliary tasks, each of the additional tasks should be discussed with the incumbent ahead of the time set for the evaluation so that the employee is aware of those tasks and responsibilities that will be evaluated. Management Advisory Group International, Inc. 2013 3.12 Job -Specific Maasures Segment The G'1at have been assigned to a Job class appear here. Since there can be up to ten, and the number can vary with each Job class (and perhaps with each person), a scroll bar will appear to allow all tasks to be reviewed. Irt this section you may edit, add and delete auxiliary tasks. Evaluating Core Tasks Core tasks should be evaluated for each employee in his or her assigned class. Adding a task To add a new task, scroll to the bottom of this Job -Specific Measures section and type the required information into the blank fields, Any entry made becomes a new task and is ratable. Management Advisory Group International, Inc. 2013 3-13 Organization -Wide Performance Indicators Organization -wide performance indicators cover four areas of work performance: Work Quality Aspects — three separate evaluation criteria. Productivity Aspects — ten separate evaluation criteria. Personal Skills/Attributes — nine separate evaluation criteria Customer Service and Communications — five separate evaluation criteria R � w. trt-' ••.r. "n w, h.u: • y.+.f I.r�. Nww fw lrbd vI. ._...._ I faw6YM vn.D. Ca.e M N'IDY Now M6a7 udxa I.r N... L. H.a E. &a. �.. r- - - ♦ I baa. f Ike. .wre 6. tw Cm561 Lm."I m !Dp 1 Y..0 • • • "y: •'� brC.�ab.raa bR Yrle.sl � � .e2• .afwtrsae� b In. Il.r e.norono mee Pa/Dara t�D.a .».tee. .r61Ye..rbllDlfAYD.GIOMCM mwea= wnD Da. m / YPbN4R.ODyf urrDrrnnl Y O 1 w. 19ls b�IP•.efirq rPO.cl.e.� . {�`'',`�`� 6.r. m—�.�ia<—✓ � I. rrgorb.en�wr+ �.—_ • L . �•�v e•+ 1 IOIN , ..br.b.1. n.0... .Yw..Ik..r NM •. 4 - 1 Ib Y.DM1i. MDOn. YM I�DM t � � i 1 OIMW RI Du10Mu m rrb� n.n. n..o'-'D..ndn■In Dr.O � DDooaD.mlGramaesbw ar - T"" Drl bn. OD 41 M RDID INID.I. DmIWWC? . J The organization -wide performance indicators are fixed and cannot be edited at the Incumbent level. Management Advisory Group International, Inc. 2013 3-14 Goals and Comments Section The Goals and Comments Section allows the evaluator to make an overall comment regarding the performance during the period of time covered by the current evaluation. For each employee, performance development and Improvement is a critical goal. The evaluator should plan to discuss with the employee those goals and objectives that will become a part of the next evaluation cycle. �..._ i1_ ♦ IOM�1W 1 If the evaluator has identified areas of performance that needs improvement, this is an opportunity to identify for the employee specific goals and performance accomplishments that will provide a full proficiency (Meets Requirements), for the next evaluation cycle. Management Advisory Group International, Inc. 2013 3-15 There is a place on the form for the evaluator to record the employee's comments regarding the evaluation. It is not necessary for the employee to agree with the evaluator with respect to the evaluations given. If the employee does not agree with aspects of the evaluation, it is the responsibility of the evaluator to faithfully record the employee's comments in the space provided on the form. The evaluator is allowed an additional comment area for "follow-up". By virtue of clicking finished, the evaluator acknowledges that they have discussed the evaluation with the employee and have provided the employee an opportunity to discuss the evaluation and accurately recorded any comments from the employee in the "Employee Comments" section. At that point, when the evaluation is locked by clicking "finished", there can be no further editing of the evaluation. The evaluator must print out a copy of the completed evaluation for the employee and both evaluator and employee must sign the completed copy and this copy provided to the employee. vv�, 16 Ngi dy recommend that ilia OigL ni..uJu,-► ; etain a paver zupy ui the completed copy of the evaluation form, signed by both parties, as a back-up record at the individual department !,314, Scoring the Evaluation Management Advisory Group International, Inc. 2013 3-16 �d 8' a.y . www .r.W"" "a* 1sa r'1..4 PL v a -+Ire. .�s. C~ rdwr ado. I'm Vertical c.....n UAW— rvNN"r .rnm . .e« 00".r6 m as 7 awo ant .riN.Cl' rr rw.a.eN.a.aano r..sw.r.rallme.N`.onnwol a. r� DYrI.1.N1'.sO. • rr �min eiar t3�. • � g DWN1.13 Nna.N. 1N911 F. CNACN"Cwkb Joan" Vertical Scroll Bars xrcrNtw�r.'r'.I.viwl®'. _~_J' N�.I.r1.IW. � f 1 .w.mMq.N.nNNI"/ga 1 � � Ir , '• uNnwr ranaNa'a IYYY,Ir..l �} 1 Click the appropriate circle to Tate Whenever all of the questions in any section of an evaluation form cannot be displayed at once, a vertical scroll bar appears. To be certain that all evaluation measures are rated, be certain to move the scroll bars up and down whenever they are displayed. Major Segments of the Evaluation Forms There are three major divisions in the evaluation forms. These are the Job -Specific Performance Measures division, the Organization -wide Performance Measures division, and the Comments and Development division. Only the Job -Specific and the Organization -wide sections of the form are scored. Scoring Methodology In order to enter a score for any performance measure displayed in the window, simply click the mouse pointer in the circle of the appropriate score. To correct an error, click the correct circle. Management Advisory Group International, Inc. 2013 3-17 The scoring uses a five point Likert-like Scale and each of the five categories have associated general criteria to assist the rater in determining the appropriate rating level for the employee being evaluated. Although there are five criteria, you will note that there are nine possible choices. "Unacceptable" and "Outstanding" behavior have only one possible evaluation choice. Supporting comments are required by the rater is an "Unacceptable" or "Outstanding" rating is given. There are two scoring choices for "Needs Improvement" and "Exceeds Requirements". This assists the rater is selecting an appropriate level without a "forced choice". There are three scoring choices for "Meets Requirements", which allows the rater to fine tune this full proficiency selection. Understanding the Scoring There is an understandable tendency for all employees to see themselves as being "outstanding" performers and to feel disappointed with an "average" score. Most organizations have a normal distribution of talent — a limited number, say one or two, of high potential performers, a limited number of underperformers, and a thick middle of employees who get the day-to-day work done. In well -managed organizations, there are clear feedback mechanisms to ensure that the bottom of the talent pack gets managed out efficiently and objectively. On the other end of the spectrum, better organizations manage the top -end of thelr talent pool, providing mentors to groom this group of next -generation leaders and compensating them differentially in recognition of their superior performance. It is the goal of any solid performance management system to not only recognize the top performers, but to provide mentoring and guidance for the solid middle. (Of course, having a performance management system also allows an organization to document poor performance and provide a means for either setting goals for improvement or for terminating the under performer.) Management Advisory Group International, Inc. 2013 3-18 The solid middle is the backbone of any successful organization and is generally recognized as meeting all of the requirements of the assigned work. In this scoring system, that "Meets Requirement" segment of the scoring system recognizes full proficiency in the position. The "Meets Requirements" is not the "half -good" performer, but is the desired state of performance for the majority of employees. This is the "Gold Standard" for performance and it is the very first task of the leadership of the organization to effectively convey to employees that meeting all requirements of the job will result in their being recognized as fully proficient. The distribution system for financial reward is heavily calibrated toward rewarding that employee who is fully proficient; providing additional financial reward for truly outstanding performance, and allowing those who do not meet an overall score of proficient, to retain the job, at least through one additional "special evaluation" cycle. A "special evaluation" cycle is typically not more than 3 months and can be as little as a month. City Staff Responsibilities MAG, in ail of its studies, expects to produce all products in a turnkey fashion, performing all necessary technical and professional work. Staff will be expected to assist MAG's team only in scheduling meetings, transferring data collected for the study, reviewing draft questionnaires, survey Instruments, survey target lists, and reports, and providing Input Into philosophical Issues pertaining to the development of a human resource classification and compensation system to meet the needs and preferences of the City. MAG will request that the City provide at the outset of the study a database of current payroll information for positions to be included in the study. It Is important that these data are supplied in the format required for manipulation by MAG's analysts. This data will be necessary to determine costs to Implement the newly developed pay plan(s). All records and databases are kept strictly confidential, and are returned to or maintained upon project completion. Project Work Plan MAG has developed a proposed work -plan and project timeline In order to accomplish the scope of services described above. Management Advisory Group International, Inc. 2013 3-19 CITY OF LUBBOCK PROJECT PHASES & WORKPLAN In order to meet the project's timeline, some of the proposed project activities and tasks Indicated below will occur simultaneously. Phase I: Project Initiation Objective: To develop a project plan acceptable to all parties, gather pertinent project related data, finalize contractual negotiations, and establish a timeline for project activities and deliverables. Activities: ■ Meet with HR and departmental staff to discuss the projects goals and objectives, and to coordinate on -site activities. ■ Execute Project Contract. • Gather required project data/information, such as current class descriptions, current pay plan, administration policies and procedures, and organization charts. • Gather employee information in required database format. ■ Establ;sh a mutually agreed -upon project work plan, time lines, deliverables, and monitoring procedures that will lead to the successful accomplishment of all project objectives. Deliverable(s): ■ Finalized Project Work Plan. ■ Project Contract. Phase I/: Development of Compensation Study Survey Instrument Objective: To develop a salary/compensation survey instrument to gather compensation data from survey targets, establish a list of classifications for inclusion In the survey, and define target respondent organizations/published surveys. Activities: ■ Select appropriate market survey target employers for selected positions that offer comparable employment opportunities. Management Advisory Group International, Inc. 2013 3-20 ■ Develop draft market salary survey instrument to gather compensation data. ■ Review Draft Survey with the Project Manager; revise as necessary and appropriate. ■ Develop Final Salary Survey Instrument. Deliverable(s): ■ Market Survey Targets and Classifications. ■ Survey Instrument. Phase 111: Conduct Compensation Study Survey Objective: To conduct a salary/compensation survey of included benchmark classifications. Activities: ■ Review completed JAO's. ■ Evaluate each job class according to key criteria. • Make asmionrnante inH ?llncations ■ Develop pay structure. Conduct survey via internet, on -site visits, telephone, published data, and e- mail. • Review/clean collected compensation data and compare to current data. • Develop market compensation summary by classification. Deliverab/e(s): ■ Classification Reviews ■ Survey Responses. Phase 1V: Analyze Compensation Study Survey Date Objective: To gather, compile and analyze salary/compensation data in order to develop a proposed compensation plan. Activities: ■ Review and analyze market compensation data; compare to current data. Management Advisory Group International, Inc, 2013 3.21 • Recommend any needed compensation adjustments to the current system. ■ Create a salary design that meets the varying needs of different groups of employees. • Adjust the compensation architecture as needed to ensure that both the current and future needs are met. ■ Provide for internal executive/administrative review. Dellverab/e(s): ■ Draft Salary Survey Results. Phase V. Develop Revised Pay Plan, Compare and Consolidate Job Titles, Prepare Job Descriptions and Performance Key Criteria Objective: To develop a revised pay and classification plan. Activities: • Conduct analysis and evaluate the structure of the current classification plan(s) in terms of: 1. supportinn the overall goals and objectives; 2. its ability to provide compensation comparability between and among various groups and classes of positions; 3. its ability to provide a meaningful salary level that not only recognizes the external market, but also recognizes credentials, certifications and experience (length of service); 4. developing an initial set of recommended changes in the structure of the current classification system. 5. Combine and consolidate job titles to significantly streamline the joblclass system. 6. Prepare new/revised job/class descriptions. 7. Jointly Identify key tasks for each job/class for inclusion in Performance Manager© ■ Review recommended changes with the Project Manager and appropriate management staff and make appropriate revisions. • Develop revised pay plan(s). • Develop guidelines for maintaining the classification system. ■ Provide for Internal review. Management Advisory Group International, Inc. 2013 3-22 Deliverab/e(s): ■ Revised Grade Order List & Pay Plan(s). ■ Reclassification recommendations (if applicable). 0 Streamlined job/class structure and titling ■ Preparation of key tasks for each title for the PM© software system Phase VI: Develop & Submit Draft Project Report Objective: To develop a draft report based on previous study activities and tasks. Activities: ■ Integrate project data and deliverables from previous project tasks Into a draft report for internal review. ■ Provlde draft project findings to management for technical review. Dellverable(s): e Draft Report. Phase Vll: Develop & Submit Final Project Report Objective: To develop a final report of project results, findings and recommendations. Activities: Revise draft report as necessary and appropriate based on technical review, database additions/update and administrative review; develop and deliver final report. Management Advisory Group International, Inc. 2013 3-23 ■ Present project findings to administration. ■ Provide all study documentation. Deliverable(s): ■ Final Report. Phase Vlll: Conduct Software Training & Technology Transfer Objective: To provide the results of the project, software system, and training for HR staff. Activities: ■ Provide for technology transfer of project related data and materials. ■ Conduct software and plan training for selected HR personnel. Deliverable(s): ■ MAG's Classification Manager® software. ■ C lascificatlan Mana_getO Trainino/User Manual. ■ Training seminar for selected HR staff an Classification Managert software, plan polices, and guidelines for maintenance. ■ Two 3 hour Training seminars for supervisors staff on Classification Manager® software, plan polices, and guidelines for maintenance. Provide PowerPoint training materials and electronic copies of manuals for the continued use by the City. Project Timeline Management Advisory Group's (MAG) ability to adhere to defined timetables will be to some extent dependent on timely action by management and staff in providing necessary data, determining philosophical approaches to be taken, and the acceptance or need for revisions to draft instruments or study products. A five month timeline is anticipated. Management Advisory Group International, Inc. 2013 3-24 SECTION 4.0 WORK SCHEDULE Management Advisory Group, Inc. 2013 City of Lubbock, Texas ID Tack Nam 1 'Project Planning and lnitbdon 2 Develop Compenselion Survey and Inetrumenl L- 3 Conduct Compensation Survey 4 Conduct Intervlawe Review Compensation Data and Conduct Job Malysle i 'Develop Develop and Submit Dnrn Project Report and Submit FInal Report Mesdngs and Tachnology Transfer Management Advisory Group International, Inc. 2013 Major Project Activities & Timeline 1 14 tl W TM. PTTMFT 'jMF lr W FT g 1 a!] 1214 1L21 124 e'er' = 1L7J) IX23 UEZZZE7, —v-4— 1 74 1127 7/17 2/17I—,4, - 1'10 L2a SECTION 5.0 COST PROPOSAL Management Advisory Group, Inc. 2013 Section 5.0 - Proposed Cost MAG has developed a project budget for the City of Lubbock based on the scope of services. MAG is pleased to offer the City the scope of services as described herein for the lump sum fee of $84,475. Hourly rates for services beyond the scope would be $125 for professional staff, and $45 for support positions. MAG anticipates a total of four on -site trips of one or more days, at least one of which may include two consultants and multiple days to conduct the employee orientation sessions. A final trip, for this project may Include both the training In the Classification Managet® software and a presentation to the Board. Any additional trips the City might desire will be estimated at the cost of $125/hour plus reasonable direct expenses and will be pre -approved by the City. Payment An initiation invoice of twenty percent (20%) will be requested. Monthly amounts will be Invoiced as the work proceeds. Ten percent (10%) of the total contract amount shall be held back - payable upon successful completion of the project. Additional payments shall be due and payable in accordance with monthly Invoices based upon work performed toward delivery of final reports and products as described herein. Fees for future maintenance will be billed upon completion and satisfactory receipt by the City. The fees to be provided do not Include services provided by MAG following submission of Its final report and recommendations. In the event MAG is required to provide documents or testimony in response to claims, demands or actions by third parties, MAG shall bill for services rendered based on then -current professional fees and expenses Incurred, including reasonable attorney's fees. No tasks shall be undertaken without prior notification to you. This provision is Intended to apply only to third -party actions based on Implementation of MAG's report and findings. Follow Up Services During the course of the three year contract MAG will provide follow up assistance for work at the rate of $125/hour for consulting staff and $45/hour for support staff and reasonable direct expenses for travel. MAG will provide a cost estimate for the City's approval prior to commencing any work. During the first year, reasonable follow up, to include questions on the use of the Classification Managet® software and up to ten additional class/job descriptions will be provided at no additional cost. Additional survey work, for up to five additional jobs, if it can be prepared from our library of survey information, will also be at no additional cost. Job descriptions beyond those prepared in the original study and the ten during the first year will be billed for future years at the rate of $50 per description. Additional Maintenance: The Consultant shall do, perform and carry out in a good and professional manner human resource management consulting services as may be requested by the Client, which may include, but are not limited to, the following: Management Advisory Group International, inc. 2013 1. Re-evaluating positions inclusive of job analysis, quantitative job evaluation, and salary grade recommendation @ $100.00 per position. 2. Class description preparation @ $50.00 per description. 3. Labor market (salary/wage survey) analysis @ $100.00 per position. 4. Determination of Exempt or Non -Exempt status or positions with respect to the Fair Labor Standards Act (FLSA) @ $50.00 per position. 5. Position design, inclusive of the development of draft class description, job documentation (via completion of a Job Content Questionnalre by the position incumbent), job analysis, FLSA determination, and final preparation of job description, quantitative job evaluation and salary grade recommendation @ $250.00 per position. 6. Recommendations with respect to competitive hiring rates commensurate with an applicant's experience and educational requirements (recommendation as to what rate an applicant should be hired at within the existing grade and salary range) @ $50.00 per applicant analysis. 7. Annual updates to Implementation / Installation schedules @ $150.00 per hour for programming; @ $125.00 per hour for staff analysis. R Perform9nCP Msro^erg Infa setup for existing new de�r'1ipt�r.n,c ?*iH employees $3,000; monthly maintenance $350. Indemnification Language Suggested. Consultant agrees, to the fullest extent permitted by law, to Indemnify and hold harmless the City from any amounts (including reasonable attorney's fees) for which the City shall become legally obligated to pay as damages for negligent acts, errors, and/or omissions of the Consultant arising out of the Consultant's performance under this Agreement; however, the amount Consultant will pay for damages is limited to $1,000,000, which number is intended to reflect the limits set forth in Consultant's liability insurance. Proprietary Rights Suggested. The City acknowledges that certain report formats to be provided by the Consultant are copyrighted. However, in accordance with applicable "Public Records" laws, each file and all papers pertaining to any activities performed for or on behalf of the City are public records available for inspection by any person even If the file or paper resides In the Consultant's office or facility. The City shall agree, to the extent permitted by law, to protect any information deemed a trade secret as that term is used within applicable statutes. Consultant asserts that its Classification Manager@ software, Job Analysis Questionnaire (JAQ), methodology section of the proposal, and software development manuals and related documentation for the software are trade secrets and as such are not subject to disclosure. Management Advisory Group International, Inc. 2013 Exhibit C INSURANCE SECTION A. Prior to the approval of this contract by the City, the Contractor shall furnish a completed Insurance Certificate to the City, which shall be completed by an agent authorized to bind the named underwriter(s) to the coverages, limits, and termination provisions shown thereon, and which shall furnish and contain all required information referenced or indicated thereon. THE CITY SHALL HAVE NO DUTY TO PAY OR PERFORM UNDER THIS CONTRACT UNTIL SUCH CERTIFICATE SHALL HAVE BEEN DELIVERED TO THE CITY. INSURANCE COVERAGE REQUIRED SECTION B. The City reserves the right to review the insurance requirements of this section during the effective period of the contract and to require adjustment of insurance coverages and their limits when deemed necessary and prudent by the City based upon changes in statutory law, court decisions, or the claims history of the industry as well as the Contractor. SECTION C. Subject to the Contractor's right to maintain reasonable deductibles in such amounts as are approved by the City, the Contractor shall obtain and maintain in full force and effect for the duration of this contract, and any extension hereof, at Contractor's sole expense, insurance coverage written by companies approved by the State of Texas and acceptable to the City, in the following type(s) and amount(s): Type Worker's Compensation or Professional Liability Commercial General Liability per Occurrence Endorsements - General Aggregate - Products/Op AGG - Personal & Adv. Injury - Contractual Liability - Fire Damage (Any one Fire) - Med Exp (Any one Person) Automobile Liability a. Any Auto Amount Statutory 1,000,000 Combined single limit for bodily injury and property damage of $500,000 per occurrence or its equivalent. Combined single limit for bodily injury and of $500,000 per occurrence or its equivalent The City of Lubbock shall be named as additional insured on auto/general liability with a waiver of subrogation in favor of the City on all coverage's and include products of completed operations endorsement. All copies of the Certificates of Insurance shall reference the RFP or proposal number for which the insurance is being supplied. Copies of all endorsements are required. ADDITIONAL POLICY ENDORSEMENTS The City shall be entitled, upon request, and without expense, to receive copies of the policies and all endorsements thereto and may make any reasonable request for deletion, revision, or modification of particular policy terms, conditions, limitations, or exclusions (except where policy provisions are established by law or regulation binding upon either of the parties hereto or the underwriter of any of such policies). Upon such request by the City, the Contractor shall exercise reasonable efforts to accomplish such changes in policy coverages, and shall pay the cost thereof. REQUIRED PROVISIONS The Contractor agrees that with respect to the above required insurance, all insurance contracts and certificate(s) of insurance will contain and state, in writing, on the certificate or its attachment, the following required provisions: a. Name the City of Lubbock and its officers, employees, and elected representatives as additional insureds, (as the interest of each insured may appear) as to all applicable coverage; b. Provide for 30 days notice to the City for cancellation, nonrenewal, or material change; c. Provide for notice to the City at the address shown below by registered mail; d. The Contractor agrees to waive subrogation against the City of Lubbock, its officers, employees, and elected representatives for injuries, including death, property damage, or any other loss to the extent same may be covered by the proceeds of insurance; e. Provide that all provisions of this contract concerning liability, duty, and standard of care together with the indemnification provision, shall be underwritten by contractual liability coverage sufficient to include such obligations within applicable policies. f. All copies of the Certificates of Insurance shall reference the project name or proposal number for which the insurance is being supplied. NOTICES The Contractor shall notify the City in the event of any change in coverage and shall give such notices not less than 30 days prior the change, which notice must be accompanied by a replacement CERTIFICATE OF INSURANCE. All notices shall be given to the City at the following address: Marta Alvarez, Director of Purchasing & Contract Management City of Lubbock 1625 13`h Street, Room 204 Lubbock, Texas 79401 SECTION D. Approval, disapproval, or failure to act by the City regarding any insurance supplied by the Contractor shall not relieve the Contractor of full responsibility or liability for damages and accidents as set forth in the contract documents. Neither shall the bankruptcy, insolvency, or denial of liability by the insurance company exonerate the Contractor from liability.