HomeMy WebLinkAboutDocumentation_Regular_Tab 21_11/17/2005
Anne Koch
From: Anne Koch [akoch@tequesta.org]
Sent: Thursday, November 17, 2005 3:09 PM
To: Geraldine Genco (E-mail); Jim Humpage (E-mail); Pat Watkins (E-mail); Tom Paterno (E-
mail)
Subject: FW: Municipal Solutions Letter of Engagement
11/17/2005
Mayor and Council:
Mr. Couzzo requests that I forward the following message.
Anne Koch
Please forward to mayor and council, as this information is relative to item
#21 on the council agenda for tonight. thanks mike
-----Original Message-----
From: Tequesta Mail [mailto:rgarlo@tequesta.org]
Sent: Thursday, November 17, 2005 6:02 PM
To: mcouzzo@tequesta.org
Subject: Municipal Solutions Letter of Engagement
With respect to the hourly rate of $125.00 quoted on page
Solutions proposal. The rate indicated an increase above
governmental rate because of a time constraint included in
Having since discussed this with Mr. Evertsen he agreed to
per hour.
Bob Garlo
Assistant Manager
3 of Municipal
their normal
the request.
a fee of $115.00
1
VILLAGE OF TEQUESTA
MEETING AGENDA ROUTING SHEET
MEETING DATE: November 17, 2005
AMENDED MEETING DATE:
SUBJECT: Council Consideration for the Village of Tequesta to complete a
Compensation and Classification Study for Village Employees
COVER MEMO ATTACHED: Yes
CONSENT AGENDA OR REGULAR AGENDA: New Business
RESOLUTION OR ORDINANCE NUMBER:
ORIGINATING DEPARTMENT: Assistant Manager/Huma~n Resources Director
DEPARTMENT HEAD APPROVAL ~~ ~ ~/ J~--~
FUNDING SOURCE: 2005/2006 BUDGET
ACCOUNT NUMBER: N/A
CURRENT BUDGETED AMOUNT AVAILABLE: $N/A
AMOUNT OF THIS ITEM: Less than $15K
BUDGETED BALANCE REMAINING: NA
(PIGGYBACK CONTRACT NAME AND #
OR
COMPETITIVE BID FOR ANYTHING OVER $10,000 -ATTACH 3 BIDS)
APPROVALS:
i
FINANCE DIRECTOR
,~
4 _
VILLAGE MANAGER ~~--~~ ~~--
VILLAGE ATTORNEY (if Needed) Yes No
PLEASE RETURN TO VILLAGE CLERK TO PLACE ON THE AGENDA
INTEROFFICE MEMORANDUM
TO: VII.LAGE MAYOR AND COUNCIL
FROM: R GARLO, ASSLSTANT MANAGER
SUBJECT: VILLAGE OF TEQUESTA CLASSIFICATION AND COMPENSATION STUDY
DATE: 11/3/05
CC: VII,LAGE MANAGER'S OFFICE
The Village staff has identified the need to conduct a classification and compensation study.
The motivation is to have a salary program that is internally equitable and externally competitive.
Further, it is critical that the salary program have features that enhance its continuity.
• Evaluation methodology in place to ensure that current job descriptions, classifications
and titles are equitable and accurate.
• Class specifications must meet the requirements of ADA (Americans with Disabilities
Act) and FLSA (Fair Labor Standards Act).
The Village's compensation system serves as the vehicle that allows for the creative and
innovative operation of the Human Resources function and its impact on the Village. The Village
strives to always maintain the right kind of compensation plan. 'T'his allows for overall job profiles to
tie in with Village objectives and to ensure that employees are assessed relative to these job profiles.
Accordingly, developmental needs and career paths can be correlated, and people can be placed in
appropriate management development workshops so that employees develop skills they need in
order to help the Village meet its objectives. Those responsible for recruiting are better able to
attract good people by offering competitive salaries that are part of the compensation plan.
Competitive salary levels will continue to allow the Village to attract, retain and motivate
individuals of sufficient caliber.
Several consulting companies specializing in the above listed scope of work have been reviewed
and proposals solicited. Municipal Solutions has performed similar work locally and their product is
in line with the Village's needs. With a proposal not exceed $15,000; they are also the most
affordable price quote. Staff would recommend utilizing their services if the Village is to pursue the
study.
Please see attached Letter of Engagement for a specific description of the scope of work and
applicable fee schedule.
12 October 2005
Village of Tequesta
Michael R. Couzzo, Jr., Village Manager
Robert Garlo, Assistant Village Manager /Human Resources
734 West Main Street
Superior, AZ 85273-5752
Michael 8~ Robert:
Per our recent conversations, attached is a draft of a Letter of Engagement. The language is pretty
innocuous, but the structure and language is nearly the same as it is with most of the salary and com-
pensation projects we complete. I took the liberty of putting in the scope what f understood (from our
conversations) what services we would deliver. Please let me know if there is anything that needs
amending, and give me a call when you receive this material.
This project has some real relevance with very important implications. I am often involved in negotia-
tions including collective bargaining agreements, and the importance of the salary, comp and measur-
able market job values can't be overstated. I look forward to assisting you on this project.
I will attach copies of recommendations ftom LA Habra Heights, CA, and Guadalupe, AZ with this letter
of engagement, and can provide you with samples of recent salary & compensation projects form
these communities and the project we just completed for the Town of Jupiter Island, FL.
Municipal Solutions, Ilc carries a $1/$2 Million commeraal comprehensive, E & O and automotive li-
ability insurance policy through the Hartford, and carried workers compensation insurance through
SCF of Arizona.
\Please call if you have any questions.
David Evertsen, Principal
Municipal Solutions, LLC
j~#~r..r~i~~~~~1 ''~3f~S{~~~f;a ~$l~i~~CJer1 ~C,~~ T~~
LETTER OF ENGAGEMENT Village of Tequesta, FL
(Draft)
Services
Below is a description of what Municipal Solutions, Ilc will be servicing and the appropriate detail of
these and other services, which we will provide or deliver, and the timeline expected for delivery of
those items:
Scope of Work
A. Job Descriptions as a Factor of C/ass~cation
1. Conduct on-site orientation and brieirng sessions for employees at appropriate levels
(generalty management) to educate them on the goals of the study and potential outcomes.
2. Prepare up-to-date, clearly defined, ADA and EEO compliant position class cations for a!1 job
classifications. The final position classification should include basic function, distinguishing
characterisfics (where appropriate), representative duties (including identifying essential
functions for ADA purposes), knowledge, skills, abil-ties, education and experience, licenses
and other requirements and working conditions.
3. Prepare rewritten /revised job descriptions for employee review or obtain job related
questionnaires from all employees to be used for revising job descriptions.
4. Conduct job audits / on-site inte-views with department heads and other employees as
necessary to confirm data provxled by questionnaires.
5. Review existing classification system, and propose amendments or a new classification
system if necessary.
6. Allocate all employees included within fhe scope of the study to an appropriate job
classification.
7. Propose a management review and appeal process that maybe used by the Village to resolve
any classfication-related disputes, wrth the decision of the Village Manager as final, and
8. Recommend appropriate implementation measures for Village staff Include proposed policies
and administrative guidelines or procedures 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 class cation.
9. Recommend a maintenance system or procedures that will be used to keep the classification
system current and equitable. Software /data (spreadsheets and documents) should be
provided that expedites and simples future job specification development and position
reclass~cafrons.
B. Classification as a Factor of Compensation
1. Conduct a salary survey, identifying benchmark classifications that correlate like positions to
like positions in communities of similar dynamics and conditions.
2. Develop extemalty competitive and intemalty equitable salary & compensation plan including
an emphasis on a performance' or mer-t-based' salary system. Provide recommendations for
implementing each class~cafion included within the study.
3. Review each classification to determine Exempt /Non-Exempt status under the Fair Labor
Standards Act (as research will allow).
4. Develop new salary range table, encompassing all Village jobs.
5. Develop an implementation strategy (including costs) and a maintenance strategy (including
continued progression within the salary range) for the new salary system.
6. Identify the appropriateness of other key compensation practices in relation fo Village of
Tequesta including pay for performance, skill pay, executive compensation, shift differentials,
special assignment pay, out of class pay, specialty pay, on-call pay, bilingual pay, education
pay, etc. These recommendations maybe recommended for immediate implementation or for
pursuit at a later date.
7. Recommend a maintenance system or procedures that will be used to keep the salary &
compensation system current and equitable. Software /data (spreadsheets and documents)
should be provided that expedites and simples future job spec cation development and
position reclassifications.
8. Present preliminary & final recommendations to Village Council.
9. Provide on-site training for key staff members on how to maintain the new compensation
system.
Page 1 of 1
LETTER OF ENGAGEMENT Vi{lage of Tequesta, FL
(Draft)
Objective: This proiect is intended to be the mechanism for finding and creating an appropriate baseline for
adjusting salaries and compensation and appropriately forecasting and establishing employee salary and
compensation expenditures for future years. Review the existing system, analyze research, discuss findings
with Village administration and propose a salary and compensation plan that is fair and equitable to employees,
fiscally sound, and rewarding performance, merit, and education /training in addition to length of service.
Timeline: a & b Preliminary Report December 16, 2005.
a 8~ b Final Report. February 10, 2006.
Deliverables: Consultant will provide copies of any written materials, research, and final products as
necessary or as requested. Village will provide consultant access to and use of printing equipment and
supplies to reduce external costs for this project.
Additional Work: As necessary, additional work may include review and amendments to the Personnel
Policies and Procedures Manual, creation of Council Rules of Conduct, or workshops with staff and Council
to implement or revise the study results. Such additional work is welcome, but should NOT be considered
part of this agreement beyond items A and B above unless such work shall is reduced in writing, and shall
be completed within the reduced hourly rate stated below, and within the time frame determined when
requested. Review or preparation of other documents, ordinances or proposed license agreements as
requested at reduced hourly rate
Company Representation
Municipal Solutions, Ilc cannot provide an assurance than a `perfect' product will be rendered.
However, all efforts will be made to ensure the best product possible for the client. Circumstances
may arise in which it is necessary for us to modify our efforts or withdraw from the engagement. To
mitigate the effects of such circumstances, the findings or reasons for concern, modification or
withdrawal will be communicated clearly by each agent of this agreement, and reduced to writing as
often as possible. Both parties agree to work in good faith to avoid any delay or premature
termination in the relationship.
The Village of Tequesta has the ultimate responsibility for outlining the necessary outcomes of this
agreement and in providing copies of necessary materials and documents. Municipal Solutions, Ilc
has the responsibility of providing timely and accurate information, communications, results and final
products in fulfilling the established objectives and tasks of this agreement. This responsibility
includes the maintenance of adequate records and internal controls and the safeguarding of
accomplished tasks -including any relationship with associates or teaming partners. Our
engagement cannot be relied upon to disclose every problem in the relationship; however, both
parties agree to notify each other immediately if any such matters come one or the other's attention.
We have confidence that the relationship will greatly benefit both parties.
The Village of Tequesta agrees that all records, documentation, and information in its possession in
connection with our engagement (not limited to Exhibit A) will be made available to Municipal
Solutions, and its assigns or teaming partners, and agrees that all records, documentation, and
information in our possession in connection with our engagement will be made available to you. Both
parties agree that all material information will be disclosed one to another, that Municipal Solutions, Ilc
will have the full cooperation of the Company's personnel, under direction of its Principal, for the
efficient and effective completion of the requested services. Both parties agree that the Village of
Tequesta shalt solely own any document, record or information created by the parties under this
Letter of Engagement. The Village of Tequesta shall not have to pay any party for the use or
continued use of any document created under this Letter of Engagement, and Municipal Solutions, Ilc
may use the final work product for marketing purposes. As required by generally accepted standards,
we will make specific inquiries into various organizations to whom a relationship exists or may
eventually exist. If the responses to our inquiries, the oral and written representations, and the results
of our efforts somehow appears to compromise our relationship, both parties agree to first try and
Page 2 of 2
LETTER OF ENGAGEMENT Village of Tequesta, FL
(Draft)
resolve this relationship together without resorting to litigation. If both parties are unable to resolve
the dispute, then either party shall be allowed to pursue litigation or arbitration to resolve the dispute.
Arty I ' ~e i ) ~y (~;~ C#, which shall have exclusive
venue for any matter arising out of this Letter of Engagement. If the parties mutually agree to resolve
their dispute through arbitration, the arbitration shall be held in the Village of Tequesta.
Although we are prepared to provide you with additional consulting services beyond the terms of this
agreement, we are not obligated to venture beyond the scope of this agreement unless specifically
requested and compensation affixed in writing. It is our policy to put all amendments to this
agreement in writing. Both parties should rely on advice from our organization, however, we prefer to
fully review and report our recommendations and results in writing to you.
Fees
We propose that our fee for the services enumerated in herein a not to exceed amount of $15,000,
which includes all expenses and travel reimbursements. Use of municipal supplies, telephone and
photocopying equipment will be used while on-sife as is appropriate to eliminate unnecessary
reimbursable expenses. The above fee is based on anticipated efforts from Municipal Solutions, Ilc
with the understanding that unexpected or changing circumstances will not be encountered during the
engagement without revision to the terms of this agreement. Should such revisions be necessary, the
stated hourly rate is provided for consideration of extension of services.
The charges for our work are to be based on the time spent and calculated at our regular hourly
rates, plus out-of-pocket expenses. Normally, our public sector billing rates are $95-115 per hour
depending upon the level of cooperative and independent effort assigned to the work. For purposes
of this agreement our hourly rate will be $125 per hour, and additional work (if requested) at a
reduced hourly rate of $105. Clients are billed monthly and our fees are payable within 15 days of
invoice date. No late charges (normally at the rate of 1-1/2% per month on any outstanding balance
not paid within 30 days of the invoice date) will be figured into this agreement so long as payment is
current. Invoices are detailed and include hourly expenditures per calendar day and itemized
expenses and travel.
Both parties acknowledge that this Letter of Engagement is subject to the conflict of interest
provisions set forth in F.R.S.. { as amended.
This engagement letter must be amended in writing if any of the above services are changed.
If the above terms are acceptable to you and the services outlined are in accordance with your
understanding, please sign the copy of this letter and return them to us as soon as possible.
We are pleased to have this opportunity to serve you and we trust that our association will be a long
and pleasant one.
Sincerely,
David A. Evertsen, Principal
Municipal Solutions, Ilc
Accepted:
Page 3 of 3
LETTER OF ENGAGEMENT Village of Tequesta, FL
sy:
(Draft)
By:
Village Manager (or designee) David Evertsen, Principal
Representing: Village of Tequesta, FL Representing: Municipal Solutions, Ilc
Date:
Date:
Exhibit A
1. Current Policies and Procedures Manual / HR Rules,
2. Current Payroll Printout (generally from within the Accounting system) illustrating
compensation distribution amounts and rates,
3. Copy of current Organizational Chart (If available),
4. Copies of all existing Job Descriptions (even if some appear outdated or incomplete),
5. Copy of most recent salary/comp study (even if it was a few years ago). Municipal Solutions
has statewide and regional data for some communities for FY2005 and some for FY2006,
6. Copy of any currently used staff evaluation format(s) (if available, and understanding this may
vary with department),
7. Information on any collective bargaining terms relating to salary, compensation 8~ classification.
8. Copy of any performance objectives (may be general Council goals and priorities, or Manager
Directives), and
9. Statistical information in the Town (Growth Rate, Budget Summary, demographics, &
economics),
Most of this information will provide the basis for determining current levels and situations, as well
as the most productive creation and implementation of new standards. We will certainly talk in
more detail to make certain we are working with some key objectives in mind.
Page 4 of 4