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10-030 - R TOWN OF PROSPER,TEXAS RESOLUTION NO. 10-030 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PROSPER TEXAS, HEREBY AUTHORIZING THE TOWN MANAGER, TO ENTER INTO A CONTRACT WITH PUBLIC SECTOR PERSONNEL CONSULTANTS TO PERFORM A COMPREHENSIVE COMPENSATION ANALYSIS FOR THE TOWN OF PROSPER. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF PROSPER,TEXAS: SECTION 1: The Town Manager of the Town of Prosper, Texas, is hereby authorized to execute, on behalf of the Town Council of the Town of Prosper, Texas, a contract with Public Sector Personnel Consultants to perform a comprehensive compensation analysis for the Town of Prosper, as hereto attached. SECTION 2: This Resolution shall take effect immediately upon its passage. RESOLVED THIS THE 13"'day of April,2010 Ray Sm� l , �ayo�•Pro-Term ATTEST TO:. OF01 aUllew D. Denton,TRMC Town Secretary IIII PROFESSIONAL SERVICES AGREEMENT This Agreement is entered into by the Town of Prosper ("the Town"), 121 W. Broadway, Prosper, TX 75078, and Public Sector Personnel Consultants (PSPC) 1215 West Rio Salado Parkway Suite 109, Tempe, AZ 85281. (National Office) This Agreement is for PSPC to conduct a compensation study and incorporates PSPC's March 2010 proposal and work plan by reference (EXHIBIT A). A. SCOPE OF THE PROJECT The project includes a management and employee communication plan; partnership with the Town Manager, Council, and project designee(s); occupational, organizational, and operational familiarization; review of current job descriptions for compliance with ADA, EEO, and applicable state and Federal laws and guidelines; meetings with Town Officials to confirm job description content and discuss linkage to performance evaluation system; internal equity and external competitiveness evaluation; total compensation and benefits survey and competitiveness analysis; salary range recommendations; fiscal impact estimates and multiple implementation scenarios; review and development or modification / improvements to the performance evaluation system including alignment of performance standards to Town goals; updated compensation and performance plan and one year of compensation and performance plan implementation support for approximately 70 employees in 36 job classifications. B. PROJECT TIME ESTIMATE The Town and PSPC will partner to complete the study by June 30, 2010. C. PROJECT COST ESTIMATE We estimate that the project's total cost, including all fees for professional services and reimbursement for out-of-pocket expenses, will not exceed$15,000. D. PROJECT BILLING AND PAYMENT We do not require any advance payments, and will provide the Town with monthly invoices for the professional services provided and out-of-pocket expenses incurred during the month„ We request that the Town pay the invoices within thirty (30) days of their receipt. you. APPROVED FOR APPROVED FOR TOWN OF PRO ER �� PUBLIC SECTOR PERSONNEL CONSULTANTS By: �������. . B (Signature) m _ — ..... 'gnature) Name: Name ew Weatherlv m Title: 7—ow, "w a to Title: President Date: O Date: 4.16.to CPTX PUBLIC SECTOR PERSONNEL CONSULTANTS PROJECT UNDERSTANDING: SUMMARY OF SERVICES FOR THE TOWN PUBLIC SECTOR PERSONNEL CONSULTANTS (PSPC) proposes the following program of consulting services and implementation support to achieve all of the objectives stated in the Town's RFP. Pro ect Planning and Communication 1. Project planning and scheduling meeting with the Town Manager, Town Officials, project designee(s) 2. Policy input and project direction meeting and briefing with the Council, Town Manager, and designee(s) 3. Project briefing presentation for all employees, Town Council, Town Officials, and project leaders 4. Management and employee communication, progress reports throughout all project phases Review of Current,Job Descriptions 5. Occupational familiarization by review of Town's current job descriptions and compensation plans 6. Organizational familiarization by review of Town organization charts, budgets, and annual reports 7. Organizational familiarization by one-on-one and small group meetings with Department Heads 8. Confirmation of essential functions for each job classification and for compliance with applicable laws 9. Review of, and recommendations as needed, to validate job description compliance with ADA and EEO 10. Discussions with Department Heads to create linkages between job duties and performance standards Custom and Corn rehensive Market Sala /Compensation Surveys 11. Identification of Town's competitive employment areas for compensation surveys, for Town approval 12. Identification of Town occupations to utilize as survey benchmark job classifications-target all 36 13. Solicitation of comparator employers and agencies for participation in external compensation surveys 14. Extraction of data from public employer compensation plans, questionnaires, reliable published surveys 15. Calculation of prevailing rates and add pay offerings by job classification for comparison to Town plan 16. Collection of safety hours worked, PTO, and overtime best practices or prevailing practices information 17. Collection and comparison of medical premium, retirement contribution, PTO, and other benefits data 18. Consolidation of data from all sources and calculation of prevailing rates for benchmark jobs 19. Computation of extent Town's compensation offerings vary from external prevailing rates and practices 20. Review of competitiveness analysis with the Town Manager, Town Officials, Town's project designees Compensation, Plan Development and Performance Evaluation System 21. Construction of optional salary range structures for review and selection by Town's project leaders 22. Assignment of job classes to salary ranges by internal equity and external competitiveness 23. Assistance with Town Council identification of desired, affordable salary competitiveness policy 24. Fiscal impact estimates at various levels of external prevailing rates competitiveness policies 25. Review of current performance evaluation systems, tools, plans, forms, plans and processes 26. Development, or assistance with Town staff development, of performance standards for each job 27. Training workshops for Town staff in performance planning, evaluation, and use of performance plan 28. Review and critique of draft salary and implementation plans with the Town Manager, project leaders Communication of Results and Im lementatlon Strategies 29. Preparation and presentation of a final project report for the Town Manager, Council, and Town Officials 30. Development of a plan for the implementation of Town's updated compensation and performance plan 31. Uploading of EZ COMPTm program files on a Town computer and staff training for self-sufficiency 32. Development and provision of process for ongoing plan maintenance and subsequent plan updates 33. Assistance with communicating the Town's updated plans for all Town officials and employees 34. One year compensation and performance plan maintenance assistance at no cost to the Town CPTX PUBLIC SECTOR PERSONNEL CONSULTANTS 3/10 PROJECT APPROACH AND METHODOLOGY Following is our overall work plan and approach to achieving the Town's objectives for the conduct of a job description review, salary and benefits surveys, and performance evaluation system study, meeting all of the stated objectives in the RFP.. A. OBJECTIVES OF THE PROJECT The recommended plans, programs, systems and administrative procedures will meet these ten most important criteria. - Reflective of Town's Purpose and Values - Reflective of prevailing "best practices" - Internally equitable - Legally compliant& defensible - Externally competitive - Financially responsible - Readily understood - Efficiently administered - Easily updated & maintained - Inclusive of employee input B. SCOPE OF THE PROJECT The project includes a management and employee communication plan; partnership with the Town Manager, Council, and project designee(s); occupational, organizational, and operational familiarization; review of current job descriptions for compliance with ADA, EEO, and applicable state and Federal laws and guidelines; meetings with Town Officials to confirm job description content and discuss linkage to performance evaluation system; internal equity and external competitiveness evaluation; total compensation and benefits survey and competitiveness analysis; salary range recommendations; fiscal impact estimates and multiple implementation scenarios; review and development or modification / improvements to the performance evaluation system including alignment of performance standards to Town goals; updated compensation and performance plan and one year of compensation and performance plan implementation support for approximately 70 employees in 36 job classifications. C. PROJECT METHODOLOGY 1. Quality Assurance To ensure a high quality project, we have built in several layers of procedural and statistical controls, in addition to those already in EZ COMPTM. Internally, we follow a prescribed series of steps in each project phase, which are reviewed by our Project Director. We request that the Town's Project Manager(s) review our work to minimize the chance of errors and to ensure that it reflects the Town's organizational values. 2. Pro'ect Planning Meetings and Communication Plan Develo men We will consult with the Town Manager and Town representatives on a communication strategy, plan, and materials, beginning prior to the project and extending to the post-project information meetings. We can conduct group pre-project meetings for all Town officials and employees where we will discuss the project's scope, answer questions, and highlight opportunities for employee and management input. See "Communicating the Project to the Employees" in the Appendices for additional information regarding our approach to employee inclusion and communication. CPTX PUBLIC SECTOR PERSONNEL CONSULTANTS 3/10 D. REVIEW OF CURRENT JOB DESCRIPTIONS 1. Review of Essential Tasks. Cyrrent Job Descriptions We will review and analyze the current essential tasks, duties and responsibilities, and minimum qualifications of each included position. For any job classifications where a job description does not exist, we can provide a Position Analysis Questionnaire for employee or department completion. 2. Neetin s with Town Officials l We will meet with Department Heads or designated Town staff to confirm the content and accuracy of the current job descriptions, and to get a clear understanding of (perhaps) the unique nature of the Town's job classifications. This process also ensures that we make all internal and external comparisons on the basis of actual job content and not merely job title. 3. Confirming Job Descriptions We will scrutinize the current job descriptions for ADA/EEO-compliance, standard and consistent formatting, and accuracy of essential task documentation. The descriptions should include (not limited to) the following components: Job Summary— Definition Education, Training and Experience Physical Requirements Distinguishing Characteristics Licenses and Certifications Non-Essential Functions Essential Functions FLSA Exempt/Non-Exempt Status Mental Requirements Desired Knowledge and Skills Supervision Exercise/Received Working Conditions 4. Establishing a Linkage Between Job Descri tjon Content and Performance Evaluations In our one-on-one and small group discussions with Department Heads, and in our review of current job descriptions, we will confirm the essential functions of each job classification and begin to identify how they relate to performance evaluation standards and measures. We will assist departments with identifying any additional tasks or functions that should be included on the job descriptions in order to fairly uphold performance standards and measures for each job classification and position. 5. Optional Approaches to Ensure Internal gguit If desired, and for precision in job class analyses, and subsequent salary range determinations, we may utilize one of several job evaluation systems widely in use, including the Hay Method, Decision Band Method (DBM), and the Factor Evaluation System (FES). FES is the most extensively validated and commonly utilized quantitative job evaluation system for public sector occupations, consisting of the following flexible compensable factors. Knowledge Required Personal Contacts Complexity Supervisory Controls Scope and Effect Work Environment Guidelines Provided Supervision Exercised Physical Demands The job class hierarchy based on job points can be used to reflect the Town's relative internal job worth values. The Town's annual salary competitiveness policy will be translated into a mathematical formula which, when combined with the job points of each Town job class, will determine the proper salary range for each job class and position. This balances internal equity (job points relationships) with external competitiveness (market relationship formula). CPTX PUBLIC SECTOR PERSONNEL CONSULTANTS 3/10 E. SURVEYS AND COMPENSATION PLAN 1. Town Involvement in Compensation Plan Develo ment We will obtain policy direction from the Town Manager, Town Council and Town Officials on the following key components of the salary plan development process: - Comparator Employer Selection - Job Evaluation Method-Salary Plan Linkage - Benchmark Job Class Selection - Draft Compensation Plan Review/Critique - Compensation Competitiveness Policy - Total Compensation Points for Analysis - Salary Structure Selection - Project Implementation Plan 2. Com rehensive Comi2ensation Surve We do not subscribe to or recommend the use of databases or data warehouses used or hosted by other firmst We will collect the com late pay plans from each of the Town's, comparators and build a custom survey database to ensure accuracy and completeness, unique to the Town's lob classifications.. a. Data Collection Protocol will be developed in consultation with the Town's project leaders to determine which salary data elements to include, such as: Base Salary Information - Salary grade/step or open range salary plan structure - Salary range structure Minimum, Midpoint, and Maximum - Method of salary administration—longevity, merit, or skill Additional Compensation Information - Supplemental pay items for special qualifications/certifications - Individual or group incentive plans, bonus, awards, stipends - PTO, significant Town-paid benefits, overtime practices, etc - Any additional add-pay or benefits items at Town's direction b. Benchmark Job Selection will be made by identifying Town job classes common to its employment-competitive public and private employers in the immediate area and throughout the Metroplex, region or State, clearly identifiable, and representative of standard occupational job groups. c. Comparator Employers Identification will be made in consultation with the Town's Project Manager(s) and Town Manager. Criteria include their degree of competition to the Town in obtaining and retaining high quality staff, their location in the Town's traditional recruitment areas, and their organizational size and complexity. d. Compensation Data Collection will be made by one or more of the following methods. - Pre-survey contact with the selected comparator employers to solicit participation in the Town's compensation survey(s) - Extraction from the pay plans of designated public employers. - Customized salary and additional total compensation and benefits survey requests for local governments and other public and private employers, distributed by mail, fax, and e-mail. - As desired, additional data extraction from established salary surveys and commercial survey sources such as Watson Wyatt, ERI, American Water Works Association, etc. e. Data Quality Control includes editing data for accuracy and proper matching to the Town's survey benchmark jobs, and phone/fax/E-mail follow-ups for data clarification and to obtain comparators' benchmark job descriptions. CPTX PUBLIC SECTOR PERSONNEL CONSULTANTS 3/10 3. Prevailing Rates Calculation We will consolidate the compensation data from all sources, enter the information into the EZ COMPTM program, and compute the prevailing rates, inclusive of cost of living differentials, as the statistical mean of the survey data for each benchmark job class. Data will be projected forward from the date of collection to a common date relating to the Town's salary plan year by the annual Prevailing Rate Increase Factor(PRI) applicable at that time. 4. Comi2ensation,Competitiveness Comiparison We will provide the Town with charts comparing its current salary structures to those of the selected public and private comparator employers. We will calculate the extent that the Town's offerings vary from the prevailing rates and practices of other relevant employers. 5. Compensation Competitiveness Polic We will assist the Town to select a compensation competitiveness policy which best fits its compensation strategy and financial resources, by providing fiscal impact estimates at various percentage relationships to the prevailing rates. 6. Salary Plan Structure Devely mnen We will review the Town's current employee agreements and wage plans and 1) utilize the Town's current wage plan structures to identify internally equitable and externally competitive salary ranges for each Town job class or 2) prepare alternative salary range structures and schedules for the Town and the Mayor to select the best fit for its competitiveness strategy, with these optional criteria: - Method of administration, i.e.: measured job performance, longevity, or skill - Width of the salary ranges, grades, or broad bands, from Minimum to Maximum - Varying salary range widths for FLSA non-exempt or exempt positions - Open salary ranges for pay-for-performance or variable compensation plan - If steps within the salary ranges, number of steps, percentage separation - Number of salary ranges, grades, or broad bands in the salary schedule - Percentage of separation between salary ranges, grades or broad bands - Recognition for longevity, unique assignments, and special skill requirements - Remuneration for required special licenses, certifications and registrations .. Linkage of performance evaluations to merit increase opportunities 7. Saialy Range Assi nmmrent nevelo ment We will assign each job classification to a salary range in the Town's current or selected new salary structure on the basis of a combination of factors, including: - the prevailing rates for the benchmark job classes - its current relationship to similar or occupationally related job classes - the 15% guideline for salary range separation between sequential job classes - the 25% guideline for salary separation of a department head job class - its quantitative evaluated internal job worth value (job evaluation points) 8. Implementation Pian Develo ment We will consult with the Personnel Staff and Project Team or Committee on a plan for transition to the recommended plan, including a timetable for the principal activities, employee communication, impact on bargaining processes, and estimates of required financial resources. CPTX PUBLIC SECTOR PERSONNEL CONSULTANTS 3/10 F. PERFORMANCE EVALUATION SYSTEM DEVELOPMENT OR IMPROVEMENT We will conduct a review of the Town's current job performance evaluation or appraisal system(s), and provide the Town with our recommendations regarding retention, revision, or replacement of all or components of the plan. Data will be obtained by our review of the documentation, comments and suggestions obtained during focus group discussions, and a comparison to"best practices" systems. Among the criteria we will utilize during our evaluation are the following. "Does the current system: —adequately distinguish between various levels of job performance, —have the confidence of the employees that the system is fairly applied, —focus on occupation-specific job performance and achievement criteria, —specify clear, reasonable, achievable, and measurable job objectives, —maximize the use of objective and observable performance standards, —minimize subjective supervisory input, universal criteria, or behavioral traits, —include employee participation in the establishment of goals for their position, —require individual annual job performance plans at the start of the rating year, —include performance planning, coaching, and remedial activities by supervisors, — provide sufficient training for supervisors in performance evaluation skills" 1. Changes to Sy sten? -Participation in Customization bV Town Officials We will conduct focus group discussions on the Town's current performance evaluation system, tools, plans, and training with Senior Staff and Project Team, to obtain their input as to how this system needs to reflect the nature, scope, and complexity of the Town's occupational job classes, its values and mission, and the Town's work standards philosophy. We will partner with supervisors and managers to update and/or create performance standards as they relate to the job descriptions, and provide a process to review the standards developed by departments and managers to ensure the effectiveness of the plan and system going forward. 2. Procedure Manuals and Forms We can provide all of the needed supervisory handbooks and forms for performance management planning and evaluation, customized for the Town. We may utilize all or portions of our Achievement Evaluation Program, AEPTM, to create a program responsive to the Town's project goals. 3. SMpg0L1sorV Training Worksho We can conduct a series of '/ day workshops to train the Town, Senior Staff, and supervisors in the basics of performance plan development for their own and subordinate positions by partnering with management. Principal components of the workshops include: -Counseling of employees on their job strengths and potential for improvement - Identifying job end results that are to be accomplished -from job descriptions -Weighting the primary job achievement factors by their relative importance - Determining clear, reasonable, achievable, and measurable achievement goals - Establishing objective achievement measures by which to evaluate performance -Constructing a job performance evaluation scale for levels of achievement - Evaluating actual job performance by comparison to the achievement goals -Conducting the periodic performance achievement evaluation review meeting CPTX PUBLIC SECTOR PERSONNEL CONSULTANTS 3/10 4. QualitAssurance Reviews We will provide a written critique of a sample of the initial performance measures and standards developed by the supervisors for their own or one of their subordinate positions. Alternatively, we will prepare performance standards and measures for the Town's and respective departments' or divisions' for their review and critique. 5. Lipking Performance to Pay and Incentives We will develop merit increase guides and other methods of salary administration to allow the Town to select the best approach to rewarding performance and that reflect the goals and objectives of the performance evaluation system, including incentive and bonus concepts that allow for one time lump sum performance rewards and incentives. G. FINAL REPORTS AND PRESENTATIONS 1. Draft and Final Re ort Pre oration We will provide the Town's project leader(s) with a draft of our report for review and critique, including the classification plan, FLSA designations, compensation market data, salary comparison tables, fiscal estimates, salary range listings, and implementation procedures. We will incorporate their critique into the development of a final report summarizing the project's findings, recommendations, and detailed description of the Town's updated position classification and compensation plans. 2. Final Re ort Presentations We will conduct a workshop or formal presentation of our final report and recommendations to the Mayor, Town Officials, employees and employee representatives. 3. EZ COMPT11 Program Installation We will install our EZ COMPTM program and project files on one of the Personnel / Finance Department's computers and provide training to key staff in the maintenance and update of the classification and compensation plan. Please see the illustrative EZ COMPTm applications CD-ROM on the inside front cover of this proposal, and the program description booklet in the Appendix. 4. Implementation Warrant To ensure effective implementation of the new plan, we will analyze, evaluate, and provide a salary range recommendation for any new or changed job class, at no cost to the Town for one year. H. ENSURING THE TOWN'S SELF-SUFFICIENCY The Town will be self-sufficient in all aspects of maintenance of the updated and compensation and performance plans through these services. 1. Procedure Manuals -PSPC Position Classification Procedure Guide -PSPC Salary Administration Procedure Guide - Town of Prosper EZ COMPTM Procedure Guide CPTX PUBLIC SECTOR PERSONNEL CONSULTANTS 3/10 2. Trainka Worksho —for Town staff in position classification (as desired),job evaluation, compensation surveys, performance management, and compensation plan design and administration. 3. EZ COMPTM — program and project files on one of the Town's computers, a custom user's manual, and system training for key Town and Personnel staff. 4. Initial Year's Implementation Warrant Sia ort— we will analyze, evaluate, classify, and provide a salary range recommendation for any new or changed position or entire job classification, at no cost to the Town for one year. I. EXTENSIVE EMPLOYEE INCLUSION AND COMMUNICATION Very important factors for successful implementation of new or updated compensation and performance plans are 1) extensive employee inclusion, and 2) extensive employee communication. Town officials and employees will participate in one or more of the following activities: - Attending pre-and post-project briefings and question and answer sessions - Completing a Position Analysis Questionnaire (PAQ) describing their position (if needed) - Receiving information pamphlet/booklet describing the updated salary and performance plan J. MINIMAL TOWN SUPPORT REQUIRED We are completely self-sufficient in projects of this nature and do not require any substantive staff support from the Town other than payroll data, and arrangements for group and individual meetings and interviews. We appreciate, but do not require, any office space, telephone, clerical assistance, computers, or office equipment. We will provide all data entry, data processing, duplicating, and related report preparation functions. CPTX PUBLIC SECTOR PERSONNEL CONSULTANTS 3110