HomeMy WebLinkAboutContract 45930 CITY SECItZrAW .
CONTRACT NO.
PROFESSIONAL SERVICES AGREEMENT
This PROFESSIONAL SERVICES AGREEMENT ("Agreement") is made and entered into
by and between the CITY OF FORT WORTH (the "City"), a home rule municipal corporation of the
State of Texas, acting by and through its duly authorized Assistant City Manager, and The Segal
Company (Western States), Inc., ("Consultant"), a Maryland corporation, acting by and through its
duly authorized Vice President. For purposes of this Agreement, City and Consultant may each be
individually referred to as a"party"and collectively referred to as the "parties."
1. SERVICES.
1.1. Consultant will, with good faith and due diligence, provide the City with professional services
related to evaluation of the classification and compensation plans used by the City with respect to those
positions that are not subject to civil service laws ("general employee positions") covered by 134
benchmark positions. In particular, Consultant will perform all duties outlined and described in the
Statement of Work, which is attached hereto as Exhibit "A" and incorporated herein for all purposes as
though it were set forth at length. The actions and objectives contained in Exhibit "A" are referred to
herein as the "Services."
1.2. Consultant shall perform the Services in accordance with standards in the industry for the same
or similar services. In addition, Consultant shall perform the Services in accordance with all applicable
federal, state, and local laws, rules, and regulations.
2. TERM.
Services shall be provided by Consultant for a term beginning July 23, 2014, and ending July 22,
2015, unless terminated earlier in accordance with the provisions of this Agreement. This Agreement
may be renewed for up to four additional one-year periods by mutual written agreement of the parties.
3. COMPENSATION.
3.1 Fee
As full and complete compensation for all Services described above, the City shall pay
Consultant an amount not to exceed Three Hundred Thousand Dollars ($300,000.00) in
accordance with the Compensation Schedule, which is attached as Exhibit "B," which is
incorporated for all purposes herein. Consultant shall not perform any additional services for the
City not specified by this Agreement unless the City requests and approves in writing the
additional costs for such services. The City shall not be liable for any additional expenses of
Consultant not specified by this Agreement unless the City first approves such expenses in
writing.
3.2 Structure of Payments
i. In accordance with the Compensation Schedule, the Consultant will issue a monthly invoice to
the City. Invoices shall be submitted to Brian Dickerson, 1000 Throckmorton, Fort Worth, Texas
76102. Invoices are due and payable within 30 days of receipt.
ii. Each invoice shall briefly describe the nature of the work performed. If the City requires
additional reasonable documentation, it shall request the same promptly after receiving the above-
described information, and the Consultant shall provide such additional reasonable
documentation to the extent the same is available.
iii. On full and final completion of the Services, Consultant shall submit a final invoice, and City
shall pay any balance due within 30 days of receipt of such invoice.
rOFFICIAL RECORD
Compensation and classification Studies SECRET T EIV �I 11 2014
WoRTN, TX
iv. In the event of a disputed or contested billing, only the portion being contested will be withheld
from payment, and the undisputed portion will be paid. City will exercise reasonableness in
contesting any bill or portion thereof. No interest will accrue on any contested portion of the
billing until the contest has been mutually resolved.
V. For contested billings, the City shall make payment in full to Consultant within 60 days of the
date the contested matter is resolved. If City fails to make such payment, Consultant may, after
giving 7 days' written notice to City, suspend services under this Agreement until paid in full,
including interest calculated from the date the billing contest was resolved. In the event of
suspension of services, Consultant shall have no liability to City for delays or damages caused to
City because of such suspension of services.
4. TERMINATION.
4.1. Written Notice.
The City or Consultant may terminate this Agreement at any time and for any reason by
providing the other party with 30 days written notice of termination.
4.2 Non-appropriation of Funds.
In the event no funds or insufficient funds are appropriated by the City in any fiscal
period for any payments due hereunder, City will notify Consultant of such occurrence and this
Agreement shall terminate on the last day of the fiscal period for which appropriations were
received without penalty or expense to the City of any kind whatsoever, except as to the portions
of the payments herein agreed upon for which funds shall have been appropriated.
4.3 Duties and Obligations of the Parties.
In the event that this Agreement is terminated prior to the Expiration Date, the City
shall pay Consultant for services actually rendered up to the effective date of termination and
Consultant shall continue to provide the City with services requested by the City and in
accordance with this Agreement up to the effective date of termination.
5. DISCLOSURE OF CONFLICTS AND CONE IDENTIAL INFORMATION.
Consultant hereby warrants to the City that Consultant has made full disclosure in writing of
any existing or potential conflicts of interest related to Consultant's services under this Agreement. In
the event that any conflicts of interest arise after the Effective Date of this Agreement, Consultant
hereby agrees immediately to make full disclosure to the City in writing. Consultant, for itself and its
officers, agents and employees, further agrees that it shall treat all information provided to it by the City
as confidential and shall not disclose any such information to a third party without the prior written
approval of the City. Consultant shall store and maintain City Information in a secure manner and shall
not allow unauthorized users to access, modify, delete or otherwise corrupt City Information in any way.
Consultant shall notify the City immediately if the security or integrity of any City information has been
compromised or is believed to have been compromised.
6. RIGHT TO AUDIT.
Consultant agrees that the City shall, until the expiration of three (3) years after final payment
under this contract, have access to and the right to examine at reasonable times any directly pertinent
books, documents, papers and records of the Consultant involving transactions relating to this Contract
at no additional cost to the City. Consultant agrees that the City shall have access during normal
working hours to all necessary Consultant facilities and shall be provided adequate and appropriate
Compensation and Classification Studies Page 2 of 24
work space in order to conduct audits in compliance with the provisions of this section. The City shall
give Consultant reasonable advance notice of intended audits.
Consultant further agrees to include in all its subcontractor agreements hereunder a provision to
the effect that the subcontractor agrees that the City shall, until expiration of three (3) years after final
payment of the subcontract, have access to and the right to examine at reasonable times any directly
pertinent books, documents, papers and records of such subcontractor involving transactions related to the
subcontract, and further that City shall have access during normal working hours to all subcontractor
facilities and shall be provided adequate and appropriate work space in order to conduct audits in
compliance with the provisions of this paragraph. City shall give subcontractor reasonable notice of
intended audits.
7. INDEPENDENT CONSULTANT.
It is expressly understood and agreed that Consultant shall operate as an independent Consultant
as to all rights and privileges granted herein, and not as agent, representative or employee of the City.
Subject to and in accordance with the conditions and provisions of this Agreement, Consultant shall
have the exclusive right to control the details of its operations and activities and be solely responsible
for the acts and omissions of its officers, agents, servants, employees, consultants and subcontractors.
Consultant acknowledges that the doctrine of respondeat superior shall not apply as between the City,
its officers, agents, servants and employees, and Consultant, its officers, agents, employees, servants,
consultants and subcontractors. Consultant further agrees that nothing herein shall be construed as the
creation of a partnership or joint enterprise between City and Consultant.
8. LIABILITY AND INDEMNIFICATION.
CONSULTANT SHALL BE LIABLE AND RESPONSIBLE FOR ANY AND ALL
PROPERTY LOSS, PROPERTY DAMAGE AND/OR PERSONAL INJURY, INCLUDING DEATH,
TO ANY AND ALL PERSONS, OF ANY KIND OR CHARACTER, WHETHER REAL OR
ASSERTED, TO THE EXTENT CAUSED BY THE NEGLIGENT ACT(S) OR OMISSION(S),
MALFEASANCE OR INTENTIONAL MISCONDUCT OF CONSULTANT, ITS OFFICERS,
AGENTS,SERVANTS OR EMPLOYEES.
CONSULTANT COVENANTS AND AGREES TO, AND DOES HEREBY, INDEMNIFY,
HOLD HARMLESS AND DEFEND THE CITY, ITS OFFICERS, AGENTS, SERVANTS AND
EMPLOYEES, FROM AND AGAINST ANY AND ALL CLAIMS OR LAWSUITS FOR EITHER
PROPERTY DAMAGE OR LOSS (INCLUDING ALLEGED DAMAGE OR LOSS TO
CONSULTANT'S BUSINESS AND ANY RESULTING LOST PROFITS) AND/OR PERSONAL
INJURY,INCLUDING DEATH, TO ANY AND ALL PERSONS, OF ANY KIND OR CHARACTER,
WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN CONNECTION WITH THIS
AGREEMENT, TO THE EXTENT CAUSED BY THE NEGLIGENT ACTS OR OMISSIONS OR
MALFEASANCE OF CONSULTANT,ITS OFFICERS,AGENTS, SERVANTS OR EMPLOYEES.
9. ASSIGNMENT AND SUBCONTRACTING.
Consultant shall not assign or subcontract any of its duties, obligations or rights under this
Agreement without the prior written consent of the City. If the City grants consent to an assignment, the
assignee shall execute a written agreement with the City and the Consultant under which the assignee
agrees to be bound by the duties and obligations of Consultant under this Agreement. The Consultant and
Assignee shall be jointly liable for all obligations under this Agreement prior to the assignment. If the
City grants consent to a subcontract, the subcontractor shall execute a written agreement with the
Compensation and Classification Studies Page 3 of 24
Consultant referencing this Agreement under which the subcontractor shall agree to be bound by the
duties and obligations of the Consultant under this Agreement as such duties and obligations may apply.
The Consultant shall provide the City with a fully executed copy of any such subcontract.
10. INSURANCE.
Consultant shall provide the City with certificate(s) of insurance documenting policies of the
following minimum coverage limits that are to be in effect prior to commencement of any work pursuant
to this Agreement:
10.1 Coverage and Limits
(a) Commercial General Liability
$1,000,000 Each Occurrence
$2,000,000 Aggregate
(b) Automobile Liability
$1,000,000 Each occurrence on a combined single limit basis
Coverage shall be on any vehicle used by the Consultant, its employees, agents,
representatives in the course of the providing services under this Agreement.
"Any vehicle" shall be any vehicle owned, hired and non-owned.
(c) Worker's Compensation
Statutory limits
Employer's liability
$100,000 Each accident/occurrence
$100,000 Disease- per each employee
$500,000 Disease- policy limit
This coverage may be written as follows:
Workers' Compensation and Employers' Liability coverage with limits consistent with
statutory benefits outlined in the Texas workers' Compensation Act (Art. 8308 — 1.01 et
seq. Tex. Rev. Civ. Stat.)and minimum policy limits for Employers' Liability of$100,000
each accident/occurrence, $500,000 bodily injury disease policy limit and $100,000 per
disease per employee.
(d) Professional Liability(Errors& Omissions)
$1,000,000 Each Claim Limit
$1,000,000 Aggregate Limit
Professional Liability coverage may be provided through an endorsement to the
Commercial General Liability (CGL) policy, or a separate policy specific to
Professional E&O. Either is acceptable if coverage meets all other requirements.
Coverage shall be claims-made, and maintained for the duration of the
contractual agreement and for two (2) years following completion of services
provided. An annual certificate of insurance shall be submitted to the City to
evidence coverage.
10.2 Certificates.
Certificates of Insurance evidencing that the Consultant has obtained all required
insurance shall be delivered to the City prior to Consultant proceeding with any work
Compensation and Classification Studies Page 4 of 24
pursuant to this Agreement. All policies except Workers' Compensation and
Professional Liability shall be endorsed to name the City as an additional insured
thereon, as its interests may appear. All policies shall contain a Waiver of Subrogation
for the benefit of the City of Fort Worth. The term City shall include its employees,
officers, officials, agent, and volunteers in respect to the contracted services. Any failure
on the part of the City to request required insurance documentation shall not constitute a
waiver of the insurance requirement. A minimum of thirty (30) days' notice of
cancellation or reduction in limits of coverage shall be provided to the City. Ten (10)
days' notice shall be acceptable in the event of non-payment of premium. Such terms
shall be endorsed onto Consultant's insurance policies. Notice shall be sent to the Risk
Manager, City of Fort Worth, 1000 Throckmorton, Fort Worth, Texas 76102, with
copies to the City Attorney at the same address.
11. COMPLIANCE WITH LAWS,ORDINANCES,RULES AND REGULATIONS.
Consultant agrees to comply with all applicable federal, state and local laws, ordinances, rules
and regulations. If the City notifies Consultant of any violation of such laws, ordinances, rules or
regulations, Consultant shall immediately desist from and correct the violation.
12. NON-DISCRIMINATION COVENANT.
Consultant, for itself, its personal representatives, assigns, subcontractors and successors in
interest, as part of the consideration herein, agrees that in the performance of Consultant's duties and
obligations hereunder, it shall not discriminate in the treatment or employment of any individual or group
of individuals on any basis prohibited by law including Chapter 17, Article III of the Code of the City of
Fort Worth. If any claim arises from an alleged violation of this non-discrimination covenant by
Consultant, its personal representatives, assigns, subcontractors or successors in interest, Consultant
agrees to assume such liability and to indemnify and defend the City and hold the City harmless from
such claim.
13. NOTICES.
Notices required pursuant to the provisions of this Agreement shall be conclusively determined
to have been delivered when (1) hand-delivered to the other party, its agents, employees, servants or
representatives, (2) delivered by facsimile with electronic confirmation of the transmission, or (3)
received by the other party by United States Mail, registered, return receipt requested, addressed as
follows:
To The CITY: To CONSULTANT:
City of Fort Worth The Segal Company(Western States), Inc.
Attn: Susan Alanis Ruth Ann Eledge, Vice President
1000 Throckmorton Street 5050 Quorum Drive, Suite 625
Fort Worth, TX 76102-6311 Dallas, TX 75254
Facsimile: (817) 392-8654 Facsimile: (202) 833-6490
14. SOLICITATION OF EMPLOYEES.
Neither the City nor Consultant shall, during the term of this agreement and additionally for a
period of one year after its termination, solicit for employment or employ, whether as employee or
independent Consultant, any person who is or has been employed by the other during the term of this
agreement,without the prior written consent of the person's employer.
Compensation and Classification Studies Page 5 of 24
15. GOVERNMENTAL POWERS.
It is understood and agreed that by execution of this Agreement, the City does not waive or
surrender any of its governmental powers.
16. NO WAIVER.
The failure of the City or Consultant to insist upon the performance of any term or provision of
this Agreement or to exercise any right granted herein shall not constitute a waiver of the City's or
Consultant's respective right to insist upon appropriate performance or to assert any such right on any
future occasion.
17. GOVERNING LAW/VENUE.
This Agreement shall be construed in accordance with the internal laws of the State of Texas. If
any action, whether real or asserted, at law or in equity, is brought on the basis of this Agreement, venue
for such action shall lie in state courts located in Tarrant County, Texas or the United States District Court
for the Northern District of Texas, Fort Worth Division.
18. SEVERABILITY.
If any provision of this Agreement is held to be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be affected or impaired.
19. FORCE MAJEURE.
The City and Consultant shall exercise their best efforts to meet their respective duties and
obligations as set forth in this Agreement, but shall not be held liable for any delay or omission in
performance due to force majeure or other causes beyond their reasonable control (force majeure),
including, but not limited to, compliance with any government law, ordinance or regulation, acts of God,
acts of the public enemy, fires, strikes, lockouts, natural disasters, wars, riots, material or labor
restrictions by any governmental authority, transportation problems and/or any other similar causes.
20. HEADINGS NOT CONTROLLING.
Headings and titles used in this Agreement are for reference purposes only and shall not be
deemed a part of this Agreement.
21. REVIEW OF COUNSEL.
The parties acknowledge that each party and its counsel have reviewed and revised this
Agreement and that the normal rules of construction to the effect that any ambiguities are to be resolved
against the drafting party shall not be employed in the interpretation of this Agreement or exhibits hereto.
22. AMENDMENTS/MODIFICATIONS/EXTENSIONS.
No extension, modification or amendment of this Agreement shall be binding upon a party hereto
unless such extension, modification, or amendment is set forth in a written instrument, which is executed
by an authorized representative and delivered on behalf of such party.
23. ENTIRETY OF AGREEMENT.
This Agreement, including the schedule of exhibits attached hereto and any documents
incorporated herein by reference, contains the entire understanding and agreement between the City and
Compensation and Classification Studies Page 6 of 24
Consultant, their assigns and successors in interest, as to the matters contained herein. Any prior or
contemporaneous oral or written agreement is hereby declared null and void to the extent in conflict
with any provision of this Agreement.
24. SIGNATURE AUTHORITY.
The person signing this agreement hereby warrants that he/she has the legal authority to execute
this agreement on behalf of the respective party, and that such binding authority has been granted by
proper order, resolution, ordinance or other authorization of the entity. The other party is fully entitled to
rely on this warranty and representation in entering into this Agreement.
WITNESS WHEREOF,the parties hereto have executed this Agreement in multiples this day of
/ 2014.
CITY OF FORT WORTH: THE SEGAL COMPANY(WESTERN STATES),INC.
By: By: le f 6�
Sus Al is Ruth Ann Eledge
Assi t Cityyy Manager Vice President
Date:
—r
ATTES ATTEST: -
By: By: �� -
M J. ayser Name: Pbar�c e- A . Ca,tc.Ls+i-,o,-t
Ci Secretary F® ''
APPROVED AS TO FORM
LE IT j S` g0
S�
By:
Denis Mc Troy �"00000000°°
Assistant City AttO y S
CONTRACT AUTHORIZATION:
M&C:_ C- 2-6`4S
Date Approved
OFFICIAL RECORD
CITY SECRETARY
FT.WORTH,TX
Compensation and Classification Studies Page 7 of 24
EXHIBIT A
STATEMENT OF WORK
Project I—Compensation Study
Project II—Job Classification Study
PROJECT I—Compensation Study
Overview
Consultant shall review the compensation structure currently employed by the City for the 134
exempt and non-exempt general employee benchmark positions identified by the City's Human
Resources Department; review and analyze the compensation structures employed by other
entities included in market data provided by the City with respect to positions that are
comparable to the City benchmark positions; and develop and present recommendations
regarding changes to the City's compensation structures to be competitive with the entities
included in the market data.
• Task 1 —Project Initiation
• Task 2 —Conduct Market Analysis
• Task 3 — Recommendations Development
• Task 4—Develop Strategies for a Sustainable Compensation System
• Task 5 —Present Final Results
Throughout the Project and all related presentations and reporting, Consultant shall utilize the
following grouping of job classifications (Classification Groupings): (i) appointed positions,
assistant city managers, department directors, and assistant department directors; (ii) managers
and other exempt professionals; (iii) engineering positions; and (iv) information technology (IT)
positions.
Task 1 —Project Initiation
Task Summary:
This task consists of an Initial Meeting between Consultant and key City personnel and
development of an Employee Communication Plan for the Project.
Consultant's Duties:
Initial Meeting
Consultant shall:
Meet with the City's designated project team and other key stakeholders and
advisors selected by the City to discuss a Project strategy that will facilitate a
smooth and effective working relationship and a successful outcome. During this
meeting Consultant will:
• Receive and review data from the City;
• Discuss criteria used in selecting benchmark entities and review, revise (if
Compensation and Classification Studies Page 8 of 24
needed), and finalize the list of benchmark organizations;
• Confirm the methodology to be used in analyzing the City-provided market
benchmark entities to determine compensation structure used for positions
that are comparable to the City positions being benchmarked;
• Discuss the City's current compensation structures and potential design
changes;
• Finalize the timeline and specific dates for deliverables;
• Clarify Consultant's and City's roles in each Project phase;
• Establish parameters and protocols for keeping the City's project team
updated and informed; and
• Identify data or information needed to support the overall assignment.
Employee Communication Plan
Consultant shall:
In consultation with the City's Human Resources Department, develop and
implement a plan for communicating to City employees the purpose and scope of
the Project; for addressing questions that are frequently asked about compensation
studies; and for communicating any changes made as a result of the Project.
City Participation Required:
City will:
Identify a project team that will be responsible for coordinating City efforts in
connection with the Project.
Provide a suitable meeting room for the Initial Meeting.
Ensure attendance of the City project team and other identified key stakeholders
and advisors.
Provide Consultant with the following information for each of the 134 City
benchmark positions, with such information to be provided in an electronic format
agreed to by Consultant and City:
• Salary structures;
• Applicable current personnel policy documents;
• Organization charts;
• Job descriptions in an editable format such as Microsoft Word; and
• Employee census data.
Deliverable: Employee Communication Plan
Task 2 —— Conduct Market Analysis
Task Summary•
In this task, Consultant will review and analyze market data to draw comparisons
regarding payment structures at the City and at the benchmark entities. In connection
with this task Consultant will Develop a Study Methodology, Analyze the Market Data,
and Prepare a Report of Consultant's Findings.
Compensation and Classification Studies Page 9 of 24
Consultant's Duties:
Develop a Study Methodology
Consultant shall:
Meet with the City's designated project team to review options for conducting the
market study and advise of possible implications on the design of future pay
structures and policies; to develop an understanding of the City's overall goals
and strategy regarding total compensation; and to develop a strategy for
conducting the market study consistent with the goals and strategy. As part of
this process, Consultant will solicit information to develop a clear understanding
of key issues, including:
• The types of entities (public and/or private sector entities) the City competes
with for employees, and the specific entities that are the City's primary
competitors, from which and to which City employees most often go.
• Field- and occupation-specific issues affecting particular groups (e.g.,
engineering and information technology personnel) that are important to
consider in designing the market study.
• Weighting to be used, if any, in drawing comparisons with data from private
sector employers and other public sector employers.
Analyze the Market Data
Consultant shall:
Design a searchable and sortable Microsoft Access database for comparing pay
structure information of the City, the benchmark entities, and others.
Populate the database with information regarding the City's pay structures, the
City-provided market data, and private sector data from published data sources, as
applicable.
Analyze information in the database to:
• Determine the City's market position relative to the average and 50th
percentile (median) of the pay range minimum, midpoint, maximum, and
actual average for each benchmark job title;
• Compare identified averages to the City's pay ranges to determine the City's
market position for each job title and occupational group;
• analyze the competitiveness of the City's actual average pay;
• Segment findings to reflect, as applicable, different employer groups or
industry sectors included in the study; and
• Geographically adjust market data as needed for respondents outside of the
metro area, using current cost of labor differentials from the Economic
Reseach Institute (ERI) Geographic Assessor.
On completion of the Project, provide the City with an electronic copy of the
database and assign all of Consultant's right, title, and interest in the database to
the City.
Prepare a Report of Consultant's Findings
Consultant shall:
Compensation and Classification Studies Page 10 of 24
Prepare a report detailing the methodology and findings of its analysis of the
market data, with the report to include, at a minimum, the following information:
• Executive summary briefly describing Consultant's key findings;
• Description of the study objectives and methodologies;
• Analysis and findings regarding the City's competitive market position with
regard to pay for each of the 134 listed benchmark positions and their
associated job families;
• Analysis of the City's competitive market position with regard to total
compensation for each of the benchmark positions;
• Tables summarizing and quantifying the City's competitive positions;
• Appendices showing detailed information from the market study, arranged
by position
Deliverables: Fully functional comparative pay database in Microsoft Access
Citv Participation Required:
The City will meet with and assist Consultant in the development of the study
methodology, respond to Consultant's questions and requests for clarification during the
analytical process, review and provide feedback on initial draft report, and approve final
report.
Task 3— Recommendations Development
Task Summary:
In this task Consultant will recommend revisions to the City's compensation structures
and amounts in light of the market analysis. In this task Consultant will Update Pay
Structures and Design Recommended Salary Schedules; Recommend Pay Grade
Assignments in New Pay Structures; and Determine Cost Impact.
Consultant's Duties:
Update Pay Structures and Design Recommended Salary Schedules
Consultant shall, in consultation with the City project team:
Update the City's existing pay structures and develop recommended revised
salary structures for Engineering and Information Technology career families
with such structures to be consistent with the market findings and the City's pay
philosophy
Revise the City's pay schedules by realigning ranges in light of the market data
analysis. Revised schedules will consist of pay grades with minimum, midpoint,
and maximum pay rates with consistent intervals between grades (between five
and ten percent) and consistent range widths (between forty and sixty percent)
with exact percentages to be determined following consultation with the City
project team and other pertinent City stakeholders.
Develop pay schedules for the Classification Groupings listed.
Compensation and Classification Studies Page 1 I of 24
Recommend Pay Grade Assignments in New Pay Structures
Consultant shall:
Prepare and present initial recommendations for grade assignments for all jobs in
the proposed revised pay structures. In particular Consultant will:
• Recommend grade assignments for benchmark jobs based on the market
study findings with grades to be within 5% of the market average at the
midpoint;
• Recommend grade assignments for non-benchmark jobs based on feedback
with the City project team;
• Review the grade assignments with the project team, highlighting all
significant changes from the City's existing pay relationships.
Following City review and feedback on initial recommendations, finalize the
grade assignments as part of its final recommendations with the goal of having
the updated schedules and new structures 1) be market based, 2) consider the
comparable worth based on job duties and competencies, and 3) be easily
understandable and usable by managers and employees.
Determine Cost Impact
Consultant shall:
Following City approval of the updated schedules and the new pay schedules,
Consultant shall calculate the initial and multi-year cost of implementation.
In consultation with the project team, determine criteria to be used in placing each
employee within his or her assigned grade of the revised pay structure on the day
of implementation. Possible criteria may include:
• Length of time the employee has been in the position;
• Total length of time the employee has worked for the City;
• An employee's current relative position in his or her salary range;
• The City's desired market position for salaries;
• Considerations related to pay compression and internal equity;
• Results of recent performance appraisals.
Based on the City-approved placement criteria, identify each employee's
recommended salary within the applicable revised pay range and determine the
first year annual cost and a multi-year plan for implementing the pay schedule
changes.
At City request and based on the project team's direction, model up to two
different cost estimates with each estimate to reflect a different set of agreed
implementation criteria, including, but not limited to a different phase-in period.
City Participation Required:
City will:
In connection with the updating of pay structures and designing of new salary
schedules, provide direction and input regarding the City's objectives and goals
and review and approve the pay schedule design.
Compensation and Classification Studies Page 12 of 24
In support of Consultant's recommending pay grade assignments, provide
information on current pay grade assignments, respond to questions and engage
in discussion necessary to make appropriate assignments, and review and
approve methodology and pay grade assignments.
As part of the cost impact determination, provide employee census information,
furnish information on the City's fiscal ability and conditions, discuss issues
related to the development implementation criteria, approve implementation
criteria, provide criteria for cost model(s), and review and approve the cost
model(s).
Task 4—Develop Strategies for a Sustainable Compensation System
Task Summary:
In this task, Consultant will work with the City to develop strategies for maintaining and
updating the compensation system going forward to take into account and respond to
changes in market conditions as well as City objectives and needs.
Consultant's Duties:
Consultant shall:
Facilitate discussions on successful approaches for system maintenance,
including discussions on policy changes that are consistent with best practices,
with discussions to address:
■ Policy changes to guide future compensation approaches
■ Identification and development of key design changes to ensure
sustainability
■ Integration of decision-making processes into the City's annual budget
and other business processes
■ Facilitation of discussions and briefings with key decision-makers
Provide documentation of proposed changes and assist in the communication
of these changes to the City's management team.
Review the City's current Compensation Administration Guidelines and make
recommendations for revisions that will:
■ Clearly define the approach to be used in evaluating market changes
■ Identify steps to recommend structure adjustments
■ Provide options for movement through pay ranges
In consultation with the City, develop and produce a written set of guiding
policies and system maintenance standards
Develop and produce a set of written Administrative Guidelines for continued
maintenance of the Compensation System
Deliverable: Draft and final Report on Sustainability Strategies; Guiding Policies and
System Maintenance Standards; and Administrative Guidelines
Compensation and Classification Studies Page 13 of 24
City Participation Required:
The City will meet with Consultant staff to provide direction on strategy and
methodology in developing options and approaches for long-term sustainability; respond
to questions and provide clarification of policies and facilitate discussion meetings to
assist Consultant in completing research and facilitating discussion of options; and
review Consultant's draft report, provide feedback, and approve the final report.
Task 5— Present Final Results
Task Summary:
Conduct reference checks and background screening on finalist candidates and coordinate
and assist with on-site interviews of selected finalists at City offices.
Consultant's Duties:
Consultant shall:
Develop and deliver at least one (1) on-site presentation that addresses, at a minimum:
■ Background and reasons for the project
■ Objectives and goals of the project
■ Methodology used to conduct our analysis
■ Key findings and outcomes
■ Consultant's recommendations, including potential implications of those
recommendations
Provide the draft presentation for review by the City's project team
After taking into consideration City comments and input, finalize the presentation
Assign a senior member of Consultant's team to deliver the presentation, in conjunction
with a senior member of the City's project team.
Deliverables: Draft and final Presentation
City Participation Required:
City will review and provide feedback on the draft presentation and assign a senior
member of the project team to participate in the presentation.
Compensation and Classification Studies Page 14 of 24
PROJECT II—Classification Study
Overview
Consultant shall review the classification structure and process currently employed by the City
and will research, develop, and propose changes to upgrade or replace the City's current job
classification system.
All proposed changes will be designed to meet the City's current and anticipated needs, to
support or be integrated with the recommended compensation structures developed in connection
with Project I, and to produce a structure and process that is in conformance with all applicable
Federal and State employment legislation such as the Fair Labor Standards Act (FLSA), Title
VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967
(ADEA), the Uniform Guidelines on Employee Selection Procedures (1978), and the Americans
with Disabilities Act of 1990 (ADA).
■ Task I —Develop Job Analysis Questionnaires
■ Task 2 —Conduct Employee Presentations
■ Task 3 —Recommendations Development
■ Task 4—Conduct Employee Interviews
■ Task 5 —Develop and Document a Recommended Classification Structure
■ Task 6 —Recommend Individual Position Assignments to Classifications
■ Task 7 —Conduct FLSA Analysis
■ Task 8 —Design and Document a Job Evaluation Approach
■ Task 9 —Develop Job Descriptions
■ Task 10—Develop Classification Manual
Task 1 —Develop Job Analysis Questionnaires
Task Summary:
For this task Consultant will work with the City's assigned project team to develop a
questionnaire to be used to obtain information from City employees for use throughout
the Project, including information bearing on job classification and FLSA status.
Consultant's Duties:
Consultant shall:
Develop a customized Job Analysis Questionnaire (JAQ) reflecting the needs of the City
and the direction of the Project Team to elicit information to be used in evaluating job
series distinctions and internal equity determinations, developing job descriptions, and
making FLSA determinations.
Compensation and Classification Studies Page 15 of 24
Develop a customized, City-specific JAQ that asks employees to provide information
regarding:
■ Essential duties and responsibilities, including approximate percentage
of time associated with each duty or responsibility
■ The technology and tools used and knowledge, skills, and abilities
associated with each essential duty or responsibility
■ Supervisory or work leadership duties including questions specific to
FLSA exemption standards
■ Other responsibilities, such as program management and/or financial,
budgetary, or administrative oversight
■ Minimum requirements for new employees in the job, such as education,
experience, and certifications/licenses
■ Computer skills necessary to perform the essential functions of the job,
including level of skill related to specific software, programming
languages, or systems
■ Level of decision making on the job including whether the job involves
using discretion and independent judgment (for FLSA exemption
determinations)
■ Provide an opportunity for employees to voice their opinions and
perceptions of the current classification structure
■ Physical requirements of the job (including frequency of specific
physical activities and amount of lifting/moving)
■ Working environment, including exposure to risks, hazardous situations,
etc.
■ Supervisor's review, which would include comments regarding the
employee's answers, as well as opinions regarding the appropriateness of
the current title, comparison to other jobs within a job series, and similar
issues
Use information collected through the JAQs and employee interviews to develop
recommended changes to the classification structure and develop job descriptions, as well
as to define the differences among jobs for internal equity alignment.
Deliverables: Draft and finalized JAQ forms
City Participation Required:
City will review drafts and approve final JAQs, collect completed JAQs from managers
and department directors, and sort JAQs by job title and send them to the Consultant.
Task 2—Conduct Employee Presentations
Task Summary:
In this task, Consultant will conduct employee presentations explaining the JAQs and the
overall Project.
Compensation and Classification Studies Page 16 of 24
Consultant's Duties:
Consultant shall:
Conduct up to two (2) days of on-site employee presentations to introduce the project and
to explain the JAQ process and employees' roles, explain project objectives, and answer
employee questions.
Distribute the JAQs, explain the intent and definitions associated with each section of the
questionnaire, and provide examples.
City Participation Required:
City will advise employees of the JAQs and encourage attendance and participation,
reserve room and arrange for audio-visual media, review and approve presentation
language, and attend presentations.
Task 3—Job Analysis
Task Summary:
For this task, Consultant will analyze data from the JAQs to begin process of developing
proposed classifications.
Consultant's Duties:
Consultant shall:
Perform a detailed analysis of the City's jobs, reviewing each JAQ within a job title and
series and documenting distinguishing characteristics that define a particular job title
within the job family. Characteristics to be noted include:
■ Typical tasks or duties
■ Supervisory responsibilities
■ Minimum education, experience, and certification requirements
■ Ability to make decisions that affect a work group, department, and/or
City
■ Level of discretion and judgment exercised
• Complexity of tasks, decisions, and actions
■ Provide an opportunity for employees to voice their opinions and
■ Results of actions
■ Other distinguishing characteristics as requested by the City
City Participation Required:
City will provide employee census data and information on the current job title structure
in electronic format, respond to questions, and provide clarification as needed.
Task 4—Conduct Employee Interviews
Task Summary:
In this task, Consultant will conduct a series of on-site interviews either in groups (for
Compensation and Classification Studies Page 17 of 24
employees in the same job series performing similar functions and responsibilities) or
individually (for single-incumbent jobs or highly specialized functions) in order to
elaborate on information obtained through the JAQs and gain employee insight and input
on the classification process.
Consultant's Duties:
Consultant will:
Conduct up to two (2) days of on-site employee interviews in order to:
■ Validate and clarify information contained in the JAQs
■ Understand employees' views on the key distinguishing characteristics
among jobs
■ Provide an opportunity for employees to voice their opinions and
perceptions of the cuff ent classification structure
City Participation Required:
City will assist with selecting employees to participate, arrange for interview rooms, and
facilitate scheduling and arrangements.
Task 5—Develop and Document a Recommended Classification Structure
Task Summary:
In this task, Consultant will develop a comprehensive classification architecture and
documentation explaining how it is to be used as well as how it was developed and can
be modified to encompass new and different positions.
Consultant's Duties:
Consultant shall:
Develop and document a recommended job classification structure for the City
containing, at a minimum, the following information:
■ Newly revised job classification factors and an evaluation administration
manual explaining how to classify jobs into an overall City wide
classification structure for current and possible future job classifications or
job descriptions
■ List of job titles, with titling guidelines explaining the standards to be used
in including terms such as "Coordinator," "Manager," or "Director" in job
titles
■ Recommended minimum qualifications and requirements (such as
education, experience, certifications, and licensing) associated with each
job title
■ Explanation of characteristics used in distinguishing among jobs within a
job family or career path (such as key differences between a Secretary and
an Administrative Assistant)
■ A list of exempt and non-exempt pay grades assigned to corresponding
rankings of classifications using an empirical ranking methodology such
as point factor analysis, or other widely recognized job evaluation systems
Compensation and Classification Studies Page 18 of 24
■ New job descriptions and classifications for all current job descriptions
and classifications that integrate into the newly proposed classification
structure system; and,
■ Detailed documentation and training for the ongoing maintenance of the
classification structure system
Coordinate and provide assistance with employee meetings and provide City staff with
operational assistance with the compilation of surveys, reports, and other work products
that result from this Project
Produce and provide administrative manuals and training on the new classification
system and procedures
Taking into account City-provided historical data, provide recommendations regarding
the methodology and procedures used by the City to classify positions, including
recommended staffing levels for the Classification and Compensation Division of HR
necessary to provide efficient and effective processes,.
Produce a recommended classification architecture that clearly defines and documents all
classifications in order to facilitate both internal equity and external market comparisons,
with such classification architecture to be presented in the form of Classification Matrices
categorizing jobs by job series and establishing the primary distinguishing characteristics
within each series.
Deliverables: Draft and finalized Classification Matrices and supporting documentation
City Participation Required:
City will review Consultant's draft structure and provide comments and approve the final
classification structure.
Task 6—Recommend Individual Position Assignments to Classifications
Task Summary:
Conduct reference checks and background screening on finalist candidates and coordinate
and assist with on-site interviews of selected finalists at City offices.
Consultant's Duties:
Consultant shall:
Recommend placement of each City position/employee within the structure, based on
information collected from the JAQs and the interviews.
Identify the most appropriate match between a position's individual responsibilities and
the job responsibilities described in the classification matrices.
Produce and deliver a spreadsheet (based on payroll information provided by the City's
Human Resources staff) identifying each position, the incumbent employee, his/her
current classification title, and Consultant's recommended classification assignment.
Compensation and Classification Studies Page 19 of 24
Deliverables: Recommended classification-assignment spreadsheet
City Participation Required:
City will respond to questions and provide clarification as requested and shall be
responsible for giving final approval for position assignments.
Task 7—Conduct FLSA Analysis
Task Summary:
In this task, Consultant will analyze all City positions to determine whether they are
subject to or exempt from the requirements of the Fair Labor Standards Act (FLSA) and
note the basis for exemptions as applicable.
Consultant's Duties:
Consultant shall:
Analyze each City position to determine its FLSA status (exempt/non-exempt) based on
Department of Labor guidance on the following exemption tests:
■ Executive Exemption
Administrative Exemption
■ Learned Professional Exemption
■ Creative Professional Exemption
■ Computer Employee Exemption
■ Outside Sales Exemption
■ Highly Compensated Exemption
Deliver the results of its analysis in a written report containing each job's current
exemption status, Consultant's recommended exemption status, indication of the
exemption test(s) applicable to each recommended exempt position, brief description of
facts bearing on outcome of test, and rationale for Consultant's recommendations.
Deliverables: Written FLSA exemption report
City Participation Required:
City will provide information on current FLSA status.
Task 8—Design and Document a Job Evaluation Approach
Task Summary:
Consultant will confer with City staff to determine the approach and philosophy the City
currently uses in evaluating and classifying employment positions and analyze the City's
current classifications to determine the manner in which criteria are and should be
weighted in evaluating jobs and making classifications in the future.
Consultant's Duties:
Compensation and Classification Studies Page 20 of 24
Consultant shall:
Review all existing City job descriptions and determine the relative value that the City
places on position requirements and functions (compensable factors) in evaluating
positions and making classifications with particular analysis of the following:
■ Formal Education
■ Experience
■ Management/Supervision
■ Human Collaboration
■ Freedom to Act
■ Technical Skills
■ Fiscal Responsibility
■ Working Conditions
Using the information gained in the analysis, prepared a draft classification system
including recommended placement of all City positions.
Convene a Job Evaluation Team (JET) consisting of management-level City personnel to
review the results of Consultant's analysis, including weighting and the initial placement
of jobs within the new classification system.
After taking into account the JET's input, prepare a final hierarchy reflecting sound
compensation practices and the City's collective organizational values and establishing
relative internal equity with compensation structure driven by market comparisons.
Once the project team has reviewed and approved the details of the job evaluation system
(factor definitions, level definitions, point values, etc.), apply the approach to the jobs as
they are defined in the new classification structure to produce a spreadsheet that shows all
job titles and Consultant's recommended level.
Deliverables: Draft and finalized Job Evaluation Approach
City Particivation Required:
City will provide information on current job evaluation approach, review Consultant's
draft and provide comments, and approve the final Job Evaluation Approach.
Task 9—Develop Job Descriptions
Task Summary:
Consultant will review the City's existing job descriptions and prepare and present
recommendations for updated job descriptions.
Consultant's Duties:
Consultant shall:
Consult with the City's designated project team to review current job descriptions and
determine whether the City wishes to maintain or modify the current format.
Compensation and Classification Studies Page 21 of 24
If City elects to modify the format, assist City in developing a consistent format for all
class specifications, with an easy-to-read and easy-to-update layout.
Following City approval of the basic format, update job descriptions for all job titles
using the information obtained from the Job Analysis Questionnaire and employee
interviews and develop specifications for any new classes added to the structure as a
result of the classification analysis.
Deliver to City draft Job Descriptions in Microsoft Word format.
Deliverables: Draft Job Descriptions
City Participation Required:
City will provide Consultant with current job descriptions in Microsoft Word, review the
draft Job Descriptions produced by Consultant, and be responsible for finalizing Job
Descriptions to reflect input from City stakeholders.
Task 10—Develop Classification Manual
Task Summary:
Consultant will develop a position classification manual for use by the City's Human
Resources Department in implementing the revised/new classification system.
Consultant's Duties:
Consultant shall:
Develop and provide the City's project team with a draft Classification Manual that
includes:
■ A summary of the general background and purpose of the manual
■ A description of the individual(s) or department(s) authorized and
responsible for maintenance of the classification systems
■ Matrices showing classifications of all City positions
■ Description of the job evaluation system features, content, and application
■ Description of basic philosophy and process for making classification
determinations
■ Policies and procedures for requesting a classification review or
modifications/additions to classification structure or grade assignments
■ All associated forms and documents
Following receipt of City input, revise and present to the City a finalized Classification
Manual.
Deliverables: Draft and finalized Classification Manuals
City Participation Required:
City will review the draft manual and provide feedback to be incorporated into the
Compensation and Classification Studies Page 22 of 24
finalized Classification Manual.
Compensation and Classification Studies Page 23 of 24
EXHIBIT B
Compensation Schedule
CLASSIFICATION AND COMPENSATION STUDY FIXED FEE
PROJECT I—COMPENSATION STUDY
Month One $20,000.00
Month Two $20,000.00
Month Three $20,000.00
Month Four $20,000.00
Presentation of Final Results $20,000.00
TOTAL FOR PROJECT 1 $100,000.00
PROJECT II—CLASSIFICATION STUDY*
Month One $40,000.00
Month Two $40,000.00
Month Three $40,000.00
Month Four $40,000.00
Presentation of Final Results $40,000.00
TOTAL FOR PROJECT II $200,000.00
Compensation and Classification Studies Page 24 of 24
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 7/22/2014 —Ordinance No.21335-07-2014
DATE: Tuesday, July 22,2014 REFERENCE NO.: **C-26863
LOG NAME: 14PAYSTUDY
SUB.IECT:
Authorize Execution of Agreement with the Segal Company Western States Inc.,in the Amount of
$300,000.00 to Conduct a Study of the City's Classification and Compensation Plans for General Employees
and Adopt Approriation Ordinance (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1.Adopt the attached supplemental appropriation ordinance increasing the estimated receipts and
appropriations in the General Fund—Human Resources Department in the amount of$246,475.35 and
decreasing the'unassigned Fund Balance by the same amount; and
2.Authorize the execution of an Agreement with the Segal Company Western States Inc.,in the amount of
$ QQ,OQ4.00 to conduct a study of the City's Classification,and Compensation Plans for General Employees.
DISCUSSION:
The purpose of this Mayor and Council Communication is to seek authorization to enter into a new
Agreement with the Segal Company Western States Inc.,to conduct a study of the City's Classification and
Compensation Plans for its general employees.As of February 24 2014,the City employs 3,745 general
employees in 435 active job classifications.
The current Classification and Compensation System was put in place following a study conducted by Ralph
Anderson and Associates in 1995 (M&C C-15089).Prior to that time,the City had commissioned a similar
Classification and Compensation Study in 1976.
The City issued a Request for Proposals(RFP)on April 16 2014.The bid was advertised in the Fort Worth
Star—Telegram every Wednesday starting on April 16,2014 through May 14,2014.Twenty—four vendors
were solicited from the purchasing database;five responses were received.
The proposals were thoroughly reviewed by an evaluation team consisting of staff from the Human
Resources Department.The evaluation team ranked the proposals based on the following factors:strategy,
prior experience;demonstrated understanding of tasks,availability and capacity to deliver
'services/eXperlence of proposed staff and cost.Three finalists were selected and made presentations.
Following the presentations,the evaluation team determined that Segal Company Western States Inc.,
provides the best overall solution to the City.
The study of the City'-s Classification and Compensation Plans will consist of two projects:(1)Review the
City's current general-employee job classification system,research alternatives and best practices and
develop and propose modifications to improve or replace the current plans/system and(2)Research,develop
and recommend coinpen"sation structures for the City's general—employee exempt and non—exempt job.
classifications,
The project will be assisted by a functional committee consisting of department level managers and
employees who will coordinate with vendor staff and City employees to ensure proper communication of the
project and appropriate classification of jobs,their titles and their essential functions.The functional
committee will also work with a steering committee consisting of department heads and an assistant city
manager regarding approval of appropriate classification and compensation levels for positions during the
project.Following completion of the project,the steering committee will present strategic and long term
recommendations for final approval and will work to oversee implementation of approved recommendations.
NOTE ON FUNDING—The Water and Sewer Operating Fund has identified$53,524.65 in anticipated
savings in the current year's budget for its contribution toward the overall cost of the study.The remaining
balance of$246,47535 will be funded from the General Fund using available fund balance.
ADMINISTRATIVE CHANGE ORDER—An administrative change order or increase may be made by the
City Manager;in the amount up to$50,000'.00 and does not require specific City Council approval as long as
sufficient funds have been appropriated.
AGREEMENT TERM—Upon City Council approval;the Agreement shall begin on July 23 2014 and end
on July 22,2015.1
RENEWAL OPTIONS—The Agreement may be renewed up to four additional one—year terms at the City's
option.This action does not require`specific City Council approval provided that the City Council has
appropriated-sufficient funds to satisfy the City's obligations during the renewal term.
FISCAL INFORMATION:
The Financial Management Services Director certifies that upon approval of the above recommendations and
adoption of the attached supplemental ordinance,funds will be available in the current operating budget,as
appropriated,of the General Fund.An anticipated amount of$53,524.65 in savings has been identified in the
Curren#.op xa�ing_bnclget,.as,appropriated,of the Water and Sewer.QperatingFun..d.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
GG01 531200 0141000 $246.475.35 PE45 531200 0601000 $26.762.33
PE45 531200 0701000 $26.762.32
GG01 531200 0141000 $246.475.35
CERTIFICATIONS:
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Brian Dickerson (7783)
Additional Information Contact: Harold Cates (7772)
ATTACHMENTS
1. 14PAYSTUDY2014 AO(3).docx
2. RFP 14-0129 MWBE Waiver.pdf