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HomeMy WebLinkAbout24-82 Resolution No. 24-82 RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT WITH JENNIFER L. BERGMANN & ASSOCIATES, INC. FOR PROFESSIONAL SERVICES IN CONNECTION WITH 2024 COMPENSATION STUDY BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Richard G. Kozal, City Manager, and Kimberly A. Dewis, City Clerk, be and are hereby authorized and directed to execute an Agreement on behalf of the City of Elgin with Jennifer L. Bergmann & Associates, Inc., for professional services in connection with 2024 compensation study, a copy of which is attached hereto and made a part hereof by reference. s/ David J. Kaptain David J. Kaptain, Mayor Presented: March 6, 2024 Adopted: March 6, 2024 Omnibus Vote: Yeas: 9 Nays: 0 Attest: s/Kimberly Dewis Kimberly Dewis, City Clerk AGREEMENT THIS AGREEMENT is made and entered into this 6th day of March ,2024,by and between the CITY OF ELGIN, an Illinois municipal corporation (hereinafter referred to as "CITY") and Jennifer L Bergmann & Associates. Inc. (Name of the Firm), a(n) S Corporation (hereinafter referred to as"VENDOR"). WHEREAS, the CITY desires to engage the VENDOR to furnish certain professional services in connection with 2024 Compensation Study(hereinafter referred to as the PROJECT); and WHEREAS, the VENDOR represents that it is in compliance with Illinois Statutes relating to professional registration of individuals and has the necessary expertise and experience to furnish such services upon the terms and conditions set forth herein below. NOW, THEREFORE, it is hereby agreed by and between the CITY and the VENDOR that the CITY does hereby retain the VENDOR for and in consideration of the mutual promises and covenants contained herein, the sufficiency of which is hereby acknowledged to act for and represent it in the matters described herein, subject to the following terms and conditions and stipulations,to-wit: 1. SCOPE OF SERVICES A. All work hereunder shall be performed under the direction of the Human Resources Director of the CITY,herein after referred to as the "DIRECTOR" B. VENDOR shall provide the services to the CITY for the PROJECT as detailed in Attachment A hereto. 2. PROGRESS REPORTS A. Progress will be recorded on the project schedule and submitted monthly as a component of the Status Report described in B below. B. The VENDOR will submit to the DIRECTOR monthly a status report keyed to the project schedule. A brief narrative will be provided identifying progress, findings and outstanding issues. 3. WORK PRODUCTS All work products prepared by the VENDOR pursuant hereto including, but not limited to, reports, designs, calculations, work drawings, studies, photographs, models and recommendations shall be the property of the CITY and shall be delivered to the CITY upon request of the DIRECTOR provided,however,that the VENDOR may retain copies of such work products for its records. Such work products are not intended or represented to be suitable for reuse by the CITY on any extension to the PROJECT or on any other project, and such reuse shall be at the sole risk of the CITY without liability or legal exposure to the VENDOR. 4. PAYMENTS TO THE VENDOR(Periodic Method) The CITY shall make monthly payments to the VENDOR based upon actual progress within 30 days after receipt and approval of invoice. Said monthly total payments to the VENDOR shall not exceed $75.900, and full payments for each task shall not be made until the task is completed and accepted by the CITY. 5. INVOICES A. The VENDOR shall submit invoices in a format approved by the CITY. Progress reports(2A above)will be included with all payment requests. B. The VENDOR shall maintain records showing actual time devoted and cost incurred. The VENDOR shall permit the authorized representative of the CITY to inspect and audit all data and records of the VENDOR for work done under this Agreement. The VENDOR shall make these records available at reasonable times during the Agreement period,and for a year after termination of this Agreement. 6. TERMINATION OF AGREEMENT Notwithstanding any other provision hereof, the City may terminate this Agreement at any time for convenience or any other reason upon thirty (30) days prior written notice to Jennifer L Bergmann &Associates. Inc. without penalty. In the event this Agreement is so terminated Jennifer L Bergmann&Associates.Inc. shall be paid for goods provided and/or services actually performed, and reimbursable expenses actually incurred as may be specifically provided for herein prior to such termination,except that such payment and/or reimbursement shall not in any event exceed the total amount set forth for the total contemplated payment provided for herein. Additionally, in the event this Agreement is so terminated, Jennifer L Bergmann & Associates. Inc. shall immediately cease the expenditure of any funds paid to Jennifer L Bergmann &Associates. Inc. by the City and shall refund to the City any unearned or unexpended funds. 7. TERM This Agreement shall become effective as of the date the VENDOR is given a notice to proceed and, unless terminated for cause or pursuant to Article 6 or 9, shall be deemed concluded on the date the CITY determines that all of the VENDOR's work under this Agreement is completed. A determination of completion shall not constitute a waiver of any rights or claims which the CITY may have or thereafter acquire with respect to any term or provision of the Agreement.The contract term shall be one year with four one year options to renew at the City's sole discretion. 8. NOTICE OF CLAIM If the VENDOR wishes to make a claim for additional compensation as a result of action taken by the CITY,the VENDOR shall give written notice of his claim within 15 days after occurrence of such action. No claim for additional compensation shall be valid unless so made.Any changes in the VENDOR's fee shall be valid only to the extent that such changes are included in writing signed by the CITY MANAGER and the VENDOR. Regardless of the decision of the DIRECTOR relative to a claim submitted by the VENDOR, all work required under this Agreement as determined by the DIRECTOR shall proceed without interruption. 9. BREACH OF CONTRACT If either party violates or breaches any term of this Agreement, such violation or breach shall be deemed to constitute a default, and the other party has the right to seek such administrative, contractual or legal remedies as may be suitable to the violation or breach; and, in addition, if either party,by reason of any default, fails within fifteen(15)days after notice thereof by the other party to comply with the conditions of the Agreement,the other party may terminate this Agreement. In the event this agreement is terminated pursuant to a breach or alleged breach by CITY, VENDOR damages shall be limited to a prorata ad valorem fee. VENDOR shall not be entitled to any additional damages of whatsoever nature, including but not limited to consequential, indirect or other fees or damages. 10. INDEMNIFICATION To the fullest extent permitted by law,VENDOR agrees to and shall indemnify,defend and hold harmless the CITY, its officers,employees,agents,boards and commissions from and against any and all claims, suits,judgments,costs,attorney's fees,damages or other relief, including but not limited to worker's compensation claims and any and all claims made by or against the city based on additional material costs or any other costs incurred as a result of damage to property or increased cost resulting from an inaccurate bid by VENDOR without regard to any consideration of the CITY'S receipt of"increased value"or"benefit of bargain"in any way resulting from or arising out of negligent actions or omissions of the VENDOR in connection herewith, including negligence or omissions of employees or agents of the VENDOR arising out of the performance of this Agreement. In the event of any action against the CITY, its officers, employees, agents, boards or commissions, covered by the foregoing duty to indemnify,defend and hold harmless such action shall be defended by legal counsel of the CITY's choosing. The provisions of this paragraph shall survive any expiration,completion and/or termination of this Agreement. 11. NO PERSONAL LIABILITY No official,director,officer, agent or employee of the CITY shall be charged personally or held contractually liable under any term or provision of this Agreement or because of their execution, approval or attempted execution of this Agreement. 12. INSURANCE A. Comprehensive Liability. The VENDOR shall provide, pay for and maintain in effect,during the term of this Agreement,a policy of comprehensive general liability insurance with limits of at least $1,000,000 aggregate for bodily injury and $1,000,000 aggregate for property damage. The VENDOR shall deliver to the DIRECTOR a Certification of Insurance naming the CITY as additional insured. The policy shall not be modified or terminated without thirty(30)days prior written notice to the DIRECTOR. The Certificate of Insurance which shall include Contractual obligation assumed by the VENDOR under Article 10 entitled "Indemnification"shall be provided. This insurance shall apply as primary insurance with respect to any other insurance or self-insurance programs afforded to the CITY. There shall be no endorsement or modification of this insurance to make it excess over other available insurance, alternatively, if the insurance states that it is excess or prorated, it shall be endorsed to be primary with respect to the CITY. B. Comprehensive Automobile Liability. Comprehensive Automobile Liability Insurance covering all owned,non-owned and hired motor vehicles with limits of not less than$500,000 per occurrence for damage to property. C. Combined Single Limit Policy. The requirements for insurance coverage for the general liability and auto exposures may be met with a combined single limit of $1,000,000 per occurrence subject to a$1,000,000 aggregate. D. Professional Liability. The VENDOR shall carry Professional Liability Insurance Covering claims resulting from error, omissions or negligent acts with a combined single limit of not less than $1,000,000 per occurrence. A Certificate of Insurance shall be submitted to the DIRECTOR as evidence of insurance protection.The policy shall not be modified or terminated without thirty (30) days prior written notice to the DIRECTOR. 13. INTENTIONALLY OMITTED 14. NONDISCRIMINATION In all hiring or employment made possible or resulting from this Agreement, there shall be no discrimination against any employee or applicant for employment because of sex, age, race, color,creed, national origin,marital status, of the presence of any sensory, mental or physical handicap, unless based upon a bona fide occupational qualification, and this requirement shall apply to, but not be limited to, the following: employment advertising, layoff or termination,rates of pay or other forms of compensation and selection for training, including apprenticeship. No person shall be denied or subjected to discrimination in receipt of the benefit of any services or activities made possible by or resulting from this Agreement on the grounds of sex,race,color,creed,national origin, age except minimum age and retirement provisions, marital status or the presence of any sensory,mental or physical handicap.Any violation of this provision shall be considered a violation of a material provision of this Agreement and shall be grounds for cancellation, termination or suspension, in whole or in part, of the Agreement by the CITY. 15. ASSIGNMENT AND SUCCESSORS This Agreement and each and every portion thereof shall be binding upon the successors and the assigns of the parties hereto; provided, however,that no assignment shall be made without the prior written consent of the CITY. 16. DELEGATIONS AND SUBVENDORS Any assignment, delegation or subcontracting shall be subject to all the terms, conditions and other provisions of this Agreement and the VENDOR shall remain liable to the CITY with respect to each and every item,condition and other provision hereof to the same extent that the VENDOR would have been obligated if it had done the work itself and no assignment, delegation or subcontract had been made. Any proposed subcontractor shall require the CITY's advanced written approval. 17. INDEPENDENT VENDOR This Agreement shall not be construed so as to create a partnership, joint venture, employment or other agency relationship between the parties hereto. 18. SEVERABILITY The parties intend and agree that, if any paragraph, sub-paragraph, phrase,clause or other provision of this Agreement, or any portion thereof, shall be held to be void or otherwise unenforceable, all other portions of this Agreement shall remain in full force and effect. 19. HEADINGS The headings of the several paragraphs of this Agreement are inserted only as a matter of convenience and for reference and in no way are they intended to define, limit or describe the scope of intent of any provision of this Agreement,nor shall they be construed to affect in any manner the terms and provisions hereof or the interpretation or construction thereof. 20. MODIFICATION OR AMENDMENT This Agreement and its attachments constitutes the entire Agreement of the parties on the subject matter hereof and may not be changed,modified,discharged or extended except by written amendment duly executed by the parties. Each party agrees that no representations or warranties shall be binding upon the other party unless expressed in writing herein or in a duly executed amendment hereof,or change order as herein provided. 21. APPLICABLE LAW This Agreement shall be deemed to have been made in,and shall be construed in accordance with the laws of the State of Illinois. Venue for the resolution of any disputes or the enforcement of any rights pursuant to this Agreement shall be in the Circuit Court of Kane County, Illinois. 22. NEWS RELEASES The VENDOR may not issue any news releases without prior approval from the CITY, nor will the VENDOR make public proposals developed under this Agreement without prior written approval from the CITY prior to said documentation becoming matters of public record. 23. COOPERATION WITH OTHER VENDORS The VENDOR shall cooperate with any other VENDORS in the CITY's employ or any work associated with the PROJECT. 24. INTERFERENCE WITH PUBLIC CONTRACTING The VENDOR certifies hereby that it is not barred from bidding on this contract as a result of a violation of 720 ILCS 5/33E et seq.or any similar state or federal statute regarding bid rigging. 25. SEXUAL HARASSMENT As a condition of this contract,the VENDOR shall have written sexual harassment policies that include, at a minimum,the following information: A. the illegality of sexual harassment; B. the definition of sexual harassment under state law; C. a description of sexual harassment,utilizing examples; D. the vendor's internal complaint process including penalties; E. the legal recourse, investigative and complaint process available through the Illinois Department of Human Rights, and the Illinois Human Rights Commission; F. directions on how to contact the department and commission; G. protection against retaliation as provided by Section 6-101 of the Human Rights Act. A copy of the policies shall be provided by VENDOR to the Department of Human Rights upon request 775 ILCS 5/2-105. 26. WRITTEN COMMUNICATIONS All recommendations and other communications by the VENDOR to the DIRECTOR and to other participants which may affect cost or time of completion shall be made or confirmed in writing. The DIRECTOR may also require other recommendations and communications by the VENDOR be made or confirmed in writing. 27. NOTICES All notices, reports and documents required under this Agreement shall be in writing and shall be mailed by First Class Mail, postage prepaid, addressed as follows: A. As to CITY: Christina Webb Human Resources Director City of Elgin 150 Dexter Court Elgin, Illinois 60120-5555 B. As to VENDOR: Jennifer Bergmann The HR Group 2s750 Lakeside Drive Glen Ellyn, IL 60137 28. COMPLIANCE WITH LAWS Notwithstanding any other provision of this Agreement, it is expressly agreed and understood that in connection with the performance of this Agreement, Jennifer L Bergmann&Associates.Inc. shall comply with all applicable Federal,State,City and other requirements of law, including, but not limited to, any applicable requirements regarding prevailing wages,minimum wage,workplace safety and legal status of employees.Without limiting the foregoing,Jennifer L Bergmann&Associates.Inc. hereby certifies,represents and warrants to the City that all of Jennifer L Bergmann & Associates, Inc.'s employees and/or agents who will be providing products and/or services with respect to this Agreement shall be legally authorized to work in the United States.Jennifer L Bergmann &Associates, Inc. _shall also,at its expense,secure all permits and licenses,pay all charges and fees,and give all notices necessary and incident to the due and lawful prosecution of the work,and/or the products and/or services to be provided for in this Agreement. The City shall have the right to audit any records in the possession or control of Jennifer L Bergmann&Associates, Inc. to determine Jennifer L Bergmann &Associates,Inc.'s compliance with the provisions of this section. In the event the City proceeds with such an audit,Jennifer L Bergmann & Associates, Inc. shall make available to the City Jennifer L Bergmann &Associates, Inc.'s relevant records at no cost to the City. Jennifer L Bergmann &Associates, Inc. shall pay any and all costs associated with any such audit up to the amount of$900. The entity submitting this bid or proposal hereby warrants and represents that to the extent it may be applicable, it is registered with the Illinois Secretary of State's Office or has been incorporated in the State of Illinois; and such entity further hereby warrants and represents that it is in good standing in the state of its incorporation or organization. Without limiting the foregoing, VENDOR hereby certifies, represents and warrants to the CITY that all VENDORS employees and/or agents located in the United States, who will be providing products and/or services with respect to this CONTRACT, shall be legal residents of the United States. This agreement may be executed in counterparts,each of which shall be an original and all of which shall constitute one and the same agreement. For the purposes of executing this agreement, any signed copy of this agreement transmitted by fax machine or e-mail shall be treated in all manners and respects as an original document. The signature of any party on a copy of this agreement transmitted by fax machine or e-mail shall be considered for these purposes as an original signature and shall have the same legal effect as an original signature. Any such faxed or e-mailed copy of this agreement shall be considered to have the same binding legal effect as an original document. At the request of either party any fax or e-mail copy of this agreement shall be re-executed by the parties in an original form.No party to this agreement shall raise the use of fax machine or e-mail as a defense to this agreement and shall forever waive such defense. The person signing THIS CONTRACT certifies that s/he has been authorized by the VENDOR to commit the VENDOR contractual and has been authorized to execute THIS CONTRACT on its behalf. IN WITNESS WHEREOF, the parties hereto have entered into and executed this agreement effective as of the date and year first written above. FOR THE CITY: FOR THE VENDOR: vf Byt°r 8 e s^y City Manager >1.101) /CID Y/77?r. :Is 11V Proposal in response to RFP #23-050 Statement of Work: Classification, Compensation, & Benefits Study September 13, 2023 Prepared for: City of Elgin Daina DeNye Purchasing Officer Prepared by: The HR Group Jennifer Bergmann — CCP, GRP Jill Rea — CCP, CPA This proposal includes data that shall not be disclosed outside the Government and City of Elgin and shall not be duplicated, used,or disclosed—in whole or in part for any purpose other than to evaluate this proposal.If,however,a Subcontract is awarded to this offeror as a result of—or in connection with—the submission of this date,the Government and the City of Elgin shall have the right to duplicate,use,or disclose the data to the extent provided in resulting subcontract.This restriction does not limit the Government's and City of Elgin's right to use the information contained in this data if it is obtained from another source without restriction.The data subject to this are contained in the following pages and other documents related to this proposal. The HR Group RFP V23-050 General: PART A Proposal Part I: Introduction The HR Group 2s750 Lakeside Drive Glen Ellyn, IL 60137 September 13, 2023 Daina DeNye Procurement Specialist The City of Elgin Dear Daina, The HR Group is pleased to submit this proposal in response to the RFP #23-050 for Compensation and Benefits Consulting Services for the City of Elgin ("the City"). Jennifer Bergmann, Principal/Partner of The HR Group, has engaged Jill Rea, President of RCS, to work in partnership on the City of Elgin("the City")project,if awarded. The HR Group and RCS have been affiliated since 2017 and have collaborated on several very successful consulting projects with our complementary compensation expertise. The HR Group is more than qualified to perform and deliver the highest value of compensation consulting services to exceed the expectations outlined in the RFP. All processes and deliverables would also be completed according to best practices and applicable federal,state, and city laws. The HR Group is prepared to submit the required certificate(s) of insurance to the City of Elgin for review and approval within fifteen calendar days upon subcontract award and meet other requirements, per the vendor agreement. Our proposal is organized in a way that will facilitate your review and evaluation process. We look forward to meeting with you during the interview process to discuss and further customize our project scope and approach to best fit your needs. We would enjoy the opportunity to work with you on this important initiative. Please feel free to contact us should you have any questions or concerns. Warm Regards, Jennifer Bergmann . Principal/Partner, The HR Group Phone: 312.505.6879 Signature Date 2 The FIR Group RFP#23-050 Proposal Part 2: Scope of Services We will partner with you to successfully complete the defined deliverables using the proposed approach stated below based on our current knowledge of your needs and best practices. Through further discussion, the approach could be further tailored and refined to align with your objectives. (Please see the Appendix for supporting information). Project Deliverables: High Level A. Informational Meetings/Project Management • Project timeline with outlined steps and milestones (See Appendix A) • Weekly Project Updates • Interviews/meetings to gain greater understanding of current and desired future states • Incorporated into each study • PowerPoint materials for: 1) Senior Management/Department Head meetings and 2) Key Meetings B. Part 1: Classification Study • Updated job classification for positions and employees • Accurate FLSA classifications by jobs and employees • Job classification process and process • Job classification training • Defined career paths C. Part 2: Compensation Study • Market analysis results • Valid position matches • Market analysis summaries (heat maps) (See Appendix 8) • Updated (or new) pay structure • Cost Analysis • Pay guidelines • Implementation plan D. Part 3: Benefits Study • Executive Summary with key findings • Presentation of benefits summary results and recommendations Project Overview PROJECT GOALS: • Augment the City of Elgin's ("the City's") ability to attract and retain employees • Provide greater clarity and direction in the City's employee rewards strategy • Further align pay structure with City of Elgin's labor markets 3 The HR Group RFP 1123-050 • Ensure market competitiveness in employee pay and benefits compared to targeted labor market(s) • Obtain consistency and internal equity for employee pay • Identify gaps in compensation and benefits where City of Elgin is not market competitive • Develop strategy to address gaps while being fiscally responsible • Develop sustainable deliverables and processes that are easier to administer and maintain PROJECT SCOPE: • 128 full-time, non-union employees up to Director level • 138 positions in the following job classifications: Officials & Administrators, Professionals, Technicians, Paraprofessionals, Administrative Support, Skilled Craft Workers, Service, and public safety • Based on Ordinance#G72-22 PROJECT TIMELINE (ESTIMATED): • The total estimated timeline of 15 weeks (minimum) is based on outlined approach and steps • The studies could overlap to complete by year end and/or scope could be adjusted • Start & end dates for each study would be mapped out together to achieve desired timing • The actual time to complete will depend on how the process flows and employee availability • Available to start in reasonable timeframe from proposal date HR Project Team Communication & Engagement The HR Group will initiate frequent communication and follow up with you to ensure product quality and that the process moves at a steady pace to completion. We will also share our knowledge freely so that deliverables can be sustained and maintained in-house over time. A. Informational Meetings' • Initial Kick Off meeting with the City Manager and HR Director • Items to be discussed:Total rewards, project scope, processes,tasks,team,timeline,data • Meetings with Senior management and department heads • Initial meeting to explain the project, process, methodology, and their level of participation • At project conclusion, results, recommendations,and guidelines would be shared • PowerPoint materials would be provided • Weekly progress reports with HR Director • Reports will include narrative with current progress,findings,and outstanding issues • Scheduled meetings throughout the project to ensure alignment on approach and progress • Key meetings during each phase(study) and at project conclusion • Obtain your input throughout each project phase • Share results and recommendations using presentation materials 1 Meetings are estimated for one hour each(average)in length. B. Part 1: Classification Study 4 The HR Group RFP#23-050 Goals • Ensure alignment of job classifications across the City, human resources,compensation,and career paths • Confirm current FLSA classifications to pay employees appropriately and meet legal compliance • Support retention goals through clearly defined career paths Phase 1 Deliverables • Updated job classifications for positions and employees • Accurate FLSA classifications for each job and employee • Defined job classification system and process • Customize training on job classification system and maintenance • Delineated career paths Timeline 3-4 weeks Suggested Approach Submit a data request • Review City and human resources data • Sample:City of Elgin strategy, org design, current job classifications and methodology, definitions, FLSA status,job descriptions, current employee classifications Conduct Kick Off meeting Discuss: • Phase scope,goals, and timeline • City of Elgin's organizational strategy • Status of job descriptions, classifications, and FLSA compliance • Specific action items Evaluate job descriptions/ • Evaluate City of Elgin's organizational design Conduct job audits, as • Assess job descriptions including scope, responsibilities, and needed minimum requirements • Conduct interviews by classification (up to 7) and specific job audit(s),as needed (1 - 1.5 hour each) • Apply consistent audit procedure to maintain objectivity in identifying core job responsibilities and needed requirements • Provide recommendations to update job descriptions to reflect City jobs and meet legal compliance • Ensure essential job responsibilities are aligned with each job title and level Review job & FLSA • To ensure proper placement, identify jobs by classification (i.e., classifications Officials&Administrators, Professionals,Technicians, Paraprofessionals, Administrative Support, Skilled Craft Workers, and Service employees) • Consider separate classification and pay plan for public safety personnel • Review FLSA classification (exempt and non-exempt)for each job based on exemption tests The HR Group RFP#23-050 • Present and finalize job and FLSA classifications by position and employee • Propose recommended changes to current classifications to City Manager and HR Director • Suggested changes in FLSA status will include supporting justification relative to the exemption tests • Present final recommendations and defined process to correct needed employee job and FLSA classifications Identify and recommend • Review organizational design by classification/function career ladders • Assess functional and skill-based career paths and competencies • Interview key personnel to discuss career/promotional opportunities (up to 8; up to 1 hour each) • Recommend specific career ladders by organizational, department,and job classifications using a matrix system Create implementation • Recommend implementation steps for job classification, FLSA process and tools status, and career paths • Provide user-friendly, electronic system to maintain employee group and FLSA classifications • Create process to review classifications for individual jobs and maintenance with annual and ongoing HR activities Conduct training for HR staff • Create and deliver training to HR staff on classification process (up to 2—2.5 hours) • Training to cover: • Defined employee classification system • Procedure to review individual jobs • How to classify jobs by FLSA status • How to maintain classification system • Talking points for HR staff to communicate classification system internally • Provided in PowerPoint presentation • Includes related supporting(i.e., legal) materials C. Part 2: Compensation Study Goals • Satisfy the intentions of the City of Elgin's rewards strategy and compensation philosophy • Ensure City positions and employee pay are market competitive • Obtain pay consistency and internal equity • Ensure pay structures reflect the realities of the City's labor market • Develop pay structures,guidelines, and procedures that are sustainable, easy to administer, and maintain • Address any recruitment and retention concerns 6 The HR Group RFP#23-050 Phase 2 Deliverables • Comprehensive market analysis for 128 positions • Relevant position matches and descriptions • Market analysis summaries (Heat Maps) • Updated (or new) pay structure for(128) positions consistent with the City's compensation philosophy • Incumbent cost analysis for 138 employees • Implementation plan • Pay guidelines Timeline 7—9 weeks Suggested Approach Submit a data request • Review relevant City compensation information • Sample: organization strategy, current pay plans, grade levels and steps,employee data, current compensation policies,and procedures Conduct a Kickoff meeting Discuss: • Phase scope,goals, and timeline • City of Elgin's organization strategy • Total rewards strategy/compensation philosophy • Current challenges in recruiting and retaining employees • Methodology • Comparable labor markets& scope cuts • Include public and private sectors • Determine where the City competes for talent • Industries • Organization size (FTEs) • Geography • Scope cuts will be validated by the City of Elgin • Select salary survey(s):The HR Group will research and recommend salary sources that are the most relevant to the City's labor market,cost effective, and have a sound methodology • The HR Group has current subscriptions to ERI and CompAnalyst, which are both robust aggregate survey sources with sound methodology. • Use of these sources would be at no additional cost to the City of Elgin. • Additional surveys could be used, although they would be at the City's expense • Market analysis includes data from (up to)two surveys sources The HR Group RFP t123-050 • If the City chooses to use more than two surveys, additional time would be required for job matching and data compilation • Pay structure design elements • Determine position matches for each in scope City of Elgin job Identify position matches • Matches need to be at least 70%similar to the City's positions to be valid • The City will provide relevant job descriptions to help identify the relevant matches • Where job descriptions are not available,The HR Group will work with City of Elgin to understand job responsibilities and requirements to select the appropriate position match • The project scope assumes accurate and comprehensive job descriptions are available for at least 75%of the jobs in scope • Provide user-friendly tool to validate survey position matches Validate matches with HR with HR • The HR Group could validate matches directly with department heads, if needed. • Using analytical tools,conduct market study for(128)full-time, Gather market data based non-union jobs and (138) employees on unique scope cuts • Assess the City's jobs with relevant market data from selected survey matches • Aim to provide market data for 100%of positions in scope assuming appropriate position matches are available • Market study to include: • Base salary data according to the City's compensation philosophy • Scope cuts according to City of Elgin's talent market • Data adjustments (premiums or discounts)to align City of Elgin's jobs with position matches • Multiple position matches for hybrid jobs with responsibilities in more than one functional area • Compa-ratio: comparison of market to employee pay • Agreed upon common effective date • Create comprehensive data file to capture market results for all Present market analysis positions and incumbents results • Present summaries of market analysis by department/ classification (Heat Maps) • Provide insights, areas of concern, and recommendations • Obtain feedback and finalize 8 The HR Group RFP 1423-050 Present pay structure with • Update salary ranges by position based on classifications, market recommended salary ranges results, and pay structure design practices • Understand unique aspects of each classification • Consider building a new pay structure, if needed • Pay structure design will include pay ranges, steps, compa- ratio (market median vs pay grade midpoints), and midpoint progression • Confirm or reassign jobs to pay grades by pay structure using market results • Determine whether to create a separate classification and pay structure for non-union, public safety employees • Present pay ranges and steps based on market results • To ensure internal equity, evaluate jobs based on impact to the City and relativity to each other in job scope and requirements • Provide guidance and tool to aid HR in assessing internal equity of positions and make recommendations for adjustments • Finalize appropriate pay grade level for each role • Slot non-benchmarked positions • Positions that have not been market priced will be slotted based on their impact to the organization and compared to similar positions in scope, responsibilities and requirements • Review complete pay structure with City Manager and HR Director, including design and job assignment by pay grade Conduct a comprehensive • Compare pay for 138 full time, non-union employees to their cost analysis respective pay grades • Incorporate base salary ranges for each employee • Identify employees whose compensation is: • Below the structure minimum • Above the structure maximum • Develop guidelines on how to address employee pay that is not in the pay grade range • Determine compa-ratios for each employee for HR to assess whether each employee's pay is at an appropriate place in the pay range based on various factors including length of service, performance level, and other relevant factors • Determine total cost to bring employee base salary to market • Share results with City Manager and HR Director Present cost analysis results • Provide cost analysis summaries ("Heat Maps") by department and classification • Recommend a consistent, competitive,and sustainable market position for the City based on results 9 The HR Group RFP#23-050 • Provide recommendations on how to address employee pay concerns and ensure internal equity • Once desired market position is confirmed,finalize the cost analysis and provide recommendations on employee pay adjustments considering budgetary factors • Identify any extreme current individual or group pay inequities • Recommend corrective action plan and process to remedy these situations Develop and initiate • Conduct compression analysis based on proposed pay implementation plan structure • Using compression and cost analyses results, develop strategic implementation plan to move employees into the new pay structure • Create guidelines to migrate staff from the existing structures into the newly designed structures while ensuring internal equity NOTES: • The HR Group will leverage expertise and knowledge of best practices and prevalent practices from organizations similar in size and comparable markets OPTIONAL: (not in scope) • The HR Group would also suggest that they partner with the City's HR to fully leverage existing forums and contacts at other city governments to gain and understanding of various practices used across the industry. This could be done through: • An email to the compensation contacts at other city governments requesting them to share specified information about their compensation programs and practices • The City's HR attendance at any meetings of government compensation professionals to gather relevant information OPTIONAL: (not in scope) • If desired,The HR Group could conduct a detailed formal custom survey to gather additional data for the compensation and benefits studies.The survey would include the participation of targeted city governments selected by the City of Elgin. The HR Group has conducted similar customized surveys for clients. A custom survey would be out of the project scope with on additional fee. Develop administrative and For updated pay structure: maintenance guidelines and • Provide guidelines to maintain pay structure and employee pay procedures positioning • Create process to ensure pay equity • Offer suggestions on computer files and documentation 10 The HR Group RFP#23-050 • Develop process for ongoing market analysis and annual structure adjustments For compensation and reward policies, processes, and programs, including ongoing structure maintenance and sustainability, provide direction on: • Starting pay for new employees • Based on various factors: candidate knowledge and experience, difficulty to fill role, market competitiveness, and pay of current employees • Transfers/Promotions within and across departments and defined career paths • Pay for performance • Other pay types: skill pay, special assignment pay, certification pay, promotional pay, acting assignment pay Conduct training session • Create and deliver comprehensive training to HR staff on updated pay structure and maintenance (up to 2 hours) • Training to cover: • Updated pay structure • Positioning of City jobs by pay grade and steps • How to maintain pay structure • Pay guidelines for new hires and promotions • Guidelines for special pay(as identified above) • Talking points for HR staff to communicate pay structure internally,where appropriate • Supporting(i.e., legal) materials • Provided in PowerPoint presentation D. Part 3: Benefits Study Goals • Contribute to the City of Elgin's recruitment and retention objectives • Ensure the City's employee benefits are market competitive • Update benefit offerings to be more market competitive, where needed • Support employee well being by helping to meet their financial, medical,and personal needs • Use results to assess benefit return on investment (ROI) Phase 3 Deliverables • Executive summary with key findings and recommendations • PowerPoint presentation • Overall results • Side by side comparison of each City of Elgin benefit to the market (using color coding) • City of Elgin benefits that are competitive 11 the HR Group RFP#23-050 • Recommendations for benefits that are less than competitive Timeline 5 - 7 weeks Suggested Approach Submit a data • Review City of Elgin's benefits in detail request • Sample: SPDs, policies, benefits enrollment, utilization, benefit offerings by employee group • Phase scope and timeline Conduct Kickoff meeting • City of Elgin's total rewards strategy • City's desired positioning of benefits relative to base pay • Identify in scope benefits and specific areas of focus • Sample: Medical, retirement,vacation,sick leave, personal days, holidays, life insurance,car allowance • Confirm industry market to target for comparison • Current benefit utilization (i.e., medical insurance) • Identify concerns with benefit offerings • Use benefits benchmarking tool(s)and resources Identify valid market data • Provide data for multiple benefit design elements for each benefit • Data for:medical insurance,retirement, paid time off, disability,work/life benefits and others • For example, the benchmarking information for healthcare insurance may include plan prevalence (HMO, PPO), employee cost, and deductibles Evaluate the City's benefits • Prepare a comprehensive benefits summary comparing each to the market & benefit to the market demographics • Evaluate benefits compared to employee demographics • Include a user-friendly color code system to indicate market competitiveness level. For example,green would indicate that the City benefit is equal to the market, red for below market, and blue for above market. • Identify specific benefits and features not currently available at City of Elgin compared to the market;share market trends OPTIONAL(not in scope): Obtain employee feedback to develop more targeted recommendations on benefit offerings using one of two options: 1) Conduct custom employee survey to understand City's benefit needs, OR 2) Facilitate a targeted employee focus group to better understand benefit needs 12 The HR Group RFP#23-050 If a custom survey is utilized, the suggested process would be used: • Design survey tool and questions to capture the relevant data • Distribute tool to employees • Compile, analyze, and deliver survey results • Scrub and analyze the response data • Create report and present results Present benefits • Prepare Executive Summary with findings and recommendations benchmarking results • Create thorough PowerPoint presentation to include: • Overview of market competitiveness • Detailed market assessment by benefit • Detailed direction and recommendations • Questions to guide strategy benefits decision making • Determine how to update benefits to maximize retention, employee engagement,and talent acquisition. 13 The HR Group RFP 4123-050 Proposal Part 3: Vendor Questionnaire 1. What experience has your company had with public sector entities? Here's a sample of human resources and compensation services The HR Group has successfully provided to public sector entities. Organization (Name/State) Consulting Services Provided City of Elgin - IL Human Resources Needs Assessment: interviewed Department Heads to gather info on HR utilization and needs by function; proposed recommendations by HR function; proposed HR team org design with HR position scopes and responsibilities; action items to develop strategic capabilities Princeton University—Plasma Physics Comprehensive classification and compensation Laboratory (PPPL) - NJ study(similar to City of Elgin RFP); market analysis by classification; pay structure updates; cost analysis; implementation plan; maintenance guidelines; compensation procedures City of Raleigh— NC Compensation and benefits study including customized survey designed and implemented; completed by competitors; provided study results and recommendations;job description evaluation; market analysis Argonne National Laboratory—IL Job analyses and benchmarking; pay structure revisions;and incentive and recognition plan design and implementation. [Services provided by Jill Rea] Medicaid Health Plans of America—DC Human Resources consulting: established HR foundation in the areas of talent acquisition, benefits, employee communication,job descriptions Midwest Shelter for Homeless Human Resources consulting:employee relations, Veterans - IL talent acquisition, benefits, reduction in force DuPage Water Commission—IL Market analysis SEIU - IL Market analysis; pay structure design; market trends and recommendations in employee recognition 14 The HR Group RFP#23-050 Access Community Health Network FLSA needs assessment;market analysis; retention strategy recommendations for high turnover positions 2. How long has your company been doing business in Illinois? The HR Group has been doing business in the State of Illinois for over twenty (20)years. 3. Briefly indicate the main attributes that differentiate your company from your competitors. The HR Group delivers high quality valued-added compensation consulting services. The HR Group uses a relationship-focused and solutions-oriented approach to ensure that the deliverables meet or exceed client expectations. The HR Group engages similarly experienced high caliber compensation consultants to partner on client projects. The HR Group consultants possess: • Strong breadth and depth of experience with small to large organizations across a variety of industries, including significant work with government and public sector organizations • Perspective from both in-house practitioner and consultant point of view • Ability to effectively work at both strategic and tactical levels paired with ability to create high- quality, effective communications to ensure successful implementation of initiatives • Strong business and financial acumen • Uniquely customized solutions based on holistic approach and including multiple factors, including organizational strategy,culture, HR goals,targeted areas of concern • Hands on, practical,and flexible approach (See Appendix C for Consultant Qualifications and Profiles) 4. Is your company a subsidiary or an affiliate of another company? If yes, please explain and provide full disclosure of any direct or indirect ownership or control by any administrative service agency. The HR Group is not a subsidiary or an affiliate of another company. 5. Describe any pending arrangements to merge or sell your company. There are no pending arrangements to merge or sell The HR Group. 6. Provide the names and telephone numbers of five (5) clients in the State of Illinois with whom you have had a working relationship, as a reference for the City. (Preferably, the references should be governmental units). 15 1 he HR Group RFP#23-050 Please see the following six (6) references. All are based in the State of Illinois except Princeton University Plasma Physics Laboratory. This reference was included as the work is identical to City's of Elgin's scope of work (although larger in scale), it's a government entity, and the work is current. Client References Consulting Services Provided Rick Kozal Human Resources Needs Assessment: interviewed City Manager Department Heads to gather info on HR utilization City of Elgin and needs by function; proposed recommendations by HR function; proposed HR team org design with HR position scopes and responsibilities; action items to develop strategic capabilities Shawna Lecuyer Client for 12+years; Successfully completed Officer/Senior Vice President, Legal& Human compensation and benefits projects: ongoing market Resources (formerly) pricing, pay structure design, benefit analysis, Miniat Holdings, Inc. retirement plan assessment, executive compensation, sales compensation, compensation 815.954.8558 committee support, short term incentive design, shawna@teamlecuyer.com communications and presentations Completed other HR projects: performance management, employee handbook, numerous communications, mentoring program, HR operations, employee relations, affirmative action Carlissa Crawford Market analysis; internal equity process; pay Chief of Operations/Human Resources structure design; pay grade descriptions; market SEIU trends and recommendations in employee recognition 312.596.9417/Cell: 312.543.7216 carlissa.crawford@seiuhcil.org [Carlissa will be out of the office Sept 14—25, but available via email during that time] Carol Campagnolo Since 2017,Jennifer has worked with Carol Chief Human Resources Officer supporting numerous clients in Illinois,other Delinea multiple states, and international compensation in 847.323.1830 large scale compensation projects in rewards [Carol will be out of the country Sept 15—Oct strategy, market pricing and analysis, pay structure 20, but will be available via her personal design, compensation guidelines, processes, email:cgcampagnolo@gmail.com] communications, and education Megan Robinson Client for 7+years; Provided consulting support in Director, Human Resources market analysis and pay structure design and Ed Miniat, Inc. updates;executive compensation, sales compensation, communications, presentations, 219.688.6968 creative of employee handbook with compensation Megan@wibenchmfg.com and other HR policies 16 The HR Group RFP#23-050 Jean Wernock Comprehensive classification and compensation Senior Compensation Manager study(similar to City of Elgin RFP, but larger scale); Princeton University Plasma Physics Laboratory market analysis by classification; pay structure updates;cost analysis; implementation plan; 609.243.2683 maintenance guidelines;compensation procedures jwernock@pppl.gov Signature (Provider Representative) Title Company Date Telephone Number 17