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HomeMy WebLinkAbout25-75 Resolution No. 25-75 RESOLUTION AUTHORIZING EXECUTION OF AN AMENDMENT TO AGREEMENT WITH JENNIFER L. BERGMANN& ASSOCIATES, INC. FOR PROFESSIONAL SERVICES IN CONNECTION WITH THE CITY'S 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 Amendment to Agreement on behalf of the City of Elgin with Jennifer L. Bergmann & Associates, Inc., for professional services in connection with the city's 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: April 9, 2025 Adopted: April 9, 2025 Omnibus Vote: Yeas: 9 Nays: 0 Attest: s/ Kimberly Dewis Kimberly Dewis, City Clerk AMENDMENT TO AGREEMENT FOR CERTAIN PROFESSIONAL SERVICES This Amendment Agreement ("Amendment Agreement") is made and entered into this 9th day of April , 2025, by and between the City of Elgin, an Illinois municipal corporation ("City") and the Jennifer L. Bergmann & Associates, Inc., doing business as The HR Group, an S Corporation("The HR Group"). WHEREAS, the City The HR Group previously entered an agreement, dated March 6, 2024 (the "Subject Agreement"), whereby the City engaged the HR Group to furnish certain professional services in connection with the City's 2024 Compensation Study(the"Project"); and WHEREAS, the City and The HR Group have agreed to expand the scope of the work for the Project to include additional analyses and the examination of additional positions; and NOW, THEREFORE, for and in consideration of mutual undertakings herein, and other good and valuable consideration,the receipt and sufficiency of which is hereby acknowledged,the parties hereto agree to as follows: 1. The above recitals are incorporated into and made a part of this agreement as if fully recited hereby. 2. That the scope of services to be provided by The HR Group, identified in paragraph 1.B and Attachment A of the Subject Agreement, is hereby amended to include the additional services set forth in Attachment A-1 to this agreement, attached hereto and incorporated herein by this reference. 3. That the total not-to-exceed amount set forth in paragraph 4 of the Subject Agreement for the services to be provided by The HR Group to the City is hereby amended from "$75,900," to "$105,900.00." 4. That in the event of any conflict between the terms of this Amendment Agreement and the Subject Agreement, the terms of this Amendment Agreement shall supersede and control. 5. That except as amended in this Amendment Agreement, the Subject Agreement shall remain in full force and effect. 6. That the changes provided for in this Amendment Agreement are germane to the original Subject Agreement as signed and this Amendment Agreement is in the best interest of the City and authorized by law. 1 IN WITNESS WHEREOF,the undersigned have entered into this Amendment Agreement on the date near first written above. CITY OF ELGIN JENNIFER L. BERGMANN & ASSOCIATES, INC. Br......-(Zife° By: l eitet G f21'' gG'Y j ynaptiv City Manager Jennifer Bergmann ATTEST: i y Clerk 23,aa(A Legal Dept\Agreement\Bergmann-Amend Agr-HR Study-03-19-25.docx 2 ATTACHMENT A-1 AMENDMENT AGREEMENT SCOPE OF ADDITIONAL SERVICES Additional Scope of Services For the City of Elgin The following outlines the out-of-scope services and deliverables that The HR Group has provided for the City of Elgin during the study being conducted in three key areas: Classification, Compensation, and Benefits. • Market analysis for additional City positions. Thirteen additional jobs were included the market analysis as new roles approved in the 2025 budget. The analysis for these roles included the same methodology as the positions included in the original scope and followed the same steps: • Determined position matches for each City job • Gathered base salary data according to the City's compensation philosophy • Used scope cuts according to City of Elgin's talent market • Adjusted data (premiums or discounts)to align City of Elgin's jobs with position matches • Evaluated employee pay to determine market competitiveness • Utilized results to further align with pay structure midpoints • Slotted positions into the appropriate pay grades based on market and internal equity • Peer Group Compensation Assessment. This work included an evaluation of base pay compared to a peer group of thirteen Illinois cities. This comparative analysis provides contextual benchmarking specific to Illinois municipalities that face similar workforce challenges and market conditions. The following process was used: • Selected peers based on their similarity in size and scope to the City of Elgin. • Developed survey questions to target the data needed from each peer. • Contacted individual peers to provide the requested data. • Evaluated and scrubbed peer data to align with the needs of the study. • Conducted a thorough analysis to understand employee pay provided by each peer for City positions. • Using the peer results, conducted a more completed analysis of the City's market. • The results supported a more complete approach to understand pay in the City's specific market. • This peer group data was vital especially where data was not available from the two salary sources, such as Fire and Police positions. • Peer Group Benefits Assessment. This analysis provided a more complete picture of the city's total rewards package relative to comparable municipalities. • This benefits assessment was completed using a similar methodology and peer group as used for the peer compensation assessment. • These key results helped the City of Elgin to understand the specific benefit offerings from other comparable cities, which was not available from general non- profit survey results. In addition,the following are the outstanding key deliverables which are key to the original project scope: 1 The HR Group 312.505.6879 jennifer@thehr.group • Cost/incumbent analysis. This evaluation would be conducted to compare employee pay to the management pay plan. It is used to identify pay that is outside of the pay ranges and determine the compa-ratio for each employee (comparison of employee pay to the midpoint).The results assist with the following: • Identify employees whose compensation is: • Below the pay plan minimum • Above the pay plan maximum • Determine total cost to bring employee base salary to market • Provide recommendations on employee pay adjustments considering budgetary factors • Develop guidelines on how to address employee pay that is not in the pay grade range. • Determine cornpa-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 and other relevant factors • Follow up with Dept Directors. Results would be provided to individual Dept Directors on employee pay for their respective areas relative to the market and updated management pay plan based on their earlier input. This discussion will help Dept Directors to understand what the market pays for positions in their functional areas and support the work that has been completed. It will also help them to provide any needed employee education. • Pay guideline development. Pay guidelines would be updated and/or created to ensure a consistent process and application of employee pay across City departments based on various employment situations, such as the following: • New hire pay • Transfers/Promotions • Annual pay adjustments • Pay below the pay plan minimum or above the maximum Guidelines would also be recommended to maintain and sustain the management pay plan. 0 rn� hgroup