99-259 Resolution No. 99-259
RESOLUTION
AUTHORIZING EXECUTION OF AN AGREEMENT WITH
MUNICIPAL ADVISORS INCORPORATED FOR A
CLASSIFICATION AND COMPENSATION STUDY
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Joyce A. Parker, City Manager, and Dolonna
Mecum, City Clerk, be and are hereby authorized and directed
to execute an agreement on behalf of the City of Elgin with
Municipal Advisors Incorporated for a classification and
compensation study, a copy of which is attached hereto and
made a part hereof by reference .
s/ Ed Schock
Ed Schock, Mayor
Presented: October 13 , 1999
Adopted: October 13 , 1999
Omnibus Vote : Yeas 7 Nays 0
Attest :
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
C. OFogjf""%' Cr.
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City of Elgin Agenda Item No.
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September 13 , 1999
TO: Mayor an Members of the City Council
FROM: Joyce A. Parker, City Manager
SUBJECT: Classification and Compensation Study
PURPOSE
The purpose of this memorandum is to request that the Mayor and
members of the City Council authorize staff to enter into a
professional services contract with Municipal Advisor Incorporated,
to conduct a classification and compensation study of all the
City' s non-bargaining unit positions .
BACKGROUND
Due to the fact that it has been more than ten years since a formal
review of the City' s management pay plan was conducted, a proposal
to retain a consultant to conduct a classification and compensation
study of the City' s non-bargaining unit positions was presented to
the City Council during the 1999 budget discussion. The Council
approved the expenditure of $30, 000 per year for this purpose in
calender years 1999, 2000 and 2002, respectively.
Staff solicited and received proposals from three consulting firms
(Hays Associates, Fox Lawson & Associates, and Municipal Advisor
Incorporated) to conduct the study. Following a review of the
proposals by staff and an on-site interview of Municipal Advisor
Incorporated and Fox Lawson & Associates by staff, Municipal
Advisor Incorporated of Virginia Beach, Virginia is recommended
to conduct the study. The study of approximately 146 employee
positions will cost $49, 550, plus expenses not to exceed $5, 000,
with payment to be spread between 1999 and 2000 fiscal years .
Municipal Advisor Incorporated is a 24-year-old professional
consulting firm specializing in classification and pay, human
resources administration, management analysis, finance and
strategic planning exclusively for units of local government . It
has provided professional consulting services to more than 290
public agencies in 20 states .
The study will entail an analysis of all non-bargaining unit
positions; development of position descriptions; job grading; a
comparison of the current compensation practices to the competitive
market, taking internal equity into consideration, to determine the
competitiveness of the current pay plan; development of new salary
ranges; and allocation of positions to appropriate salary ranges .
, ,
r Classification and Compensation Study
September 13 , 1999
Page 2
The final result should provide the City with an equitable and
consistent method of evaluating positions and relating classes to
the compensation plan.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
Department heads have been apprized of the study and the consultant
will hold a general meeting with all study participants to discuss
the project objectives and procedures at the beginning of the
study.
FINANCIAL IMPACT
Sufficient fund is budgeted in the five year budget in the General
Fund, account number 010-0601-714 . 30-99, for this project .
1999 $30, 000
2000 $30 , 000
2002 $30, 000
AYV
LEGAL IMPACT
A contract with the consultant will need to be prepared.
ALTERNATIVES
1 . Retain Municipal Advisor Incorporated to conduct the study.
2 . Retain another consultant to conduct the study.
3 . Drop the project all together.
RECOMMENDATION
Staff recommends that the Mayor and members of the City Council
authorize staff to enter into a professional services contract with
Municipal Advisor Incorporated to conduct a classification and
compensation study of all the City' s non-bargaining unit positions .
Res==ctfully submi ,
.,/ w Q . �(i
z,____
Jo "e A. Parker
City Manager
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AGREEMENT
THIS AGREEMENT made and entered into this /17:14 day of October, 1999, by and
between the City of Elgin, Illinois hereinafter referred to as the "City", party of the first part, and
MUNICIPAL ADVISORS INCORPORATED, hereinafter referred to as "Consultants",party of the
second part,
WITNESSETH
WHEREAS, and in consideration of the mutual benefits accruing to the parties hereto, the
Consultants hereby agree to perform all necessary professional consultant services for a
Classification and Pay Study for non-bargaining positions as described in the Scope of Services and
upon the terms and conditions hereinafter provided:
1. That that certain written Proposal for a Classification and Pay Study for the City of
Elgin submitted by Consultants to the City on April 29, 1999 supplemented by a
letter to expand the study population group, dated August 25, 1999 becomes a part
of this agreement, a copy of which is attached hereto and made a part hereof.
2. Consultants' compensation for the services as outlined in the Proposal, shall be
made upon certified billing and progress reports to made monthly to the City by
Consultants for work performed during the preceding month, with payment to be
made by the City within fifteen (15) days from receipt of such billing. The total cost
to the City under this agreement of said proposal will not exceed the sum of
$54,550.
3. Consultants hereby covenant and agree that they will not discriminate, with
reference to work to be performed pursuant hereto, against any employees or
applicants because of race, color, religion, sex or national origin.
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4. Consultants shall be responsible for presenting and explaining the study to the City
staff and the City governing body.
5. Consultants shall make available all data, notes and memoranda completed during
the study and upon completion of the study will forward such materials to the City
for its use.
6. This Agreement may be terminated by either party upon seven (7) days' written
notice should the other party fail substantially to perform in accordance with its
terms, through no fault of the other.
7. All claims, disputes and other matters arising out of or relating to this Agreement or
the breach hereof shall be governed by the laws of the State of Illinois.
CITY'OF ELGIN,ILLINO(VAL
41.
fi! /412...61.4 —
MUNIC IAL AD SORS INCORPORATED
a I,
ATTFIST:
Vice ' -siden
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April 29, 1999
Mr. Clay J. Pearson
Director of Organizational Development
City of Elgin
150 Dexter Court
Elgin,IL 60120-5555
Dear Mr. Pearson:
Thank you for your recent telephone call and correspondence regarding a possible
classification and pay study for department heads, division managers and other non-bargaining unit
members. It is our understanding that this study effort will include approximately forty persons in
twenty-five positions.The following scope of services is proposed for the project.
A. PROJECT INITIATION-DATA COLT.FCTION
MAI will meet with the City Manager and other appropriate officials to establish working
relationships and to finalize a comprehensive work plan and timetable. All current
classification and compensation data related to study positions will be assembled and
evaluated to determine the status of existing compensation programs and to identify
apparent weaknesses and short comings.
The purposes of the meeting will be to:
1. Introduce the project consultant.
2. Discuss the background and experience of MAI and the consulting team.
3. Discuss, in detail, the methodology to be used in conducting the study, the role of
the consultant and the employees and the amount and type of employee
participation.
4. Ascertain the major issues the City wants the study to address.
5. Review the project schedule and determine significant milestones.
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After meeting with the City Manager, a general meeting will be held with study participants
to discuss the project objectives and procedures and to distribute and explain the use of
position analysis questionnaires (provided by MAI) and to schedule their distribution,
collection, review and verification.
In addition, individual interviews will be conducted with each department director to review
organizational arrangement, mission, goals and objectives and to determine what problems,
if any, they are experiencing with the existing classification and compensation system.
B. DEVELOPMENT OF CLASSIFICATION SYSELM
A position analysis questionnaire (PAQ) will be distributed to each employee included in
the study to allow him/her to describe his/her job duties, responsibilities and essential
functions in detail. The questionnaire will also provide an opportunity for the employee's
supervisor to review and comment on the data supplied by the employee and provide
specific comments concerning various job factors that affect the position.
Upon receipt of the completed position analysis questionnaires, MAI will review and
conduct a task analysis of the content of 100% of the questionnaires and make preliminary
classification decisions. Any questionnaires that require clarification and/or verification
will be noted and the consulting team will return to Elgin and conduct individual job audits
and interviews with employees to ensure a complete understanding of the position.
Based on the information collected through the position analysis questionnaires and on-site
audits/interviews, consistent classification descriptions will be developed.
The new class descriptions will include a position title, general definition of work, essential
functions, examples of typical tasks, necessary minimum knowledge, skills and abilities,
education and experience requirements and special qualifications, if any. Special attention
will be given to ensuring that bona fide occupational qualifications, licensing, certification
and special training, if dictated by standards of practice and/or job requirements, are
included as minimum qualifications of classes.
C. REVIEW OF PRELIMINARY CLASSIFICATIONS AND CLASS DESCRIPTIONS
The consultant will develop preliminary class descriptions and submit them for review and
comment. The consultant will review the comments and make adjustments based upon the
comments received.
After all suggested changes have been evaluated, final classification decisions will be made
and the class descriptions finalized.
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D. JOB EVALUATION AND DEVELOPMENT OF PAY PLAN
In order to determine appropriate salary levels for non-bargaining unit positions, MAI will
conduct an extensive salary survey to compare these positions with analogous positions in
other comparable public agencies in the area labor market, other governmental units of
similar size and private sector employers in the area. The study team will consult with the
City Manager in identifying the appropriate sources of survey data.
Based on the wage data analysis and the classification descriptions developed, the linear
least squares method will be utilized to develop an appropriate salary schedule.
MAI has developed and copyrighted a job evaluation system known as Systematic Analysis
and Factor Evaluation (SAFE). This system has been successfully utilized for several years
and has been reviewed by the United States District Court in conjunction with an F.F.0 suit
and found acceptable to the Court.
It is important to note that the MAI Systematic Analysis and Factor Evaluation system is a
.1 unique method of job evaluation. The MAI SAFE system was designed to measure job
factors which apply specifically to local government.
The system rates and ranks jobs based on skill levels and work factors. The result is an
equitable and consistent method of evaluating jobs and relating classes to the compensation
plan.
F. FINAL REPORT
A final report will be a document which contains the following:
• Detailed study methodology
• Discussion of the consultant's findings, conclusions and recommendations regarding
position classification, salary structure, compensation philosophy, estimated cost
and implementation plan.
• Detailed class specifications
• Salary survey results
PROJECT SCHEDULE
Municipal Advisors Incorporated takes pride in meeting its time commitments. The schedule to
commence the project coincides with MAI's completion of other studies. This will ensure that the
proposed staff members will be available to concentrate on this study. In order to obtain updated
salary information it is recommended that MAI initiate the study soon after July 1, 1999. The study
will be completed within 120 days after the official notice to proceed.
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There are factors which impact upon meeting the schedule which are beyond the consultant's
control. The proposed time frame is contingent upon a timely decision, the receipt of the data from
the participants when requested and the timely receipt of feedback and comments from the City on
the submitted preliminary data.
III. PROPOSER QUALIFICATIONS
A. MUNICIPAL ADVISORS INCORPORATED
Founded in 1975, Municipal Advisors Incorporated (MAI) is a professional consulting firm
specializing in classification and pay, human resources administration, management
analysis, finance and strategic planning exclusively for units of local government. MAI
maintains offices in Virginia Beach, Virginia.
MAI has provided professional consulting services to more than 290 public agencies in 20
states. The quality of our work is evidenced by the fact that over seventy percent of our
clients have utilized our consulting services on more than one occasion.
Extensive knowledge and experience in the fields of human resources management,
municipal finance and local government operations are the hallmarks of MAI. Each
member of the firm has several years of local government management administration
experience in a variety of areas of expertise. This experience helps us recognize the
uniqueness of each local government client, thus improving the quality and relevance of all
studies. The fact that the firm includes Virginia governments among its clients provides a
good knowledge base for dealing with the issues to be addressed in this study.
The professional services provided by MAI include:
• Human Resources Management
Personnel Classification and Salary Studies
Executive Search and Selection
Staff Forecasting
Personnel Rules and Regulations/Employee Handbook
Automated Job Evaluation System ---SAFE®
• Organization and Management Studies
Complete Administrative Structure Analysis and Reorganization
Consolidation Studies
Staffing - Adequacy, Reduction, Utilization, Productivity and Supervisory
Structure
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• Financial Management
- Comprehensive Financial Advisory Services
Financial Status Studies
Utility Rate Studies
- Cost Effectiveness/Reduction Studies
• Strategic Planning
Management,Organization, Cost Reduction, Staffing
Capital Improvement Plans
Boundary Adjustment Studies
Personal attention is given to each assignment by a principal of the firm. Principals of MAI
are actively involved in all matters pertaining to an assignment throughout the term of the
engagement. It is the policy of MAI to assign a principal of the firm as the primary on-site
consultant for each engagement.
Engagements similar to Elgin have been successfully conducted for Virginia local
governments. Some of those clients are included as references.
B. CONSULTING TEAM
Municipal Advisors Incorporated will assign a consulting team with extensive experience in
classification and pay, human resources management, organizational and productivity
improvement, financial management and municipal operations. All consulting team
members have excellent academic credentials and hands-on local government and human
resources management experience. Mr. Scott is the former City Manager of Virginia Beach,
Virginia and Mr. Maxwell served as City Manager in Chesapeake, Virginia. A principal of
the firm will be on-site throughout the engagement and actively involved in all phases of the
study. Two (2)principals will be assigned to the project.
Roger M.Scott
Mr. Scott, Vice President and co-founder of MAI, will be the project director and chief
consultant. Mr. Scott has 33 years experience in municipal government management and
consulting. He has a BS degree in Public Administration from the Virginia Polytechnic
Institute and State University(Virginia Tech).
Prior to founding MAI, Mr. Scott was City Manager of Virginia Beach, Virginia from 1968-
74 and Assistant City Manager form 1965-68. He also served as Assistant to the City
Manager of Albany, Georgia from 1962-65 and Assistant Planning Engineer for the City of
Roanoke, Virginia from 1959-62.
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As a municipal management consultant, Mr. Scott performs personnel, staffing, and
organization and management improvement studies for large and small communities
throughout the Southeastern United States. He has also been actively involved in
government consolidation studies where his extensive knowledge of all facets of municipal
government has been helpful in developing efficient and effective organizational structures
and staffing patterns.
Mr. Scott has been active in the International City Management Association where he
served as Vice President of the Virginia Section and was a member of both the National
Committee on managed Growth and the National Committee on Military Installations. He
was also on the Municipal Administration Committee of the National League of Cities and
the Metropolitan Areas Transportation Study Commission for the Commonwealth of
Virginia. His professional affiliations also include the American Society of Public
Administration, the Municipal Finance Officers Association and the International Personnel
Management Association.
John T. Maxwell
Mr. Maxwell, Vice President and a Principal of the firm, will assist with the project. Mr.
Maxwell has 29 years experience in municipal government management and consulting.
He has a Bachelor's degree in Industrial and Labor Relations and a Master's degree in Public
Administration.
Mr. Maxwell joined MAI in 1984 after serving as City Manager of Chesapeake, Virginia
(1978-84); Assistant City Manager of St. Petersburg, Florida (1975-78); Assistant City
Manager of Lakewood, Colorado (1970-75); Director of Finance for Ames, Iowa (1966-70);
and Research and Budget Analyst for Kansas City,Missouri (1963-66).
This extensive background in municipal government management included the unique
experience of helping to establish a new city. The City of Lakewood, Colorado was
incorporated in 1969 as a municipality of 120,000 people -- the largest city to incorporate in
the United States. Mr. Maxwell, as the new Assistant City Manager, participated in
establishing the organization structure, staffing pattern, financial and data processing
systems, personnel program, employee recruitment, purchasing policies, ordinances,
comprehensive plan, land use, zoning and development regulations and numerous policies
and procedures required to operate the municipal government.
Mr. Maxwell has been active in the International City Management Association serving as
Chairman of the Professional Development Committee of the Virginia Section and as a
member of the ICMA Program Committee. In 1984, he won the Management Innovation
Award. He also served as Vice Chairman and Treasurer of the Southeastern Virginia
Planning District Commission and was a charter member of the Virginia Innovation Group.
His other professional affiliations include the American Society of Public Administration,
the Government Finance Officers Association and the Virginia Parks and Recreation
Society.
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IV. PROJECT BUDGET
Municipal Advisors Incorporated will perform all services delineated in the Scope
of Service for a professional fee of $14,770 plus director, out-of-pocket travel
expenses,properly documented,not to exceed$3,000.
I hope it will be our privilege to assist you and the City with this important undertaking. If
we can provide additional information,please give me a call.
Re t .1Iy Submitted,
C I AL ADVI ORS INCORPORATED
' '/ vt
Roger M. Scott
Vice President
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August 25, 1999
Mr. Olufemi Folarin
Human Resources Director
City of Elgin
150 Dexter Court
Elgin,IL 60120-5555
Dear Femi:
It was a pleasure to meet with you, Ms. Parker and Mr. Pearson. I hope the information
provided was sufficient for your needs. As requested, I have calculated the costs for expansion of
the study group to include other management and administrative employees and benefit groups.
The original study population in our proposal included all of benefit group A and selected
members of group B (a total of approximately 40 employees) was quoted at a cost of $14,720
plus expenses not to exceed $3,000. If we expand the study population to include the original
population plus all the other employees in benefit group B (a total of approximately 60
employees) the cost would be $22,850 plus expenses not to exceed $4,000. If the study is
expanded in include all non-bargaining unit positions (approximately 146 employees) the cost
would be $49,550 plus expenses not to exceed $5,000. Under each of the alternate proposals, we
will conduct a comprehensive classification and pay study as outlined in our original proposal.
I hope it will be our privilege to assist you and the City with this important project. If we
can provide additional information,please let me know.
R- pe fully Submitted,
unici s al Advisors Incorporated
Roger M. Scott
Vice President