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12-105 Resolution No. 12-105 RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT WITH THE ARCHER COMPANY FOR A COMPENSATION STUDY AND JOB ANALYSIS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Sean R. Stegall,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 The Archer Company for a compensation study and job analysis, a copy of which is attached hereto and made a part hereof by reference. s/David J. Kaptain David J. Kaptain, Mayor Presented: June 13, 2012 Adopted: June 13, 2012 Vote: Yeas: 5 Nays: 1 Attest: s/Kimberly Dewis Kimberly Dewis, City Clerk AGREEMENT COMPENSATION STUDY AND JOB ANALYSIS Request for Proposals 12-09 THIS AGREEMENT is made and entered into this l3thday of June, 2012,by and between the CITY OF ELGIN,an Illinois municipal corporation(hereinafter referred to as"CITY")and The Archer Company, a corporation organized and existing under the laws of the State of Ohio, and authorized to do business in the State of Illinois (hereinafter referred to as "CONSULTANT"). WHEREAS,the CITY desires to engage the CONSULTANT to furnish certain professional services in connection with a compensation study and job analysis (hereinafter referred to as the "PROJECT"); and WHEREAS, the CONSULTANT 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 CONSULTANT that the CITY does hereby retain the CONSULTANT for and in consideration of the mutual promises and covenants contained herein, the sufficiency of which is hereby acknowledged to perform the services relating to the PROJECT as 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. The CONSULTANT shall conduct a salary and benefit evaluation that shall evaluate the present salary structure and benefits, as compared to the specific job market for comparable positions in the private and public sectors. All full time positions, both bargaining unit and non-bargaining unit, shall be evaluated. The CONSULTANT shall also conduct a job description evaluation that shall consist of an evaluation of all full time non-bargaining unit job descriptions with a focus on FLSA and ADA requirements. C. A detailed Scope of Services prepared by Consultant entitled "City of Elgin Compensation Study and Job Analysis, Section 3 Methodology and Technical Approach" is attached hereto as Attachment A. 2. PROGRESS REPORTS A. An outline project milestone schedule is provided herein. B. A detailed project schedule for the PROJECT is included as Attachment B,attached hereto. The parties may mutually agree to modify such schedule. Progress will be recorded on the project schedule and submitted monthly as a component of the Status Report described in C below. C. The CONSULTANT 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 PRODUCT All work product prepared by the CONSULTANT pursuant hereto including,but not limited to, reports, plans, 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 CONSULTANT may retain copies of such work product for its records. CONSULTANT's execution of this Agreement shall constitute CONSULTANT's conveyance and assignment of all right, title and interest, including but not limited to any copyright interest,by the CONSULTANT to the CITY of all such work product prepared by the CONSULTANT pursuant to this Agreement. The CITY shall have the right either on its own or through such other consultants as determined by the CITY to utilize and/or amend such work product. Any such amendment to such work product shall be at the sole risk of the CITY. Such work product is 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 CONSULTANT. 4. PAYMENTS TO THE CONSULTANT A. The CITY shall reimburse the CONSULTANT for services under this Agreement a sum not to exceed Thirty Two Thousand Five Hundred Dollars($32,530),regardless of actual Costs incurred by the CONSULTANT unless substantial modifications to the PROJECT are authorized in writing by the DIRECTOR. B. The CITY shall make periodic payments to the CONSULTANT based upon actual progress within thirty(30)days after receipt and approval of invoice. Said periodic payments to the CONSULTANT shall not exceed the amounts shown in the following schedule,and full payments for each task shall not be made until the task is completed and accepted by the DIRECTOR. Compensation Study Cost Invoice Submission Amount Timeframe Orientation&Kick-off(Step 1) $2,040 Classification plan review and recommendations $8,240 $12,000 Weeks 8-9 Compensation plan review and recommendations $9.750 Management plan evaluation $4,000 Prepare draft report $5,500 $12,000 Week 14 Prepare and present final report $3,000 $8,500 Week 18 Total $32,530 - 2 - 5. INVOICES A. The CONSULTANT shall submit invoices in a format approved by the CITY. Progress reports will be included with all payment requests. B. The CONSULTANT shall maintain records showing actual time devoted and cost incurred. The CONSULTANT shall permit the authorized representative of the CITY to inspect and audit all data and records of the CONSULTANT for work done under this Agreement. The CONSULTANT shall make these records available at reasonable times during the Agreement period and for one(1)year after termination of this Agreement. 6. TERMINATION OF AGREEMENT Notwithstanding any other provision hereof,the CITY may terminate this Agreement at any time upon fifteen(15)days prior written notice to the CONSULTANT.In the event that this Agreement is so terminated, the CONSULTANT shall be paid for services actually performed and reimbursable expenses actually incurred prior to termination, except that reimbursement shall not exceed the task amounts set forth under Paragraph 4 above. 7. TERM This Agreement shall become effective as of the date the CONSULTANT is given a notice to proceed and, unless terminated for cause or pursuant to Paragraph 6, shall be deemed concluded on the date the CITY determines that all of the CONSULTANT'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 this Agreement. 8. NOTICE OF CLAIM If the CONSULTANT wishes to make a claim for additional compensation as a result of action taken by the CITY,the CONSULTANT shall give written notice of his claim within fifteen(15)days after occurrence of such action. No claim for additional compensation shall be valid unless so made. Any changes in the CONSULTANT's fee shall be valid only to the extent that such changes are included in writing signed by the CITY and the CONSULTANT. Regardless of the decision of the DIRECTOR relative to a claim submitted by the CONSULTANT, 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 - 3 - party may terminate this Agreement. Notwithstanding the foregoing,or anything else to the contrary in this Agreement, with the sole exception of an action to recover the monies the CITY has agreed to pay to the CONSULTANT pursuant to Paragraph 4 hereof, no action shall be commenced by the CONSULTANT against the CITY for monetary damages. CONSULTANT hereby further waives any and all claims or rights to interest on money claimed to be due pursuant to this Agreement, and waives any and all such rights to interest which it claims it may otherwise be entitled pursuant to law,including,but not limited to,the Local Government Prompt Payment Act(50 ILCS 501/1,et seq.),as amended,or the Illinois Interest Act(815 ILCS 205/1,et seq.),as amended. The parties hereto further agree that any action by the CONSULTANT arising out of this Agreement must be filed within one year of the date the alleged cause of action arose or the same will be time-barred.The provisions of this paragraph shall survive any expiration,completion and/or termination of this Agreement. 10. INDEMNIFICATION To the fullest extent permitted by law,CONSULTANT 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, attorneys fees, damages or other relief,including,but not limited to,workers' compensation claims,in any way resulting from or arising out of negligent actions or omissions of the CONSULTANT in connection herewith,including negligence or omissions of employees or agents of the CONSULTANT 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 CONSULTANT 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 CONSULTANT shall deliver to the DIRECTOR a Certificate 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 shall include the contractual obligation assumed by the CONSULTANT under Paragraph 10 entitled"Indemnification". - 4 - This insurance shall be primary and non-contributory 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. 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 bodily injury and/or property damage. 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 CONSULTANT shall carry CONSULTANT's 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 claim.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. - 5 - 16. DELEGATIONS AND SUBCONTRACTORS Any assignment,delegation or subcontracting shall be subject to all the terms,conditions and other provisions of this Agreement and the CONSULTANT shall remain liable to the CITY with respect to each and every item,condition and other provision hereof to the same extent that the CONSULTANT 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. NO CO-PARTNERSHIP OR AGENCY 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 agreed 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. The City Manager is hereby authorized to enter into amendments to this Agreement on behalf of the City authorizing additional services for additional total costs not to exceed $7,470. 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 CONSULTANT may not issue any news releases without prior approval from the DIRECTOR, nor will the CONSULTANT make public proposals developed under this - 6 - Agreement without prior written approval from the DIRECTOR prior to said documentation becoming matters of public record. 23. COOPERATION WITH OTHER CONSULTANTS The CONSULTANT shall cooperate with any other consultants in the CITY's employ or any work associated with the PROJECT. 24. INTERFERENCE WITH PUBLIC CONTRACTING The CONSULTANT 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 CONSULTANT 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 CONSULTANT to the Department of Human Rights upon request 775 ILCS 5/2-105. 26. SUBSTANCE ABUSE PROGRAM. As a condition of this agreement, CONSULTANT shall have in place a written substance abuse prevention program which meets or exceeds the program requirements in the Substance Abuse Prevention Public Works Project Act at 820 ILCS 265/1 et seq. A copy of such policy shall be provided to the City's Assistant City Manager prior to the entry into and execution of this agreement. 27. WRITTEN COMMUNICATIONS - 7 - All recommendations and other communications by the CONSULTANT 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 CONSULTANT be made or confirmed in writing. 28. 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 the CITY: Gail Cohen Human Resources Director City of Elgin 150 Dexter Court Elgin, Illinois 60120-5555 B. As to the CONSULTANT: Jim Battigaglia, Regional Director The Archer Company 7652 Sawmill Road, Suite 295 Dublin, OH 43016 29. 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 that the CONSULTANT 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, CONSULTANT hereby certifies, represents and warrants to the CITY that all CONSULTANT's employees and/or agents who will be providing products and/or services with respect to this AGREEMENT shall be legal residents of the United States. CONSULTANT 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 the CONSULTANT to determine CONSULTANT's compliance with the provisions of this paragraph. In the event the CITY proceeds with such an audit the CONSULTANT shall make available to the CITY the CONSULTANT's relevant records at no cost to the CITY. CONSULTANT shall pay any and all costs associated with any such audit. IN WITNESS WHEREOF,the parties hereto have entered into and executed this agreement effective as of the date and year first written above. CITY OF ELGIN: - 8 - • By: / fan Stegall, City Manage Attest: City Clerk CONSULTANT: Ttp 0 t By: -.-A- Name/Print: -1-----'•06‘1244 5' A Title: �- F:V.egal Dept\Agreement\Archer Company-Comp Study redlined 6-1-12.doc - 9 - ATTACHMENT A SCOPE OF SERVICES See attached. Ayr ACt4m turn CITY OF ELGIN COMPENSATION STUDY&JOB ANALYSIS SECTION 3. METHODOLOGY &TECHNICAL APPROACH A. Study Scope Based on our understanding of the City's needs, the Archer Company is pleased to offer the following overview approach to conduct this study. The methodology utilized by the Archer Company is consistent with the methodology employed successfully in all of our engagements of this nature nationally, and is supported by our proprietary job evaluation system. This study is conceived as a multi-task effort. While it is necessary to conduct the phases in the general order presented, there may be overlaps of some tasks. Orientation Meetings The Archer Company will conduct an orientation meeting with City management to discuss any areas of concern related to the City's current and future classification system and pay plan and their expectations for the study. At that time we will also outline and explain our philosophies associated with conducting the proposed classification and compensation study to assure a common understanding regarding the basis for the study's recommendations. The Archer Company will ask the City to compile the following information: • Employee database containing pertinent information (identified by the Archer Company); • Copy of your current pay plan showing job titles, grades, and salary ranges (if available); • Current job descriptions; • Organizational charts for all departments included in the study; • List of department directors and key managers with phone numbers and email addresses; and • Copy of the current budget document. SALARY SURVEY The Archer Company will collect and compile salary data for the City and analyze the results in order to assess the impact of the City's competitive market on the pay plan. To the extent possible, we will also solicit information regarding general compensation plan administration practices to aide our analysis. The Archer Company will ask the City to approve the list of benchmarks and targeted survey participants prior to survey development. Data collected in the surveys will be supplemented by data from published sources. The data collected will be compiled and submitted to City in a comprehensive, easy to read report. 13 The Archer Company CITY OF ELGIN COMPENSATION STUDY&JOB ANALYSIS The following is intended to be an outline of the project plan and progression of the proposed work. This project is conceived as a multi-task effort—while it is necessary to conduct the phases in the general order presented, there may be overlap in the time frame for each task. All project tasks and deliverables will be scheduled so as to allow for timely completion. 1) Planning: The following tasks are expected to take place as part of the kick-off process: • The Archer Company will work with the Project Management Team to define the competitive market; this will include recommendations for the list of targeted survey participants that make up the geographical area studied. The final list of organizations to be surveyed will be submitted to City for input and approval. Jurisdictions with the following characteristics are typically surveyed: (1) organizations with which City competes for employees; (2) organizations which are recognized as important, or influential, in the local market place; (3) organizations which are within proximity to CM's competitive market (i.e. the same geographic region); and/or (4) organizations with similar population, demographics, scope of services and other quantitative filtering criteria. • The Archer Company will work with the Project Management Team to identify the list of benchmarks that will be included in the survey. The final list of benchmarks will be submitted to City for input and approval. Benchmark positions are generally selected to represent the continuum of City's classifications, focusing on: (1) positions which are widely recognized as possessing similar job content in most organizations; (2) positions for which City may have had difficulty recruiting and retaining a qualified work force; (3) positions which represent a substantial number of employees as well as the various job families; and/or (4) positions which represent the full array spectrum of salary grades and ranges in the pay plan. • This process will also include a discussion of reporting methods and formats that will best meetthe needs of the City. • We will discuss and agree on the timeline and deadlines for specific project tasks with the City. All work with be scheduled to complete the study by the City's deadline. 14 The Archer Company CITY OF ELGIN COMPENSATION STUDY&JOB ANALYSIS 2) Survey Construction: The Archer Company will construct a customized survey designed to collect the data requested by the City. The Archer Company utilizes a specific format for salary and benefits surveys that has proven to optimize the collection of the data while minimizing the burden to participating organizations; however this format can be customized to meet the specific needs and objectives of the City. Our surveys typically include sections regarding base and supplemental pay, pay practices, and any supplemental questions the Archer Company or the client feels would add to the value of the survey. As this is the primary work product of this study, the survey is expected to be extensive. • Our standard salary survey solicits information regarding the pay ranges, average actual salaries, number of employees covered, an indicator of the degree-of-match, and the respondents' title for each benchmark; we also ask for general information about the structure of the pay plan and practices (colas, merit pay, adjustments, etc.). • In all of our engagements, the Archer Company prefers to utiliz; customize. salary surveys to help ensure validity, rather than relying on a datab. - - : ' g') house to compile the information. However, we use data collected from credible published sources where necessary and appropriate to supplement survey responses. • A draft of the survey document will be submitted to the City for review, and appropriate revisions will be made before the survey is initiated. • The survey will be developed as an electronic form to facilitate completion by the targeted organizations; participants can complete the form electronically or in hard copy. 3) Conducting the Survey: The Archer Company will conduct a customized salary survey for the City and analyze the results in order to determine the competitive job market for City. • The Archer Company will identify and compile the contact information for the targeted organizations. Each organization will be contacted by phone to invite their participation in the survey. • The Archer Company will distribute the electronic survey tool to all participants; paper versions will be made available to participants if requested. • The Archer Company will contact each participant after the surveys have been distributed and provide any follow-up assistance participants may need to complete the survey. • The Archer Company will make every reasonable effort to solicit and encourage the participation of the targeted agencies; however, we may ask City personnel to follow-up on any personal contacts that may help obtain participation. 15 The Archer Company CITY OF ELGIN COMPENSATION STUDY&JOB ANALYSIS 4) Survey/ Market Analysis: Salary and benefits data gathered are carefully analyzed to ensure a high level of validity in our findings. The Archer Company will carefully analyze the results in order to assess the City's position relative to the competitive job market within which it competes. • All data collected will be compiled, tabulated, and edited as appropriate, to facilitate the comparative analysis and to ensure the accuracy and consistency of match with the City's benchmark jobs. • The Archer Company will contact participants directly to clarify their responses and to solicit additional information as necessary to ensure that appropriate comparisons were made. Significant differences between the job functions for similarly titled positions will be identified and factored into our analysis. • The survey analysis will account for cost of living differentials, the size and scope of participating organizations, and differences in job responsibilities as appropriate. 5) Review compensation practices and methodologies utilized by the CM to maintain its pay plan and progress employees through their pay ranges: The Archer Company will compare the City's existing practices and strategies to make sure that they align with: (1) prevailing practices within the competitive market; (2) commonly accepted professional standards; and (3) the City's stated compensation philosophy (actual practices do not always facilitate or support stated philosophy). Practices to be reviewed include (but are not limited to)the following: • Pay plan structure and maintenance: Does the pay structure align with the compensation philosophy? How frequently are the pay ranges adjusted and by what method? Does the City fund cost-of-living adjustments or across-the-board increases? How is internal equity maintained? • Salary and pay practices/policies: How do promotions, demotions, reclassifications, or lateral transfers, etc. affect individual pay?What happens when employees reach the maximum of their range? How new hires are placed based on internal and external experience. 6) Recommendations for the City's Compensation Program: The Archer Company will utilize our findings from the market analysis to provide recommendations for updating the City's pay plan. Recommendations will include how best to handle jobs that are either below their salary range minimum or above their salary range maximum and those jobs that appear to be in need of a more immediate adjustment to be in line with the competitive job market. The recommendations will reflect the cooperative result of organizational discretion paired with our professional guidance. 7) Preparation & Presentation of Reports (Draft and Final): The Archer Company will compile the survey responses into a report showing a summary and analysis of 16 The Archer Company CITY OF ELGIN COMPENSATION STUDY&JOB ANALYSIS the results, along with the raw data collected. The report will also include a discussion of any recommendations resulting from our findings. The Archer Company will provide draft reports detailing our findings and discuss the preliminary results with the City's Project Management Team. All feedback from management will be carefully considered and appropriate changes will be made. • Reports will include a gap analysis between the City's pay plan and the prevailing practices in the competitive job market. • The final report will be submitted to the City both paper and electronic format. • The Archer Company will present our findings to the Project Management Team and all reports will be available in files compatible with popular spreadsheet and word processing program. CLASSIFICATION PLAN AND PAY PLAN DEVELOPMENT Job Analysis The Archer Company will establish internal equity for all job classifications first by conducting job analyses and by reviewing current job classifications. We will analyze each job in the study to obtain a thorough understanding of the scope of responsibility and the major job functions. Our job analysis process is a three-pronged approach that begins with the administration of the Comprehensive Position Questionnaire (CPQ). The CPQ has proven very effective as a tool to gather in-depth data about each job without placing too high an administrative burden on the employees. • To further our understanding of each job, the Archer Company will conduct department interviews and potentially selected individual interviews. The interviews may be combined with onsite observations. • The Archer Company will review the City's existing organization structure, job documentation, and administrative procedures related to job classification and compensation. • Based on the CPQ and the employee interview input we will develop a set of recommendations regarding changes to the City's classification structure and specifications by applying our Job Evaluation Methodology. Job Evaluation The City's management classifications will be carefully reviewed and analyzed against the information captured in the job analyses phase. The Archer Company will make 17 The Archer Company CITY OF ELGIN COMPENSATION STUDY&JOB ANALYSIS recommendations to add, delete, consolidate or revise classifications as appropriate to ensure that they reflect current operations and position assignments throughout the City. We will use the Archer Matrix-Point-Factor Job Evaluation System to determine the relative worth of each job within the study (internal equity) to establish and to maintain a valid and reliable, long-term pay plan. Job evaluations based on the job-related criteria yield a quantitative score for each job. Internal equity is established by grouping jobs of similar complexity and importance (i.e., jobs with similar quantitative scores) into the same pay grade. The"size" of the pay grades will be tailored to the specific needs of the City. The Archer Matrix-Point-Factor Job Evaluation System covers the following areas: Job Function Requirements Aptitude Requirements • Data Utilization • Language Requirements • Human Interaction • Mathematical Requirements • Equipment, Tools and Materials • Functional Reasoning Requirements Utilization • Situational Reasoning Requirements Responsibility Requirements • Manual Dexterity Requirements • Managerial Span of Control • Physical Requirements • Time Span of Decisions and • Sensory Requirements Planning • Budgetary/Fiscal Accountability • Experience Related Requirements • Educationally Related Requirements • Environmental Adaptability Requirements The City will be asked to review a preliminary list of job evaluation rankings to provide our team with input regarding the face validity of the outcomes. We will respond to management input regarding the job evaluation results. The job evaluation process includes analysis of FLSA recommendations. Classification Descriptions 18 The Archer Company CITY OF ELGIN COMPENSATION STUDY&JOB ANALYSIS The Archer Company will review all full-time non-bargaining job descriptions to ensure relevancy of the essential functions, FLSA recommendations and general appropriateness of ADA requirements. Pay Plan Development The Archer Company will work with the City to develop the basis for the classification plan by statistically integrating the measure of internal equity (job evaluation points) with the external competitiveness data (the mean market rate) for each benchmark job. This will be accomplished by using linear regression analysis. The equation resulting from this analysis becomes the "line of best fit" for the City and is used to derive the pay-range structure for all of the jobs in the study. The "line of best fit" determined from the integration of the two sets of data defines the relationship that is pertinent to the development of a valid, reliable, effective and competitive pay range for each City job. We may also recommend general pay plan revisions based on comparisons of the market data to the City current compensation structure and practices. We will discuss the classification plan design and implementation alternatives with the City as well as pay plan progression philosophies to determine the best solutions for the City. Based on discussions with management, we will prepare pay plan implementation costing models to assess the financial impact of alternative pay plans. We will propose and submit recommended pay plan implementation policies that will include the most effective and fairest way to address concerns over job classification and subsequent pay grade assignments. We will also review current compensation practices and salary compression issues. This often is critical between bargaining and non-bargaining employees. Study Report and Recommendations The Archer Company will submit a draft report and recommendations for the new classification plan. These preliminary recommendations will include cost estimates of one or more implementation alternatives as influenced by budgetary considerations and/or requests by the City. We will present the results and recommendations; identify appropriate alternatives for implementing the proposed recommendations; develop transitional plans for moving from the current structure to the recommended structure and present the costs associated with implementing the recommended pay plan. Final Report and Implementation The Archer Company will provide a final narrative report containing the study methodology, data used, findings and recommendations based on the feedback from the City. 19 The Archer Company • CITY OF ELGIN COMPENSATION STUDY&JOB ANALYSIS CLASSIFICATION PLAN FOR MANAGEMENT EMPLOYEES PROJECT TASKS Following are specific tasks necessary to complete the evaluation of management positions. TASK 1: Conduct Orientation Meetings 1.1 We will meet with City Project Team as the key contacts for the study to discuss expectations with respect to the development and implementation of the study. Project time frames will be finalized. 1.2 We will develop employee communication materials to outline the project and assist with completing the CPQ's. 1.3 TASK 2: Employees Complete the Comprehensive Position Questionnaires 2.1 Employees will complete and return completed Comprehensive Position Questionnaires (CPQs)to their immediate supervisors for review and approval. 2.2 Supervisors will review and forward the completed questionnaires to the appropriate department head. 2.3 Department directors will review and return the completed questionnaires to the Human Resources who will review them for completeness and send them to the Archer Company. TASK 3: Conduct Job Analysis 3.1 The Archer Company will carefully review each completed CPQ and any employee comments. 3.2 We will interview department directors to discuss classification and compensation issues. 3.3 We will develop recommendations for changes to the City's classification structure and specifications that we think are appropriate to accurately describe the work being performed. TASK 4: Conduct Job Evaluation 4.1 The Archer Company will evaluate the data provided in the CPQs and 20 The Archer Company CITY OF ELGIN COMPENSATION STUDY&JOB ANALYSIS obtained from the employee interviews using the Archer Matrix-Point-Factor Job Evaluation System. 4.2 We will submit an initial job evaluation listing to the City for review. 4.3 We will respond to any concerns of the City regarding the job evaluation results. TASK 5: Non-Bargaining Job Descriptions 5.1 We will review all full time non-bargaining job descriptions for relevancy of Essential Functions. 5.2 We will review the job descriptions and provide FLSA recommendations. 5.3 We will review the job descriptions for ADA appropriateness. TASK 6: Develop the Pay Plan 6.1 We will integrate internal equity (job evaluation data) and external competitiveness (mean labor market rates)for the benchmark jobs via linear regression analysis to determine pay range midpoints once the "size"of the pay grades is determined. We will also make recommendations based on pure market competitiveness. 6.2 We will work with the City to develop the number of pay grades and the pay range structure. 6.3 We will assign the appropriate pay grade and pay range to each management job classification. TASK 7: Recommend Implementation Plan and Pay Plan Policies 7.1 The Archer Company will work with the City to develop the most appropriate strategy for implementing the recommended pay plan. 7.2 The Archer Company will provide a pay plan implementation costing scenario. TASK 8: Present Draft Report and Recommendations 8.1 We will submit a recommended pay plan draft report to the City. The draft report will include the new pay table, alphabetical listing of jobs, grade order listing of jobs, and an installation schedule with implementation costs by department and employee. 21 The Archer Company CITY OF ELGIN COMPENSATION STUDY&JOB ANALYSIS 8.2 The City will review and comment on the draft report. TASK 9: Present Final Report and Recommendations 9.1 We will present our final report and recommendations and all other supporting data to the City. PROJECT SCHEDULE &TIMELINE The project timeline and schedule of deliverables will be established and finalized during the initial meetings with management; individual project tasks will be scheduled as appropriate to complete the study within the agreed upon timeframe. We recommend that the City allow five months for this project to depending on the timing of a contract award, availability of City staff. Provided that the City awards a contract and can provide the necessary project information in a timely manner, the Archer Company is available to begin work two weeks of contract execution. Our projected project time frame is provided below. Items that impact the timeline include participants completing the salary survey and client review time. Task Description Total Fees Orientation Meetings Week 1 Conduct Pay Survey Weeks 3 - 11 Employees Complete CPA's Weeks 4 - 5 Conduct Job Analysis Weeks 6 - 7 Conduct Job Evaluation Weeks 8 -9 Develop Salary/Benefits Analysis Weeks 12 - 14 Reviews Descriptions Weeks 10 - 13 Review/Revise Policies Weeks 13 - 14 Draft Report Week 14 Final Report Week 18 22 The Archer Company ATTACHMENT B PROJECT SCHEDULE Task Description Timeframe Orientation Meetings Week 1 Conduct Pay Survey Weeks 3— 11 Employees Complete Comprehensive Position Questionnaires Weeks 4— 5 Conduct Job Analysis Weeks 6—7 Conduct Job Evaluation Weeks 8—9 Develop Salary/Benefits Analysis Weeks 12 — 14 Review Job Descriptions Weeks 10 -13 Review/Revise Policies Weeks 13 - 14 Draft Report Week 14 Final Report Week 18 ATTACHMENT B PROJECT SCHEDULE Task Description Timeframe Orientation Meetings Week 1 Conduct Pay Survey Weeks 3 — 11 Employees Complete Comprehensive Position Questionnaires Weeks 4— 5 Conduct Job Analysis Weeks 6—7 Conduct Job Evaluation Weeks 8 —9 Develop Salary/Benefits Analysis Weeks 12— 14 Review Job Descriptions Weeks 10 -13 Review/Revise Policies Weeks 13 - 14 Draft Report Week 14 Final Report Week 18