Comprehensive Pay Plan Salary Review
AGREEMENT BETWEEN THE CITY OF SALINA
AND McGrath CONSULTING GROUP, INC. FOR A
COMPREHENSIVE PAY PLAN SALARY REVIEW
THIS AGREEMENT made by and between McGrath Consulting Group, Inc.,
hereinafter called the consultant, and the City of Salina, hereinafter
called the City.
WHEREAS, the consultant submitted a proposal, dated July 2006, to the
City to conduct a compensation study. WHEREAS, the City selected the
consultant to perform this study.
NOW, THEREFORE, the parties (the City and the Consultant) do mutually
agree to the following:
The City shall engage the consultant to perform the work described
in its proposal of April, referred to as the PROJECT, which is incorporated
herein by reference and in Appendix A.
The project shall be undertaken and completed in such sequence
as to assure the expeditious completion and best carry out the purposes
of the agreement. The Project will begin after August 7,2006 with
information pertaining to the costing/budgeting of the compensation
system by November 30, 2006 and the final report by December 31 , 2006.
The Consultant agrees to complete the project in an agreed upon
timeline for a total compensation of $30,000 to include all consultation
fees, pre-determined travel expenses, time and materials. The City agrees
to pay the Consultant for work on the Project and expenses incurred, as
the performance of such work is demonstrated by submission of an
invoice for $5,000 upon receipt of the signed contract; $19,000 upon
submission of the draft report; and the balance of $6,000 upon submission
of the final report. Compensation for additional trips to the City outside of
the five (5) or additional work beyond the scope of the proposal will be
paid to the Consultant at the rate of $800 per day plus expenses. The City
shall remit payment within 30 days of receipt of said billing. In
consideration of this agreement, the City agrees to:
. Assure reasonable access to the members of the organization,
Le., City Managers, selected supervisors, and other appropriate
employees - as agreed upon with the City Manager.
. Afford prompt decisions on matters affecting the progress of the
work.
McGrath Consulting Group, Inc.
GENERAL CONSIDERATIONS
1. The City Ownership and Proprietary Information - The parties expressly
agree that all data, documents, records, studies, or other information
generated, created, found or otherwise completed by consultant in
the performance of consultant's duties under the terms of this contract
shall at all times remain the proprietary information of and under the
ownership of the City. All data, documents, records, studies, or other
information generated, referred to above, shall be provided to the City
by consultant upon request so long as the City is not in default under
other terms of this agreement.
2. Nondiscrimination -In consideration of the signing of this Agreement,
the parties hereto for themselves, their agents, officials, employees,
and servants agree not to discriminate in any manner on the basis of
race, color, creed, or national origin with reference to the
performance of this Agreement.
3. Termination and Suspension
a. This Agreement will continue in full force and effect until
completion of the Project as described in the proposal unless
it is terminated for nonperformance as outlined below.
b. If either party fails to perform as required by this Agreement,
the other party may terminate it by giving written notice of
such failure to perform and the intent to terminate. If the
party receiving such notice does not cure its failure to
perform with 20 days of such notice, the party issuing such
notice may then terminate the Agreement by giving written
notice of termination to the other party.
c. In the event of termination, the Consultant will be paid by the
City for all services actually, timely, and faithfully rendered up
to the receipt of the date of termination. The Consultant will
provide all work documents developed up to the date of
termination after the City renders final payment for service.
4. Successors and Assigns- The City and the Consultant each bind the
other and assigns, in all respects, to all of the terms, conditions,
covenants, and provisions of this Agreement. and any assignment or
transfer by the Consultant of it interest in this Agreement without the
written consent of the City shall be void.
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5. Compliance with Law - The Consultant will comply with any and all
applicable federal, state, and local laws (known to the Consultant) as
the same exist and may be amended from time to time.
6. Amendment of Agreement - This Agreement shall not be altered,
changed or amended except by mutual written agreement of the
parties.
7. Indemnification Clause -For purposes of this section, work performed is
that provided in accordance with the scope of service contained
hererein and recommendations pertaining to the scope of services
contained in this Agreement, as presented to the City for review and
approval. Notwithstanding anything herein to the contrary, to the
maximum extent permitted by law, the Consultant shall not be liable
for consequential damages or for actions resulting from performing
and making recommendations to the compensation system.
Any confidential information provided to or developed by the
Consultant in the performance of the agreement shall be kept
confidential and not made available to any individual or organization
by the Consultant without the prior written approval and consent of
the City.
8. Whole Agreement - This agreement constitutes the entire agreement
between the City and the Consultant. Any modification must be in
writing and approved by the City and the Consultant. The agreement
incorporates all the agreements, covenants, and understanding
between the parties concerning the subject matter hereof, and all
such covenants, agreements, and understands have been merged
into this written agreement.
9. Independent Contractors - The Consultant and its agents and
employees are independent contractors performing professional
services for the City and are not employees of the City. Nothing herein
shall be construed as incurring for the City any liability for Worker's
Compensation, FICA withholding tax, unemployment compensation,
or any other payment, which would be required to be paid by the City
if the City and the Consultant were standing in an employer/employee
relationship, and the Consultant hereby agrees to assume and pay all
such liabilities.
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1 O.Subcontract - The Consultant shall not subcontract any portion of the
services to be performed under this agreement without the prior
written prior approval of the City.
The parties have executed this Agreement. the day and year first above
written.
Approved By:
By:
N'O~L~
City of Salina
Victoria J. :Mcqratli
Victoria McGrath. Vice President
McGrath Consulting Group, Inc.
<g-1--()u;
Date
July 31, 2006
Date
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Appendix A - Project Summary
A. General Information
Company: McGrath Consulting Group, Inc.
P.O. Box 190
Wonder Lake, IL 60097
Office:
Wonder Lake, IL
Contact:
Primary Consultant: Victoria McGrath, Ph.D.
Phone: (815) 728-9111
Fax: (815) 331-0215
Web: www.mcgrathconsultina.com
Email: victoriaphd@comcast.net
B. Consulting Team
Consultino Firm
McGrath Consulting Group, Inc., specializes in public sector consulting.
The principals combine hands-on experience in municipal government
with education to create programs that specifically meet our client's
needs. The team of professionals that will be assigned to this project all
have experience in either municipal government and/or human resources
and are committed to developing an understanding of your
organization's philosophy, culture, and the issues facing your community.
Team Qualifications
To ensure the timely, successful completion of this project, Dr. Victoria
McGrath, SPHR will be designated as the lead consultant to this project.
Dr. McGrath is Vice President of McGrath Consulting and has over 17
years of hands-on experience in the field of human resources.
C. Work Plan
The City of Salina is seeking an evaluation and analysis of its existing
classification and compensation plan with recommendations to either
update and/or change the system to ensure a competitive, fiscally
responsible plan.
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The final product will be a comprehensive report that delineates the
methodology, recommendations, implementation and maintenance of
the system, and fiscal impact.
The approach to our compensation assistance is summarized in the
following project steps. Our approach is characterized by a systematic,
logical series of tasks aimed at assuring thoroughness, consistency, and
objectivity. These tasks may not be completed in the order in which they
are listed, since some tasks may be conducted independently or
concurrently for maximum efficiency and effectiveness.
Proiect Orientation
The coordination with the consulting team and City administration is an
important step to ensure the success of the project. We recommend
meeting with Administration regarding the scope of the study, its process,
and project outcome. A clearly defined game plan typically results in a
successful conclusion.
Interviews
It is essential for the consultants to involve elected officials, administration,
supervisors, and employees in the process. Individual interviews are
conducted with appropriate elected officials, City administration, and
supervisors to ascertain their understanding of the current system, opinions
regarding changes, and any challenges they may be experiencing with
specific positions within each department. Further, the consultant will
explain the job analysis process, as well as the direction and outcome of
the project.
Group interviews will be conducted with employees in the City, with the
intent to gain their understanding of the current system, prOblems that
they may be encountering, as well as where they feel the consultant can
find comparable salary data. The consultant will use this forum to also
discuss the scope of the project the expectations of the project and its
potential outcomes - for example that is atypical to find that the majority
of positions are under market. It has been beneficial in compensation
studies to include employees, as well as try to obtain information that they
believe is critical to the correct positioning of their position in either the
classification or compensation system, even if it is from the private sector.
A second consultant will also be available during the first visit to assist with
individual employee interviews as needed.
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The consultant will work with the human resource director to identify
individuals and/or positions that require individual attention.
Job Evaluation
A job analysis questionnaire will be completed on all job titles for purposes
of:
· Expanding upon information provided in job descriptions to
accommodate factors included in a formal job evaluation plan.
· Clarifying instances where statements in the existing job descriptions
are vague or absent.
· Probing for the interrelationship with other positions and how the
position serves to fulfill the City's overall values, vision, and
objectives.
· Conducting a comprehensive salary market analysis - job
questionnaires are utilized to compare like job responsibilities rather
than reliance on job titles.
The questionnaires will also be useful in establishing the current positions
skills, qualifications, and responsibilities for the update and/or
development of job descriptions. The questionnaire is designed
specifically to meet the needs of the City of Salina.
Job Descriptions
Job descriptions/questionnaires for all job titles included in this study will be
analyzed for appropriate FLSA classification [exempt/non-exempt).
Once the project is complete, the job analysis questionnaires can be
given to the human resource department for the purpose of updating
and/or developing job descriptions. If the City desires, the Consultants
can submit a price for the updating of all job descriptions.
Position Validation
Each incumbent's supervisor will review the completed questionnaire for
content and accuracy. Where questions arise, the consultant will meet
with specific employees and their supervisor to Clarify position information.
Market Survey
A market survey, designed specifically for the City of Salina will be sent to
mutually defined organizations. The Consultant and the City will work
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together to identify organizations to collect market data for the City, as
well as specific positions. The survey will identify a number of benchmark
positions for comparison to other municipalities. If the City desires, specific
information on benefits can be identified and solicited. During the
orientation meeting, the specific benefits to be collected, as well as the
purpose of the information will be ascertained and then presented in such
a manner to meet the goals of the City.
McGrath Consulting is in the data analysis phase of the project for the City
of Manhattan, thus, many of the surrounding municipalities within the
State of Kansas have already provided data. Thus, we can solicit
additional benchmark data for positions not obtained in the Manhattan
study to give the City of Salina a more comprehensive list of benchmark
salaries.
The market survey data will be the basis of establishing a 'market rate'
that fits with the compensation philosophy of the City. Salary ranges will
be established utilizing the market data, as well as ensuring internal equity
between positions.
Classification and Compensation Analysis & Development
The classification and compensation system will be updated or
developed according to the principles of sound compensation
administration, which will provide for an integration of the job evaluation
results, competitive market data, internal equity, and existing pay
practices.
McGrath Consulting will either revise the current classification and
compensation structure(s) or recommend a new methodology, including
separate compensation plans for different City departments. We do not
'sell' you a system; rather, we work with you to design one that meets your
organization's strategic direction and compensation philosophy. Thus, we
are adept at developing step systems and pay ranges utilizing the
following systems: point-factor, step, decision band, broadbanding, or
any combination of these. The goal is to develop a comprehensive
classification and compensation system that is fiscally sound, maintains
'fair' compensation, and is easy to understand and administer. For
example, the compensation study with Centre Region Council of
Governments resulted in the revision and/or development of five very
different compensation systems in order to meet each organization's
unique needs.
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Once a draft system has been developed, the primary consultant will
meet with the Human Resource Director, City Manager, and other
appropriate personnel to review the system, personnel placement within
the system, and the fiscal impact to the organization prior to delivering
the draft report. This provides City administration the opportunity to
review the recommendations, provide input, and potentially avoid any
problems during the implementation phase.
McGrath Consulting is a member of the World at Work (formerly the
American Compensation Association) and uses the most current statistical
analysis in the development of compensation structures.
In accordance with this Agreement, McGrath Consulting will determine
the cost impact of implementing the recommendations provided current
salary data is received. The City is responsible for taking the costing
information and incorporating into their budget process. Depending upon
the fiscal impact, implementation strategies will be offered with a
preferred recommendation. The Consultant will meet with the City, upon
developing a draft compensation strategy, to ensure it meets with the
City's goals and objectives, as well as fiscal parameters. McGrath
Consulting will work with the City to develop an implementation strategy
that fits within their fiscal guidelines.
Report
McGrath Consulting will provide the City with a comprehensive report
detailing the study methodology, raw salary data, recommended
modifications, fiscal impact (where appropriate), and corresponding
policy and procedures in order to administer and maintain the system.
We can also work with the Human Resource Director to assist in any
training that might be necessary to successfully implement the
compensation system.
A representative of the City will be asked to review a draft copy of the
report to ensure it completeness and correctness of information. The
study cost includes a presentation to appropriate governing officials and
City Administration. McGrath Consulting will provide the City five (5)
copies of the report(s), along with a PDF copy of the report(s). and the
excel spreadsheet(s) for future modification and implementation.
D. Project Timeline
A study of this size should take approximately six (6) months to complete.
The portion that typically takes the most time is receiving salary
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questionnaires from participating municipalities. Once received it takes
approximately one-two months to tabulate and analyze the data to
develop a salary structure.
Month One - (Auaustl:
Distribution of job analysis questionnaire for employee completion.
Consultant to send list of required data. Telephone/email discussions with
project leader regarding timing and scheduling of interviews.
Visit by consulting team to define scope of project, gather pre-
determined documentation, meet with each department supervisor, and
conduct group and individual employee meetings. Anticipate visit to last
4-5 days.
Months Two-Three -(September - October):
Development and distribution of market survey. Follow-up to ensure
timely response.
Months Four - (November):
Analysis of data and development of recommendations. Schedule
second visit, if necessary, to discuss preliminary recommendations and
fiscal impact. Provide information pertaining to the costing, budgeting
and possible phasing of implementation of the compensation system by
November 30th.
Month Five - (December]:
Finalization of recommendations and development of final written and
electronic reports. Send draft to selected representative for review.
Schedule final presentation (s).
The timeframe will be one that is mutually discussed and agreed upon by
the City and Consultant. During the entire study process, McGrath
Consulting believes in communication to ensure all understand the
project, concerns, ideas, etc.
E. Project Costs
The total cost for the project is $30,000. Costs include all consultant travel
expenses, time and materials, 5 final copies of the report and one copy as
a PDF file, and all other expenses. The cost is divided into three payments
- the first portion at the signing of the contract; the second upon
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submission of the draft report, and the final upon submission of the final
report.
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