HomeMy WebLinkAboutCarlson Consulting, LLC/Compensation Study 2011 PROFESSIONAL SERVICE AGREEMENT BETWEEN
CITY OF OSHKOSH AND CARLSON CONSULTING, LLC
This professional service agreement (hereinafter the "Agreement ") is made and
entered into by and between the City of Oshkosh, a municipal corporation (hereinafter
the "City "), with an address of 215 Church Avenue, Oshkosh, P.O. Box 1130, WI
54903 -1130, and Carlson Consulting, LLC., a Wisconsin limited - liability company
(hereinafter "Consultant "), with an address of 6907 University Avenue #152, Middleton,
WI.
WHEREAS, the City wishes to enter into an agreement with Consultant to provide
professional consulting services for a comprehensive assessment of the City's current
classification /compensation program for all regular full time, regular part time and page
staff as well as a market analysis for wages in comparable jobs in the City's competitive
market and design a new salary plan; and
WHEREAS, the City has been a compensation client of Consultant for over ten
years, having developed a job evaluation system and compensation plan for
management and supervisory staff (sometimes referred to as non - represented staff) in
2001 that was adopted by the City Council and maintained in the interim.
WHEREAS, the City currently employs approximately 650 full and part-time staff,
having an annual payroll of slightly less than $30 million, in over 60 job classifications in
the management/supervisory group and over 150 classifications covering all other staff.
WHEREAS, the Consultant is willing to provide the above - referenced professional
consulting services to the City.
THEREFORE, the City and Consultant agree to the following:
1. Term. The term of this Agreement shall be from the date of the last signature
of this Agreement until all services are completed; but shall be completed no
later than October 28 2011.
2. Scope of Services. The Consultant shall provide to the City consulting services
as follows:
a) Review and analyze relevant organizational values and concerns. Determine
current organizational needs in regards to a classification and compensation
system.
b) Discuss with City leadership the issue of pay progression with appropriate
consideration for both length of service and performance. Make
recommendations based on the identified pay philosophy, feasibility and
affordability.
c) Conduct project orientation sessions for all staff to explain the scope of the
project, our methods, and each employee's role.
d) Assist the City in developing a total compensation measurement method that
will support the strategic management of its pay plans.
e) Document position responsibilities for all represented positions using the
same job documentation /analysis tools implemented for the management and
supervisory staff.
f) Apply the Point Factor Job Evaluation system to all positions to balance
internal relationships with market factors.
g) Determine desired total compensation policy; i.e., the appropriate relationship
between pay and benefits, the appropriate market(s), and the City's intended
target for pay practices in relation to the market.
h) Conduct marketplace research to determine appropriate competitive
compensation (base pay) relationships so the City can successfully
recruit/retain highly qualified employees.
i) Comment on the quality and cost of the benefit program and recommend
modifications that seem warranted by the City's total compensation
philosophy.
j) Design pay range options that are consistent with the City's pay policy and
reflect appropriate pay practices for public sector employees at these levels.
k) Recommend allocations of each position to an appropriate pay grade based
on appropriate internal equity and marketplace considerations. (To the extent
that wages are bargained collectively, these are intended to guide future
negotiations.)
I) Review supporting pay administration policies in the human resource
handbook.
m) Review the current process for internal maintenance of the classification and
compensation system, making recommendations as appropriate.
n) Conduct classification appeals following adoption of a new plan by Client.
Appeals must be submitted within 30 days of plan adoption.
o) Develop follow -on project proposals for the design and implementation of a
pay- for - performance system and an employee engagement survey method.
3. Report. The City intends to use the results of this study to shape its 2012
budget, and Consultant will submit a draft findings and recommendations by
August 31.
4. Fees. The City shall pay the Consultant the total amount of $70,000.00 plus
out -of- pocket travel costs for performance of the above services. It is
understood that the Library has positions included in this study and is expected
to contribute $7,000 to the City as its portion of the study. City shall pay
Consultant in four installments: $20,000 each on the first of June, July, and
August, and a final installment of $10,000 upon receipt of draft findings and
recommendations.
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5. Expenses. Out -of- pocket travel expenses for lodging, meals, and mileage
reimbursement at the IRS approved rate shall be approved by the City before
incurring and invoiced by Consultant on a monthly basis.
6. Fee Credit. The City and Consultant acknowledge that there is at least one
other area community that has expressed an interest in a similar project, and, if
Consultant enters into a consulting relationship with such a client and the labor
market measurement portion of the project is sufficiently similar to the City's
and is timely, then Consultant will give the City a $5,000 credit toward the
professional fee for its project.
7. Performance Requirements of Consultant. The Consultant shall complete the
services as stated above. The Consultant shall furnish all labor, materials,
administration, services, supplies, equipment, transportation, and quality control
necessary to provide professional consulting services. Consultant shall provide
a progress reports upon request by the City.
8. Performance Requirements of City. The City shall provide and make available
to the Consultant access to its human resources and related systems of record
as necessary to fulfill said services.
9. Confidentiality. The Consultant agrees to keep any confidential information it
obtains during this study in a secure location and shall not disclose it to third
parties without the consent of the City.
10. Independent Contractor. It is mutually understood and agreed, and it is the
intent of the parties hereto, that an independent contractor relationship be and
is hereby established under the terms and conditions of this Agreement. The
Consultant shall remain an independent contractor under this Agreement. All
employees of Consultant or subcontractors shall remain the responsibility of the
Consultant and shall not become employees of the City under this Agreement.
No tenure or any rights or benefits, including worker's compensation,
unemployment insurance, medical care, sick leave, vacation leave, severance
pay, withholding taxes or other benefits available to City employees shall
accrue to the Consultant or its employees performing services under this
Agreement.
11.Open Records. The Consultant agrees to cooperate with the City in responding
to any open records requests that the City receives.
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12. Indemnification. The Consultant agrees it shall defend, indemnify, and hold
harmless the City, its officers, and its employees against any and all liability,
losses, costs, damages, and expenses, including attorney fees that the City, its
officers or its employees, may hereafter sustain, incur or be required to pay
arising out of the negligent or intentional acts or omissions of the Consultant, its
officers or employees. The City agrees it shall defend, indemnify, and hold
harmless the Consultant, its officers, and its employees against any and all
liability, losses, costs, damages, and expenses, including attorney fees that the
Consultant, its officers or its employees, may hereafter sustain, incur or be
required to pay arising out of the negligent or intentional acts or omissions of
the City, its officers or employees.
13.Applicable Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Wisconsin in effect on the date of this
Agreement.
14. Assignment. Neither party to this Agreement may assign or transfer this
Agreement, or any part thereof, without the written consent of the other party.
15. Severability. If any provision of this Agreement is held to be illegal, invalid or
unenforceable, such provision shall be fully severable and this Agreement shall
be construed and enforced as if such illegal, invalid or unenforceable provision
had never comprised a part of the Agreement. The remaining provisions shall
remain in full force and effect and shall not be affected by the illegal, invalid or
unenforceable provision or by its severance.
16. Binding Effect. This Agreement shall extend to and be binding upon and inure
to the benefit of the parties.
17. Entire Agreement. This Agreement sets forth the entire understanding of the
parties and supersedes all prior arrangements and /or understandings, whether
written or oral, with respect to the subject matter contained in this Agreement.
No terms, conditions, warranties, other than those contained herein, and no
amendments or modifications hereto shall be binding unless made in writing
and signed by the City and the Consultant.
CITY OF OSHKOSH, WI CARLSON CONSULTING, LLC
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By: , / /,/, - By: 6 / J
Date: s-/3 ` f Date: S1 -gl l l
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