AGENDA MEMORANDUM

 

 

Meeting Date:           May 22, 2006

 

From:                          J. Cunningham Perry, Human Resources/Safety Director

 

Subject:                      Resolution authorizing a contract with Water’s Consulting Group, Inc., Sfor a Skill-Based Pay Compensation Survey

 

 

Staff Recommendation:

 

Staff recommends approval of the attached proposal for Skill-Based Pay Compensation Structure Development services by Water’s Consulting Group Inc., in the amount of $65, 000.00.

 

Analysis:

 

Since 1997 the City has been faced with salary compression issues.  The problem stems from the lack of methodology, policies and/or systems which address these ongoing issues.  In 2001, the MGT study chose 58 benchmark positions for the survey.  The City’s investment to bring positions to market value was significant, but compression issues continue to exist.  Based on this ongoing dilemma the City went in search of a company with extensive experience/history in the area of skill based pay systems, broadbandingbroad banding and policy development.  The president and founder of the company, Rollie O. Waters, whose proposal is submitted for your review, literally “wrote the book” regarding compensation and pay system development.  The book is titled, Skill-Based Pay – System Development & Implementation.  The process includes everything from building the foundation (traditional pay structure vs. skilled based pay) to new process implementation and administration.

 

The Waters Consulting Group, Inc. (WCG) is a nationally recognized management consulting firm specializing in innovative compensation systems development, performance management and organizational analysis.  Since the firm’s establishment in 1976, WCG has emerged as a leader in evaluating, designing and installing state-of-the-art total compensation and human resource systems.

 

On February 14, 2006 the Commission did not approve the submitted contract due to the proposed cost of $85,000.  We have re-negotiated the contract to include review of two departments – Environmental Services and Electric.  The re-negotiated contract amount has been reduced by $20,000, to $65,000.  The re-negotiated amount will result in more work being completed by in-house staff which will include training to implement the process for the remaining City departments.

 

Options:

1.  Approval of the attached proposal as submitted, or

 

2.  Such alternative action as the Commission may deem appropriate

 

 

Fiscal Impact: 

 

During the fiscal year 05/06 budget planning process approximately $45,000 was budgeted for salary survey purposes. in line item 001-1437-513-3410.  Staff proposes utilizing the budgeted amount of $45,000 during fiscal year 05/06 and budgeting the remaining $20,000 in fiscal year 06/07.  With your approval, we anticipate completion of the services by December, 2006. 

 

 

Submission Date and Time:    6/12/2006 12:56 PM6/7/2006 2:42 PM6/7/2006 11:45 AM5/12/2006 10:43 AM5/12/2006 9:40 AM5/11/2006 3:07 PM5/11/2006 1:07 PM5/10/2006 5:42 PM____

 

Department: ______________________

Prepared by:  ______________________                     

Attachments:         Yes____   No ______

Advertised:   ____Not Required ______                     

Dates:   __________________________                     

Attorney Review :       Yes___  No ____

                                                

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head ________

 

Finance  Dept. __________________                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager ________RS___________

 

Account No. __001-1437-513-3410________________

 

Project No. ___________________

 

WF No. ______________________

 

Budget  _______$45,000_______________

 

Available _______$60,000______________

 

RESOLUTION NO._______________

 

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT WITH THE WATER'S CONSULTING GROUP, INC., FOR SKILL-BASED PAY COMPENSATION STRUCTURE DEVELOPMENT; AND PROVIDING AN EFFECTIVE DATE.

 

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

 

            THAT the Mayor and City Clerk are hereby authorized to execute an agreement  with (NAME OF COMPANY,)Water’s Consulting Group, Inc. whose address is __(MAILING ADDRESS OF COMPANY)___2695 Villa Creek Drive, Suite 104, Dallas, Texas  75234, for __(LIST THE SERVICE TO BE PROVIDED________  a skill-based pay compensation structure development.(give the bid or RFP number if applicable.

 

             THAT this resolution shall become effective immediately.

 

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the __12th___ day of __June_______ 2006

 

 

 

                                                                            __________________________

                                                                             Mayor

 

ATTEST:

 

 

__________________________

City Clerk