HomeMy WebLinkAboutReso 2006-982
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RESOLUTION NO. 2006-.3.:&.::0
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
SUNNY ISLES BEACH, FLORIDA, APPROVING A PROFESSIONAL
SERVICES AGREEMENT WITH THE MERCER GROUP, INC., TO
CONDUCT A COMPENSA TION/CLASSIFICA TION STUDY AND
DEVELOP AND IMPLEMENT A PERFORMANCE EVALUATION
SYSTEM, IN AN AMOUNT NOT TO EXCEED EIGHTEEN THOUSAND
SEVEN HUNDRED FIFTY DOLLARS ($18,750.00), ATTACHED
HERETO AS EXHIBIT "A"; AUTHORIZING THE MAYOR TO
EXECUTE SAID AGREEMENT; AUTHORIZING THE CITY MANAGER
TO DO ALL THINGS NECESSARY TO EFFECTUATE THE TERMS OF
THIS RESOLUTIONjPROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City of Sunny Isles Beach is a fully operational city, providing essential
health and welfare services to its residents, and
WHEREAS, in its mission to provide said services, the staff of Sunny Isles Beach has
grown to a level of one hundred plus (100+) full and part time employees; and
WHEREAS, in May 2004 the City entered into an agreement with The Mercer for a
compensation/market survey analysis and related services to review the City's compensation
plan for competitiveness, in an effort to continue to retain and attract highly qualified personnel;
and
WHEREAS, the City desires to continue to be competitive with regard to salary and
classification and to explore the option of implementing a classification style that is more
sensitive to internal equity among positions that are more customary for local government; and
WHEREAS, the Mercer Group, Inc., a firm with substantial expertise in this field, has
conducted similar compensation studies for numerous government agencies similar to include the
City; and
WHEREAS, the Mercer Group has submitted a proposal for a comprehensive
compensation/classification study for certain full-time positions, in an amount of Nine Thousand
Seven Hundred Fifty Dollars ($9,750.00), and to develop and implement a performance
evaluation system for all full-time employees, in an amount of Nine Thousand Dollars
($9,000.00), for a total contract price of Eighteen Thousand Seven Hundred Fifty Dollars
($18,750.00); and
WHEREAS, the professional services requested under the aforementioned contract is
exempt from the competitive bidding requirements under Ordinance No. 2000-101.
R2006-Mercer Group Camp-Class Plan & Performance Evaluation Page I of2
NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS:
Section 1. Approval of Agreement. The Agreement with The Mercer Group for a
comprehensive compensation/classification study and the development and implementation of a
performance evaluation system, in an amount of Eighteen Thousand Nine Hundred Fifty Dollars
($18,750.00), attached hereto as Exhibit "A", be, and the same, is hereby approved.
Section 2. Authorization of Mavor. The Mayor is hereby authorized to execute said
Agreement.
Section 3. Authorization ofCitv Manager. The City Manager is hereby authorized to do all
things necessary to effectuate the terms of the Agreement.
Section 4
Effective Date. This Resolution will become effective upon adoption.
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,ATTEST;:' .
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)ilne A. Hiries, CMC,. City Clerk
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APPROVED AS TO FORM AND
LEGAL SUFFI 'E CY
Moved by: CD~ ~I\L~V<
Seconded by: C .I'IWIIWl!hA.I~ IGL'i:S'II4.'c
Vote: '--1-0 ,(
Mayor Norman S. Edelcup
Vice Mayor Roslyn Brezin
Commissioner Gerry Goodman Ab~
Commissioner Danny Iglesias
Commissioner Lewis J. Thaler
V(Yes)
~(Yes)
_(Yes)
V(Yes)
----'L:.(Y es)
_(No)
_(No)
_(No)
_(No)
_(No)
R2006-Mercer Group Comp.Class Plan & Performance Evaluation Page 2 of2
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CITY OF SUNNY ISLES BEACH
PROFESSIONAL SERVICES AGREEMENT WITH
MERCER GROUP, INC.
CONTRACT NO. C0506-073
THIS CONSULTANT AGREEMENT made and entered into this 2.\~!ay of ~
2006, by and between the CITY OF SUNNY ISLES BEACH, FLORIDA, a municipal corporation of
the State of Florida, (hereinafter referred as to "City") and THE MERCER GROUP, INC., a Georgia
corporation, qualified to do business in Florida, with Corporate Headquarters at 5579 B Chamblee-
Dunwoody, Suite 511, Atlanta, Georgia 30338 and a North Carolina office located at 3443 Highway 39
North, Louisburg, North Carolina 27549 (hereinafter referred to as "Consuitant") whose Federal Tax
J.D. # is : 58-1877068.
WHEREAS, the City contracted with the Consultant 'in 2004 to conduct a
CompensationlMarket Study and to review the City's job reclassification process; and
WHEREAS, as a result of its 2004 study, the Consultant recommended that the City consider
adopting a classification system which would be more sensitive to internal equity among positions, the
type of classification system typically found in local governments; and
WHEREAS, the classification system currently used by the City IS a market sensitive
classification system; and
WHEREAS, except for positions covered by the Sworn Officer Pay Plan, the City desires to
conduct a comprehensive compensation/classification study for all full-time employees and to develop
and implement a performance evaluation system for all full-time employees; and
WHEREAS, Consultant has submitted a proposal to the City for these services in an amount not
to exceed Eighteen Thousand Seven Hundred and Fifty Dollars ($18,750.00); and attached hereto as
Attachment "A"; and
WHEREAS, the Consultant is qualified, willing and able to provide the desired services on the
terms and conditions set forth herein and the project will be conducted by its North Carolina branch,
which specializes in Compensation and Classification Studies; and
WHEREAS, the City desires to contract with Consultant to conduct a comprehensive
compensation/classification study, and develop and implement a performance evaluation system for the
City as outlined in Consultant's proposal.
NOW THEREFORE, in consideration of the premises and the mutual covenants herein
named, the parties hereto agree as set forth below:
1. RECITALS. The Recitals set forth above are hereby incorporated into this Agreement and
made a part of hereof for reference.
C0506-073 - Professional Services Agreement with The Mercer Group, Inc.
I
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City of Sunny Isles Beach
18070 Collins Avenue, Sunny Isles Beach, Florida 33 I 60
(305) 947-0606 phone (305) 949-31 13 Fax
2. SERVICES TO BE PERFORMED. Consultant shall provide all labor, supervision, materials,
supplies and equipment, to perform management consulting selvices as more particularly described in
Attachment "A" attached hereto and made a part hereof. This Agreement establishes the scope of
setvices, specifications and perfOlmance standards to be performed, as incorporated herein, and film
prices in accordance with the Consultant's proposal dated August 24, 2006.
a. Consultant agrees to furnish all labor and materials in a good and workmanlike and professional
manner, to perfOlm the work designated in Attachment "A" attached hereto, which is
incOlporated herein by reference.
b. The services described in Attachment "A" shall be perfOlmed by Consultant to the full
satisfaction of the City. Consultant agrees to immediately infOlm the City via telephone and in
writing of any problems that could cause damage to property or persons.
c. Consultant will require its employees to perform their work in a manner befitting the type and
scope of work to be performed. In the event that the Consultant fails to complete perfOlmance
pursuant to the terms of this contract and City must undertake the completion of performance of
services, Consultant agrees to indemnify the City for all costs incurred with respect to the
completion of those setvices and any damages the City may suffer as a result of the failure of
perfOlmance by Consultant.
3. ADDITIONAL SERVICES. If the need for additional work or changes under this Agreement
is identified by Consultant during the course of performing its obligations hereunder, Consultant shall
set fOlth such additional work and the cost thereof in a supplemental work order (a "Supplemental Work
Order") and submit such Supplemental Work Order for approval by the City. No such additional work
shall be done or paid for without the specific prior written approval of the City.
4. TERM. This Agreement shall be for a term of one (1) year, beginning September 21, 2006,
following approval from the City Commission, and ending September 21, 2007, unless tetminated
sooner pursuant to paragraph 11 of this Agreement. Services shall commence upon execution by both
parties and the issuance of a Notice to Proceed. Any change in fee, tetms or conditions shall be
accomplished by written amendment to this contract and approval by the City.
5. COMPENSATION. Payment to Consultant for all charges and tasks under this Agreement
shall not exceed a total amount of $18,750.00 in accordance with this Agreement and the schedule of
charges reflected in Attachment "A" and payable in the following installments.
a. Pavment Schedule.
(1) The City will compensate Consultant a total of Nine Thousand Seven Hundred
and Fifty Dollars ($9,750.00) to conduct a Compensation and Classification
Study, payable in tbe following installments:
i) 25% of contract amount at completion of initial site work and orientation.
ii) 50% of contract amount at completion of employee interviews.
C0506-073 - Professional SClviccs Agreement with The Mercer Group, Inc.
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City of Sunny Isles Beach
18070 Collins Avenue, Sunny Isles Beach, Florida 33160
(305) 947-0606 phone (305) 949-3113 Fax
iii) 25% of contract amount at presentation of Final Rep0l1.
(2) The City will compensate Consultant a total of Nine Thousand Dollars
($9,000.00) to develop and implement a Performance Evaluation System payable
as follows:
i)
35% of contract
Development
amount at completion of initial site work and Policy
Workshop.
ii) 50% of contract amount at completion of employee orientation and
supervisor training.
iii) 15% of contract amount at completion of midterm supervisory training.
b. Disbursements. There is no reimbursable expense associated with this contract.
c. Invoices. Invoices received for services rendered in confOlmity with the Agreement will
be sent to the Finance Depat1ment for payment. Invoices must reference the contract
number assigned hereto. Invoices will be paid in accordance with the State of Florida
Prompt Payment Act.
d. Availabilitv of Funds. The City's perfOlmance and obligation to pay under this
Agreement is contingent upon an annual appropriation for its purpose by the City
Commission.
e. Final Invoice. In order for both pm1ies herein to close their books and records, the
Consultant will clearly state "final invoice" on the Consultant's final/last billing to the
City. This cer1ifies that all services have been properly performed and all charges and
costs have been invoiced to the City. Since this account will thereupon be closed, any
and other additional charges, if not properly included on this final invoice are waived by
the Consultant.
Consultant shall make no other charges to the City for supplies, labor, taxes, licenses, permits,
overhead or any other expenses or costs unless any such expense or cost is incuned by Consultant with
the prior written approval of the City. If the City disputes any charges on the invoices, it may make
payment of the uncontested amounts and withhold payment on the contested amounts until they are
resolved by agreement with Consultant.
Consultant shall not pledge the City's credit or make it a guarantor of payment or surety for any
contract, debt, obligation, judgment, lien, or any fOlm of indebtedness. The Consultant further wan'ants
and represents that it has no obligation or indebtedness that would impair its ability to fulfill the telms of
this Agreement.
6. UNDISCLOSED CONDITIONS. In the event that undisclosed conditions are discovered
during the perfOlmance of this Agreement, the City shall have the right to cancel this Agreement upon
C0506.073 - Professional Selvices Agreement with The Mercer Group, Inc.
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City of Sunny Isles Beach
18070 Collins A venue, Sunny Isles Beach, Florida 33160
(305) 947-0606 phone (305) 949-3113 Fax
thirty (30) days written notice to Consult'ant. Upon termination, the City may re-bid the project if the
Consultant fails to perfOlm under this Agreement due to the undisclosed conditions.
7. INDEPENDENT CONTRACTOR RELATIONSHIP. The Consultant is an independent
Contractor and shall be treated as such for all purposes. Nothing contained in this agreement or any
action of the patties shall be construed to constitute or to render the Consultant an employee, paltner,
agent, shareholder, officer or in any other capacity other than as an independent Contractor other than
those obligations which have been or shall have been undertaken by the City, Consultant shall be
responsible for any and all of its own expenses in performing its duties as contemplated under this
agreement. The City shall not be responsible for any expense incun-ed by the Consultant. The City
shall have no duty to withhold any Federal income taxes or pay Social Security services and that such
obligations shall be that of the Consultant, other than those set fOlth in this agreement. Consultant shall
furnish its own transportation, office and other supplies as it detelmines necessary in carrying out its
duties under this agreement.
8. INSURANCE. Consultant shall, at its sole cost and expense, during the period of any work
being perfOlmed under this Agreement, procure and maintain the following minimum insurance
coverage to protect the City and Consultant against all loss, claims, damage and liabilities caused by
Consultant, its agents, sub-Contractors or employees, as indicated below:
D
Comprehensive General liability insurance, including broad fOlm contractual liability
coverage for all operations, including, but not limited to, contractual, products, and
completed operations, personal injUty and property damage liability with minimum
limits of One Million Dollars ($1,000,000) per occUt1'ence and Two Million Dollars
($2,000,000) aggregate.
D
Worker's Compensation, as required by law, but with no less than $1,000,000 for
Employer's Liability.
D
Business Automobile Liability which shall include coverage for all owned, non-owned
and hired vehicles for minimum limits of not less than One Million Dollars ($1,000,000)
per occurrence, One Million Dollars ($1,000,000) per accident for bodily injury and Five
Hundred Thousand Dollars ($500,000) per accident for propelty damage_
D
Umbrella/Excess Liability coverage in addition to the foregoing limits that when
combined with the foregoing limits provide total coverage of at least Five Million
Dollars ($5,000,000).
Insurance required of the Consultant shall be primary to, and not contribute with, any insurance or self-
insurance maintained by the City.
Such insurance shall not diminish Consultant's indemnification and obligations hereunder. The
insurance policy(ies) shall be issued by companies authorized to do business under the laws of the State
of Florida and acceptable to the City with a minimum Best rating of A-Excellent. Before any work
under this Agreement is performed, and at any time upon request, Consultant shall furnish to the
City certificates of insurance evidencing the minimum required coverage and shall be
COS06-073 - Professional Selvices Agreement with The Mercer Group, Inc.
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City of Sunny Isles Beach
18070 Collins Avenue, Sunny Isles Beach, Florida 33160
(305) 947-0606 phone (305) 949-3113 Fax
appropriately endorsed for contractual liability, with the City named as additional insured. All
policies shall contain a waiver of subrogation endorsement. All policies and celtificates shall be in
forms and issued by insurance companies acceptable to the City's Risk Management Department. All
insurance policies and celtificates of insurance shall provide that the policies may not be canceled or
altered without thirty (30) days prior written notice to the City. The City reserves the right from time to
time to change the insurance coverage and limits of liability required to be maintained by Consultant
hereunder.
Consultant shall also require and ensure that each of its sub-Contractors providing services
hereunder (if any) procures and maintains, until the completion of the services, insurance of the types
and to the limits specified herein.
ANY EXCEPTIONS TO THE INSURANCE REQUIREMENTS IN THIS SECTION
MUST BE APPROVED IN WRITING BY THE CITY.
9. OWNERSHIP OF DOCUMENTS AND EOUIPMENT. All documents prepared by the
Consultant pursuant to this agreement and related services to this agreement are intended and
represented for the ownership of the City only. Any other use by Consultant or other parties shall be
approved in writing by the City.
Consultant shall deliver to the City for approval and acceptance, and before being eligible for
final payment or any amounts due, all documents and materials prepared by, and for, the City under this
Agreement.
All oral and written information not in the public domain or not previously koown, and all
information and data obtained, developed or supplied by the City, or at its expense, will be kept
confidential by the Consultant and will not be disclosed to any other party, directly or indirectly, without
the City's prior written consent, unless required by a lawful order. All drawings, maps, sketches,
programs, data base, reports and other data developed or purchased under this Agreement for, or at the
City's expense, shall be and remain the City's property and may be reproduced and reused at the
discretion of the City.
The City and Consultant shall comply with the provisions of Chapter 119, Florida Statutes
(Public Records Law).
All covenants, agreements, representations and wananties made herein, or otherwise made in
writing by any party pursuant hereto, including, but not limited to, any representations made herein
relating to disclosure or ownership of documents, shall survive the execution and delivery of this
Agreement and the consummation of the transactions contemplated hereby.
10. INDEMNIFICATION. Consultant agrees to indemnify and hold harmless, the City, its
officers, agents, and employees from, and against any and all claims, actions, liabilities, losses and
expenses including, but not limited to, attorney's fees for personal, economic or bodily injUlY, wrongful
death, loss of or damage to property, at law or in equity, which may arise or may be alleged to have
risen from the negligent acts, enors, omissions or other wrongful conduct of the Consultant, agents or
other personal entity acting under Consultant's control in connection with the Consultant's perfOlmance
C0506.073 - Professional Services Agreement with The Mercer Group, Inc.
5
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City of Sunny Isles Beach
18070 Collins A venue, Sunny Isles Beach, Florida 33160
(305) 947-0606 phone (305) 949-3113 Fax
of services pursuant to that agreement and to that extent the Consultant shall pay such claims and losses
and shall pay all such costs and judgments which may issue from any lawsuit arising from such claims
and losses including wrongful telmination or allegations of discrimination or harassment, and shall pay
all costs and attomeys' fees expended by the City in defense of such claims and losses including
appeals. The patties agree that ten percent (10%) of the total compensation is a specific consideration
from the City to the Consultant for this indemnity.
11. TERMINATION. The City may, for its convenience and without cause, terminate the
services then remaining to be perfOlmed provided that the Consultant is given thirty (30) days notice.
12. ASSIGNMENTS. TRANSFERS. SUBCONTRACTING. The Consultant shall not
subcontract, assign or transfer any work under this agreement without the prior written consent of the
City. Should the Consultant subcontract any services under this agreement, it shall be done with
continued liability for the Consultant. The Consultant shall remain responsible for services,
responsibilities and liabilities of any person or entity acting under Consultant.
13, TIME OF COMPLETION. The services to be rendered by the Consultant shall be
commenced upon execution of this contract and shall be completed by September 2], 2007. A
reasonable extension of time shall be granted in the event the work of the Consultant is delayed or
prevented by the City or by circumstances beyond the reasonable control of the Consultant including
weather conditions or acts of God which render the performance of the Consultant's duty impracticable.
14. AUTHORITY TO PRACTICE. Consultant hereby represents and wan'ants that it has and will
continue to maintain all licenses and approvals required to conduct its business and that it will at all
times conduct its business activities in a reputable manner. Proof of such licenses and approvals shall be
submitted to the City prior to commencement of work under this Agreement.
15. MODIFICATIONS OF WORK. The City reserves the right to make changes in the work,
including alterations, reductions or additions thereto. Upon receipt of the City's notification of a
contemplated change, the Consultant shall (1) if requested by the City, provide an estimate for the
increase or decrease in cost due to the contemplated change, (2) notify the City of any estimated change
in completion date, and (3) advise the City in writing if the contemplated change shall affect the
Consultant's ability to'meet the completion dates or schedules of this Agreement.
16. COORDINATION OF SERVICES. The City's representative/liaison during the perfOlmance
of this Agreement shall be Thomas Acquaro, Human Resources Director whose phone number is
305/792-] 708. Any requests received from other City depattments/divisions shall be refen'ed to
Thomas Acquaro first for approval or if Thomas Acquaro is unavailable to the City Manager, A.
John Szerlag for approval prior to the commencement of any work. Services performed without
authorization by Thomas Acquaro, Human Resources Director, or the City Manager, A. John
Szerlag, shall be considered unauthorized and shall not be compensated/paid by the City.
17. ARBITRATION. It is the intention of the parties that whenever possible, if a dispute or
controversy arises hereunder then such dispute or controversy shall be settled by arbitration in
accordance with the procedures, rules and regulations of the American Arbitration Association. The
decision rendered by the Arbitrator shall be final and binding upon the parties and judgment upon the
C0506-073 - Professional Services Agreement with The Mercer Group, Inc.
6
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City of Sunny Isles Beach
18070 Collins Avenue, Sunny Isles Beach, Florida 33160
(305) 947-0606 phone (305) 949-31 13 Fax
award rendered by the arbitrator may be entered in any COUlt having jurisdiction. Arbitration shall be
held in Miami-Dade County, Florida. The non-prevailing party shall pay all costs of arbitration and
attomeys' fees incul1'ed by the parties or, if neither party prevails on the whole, each patty shall be
responsible for a portion of the costs of arbitration and their respective attomeys' fees as may be
detelmined by the COUlt on confilmation.
18. CONFIDENTIAL INFORMATION. The Consultant shall not, either during the term of this
Agreement or any time for a period ofTen (10) years subsequent to that date upon which the Consultant
shall leave the employment of the City for any reason whatsoever, disclose to any person or entity, other
than in the discharge of the duties of the Consultant under this Agreement, any information which the
City designates in writing as "confidential." As a violation by the Consultant of the provisions of this
Section could cause it1'eparable injury to the City and there is no adequate remedy at law for such
violation, the City shall have the right, in addition to any other remedies available to it at law or in
equity, to enjoin the Consultant in a COUlt of equity for violating such provisions.
19. NOTICES. All notices and communications hereunder shall be in writing and shall be deemed
given when sent postage prepaid by registered or celtified mail, return receipt requested and, if intended
for City to A. John Szerlag, City Manager, with a copy to Hans Ottinot, City Attorney, City of
Sunny Isles Beach, 18070 Collins Avenue, Sunny Isles Beach, FIOlida 33160, and, if intended for
Consultant, shall be addressed to, The Mercer Group, Inc., 3443 Highway 39 North, Louisburg, NOlth
Carolina 27549, Attention: Phillip G. Robertson, Senior Vice-President, Telephone: 919/496-2080;
Fax: 919/496-7995.
20. GOVERNING LAW. The validity of this Agreement and the interpretation and performance
of all of its terms shall be construed and enforced in accordance with the laws of the State of Florida,
without regard to principles of conflict of laws thereof. The location of any action or proceeding
commenced under or pursuant to this Agreement shall be in Miami-Dade County, in the State of Florida.
21. AUDIT. The Consultant shall make available to the City or its representative all required
financial records associated with the Agreement for a period of three (3) years.
22. NON-DISCRIMINATION. The Consultant agrees to comply with all local and state civil
rights ordinances and with Title VI of the Civil Rights Act of 1984 as amended, Title VIlI of the Civil
Rights Act of 1968 as amended, Title 1 of the Housing and Community Development Act of 1974 as
amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990,
the Age Discrimination Act of 1975, Executive Order 11063, and with Executive Order 11248 as
amended by Executive Orders 11375 and 12086.
The Consultant will not discriminate against any employee or applicant for employment because of race,
color, creed, religion, ancesl1y, national origin, sex, disability or other handicap, age, marital/family
status, or status with regard to public assistance. The Consultant will take affirmative action to insure
that all employment practices are free from such discrimination. Such employment practices include but
are not limited to the following: hiring, upgrading, demotion, transfer, recruitment or recruitment
advertising, layoff, termination, rates of payor other forms of compensation, and selection for training,
including apprenticeship. The Consultant agrees to post in conspicuous places, available to employees
C0506-073 - Professional Services Agreement with The Mercer Group, Inc.
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City of Sunny Isles Beach
18070 Collins Avenue. Sunny Isles Beach, Florida 33160
(305) 947-0606 phone (305) 949-3113 Fax
and applicants for employment, notices to be provided by the City setting fOlth the provisions of this
non-discrimination clause.
The Consultant agrees to comply with any Federal regulations issued pursuant to compliance with
Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 708), which prohibits discrimination against
the handicapped in any Federally assisted program.
23. CONFLICT OF INTEREST. The Consultant agrees to adhere to and be govemed by the
Miami-Dade County Conflict of Interest Ordinance Section 2-11.1, as amended; and by Sunny Isles
Beach Ordinance No. 99-82, which are incOlporated by reference herein as if fully set forth herein, in
connection with the Agreement conditions hereunder.
Consultant covenants that it presently has no interest and shall not acquire any interest, direct or
indirectly that should conflict in any manner or degree with the performance of the services.
24. CONFLICTING PROVISIONS. The telIDS and conditions in this agreement supersede any
other conflicting provisions that are contained in any other document.
25. MISCELLANEOUS.
a. The rights granted to Consultant hereunder are nonexclusive, and the City reserves the right to
enter into agreements with other persons or firms to perform services including those provided
hereunder.
b. Consultant and its employees shall promptly observe and comply with applicable provisions of
all published federal, state and local laws, tules and regulations which govem or apply to the services
rendered by Consultant or hereunder, or to the wages paid by Consultant to its employees.
c. Consultant shall obtain and keep in force during the term of this Agreement all necessary
licenses, registrations, celtificates, pelIDits and other authorizations as are required by law in order for
Consultant to render the service(s) required hereunder.
d. Consultant shall not use the name or official seal of the City in any promotional material without
the prior written consent of the City.
e. Except as expressly provided for in this Agreement, Consultant is not authorized to act as the
City's Agent hereunder and shall have no authority, expressed or implied, to act for or bind the City
hereunder, either in Consultant's relations with sub-Contractors, or in any other manner whatsoever.
26. ENTIRE AGREEMENT. This Agreement and Attachment "A," which is expressly
incorporated herein by reference, shall constitute the entire agreement between the patties with respect
to the subject matter hereof, and it shall supersede all previous and contemporaneous oral and written
negotiations, commitments, agreements and understanding relating hereto. This Agreement may be
executed in multiple identical countelpalts, each of which shall be deemed an original for all pUlposes.
COS06-073 - Professional Services Agreement with The Mcrcer Group, Inc.
8
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City of Sunny Isles Beach
18070 Collins Avenue, Sunny Isles Beach, Florida 33160
(305) 947-0606 phone (305) 949-3113 Fax
27. AMENDMENT. Any modification of this Agreement shall be effective only if in writing and
signed by the parties to this Agreement. No waiver of any provision of this Agreement shall be valid or
enforceable unless such waiver is in writing and signed by the party granting such waiver.
IN WITNESS WHEREOF, the pmties hereto have executed this Agreement in triplicate on the
day and year first written above.
THE MERCER GROUP, INC.
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ATTEST:
CITY OF SUNNY ISLES BEACH
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, ',Jane A' Hines, CMC, City Clerk
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C0506-073 - Professional Selvices Agreement with The Mercer Group, Inc.
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Artachment "A"
The Mercer GrOll, Inc.
Consul/ants /0 Management
3443 Highway 39 North
Louishurg, North Carolina 27549
(919) 496-2080
FAX (919) 496-7995
August 24, 2006
Mr. A. John Szerlag, City Manager
Government Center
18070 Collins Avenue
Sunny Isle Beach, FL 33160
Dear Mr. Szerlag:
It was a pleasure rneeting with you last month; we greatly appreciated the opportunity to review
with you and your staff the scope of work performed in the 2004 Compensation/Market Study
and Reclassification Process Review. As we discussed, the 2004 Compensation/Market Study
and Reclassification Process Review was a market survey to evaluate the City's overall pay plan
in relation to the rnarket and to recommend a process for reclassifying positions and evaluating
new positions. During the 2004 study we strongly recommended that the City conduct a
comprehensive classification study to ensure internal equity and develop a classification system
that is more appropriate for and typically found in local governments. We are pleased that the
City is now considering pursuing that recommendation. We believe the City will benefit greatly
by having a full and flexible Compensation and Classification System that can grow and adapt
with the organization.
The following is a proposal to:
I) Conduct a cornprehensive compensation/classification study for all full-time employees
except for the positions under police pay plan.
2) Develop and implement a performance evaluation systern for all full-time employees.
Our experience has shown that good classification and compensation studies are a combination
of sound technical processes and an understanding of human nature. Our approach is sensitive to
this in several ways. For instance, our position evaluation system for classification purposes uses
a factor evaluation systern that is industry standard and is sufficiently straightforward
(transparent) so that how the process works and how factor scores and total scores for a position
are derived is easily explainable and easily understood by ernployees, supervisors, and City
Council. We provide orientation sessions for all employees so that they understand the
methodology of the study and how their positions will be evaluated, thus reducing anxiety. We
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will rneet with everv employee to discuss his/her questionnaire answers and get clarification. We
provide an appeals process for any ernployee who feels that his/her position has been classified
incorrectly. We work closely with you and your management team throughout the process to
assure that you are informed and that there are no "surprises." We rely on you and your
rnanagernent team to help assure that recommendations from the study do not create a disconnect
with the political realities of the City.
Typically, we are not the lowest bidder for a classification and cornpensation study (neither are
we typically the highest bidder). However, we firmly believe that the thoroughness of our
process and the fact that we tailor the process to the organization makes our process the "best
buy." Our satisfied clients can attest to that.
We welcome the opportunity to discuss our proposal in person or teleconference. This proposal
is valid for 120 days from the date of receipt by the City. We abide by all applicable rules of
federal, state, and local entities.
We thank you for this opportunity and look forward to working with the City on this project. If
you have any questions, please contact me at 919-496-2080.
Sincerely,
rJld4!!hllJm-
Phillip G. Robertson
Senior Vice-President
The Mercer Group, Inc.
S\\:>
CITY OF SUNNY ISLES BEACH,
FLORIDA
Proposal
For
A Comprehensive Compensation and Classification Study
And
Performance Evaluation System
August 24, 2006
THE MERCER GROUP, INC.
Corporate Headquarters:
Raleigh Office:
Mr. Phillip Robertson
3443 Highway 39 North
Louisburg, North Carolina 27549
919-496-2080
FAX 919-496-7995
MercerNC@aol.com
5579 B Chamblee-Dunwoody
Suite 511
Atlanta, GA 30338
770-551-0403
FAX 770-399-9749
SIB
I. TEAM ORGANIZATION
ABOUT THE MERCER GROUP, INC.
The Mercer Group, Inc. will be the sole firm providing all services as described in this proposal.
This proposal has been made without collusion with any other person or entity submitting a
proposal pursuant to the RFP.
The Mercer Group, Inc. is a rnanagement consulting firm incorporated in the State of Georgia
and operating nationwide. Founded by James L. Mercer, a long-term public management
consultant, The Mercer Group, Inc., provides managernent consulting services to state and local
governnIents, special districts, and private sector clients. The company's services include:
· Cornpensation and classification studies;
· Executive recruitrnent;
· Organization and operations analysis;
. Productivity improvement;
. Strategic planning;
· Managernent systerns;
· Organization development and training;
. Privatization;
. Policy studies;
· Budget evaluation services; and
· General managernent consulting.
Mr. Mercer started his own firm in 1981 and, in 1984, rnerged it with another consulting firm,
Wolfe & Associates, Inc. On June 1,1986, Mr. Mercer acquired the Human Resource and
Organizational Consulting Practice of Wolfe & Associates, Inc. This acquisition formed the
basis for Mercer, Slavin & Nevins, Inc. He sold his interest in Mercer, Slavin & Nevins, Inc.
early in 1990 and founded The Mercer Group, Inc.
Mr. Mercer is the Chief Executive Officer of our firm and can be contacted at our corporate
headquarters as follows:
James L. Mercer, President
The Mercer Group, Inc.
5579 B Chamblee-Dunwoody Road, Suite 511
Atlanta, Georgia 30338
Telephone: (770) 551-0403; FAX: (770) 399-9749
, Federal Tax ID No.: 58-1877068
Web site address: http://www.mercergroupinc.com
Compensation & CIRNslticatlon Study and I'crformanoo I<Jvalnatlon System
The Mercer Gronp, Inc. An~nst 24, 2006
p~ 1 City ofSnnny Islcs Beach, I"orlda
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In addition to the corporate headquarters The Mercer Group, Inc. has branch offices in:
· Dallas, Texas
· Greeley, Colorado
· Lansing, Michigan
· Phoenix, Arizona
· Raleigh, North Carolina
· Sacramento, California
· Santa Fe, New Mexico
. Washington, DC
· Winter Haven, Florida
Business Model
The Mercer Group, Inc. is a Consortium Model firm, with a core of key staff members
supplemented by associated independent consultants and specialty firms. The consortium
rnernbers work together regularly and have long personal and professional relationships. This
business model allows us to:
~ Staff each engagement with precisely the right mix of consulting professionals, who have the
specific rnanagerial, functional, and technical skills needed to fully satisfy the project
objectives.
~ Eliminate pressure to assign salaried staff who may be available, but lack the experience or
capabilities necessary to be effective and efficient in serving our clients.
~ Offer cornpetitive rates for very senior consultants due to our reduced administrative and
overhead costs.
LISTING OF WORKING OFFICE
This project will be conducted by the Raleigh, North Carolina branch. The Raleigh branch is
staffed by Senior Vice President Phillip Robertson, Vice-President Kay Culbertson Robertson,
and Randy Davis. The Raleigh office specializes in Cornpensation and Classification Studies.
The staff has over 25 years experience. The Raleigh branch can be contacted as follows:
Phillip G. Robertson
Senior Vice President
The Mercer Group, Inc.
3443 Highway 39 North
Louisburg, North Carolina 27549
Telephone: (919) 496-2080; FAX: (919) 496-7995
E-rnail address: MercerNC@aol.com
Compensation & ClllSsification Study and l'cmlrmltRCC )<}valuation System
Thc Mcrcer Group, luc. AlIjI;llst 24,2006
Page 2 City of Sunny Islcs Beach, )<'Iorida
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There are not any past, on-going or potential conflicts of interest which the consultants may have
as a result of performing work for this project. The Mercer Group, Inc. has not divulged,
discussed or cornpared our proposal with other proposers and has not colluded with any other
proposer or parties to a proposal whatsoever. Further, Phillip Robertson has full authority to sign
this proposal on behalf of The Mercer Group, Inc.
Project Team
The team we are proposing for the City of Sunny Isles Beach project includes our most
experienced consultants.
The Principal in Charge of the project will be James L. Mercer. Mr. Mercer is President of our
fIrm. He is a Certified Management Consultant and has extensive experience in all phases of
rnanagernent consulting including cornpensation, classification, and performance appraisal. Mr.
Mercer will be available if needed to assist in this project.
The Proiect Manager will be Phillip Robertson, Senior Vice President of our firm. He possesses
extensive knowledge of all phases of cornpensation and classification and all areas of local
government management. He will be responsible for assuring the quality of our work, the
adherence to expected schedules and the delivery of our work products.
The Vice-President supporting Mr. Robertson will be Kay Robertson. Mrs. Robertson has
extensive compensation and classification experience in both the public and private sectors.
Randy Davis is The Mercer Group's FLSA and FMLA expert.
Resumes for each of our team members are included in this section.
James L. Mercer. President
Mr. Mercer holds a Master of Business Administration degree from the University of Nevada,
Reno, and a Bachelor of Science degree in Industrial Management frorn the same institution. He
has also received a Certificate in Municipal Administration from the University of North
Carolina at Chapel Hill, and is a graduate of the Executive Developrnent Program at Cornell
University. Mr. Mercer has rnore than 26 years experience in rnanagernent consulting. He has
authored three books, co-authored three books, and has written more than 250 articles on various
phases of public management. His experience covers the following functional areas:
compensation and classification, organization analysis, managernent systems, productivity
improvement, seminars/training, public sector executive search, strategic planning, and general
consulting. Examples of Mr. Mercer's experience in each of these functional areas are listed
below:
Compensation and Classification
Compensation & CllIHsification Shtdyand Performanl-'C Bvaluation System
The Mercer (.roup, Ine. August 24, 2006
P.,., 3 City 01" Sunny Isles I1caeh, .'Jorilla
S\B
. Principal consultant on a project for the Town of Jackson, Wyoming to
conduct compensation and classification study, update job descriptions,
update personnel rules and regulations, and develop a performance-based
employee evaluation system.
· Overall direction of a cornpensation and classification studies for the Decatur
and Springfield, Illinois Housing Authorities.
· Overall direction of a compensation and classification study for the City of
Auburn, Maine.
. Consultant on a compensation and classification study for the City of
Petersburg, Virginia.
· Overall project direction for a very large compensation and classification
study of the Jefferson County, Alabama Personnel Board which includes all
jurisdictions in Jefferson County, Alabama including the City of Birmingham.
· Overall direction and consultant for a compensation and classification study
for the City of Morristown, Tennessee.
· Overall direction and consultant for compensation and classification study and
a performance-based employee evaluation system for the City of Berkeley,
Missouri.
· Overall direction for a compensation and classification study for the City of
Del Rio, Texas.
· Overall direction ofa pay-for-performance system development project for
the City of Atlanta.
. Overall direction of an executive compensation system for Dekalb County,
Georgia's three-campus, 20,000 student Community College.
· Reviewed executive compensation program for the City of Corpus Christi,
Texas.
· Reviewed the compensation and classification and benefits systems of
Conyers and Rockdale County, Georgia.
· Reviewed the compensation and classification systems, retirernent systerns,
and employee benefits programs for the Cities of Miarnisburg and West
Carrollton, Ohio, and for Miami Township, Ohio.
· Reviewed the cornpensation and classification systems, retirernent programs,
and employee benefits programs for the City of Atlanta, Fulton County, and
all of the jurisdictions in Fulton City, Georgia.
· Reviewed the compensation and classification systems, the retirement
systems, and employee benefits programs for Austin and Travis City, Texas.
· Overall Director of a cornpensation and classification system for Ouachita
Parish, Louisiana Library.
Compensation & CI....sification Study and I'crformancc I~valuation System
The Mcrcer GroUI), Inc. August 24, 2006
PIlIP' 4 City orSunny Islcs Ueach. .'Iorida
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Mr. Mercer personally worked with Dr. Rensis Likert, considered by rnany to be the "father of
participative management," on the design of data collection instrumentation (using Likert's
survey research instruments) to compare 27 test and 27 control medium-sized local governments
across the country on the issues of receptivity to new technology and innovation. This
experiment formed the basis for the current national local government database in this area.
Prior to forming The Mercer Group, Mr. Mercer was President of Mercer, Slavin, & Nevins, Inc.
and a Regional Vice President of Wolfe & Associates, Inc., with which he previously merged his
own local government consulting firm, Jarnes Mercer & Associates, Inc. He has also been
Director of Government Consulting Services in the southeastern and southwestern regions of the
United States for Coopers & Lybrand. He has been a National Program Director with Public
Technology, Inc., and served as Assistant City Manager of Raleigh, North Carolina. This was
preceded by ten years of private sector and university faculty and staff experience. Mr. Mercer is
a frequent featured speaker, organizer and panelist at local government conferences,
professional, and civic clubs, etc., on issues of productivity improvement, management, office
automation, entrepreneurship, etc.
Mr. Mercer has received many honors, including the prestigious George C. Franklin Memorial
Award from the North Carolina League of Municipalities for Excellence in Public
Adrninistration and election to Beta Gamma Sigma, the national honor society in business and
administration. He has also served on several private and public Boards, including the
University of Nevada Foundation, the School of Business Advisory Board at California
Polytechnic State University in San Luis Obispo, and the Public Administration Program at the
University of South Carolina. Mr. Mercer has been quoted in The New York Times, Forbes,
Public Management, American City and County, and many other national and local publications.
His professional affiliations include:
· International City/County Management Association;
· American Society for Public Administration;
· Institute ofIndustrial Engineers (past Chapter President);
· The Technology Transfer Society (Board of Directors - 5 terms); and
· International Association of Quality Circles.
Compensation & Classification Study aud I'crformancc ",valuation System
Thc Mcrcer (.roup, Inc. August 24,2006
PBge 5 City o'-Sunny blcs lleach, 1~lorida
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PhilIiD Robertson. Senior Vice-President
3443 Hwy. 39 North
Louisburg, North Carolina 27549
Office telephone: 919-496-2080 Cellular telephone: 919-349-7239
Fax: 919-496-7995
Mr. Robertson is a Senior Vice - President with the Mercer Group specializing in compensation and
classification studies, organizational analysis, and performance evaluation systems. Mr. Robertson
has been with The Mercer Group, Inc. since 1998.
Mr. Robertson has 30 years experience in the public sector.
· Classification and compensation studies for Hernando County, Florida; The Housing
Authority of Covington, Kentucky; the City of East Point, Georgia; Martin County, Florida;
Ouachita Parish, Louisiana, Public Library; the City of Monmouth, Oregon; the City of
Monroe, Georgia; the City of Peachtree City, Georgia; the Development Authority of
Peachtree City, Georgia; Pitt County, North Carolina; Okaloosa County, Florida; Okaloosa
County Detention Center; Martin County Sheriff's Office; Henderson, Nevada; the Town of
Berlin, Connecticut; Choctawhatchee Electric Cooperative in Defuniak Springs, Florida; the
City of Duncan, Oklahoma; Calcasieu Parish Public Library System; the City of Colonial
Heights, Virginia; Nye County, Nevada; Decatur Illinois Housing Authority; Rochester
Hills, MI; Garden City, Georgia; Glastonbury, Connecticut; Kitty Hawk, North Carolina,
Town of Holly Springs, North Carolina; Sun 'N Lake of Sebring Improvernent District;
Okaloosa Gas District; City of Sunny Isles Beach, Florida; City of Frankfort, Kentucky;
Peachtree City Tourism Association; the City of Sioux City, Iowa; the City of Glen Heights,
Texas; the city of Daytona Beach, Florida; the City of Jacksonville, Florida; the City of
Osawatomie, Kansas; Gordon College in Bamesville, Georgia; Assisted Housing Risk
Management Association, Iowa League of Cities; Peachtree City Water and Sewerage
Authority; Minturn, Colorado; Lorna Linda, California; and the City of La Porte, Texas.
· Former Management Information Services Director for the North Carolina Division of
Employment and Training.
· Extensive experience in organizational analysis at the local and state govemment levels
· Former Personnel Manager for a Division of the North Carolina State Govemment.
· Former Assistant City Manager for Clayton, North Carolina.
· Extensive experience in Grant Management at the Federal, State, and Local levels.
· Extensive experience and expertise with information systems management at the Federal,
State, and Local levels.
Mr. Robertson has a MA in Public Administration from Appalachian State University in Boone,
North Carolina and BA in History from Wake Forest University in Winston-Salem, North Carolina.
He has also done doctoral work at North Carolina State University in Raleigh, North Carolina.
Compensation & Classification Htudyand I'crformunce I<Jvnlnution Hyswm
The Mercer (~roup, Inc. AUI/:ust 24, 2006
PlIp 6 City of Hunny Isles Ucneh, l<'1oridu SIB
Kav Robertson. Vice-President - Raleieh Office
Mrs. Robertson is a Vice President with the Mercer Group specializing in compensation and
classification studies, organizational analysis, and performance evaluation systems. Mrs. Robertson
has been with The Mercer Group, Inc. since 1997.
She worked for seven years in the banking industry filling every position in branch banking,
including branch manager. Her employers were South Trust Bank in Atlanta, Georgia, and
NationsBank in Fayetteville, North Carolina.
Her consulting project experience includes;
· Classification and compensation studies for Hernando County, Florida; The Housing
Authority of Covington, Kentucky; the City of East Point, Georgia; Martin County, Florida;
Ouachita Parish, Louisiana, Public Library; the City of Monmouth, Oregon; the City of
Monroe, Georgia; the City of Peachtree City, Georgia; the Development Authority of
Peachtree City, Georgia; Pitt County, North Carolina; Okaloosa County, Florida; Okaloosa
County Detention Center; Martin County Sheriffs Office; Henderson, Nevada; the Town of
Berlin, Connecticut; Choctawhatchee Electric Cooperative in Defuniak Springs, Florida; the
City of Duncan, Oklahoma; Calcasieu Parish Public Library Systern; the City of Colonial
Heights, Virginia; Nye County, Nevada; Decatur Illinois Housing Authority; Rochester
Hills, MI; Garden City, Georgia; Glastonbury, Connecticut; Kitty Hawk, North Carolina,
Town of Holly Springs, North Carolina; Sun 'N Lake of Sebring Improvement District;
Okaloosa Gas District; City of Sunny Isles Beach, Florida; City of Frankfort, Kentucky;
Peachtree City Tourisrn Association; the City of Sioux City, Iowa; the City of Glen Heights,
Texas; the city of Daytona Beach, Florida; the City of Jacksonville, Florida; the City of
Osawatomie, Kansas; Gordon College in Bamesville, Georgia; Assisted Housing Risk
Management Association, Iowa League of Cities; Peachtree City Water and Sewerage
Authority; Minturn, Colorado; Lorna Linda, California; and the City of La Porte, Texas.
· Managernent assessments, human resources hiring systerns, supervisory training, and team
building seminars for private business and state govemments.
· Customer service training for state govemment employees involved in welfare reform
projects.
· Career counseling assessments and training for welfare recipients.
Mrs. Robertson has a BA in Marketing with a rninor in Finance from Texas A&M University.
Compensation & Classiliwtion Study and Pcrformam,., I<Jvaluation System
Thc Mcrcer (':roup, luc. AU~lst 24, 2006
Page 7 City of Sunny Islcs Beach, ."orida
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RANDY DAVIS-Atlanta. Georl!ia
Mr. Davis retired in 2000 from the U.S. Department of Labor; Wage and Hour Division and
currently works as a consultant and provides support to The Mercer Group, Inc. He worked the
last eleven years as Branch Chief for Fair Labor Standards in the Atlanta Region which included
eight Southeastern states. He also worked sixteen years as an Investigator, eleven with the Wage
and Hour Division and five with Internal Revenue Service. As Branch Chief his responsibilities
included speaking to employer groups, training investigators and providing interpretations of the
various laws, regulations and enforcement policies to the investigators and supervisors. His areas
of expertise include the Fair Labor Standards Act (rninimum wage, overtime, exemptions, child
labor), the Family and Medical Leave Act, the Employee Polygraph Protection Act, the wage
garnishment provisions of the C.C.P.A., the Migrant and Seasonal Agricultural Worker's
Protection Act and various immigration laws including those related to H-IB, H-2A and H-2B
ternpofary foreign workers.
Mr. Davis has a Bachelors of Business Administration from the University of Louisville.
Compensation & Classification Study and J'ertormance I<~valllation System
The Mercer Group, Jne. Au~ust 24. 2006
PBge 8 Cil)' of Sunny Isles Ileaeh, J~lorida
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II. EXPERIENCE
REFERENCES
The Mercer Group, Inc. has been conducting compensation and classification studies since its
inception in 1990. Phillip Robertson has been the manager of over 90% of all Mercer Group
Cornpensation and Classification Studies for the past 7 years. The references below are for
classification and compensation studies sirnilar to the City of Sunny Isles Beach project. All of
the projects listed below were conducted by The Mercer Group, Inc. including staff proposed for
this project and managed by a member of this team.
Ms. Barbara Dupre'
Director of Human Resources
Hernando County, Florida
20 North Main Street, Room 364
Brooksville, FL 34601
352-754-4013
FAX: 352-754-4025
Cornpensation and Classification Study for Board of County Commissioners, Supervisor of
Elections, Property Appraiser, Tax Collector and Clerk of Court.
The original project was completed in 1998 and fully updated in 2002.
We continue to provide services for Hernando County.
Mrs. Kay Godwin
Hurnan Resources Manager
Okaloosa County Human Resources Department
601B North Pearl Street
Crestview, Florida 32536
850-689-5870
FAX: 850-689-5889
Cornpensation and Classification Study for Board of County Commissioners and Supervisor of
Elections.
The original project was completed in 2000. The Mercer Group maintained the system for the
county through 2004.
Mrs. Taryn Kryzda, Adrninistrative Services Director
Martin County Board of County Commissioners
2401 SE Monterey Road
Stuart, Florida 34996
772-288-5518
FAX: 772-223-4812
Cornpensation and Classification Study for Board of County Commissioners and Sheriffs
Department.
The original projects were completed in 2002.
We continue to provide update services.
Compenslltion & ClllSsifiootion Study Ilnd I'crformllncc .Jvalulltlon Systcm
'I'hc Mcrcer Group, Inc. Au~ust 24, 2006
Page 9 City of Sunny Isles Hooch, 1~loridll
<;\\)
Ms. Leigh Grantham
Vice President, Marketing and Human Resources
Choctawhatchee Electric Cooperative
Defuniak Springs, FL
850-892-2111
Classification and Compensation Study
The original project was completed in 2000.
A cornprehensive update was conducted in 2004.
We continue to provide update services.
Ms. Erika Phillips, Human Resources Director
Town of Holly Springs
128 South Main Street
Holly Springs, NC 27540
919-557-3911
Cornpensation and Classification Study cornpleted 2004.
We continue to provide update services
Mr. Jose Lozano, CEO
Okaloosa Gas District
Valparaiso, Florida
850-729-4840
Compensation and Classification Study
Staffing Analysis
The original Study was completed in 2003.
We continue to provide update services.
Mrs. Jane Miller
Administrative Services Director
The City of Peachtree City
Peachtree City, Georgia
770-487-7657
Classification and Compensation Study completed 200 I.
Additional references and experience can be provided upon request.
ComlJCnsation & C1llSsification Studyaud IJerformance Evaluation System
')'he Mercer (~roup, Inc. August 24,2006
PlIge 10 City llfSunny Isles llcaeh, l<'lorida S \ B
III. HISTORY AND BACKGROUND
A. WORK COMPLETED BY THE MERCER GROUP IN THE
COMPENSATIONIMARKET STUDY
On April 9, 2004 The Mercer Group, Inc. submitted a proposal (Appendix I) to the City of Sunny
Isles Beach to conduct a Compensation/Market Study and Reclassification Process Review. The
proposal was accepted and the City entered into an agreement with The Mercer Group, Inc. in
late May of 2004. Kay and Phillip Robertson began on June 2, 2004 with orientation rneetings
with Tom Acquaro, Human Resources Director, and Chris Russo, City Manager. Mr. Russo
articulated a desire to have a pay plan that was extremely flexible for his needs and tied to
market. The Consultants stressed the need for internal equity and a quantitative classification
systern. Mr. Russo was not interested in such a system and instructed the consultants to conduct
a rnarket survey and make recommendations regarding pay ranges based solely on the market.
The consultants met with Department Heads June 2nd through 4th to discuss organizational
structure and review existing job descriptions. A rnarket survey was written for benchmark
positions and distributed to a group of comparable organizations. The market survey was
administered from June 25, 2004 through mid August.
The rnarket information was analyzed and pay grade recommendations were rnade for all
positions. The Factor Evaluation Systern (FES) was applied to all positions using information
obtained frorn Department Head discussions and job descriptions. Per directive from the City
Manager the FES was used solely to assist in slotting positions for which market information
was not obtained or was insufficient. Preliminary results were presented to the City Manager
and Human Resources Director during an on-site visit by the Consultants on September 14th and
15th, 2004. The City Manager wanted time to review the information and the consultants were
instructed to make some detailed recommendation and obtain additional market information for
Sworn Police positions. In early November detailed recommendations for irnplementation were
presented to the Manager and HR Director. The Manager again requested time to review the
information.
In early February the Manager was ready to receive a preliminary draft report. After rnany
discussions with the Human Resources Director regarding our concern with the absence of a
quantitative classification system that would typically be found in local governments, the HR
Director requested that we put it in writing. This was done via a memo dated April 12, 2005
(Appendix II). The Manager did not wish to proceed with a classification study and final
recommendations were presented June 2005. The Final Report was complete with pay ranges
for each position, implementation options, and policy reCommendations for plan rnaintenance
with special features such as Market Impact and Fluid Positions. Further recommendations were
rnade regarding a policy for reclassifications and new positions.
CompensRtion & CIRSsifit.'lltion Study Rnd Pcrformant.'C J<Jvaluation System
The Mercer Group, Inc. Aup;ust 24, 2006
P.11 City of Sunny Isles lIeach, J<'lorida SIB
IV. PROJECT SCOPE FOR THE COMPENSATION AND
CLASSIFICATION STUDY
A. Scope
The City of Sunny Isle Beach is interested in have a Comprehensive Compensation and
Classification Study. The Scope would included:
. Updating previously conducted market research
· Develop a Cornprehensive Classification system to ensure internal equity
· Develop a pay system for all full-time position with the exception of positions
in the Sworn Officer Pay Plan
Based on the project scope the deliverables will include but not be limited to:
1. Recommend base salary ranges that are equitable with comparable internal jobs.
2. Interview all positions for employees having submitted job description questionnaires to
verify accuracy and completeness of the questionnaire.
3. Work closely with the employees, and management.
4. Recommend a classification structure that allows for compliance with the Fair Labor
Standards Act (FLSA) revisions.
5. Provide updated job descriptions.
6. Recommend an effective, highly flexible and easily administered and maintained system.
7. Provide a plan and a schedule for implementation.
8. Make presentations to the City Manager, management, officials, and employees.
The specific results of Phase I of the classification and compensation study are displayed in
Exhibit!.
Compenslltion & CllIssiftcation Study Ilnd PerformllmlC .'Vlllulltion System
'1'he Mercer (.roup, Inc. August 24, 2006
Page 12 City of Sunny Isles Ucaeh, .'Ioridll
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EXHIBIT I
RESULTS OF THE CLASSIFICATION STUDY:
· Classification standards for all classes and levels
proposed;
· FLSA designation for exempt or non-exempt status for each
position;
. Allocation of each position to an appropriate
classification to ensure internal equity; and
. Job descriptions for all positions.
· Development of written guidelines of the total system.
RESULTS OF THE COMPENSATION STUDY:
· Administer the market survey instrument;
· Development of appropriate salary guidelines;
· Assignment of appropriate salary range to each
classification; and
· Development of written guidelines of the total system.
Compensation & Classification Study and Performance .::valnation System
The Mercer (ilroup, Inc. August 24, 2006
PIIge 13 City of Sunny Isles lleaeh, .'Iorida
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V. OUR APPROACH TO THE STUDY
The Mercer Group, Inc. believes that the Cornpensation and Classification Study must have
extensive client participation. Our experience has shown that successful assignrnents are
characterized by;
· A mutual understanding between the client and the consultant staff of the objectives, study
process, timing, and end products of the study;
· A thorough understanding of the current situation by the consultants before proceeding with
detailed analysis;
· Providing opportunities for participation and input by staff; and
· A thorough review of draft reports with management.
Our work plan includes provision for each of the items listed above. The specific participation
of management and staffis described as follows:
City Manager- The City Manager and/or designee is (are) the principal client(s) for the project.
Principal client will receive a thorough briefing and description of the study process and
methodology. At the end of the study, the principal client will receive a briefing on all findings
and recommendations as well as briefings throughout the process as appropriate. It is important
that the principal client be involved in the key policy issues to ensure the overall effectiveness of
the resulting classification and compensation systems to meet the needs of the organization.
Management -Management will be involved in the study by participating in a briefing session
with the consultants, cornpleting questionnaires, meeting individually with the consultants to
review the scope of their operations, and identifying any specific concerns they may have with
respect to their current classification, compensation or performance evaluation systerns. Key
managernent will likewise be involved in reviewing a draft of all job analysis recommendations
including position placement recommendations and class specifications.
Employees - All employees whose positions are included in the study must feel that they have a
role in the process and that their input is both sought and welcomed. That role and input will be
introduced and explained by a thorough and accurate initial presentation about the project.
Ernployees then will be asked to complete position questionnaires and will be given
opportunities to be involved further in the process through interviews, job audits (when
necessary), and appeal procedures.
Human Resources Staff-The Human Resources Staff will be asked to assist in the distribution
and collection of the position questionnaires and assist the consultants in setting up meetings and
interviews.
Compensation & ClllHsifieation Study and I'crformance J<Jvaluation System
Thc Mcrcer (;roup, Inc. A1l!.'Ilst 24,2006
Pege 14 City of'Sunny Islcs !leach, J<'lorida
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The Mercer Group, Inc. approach to Classification and Compensation stresses participation at all
levels. The result will be a new system that is truly developed by those who must live with it.
Work Program and Schedule
In order to meet the client's specific objectives for this project, we have developed a work plan
consisting offour (4) phases and six (6) steps, as follows:
Phase I
STEP I. Orientation
Because of the significance ofa classification and compensation study, a clear understanding
of and agreement to the work plan is critical. We will begin the project by meeting with all
appropriate City officials including but not lirnited to the City Manager and department heads
to clarify the following issues:
· Specific issues regarding the current classification and pay structure( s);
· Specific issues regarding individual Departments and Divisions (group meetings and
individual meetings with each department head);
· Understanding of the objectives for the systems;
· Review of The Mercer Group, Inc. classification and analysis methodology, including
specific forms such as the position questionnaire;
· Policies regarding review and employee appeal of recommendations;
· Begin development of a list of organizations for the "rnarket analysis," including public and
private ernployers (Management will participate in the process of development of the
cornparable organization list); and
· Implementation strategy for results of the study.
At the orientation, we will also obtain information on current practices. We will then provide the
initial communication to employees through group meetings, written explanations, or both,
depending on the needs of the organization. The Mercer Group, Inc. prefers to rneet with
employee groups to review the process and how the ernployees are going to be asked to
participate. Classification and Compensation Studies can produce anxiety with ernployees. We
have found that open discussions with employees at the beginning of the study helps employees
understand what to expect from us and what we are going to ask of them. It also allows
employees the opportunity to voice any concerns or questions and meet the consultants. During
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orientation we generally provide our contact information to employees and encourage them to
contact us at any point during the process if they have questions or concerns.
Phase II
STEP 2. Job Analvsis and Classification Process
The job analysis classification portion of the study will begin with the distribution of Position
Questionnaires to all ernployees. The Position Questionnaire is typically distributed and
reviewed during the Ernployee Group Orientation rneetings. The Position Questionnaire is
important to Classification and Compensation Study process because the information obtained
becornes the basis for:
The classification system;
The developrnent of "benchmark" positions; and
The job descriptions for all positions.
Because the questionnaire is important, we will review and edit our questionnaire with
management to ensure its appropriateness.
Upon receipt of the questionnaires, we will interview all employees to confirm and clarify the
information.
Employees who have the same job title and agree that they are performing the sarne job duties
can interview as group.
Employees who have the same job title and do NOT agree that they are performing the same job
duties will be interviewed separately. It may be that at the end of the study we recommend that
these positions remain in the same classification or the duties and responsibilities may be such
that a separate classification is recommended. Ifwe do not allow employees to choose if they
want to interview together or separately it greatly undermines the results of the study and the
employee "buy in".
We will begin interviews in each department with the lowest classifications and work up to the
Department Heads. This approach allows us to obtain a good understanding of the organization
and to discuss issues and problems at each succeeding level.
Interviews generally take 20 minutes for individuals and 40 minutes for groups. During the
interview the consultant will review the submitted questionnaire with the employee and as
clarification questions. This is also an opportunity to employees who communicate rnore
effectively in an oral format the opportunity to discuss their position with the consultant.
Upon completion of the position questionnaire and interview process, we will analyze
classifications by the duties and responsibilities.
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As a result of the questionnaire and interview process, we normally obtain information
regarding organizational and personnel issues outside of the scope of this project. We will
provide an informal report to the principal client covering those issues which appear to be
significant, if desired.
To develop the proper classifications and provide internal equity, we will use The Mercer Group
Factor Evaluation System (FES). Such systerns are used to provide numerical rankings for
classifications and positions. A detailed description of our job rneasurernent methodology is
included as Exhibit II.
During the classification process, we will address the issues of parity among departrnents,
appropriate titles, consolidation of classifications, creation of new classifications and logical
career ladders.
After the cornpletion ofthe interviews and the application of the FES, the consultants will rneet
with each Department Head to review the preliminary factoring for the position is herlhis
department. This is a time that the consultants will be able to obtain clarifications on issues with
any positions that were not clear in the interview and questionnaire. These meetings help
familiarize the Department Heads with how the classification system works. The prelirninary
factoring will also be reviewed with the principal client(s) frorn an organizational prospective.
After the recommendations have been approved, copies of the recommended class specifications,
and title changes should be provided to incumbents for review. Should an employee feel that
hislher recommended classification is inaccurate, an appeal may be made to the Appeals
Committee. The make-up of the Appeals Committee will be established at project orientation.
We will recommend a methodology to make the process fair and non-threatening to the
individual employees.
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EXHIBIT II
THE MERCER GROUP, INC.
FACTOR EV ALUA TION SYSTEM OVERVIEW
Each functional position will be analyzed and assigned a level for all 10 factors outlined below.
In cases where employees hold the same position title but are of the opinion that their
duties are materially different, separate interviews and factoring will be done.
FACTOR 1. KNOWLEDGE REQUIRED BY THE POSITION
Factor I measures the nature and extent of information or facts which the worker must understand to do acceptable
work (e.g. steps, procedures, practices, rules, policies, theories principle, and concepts) and the nature and extent of
the skills needed to apply that knowledge. To be used as a basis for selecting a level under this factor, a knowledge
must be required and applied.
FACTOR 2. SUPERVISORY CONTROLS
"Supervisory controls" covers the nature and extent of direct or indirect controls exercised by the supervisor, the
employee's responsibility, and the review of completed work.
Controls are exercised by the supervisor in the way the assignments are made, instructions are given to the
employee, priorities and deadlines are set, and objectives and boundaries are defined.
Responsibility of the employee depends upon the extent to which the employee is expected to develop the sequence
and timing of various aspects of the work, to modify or recommend modification of instructions, and to participate
in establishing priorities and defining objectives.
The degree of review of completed work depends upon the nature and extent of the review (close and detailed
review of each phase of the assignment, detailed review of the finished assignment, spot-check of finished work for
accuracy, or review only for adherence to policy).
FACTOR 3. SUPERVISION EXERCISED
Factor 3 measures the knowledge that may be required to supervise or manage smali or specialized organizational
units, mid-level divisions, and major operations within the total organization or the entire organization.
FACTOR 4. GUIDELINES
This factor covers the nature of guideline and the judgment needed to apply them. Guides may include manuals,
established policies and procedures, engineering handbooks or the organization's personnel manual. The guidelines
may be related to the specific occupation rather than organizational. For instance, a CPA may work under specific
guidelines imposed by the profession rather than the organization.
Individual jobs in different occupations vary in the specificity, application and availability of guidelines for
performance of assignments. Consequently, the constraints and judgmental demand placed upon employees also
vary. For example, the existence of specific instructions, procedures and policies may limit the opportunity of the
employee to make or recommend decisions or actions. In the absence of procedures or under broadly stated
objectives, employees in some occupations may use considerable judgment in researching literature and developing
new methods.
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FACTOR S. COMPLEXITY
This factor covers the nature, number, variely, and intricacy of tasks, steps, processes or methods in the work
performed; the difficulty in identifying what needs 0 be done; and the difficulty and originality involved in
performing the work.
FACTOR 6. SCOPE AND EFFECT
Scope and effect covers the relationship between the nature of the work, i.e. the purpose, breadth and the depth of
the assignments and the effect of the work products or services both within and outside the organization.
Effect measures such things as whether the work output facilitates the work of others, provides timely services of a
personal nature, or impacts on the adequacy of decisions.
FACTOR 7. PERSONAL CONTACTS
This factor includes face-to-face contacts and telephone and radio dialogue with persons not in the supervisory
chain. Levels described under this factor are based on what is required to make the initial contact, the difficulty of
the communicating with those contacted, and the setting in which the contact takes place.
Above the lowest level, points should be credited under this factor only for contacts which are essential for
successful performance of the work and which have a demonstrable impact on the difficulty and responsibility of the
work perfonned.
The relationship of Factors 7 and 8 presumes that the same contacts will be evaluated for both factors. Therefore,
use the personal contact which serves as the basis for the level selected for Factor 8 as the basis for selecting a level
for Factor 7.
FACTOR 8. PURPOSE OF CONTACTS
Purpose of personal contact range from factual exchanges of information to situations involving significant or
controversial issues and differing view points, goals or objectives. The personal contacts which as the basis for the
level selected for this factor must be the same as the contact which are the basis for the level selected in Factor 7,
FACTOR 9. PHYSICAL DEMANDS
The "Physical Demands" factor includes physical characteristics and abilities (e.g. agility and dexterity
requirements) and the physical exertion involved in the work (e.g. stooping, bending, climbing, walking, or
running). To some extent the frequency or intensity of physical exertion must be considered, e.g. is the exertion
continuous or on an infrequent basis.
FACTOR 10 WORK ENVIRONMENT
The "Work Environment" factor considers the risks and discomfort in the employee's physical surroundings or the
nature of the work assigned and the safety regulations required. Although the use of safety precautions can
practically eliminate a certain danger or discomfort, such situation typically place additional demands upon the
employee in carrying out safety regulations or wearing protective equipment.
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Phase III
STEP 3. Market Analvsis
The survey instrument developed during the 2004 study will be administered to ensure the City
pay is staying competitive in the market. Using the market research data, a set of specific
recommendations regarding the level of Compensation for all classes will be developed. In this
part of the study, we will:
Provide pay levels for all classes;
Provide recommendations on policy decisions such as range widths, new-hire level
guidelines, and mechanisms for slotting; and
Provide alternative implernentation strategies for the system, including the cost of each
alternative.
Phase IV
STEP 4. FLSA Analvsis
Once classifications (jobs) are identified for the new system each position will be reviewed and
analyzed for the appropriate FLSA designation of Exempt or Non-Exempt. The Mercer Group
FLSA Expert is Randy Davis. Mr. Davis retired in 2000 from the U.S. Department of Labor;
Wage and Hour Division and has been working with The Mercer Group, as a consultant and
provides support expertise in the area of FLSA. He worked the last eleven years as Branch Chief
for Fair Labor Standards in the Atlanta Region which included eight Southeastern states. Mr.
Davis has been using his contacts at DOL to ensure a thorough understanding of new changes to
FLSA not only from a legislative standpoint but from the people that will be enforcing these
changes. Mr. Davis has the resources to research any questions or concerns there may be
regarding FLSA designations.
STEP 5: Training
Training will be provided for all appropriate personnel in the adrninistration of the new
classification and compensation systems, including:
· The Factor Evaluation System for classification of new positions and
reclassifications as they occur;
· The market survey instrument for continued update of the salary systern; and
· Implementation procedures.
STEP 6. Reporting and Documentation
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Throughout the project The Mercer Group, Inc. will provide the organization with written or oral
updates. Specifically, we will provide:
Status reports at each step of the process;
Special reports when policy decisions need to be rnade;
Classification specification;
Preliminary final report for review by appropriate officials; and;
Final report.
We will also make a presentation of findings and recommendations to management, staff and
employees, as necessary.
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VI. COMPENSATION AND CLASSIFICATION PROJECT SCHEDULE
We suggest a 90-day project schedule. This schedule allows for sufficient time for employee
interviews and detailed review of findings prior to final report. If needed we can discuss specific
changes that can be rnade to reduce this time schedule at orientation. Orientation will begin
within two weeks of award of contract.
Project Steps
STEP 1. Orientation
I 1
1+++
I
2
STEP 2. Job Analysis/
Job Audit
Classification Process
STEP 3. Market Analysis
STEP 4. System Development,
FLSA
Training
Final Report
I
++++
I
STEP 6. Draft Report
++
Follow-up telephone assistance will be provided for one year following completion ofthe
project.
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VII. PERFORMANCE EV ALUA TION SYSTEM OVERVIEW
The following is an overview of our performance evaluation system. The information is offered
as a sample only; most provisions in the document (performance level designations, number of
objectives and factors, tirnelines, appeal rights, etc.) are tailored to each organization through a
one day policy development retreat with you and whomever else in rnanagement that custornarily
makes or directly consults on Hurnan Resources policy decisions.
Once this framework is established we will train your supervisors and orient your ernployees to
the new systern. The supervisory training is a two stage process with the second stage at about
halfway through the first implernentation cycle; this allows us to deal with real irnplementation
issues and offer additional training on how to deal with low and high performers.
STEPS FOR PERFORMANCE EVALUATION SYSTEM STUDY AND
TIMETABLE
· Conduct a policy framework discussion session; identifY specific
policies for the system.- To be conducted upon completion of the
Compensation and Classification Study
· Develop draft system handbook for review-Within two weeks of
policy session
· Conduct supervisory training and employee orientation-Within two
weeks of finalization of handbook
· Conduct midterm training with supervisors-6 months after
implementation of the system.
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EXAMPLE
PERFORMANCE EVALUATION SYSTEM OVERVIEW
(Specific provisions are tailored to each or!!anization)
CREATING A PERFORMANCE PLAN
· Performance plans will be developed for all classified positions.
· The Plans will cover a twelve month period which begins with each employee's hire date.
Setting Performance Objectives
Linking Individual Ernployee Objectives To Department Objectives
There are basically two different types of Performance Objectives to be developed:
I. Task Objectives (Based on Job Description)
2. Developrnental Objectives
Setting Performance Factors
In addition to identifying at least three (3) Performance Objectives, each employee will be
evaluated on six Performance Factors. Five of the Performance Factors are pre-selected and
rnandatory. The Supervisor, with Department Head and Hurnan Resources Approval, will select
one additional Performance Factor from the remaining five.
The following Performance Factors are required for every employee's Performance Plan:
1. Dependability
2. Quality of Work
3. Custorner Service
4. Teamwork
5. Job Knowledge
Supervisors rnust choose one additional factor from the following list for each of their
ernployees:
6. Quantity of Work
7. Judgment
8. Safety
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9. Communication
10. Leadership/Followship
The performance objectives and performance factors will be rated using the following
criteria:
5 Outstanding
Employee performs consistently at an outstanding level far above the expected level.
Performance is definitely superior and well above the expected level of performance.
4 Exceeds Expectations
Employee performs consistently above the expected level of performance. This is the
performance of a fully trained, qualified, and motivated ernployee and goes beyond
expected performance standards. It requires additional effort.
3 Meets Expectations
Employee performs consistently at the expected level of efficiency and effectiveness,
and achieves set performance standards. This is successful performance fully
meeting expectations.
2 Below Expectations
Ernployee performance is inconsistent and fluctuates. A significant part of the
performance is below the performance standards set for this position. This review
indicates that serious effort is needed to improve performance. (Mandatory corrective
action plan/timetable required if the overall rating).
Unsatisfactorv
Employee does not perform or make any visible effort to achieve performance standards.
This is unacceptable performance and disciplinary action should be taken. (Mandatory
corrective action plan/timetable required if the overall rating).
MONITORING THE PERFORMANCE PLAN
Once the performance plan has been developed, it is important to monitor the plan throughout
the performance period. Ongoing communication, specific docurnentation, and additional
rneetings are necessary to effectively rnonitor the plan.
. Communication
. Documentation
. Additional Meetings During The Performance Period
One interim review is mandatory at least by the end of the seventh month of the
Performance Period. Additional meetings can be requested by either the employee or
supervisor throughout the year to discuss the plan and evaluate performance.
EVALUATION OF PERFORMANCE
At or near the end of the performance period, the supervisor will request employee input
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regarding performance. This input can be provided verbally, via notes, or via self-completed
PEP form. The supervisor will prepare a draft evaluation after having received the ernployee
input. Upon appropriate approvals of the evaluation the Supervisor and employee will rneet
and review the evaluation. The Supervisor and/or the employee rnay request the presence of
the Department Head and/or the Hurnan Resources Director during this Evaluation Meeting.
PROCEDURES
CREATING A PERFORMANCE PLAN
> PRE-PLANNING:
· Supervisor notifies the employee of plan development and informs the
ernployee of his /her right to subrnit 3-5 areas that could be developed into
performance objectives.
> PLANNING MEETING: REVIEW OF PLAN WITH THE EMPLOYEE
· During this meeting the ernployee and supervisor will review the approved
Plan.
· The ernployee and supervisor initial the plan and subrnit it to the Human
Resources Director. The Department Head and/or the Human Resources
Director rnay participate in the planning meeting with the ernployee and
supervisor if so requested by either the employee or supervisor.
· Any concerns that the employee has regarding the plan should be noted on the
plan during this meeting. It is then the Supervisor's responsibility to discuss
the ernployee's concern(s) with the Department Head and ultimately the
Human Resources Director. If any changes are approved by the Human
Resources Director and the Department Head, those changes will be reviewed
with the employee.
> Plans should not be finalized without full knowledge of the ernployee of the contents.
The employee must be given the opportunity to note any concerns with the plan.
> The Supervisor and employee rnaintain ongoing communication and documentation
of performance throughout the evaluation period.
MONITORING PERFORMANCE - INTERIM REVIEW
> One Interirn Review is mandatory at least by the end of the seventh rnonth of the
Performance Period. The supervisor will draft an interim review and have it
approved by the Department Head prior to meeting with the employee. The
Department Head and/or the Human Resources Director may participate in the
Interirn Review meeting with the employee and supervisor if so requested by either
the employee or supervisor. During the Interirn Review rneeting the employee should
receive feedback on performance in a constructive manner.
> The purpose of the interim review is to assess the performance to date and progress
toward objectives.
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~ If the overall score for any section is below 3.0 at the tirne of the interim review, a
corrective action plan must be developed. The employee and supervisor sign and date
the corrective action plan and submit the plan to the Department Head for approval
and further submittal to the Human Resources Director. Performance improvement
plans can also be developed for a specific area when performance within the area is
not meeting expectations, but the score for the overall performance plan is 3.0 or
above.
EVALUATING PERFORMANCE
~ PRE-PLANNING: The supervisor provides at least one week's notice to ernployees
to submit their input regarding their performance for the performance period. There
are multiple ways to share this information (notes, rneeting, self-evaluation). The
Supervisor also advises the employee to request any needed documents (e.g.,
division/department work plans/goals, job description, and/or PEP form) at least one
week in advance of review/evaluation rneeting.
~ DRAFT: Supervisor prepares draft evaluation and submits it to the Department Head
for Approval.
~ CONSENSUS; Supervisor, Department Head, and Human Resources Director
review, approve and agree upon draft ratings to ensure consistency.
~ EV ALUA TION MEETING: The employee and the supervisor meet to review the
performance evaluation. The Department Head and/or the Human Resources
Director rnay participate in the evaluation meeting with the employee and supervisor
if so requested by either the ernployee or supervisor.
~ The ernployee and supervisor initial the evaluation and send it to the Department
Head for approval. The Department Head then submits the initialed evaluation to the
Human Resources Director.
~ If the overall score for any section is below 3.0 at the time of the interim review, a
corrective action plan must be developed. The employee and supervisor sign and date
the corrective action plan and subrnit the plan to the Department Head for approval
and further submittal to the Human Resources Director. Performance improvement
plans can also be developed for a specific area when performance within the area is
not meeting expectations, but the score for the overall performance plan is 3.0 or
above.
~ In the event of an overall score of less than 3.0, a correct action plan will be
developed for a six month period with one mandatory interim review at 90 days. If
the overall rating of the evaluation of the corrective action plan is less than 3.0 at the
end of the six month period, the ernployee would be considered for disrnissal.
~ Evaluations should not be finalized without full knowledge of the ernployee of the
contents. The employee must be given the opportunity to note any concerns with the
evaluation.
~ If the ernployee does not agree with the final evaluation, he/she rnay appeal to the
Department Head. If resolution does not occur at this level, the employee can subrnit
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an appeal in writing to the Human Resources Director. Any changes to the evaluation
resulting frorn resolution at the Department Head level will be subrnitted and
approved by the Human Resources Director.
CLOSEOUT EVALUATION
<:;. When an employee's supervisor changes for any reason a Closeout Final Evaluation will be
completed and weighted for the percentage of the year covered by the Closeout Final
Evaluation.
TIMELINE FOR PERFORMANCE APPRAISAL SYSTEM
· All performance plans/evaluations will be cornpleted on a twelve month basis which
begins with each employee's hire date.
· Must have a planning rneeting for Performance Objectives within 30 days of anniversary
of hire date.
· Signed performance appraisal plan completed no more than 30 days after anniversary of
hire date.
· Interim Review completed by seventh month of the performance period.
· Signed performance evaluation within 30 days of end of performance period.
· New hires and promoted or transferred ernployees must have a planning rneeting and
signed performance plan within six (6) weeks of start date. Performance plans for new
hires should reflect performance expectations for the probationary period.
TIME LINE FOR IMPLEMENTATION:
· Performance Plans are being developed June and July 2005.
· All employees will have Performance Plans in place August 2005.
· As of January 1,2006, all evaluations will be done using the ernployee's Performance
Plan.
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SAMPLE
POLICY IDENTIFICATION FRAMEWORK WORKSHEET
(At a minimum these policy decisions would be addressed at the one day policy retreat)
· Positions Included In The Pay For Performance System
· Relative Weighting Of Objectives Vs. Factors
. Minimum Number Of Objectives
· Minirnum Number Of Factors
· Required Factors
· Required Objective Types
· Scoring Of Objectives
. Scoring Of Factors
· Implementation Dates For Permanent And Probationary Ernployees
· Final Evaluation Under The Current System
· Structure And Format Of Corrective Action Plan
· Interim Reviews: Employee Initiated Vs. Supervisor Initiated
· Structure Of Appeals Process
· Appointment And Function Of Reviewer
· Problem Resolution At The Plan, Interirn, And Final Levels
· External Factors
. Allowable Plan Modifications
· Evaluation Tirneframes: Probationary And Permanent
· Corrective Action Policy Framework
· Disrnissal For Performance: Policy Framework For Misfeasance, Nonfeasance, And
Malfeasance
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VIII. PRICE PROPOSAL
Compensation and Classification Studv:
The not-to-exceed total cost of the Compensation and Classification Study for the City of Sunny
Isles Beach will be:
$13,750 - $4000 = $9,750
This includes a premium preferred client discount, all direct and indirect expenses associated
with the project.
Our custornary payment schedule includes partial payments tied to verifiable completion of
selected phases of the project. The payment schedule listed below is what we would recommend
for this project; however, it is not a condition of our acceptance of this contract.
At completion of initial site work
and Orientation:
25% of contract amount
At cornpletion of ernployee interviews:
50% of contract amount
At presentation of Final Report:
25% of contract amount
Presentations beyond what is outlined above, shall be provided at the consultants customary
hourly rate plus direct expenses.
Phillip Robertson = $115 per hour
Kay Robertson = $85 per hour
Randy Davis = $85 per hour
Performance Evaluation Svstem:
The total not-to-exceed cost of the Performance Evaluation System is $9,000.
The City of Sunny Isles Beach's cost for The Mercer Group, Inc. for services rendered under
this agreement will not exceed the agreed upon price unless an increase is authorized in writing
by the City. We will cornply with all applicable laws, rules and regulations offederal, state and
local government entities.
Our ability to carry out the work required will be drawn greatly frorn our past experience in
providing sirnilar services to others, and we expect to continue such work in the future. We will,
to the degree possible, preserve the confidential nature of any information received from you or
developed during the work in accordance with our professional standards.
We assure you that we will devote our best efforts to carrying out the engagement. The results
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obtained, our recommendations and an)' written material provided by us will represent our best
judgment based on-the information available to us. Our liability, if any, will not be greater than
the arnount paid to us for the services rendered.
This proposal constitutes the agreement between us. It cannot be modified except in writing by
both parties. Our agreernent will be interpreted according to the laws of the State of Florida.
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IX. AFF'I~ATIVE ACTIQNSTATEMENL
It is the policy of The Mercer Group, Inc., to assure equal opportunity based on ability and
fitness for all employees or applicants considered for our client organizations regardless of race,
color, religion, sex, age, marital or veteran's status, national origin, or the presence of any
sensory, rnental or physical disability. Such policy shall apply, but not be limited to, hiring,
placernent, job classification, transfer or promotion, demotion, recruitment, advertising or
solicitation for ernployment, rates of pay or other forms of compensation, selection for training,
career development, layoff or termination.
This policy shall be disserninated to clients, subcontractors, suppliers and prospective applicants.
The intent of this policy will apply to internal operations, recruitment and consulting activities
conducted by our firm.
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Pamela Reid
From: Mercernc@aol.com
Sent: Thursday. August 31, 20063:10 PM
To: Pamela Reid
Cc: Thomas Acquaro
Subject: Professional Services Agmt- The Mercer Group
Pamela:
Tom asked me to respond to your request:
1) Term of contract- One year
2)
At completion of initial site work
Policy Development Workshop: 35% of contract amount
At completion of employee orientation and
Supervisor Training: 50% of contract amount
At completion of midterm
Supervisory Training:
15% of contract amount
If you have any further questions or need any additional information from us, please let me know,
Regards,
Kay
Kay Robertson
Vice President
The Mercer Group, Inc.
919-496-2080
cell: 919-349-7238 or 919-729-4102
FAX: 919-496-7995
MercerNC@aol.com
8/31/2006
Page 1 ofl
SIB
Page 1 of2
Pamela Reid
From: Thomas Acquaro
Sent: Thursday. August 31,200610:16 AM
To: mercernc@aoLcom
Cc: Pamela Reid
Subject: FW: The Mercer Group - Professional Services Agmt
Importance: High
Kay.. Please see the info that our Attorney is asking for in order to prepare a contract.. please let me know if
you need more info/guidance from me otherwise please email the requested info directly to me and I'll copy legal
(Pamela) ,..,thanks,.. T,
Tom Acquaro
Human Resources Director
(305) 792.1808
(305) 792.1642 eFax
From: Pamela Reid
Sent: Thursday, August 31,200610:10 AM
To: Thomas Acquaro
Cc: Patricia SaintViI-Joseph; Jasmine Barnes
Subject: The Mercer Group. Professional Services Agmt.
Importance: High
Tom, Per our phone conversation yesterday, please provide me with the following information as soon
as possible as this Agreement is being drafted by the City Attorney's Office:
1. The proposed term of this contract, (one year?)
2. The payment schedule on the "Performauce Evaluation System" portion of this Agreement
($9,000.00). When will this $9,000.00 be due and payable? The payment schedule on the
"Compensation and Classification Study" portion is $9,750.00 and Mercer has specified a break-
down: 25% at completion of initial site work and Orientation, 50% at completion of employee
interviews, 25% at presentation of Final Report. Thanks.
'~1I1(':;{,-,:J&,fi-'/
Legal Secretary
Office of the City Attorney
City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, FL 33160
Ph. 305-792. I 769
Fax: 305.792-1562
PLEASE NOTE: FLORIDA HAS AVER Y BROAD PUBLIC RECORDS LAW. MOST WRITTEN COMMUNICATIONS TO OR FROM CITY OFFICIALS
REGAROING CITV BUSINESS ARE PUBLIC RECORDS AVAILABLE TO THE PUBLIC AND MEOlA UPON REQUEST, YOUR E-MAIL
COMMUNICATIONS MAY THEREFORE BE SUBJECT TO PUBLIC OISCLOSURE THE INFORMATION CONTAINED IN THIS TRANSMISSION MA Y
CONTAIN PRIVILEGED AND CONFIDENTIAL INFORMATION. IT IS INTENDED ONL Y FOR THE USE OF THE PERSON!S) NAMED ABOVE, IF VOU
ARE NOT THE INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIEOTHAT ANY REVIEW. DISSEMINATION, DISTRIBUTION. OR DUPLICATION OF
THIS COMMUNICATION IS STRICTL Y PROHIBITED. IF YOU ARE NOT THE INTENDED RECIPIENT, PLEASE IMMEDIATEL Y CONTACT THE
SENDER BY REPL Y E.MAIL AND DESTROY ALL COPIES OF THE ORIGINAL MESSAGE. THANK YOU.
SIB
8/31/2006
OF SU"
TO:
FROM:
DATE:
RE:
City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, Florida 33160
(305) 947-0606 City Holl
(305) 949-3113 Fox
(305) 947-2150 Building Department
(305) 947-5107 Fax
City Commission
Norman S. Edelcup, Mayor
Roslyn Brezin. Vice Mayor
Gerry Goodman, Commissioner
Danny Iglesias. Commissioner
Lewis J. Thaler, Commissioner
A. John Szerlag. City Manager
Hans Ottinot, City Attorney
.Jane A. Hines. City Clerk
MEMORANDUM
Tom Acquaro, Human Resources Directo/(\,,U ~
Priscilla Walker, CMC, Deputy City Clerk
October 3,2006
Approval of Compensation/Classification Study Agreement with Mercer Group
At its regular meeting of September 21, 2006, the City Commission adopted Resolution No.
2006-982, which approved a Compensation/Classification Study and Related Items Agreement
with Mercer Group. Attached is a copy of the approving resolution and agreement for your files
Thank you.
:pw
Attachments
cc: A. John Szerlag, City Manager (w/o attachments)
Hans Ottinot, City Attorney (w/o attachments)
Jean Watson, Finance Director
Shaun S. Gelvez, Contracts Coordinator
Mercer Study Agrmt Trans Memo
City Commission
Norman S. Edelcup
Mayor
Roslyn Brezin
Vice Mayor
Gerry Goodman
Commissioner
Danny Iglesias
Commissioner
Lewis J. Thaler
Commissioner
A. John Szerlag
City Manager
Hans Ottinot
City Attorney
Jane A. Hines
. City Clerk
September 26, 2006
Phillip G. Robertson,
Senior Vice President
The Mercer Group, Inc.
3443 Highway 39 North
Louisburg, NC 27549
Re: Compensation/Classification Agreement
Dear Mr. Robertson:
At its regular meeting of September 21, 2006, the City Commission adopted
Resolution No. 2006-982, which approved an with Mercer Group, Inc. to conduct a
compensation/classification study and related items. Attached are the three (3) original
agreements for execution and witnessing by Mercer Group.
Upon completion, please return all three (3) originals to my attention. We will then
finalize processing of the agreements and return one original agreement and a copy of
the approving resolution to your attention.
Should you have any questions related to the processing of this agreement, please call
me at (305) 792-1703.
Thank you.
Very truly yours,
~~W~
Priscilla Walker, CMC
Deputy City Clerk
:pw
Attachments
cc: A. John Szerlag, City Manager (w/o attachments)
Hans Ottinot, City Attorney (w/o attachments)
Tom Acquaro, Human Resources Director (w/o attachments)
Jean Watson, Finance Director (w/o attachments)
Shaun S. Gelvez, Contracts Coordinator (w/o attachments)
Office of the City Clerk (305) 792-1703 Phone (305) 949-3113 Fax
Mercer Group Comp-Class Study Agrmt For Sig Llr
"
City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, Florida 33160
City Commission
Norman S. Edelcup, Mayor
Roslyn Brezin, Vice Mayor
Lewis J. Thaler, Commissioner
Gerry Goodman, Commissioner
Danny Iglesias, Commissioner
(305) 947-0606 City Hall
(305) 949-3 II 3 Fax
(305) 947-2150 Building Department
(305) 947-5107 Fax
A John Szerlag, City Manager
Hans Ottinot, City Attorney
Jane A. Hines, City Clerk
MEMORANDUM
To:
The Honorable City Commission
Via:
A. John Szerlag
~
From: Thomas J. Acquaro, Human Resources Director
Date: August 24, 2006
Re: Mercer Group, Inc. Compensation/ Classification Plan and Performance Evaluation
System
BACKGROUND:
The City initially retained the Mercer Group, Inc. in 2004 to conduct a Compensation/Market Study
and to review the City's job reclassification process. The 2004 study was a market study to evaluate
the City's overall pay plan in relation to the South Florida job market and to recommend a process
for reclassifying positions in which the responsibilities had changed and also to recommend a
process for evaluating new positions. During the 2004 study, they strongly recommended that the
City consider adopting a different style classification system that would be more sensitive to internal
equity among positions and more appropriate for, and typically found in, local governments as
compared to the City's strictly market sensitive classification system.
RECOMMENDATION:
It is recommended that the City Commission approve the attached resolution to engage Mercer
Group, Inc. to: conduct a comprehensive compensation/classification study for all full-time
employees except for the positions covered by the Police Dept. Step Plan for the not-to-exceed cost
of $9,750.00 and; to develop and implement a performance evaluation system for all full-time
employees for the not-to-exceed cost of $9000.00.
Date
IO~
10
Agenda Item