Loading...
CCR1998155COMMON COUNCIL - CITY OF MUSKEG0 RESOLUTION #155-98 APPROVAL OF AGREEMENTS BETWEEN COMMONWEALTH PERSONNEL MANAGEMENT SERVICES AND THE CITY OF MUSKEG0 (Non-Represented and . Represented Employees) BE IT RESOLVED That the Common Council of the City of Muskego, upon the recommendation of the Finance Committee, does hereby approve the attached Agreements between Commonwealth Personnel Management Setvices (CPMS) and the City of Muskego to develop a classification plan including all of the City's represented employees; and, to develop and implement a job content based performance management and evaluation program for all of the City's non-represented employees. BE IT FURTHER RESOLVED That the Mayor is authorized to make any necessary technical changes to the Agreements, in consultation with the City Attorney, and is authorized to execute the Agreements in the name of the City. DATED THIS 1 Ith DAY OF AUGUST , 1998. SPONSORED BY. FINANCE COMMITTEE Ald. Mark A. Slocomb Ald. David J. Sanders Ald. Nancy C. Salentine This is to certify that this is a true and accurate copy of Resolution #155-98 which was adopted by the Common Council of the City of Muskego. 8/98jm Cler - reasurer P @ COMMONWEALTH PERSONNEL MANAGEMENT SERVICES 1280 Kent ? Wheaton, 1L 60187 ? [708] 653-1361 ? FAX [708] 752-8751 AGREEMENT (*Corrected) This agreement is entered into this eleventh (1 lth) day of August, 1998, by and between the City of Muskego, Wisconsin, [Municipal Corporation], (hereinafter referred to as the "City") and Barton R. Gethmann, doing business as the sole proprietorship, Commonwealth Personnel Management Services, (hereinafter referred to as "CPMS"). W-I-T-N-E-S-S-E-T-H The parties to this Agreement agree as follows: I. CPMS shall develop and implement a job content based performance management and evaluation program for all of the City's 'nonrepresented employees, as described in its proposal dated July 21st, 1998 and attached as Exhibit A. 2. CPMS hrther agrees to provide training and consulting guidance to designated staff, throughout the job expectation development phase, [as described infihjbit A]. 3. CPMS shall begin its study no later than 15 working days after the date of execution of this contract and shall complete the study of all positions within 90 days thereafter (provided the City adheres to the project schedule and timetable agreed to between the Mayor and CPMS). 0 4. The cost of services (including expenses) to be rendered pursuant to this Agreement shall not exceed $6,560 [consulting fees are set at $60.00 per hour]. 5. Two invoices for the services provided pursuant to this Agreement shall be rendered to the City, to the attention of the Mayor andor his designee. Each invoice shall cover a one-half payment [$3,280] with the initial invoice being delivered at the commencement of the project, the second invoice shall be rendered at the completion of the project. Payment is due upon receipt of all such invoices, except that payment on the final invoice may be withheld until the City is satisfied that it has received all of the services outlined in the Performance Management & Evaluation Plan Proposal. If CPMS has completed its work for less than the agreed upon $6.560, the second invoice will reflect the difference in the amount billed. We routinely allow the client to apply a 2%% discount to the cost of the invoice if it is paid within ten days from the date it is rendered. This shall represent the total amount of this contract unless the City selects Option A, as follows: Having CPMS conduct an annual salary policy update, review the job content changes in individual positions and provide intensive assistance to City exempt employees in their performance evaluation ratings on the CPMS evaluation program will increase the City's project costs by an additional $7,200 dollars in consulting fees and expenses. 1 COMMONWEALTH PERSONNEL MANAGEMENT SERVICES 6 I 8. 9. 10 11 12. 13. 1280 Kent ? Wheaton, IL 60187 ? [708] 653-1361 ?FAX [708] 752-8751 The City may terminate this Agreement at any time by providing written notice of termination to CPMS, pursuant to Paragraph 18. In the event the City elects termination, it shall only be obliged to pay the feedexpenses [as noted by the activities undertaken in the Project Cost Estimate Sheet] incurred by CPMS up to the time of termination. CPMS shall not discriminate against any employee or applicant for employment based on race, color, creed, ancestry, religion, sex, age, sexual orientation, disability, height, weight, national origin, marital status or any other non-merit factor CPMS shall be responsible for the acts and omissions of all its employees and subcontractors and their agents and employees performing any of the services rendered pursuant to this contract. The Mayor will designate a project coordinator as the City's representative with respect to the work to be performed under this Agreement. Hdshe shall have the authority to transmit instructions, receive information, interpret and define the City's policies, and provide decisions in a timely manner pertinent to the work described in the Agreement, until CPMS shall have been advised by the City that such authority has been revoked or altered. The City agrees to hrnish CPMS -- for use during the project -- photocopies of information, salary and related data, reports, and records available to the City which are usehl for carrying out the work on this project [Not included are the private records of employees]. All such information, data, reports and records will, however, remain the sole property of the City unless otherwise indicated, in writing, to CPMS and if any City reports or records are in the possession of CPMS at the time this contract is terminated or completed, whichever comes first, CPMS agrees to return as promptly as possible, City records in their possession to the project coordinator. CPMS shall not assign or transfer any interest in this Agreement (whether by assignment or novation), without prior written consent of the City thereto: Provided, however, that claims for the money that will become due to CPMS from the City under this Agreement may be assigned to a bank, trust company or other financial institution without such approval. CPMS agrees that it presently has no interest and shall not acquire any interest, direct or indirect, which would conflict in any manner with the performance of services required under this Agreement. CPMS hrther agrees that in the performance of any obligation resulting from this Agreement no person having any such interest shall tie employed. No reports or other documents produced in whole or in part under this Agreement shall be subject of an application for copyrighting by or on behalf of CPMS, however, the City agrees to honor CPMS's existing copyright on its JOB ELEMENT, METHOD OF POSITION ANALYSIS documents under normal usage stipulations agreed to herein between CPMS andx the Mayor. 2 COMMONWEALTH PERSONNEL MANAGEMENT SERVICES 0 1280 Kent ? Wheaton, IL 60187 ? [708] 653-1361 ?FAX [708] 752-8751 14. This Agreemenf represents the entire agreement of the parties hereto with regard to the services to be performed pursuant hereto. 15. This Agreement shall be interpreted under the laws of the State of Wisconsin 16. A copy of all data, records, analyses, calculations, comparison studies, and any and all related paperwork to this compensation study generated by CPMS, shall be made permanently available to the City, to remain in the possession of the City. The City shall retain said paperwork for its own work purposes and shall keep said papenuork confidential and not make it available to any outside agency until such time as the final study report has been formally presented to and accepted by the City Council, except as required by law. 17 The failure of the City to enforce any term or condition of this Agreement shall not automatically constitute a waiver or modification of such term or condition. Amendments or modifications to this Ageement may be made between CPMS and the Mayor or hisher designee, upon the agreement of both parties. 18. AU notices of communication pursuant to this Agreemenf shall be directed to CPMS at its offices at 1280 Kent, Wheaton, IL 60187 [or such oh place as it may &signate in writing] sent to the City, care of Mayor David L. DeAngelis, City Hall; W182 58200 Racine Avenue; Muskego, Wisconsin 53150- 0903. 0 IN WITNESS WHEREOF, the authorized representatives of the parties to this Agreement have hereunder set their hands. COMMONWEALTH PERSONNEL WISCONSIN MANAGEMENT SERVICES THE CITY OF MUSKECO, [a sole proprietorship] By: Barton R. Gehna~, Its: President Date: I I1998 Date: I 11998 By: David L. DeAngelis, Its: Mayor 3 Frm. Bad Gclhmann TO Dawd Dehgehs Mayor .. .. Date. 7121H998 Xm: 2:lB.W PM EXHIBIT A Paoe 2 of 7 c COMMONW€ALTH P€RSONN€L MANAG€M€NT S€RUIC€S - 1280 Kent 0 "heaton, lL60187 16301 653-1361 0 FAX 16301 752-8751 CITY OF MUSKEGO, WISCONSIN PERFORMANCE EVALUATION & MANAGEMENT PLAN PROPOSAL As part ofits overall salary administration program, the City of Muskego is interested in providing its non-represented para-professional, professional, supervisory and managerial employees with a job content based performance management and evaluation program, which will include additional training in the on-going administration of the new performance evaluation program. The type of evaluation system the City now uses in some of its departments is a trait based performance evaluation instrument. A number of departments have not been using performance evaluations on a regular. basis and those that have (BUC~ a9 the PO^ Department] are not necessarily using the same evaluation fonn. The City's new salary administration program calls for a linkage between the increases granted to individual employees and their annual evaluation ratings. In this follow-up stage to our initial pay program installation, the City is interested in providing indepth training to raters and all other non-union employees on the value of performance evaluations, on the importance of understanding and applying performance counseling and employee development concepts, as well as on the techniques used in both performance goal setting and annual rating sessions. 0 Providing such training can help the City assure that its raters and its exempt employees receive the maximum benefits from the new performance evaluation process. Maintenance and administration of an effective performance management and evaluation program is a difficult and time consuming process. For it to really succeed, all parties involved must make a serious commitment to making it succeed. This phase of follow-up training to our initial base compensation study is intended to help all levels of managers, professional and supervisors become more familiar with their roles within the overall evaluation process. The CPMS performance management and evaluation training program has been designed within the overall context of a performance management approach. This approach begins with the premise that every employee's feelings of self worth are linked to a desire to become more effective on the job. If City management can counsel its employees in those areas where they least effectively achieve those end results their individual positions are designed to accomplish; if this is done in a positive manner, that builds on strengths [rather LII attacking weakneseee]; employee responses - in terms of attitude and productivity - can dramatically change for the good. The City's performance management and evaluation system should build its process through direct managemenVemployec interaction in the performance managemenqob expectation definition/personal performance goal setting process. 1 Dale. 712111998 Time. 2.18.04 PM Page 4 01 7 COMMONWEALTH PERSONNEL MANAGEMENT SERUICO 1280 Kent e Wheaton, 1L 60187 e 16301 653-1361 FAX 16301 752-8751 B. PROJECT ACTIVITIES PLAN - The following pages include a summary of the major program development and implementation activities necessary for this project to become a viable program for all of the City's non-union employees: ACTIVITY A - Project Planning and Orientations 1 Meet with the Mayor to define the process steps, stages, and timetables [l 'A hours]; 2. Conduct an initial two hour session for all City raters (Mayor, Department Heads, mid- managers and 1st level supervisors) [2 hours]; and 3. Run a focus group process with a Performance Appraisal Committee to define and describe the tqpes of problems raters have with evaluations, upon which they wish to have the training program focus [4 hours]. ACTIVITY B - Development of Training Materials 1 2. 3. CPMS prepares training materials and supplemental materials to provide training to all City exempt employees in the CPMS Performance Management and Evaluation Process [8 hours]. CPMS will structure new training approaches to help City managers, supervisors and professional or para-professional staff learn the principles involved through: e Practical Exercises Role Playing Lecture e Case Studies The Mayor will review all training documents to assure they meet with their approval and CPMS makes any reasonable modifications necessary; BMs presents the City with a master camera-ready copy of the training manual and the City reproduces an appropriate number of copies (one for each rater) [ 1 hour]; and ACTIVITY C - Training Managers, Supervkors and Employees 1 Present overview of initial Performance Management and Evaluation training concepts [8 hours in two halfday sessions]. This training would cover the following topics: Motivational Compensation Making the Evaluation System Worh 3 Managing Employee Performance Handling the Rating Session Dale. 712141998 Tame. 2'1804 I" Paw 6 01 7 6 COMMONWEALTH PERSONNEL MANAG€M€NT S€RUIC€S 1280 Kent 0 \\heston, IL 60187 0 (6301 653-1361 0 FAX 1630) 752-8751 ACTMTY E - Annual System Maintenance Services Update market surveys, salap policy lines and individual position job element point totals and deliver refresher training to employees and exempt employees on how to develop, deliver and effectively use the job content based performance management and evaluation plan, including the following: 1, Gather and anal!ze updated market survey materials from the communities in,volved in the most recent market study and propose adjustments to the salary policy formula and salary schedule, including meeting with key City staff to explain the results and their impact [24 hours]n 2. Examine changes in the job content of any position included in the initial study to re-evaluate thejob element points assigned the position, ma!-ing any recommendations to adjust the pay rangeassigned the position if point total changes show the need for such a change [8 hours]; 3. Assist each partxipant with completing their rating forms, giving individual attention to each rater to make sure they are adhering to the rating guidelines and standards provided in the initial training [40 hours]Q; 4. Conduct follow-up reviews of all rater's final evaluations, helping them tweak job expectation definitions, weighting percentages, measures of achievement, personal planning goals, or final rating justifications [32 hours]* and 5. CPMS provides individual constructive retraining to those exempt employees whose evaluations show that it is needed [12 hours]D. 5 COMMONWEALTH PERSONNEL MANAGEMENT SERVICES 1280 Kent ? Wheaton, IL 60187 ? [708] 653-1361 ? FAX [708] 752-8751 AGREEMENT This agreement is entered into this eleventh (11th) day of August, 1998, by and between the City of Muskego, Wisconsin, [Municipal Corporarion], (hereinafter referred to as the "City") and Barton R. Gethmann, doing business as the sole proprietorship, Commonwealth Personnel Management Services, (hereinafter referred to as "CPMS"). W-I-T-N-E-S-S-E-T-H The parties to this Agreement agree as follows: 1. CPMS shall develop a classification plan, including all of the City's union employees, as described in its proposal dated July 18th 1998 and attached as Exhibit A. 2. CPMS hrther agrees to provide training and consulting guidance to designated st&, throughout the job content evaluation phase, [as described in Ewhibii A]. 0 3. CPMS shall begin its study no later than 15 working days after the date of execution of this contract and shall complete the study of all positions within 90 days thereafter (provided the City adheres to the project schedule and timetable agreed to between the Mayor and CPMS). 4. The cost of services (including expenses) to be rendered pursuant to this Agreement shall not exceed $1 1,200 [consulting fees are set at $60.00 per hour -- for a detailed breakdown of costs refer to Project Cost Estimate Sheet included behind page 14 in the proposal]. 5. Three invoices for the services provided pursuant to this Agreement shall be rendered to the City, to the attention of the Mayor andor his designee. Each invoice shall cover a one-third payment [$3,733] with the initial invoice being delivered at the commencement of the project, a second invoice shall be rendered one month From the date of the first invoice and a third invoice shall be rendered at the completion of the project Payment is due upon receipt of all such invoices, except that payment on the final invoice may be withheld until the City has received the final report from CPMS and both presentations have been made to City Council. If CPMS has completed its work for less than the agreed upon $1 1,200, the third invoice will reflect the difference in the amount billed. We routinely allow the client to apply a 2%% discount to the cost of the invoice if it is paid within ten days from the date it is rendered. This shall represent the total amount of this contract unless the City selects Option A, as follows: each employee to them through one day of direct departmental meetings, through two days of one-on-one Having CPMS conduct three days of post-project employee orientations to explain the study's impact on sessions with each participant [including preparation of an explanatory brochure] will increase the City's project costs by an additional $2,150 dollars in consulting fees and expenses. 1 - COMMONWEALTH PERSONNEL MANAGEMENT SERVICES 1280 Kent ? Wheeton, IL 60187 ? [708] 653-1361 ? FAX 17081 752-8751 6. The City may terminate this Agreement at any time by providing written notice of termination to CPMS, pursuant to Paragraph 18. In the event the City elects termination, it shall only be obliged to pay the feedexpenses [as noted by the activities undertaken in the Project Cost Estimate Sheet] incurred by CPMS up to the time of termination. I CPMS shall not discriminate against any employee or applicant for employment based on race, color, creed, ancestry, religion, sex, age, sexual orientation, disability, height, weight, national origin, marital status or any other non-merit factor 8. CPMS shall be responsible for the acts and omissions of all its employees and subcontractors and their agents and employees perfoming any of the services rendered pursuant to this contract. 9. The Mayor will designate a project coordinator as the City's representative with respect to the work to be performed under this Agreement. He/she shall have the authority to transmit instructions, receive information, interpret and define the City's policies, and provide decisions in a timely manner pertinent to the work described in the Agreement, until CPMS shall have been advised by the City that such authority has been revoked or altered. 0 10. The City agrees to furnish CPMS -- for use during the project -- photocopies of information, salary and related data, reports, and records available to the City which are useful for carrying out the work on this project [Not included are the private records of employees]. AU such information, data, reports and records will, however, remain the sole property of the City unless otherwise indicated, in writing, to CPMS and if any City reports or records are in the possession of CPMS at the time this contract is terminated or completed, whichever comes first, CPMS agrees to return as promptly as possible, City records in their possession to the project coordinator. 11 CPMS shall not assign or transfer any interest in this Agreement (whether by assignment or novation), without prior written consent of the City thereto: Provided, however, that claims for the money that will become due to CPMS fiom the City under this Agreement may be assigned to a bank, trust company or other financial institution without such approval. 12. CPMS agrees that it presently has no interest and shall not acquire any interest, direct or indirect, which would conflict in any manner with the performance of services required under this Agreement. CPMS hrther agrees that in the performance of any obligation resulting from this Agreement no person having any such interest shall be employed. .. 13. No reports or other documents produced in whole or in part under this Agreement shall be subject of an application for copyrighting by or on behalf of CPMS, however, the City agrees to honor CPMS's existing copyright on itsJOB ELEMENT METHOD OF POSITION ANALYSIS documents under normal usage stipulations agreed to herein between CPMS and the Mayor 2 14. 15. 16. 17 0 18. COMMONWEALTH PERSONNEL MANAGEMENT SERVICES 1280 Kent ? Wheaton, IL 60187 ? I7081 653-1361 ? FAX [7081752-8751 his Agreement represents the entire agreement of the parties hereto with regard to the services to be performed pursuant hereto. This Agreement shall be interpreted under the laws of the State of Wisconsin, A copy of all data, records, analyses, calculations, comparison studies, and any and all related paperwork to this compensation study generated by CPMS, shall be made permanently available to the City, to remain in the possession of the City The City shall retain said papenwork for its own work purposes and shall keep said paperwork confidential and not make it available to any outside agency until such time as the final study report has been formally presented to and accepted by the City Council, except as required by law. The failure of the City to enforce any term or condition of this Agreement shall not automatically constitute a waiver or modification of such term or condition. Amendments or modifications to this Agreement may be made between CPMS and the Mayor or hiher designee, upon the agreement of both parties. All notices of communication pursuant to this Agreement shall be directed to CPMS at its offices at 1280 Kent, Wheaton, IL 60187 [or such other place 85 it may designate in writing] sent to the City, care of Mayor David L. DeAngelis, City Hall; W182 S8200 Racine Avenue; Muskego, Wisconsin 53 150- 0903. IN WITNESS WHEREOF, the authorbed representatives of the parties to this Agreement have hereunder set their hands. 1 COMMONWEALTH PERSONNEL 1 THE CITY OF MUSKEGO, ~~~ ~~ MANAGEMENT SERVICES [a sole proprietorship] WISCONSIN By: By: Barton R. Gethmann, Its: President David L. DeAngelis, Its: Mayor Date: I 11998 Date: I I1998 3 EXHIBIT A 0 COMMONWEALTH PERSONNEL MANAGEMENT SERVICES 1280 Kent Wheaton, IL 60187 [630] 653-1361 FA. [630] 752-8751 CITY OF MUSKEG0 NON-EXEMPT EMPLOYEES’ COMPENSL4TION STUDY I. Statement of the Problem The city of iMuskego, Wisconsin is concerned with salary compression and pay equity problems in its existing pay plan for dl seventy union positions. Though the City wants to assure that its union compensation plan is fair, it also wants to assure that this plan is structured to support the management objectives that underlie the reasons why the City provides a compensation plan for this group of employees. To address a number ofwage compresiodequity issues, the City feels it must examine the effectiveness of its current union pay structures in providing an externally competitive pay plan that is internally equirable, both among the union employees and between union and non-union positions. This proposal puts forth the steps necessary to conduct a thorough review of the City’s union employees’ job classification and compensation decision malung processes. The Ciry has experienced a number of difficulties with staff perceptions of internal equity and equal pay, largely as a result of the long term impact of the most recent classification & compensation system study. In seehug to understand the salary compression issues involved, we learned that the 1995-96 study did not make clear the rationale behind its reasons for makmg the job measurement and ranking decisions that came out of the process. While ths firm has evaluated and addressed this issue with the recently approved Exempt Employees’ Classification and Compensation Plan, this issue still remains with the City’s represented employees. The 95 DMG study did not examine the consequence of its market adjustment recommendations on the salaries of union employees in relation to the pay levels of similar level positions in different City departments [e.g., assigning Library Pages to a higher pay grade than main ofice Filing Assistants]. Obviously, such pay equity problems, if left unaddressed, can cause severe employee morale problems, increased potential for turnover among bargaining unit staE Typically, a number of different problems may be found to underlie wage compression and pay equity problems amongst bargaining unit members. Some ofthese may include problems with: How pay levels (wage rates) have been set in relation to the market [it, normally collective bargaining sessions do not consider the market percentile at which the negotiated wage policy is set]; How distinctly the rationale for making union job classification decisions has bem made clear to those responsible [both union & management] for administerin_e the plan;g i COMMONWEALTH PERSONNEL MANAGEMENT SERVICES 1280 Kent Wheaton, IL 60187 [630] 653-1361 F.LX 16301 732-8751 How well the mechanics of the wage settlement (i.e., internal equity between union jobs in different labor markets, wage rate range width, separation of merit adjustments from the annual adjustments, movement within range, etc.) has been structured to address real wage issues; How employee length of service issues are addressed by the compensation plan; How the plan addresses employee in-range movement; How (if at all) the pay settlement links increases to performance evaluations; and How the plan deals with increase potential for employees who are at the maximum of their respective ranges. Based on this situation and on the need to get a handle on union employees' job classification, the Ciry's administration believes a thorough outside review of the effectiveness of its present union compensation system is desirable. 11. Project Objectives - The principal objectives of this system review are: to assess the current union staff compensation processes [that are outlined in existing bargaining unit contracts] to determine if they are properly structured for achievins internal equity and external competitiveness in compensation policy decision makmg; to look at the current wageicontract system and examine how it makes job measurement and job classification decisions; to evaluate current contracts to determine how employees receive annual adjustment, in relation to annual market realignments; to gather current information about the job content of each union covered position to define & document what changes have occurred since 1995; to evaluate the job content of each non-exempt job to determine if changes in job content have been sufficient to warrant changes job classification or in the relative rdng of any effected positions; to analyze the current union contract compensation plans to determine: Whether or not the current relative r&Z of non-esempt positions is consistent with the nature of duties and responsibilities assigned the incumbents; Whether of nor non-exempt employees are paid fcrly in relation to each other [internal equiy]; COMMONWEALTH PERSONNEL MANAGEMENT SERVICES 1280 Kent Wheaton, IL 60187 16301 653-1361 FAX 16301 752-8751 Whether of not non-exempt employees are paid fairly in relation to an appropriately defined exTemal market of comparable Southeast Wisconsin employers; Where should an annual "Wage Policy" be positioned in relation to tIus municipal survey market se-ment?; How should future wage rate schedules be set up [open range schedules vs. Fade-Step tables?]; What should the range widths be [85% - 115%: 90% - 110%; etc]? 1. 85% - 115% often covers clerical, office and technical positions; or 2. 90% - 110% is typically applied to maintenance & trades jobs. What percentage difference should exist between each range's midpoint [e.g., 2%%, 5%; 7.5%: etc.]? How nil1 employees move from the range minimum to the maximum? Should annual increases be linked to performance? How should contract increases be linked to the market increases? How dl the pay plan be adjusted to keep current with changes in the job market? a. Will the schedule be adjusted annually to address annual market movement?; and b. How often will you resurvey your job market [market surveys help you see not only what impact cost of living has had on wages or salaries, but also what impact the scarcih or surplus ofjob skill supply/dernand has had on pay for specific occupation specialties]? Wage Compression - Wage compression is the shrinking of wage dserences paid to newcomers [in a job classification series] when compared to the amount paid to experienced regulars. It appears that this is a notable problem among your bargaining unit employees. This wage compression condition can be present whenever an employer provides an insufficient wage rate increase to adequately reward significant increases in an employee's job content. It can also occur when a new employee [in that same classlfication] or a subordinate employee is paid a rate which approaches rates paid to experienced regulars or to supervisors. In either event, it is observable when the difference between the lowest wage rate and the highest salary is compressed, causing wage compression. This can result in a situation in which employees are reluctant to accept additional responsibilities, or even promotion to the next highest class, because they feel they will receive little monetary reward for obvious increases in job responsibility or job size. Analysis of Internal Equity -- One of the most persistent problems in the public sector is that typical union contracts pay too much attention to market competitiveness and scant attention to internal equity. Therefore, the City's current actual union salary practices will be analyzed for consistency and COMMONWEALTH PERSONNEL MANAGEMENT SERVICES 1380 Kent Wheaton, IL 60187 [630] 653-1361 FAX 16301 752-8751 internal equity utilizing the job content evaluation weights of the various positions relative to current actual salaries paid to position incumbents. Overall scattergms, serving as tools for comparisons, will be developed to depict the actual salary practices. .4 scattergram is developed by plotting an asterisk at the intercept of total job points (horizontal axis) and the actual salary (vertical axis) for each position. Ideally, actual salaries should bear a reasonable and consisrent relationship to the relative difficulty and responsibility of positions. Such a relationship can be represented by a line of central tendency drawn through the scatter of plot points. The line of central tendency is derived using hear regression analysis to mathematically depict the collective relationship between all of the job element points assigned each position to the current actual salary dollars paid each position's incumbent. When municipal governments maintain a consistent relationship between job content and actual salaries, the line of central tendency appears as a straight he. When a bend or break in the line occurs, it is indicative that factors other than job conmt have been used to determine the compensation levels of position incumbents. An ideal situation would find the City maintaining a straight line relationship between measured job size and union wages. E~bits d be prepared [see sample charts in Appendix BJ which graphically display the: e Relationship ofjob content to wage dollars for all positions included within the mdy: and Current wage practices as represented by lines of central tendency [labeled Current Wage Practice lines]. The City's internal equity in wage practices can be graphically shown with the scattergam. Lines are plotted above and below the line of central tendency to indicate the width [percentaze difference between the minimum (90%) and maximum (1 10%) of the City's wage practices] of a typical wage range for positions in the public sector. Dispersion of plot points [i.e., the dlfferences in wage rates] at any given point value does not indicate a problem, provided all the dots fall within this cone. This dispersion can be explained by factors such as length of service or meritorious wage increases. or a combination of both. However, plot points falling above or below the cone [marked by 90% and 110% lines] reflect an inconsistent relationship between evaluated job complexity and actual current wage. It is normally considered that those plot points (individual positions) which fall above the cone reflect a compensation level that is higher than the job content wei& assigned to an individual position. It is also normally considered, for positions whose plot points fall below the cone, they are receiving a lower level of compensation than the job content value of their positions would indicate. This most frequently occurs where factors other than job content have influenced wage treatment. Analpsis of Equity Relationships -- The current wage practice lines for the union positions will be laid down over the external market data to determine how relevant your current salaries are in relation COMMONWEALTH PERSONNEL MANAGEMENT SERVICES 1280 Kent Wheaton, IL 60187 16301 653-1361 FAX [630] 752-8751 to this data base. The "External Market Wage Survey - Illustrative Chart", found opposite page 17 in the Exempt Employee's Position Classification, Job Evaluation and Salary Administration Study, shows how we normally analyze the structured prevailing rate model utilized for external comparisons. A competitive wage policy begins at the market mean or 50th Percentile line that is shown on the market model charts. In addition to wage data, job content data is collected from participating municipalities to assure their jobs are measured so that internal point and wage data comparisons will match up with external employer's point and wage data comparisons, This is done to avoid the signtficant data collection inaccuracies that typically haunt the simpler (but less reliable) job title matching methods of market data analysis (such as is used in the ICMA Municipal Yearbook's Governmental Wage Survey). Charts displayed in Appendix A depict the results of a market survey collection and analysis process. They allow for comparisons of your current wage practice with an appropriate extract of market data from a small benchmark sample of similarly sized Wisconsin communities. This will need to be done with roughly twenty-five jobs to give the City a reality check with the current municipal market. Since much of the information you gathered is now a year old, we will need to verify that the wage rates and job content levels of the positions surveyed is indeed accurate and comparable to your positions. The development and accepted use of quantitative job measurement systems have changed the way in which external market survey data can be used. Such evaluation techniques as the JOB ELEMENT METHOD OF POSITION ANALYSIS are capable of accurately measuring the job size or content of all the jobs in an employer's workforce. This makes possible the comparison of very different job types through the common denominator of job element points. With such a job measurement scale, the City is able to compare the contribution made by different positions to the overall City government. This analysis allows us, both inrernally and externally, to extend the com- parison base to other,employers to explain a wide range of variation in municipal compensation rates and structures. The statistical techques that are part of this methodolog provide a clearer [visual, not just tabular], much more accurate picture of how the City's pay policies relate to those of the market you have surveyed. This enables the City to formulate pay policies that can effectively adjust to the changing conditions within the ugion market segment. Under this wage administration concept, the size of the job determines the level of pay range to which a position is ultimately assigned, therefore, a position's job content evaluation becomes the key determiner ofjob worth. Both internal equity analysis and external competitiveness comparisons utilize conversions Of job element point and wage data to lines of central tendency. These lines are derived from advanced statistical techques called linear regression analysis. This conversion makes possible the comparison of internal wage practices with external market models on a visual and graphic basis. Wage comparison and ultimate pay plan development become much simpler. In fact, positioning a new pay plan recommendation against the measured market is done by laying a line over a market model chart. Purpose of a Wage Rate Range -- The purpose of a wage range, as differentiated from a fixed value job rate, is to recognize that each position has a learning curve and that there are differences in COMMONWEALTH PERSONNEL SERVICES 1280 Kent Wheaton, IL 60187 16301 653-1361 MANAGEMENT FAX [630] 752-8751 performance between the average entry level employee and the experienced regular. By creating several steps with a wage rate pay range, the City recognizes that more experienced employees are often better performers and that, therefore, they should receive a higher annual increase. The idea of having a range of compensation for employees in any given bargaining unit classification is designed to provide the City with a greater degree of flexibility in addressing the competitive realities of the employment market. In the long run, thls can help assure that the City can continue to attract and retain qualified and competent individuals to perform the various functions and activities their positions have been designed to address. Conductmg a study of thls nature in a collectwe bargainmg enwonment means that we can make recommendations regarding the evaluation of job content, the reclassification of lndivldual positions, the reassignment of wage rate scales for vanous classes [within ranges already recognized by the existing bargaining unit contract], and the companson of pay rates with the external market for slrmlar jobs. In such circumstances, all survey dormation becomes mfomation to be placed on the table for the use of both parties negotiahng new wage packages. To be implemented, all of our recommendations must be ratded by the vanous bargaiumg units and by the City Council. 0 I '. COMMONWEALTH PERSONNEL MANAGEMENT SERVICES 1280 Kent Wheaton, IL 60187 16301 653-1361 FAX [630] 752-8751 111. NOTE: Activities occurring on-site are annotated with a sunburst ( ) symbol. PROJECT ACTIVITIES PLAW This project activities plan involves a series of activities and tasks, as noted below- ACTMTY I PROJECT PLANNING, ORIENT.4TION & INITIAL DATA COLLECTION A. Review and finalize schedule of tasks and sub-tasks with the Project Coordinator [I hour] , B. The Project Coordinator makes available a variety of materials for the consultant's inspection, including the current pay plaq job descriptions, materials [including contract documents] that explain how union classes were assigned to pay ranges, how pay range structure decisions are made and how annual increase policy decisions are arrived at [4 hours]; C. Design PDQ's and orient all participating union employees [plus top City managers] in the study process, goals, objectives, roles and responsibilities [8 hours] , and 0 D. CPMS assists the Project Coordinator in distributing position description questionnaires (performed during the orientation sessions) ACTIVITY I1 JOB DOCUMENTATION FOR FULL-TIME POSITIONS - A. B. C. D. E. The Project Coordinator and department heads should provide help to any individual employee who needs extra assistance in completing their job description questionnaire; Each employee's immediate supervisor collects and performs a detailed review of each individual's job description form. Note: at th~s stage the employee and the supervisor should anive at a mutual understanding ofjob expectations; The Project Coordinator schedules 70 desk andor field audit interviews for the consultant; The Consultant conducts approximately 70 one-half hour desk or field audit interviews with employees and department heads [40 hours] , The consultant reviews all job documentation [PDQ's and class specifications] with the Project Coordinator to assure it is accurate and complete [2 hours]. SERVICES 1280 Kent Wheaton, IL 60187 16301 653-1361 FAX [630] 752-8751 ACTIVITY I11 EVALUATING QUANTITATIVE JOB ELEMENTS - A. The City provides CPMS with completed, reviewed and signed job documents for use in the job evaluation process; B. The Consultant evaluates all union positions using the JOB ELEMENT METHOD OF POSITION ANALYSIS to assign points and rank each, providing a full day of training for the Mayor, Project Coordinator, department heads and designated bargaining unit representatives in all aspects of the process [24 hours] , C. Final job element point totals are quality controlled by the Consultant assuring each department head and each bargaining unit has provided input into the final point total ranlunzs for jobs in their respective areas [8 hrs] , and D. The Project Coordinator assures that all key policy makers review all point totals and r&gs prior to finalizing results. ACTMTY IV INTERNAL EQUITY ANALYSIS - A. The Project Coordinator assembles current actual wage data for all 70 union positions and CPMS matches these with each employee's job evaluation point totals; B. The Consultant conducts an analysis of wagelpoint data for the union positions, calculating out of the data, a current wage practice tine for all union employees, by bargaining unit [3 hours]; C. Using linear regression analysis results, the Consultant prepares one set of scattergrams for each bargaining unit, visually depicting the internal equity patterns for all union positions [3 hours]; and D. Using the data derived from B & C above, the Consultant prepares a pay chart depicting existing current wage practice line relationships between union positions in different bargaining units and between union and non-union classifications [8 hours]. ACTMTY VANALYSIS OF PAY SYSTEM MECHANICS - A. The consultant and the Project Coordinator jointly examine the process used for gathering external market survey data, for developing annual pay policies in comparison to the survey base and for setting new pay policies [2 hours] , 0 B. CMPS, the Mayor & Union stewards a9ee on which WI cities to include in the survey; C. CPMS conducts a survey of the Wisconsin municipal job market for twenty-five benchmark sample union jobs, analyzing the results [ 16 hours]; COMMONWEALTH PERSONNEL MANAGEMENT SERVICES 1280 Kent Wheaton, IL 60187 [630] 653-1361 FAX 16301 752-8751 D. CPMS and the Project Coordinator jointly examine the contract process used for mahg decisions about the pay plan's structure (i,e., range width, open range schedules vs. gradeistep tables, percentage difference between ranges, etc.) [2 hours] , E. CPMS examines the process used for makmg decisions about movement of individual employes from the range minimum to maximum, including recommendations about progression beyond range maximum for those who have topped out in a range [2 hours] , F CPMS, bargaining unit representatives and the Project Coordinator jointly explore the options available to the City for changing the overall process, including for changing the market measurement and wage policy development process, the pay plan structuring process and/or position classLfcationireclassification process [8 hours] , ACTIVITY VI DEVELOPING PAY PLAN PROPOSALS - A. CPMS then uses the decisions arrived at in A through D above to calculate a new pay range assi-rmment, for each union position, which includes determining where [within the ranges set by misting contracts] each individual employee should be placed [3 hours]; 0 E. CPMS applies the cumulative information contained in this Activity to estimate a cost for implementing the results of the preferred recommendation and the costs for implementing one alternative recommendation [4 hours]; C. A formal report is prepared of all findings, methods, procedures, and study results including action recommendations to the City Administrator and City Council [ 16 hours] D. One presentation of our methods, procedures and findings is made to the City Council in a nvo- hour workshop session and, if required, one formal presentation is made in an open public meeting of the Council [3 hours]. a COMMONWEALTH PERSONNEL MANAGEMENT SERVICES 1280 Kent Wheaton, IL 60187 (6301 653-1361 FAX (630) 752-8751 SCHEDULE OF KEY STUDY ACTIVITIES PROJECT WEEKS W Present &Report on Findings A.c, noted above, the major activities are planned to meet with the anticipated twelve week schedule of activities. This projected work plan will be adhered to provided the City can meet the schedule agreed upon with CPMS and the Mayor. A twelve week implementation projection would be consistent with the need to assure key management and employee groups are brought into concurrence with the various stages of hs process. Complex problems are rarely effectively addressed with simple solutions. .I\ process that is designed to deal with both classlfication and pay problems, needs sufficient time to assure the small, but important detruls of implementation, are properly worked out. D COMMONWEALTH PERSONNEL MANAGEMENT SERVICES 1280 Kent Wheaton, IL 60187 [630] 653-1361 FAX 16301 752-8751 IV. ADMINISTRATIVE CONSIDERATIONS About the Firm: The CPMS President, Mr. Barton R. Gethmann, is the individual who is authorized to represent Commonwealth Personnel Manaeement Services. He can be reached at the number appearing in our letterhead. - Qualifications: Commonwealth Personnel Managemenr Services is a small, experienced, and professional management consulting fm that specializes in solving public sector compensation problems. Our practice concentrates on position classlfication, job evaluation, and wage admmistration studies and on the motivational compensatiodperfomance management process. Because of our extensive experience in state & local government consulting, we are a growmg fm servlng a nationwide clientele. CPMS was frst founded in Harrisburg, P.4 in 1979. We are an owner operated management consulting fm (sole proprietorslup). Since 1986, our office has been located in Wheaton. IL. Public Sector Experience - Between 1986 and the present our fm has conducted fifty-five public sector classification and pay or performance management and evaluation consulting engagements, including the study we just completed of the City of Muskego’s exempt employees’ job content evaluation, position classlfication and salaly administration mues CPMS ascribes to the principles of Equal Opportunity Employment and Fair Employment Practices. Past Performance - - Some of Mr. Gethmann’s present or former clients include: Cip of Muskeso: Wl City of Beloit, WI City of Racine, WI Kenosha Unified School Dist. No. 1, Kenosha, w1 City of Mequon, WI Weyenberg Public Library, Mequon, WI City of Sandusk, OH City of Elmhurst, L Green Bay Metro Senerge Dist. Green Bay: WI Madison Meuo Senerage Dist., Madison, WT Milwauke: County Gow-nment: Miln-aukee. WI Walworrh Counh Government: Elkhom W City of Portage, MI Kalamazoo County Government, Kalamazoo, MI Lakeland Library Cooperative, Grand Rapids, MI 1 Lake Counv SherEs Dept, Waukezm, L I I Professionalism of Our Practice: CPMS ascribes to the principles of Equal Opportunity Employment and Fair Employment Practices. We do not discriminate agamst anyone based on race, color, creed, religion, sex, disabling condition, country of national origin, marital status or any other merit factor. We take affirmative action in accordance with the provisions of the 1964 and 1991 Civil Rghts Acts, as amended, and we provide a harassment- fiee work environment for the full realization of the di-gnity and potential of each individual. COMMONWEALTH PERSONNEL MANAGEMENT SERVICES 1280 Kent Wheaton, IL 60187 [630] 653-1361 FAX [630] 752-8751 CPMS also ascribes to the principles of ethlcs and integnty in dealing with and practicing in the public sector, as outlined in the International Personnel Management -4ssociation's "Code of Ethics" We further indicate that we have no financial or other conflict of interest in the City of Muskego, nor shall we acquire any interest, direct or indirect, whch would conflict in any manner or degree with the performance of services required under this proposal. We further assert that, in the performance of any obligation resulting from thls proposal, no person having any such "conflict of interest" shall be retained. At CPMS we strive to conduct all phases of rhe classrfication and pay study in a manner that lends itself to cooperation between employees, bargaining units and management. We believe that a cooperative process leads to the fairest, most objective solution to both job classlfication and compensation issues with represented employees. Our thrust is on in-house training of your people to make them competent to carry on and admuster our programs after we have completed a consulting engagement. At the same time, we are always available to help you and to assure you receive competent, professional guidance when problems develop that cannot be handled with in-house staff assistance. Because we are concerned with maintaining long term relationships with our clients, we are committed to gving you compensation systems that work -- and to providing you with the implementation assistance (including hted data processing help) you need to make them work for you. Qualifications of Professional Personnel - CPMS wtll staff the City of Muskego project with its President, Mr. Bart Gethmann, M.G.A., serving as the principal consultant Mr. Gethmann has thuty-one years of experience in the field of wage and salary ahstration and has conducted over 55 classfication and compensation studies in the public sector. He holds hs Master's Degree in Public Adnunistration from the Fels Institute of Better Government of the Wharton School of the University of Pennsylvania. His broad base of state, county and local government consulting experience in similar projects will make a si-dcant contribution to the quality of tlus engagement. Mr Gethmann WLLI personally conduct all of the on-site work with the City and will personally perform project management and client Liaison semces. Level of Involvement - The cost estimate summary sheet that follows the cost breakdowns that are included with this proposal also define, in detail, the exact number of hours to be spent by Mr. Gethmann, on each activity included in the Project Activities Plan. Project Timing & Duration - CPMS is prepared to commence the City of Muskego project within Seven working days of receiving notice to proceed and to complete all key project elements within 12 weeks, provided the City adheres to the schedule ageed upon between the Consultant and the city Administrator, 0 COMMONWEALTH PERSONNEL MANAGEMENT SERVICES 1280 Kent Wheaton, IL 60187 (6301 653-1361 FAX 16301 752-8751 Fedcharges For Services Rendered - Consulting fees are based on our best estimate of the time commitment and consultant support level reasonably required to deliver quality results. All our project consulting fees are set at $60 per hour for Mr. Gethmann's work. Consulting fees for work beyond the scope of the initial contract are set at $75 per hour. All out-of-pocket project related direct expenses (auto mileage, lodging, meals, and otber production expenses such as typing, graphics, report reproduction, special postage, telephone calls & fax charges, etc.) will be charged at cost. Our previous arrangement with the City, in which you may deduct 2%% of the total invoice amount if it is paid within ten days, will still apply. Our invoices are rendered at the be=&ng of the project, after the first month and at the end of the project, each invoice representing one-third of the project's total costs. We accept no responsibility for evenu and circumstances occurring after the date of our report [in other words, there needs to be a cut-off date after which we do not continually keep updating employee information that bas changed]. We do, however, provide all of the materials in the study report in MS Word 6.0 electronic files and all of the spreadsheet information about names, titles, wages, salaries, point total evaluations, etc., in electronic files for Excel. Should circumstances prevent the City from providing information or providing access to key individuals, our timetables will be affected and our fee schedule may be impacted. If at any time you find it necessary or desirable to terminate service, you are Free to do so and are only obliged to pay fees and expenses incurred to that point. PROJECT BUDGET - The entire proposal will cost as follows: The consulting fees for conducting a union compensation system audit of all 70 union positions will not exceed $9,420 (Ninety-four hundred twenty dollars), while expenses will not exceed $1,780 (Seventeen hundred eighty dollars) for a not-to-exceed cost of $11,200. CPMS guarantees the City of Muskego that its quoted prices are valid and will remain in effect for a 90 day period. Please contact Mr. Gethmann (at the above listed telephone number) with any questions concerning the content of this proposal. The signature and date below affirms our company's offer. April 18, 1998 Barton R. Gethmann, M.G.A.