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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/19/2013 - RESOLUTION 2013-021 APPROVING AN INTERGOVERNMENTALDATE: March 19, 2013 STAFF: Steve Catanach AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 20 SUBJECT Resolution 2013-021 Approving an Intergovernmental Agreement Between the City of Fort Collins, Platte River Power Authority, the Town of Estes Park, the City of Loveland and the City of Longmont for Participation in a Joint Compensation Study. EXECUTIVE SUMMARY Fort Collins Utilities Light & Power is partnering with Platte River Power Authority, the Town of Estes Park, the City of Loveland, and the City of Longmont in hiring a consultant to perform a comprehensive compensation study for certain power utility positions. The results of this study will provide valuable market analysis, furthering the efforts to attract and retain key positions within the electric industry. BACKGROUND / DISCUSSION The Cities, and the Platte River Power Authority (PRPA) Board of Directors have agreed that PRPA is the appropriate entity to coordinate a compensation study for the municipalities. The purpose of the study is to provide consistent and verifiable compensation information to the individual municipalities to allow each to attract, recruit and retain employees with the skills necessary to operate an electric distribution system. The Cities recognize the efficiency and value of an organized and consistent study. Recent loss of specialized electric employees, in Longmont, Loveland and Fort Collins, and the subsequent difficulty replacing the positions, along with indirect and secondary information related to compensation levels at other utilities initiated a desire to conduct a compensation study specifically related to electric distribution positions. FINANCIAL / ECONOMIC IMPACTS The Intergovernmental Agreement (IGA) authorizes PRPA to contract for and coordinate the compensation study. In the IGA, the Cities agree to reimburse PRPA for amounts paid to the consultant conducting the study which is estimated at $50,000. Individual City responsibility is calculated using the following methodology: (1) one half of the actual costs will be split evenly between the Cities; and (2) one half of the actual costs will be apportioned between the Cities in proportion to energy sales from PRPA to each City during 2012. The total of actual costs will not exceed $50,000, absent approved modification. The cost for the City of Fort Collins is not to exceed $18,066. The study could result in a recommendation for the adjustment of salaries. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. RESOLUTION 2013-021 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF FORT COLLINS, PLATTE RIVER POWER AUTHORITY, THE TOWN OF ESTES PARK, THE CITY OF LOVELAND AND THE CITY OF LONGMONT FOR PARTICIPATION IN A JOINT COMPENSATION STUDY WHEREAS, Platte River Power Authority (“PRPA”) was formed by contract among the City of Fort Collins, the Town of Estes Park, the City of Longmont, and the City of Loveland (the “Municipalities”) to provide electric generation and transmission services and other related functions to benefit the Municipalities, pursuant to C.R.S. Section 29-1-204; and WHEREAS, the Municipalities operate electric distribution systems providing retail utility service to customers within their municipal boundaries and service territories; and WHEREAS, in order to attract and maintain employees with the unique skills necessary to manage and operate retail electric distribution systems, the Municipalities have a common need for reliable data reflecting the compensation levels offered by utilities with which the Municipalities compete for employees; and WHEREAS, some of the necessary compensation data is of common use to the Municipalities, but some of the information needed may be useful only to a subset of the Municipalities; and WHEREAS, there are economies of scale in conducting one comprehensive compensation study that addresses both the common needs and the unique needs of the Municipalities for compensation information; and WHEREAS, City staff and the other Municipalities believe that a compensation study of this nature and magnitude would best be performed by a third party with expertise in this type of research; and WHEREAS, PRPA is willing to coordinate the compensation study for the benefit of the Municipalities provided it is reimbursed the costs incurred in retaining a third party consultant to conduct the research; and WHEREAS, Article II, Section 16 of the City Charter of the City empowers the City Council, by ordinance or resolution, to enter into contracts with other governmental bodies to furnish governmental services and make charges for such services or enter into cooperative or joint activities with other governmental bodies. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the Mayor is hereby authorized to execute an Intergovernmental Agreement for the Funding and Coordinating of a Joint Compensation Study between PRPA and the Municipalities in substantially the form attached hereto as Exhibit “A”, with such additional terms and conditions as the City Manager, in consultation with the City Attorney, determines to be necessary and appropriate to protect the interests of the City or effectuate the purpose of this Resolution. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 19th day of March, A.D. 2013. Mayor ATTEST: City Clerk Intergovernmental Agreement for the Funding and 01/30/2013 Coordination of a Joint Compensation Study Page 1 of 5 INTERGOVERNMENTAL AGREEMENT FOR THE FUNDING AND COORDINATION OF A JOINT COMPENSATION STUDY This Agreement is made and entered on the day of , 2013, by and between Platte River Power Authority, a Colorado political subdivision (Platte River), the Town of Estes Park, (Estes Park), the City of Fort Collins, a Colorado municipal corporation (Fort Collins), the City of Longmont, a Colorado municipal corporation (Longmont), and the City of Loveland, a Colorado municipal corporation (Loveland). The listed municipalities may be referred to collectively as “Municipalities”. RECITALS a. Platte River was formed by contract among the Municipalities pursuant to C.R.S. § 29-1-204 to provide electric generation and transmission services and other related functions of benefit to the Municipalities. b. The Municipalities operate electric distribution systems providing retail utility service to customers within their municipal boundaries and service territories. c. In order to attract and maintain employees with the unique skills necessary to manage and operate retail electric distribution systems, the Municipalities have a common need for reliable data reflecting the compensation levels offered by utilities with whom the Municipalities compete for employees. d. Some of the necessary compensation data is of common use to the Municipalities, but some of the information needed may be useful only to a subset of the Municipalities. e. There are economies of scale in conducting one comprehensive compensation study that addresses the common and unique needs of the Municipalities for compensation information. f. The Municipalities believe that a compensation study of this nature and magnitude would best be performed by a third party with expertise in this type of research. EXHIBIT A Intergovernmental Agreement for the Funding and 01/30/2013 Coordination of a Joint Compensation Study Page 2 of 5 g. The results of a compensation study related to electric distribution utility systems has no relevance to Platte River, but Platte River is willing to coordinate the compensation study for the benefit of the Municipalities provided it is reimbursed for the costs incurred in retaining a third party consultant to conduct the research. AGREEMENT 1) Platte River agrees to coordinate the performance of a joint compensation study for the benefit of the Municipalities. Coordination will include activities undertaken in conjunction with the Municipalities, including but not limited to, developing a mutually agreeable scope of work, bid solicitation and contracting with the consultant that will perform the joint compensation study. 2) The Municipalities agree to reimburse Platte River for amounts paid to the consultant under contract to perform the joint compensation study, such amounts to be calculated pursuant to Exhibit A. Platte River will bill each of the Municipalities separately, with payment due thirty (30) days after receipt of the billing. 3) Platte River will contract directly with the consultant chosen to complete the joint compensation study. It is anticipated that Platte River will contract with Strategic Staffing Placement LLC on a sole source basis. Under the Platte River Fiscal Resolution, competitive bids are unnecessary in this instance if the General Manager determines that Strategic Staffing Placement LLC will provide a specialized service for which a competitive bid process is not practicable or advantageous. Compensation of the consultant will be on an hourly basis plus expenses, capped at an amount not to exceed $50,000.00. If the contract cannot be completed for $50,000.00, Platte River will not be obligated to complete the study unless the Municipalities commit to provide sufficient additional funds through a modification of Exhibit A. Intergovernmental Agreement for the Funding and 01/30/2013 Coordination of a Joint Compensation Study Page 3 of 5 4) Platte River, after consultation with the Municipalities, may terminate the joint compensation study pursuant to the terms of its agreement with consultant. In the event that the joint compensation study is terminated prior to completion the Municipalities will be billed for the work completed, but in no event more than the amounts set forth in Exhibit A, and the Municipalities agree to pay the amounts billed. All work product and any intellectual property shall be provided to, and shall be the joint property of, the Municipalities. In the event of termination, Platte River will have no further obligations under this Agreement. 5) This Agreement is the entire agreement between Platte River and the Municipalities concerning the joint compensation study and shall be modified only by written instrument approved by the governing bodies of the Municipalities and Platte River. 6) All of the Municipalities’ financial obligations under this Agreement are contingent upon appropriation, budgeting, and availability of specific funds to discharge those obligations. Nothing in this Agreement constitutes a debt, a direct or indirect multiple fiscal year financial obligation, or a pledge of the Municipalities’ credit. 7) Platte River agrees to manage, and require the consultant to carry out, the joint compensation study in accordance with all applicable legal requirements. IN WITNESS WHEREOF, the Parties have caused this Agreement, to be executed the day and year first above written. PLATTE RIVER POWER AUTHORITY ATTEST: By: By: General Manager Secretary TOWN OF ESTES PARK, COLORADO ATTEST: Intergovernmental Agreement for the Funding and 01/30/2013 Coordination of a Joint Compensation Study Page 4 of 5 By: By: Mayor Town Clerk CITY OF FORT COLLINS, COLORADO ATTEST: By: By: Mayor City Clerk APPROVED AS TO FORM: By: Deputy City Attorney CITY OF LOVELAND, COLORADO ATTEST: By: By: City Manager City Clerk APPROVED AS TO FORM: By: Assistant City Attorney CITY OF LONGMONT, COLORADO ATTEST: By: By: Mayor City Clerk APPROVED AS TO FORM AND SUBSTANCE: Director of Longmont Power & Communications Intergovernmental Agreement for the Funding and 01/30/2013 Coordination of a Joint Compensation Study Page 5 of 5 APPROVED AS TO FORM: Assistant City Attorney PROOFREAD: EXHIBIT A The actual costs of retaining an independent consultant to perform the Joint Compensation Study will be split between the Municipalities according to the following formula: 1) one half of the actual costs will be split evenly between the Municipalities; and 2) one half of the actual costs will be apportioned between the Municipalities in proportion to energy sales from Platte River to each Municipality during 2012. The total of actual costs will not exceed $50,000.00 absent written modification of this Exhibit A. Attached is an example of the cost responsibility for all of the Municipalities based on the actual costs of the Joint Compensation Study being $50,000. PLATTE RIVER POWER AUTHORITY 2013 Compensation Study Allocation Shared with Municipalities (Costs Share 1/2 Equally and 1/2 Based on 2012 MWh Sales) % OF TOTAL 1/2 ALLOCATED 1/2 ALLOCATED 2012 ENERGY MUNICIPAL BASED ON 2012 TOTAL EQUALLY SALES (MWH) SALES SALES Allocation ESTES PARK $ 6,250 126,889 3.975% $ 994 $ 7,244 FORT COLLINS 6,250 1,508,735 47.263% 11,816 18,066 LONGMONT 6,250 813,675 25.489% 6,372 12,622 LOVELAND 6,250 742,919 23.273% 5,818 12,068 TOTAL $ 25,000 3,192,218 100.000% $ 25,000 $ 50,000 Costs Based on $50,000 Estimate