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HomeMy WebLinkAbout392896 FOX LAWSON - CONTRACT - RFP - P1014 PAY FOR PERFORMANCEPROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT made and entered into the day and year set forth below, by and between THE CITY OF FORT COLLINS, COLORADO, a Municipal Corporation, hereinafter referred to as the "City" and Fox Lawson & Associates, LLC hereinafter referred to as "Professional'. WITNESSETH: In consideration of the mutual covenants and obligations herein expressed, it is agreed by and between the parties hereto as follows: 1. Scone of Services. The Professional agrees to provide services in accordance with the scope of services attached hereto as Exhibit "A", consisting of four (4) pages, and incorporated herein by this reference. 2. The Work Schedule. The services to be performed pursuant to this Agreement shall be performed in accordance with the Work Schedule attached hereto as Exhibit "B", consisting of two (2) pages, and incorporated herein by this reference. 3. Time of Commencement and Completion of Services. The services to be performed pursuant to this Agreement shall be initiated within five (5) days following execution of this Agreement. Services shall be completed no later than January 31, 2007. Time is of the essence. Any extensions of the time limit set forth above must be agreed upon in writing by the parties hereto. 4. Early Termination by City. Notwithstanding the time periods contained herein, the City may terminate this Agreement at any time without cause by providing written notice of termination to the Professional. Such notice shall be delivered at least fifteen (15) days prior to the termination date contained in said notice unless otherwise agreed in writing by the parties. All notices provided under this Agreement shall be effective when mailed, postage prepaid and sent to the following addresses: EXHIBIT "B: Work Schedule TAMv Task I Project Initiation Task II Develop Performance Criteria & Forms Task Link Performance to Pay III Task Performance Management I IV Training Task V I Evaluate PFP System 10 EXHIBIT "C" FEE SCHEDULE Fees to provide the services outlined in the proposal (including out of pocket expenses and travel time) will not exceed $48,500. TASK DESCRIPTION FEES Task I: Initiate the Project $ 6,000 Task II: Develop Performance Criteria and Forms $ 20,000 Task III: Link Performance to Pay $ 10,000 Task IV: Conduct Training $ 7,500 Task V: Evaluate PFP System $ 5,000 TOTAL FEES: $48, 500 Our study costs are directly derived from estimating the number of hours needed to perform the work and the level of consultant charged with the work. Fox Lawson typically bills on a monthly basis up to the maximum of each deliverable. We would be pleased to discuss ways in which the cost could be reduced should you believe that certain tasks are not needed or could be performed by the City's staff. City Support In order to accomplish this project, we anticipate reasonable support from the City's staff in the following areas: • Timely provision of information as needed throughout the project. • Scheduling of meetings and training activities. • Timely response to questions for information and the review and discussion of our work product. For work beyond that specified in this proposal, additional fees and out of pocket expenses will be involved. We are available for discussion if the study requires additional services beyond the scope contained in the proposal. Following are the hourly billing rates by type and level of staff normally used for additional work: Level Rate Partner $305 Senior Consultant $175 to $205 Consultant $140 Para -Professional $80 11 ACORD CERTIFICATE OF LIABILITY INSURANCE OP ID 14 DATE(MMIDDIYYYY) FOXLA-1 06 09 06 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE FBL Insurance Brokerage, LLC HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR 2627 KFB Plaza ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Manhattan KS 66505 Phone:785-587-6000 Fax:785-587-6886 INSURERS AFFORDING COVERAGE NAIC# INSURED INSURER A: Colony Insurance Company Fox, Lawson & Associates, Inc. INSURER B: Houston Casulaty Company PO Box 32985 INSURER C: Phoenix AZ 85064 INSURER D: INSURER E: THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS, LTR INSR TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE DATE MM/DDIYY POLICY EXPIRATION DATE MM/DDlYY LIMITS GENERAL LIABILITY EACH OCCURRENCE $ 1,000,000 A X COMMERCIAL GENERAL LIABILITY CLAIMS MADE FE OCCUR OL3199868 12/15/05 12/15/06 rURERU PREMISES(Eaoccurence) $ 100,000 MED EXP(Any one person) $ 5,000 PERSONAL B ADV INJURY $EXCLUDED GENERAL AGGREGATE $ 2, 000, 0 D 0 GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP/OP AGG $ INCLUDED JECT LOC X I POLICY JECT AUTOMOBILE LIABILITY ANY AUTO ) COMBINED SINGLE LIMIT (Eaccident) $ 1,000,000 ALL OWNED AUTOS SCHEDULED AUTOS BODILY INJURY (Per pen,on) A X HIRED AUTOS X NON -OWNED AUTOS GL3199868 12/15/05 12/15/06 BODILY INJURY (Per accident) $ PROPERTY DAMAGE (Per accident) $ GARAGE LIABILITY AUTO ONLY - EA ACCIDENT $ ANY AUTO OTHER THAN EA ACC $ $ AUTO ONLY: AGO EXCESS/UMBRELLA LIABILITY OCCUR ❑ CLAIMS MADE EACH OCCURRENCE $ AGGREGATE $ $ DEDUCTIBLE RETENTION $ $ WORKERS COMPENSATION AND EMPLOYERS' LIABILITY TORYLIMITS I I ER E.L. EACH ACCIDENT $ ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? If yes, describe under E.L. DISEASE - EA EMPLOYEE $ E.L. DISEASE -POLICY LIMIT $ SPECIAL PROVISIONS below OTHER B Professional H70517718 12/15/05 12/15/06 AGG/OCC $1,000,000 Liability DESCRIPTION OF OPERATIONS / LOCATIONS 1 VEHICLES/ EXCLUSIONS ADDED BY ENDORSEMENT 1 SPECIAL PROVISIONS Hired and Non -Owned Coverage is Included in the General Liability policy. The Certificate Holder is listed as an Additional Insured on the General Liability policy only per Blanket A.I. endorsement (U156-0702). SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION City Of Fort Collins DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 10 DAYS WRITTEN C/O James O'Neill II, CPPO, FNIGP NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO$HALL Director of Purchasing and Risk Management PO Box 580 IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. r yo, Fort Collins CO 80521 11,J//1.B AUTHORIZED REPRESENTATIVE 'onwi.,,.,.. �we:u.oc�•us r�e.emm IMPORTANT If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon. 25 Professional: City: With Copy to: Fox Lawson & Associates, LLC City of Fort Collins City of Fort Collins Attn Partner: Bruce Lawson, Attn: Janet Miller Attn: Purchasing CCP, IPMA-CP PO Box 580 PO Box 580 PO Box 32985 Fort Collins, CO 80522 Fort Collins, CO 80522 Phoenix, AZ 85064-2985 In the event of any such early termination by the City, the Professional shall be paid for services rendered prior to the date of termination, subject only to the satisfactory performance of the Professional's obligations under this Agreement. Such payment shall be the Professional's sole right and remedy for such termination. 5. Desion. Project Indemnity and Insurance Responsibility. The Professional shall be responsible for the professional quality, technical accuracy, timely completion and the coordination of all services rendered by the Professional, including but not limited to designs, plans, reports, specifications, and drawings and shall, without additional compensation, promptly remedy and correct any errors, omissions, or other deficiencies. The Professional shall indemnify, save and hold harmless the City, its officers and employees in accordance with Colorado law, from all damages whatsoever claimed by third parties against the City; and for the City's costs and reasonable attorneys fees, arising directly or indirectly out of the Professional's negligent performance of any of the services furnished under this Agreement. The Professional shall maintain commercial general liability insurance in the amount of $500,000 combined single limits, and errors and omissions insurance in the amount of N/A. 6. Compensation. In consideration of the services to be performed pursuant to this Agreement, the City agrees to pay Professional on a time and reimbursable direct cost basis with maximum compensation (for both Professional's time and reimbursable direct costs) not to exceed Forty Eight Thousand Five Hundred ($48,500) in accordance with the fee schedule attached hereto as Exhibit "C", consisting of one (1) page, and incorporated herein by this reference. Monthly partial payments based upon the Professional's billings and itemized statements of reimbursable direct costs are permissible. The amounts of all such partial payments shall be based upon the Professional's City -verified progress in completing the services to be performed pursuant hereto and upon the City's approval of the Professional's reimbursable direct costs. Final payment shall be made following acceptance of the work by the City. Upon final payment, all designs, plans, reports, specifications, drawings and other services rendered by the Professional shall become the sole property of the City. 7. City Representative. The City will designate, prior to commencement of work, its project representative who shall make, within the scope of his or her authority, all necessary and proper decisions with reference to the project. All requests for contract interpretations, change orders, and other clarification or instruction shall be directed to the City Representative. B. Monthly Report. Commencing thirty (30) days after the date of execution of this Agreement and every thirty (30) days thereafter, Professional is required to provide the City Representative with a written report of the status of the work with respect to the Scope of Services, Work Schedule, and other material information. Failure to provide any required monthly report may, at the option of the City, suspend the processing of any partial payment request. 9. Independent Contractor. The services to be performed by Professional are those of an independent contractor and not of an employee of the City of Fort Collins. The City shall not be responsible for withholding any portion of Professional's compensation hereunder for the payment of FICA, Workers' Compensation, other taxes or benefits or for any other purpose. 10. Personal Services. It is understood that the City enters into this Agreement based on the special abilities of the Professional and that this Agreement shall be considered as an agreement for personal services. Accordingly, the 3 Professional shall neither assign any responsibilities nor delegate any duties arising under this Agreement without the prior written consent of the City. 11. Acceptance Not Waiver. The City's approval of drawings, designs, plans, specifications, reports, and incidental work or materials furnished hereunder shall not in any way relieve the Professional of responsibility for the quality or technical accuracy of the work. The City's approval or acceptance of, or payment for, any of the services shall not be construed to operate as a waiver of any rights or benefits provided to the City under this Agreement. 12. Default. Each and every term and condition hereof shall be deemed to be a material element of this Agreement. In the event either party should fail or refuse to perform according to the terms of this agreement, such party may be declared in default. 13. Remedies. In the event a party has been declared in default, such defaulting party shall be allowed a period of ten (10) days within which to cure said default. In the event the default remains uncorrected, the party declaring default may elect to (a) terminate the Agreement and seek damages; (b) treat the Agreement as continuing and require specific performance; or (c) avail himself of any other remedy at law or equity. If the non -defaulting party commences legal or equitable actions against the defaulting party, the defaulting party shall be liable to the non -defaulting party for the non -defaulting party's reasonable attorney fees and costs incurred because of the default. 14. Bindina Effect. This writing, together with the exhibits hereto, constitutes the entire agreement between the parties and shall be binding upon said parties, their officers, employees, agents and assigns and shall inure to the benefit of the respective survivors, heirs, personal representatives, successors and assigns of said parties. 15. Law/Severability. The laws of the State of Colorado shall govern the construction, interpretation, execution and enforcement of this Agreement. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of 4 competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision of this Agreement. THE CITY OF FORT COLLINS, COLORADO By. mes B. O'Neill II, CPPO, FNIGP Direc of Purchasing & Risk Management DATE: J�- Fox Lawson ciates LLC Title: WeWf)'-QiAJ-1— CORPORATE PRESIDENT OR VICE PRESIDENT Date: 06 ATTEST: (Corporate Seal) Corporate Secretary 5 EXHIBIT 'W' SCOPE OF WORK Backaround and Obiectives The City of Fort Collins (City) is interested in developing an employee pay for performance system that will fairly and accurately assess employee performance and provide a basis for linking performance to pay. The City desires a system for rewarding excellent performance and holding employees accountable for poor performance. It is our understanding that the City is a full service municipal organization that employs approximately 1,400 people broken into five categories: Classified, Unclassified Management, Contractual, Hourly with No Benefits, and Hourly with Benefits. The City currently provides merit increases ranging from 04% of base pay to its Classified and Unclassified Management employees who demonstrate acceptable performance. (A wage freeze from 2003 to 2005 impacted pay increases for most positions.) Contractual and Hourly employees are eligible for consideration for pay increases based on performance, department budget, internal equity and the market value of the job. In 2004 and 2005, the City began taking steps toward the implementation of a PFP system including defining performance criteria and piloting an on-line performance evaluation form to standardize the way supervisors evaluate employees across the organization. The City is requesting proposals for a vendor to provide consulting services for the design, development and implementation of a PFP system that provides a link between employee performance and compensation and supports the City's broader mission, business goals, and organizational values. The benefits of our assistance will be: ➢ Confirmation of the City's compensation philosophy and strategies, including linkage of compensation to performance. ➢ Review and revision of the City's performance management system, including appraisal forms, processes and communication. ➢ Development of appropriate transition plans to move form the old system to the new system including the integration of the market relationship. ➢ Development of compensation administration guidelines to ensure the new system maintains its integrity in the future. ➢ Training for managers and human resources staff in the application and maintenance of the new system. ➢ Employee training and communication in the application of the new processes. Our objective is to work together with the City, utilizing our combined experience, knowledge and insight, to develop quality results that meet your unique circumstances and needs while at the same time remaining independent and objective. Cam? Work Plan Performance management systems often get the reputation for being ineffective, or have a stigma attached to them. Because the culture of each organization is unique, the specific performance evaluation system or process will, of necessity, vary in order to meet the needs of the specific organization. Simply stated, one size does not fit all. Our work plan outlines the process that we will follow in order to achieve your stated objectives. Task I: Initiate the Project Task II: Develop Performance Criteria and Forms Task III: Link Performance to Pay Task IV: Conduct Training Task V: Evaluate the PFP System Specific tasks and subtasks are described in the remainder of this section. m�"i•': i t t i Task I: Initiate Project (First On -Site Visit) ➢ During our initial on -site visit, we will conduct a project -planning meeting. Attendees at this meeting would include the City Manager, Department of Human Resources Director and project staff, and the City's Executive Leadership Team. During this meeting we will discuss and confirm the City's compensation philosophy, the background and scope of the project, the project schedule, a communication plan, and the expected outcomes. The outcome of this meeting will be the success indicators for the project. ➢ During this initial meeting, we will discuss the City's current performance evaluation system and processes, as well as the strengths and weaknesses of the existing system. ➢ Many performance evaluation systems used in the public sector lack significant impact on the organization because they are not linked to expectations of behavior, competencies, or performance outcomes that the City's vision and the Council's priorities are most concerned about. We will discuss the City's mission, values, and key business goals as well as how employees contribute to the City's success. ➢ We will examine the various approaches to performance evaluation systems. Systems will include: 360-degree feedback, behaviorally anchored rating scales, management by objective, forced ranking, checklist, hybrid, etc. We will work with the Project Steering Committee in selecting the most appropriate system. 7 ➢ In this phase, Fox Lawson & Associates will develop, with the assistance of the Project Steering Committee, new performance criteria and goal requirements. We will begin by assisting in determining different occupational groups that will require different performance criteria and goal requirements (e.g. Professional, Executive Management). ➢ We will conduct an assessment of the organization's culture, needs and desired direction of our focus on specific issues. Fox Lawson's preliminary impressions will be based on a document review and interviews with representatives from the predetermined occupational groups in order to identify new performance criteria and goals. Task II: Develop ➢ New forms and procedures will be developed which allow for both Performance Criteria quantitative and qualitative criteria. Fox Lawson & Associates will and Forms develop the forms and procedures that will be used to document (Second on -site visit) performance information. The form(s) will include information regarding performance planning, performance monitoring and performance review. ➢ Because it is important to ensure consistency and fair treatment across departments, procedures will be developed to make sure the ratings from one department will mean the same as the ratings from another department. ➢ In conjunction with the Human Resources Department, we will provide employee communications and opportunities for involvement throughout the process, including communicating the employee's role in the performance management process and expected outcomes. ➢ We will develop administrative guidelines in accordance with the City's compensation program to ensure that employees are rewarded according to their performance (link to pay). There are several basic models that are available, and many combinations of these. They are: • Performance bonuses or lump sum performance pay Task III: • A combination of steps up to the midpoint and open ranges Link Performance to used thereafter Pay • A combination of timing of increases and continual skill enhancement • A combination of cost -of -living increases and merit pay based on a merit matrix • Forced ranking, where a pool of money is available for merit based on a percentage of base pay • Target competitive pay at 50t" percentile of market, all performance pay is base building H ➢ Based on the implementation plan developed, we will prepare Task IV: training material that will be used to train approximately 20 Conduct Supervisors and Managers. An alternative for your consideration Performance would be to "Train the Trainer." Under a "Train the Trainer" model, Management FLA will train City trainers who, in turn, will introduce the concept to Training — „Train the employees and managers and train them in how to conduct an Trainer" effective performance evaluation/goal setting process. These (Third On -Site Visit) materials can be used as refresher information for new managers or employees as required. You may also wish to consider a combination of the two approaches. ➢ Successful performance management systems require commitment and ownership by the Executive Leadership Team, an understanding of the need for flexibility in administering and allocating meaningful rewards consistent with budget constraints, and training, training and more training to ensure performance measures are applied Task V: consistently. Evaluate the PFP System ➢ We will work in conjunction with the Human Resources Department, Executive Leadership Team, and employees to evaluate the success of the PFP system following implementation. ➢ We will outline a methodology for monitoring on -going implementation status. FLA Deliverables: ➢ Performance criteria and definitions for differing levels of performance. ➢ Appraisal forms and procedures. ➢ Linkage of performance ratings to compensation. How the City Can Assess Our Performance: ➢ Our understanding of pay for performance principles and practices. ➢ The integrity of the plan of the plan that is developed. ➢ How well the City understands the options available. ➢ How our transition plan meets the needs and considers the culture of the City. M