1833ORDINANCE NO. I$33
AN ORDINANCE TO WAIVE COMPETITIVE BIDDING AND TO
APPROVE A CONTRACT WITH HAY MANAGEMENT CONSULTANTS
FOR A COMPENSATION STUDY FOR EMPLOYEES OF THE CITY OF
WEST MEMPHIS, AND FOR OTHER PURPOSES.
WHEREAS, the Personnel Task Force has recommended that a study be performed to
review the compensation and benefits provided to all employees of the City of West Memphis;
and
WHEREAS, the Personnel Task Force has met with representatives of Hay Management
Consultants and reviewed their proposal and examined alternatives and recommends that the
study be performed by Hay Management Consultants; and
WHEREAS, it would not be feasible or practical to conduct competitive bidding for such
study due to different approaches and processes used;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF WEST MEMPHIS, ARKANSAS, THAT:
SECTION 1. Competitive bidding is hereby waived for the following item to be used by
the City of West Memphis: A study of the compensation and benefits provided to all employees of
the City of West Memphis, Arkansas, to be performed by Hay Management Consultants at an
approximate cost of $61,100 and expenses.
SECTION 2. The agreement between the City of West Memphis, Arkansas, and Hay
Management Consultants for a compensation and benefits study is hereby approved and the
Mayor and City Clerk are hereby authorized and directed to execute said agreement on behalf of
the City of West Memphis.
SECTION 3. All ordinances or parts of ordinances in conflict herewith are hereby
repealed to the extent of such conflict.
PASSED AND APPROVED this 6~ day of ~trti ~~' , 1998.
V:d-ff~
AL BOALS, MAYOR
ATTEST:
DAN CRAFT Y E
SPONSORED BY:
~~
RECEIVED
CITY CLERK OFFICE
y:,.
Hay Management Consultants
- North Central Plaza Three
12801 North Central Expressway
Suite 1000
Dallas, TX 75243-1731
Tel: (972) 934-6800
Fax: (972) 458-6986
April 8, 1998
Confidential
Mr. Larry T. Jones
Hay Director -Department of Planning & Development
Management City of West Memphis
Consultants 205 South Redding
~,, West Memphis , AR 72303
Dear Larry:
We are delighted that the City of West Memphis has agreed to move forward on the
compensation study that we have been discussing over the past several weeks. This
letter and attachment will serve as our letter of agreement. The attached document,
labeled City of West Memphis -Recommended Approach, and dated April 8, 1998,
provides the outline of the scope of work to be completed.
We understand that the process steps and deliverables meet those requested by the
City.
Project Timetable and Costs
The project, as proposed, will be completed within five months following the
project kick-off date.
Our fees are based on our best estimate of the level of consulting skills and
expertise required to complete the project. We estimate the fees for the project to
be $62,000 including a standard 12% administrative fee. All out-of-pocket or
project related expenses (travel, meals, lodging, special data reports, graphics,
report reproduction, computer or word processing, special postage, secretarial
overtime, etc.) will be charged at cost or normal labor rate.
Invoices are rendered semi-monthly for the work and expenses incurred the
previous billing period. Payment is due 10 days from receipt of the invoice.
If, at any time during the course of the assignment, you find it necessary or
desirable to terminate our services, you are quite free to do so and are only
obligated to pay fees and expenses up to that point.
~~ `~1 "~
Mr. Larry T. Jones
Apri18, 1998
Page 2
Please feel free to call either of us if you wish to discuss in greater detail. We look
forward to working with you.
Sincer ,
Derrick Mee
Director of Consulting Services
~(~fi~
Paul Glogowski
Consultant
If you are in agreement with the proposed scope of work and fees, please
countersign and return a copy of this proposal to our attention.
City of West Memphis
By:
Date
HayC~oup
City of West Memphis
Recommended Approach
Project Phase Alternatives Estimated
'
- Fees~
~
Phase 1 -Project Planning None $4,500
• Data Gathering with HR
• Individual Interviews with
Executive Leadership
Phase 2 -Job Documentation Alternative 1 Alternative 1
• Developing Hay consultants develop questionnaires to be used as $11,800
Questionnaires the tool to collect job content information for all jobs in
• Preparing/Completing Job the City.
Descriptions and
Questionnaires Hay Consultants conduct all or a majority of the
• Conducting Employee employee meetings to ensure consistent communication
Meetings and take burden of work off limited HR staff .
Alternative ? Alternative 2
Phase 3 -Job Evaluation
Hay methodology used to Hay consultants evaluate all City jobs and Committee 514,000
provide an internal ranking of reviews and audits as required
all jobs
rnative 1
Alt Alternative 1
Phase 4 -Compensation e
Structure & Pay Analysis and structure development covers base salary $25,800
• Internal Analysis only
• External Analysis "
• Structure Development
• Salary Administration
• Presentation to City
Benefit Analysis Alternative 2 Alternative 2
Allow Hay to do a `Desk Audit' of your current $5,000
benefits. This report would give you our perspective as
to how your benefits practices compare with that of the
going trends in industry.
Total -Compensation Design $56,100
Benefit Analysis $5,000
TOTAL $61,100
Note: (1) Fees do not include expenses.