HomeMy WebLinkAbout1998-01-27; City Council; Resolution 98-21f
I
I
:
1(
1’
12
1:
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
RESOLUTION NO. 98-21
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, RATIFYING THE EXTENSION AND
AMENDMENT NO. 2 TO THE AGREEMENT BETWEEN THE
CITY OF CARLSBAD AND WATSON WYATT & COMPANY
WHEREAS, the City Council has directed that there be a performance based
compensation system; and
WHEREAS, the City Council has directed staff and the consultant, Watson Wyatt
& Company, to design and develop a Performance Management & Compensation System
which:
0
e
0
0
Rewards high performance
Links pay to performance
Is market driven
Is a unique system for managers, separate and distinct from the
bargaining units
Gives the City Council control over bottom line costs and flexibility to
adjust to different economic situations
Makes good business sense; and
WHEREAS, the City and Contractor desire to extend the term of the agreement
dated February 24, 1997 for a period ending February 28,1999 with an option to extend the
contract for three (3) additional one (1) year periods; and
WHEREAS, the initial agreement, dated February 24, 1997 identified a scope of
work which included: overall project planning and management; a review of the existing
3
-
,
1
t
1
t
<
1(
11
12
15
14
15
16
17
18
19
20
21
22
23
24
25
26
27
20
Management Compensation and Benefits plan; further development of the performance
appraisal system; development of the linkage of pay and performance systems;
development of a communication strategy to introduce the revised systems to the
management employees; and implementation planning and training for affected employees;
and
WHEREAS, in Amendment No. 1 to the agreement, dated January 8,1998 the City
and Contractor increased the scope of work in several aspects of the initial agreement listed
above and per the City Council’s request, a market survey of the salary and benefits of
equivalent management positions in ten other municipalities was added; and due to the
increases in the scope of work, staff recommended that the training aspect of the initial
agreement be expanded and completed under a separate contract; and
WHEREAS, given the magnitude of the changes that were being recommended, the
Contractor has already provided services as requested beyond the scope of both the original
contract and Amendment No. 1, per the Council and the Leadership Team, in the areas of:
design, development and implementation of entirely new Performance Management and
Compensation systems, including the development of a market drive salary structure;
additional meetings to allow for the comprehensive review of the proposed new system by
the City Council and the Leadership Team; more comprehensive planning for the
implementation of the entirely new performance-based compensation system; the
development and implementation of a thorough communications plan to introduce the new
system to all affected employees; extensive communications strategies and materials
developed for presentation to the media and for public awareness of the new program;
Y
-F
r II
I
L
C
E
- I
E
s
1c
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
supplementary professional expertise in conducting a thorough analysis of the City sf
Carlsbad's proposed performance-based compensation plan relative to a plan recently
introduced by the County of San Diego.
WHEREAS, per the original proposal, the consultant charges 5% for administrative
expenses and charges out-of pocket expenses (travel, express mail, etc.) at cost and the
total expenses for this project are estimated at approximately 10% of professional fees; and
WHEREAS, funds were not appropriated for the additional scope of work, and a
supplemental scope of work and fee schedule have been negotiated and agreed to between
the parties hereto, as shown in the attached Extension and Amendment No. 2 to the
Agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
of Carlsbad as follows:
I. That the above recitations are true and correct.
2. That funds are available in the Human Resources Department FY
1997198 budget to pay for the cost of the expanded scope of work as previously provided
and to be provided in the future as described herein.
//I
///
I//
///
I//
# 1
,
1
i
t
1
E
E
1c
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
3. That the Mayor of the City of Carlsbad is authorized to sign the contract
between the City of Carlsbad and Watson Wyatt & Company.
PASSRED, APPROVED, AND ADOPTED at a regular meeting of the City
Council of the City of Carlsbad, California, on the 27th day of January , 1998, by the
following votes, to wit:
AYES: Council Members Lewis, Finnila, Nygaard, Kulchin, and Hall
ATTEST':
ALETHA L. CUTEkKRANZ, City derk
(Seal)
e
EXTENSION AND AMENDMENT NO. 2 TO AGREEMENT
This Amendment is entered into and effective as of the 19 day
of January , 1998, amending the agreement dated February 24, I997 by and
between the CITY OF CARLSBAD, a municipal corporation, hereinafter referred to as
"City", and WATSON WYATT 24 COMPANY, hereinafter referred to as, "Contractor" for
developing and implementing a revised performance-based management
compensation plan.
RECITALS
WHEREAS, the -City and Contractor desire to extend the term of the agreement
dated February 24, 1997 for a period ending February 28,1999 with an option to extend
the contract for three (3) additional one (1) year periods; and
WHEREAS, the initial agreement, dated February 24, 1997 identified a scope of
work which included overall project planning and management, a review of the current
. Management Compensation and Benefits plan, development of the performance
appraisal system, development of the linkage of pay and performance systems,
development of a communication strategy to introduce the new systems to the
management employees, and implementation planning and training for affected
employees; and
WHEREAS, in Amendment No. 1 to the agreement, dated January 8, 1998 the
City and Contractor increased the scope of work in several aspects of the initial
agreement listed above and per the City Council's request, a market survey of the
1 0/22/97
?'
~~
e a
salary and benefits of equivalent management positions in ten other municipalities was
added; and due to the increases in the scope of work, staff recommended that the
training aspect of the initial agreement be expanded and completed under a separate
contract; and
WHEREAS, Contractor has already provided services as requested beyond the
scope of both the original contract and Amendment No. 1 in the areas of overall project
planning and management, redesign of the current Compensation and Benefits plan,
development of the linkage between compensation and performance systems, and
design, development, and delivery of a communication strategy to introduce the new
systems to City management employees.
WHEREAS, per City Council and Leadership Team request, several additional
meetings were held to conduct comprehensive reviews of the proposed program,
extensive communication strategies and materials were developed for presentation to
the media and for public awareness of the program, and more extensive
implementation planning was conducted.
WHEREAS, per the . original proposal, the consultant charges 5% for
administrative expenses and charges out-of pocket expenses (travel, express mail,
etc.) at cost and the total expenses for this project are estimated at approximately 10%
of professional fees; and
WHEREAS, funds were not appropriated for the additiona'l scope of work, and a
supplemental scope of work and fee schedule have been negotiated and agreed to
between the parties hereto, as shown on Exhibit "A" Scope of Services and Fees;
1 0/22/97
..
’. 0
NOW, THEREFOREl in consideration of these recitals and the mutual
covenants contained herein, City and Contractor hereby agree as follows:
1. The term of the agreement shall end on February 28, ’ 1999 with an
option to extend the.contract for three (3) additional one (1) year periods.
2. Contractor shall provide services as outlined on attached Exhibit “A’.
3. City shall pay Contractor for all work outlined in Exhibit “A, on a time
and materials basis not-to-exceed $230,000 (which consists of original contract of
$100,000, Amendment No. 1 of $25,000, and $1 05,000 covered by this Amendment.)
Contractor shall provide City on a monthly basis copies of invoices sufficiently detailed’
to include hours .performed, hourly ,rates, and related activities and costs for approval
by City.
4. All other provisions of the aforementioned agreement entered into on
February 24, 1997, by and between City and Contractor shall remain in full force and
effect .
5. All requisite insurance policies to be maintained by the Contractor shall
include coverage for the amended assignment and scope of work for the extension
period.
?
I "
._
b
Acknowledged and Accepted:
CONTRACTOR:
Watson Wvatt Worldwide
Paul Mee, Vice President
(print namehitle)
By: (sign here)
(print namehitie)
0
ATTEST:
City Clerk I -. . _- -.
30 /P?F(
DAT~ .I .
(Proper notarial acknowledgment of execution by Contractor must be attached.)
(President or vice-president. and secretary or assistant secretary must sign for
corporations. If only one officer signs, the corporation must attach a resolution certified
by the secretary or assistant secretary under corporate seal empowering that officer to
bind the corporation.)
APPROVED AS-TO FORM:
RONALD R. BALL
City Attorney
n
City ,Attorney 1- 2-84 8-
10/22/97
- e
' ' CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
1
1
I
1
No. 5907
County of Lo3 A~gk-5
On ~UNWRV iy? \978 before me, MIIAIPA C-T~~EH. NOTARS-\"~'L~BL~~ I
personally appeared PAUL V. MEE I
!dpersonally known to me - OR -
DATE NAME, TITLE OF OFFICER - E.G., "JANE DOE, NOTARY PUBLIC'
NAME(S) OF SIGNER(S)
to be the person(&! whose name(fl is/-
subscribed to the within instrument and ac-
knowledged to me that he/-executed
the same in his/kcr!?ke+- authorized
capacityw), and that by his/ke&be+
signature($) on the instrument the personw,
or the entity upon behalf of which the
person(@ acted, executed the instrument.
WITNESS my hand and official seal.
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent
fraudulent reattachment of this form.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
INDIVIDUAL Ex+enJon ad AbWeMdWewk NO2 ET CORPORATE OFFICER t6 IXWBYA~ c;C, 4 &dabad a~d LQcb~Wqd
TITLE OR TYPE OF DOCUMENT TITLE@)
PARTNER(S) c] LIMITED 0 GENERAL 5 c] ATTORNEY-IN-FACT NUMBER OF PAGES 0 TRUSTEE(S) 0 GUARDIANKONSERVATOR 0 OTHER: JANUARV 19,
DATE OF DOCUMENT
A&-ha i R&QM ktanL
SIGNER IS REPRESENTING: NAME OF PERSON(S) OR ENTITY(lES) Ronaki % .aa iL
SIGNER(S) OTHER THAN NAMED ABOVE
01993 NATIONAL NOTARY ASSOCIATION 8236 Remmet Ave., P.O. Box 7184 Canoga Park, CA 91309-7184
,I
r
. -a e
Exhibit A
With approval of this contract, the City Council will be authorizing the Human
Resources Department to continue with the design and implementation of this project:
The 'total increase in cost is approximately $105,000. The original estimated cost of
this project was $100,000. Amendment No. 1 increased 'the cost of this project by
$25,000. The revised estimated costs inclusive of the increased scope of work in this
Amendment are shown below.
Performance Management and Compensation Program
2nd Amended Scope of Work and Fee Schedule
Project Management $ 16,500
Audit Current Compensation Plan .$ 14,500
Develop Performance Appraisal System $ 36,000
Develop Management Pay Plan $ 19,500
Develop Communication Strategy $ 7,500
Market Analysis of Salary and Benefits $ 21,500
Implementation Planning $ 18,500
Additional Council and Leadership Team'Meetings $ 45,000
Additional Communication Design and Materials $ 31,500
Project expenses $ 19.500
Total $230,000
The Council funded the original $100, 000 of this program through a transfer of funds
from the General Contingency Fund to the Human Resources Department
miscellaneous professional services account.
The City Manager allowed for the transfer of $25,000 from the Human Resources
Department organizational development account to the Human Resources Department
miscellaneous profess,ional services account to fund Amendment No. 1 to the
agreement.
c
Funds are currently available within the Human Resources Department Fiscal Year
1997/1998 budget to cover the remaining $1 05,000 expense proposed above.
1 0/22/97