2008-263ORDINANCE NO. 2008-
AN ORDINANCE APPROVING AND AUTHORIZING THE CITY MANAGER TO
EXECUTE A FURTHER AMENDMENT TO PROFESSIONAL AND PERSONAL
SERVICES AGREEMENT BY AND BETWEEN THE CITY OF DENTON, TEXAS AND T.
R. EDGAR & ASSOCIATES FOR CONSULTING SERVICES; PROVIDING FOR THE
EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE
(PREVIOUS APPROVALS FOR THIS FIRM TOTAL $266,300 SINCE INCEPTION OF
ENGAGEMENT ON AUGUST 1, 2006; THEREFOR THIS FURTHER AMENDMENT OF
NOT-TO-EXCEED $30,000 WOULD TOTAL $296,300 IN THE AGGREGATE).
WHEREAS, the City Council deems it in the public interest to engage T. R. Edgar &
Associates, a Sole Proprietorship, of McLean, Virginia ("Edgar"), to provide professional and
personal consulting services to the City of Denton, Texas relating to the preparation of an annual
review, analysis and updating of the City's wage and salary structures and to initiate discussions
regarding compensation philosophy and mechanics; and
WHEREAS, City staff has reported to the City Council that there is a substantial need for
the above-described specialized professional services, and that limited City staff cannot
adequately perform the services and tasks with its own personnel; and
WHEREAS, Chapter 2254 of the Texas Government Code, known as the "Professional
Services Procurement Act," generally provides that a City may not select a provider of
professional services on the basis of competitive bids, but must select the provider on the basis of
demonstrated competence, knowledge, and qualifications, and for a fair and reasonable price;
and
WHEREAS, Edgar has the requisite demonstrated competence and qualifications, and is
willing to complete the services for a fair and reasonable price; and
WHEREAS, the City Council has provided in the City Budget for the appropriation of
funds to be used for the purchase of the professional services, as set forth in the Professional
Services Agreement; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1: The City Manager is hereby authorized to execute a "Further Amendment
to Professional and Personal Services Agreement" with T. R. Edgar & Associates, a Sole
Proprietorship, of McLean, Virginia, for professional consulting services, in an amount not-to-
exceed $30,000; in substantially the form of the Agreement that is attached hereto and
incorporated herewith by reference as Exhibit "A."
SECTION 2: The award of this Agreement by the City is on the basis of the
demonstrated competence, knowledge, and qualifications of Edgar and the ability of Edgar to
perform the professional and personal services needed by the City for a fair and reasonable price.
SECTION 3: The expenditure of funds as provided in the attached Professional Services
Agreement is hereby authorized.
SECTION 4: This ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the 114 day of , 2008.
qM tA\,BU~R9 G ; AYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
By:
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
P
By:
r
2
THE STATE OF TEXAS §
COUNTY OF DENTON §
FURTHER AMENDMENT
TO PROFESSIONAL AND PERSONAL SERVICES AGREEMENT
THIS FURTHER AMENDMENT TO PROFESSIONAL AND PERSONAL SERVICES
AGREEMENT is entered into by and between the City of Denton, Texas, a Texas Municipal
Corporation with its offices at 215 East McKinney Street, Denton, Texas 76201 (hereafter
referred to as "CITY"); and the firm of T. R. Edgar & Associates, with its offices at 1610 6t'
Place, McLean, Virginia 22101 (hereafter referred to as the "EDGAR;" and
WHEREAS, this further amendment follows the previous Agreements, listed herein,
which were entered into by the City of Denton, Texas with T.R. Edgar & Associates:
WHEREAS, the City of Denton, Texas (hereafter the "City") and T. R. Edgar &
Associates (hereafter "Edgar") entered into a certain "Professional Services Agreement for
Consulting Services Pertaining to DME" in the amount of not-to-exceed $46,500 for the wage
and salary study and career progression program conducted with DME only, which Agreement
was approved and authorized by the City Council on August 1, 2006, by Ordinance No. 2006-
219; and
WHEREAS, on August 1, 2006 the Council by Ordinance No. 2006-218 also approved
and authorized the "Professional Services Agreement for Consulting Services to the City of
Denton, Texas" which Agreement provided for the wage and salary study to the General Fund,
Water/Wastewater, and Solid Waste Departments, said Agreement being in the amount of not-to-
exceed $54,500 (for a total cumulative price of $101,000); and
WHEREAS, on October 30, 2006 the City entered into an "Amendment No. 1 to
Professional Services Agreement for Consulting Services" for the services set forth in the
preceding paragraph regarding the General Fund, Water/Wastewater, and Solid Waste
Departments; which Agreement was approved by Howard Martin, Interim City Manager, within
his delegated authority for the additional amount of not-to-exceed $5,000 (for a total cumulative
price of $106,000); and
WHEREAS, on February 7, 2007 the City entered into a "Professional and Personal
Services Agreement for Consulting Services Pertaining to the City of Denton" for services
regarding the Career Progression Program for the remaining enterprise funds for three hundred
(300) employees, together with additional professional and personal fees, in the not-to-exceed
sum of $95,500, which Agreement was approved by the City Manager within his delegated
authority (for a total cumulative price of $201,500); and
WHEREAS, on July 18, 2007 the Purchasing Agent, within his delegated authority
executed a "First Amendment to Professional and Personal Services Agreement" (the "First
Amendment') by and between the City and Edgar, providing for additional professional and
personal services in the not-to-exceed amount of $4,000 (for a total cumulative price of
$205,500); and
WHEREAS, on October 2, 2007 the City Council considered and approved the "Second
Amendment to Professional and Personal Services Agreement" (hereafter "Second
Amendment") entered into by the City and Edgar, for a further amount of $19,200 (for a
cumulative price of $224,700); which Second Amendment was approved by the City Council by
Ordinance 2007-233; and
WHEREAS, on December 10, 2007 the City and Edgar entered into a further
"Professional and Personal Services Agreement" relating to supervisory training to the
management of DME; which Agreement was for the amount of not-to-exceed $32,000 (for a
cumulative price of $256,700), and which Agreement was approved by the City Manager within
his delegated authority; and
WHEREAS, on April 11, 2008 the City and Edgar entered into an additional `Third
Amendment to Professional and Personal Services Agreement" (hereafter "Third Amendment'
for professional and personal services in the additional not-to-exceed amount of $9,600 (for a
cumulative price of $266,300); which Agreement was approved by the City Manager within his
delegated authority; and
CITY and EDGAR desire to further amend said Agreements for the purpose of adding
additional work to be performed by EDGAR for the City, in an amount not to exceed $30,000, to
wit: for the completion of an annual review, analysis and updating of the City's various wage
and salary structures, as more particularly described in Exhibit "A," which is the two-page letter,
which letter is dated October 6, 2008 from Thomas R. Edgar to Carla Romine-Haggmark,
Director of Human Resources of the City setting forth the scope of services for this additional
work; and
CITY and EDGAR hereby agree that the total $30,000 not-to-exceed amount of this
Further (hereafter the "Further Amendment"), total an aggregate not-to exceed amount of
$296,300; and
NOW THEREFORE, the CITY and EDGAR (hereafter collectively referred to as the
"Parties"), in consideration of their mutual promises and covenants, as well as for other good and
valuable considerations, do hereby AGREE to the following Further Amendment in the further
amount of not-to-exceed $30,000, for the services described in Exhibit "A" which is attached
hereto and incorporated herewith by reference.
The Parties hereto agree, that except as specifically provided for by this Further
Amendment, that all of the terms, covenants, conditions, agreements, rights, responsibilities, and
obligations of the Parties, shall continue in force and effect.
IN WITNESS WHEREOF, the City of Denton, Texas and the firm of T. R. Edgar &
Associates have each executed this Further Amendment to Professional and Personal Services
Page 2
Agreement, in four (4) original count by and ough their respective duly authorized
representatives and officers on this the V~ay of , 2008.
"CITY"
CITY OF DENTON, TEXAS
A Texas Municipal Corporation
By
G OR E C. CAMPBELL
CITY MANAGER
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
By:
APPRO D AS LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
By:
"EDGAR"
T. R. EDGAR & ASSOCIATES
A. Proprietorship
By:
THOMAS R. DGAR
AUTHORIZED REPRES NTATIVE
ATTEST:
By:
Page 3
Exhibit A
T.R.EDGAR & ASSOCIATES
1610 04 Place
McLean, VA 22101
October 6, 2008
Carla Romine-Haggmark
Director of Human Resources
City of Denton
601 E. Hickory, Suite A
Denton, TX 76205
Dear Carla:
This letter will serve as my proposal for the review, analysis, and updating of the City's
various wage/salary structures for 2009/2010. This annual update will help ensure that
you are able to continue hiring, rewarding, and retaining the caliber of employees
necessary for the effective and efficient operation of the City. You have also asked me to
include the cost of "on call" consulting services.
L SCOPE OF WORK
A. Compensation Updates
The process for completing the updating of your various wage/salary structures is
straightforward. I will obtain a listing of all employees, their current slotting
(position code on the ladder), their functional title, their career ladder title, "and
their annual salary or hourly wage. From that data, I will determine how you have
been compensating your employees over the past year and how much adjustment
the ranges need, if any. The major tool that I use to determine this is called
Compa-Ratio. This ratio compares the average wage/salary paid as it compares
with the midpoint(s). If the ratio is close to, or above, 100%, it suggests that the
ranges are fully "absorbed" and that an upward adjustment is required. If the ratio
is well below 100%, it suggests that the ranges are NOT fiil.ly absorbed and still
have plenty of ceiling room for further increases. Based on the results of this
analysis, I will determine how much adjustment is necessary. I also will refer to
the numerous surveys available to me on current market data which include
projections on percentage merit increases for the coming year. This same survey
data also reflects projections on the percentage of midpoint adjustments. In other
words, I do not make these changes in a vacuum. After I have made the
adjustments, I do another Compa-Ratio analysis to ensure that the adjustments are
affordable and that there is adequate room to grant raises over the next 12 months
consistent with the organization's needs and budget.
When I have completed this aspect of the project, I will prepare a memorandum
discussing my findings, the amount of adjustments, and any recommendations.
This update package will be forwarded to you for your review. Should you wish a
presentation of the data in person, then travel costs will need to be considered.
Otherwise, we can do a review of my findings, over the phone.
B. On Call Consaltina
You have asked if I would be available to assist you and the City on an as needed
basis. Of course, the answer is "yes." The nature of the services to be provided
can be in any area of Human Resources Management but I assume will largely be
focused on compensation and related matters.
II. COST
Consultant fees associated with the compensation update will be $12,800; $4,000 GF,
$3,200 W/WW, $3,200 DME, and $2,400 SW.
On call Consulting services will be charged at an hourly rate of $200.
These costs do not project any travel or out-of-pocket expenses. If travel is required, then
I will bill you for those costs separately without mark-up.
IM SCHEDULE
Given your budget cycle, I presume that you will want to have the wage/salary structures
updated by June of 2009. That means that I will need all of the relevant data by mid April
to allow enough time for me to do the work and for you to review the results.
The on-call services are available throughout the year, as you deem necessary.
IV. SUMMARY
Carla, I appreciate the opportunity to continue supporting you and the City. At this point,
I feel a part of the organization and have a vested interest in your continued successes.
Best regards,
Thomas R. Edgar
T. R. Edgar & Associates
2