2006-219
ORDINANCE NO. 2006- c;i / q
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS
AUTHORlZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES
AGREEMENT WITH T. R. EDGAR & ASSOCIATES, FOR CONSULTING SERVICES
RELATING TO A CAREER PROGRESSION PROGRAM AND A WAGE AND SALARY
SURVEY FOR DENTON MUNICIPAL ELECTRIC (IN AN AMOUNT NOT-TO-EXCEED
$46,500); AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND
PROVIDING AN EFFECTIVE DATE.
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
consulting services to the City of Denton, Texas relating to the preparation of a career
progression program and a wage/salary survey regarding Denton Municipal Electric only; 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 two studies 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: That the City Manager is hereby authorized to execute a Professional
Services Agreement with T. R. Edgar & Associates, a Sole Proprietorship, of McLean, Virginia,
for professional consulting services, in an amount not to exceed $46,500; in substantially the
form of the Professional Services Agreement that is attached hereto and incorporated herewith
by reference as Exhibit "A."
SECTION 2: That 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 services needed by the City for a fair and reasonable price.
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SECTION 3: That the expenditure of funds as provided in the attached Professional
Services Agreement is hereby authorized.
SECTION 4: That this ordinance shall become effective immediately upon its passage
and approval.
PASSED AND APPROVED this the It! day of O-a.ftu/t ,2006.
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ATTEST:
JENNIFER WALTERS, CITY SECRETARY
By ~'4' \ J~ ttiAA
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APPROVED AS TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
BJW1Jili tcl Q
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STATE OF TEXAS
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COUNTY OF DENTON
PROFESSIONAL SERVICES AGREEMENT FOR CONSULTING SERVICES
PERTAINING TO DENTON MUNICIPAL ELECTRIC
THIS AGREEMENT is made and entered into on the / ~ day of (2~,
2006, by and between the City of Denton, Texas, a Municipal Corporation, with its pri lpal office
at 215 East McKinney Street, Denton, Texas 76201 ("CITY"); and T. R. Edgar & Associates, a
Sole Proprietorship of the State of Virginia, with its principal office at 1610 6th Place, McLean,
Virginia 22101, hereafter "EDGAR"; acting herein by and through their duly authorized
representatives.
WITNESSETH, that in consideration of the covenants, promises and agreements herein
contained, the CITY and EDGAR do hereby AGREE as follows:
ARTH:T F T
EMPLOYMENT OF CONSULTANT
The CITY hereby contracts with EDGAR, as an independent contractor, and EDGAR hereby
agrees to perform the services herein in connection with the Scope of Services as stated in the
Articles to follow, with diligence and in accordance with the professional standards customarily
obtained for such services in the State of Texas.
ARTH:T FIT
SCOPE OF SERVICES
A. EDGAR shall provide to the CITY professional consulting services pertaining to preparation
of a Career Progression Program and a Wage/Salary Survey regarding Denton Municipal Electric
("DME"), and providing preparation of written products together with Edgar's analysis thereon.
EDGAR agrees to perform those services and tasks more particularly and specifically described in
the letter dated June 30, 2006 issued by Thomas R. Edgar of EDGAR to Sharon Mays, Director,
Denton Municipal Electric which is attached hereto as Exhibit "A" and incorporated herewith by
reference.
B. To consult with the Interim City Manager, Assistant City Manager/Utilities, the Director of
Electric Utilities, the Utility Attorney, and any other designated administrative personnel regarding
any and all aspects of the services to be performed pursuant to this Agreement.
A RTH:T F TTT
PERIOD OF SERVICE
This Agreement shall become effective on the date this Agreement is approved and upon the
issuance of a notice to proceed by DME. The termination date of this Agreement shall be upon the
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earliest to occur of the following events: completion of the work described herein and in the
attached Exhibit "A"; or upon the depletion and exhaustion of the $46,500 not-to-exceed amount
provided for herein; or upon fifteen (15) day's written notice to terminate, issued by the Director of
Electric Utilities, DME. This Agreement may be sooner terminated in accordance with the
provisions hereof. Time is of the essence in this Agreement. EDGAR shall make all reasonable
efforts to complete the services set forth herein as expeditiously as possible and to meet the
schedule established by the CITY, acting through its Director of Electric Utilities.
ARTICLE IV
COMPENSATION
A. COMPENSATION TERMS:
"Direct Non-Labor Expense" is defined as that expense for any assignment incurred
hereunder by EDGAR for supplies, long-distance telephone, telecopier, reproduction
expense, overnight courier, photocopy expense, transportation, travel, communications,
subsistence and lodging away from home and similar incidental expenses reasonably incurred
in connection with that assignment.
B. BILLING AND PAYMENT:
1. For and in consideration of the professional services to be performed by EDGAR
herein, the CITY agrees to pay EDGAR, a lotal fee, including reimbursement for direct non-
labor expense, of $46,500 for those services described in Exhibit "A" attached hereto.
2. The fee for the services described in this Agreement to be performed by EDGAR is to
be billed as follows: 30% of the total fee thirty (30) days after commencement of the
Agreement; 30% of the total fee sixty (60) days after commencement of the Agreement; 30%
of the total fee ninety (90) days after commencement of the Agreement; and the final 10%
upon satisfactory complelion and delivery to the CITY of the Wage/Salary Study and the
Career Progression Programs.
3. Payments to EDGAR will be made by the CITY on the basis of monthly statements
rendered to the CITY through its Director of Electric Utilities. The fee bills as submitted,
shall be allowed and approved, or shall be disallowed for cause, by the Director of Electric
Utilities.
4. Nothing contained in this Article shall require the CITY to pay for any work which is
unsatisfactory as reasonably determined by the Interim City Manager or the Director of
Electric Utilities, or which is not submitted in compliance with the terms of this Agreement.
The City shall not be required to make any payments to EDGAR when EDGAR is in default
under this Agreement.
5. It is specifically understood and agreed that EDGAR shall not be authorized to
undertake any work pursuant to this Agreement which would require additional payments by
the CITY for any charge, expense or reimbursement above the maximum not-to-exceed fee
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as stated, without first having obtained written authorization from the CITY.
C. PAYMENT
If the CITY fails to make payments due EDGAR for services and expenses within thirty (30)
days after receipt of EDGAR'S undisputed statement thereof, the amounts due EDGAR will
be increased by the rate of one percent (I %) per month from the said thirtieth (30th) day, and
in addition, EDGAR may, after giving ten (10) days' written notice to the CITY, suspend
services under this Agreement until EDGAR has been paid in full all amounts due for
services, expenses and charges provided. However, nothing herein shall require the CITY to
pay the late charge of one percent (1 %) set forth herein if the CITY reasonably determines
that the work of EDGAR is unsatisfactory, in accordance with this Article IV, Compensation,
and the CITY notifies EDGAR in writing of any such defect.
ARTICLE V
OBSERVATION AND REVIEW OF THE WORK
EDGAR will exercise reasonable care and due diligence in discovering and promptly
reporting to the CITY any defects or deficiencies in his work or the work of any subconsultants
performed hereunder.
ARTICLE VI
OWNERSHIP OF DOCUMENTS
All documents, analyses and other data prepared by EDGAR under this Agreement ("Work
Products") are instruments of service and are and shall remain the property of CITY. EDGAR shall
have the right to make and retain copies and use all Work Products; provided, however, the use
shall be limited to the intended use for which the services and Work Products are provided under
this Agreement. CITY recognizes that EDGAR has achieved copyright protection of certain of its
programs, which fact shall be noted on the face of each such document. The CITY shall not sell,
transfer, or otherwise assign any copyrighted material with or without compensation to the CITY.
Providing however, that copywriting will not restrict CITY'S right to retain or make copies of the
Work Products for its information, reference and use on the Project or services under the
Agreement.
The Work Products shall not be changed or used for purposes other than those set forth in this
Agreement without the prior written approval of EDGAR. If CITY releases the Work Products to a
third party without EDGAR'S prior written consent, or changes or uses the Work Products other
than as intended hereunder, CITY does so at its sole risk and discretion and EDGAR shall not be
liable for any claims or damages resulting from or connected with the release or any third party's
use of the Work Products.
ARTICLE VII
INDEPENDENT CONTRACTOR
EDGAR shall provide services to the CITY as an independent contractor, not as an employee
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of the CITY. EDGAR shall not have or claim any right arising from employee status.
ARTICLE vm
INDEMNITY AGREEMENT
EDGAR shall indemnify and save and hold harmless the CITY and its officers, agents, and
employees from and against any and all liability, claims, demands, damages, losses and expenses,
including but not limited to court costs and reasonable attorney's fees incurred by the CITY, and
including without limitation, damages for bodily and personal injury, death and property damage,
and damage for professional malpractice resulting from the negligent acts or omissions of EDGAR
or any subconsultants, in performance of this Agreement. PROVIDED HOWEVER, the total
liability of EDGAR hereunder, in any event, shall in no event exceed $200,000.
Nothing in this Agreement shall be construed to create a liability to any person who is not a
party to this Agreement and nothing herein shall waive any of the party's defenses, both at law or
equity, to any claim, cause of action or litigation filed by anyone not a party to this Agreement,
including the defense of governmental immunity, which defenses are hereby expressly reserved.
ARTICLE IX
INSURANCE
During the performance of the Services under this Agreement, EDGAR shall maintain the
following Professional Liability Insurance with an insurance company licensed to do business in the
State of Texas by the State Insurance Commission or any successor agency that has a rating with
Best Rate Carriers of at least an "A-" or above:
A. Automobile Liability Insurance and Property Damage Limits in the name of Proprietor in
accordance with the statutory limits required by the Commonwealth of Virginia, proprietor's
home state.
B. Professional Liability Insurance with policy limits of not less than $200,000 annual
aggregate.
C. EDGAR shall furnish a copy of his individual automobile insurance certificates issued by the
Commonwealth of Virginia to the Utility Attorney. EDGAR shall furnish evidence of the
required professional liability coverage to the Utility Attorney to evidence such coverage.
The professional liability insurance shall contain a provision that such insurance shall not be
canceled or modified without thirty (30) days prior written notice to CITY and EDGAR. In
such event, EDGAR shall, prior to the effective date of the change or cancellation, deliver
substitute policies furnishing the same coverage to the CITY.
ARTICLE X
ARBITRATION AND ALTERNATE DISPUTE RESOLUTION
The parties agree to settle any disputes under this Agreement by submitting the dispute to
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arbitration or other means of alternate dispute resolution such as mediation. No arbitration or
alternate dispute resolution arising out of or relating to, this Agreement involving one party's
disagreement may include the other party to the disagreement without the other's approval.
ARTICLE XI
LIMITATION OF LIABILITY
To the extent permitted by law, the total liability of EDGAR to CITY for any and all claims
arising out of this Agreement, whether caused by negligence, errors, omissions, strict liability,
breach of contract or contribution, or indemnity claims based on third-party claims, shall not exceed
two hundred thousand dollars ($200,000).
ARTICLE XII
CONSEQUENTIAL DAMAGES
In no event and under no circumstances shall EDGAR be liable to CITY for any interest, loss
of anticipated revenues, earnings, profits, or increased expense of operations, or for any
consequential, indirect or special damages.
ARTICLE xm
PROFESSIONAL STANDARDS
EDGAR will perform services under this Agreement with the degree of skill and diligence
normally practiced by professional engineers or consultants performing the same degree of similar
services. No other warranty or guarantee, expressed or implied, is made with respect to the services
furnished under this Agreement and all implied warranties are disclaimed.
ARTICLE XIV
TERMINATION OF AGREEMENT
A. Notwithstanding any other provision of this Agreement, either party may terminate this
Agreement by giving thirty (30) days advance written notice of termination to the other party.
B. This Agreement may be terminated in whole or in part in the event of either party
substantially failing to fulfill its obligations under this Agreement. No such termination will
be effected unless the other party is given: (1) written notice (delivered by certified mail,
return receipt requested) of intent to terminate and setting forth the reasons specifying the
nonperformance, and not less than ten (10) business days in which to cure the failure; and (2)
an opportunity for consultation with the terminating party prior to termination.
C. If this Agreement is terminated prior to completion of the services to be provided hereunder,
EDGAR shall immediately cease all services and shall render a final bill for services to the
CITY within thirty (30) days after the date of termination. The CITY shall pay EDGAR for
all services properly rendered and satisfactorily performed and for reimbursable expenses to
termination incurred prior to the date of termination in accordance with Article IV,
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Compensation. Should the CITY subsequently contract with a new consultant for the
continuation of services on the Project, EDGAR shall cooperate in providing information.
EDGAR shall turn over all documents prepared or furnished by EDGAR pursuant to this
Agreement to the CITY on or before the date of termination, but may maintain copies of such
documents for its use.
ARTTrT F xv
RESPONSIBILITY FOR CLAIMS AND LIABILITIES
Approval by the CITY shall not constitute nor be deemed a release of the responsibility and
liability of EDGAR, or any subconsultants of EDGAR, for the accuracy and competency of their
designs or other work product. .
ARTTrT F XVT
NOTICES
All notices, communications, and reports required or permitted under this Agreement shall be
personally delivered or mailed to the respective parties by depositing same in the United States mail
at the address shown below, certified mail, return receipt requested unless otherwise specified
herein. Mailed notices shall be sent to the parties at the following addresses:
To EDGAR:
To CITY:
T.R. Edgar & Associates
Attn: Thomas R. Edgar
1610 6th Place
McLean, Virginia 22101
Fax: (703) 734-0506
City of Denton, Texas
Attn: Interim City Manager
215 East McKinney Street
Denton, Texas 76201
and to
City of Denton, Texas
Attn: Director of Electric Utilities
901-A Texas Street
Denton, Texas 76205
Fax: (940) 349-7334
All notices shall be deemed effective upon receipt by the party to whom such notice is given
or within three days after the date of mailing.
ARTTrT F xvrr
ENTIRE AGREEMENT
This Agreement consisting of nine (9) pages, and five (5) additional pages consisting of
Exhibit "A", constitutes the complete and final expression of the agreement of the parties and is
intended as a complete and exclusive statement of the terms of their agreements and supersedes all
prior contemporaneous offers, promises, representations, negotiations, discussions,
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communications and agreements which may have been made in connection with the subject matter
hereof.
ARTICLE xvm
SEVERABILITY
If any provision of this Agreement is found or deemed by a court of competent jurisdiction to
be invalid or unenforceable, it shall be considered severable from the remainder of this Agreement
and shall not cause the remainder to be invalid or unenforceable. In such event, the party shall
reform this Agreement to replace such stricken provision with a valid and enforceable provision
which comes as close as possible to expressing the intention of the stricken provision.
ARTICLE XIX
COMPLIANCE WITH LAWS
EDGAR shall comply with all federal, state, local laws, rules, regulations, and ordinances
applicable to the work covered hereunder as they may now read or hereinafter be amended.
ARTICLE XX
DISCRIMINATION PROHIBITED
In performing the services required hereunder, EDGAR shall not discriminate against any
person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical
handicap.
ARTICLE XXI
PERSONNEL
A. EDGAR represents that he has secured, or will secure at his own expense any additional
personnel required to perform all the services required under this Agreement. Such personnel
shall be subconsultants of EDGAR, and shall not be employees or officers of, nor have any
contractual relations with the CITY. EDGAR shall inform the CITY of any conflict of
interest or potential conflict of interest that may arise during the term of this Agreement.
B. All services required hereunder will be performed by EDGAR or under his supervision. All
personnel engaged in work shall be qualified and shall be authorized and permitted under
state and local laws to perform such services.
ARTICLE XXII
ASSIGNABILITY
EDGAR shall not assign any interest in this Agreement and shall not transfer any interest in
this Agreement (whether by assignment, novation or otherwise) without the prior written consent of
the CITY.
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ARTTrT F xxm
MODIFICATION
No waiver or modification of this Agreement or of any covenant, condition, limitation herein
contained shall be valid unless in writing and duly executed by the party to be charged therewith
and no evidence of any waiver or modification shall be offered or received in evidence in any
proceeding arising between the parties hereto out of or affecting this Agreement, or the rights or
obligations of the parties hereunder, and unless such waiver or modification is in writing, duly
executed; and, the parties further agree that the provisions of this section will not be waived unless
as herein set forth.
ARTTrT F XXTV
MISCELLANEOUS
A. EDGAR agrees that CITY shall, until the expiration of three (3) years after the final payment
under this Agreement, have access to and the right to examine any directly pertinent books,
docwnents, papers and records of EDGAR involving transactions relating to this Agreement.
EDGAR agrees that the CITY shall have access during normal working hours to all
necessary EDGAR facilities and shall be provided adequate and appropriate working space in
order to conduct audits in compliance with this section. The CITY shall give EDGAR
reasonable advance notice of any intended audits.
B. Venue of any suit or cause of action under this Agreement shall lie exclusively in Denton
County, Texas. This Agreement shall be governed by, and construed in accordance with the
laws of the State of Texas.
C. EDGAR shall commence, carry on, and complete the work required by this engagement with
all applicable dispatch, in a sound, economical, efficient manner and in accordance with the
provisions hereof. In accomplishing the work, EDGAR shall take such steps as are
appropriate to ensure that the work involved is properly coordinated with related work being
carried on by the CITY.
D. The CITY shall assist EDGAR by placing at EDGAR'S disposal all available information
pertinent to the work required by this engagement, including previous reports, any other data
relative to the project and arranging for the access to, and make all provisions for EDGAR to
enter in or upon, public and private property as required for EDGAR to perform services
under this Agreement.
E. The captions of this Agreement are for informational purposes only and shall not in any way
affect the substantive terms or conditions of this Agreement.
IN WITNESS WHEREOF, the City of Denton, Texas has caused this Agreement to be
executed in four (4) original counterparts, by its duly authorized Interim City Manager; and T. R.
Edgar & Associates, a ~0e prOPri2UShiP has executed this Agreement by its duly authorized
Proprietor on this the ~ day of 'LfLJ..:t ' 2006.
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ATTEST:
JENNIFER WALTERS, CITY SECRETARY
By:
r
\
IlCITY"
CITY OF DENTON, TEXAS
A Municipal Corporation
By:
Howard Martin, Interi City Manager
"EDGAR"
T. R. EDGAR & ASSOCIATES
A Virginia Sole Proprietorship
By:
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June 30, 2006
Sharon Mays
Director, Electric Utilities
City of Denton
601 E. Hickory
Suite A
Denton, TX 76205
Dear Sharon:
Thank you for providing me this opportunity to propose the services ofT.R.Edgar &
Associates in support of your efforts to: I) conduct a wage/salary survey of selected
positions in the Utility and 2) develop a Career Progression Program (CPP) which
incorporates all of the traditional elements of a formal wage/salary program. While each
of the 2 items identified in the Scope of Work will be discussed separately, the costs for
each will be totaled and presented as one "not to exceed" price, including estimated travel
costs.
I. BACKGROUND
For the past several years, the Electric Utility has found it difficult to attract and retain
the caliber of employee necessary to operate, and manage, the Utility effectively and
efficiently within the constraints ofthe City's standard pay plan. The Utility's Director
has been informally exploring other systems and methodologies to deal with this issue. A
couple of years ago, she met Tom Edgar at a TMPA Board meeting and learned of his
expertise in compensation in the work he was doing for TMP A. She also leamed that his
firm had developed and implemented a performance based compensation system for the
City of Bryan, TX and for its Utility, BTU in 2000. She was able to obtain a favorable
reference about T.R.Edgar & Associates from Dan Wilkerson, General Manager ofBTU.
About 6 months ago, Ms. Mays contacted Tom Edgar to obtain information about how to
address certain compensation issues that she was facing at DME. She then provided my
name to the City's Director of Human Resources, Carla Romine. Ultimately, that contact
lead to an invitation to visit Denton and to make a presentation to 25 senior managers
(approximately) to help "educate" them on the various compensation issues which the
City was facing. Subsequent to that visit, there has been on-going dialog about what
T.R.Edgar & Associates might be able to do to assist the City, and the Utility particularly,
in developing a more contemporary and pragmatic approach to attracting, retaining, and
rewarding employees for the performance oftheir jobs. Further, as an integral part ofthat
effort, Tom was asked to assist the Utility in the design of, and to conduct, a salary
survey appropriate to selected positions in the Utility. This proposal addresses both of the
topics.
II. SCOPE OF WORK
A. Career Proe:ression Proe:ram
Tom Edgar, President ofT.R. Edgar & Associates, is the principal author of the Career
Progression Program. Since its development many years ago, it has evolved into
something far greater than a basic compensation system. In its broadest context, the
Career Progression Program represents the complete architecture required for the
management of human resources in the 2 I 51 century. Not only does the Career
Progression Program provide the basis for compensating and rewarding people based on
their levels of responsibility, and performance thereof, the Program defines
developmental tracks for each employee so they can better relate to advancement
opportunities and the requisite skills and qualifications necessary to achieve them.
The Program also differentiates jobs as exempt or nonexempt, thus allowing companies
to comply with the most fundamental labor law in this country, the Fair Labor Standards
Act. The Program also provides the basis for identifying and tracking employee
demographics to ensure efficient and timely responses to EEO and other Federal and state
reporting requirements, as required.
T.R. Edgar & Associates will design, develop, and facilitate the implementation of a
Career Progression Program for the City of Denton, Electric Utilities that builds on the
fundamentals ofthe current architecture, but incorporates the refinements necessary to
reflect the uniqueness of your organization, its array of positions, and its culture. When
complete, you will receive a comprehensive Manual incorporating:
. Defmition ofterms
. Documentation supporting job designations as exempt or nonexempt
. Exempt Career Ladders with separate salary structures reflective of the
various labor markets in which your Company recruits, if necessary
. Nonexempt Career Ladders with wage structures representing the labor
market in which your Company recruits its staff
. Practical guidance for managers to administer the compensation guidelines for
each employee
. Compensation Increase Planning Guide
. Compensation Increase Guidelines Matrix
. Level of Management approval for granting wage/salary increases
. A performance management/feedback system (including forms) that
effectively links individual performance to compensation.
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To facilitate implementation of the CPP, T.R. Edgar & Associates will conduct a two-
hour orientation session for a designated set of managers (up to 15) to ensure that they
understand the Manual's contents and how it should be implemented on an ongoing basis.
In addition, T.R. Edgar & Associates will conduct a 4-hour training program on
Performance Management/Feedback for up to 15 managers/supervisors. Additional
training programs will require additional fees. The training represents a balance between
policy guidance and the techniques appropriate for an effective interchange between
individual managers and employees about their past performance and future
developmental needs.
Unlike other programs of this nature, the Career Progression Program does not require an
annual overhaul. Rather, it requires some minor revision to update wage/salary structures
and compensation increase guidelines. Basically, however, the Program is broad enough
and flexible enough to meet the Utility's needs for the foreseeable future.
As a baseline for getting started on this Program and for obtaining "buy in," I would
conduct a briefing to your senior managers. The more "up front" you are and the more
you reinforce the message, the more readily individuals will accept the new paradigm.
B. Wae:e/Salarv Snrvev
T.R.Edgar & Associates will design, develop, and conduct a wage/salary survey for DME
incorporating approximately 28 different positions. The survey will be sent to
approximately 20 employers, those with which the Utility is competing for labor. Some
will be in the Utility industry, others will be from the employer community at large.
T.R.Edgar & Associates will work with selected managers from the Utility to develop the
details of the job descriptions appropriate for each of the positions to be surveyed,
including: the primary function, the scope of the position, and its primary qualifications,
skills, and working conditions. Once the positions have been properly described, they
will be included in a template to be sent to each employer being asked to participate in
the survey. The survey design will include a general information page about each
employer, the position descriptions, and an area to respond to the wages/salaries related
to each position. Further, the survey will ask for any other forms of compensation to
ensure that we capture all forms of cash rewards. Once distributed, electronically, we will
follow up frequently with each employer to remind them of the need to complete the
survey by the prescribed deadline and to answer any of their questions. This continued
follow up is vital to ensure the maximum number ofrespondents and the reliability and
validity ofthe results. Once all of the results are in, they will be tabulated and reported
for each of the surveyed positions. Finally, we will generate a summary report of the
highlights of the survey and any major findings. Once completed and proofread, the
survey will be prepared for each of the participants (coded for privacy) and distributed.
For DME, the survey results will be compared with actual pay practices for each of the
surveyed positions. A written report will be prepared for the Director of the Utility, the
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City Manager, and others as designated. The report will be briefed in person, if possible,
or via electronic medium.
III. COST
Consultant fees associated with item A, the Career Progression Program, will not exceed
$19,000.
Consultant fees associated with item B, the Wage/Salary Survey, will not exceed
$20,000.
Travel and related expenses associated with the completion ofthese 2 tasks, including 4
trips to Denton, are estimated to be $7,500.
The "not-to-exceed" cost for all items is $46,500.
I will invoice you at the end of each month. To help you estimate cash flow, I suggest an
installment arrangement of $9,000/month for 5 months, with the remaining increment
billed upon completion of the entire project(s).
IV. SCHEDULE
T.R. Edgar & Associates is prepared to commence work on these projects within 2 weeks
following formal acceptance ofthis proposal. Projects of this scope will normally take 4-
5 months to complete. There are, however, distinct elements. The Wage/Salary Survey
should be completed within 2-21/2 months. The Career Progression Program will take
longer and is somewhat dependent on the availability of managers' time (at the end when
we are ready to implement). Ifwe begin in July, we should be done by Thanksgiving,
assuming our mutual schedules can be efficiently coordinated.
The principal involvement of your time will be in the collection, recording, and reporting
of data. That responsibility will rest largely with Human Resources. Senior managers will
be responsible for reviewing and approving the slotting of employees to their various
levels of responsibility and for approving the content of the CPP Manual. It is rare that
managers are diverted from their primary responsibilities for more than a couple of hours
at a time.
V. STAFFING
I will serve as the principal consultant on this assigrunent. I will call upon a professional
colleague, Eileen Taylor, SPHR, to ensure that you receive the best, and most cost
effective, products. She will be intimately involved in the survey design, the tabulation of
results, and the distribution to participants. She will be involved in other aspects of the
project(s), as necessary and appropriate. Eileen and I have worked together since 1992
and have completed dozens of other, similar assigrunents.
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I have worked extensively in the compensation field since 1969. I am a Certified
Compensation Professional and the principal author of the Career Progression Program.
Most important, I have extensive experience and knowledge of Human Resources
Management, and Compensation Programs particularly. Further, I have worked in
companies representing all types of industries, including municipalities, across the
country.
In addition to 15 years as a Compensation Consultant, I have served in a Senior
Management role in charge of Human Resources for 4 companies incorporating a period
of over 20 years.
As further testimony to my knowledge of the subject matter, I have served as an Adjunct
ProfessorlInstructor for three major academic institutions in the Metropolitan Washington
area. Most recently, I taught Organizational Behavior to MBA students at Virginia Tech.
VI. SUMMARY
Sharon, I am excited about the opportunity to help you and your management team
develop a compensation program that will support your mission and your corporate
culture and allow you to attract, retain, and competitively reward employees based on
performance. I am confident that you will find that the value ofthe products (CPP and
survey) far outweighs their initial cost. As the saying goes, it is an "investment in your
future. "
Best regards,
Thomas R. Edgar
T. R. Edgar & Associates
I hereby accept the terms and conditions of the proposal submitted by T.R. Edgar &
Associates and authorize commencement of work on the development of a Career
Progression Program (CPP) and a Wage/Salary Survey for DME within 2 weeks
following the approval date of this proposal.
,
Howard Martin, Acting ity Manager
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te I
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