Loading...
01-27-2015 Agenda with backup MEETING AGENDA City Council REGULAR SESSION CITY COUNCIL January 27, 2015 HAL BALDWIN MUNICIPAL COMPLEX COUNCIL CHAMBERS 1400 SCHERTZ PARKWAY BUILDING #4 SCHERTZ, TEXAS 78154 City of Schertz Core Values Do the right thing Do the best you can Treat others the way you would want to be treated Work together cooperatively as a team AGENDA TUESDAY, JANUARY 27, 2015 AT 6:00 P.M. Call to Order – City Council Regular Session Invocation and Pledges of Allegiance to the Flags of the United States and State of Texas. (Councilmember Edwards) City Events and Announcements • Announcements of upcoming City Events (J. Bierschwale/B. James) • Announcements and recognitions by City Manager (J. Kessel) Presentations • Presentation/briefing and update regarding the 2015 Hal Baldwin Scholarship Committee. (B. Cantu/P. Horan) Hearing of Residents This time is set aside for any person who wishes to address the City Council. Each person should fill out the speaker’s register prior to the meeting. Presentations should be limited to no more than 3 minutes. All remarks shall be addressed to the Council as a body, and not to any individual member thereof. Any person making personal, impertinent, or slanderous remarks while addressing the Council may be requested to leave the meeting. Discussion by the Council of any item not on the agenda shall be limited to statements of specific factual information given in response to any inquiry, a recitation of existing policy in response to an inquiry, and/or a proposal to place the item on a future agenda. The presiding officer, during the Hearing of Residents portion of the agenda, will call on those persons who have signed up to speak in the order they have registered. 01-27-2015 Council Agenda Discussion and Action Items 1. Minutes - Consideration and/or action regarding the approval of the minutes the Regular Meeting of January 20, 2015. (J. Kessel/B. Dennis) 2. Resolution No. 15-R-08 – Consideration and/or action approving a Resolution authorizing the city manager to execute a professional services agreement with Evergreen Solutions to conduct a city staff classification and compensation study and authorizing a contingency amount. (J. Kessel/J. Smith) Roll Call Vote Confirmation Requests and Announcements 3. Announcements by City Manager • Citizen Kudos • Recognition of City employee actions • New Departmental initiatives 4. Requests by Mayor and Councilmembers that items be placed on a future City Council agenda. 5. Requests by Mayor and Councilmembers to City Manager and Staff for information. 6. Announcements by Mayor and Councilmembers • City and community events attended and to be attended • City Council Committee and Liaison Assignments (see assignments below) • Continuing education events attended and to be attended • Recognition of actions by City employees • Recognition of actions by community volunteers • Upcoming City Council agenda items Executive Session 7. City Council will meet in closed session under section 551.074 Evaluation of the City Secretary and Deputy City Secretary. Reconvene into Regular Session 7a. Take any necessary action based on discussions held in closed session under Agenda Item number 7. Roll Call Vote Confirmation Adjournment 01-27-2015 City Council Agenda Page - 2 - CERTIFICATION I, DONNA SCHMOEKEL, DEPUTY CITY SECRETARY OF THE CITY OF SCHERTZ, TEXAS, DO HEREBY CERTIFY THAT THE ABOVE AGENDA WAS PREPARED AND POSTED ON THE OFFICIAL BULLETIN BOARDS ON THIS THE 23rd DAY OF JANUARY 2015 AT 2:45 P.M., WHICH IS A PLACE READILY ACCESSIBLE TO THE PUBLIC AT ALL TIMES AND THAT SAID NOTICE WAS POSTED IN ACCORDANCE WITH CHAPTER 551, TEXAS GOVERNMENT CODE. Donna Schmoekel Donna Schmoekel, Deputy City Secretary I CERTIFY THAT THE ATTACHED NOTICE AND AGENDA OF ITEMS TO BE CONSIDERED BY THE CITY COUNCIL WAS REMOVED BY ME FROM THE OFFICIAL BULLETIN BOARD ON _____DAY OF _______________, 2015. ____________________________Title:__________________________ This facility is accessible in accordance with the Americans with Disabilities Act. Handicapped parking spaces are available. If you require special assistance or have a request for sign interpretative services or other services please call 210-619-1030. The City Council for the City of Schertz reserves the right to adjourn into executive session at any time during the course of this meeting to discuss any of the matters listed above, as authorized by the Texas Open Meetings Act. Executive Sessions Authorized: This agenda has been reviewed and approved by the City’s legal counsel and the presence of any subject in any Executive Session portion of the agenda constitutes a written interpretation of Texas Government Code Chapter 551 by legal counsel for the governmental body and constitutes an opinion by the attorney that the items discussed therein may be legally discussed in the closed portion of the meeting considering available opinions of a court of record and opinions of the Texas Attorney General known to the attorney. This provision has been added to this agenda with the intent to meet all elements necessary to satisfy Texas Government Code Chapter 551.144(c) and the meeting is conducted by all participants in reliance on this opinion. COUNCIL COMMITTEE AND LIAISON ASSIGNMENTS Mayor Carpenter Audit Committee Hal Baldwin Scholarship Committee Interview Committee for Boards and Commissions Investment Advisory Committee TIRZ II Board Mayor Pro-Tem John – Place 3 Lone Star Rail District Councilmember Fowler – Place 1 Interview Committee for Boards and Commissions Schertz Housing Board Liaison Randolph Joint Land Use Study (JLUS) Executive Councilmember Azzoz – Place 2 Animal Control Advisory Committee Sweetheart Advisory Committee 01-27-2015 City Council Agenda Page - 3 - Committee Schertz Seguin Local Government Corporation Councilmember Edwards – Place 4 Audit Committee Hal Baldwin Scholarship Committee Interview Committee for Boards and Commissions Cibolo Valley Local Government Corporation Councilmember Thompson Place 5 Audit Committee 01-27-2015 City Council Agenda Page - 4 - Agenda No. 1 CITY COUNCIL MEMORANDUM City Council Meeting: January 27, 2015 Department: City Secretary Subject: Minutes BACKGROUND The City Council held a regular meeting on January 20, 2015. FISCAL IMPACT None RECOMMENDATION Staff recommends Council approve the minutes of the regular meeting of January 20, 2015. ATTACHMENT Minutes – regular meeting January 20, 2015. MINUTES REGULAR MEETING January 20, 2015 A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on January 20, 2015, at 6:00 p.m., in the Hal Baldwin Municipal Complex Council Chambers, 1400 Schertz Parkway, Building #4, Schertz, Texas. The following members present to-wit: Mayor Michael Carpenter Mayor Pro-Tem Daryl John Councilmember Jim Fowler Councilmember Grumpy Azzoz Councilmember Cedric Edwards Councilmember Robin Thompson Staff Present: City Manager John Kessel Deputy City Manager John Bierschwale Executive Director Brian James Chief of Staff Bob Cantu City Attorney Clarissa Rodriguez City Secretary Brenda Dennis Deputy City Secretary Donna Schmoekel Call to Order Mayor Carpenter called the meeting to order at 6:01 p.m. Invocation and Pledges of Allegiance to the Flags of the United States and the State of Texas (Mayor Pro-Tem John) Mayor Pro-Tem John provided the invocation followed by the Pledges of Allegiance to the Flags of the United States and the State of Texas. City Events and Announcements • Announcements of upcoming City Events (J. Bierschwale/B. James) No announcements were provided. • Announcements and recognitions by City Manager (J. Kessel) No announcements were provided. Presentations • Presentation/discussion and update regarding Food Trucks in the City of Schertz. (B. James/M. Sanchez/M. Harris/J. Hamilton) Mayor Carpenter recognized Development Services Director Michelle Sanchez who provided a Power Point presentation with the following information. 1-20-2015 Minutes Page - 1 - The Schertz Code of Ordinances, Chapter 34, Article II addresses two types of food and/or beverage establishments: 1) permanent brick and mortar restaurants and mobile vending units, and 2) temporary food establishments that are restricted to no more than 14 consecutive days in conjunction with a single event or celebration. Ms. Sanchez provided further details regarding the six types of vendors (i.e. vendors that drive around on the streets, temporary setups, business fair participants, and those that park within rights of ways, private property or at food parks. She stated that mobile vendors provide additional dining options within the community, bring new business opportunities to the city and is an upcoming trendy dining concept for today’s customers. Potential negative impacts may include noise and smell from cooking food(s) and increased competition for the brick and mortar restaurants and the general food service industry as a whole. Ms. Sanchez continued her presentation by providing a sampling of details on regulations that would need to be adopted by the city to oversee these types of business vendors. Examples were restrooms, and handicap accessibility, electric service, Fire & EMS access and more. Afterwards, Ms. Sanchez, and City Sanitarian Jesse Hamilton answered questions from council as well as input by potential mobile vendor/owner, Mr. Derrick Sanchez. Mayor Carpenter added his comments at the end by stating that as council considers this subject matter, we might want to thinks of things such as the long term land use for food parks/courts and think about the highest and best use of that property. Would this meet our long term goals as a city that attracts business to come to our area. We recently regulated the parking of RV’s which are similar in design to food trucks. What areas would be appropriate for these vendors to go and park to conduct business? He would like to see the Economic Development Department and the Economic Development Corporation weigh in to offer comment and look at any ordinance we might consider prior to us passing it. We will probably need to be more restrictive in the beginning and then see how things go as we move forward. Staff should craft an ordinance to share with the two economic development groups as well as the Schertz Chamber of Commerce for their input and suggestions. Mayor Carpenter moved to the presentation regarding the Animal Adoption Facility • Presentation and updates regarding the Animal Adoption Facility. (M. Harris/S. Roman) Mayor Carpenter recognized Animal Services Manager Shanna Roman who stated they had some good news to share tonight regarding the Animal Services Department. Ms. Roman stated that they received the following in donations for the shelter and/or the new adoption trailer. Ms. Roman recognized the following: 1) Samuel Clemens D.E.C.A. Club Donation towards adoption trailer 2) Anything Goes With Glass Silent auction/ Donation towards adoption trailer 3) GVEC Donation towards adoption trailer 1-20-2015 Minutes Page - 2 - 4) Homes for Pets Donation towards adoption trailer 5) Debbie Krause Assistance with organizing silent auction for adoption trailer 6) Donna Schmoekel Several donations for the shelter medical fund 7) Harriet Higgs/John Sabo Dog training classes at the shelter. 8) Harriet Higgs Donation towards adoption trailer. 7) Girl Scouts Completed merit project by volunteering at the shelter and made blankets for the animals. 8) Lowe's (O'Connor) Appreciation for allowing us to have adoption events at their location. 9) Lowe's (Schertz) Appreciation for allowing us to have adoption events at their location. 10) Mattenga's Pizzeria Silent auction for adoption trailer/Pizza fundraiser Mayor Carpenter recognized Councilmember Azzoz who thanked everyone for doing such a great job and he hopes we reach our goal one day to be a no-kill shelter. Mayor Carpenter recognized Councilmember Edwards who thanked the shelter volunteers and staff and stated his own kids volunteered there and it not only gives back to the community but also instills discipline in the young volunteers. Mayor Carpenter stated he has adopted four rescue pets from the shelter. This is the city at its best and has been going on for over 50 years. This is what we are as a community when we choose to help each other out especially for a cause like this. It is difficult work and yet rewarding. He said they do not get thanked enough; job well done. Mayor Carpenter recognized Councilmember Fowler who stated he wrote an article, “Why I love Schertz” when running for re-election of Councilmember Place #1. One more time they have just proved why he is glad to live here and is proud to serve. Presentation and discussion and update regarding Street Improvements – past, present, and future. (Item requested by Councilmember Fowler) (B. James/K. Woodlee) Mayor Carpenter recognized City Engineer Kathy Woodlee who provided the following highlights of her presentation and answered questions from Council: Street Improvements fall into two separate categories: • Major reconstruction projects funded by bonds 1-20-2015 Minutes Page - 3 - - Complete excavation, add base material, repave, curbing - Mill and Overlay (Major) • Maintenance Projects funded by the General Fund - Chipseal, Pot Hole repair, Mill and Overlay (Minor), Crack Seal, etc Future Street Improvement List – Major Reconstruction • Main Street Improvements • Northcliffe Street Reconstruction • Aviat ion Heights Street Reconstruction • Tri -County Business Park Street Reconstruction and Portion of Lookout Road • Dove Meadows Street Reconstruction • Silver Tree Reconstruction • Live Oak/Maske Road Realignment (FM 1518 to FM 3009) • Greenfield Village Subdivision Reclamation • Village Unit IV Subdivision Reclamation • Hubertus Reconstruction • Friesenhahn Reconstruction • Eckhardt Road Reconstruction • Schwab Road Reconstruction • Pfeil Road Reconstruction • Scenic Lake Drive Reconstruction • Schaefer Road Reconstruction • Weiderstein Road Extension FM 3009 to FM 1103 • Schertz Forest Street Reconstruction • Lower Seguin Road and FM 1518 Intersection Improvements Next Steps: • Prioritize Projects - Assess current roadway conditions - Collect and analyze traffic counts - Evaluate historic and current maintenance records • High End Cost Estimation • Complete Master Thoroughfare Plan • Propose Project Programing based on anticipated bond funds (5, 20, 15 years) Maintenance Projects funded by the General Fund Budget : • Micropaver Program is being updated • List will be created based on maintenance needs 1-20-2015 Minutes Page - 4 - • Second presentation to Council will occur in the future Mayor and Council thanked Ms. Woodlee for the update. Hearing of Residents • Mr. Robin Thompson, who on behalf of Operation Comfort, presented Mayor Carpenter with a plaque of appreciation for the City of Schertz in support of the 5K/10K Run – Walk they had on Saturday. • Ms. Maggie Titterington, Chamber President who provided updated information regarding the upcoming Chamber Events. Workshop • Discussion and/or possible action regarding the City Council’s Code of Ethics. (Mayor/Council) Mayor Carpenter stated that at the January 6, 2015 City Council meeting Councilmember Edwards stated that he felt the Councilmembers should all sign their names to the Code of Ethics because it would give the document more weight. A copy of the City Council’s Code of Ethics is now attached with a page added for each Councilmember to sign. Mayor and Council concurred and signed the Code of Ethics signature page and provided that copy to the City Secretary. • Discussion and/or possible action regarding the City Council’s Code of Conduct and Procedure related to voting and abstentions. (Mayor/Council/C. Zech) Mayor Carpenter stated that at the January 6, 2015, City Council meeting a discussion was held with City Attorney Charles Zech who explained the way the current city charter reads regarding voting and abstentions. It takes a vote of three to take any action. When an individual abstains, this actually acts as a ‘no’ vote; the reason for that is it counts toward the quorum for the purposes of a vote. He further clarified that three votes of ‘yes’ would be for any action and not just limited to ordinances and/or resolutions. According to the Texas Local Government Code law, when you have an actual conflict of interest, you are required to file a disclosure statement and abstain from voting. Under Roberts Rules and under case law when that occurs you are not counted toward the quorum for the purposes of the vote. This doesn’t help the City of Schertz because of the charter provisions that say it takes three (yes) votes for action to be taken. City Council authorized City Attorney Charles Zech and City Staff to outline some steps for handling abstaining votes along with recommendations for council to consider. City Staff worked with the City Attorney to review the City Council Rules of Conduct and Procedures regarding the proposed language. Council members proceeded to discuss the proposed language and select option “A” or “B” for each section. A continued discussion commenced between councilmembers concerning the issues of what 1-20-2015 Minutes Page - 5 - constitutes a tie with either a nay or abstention vote. City Attorney Clarissa Rodriguez explained that the options presented tonight for council is to decide how they wish to proceed in the future. Councilmember Thompson made a motion, seconded by Councilmember Edwards to consider any vote by a councilmember that is not an aye vote or a nay vote shall be counted as a nay vote unless it is an abstention as required by law. The vote was unanimous, with Mayor Pro-Tem John, Councilmembers Fowler, Azzoz, Edwards and Thompson voting for and no one voting no. Motion passed. Mayor Carpenter asked that the City Attorney’s office to draft an ordinance and language necessary for our rules and procedures to address that. Discussion and Action Items 1. Minutes - Consideration and/or action regarding the approval of the minutes the Regular Meeting of January 13, 2015. (J. Kessel/B. Dennis) Mayor Carpenter recognized Councilmember Azzoz who moved, seconded by Councilmember Fowler to approve the minutes of the regular meeting of January 13, 2015. The vote was 4-0-1, with Mayor Pro-Tem John, Councilmembers Fowler, Azzoz, and Thompson voting for, no one voting no, and Councilmember Edwards abstaining. Motion passed. 2. Ordinance No. 15-T-05 – Consideration and/or action approving an Ordinance authorizing a Budget Amendment to the Grant Fund 405 for the Award from the FY13 State Homeland Security Program through the Texas Homeland Security State Administrative Agency. (First & Final) (J. Bierschwale/J. Correu) The following was read into record: ORDINANCE NO. 15-T-05 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING A BUDGET AMENDMENT TO THE GRANT FUND 405 FOR THE AWARD FROM THE FY13 STATE HOMELAND SECURITY PROGRAM THROUGH THE TEXAS HOMELAND SECURITY STATE ADMINISTRATIVE AGENCY; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT WITH THIS ORDINANCE; AND PROVIDING AN EFFECTIVE DATE AND DECLARING AN EMERGENCY Mayor Carpenter recognized Deputy City Manager John Bierschwale who introduced this item stating the City was awarded a grant for $65,564 from the FY13 State Homeland Security Program through the Texas Homeland Security State Administrative Agency (THSSAA) for the project titled: City of Schertz Spillman Interoperability Insight Interface. The City is not required to match any funds. The application for this grant was 1-20-2015 Minutes Page - 6 - originally approved by council on 10-29-2013. This ordinance is to amend the Fiscal Year 2014-15 budget in the Grant Fund 405. He stated the goal is to provide essential data management software that will allow the police department to improve the effectiveness of investigations by sharing information with other communities and public safety agencies, tracking of criminal incidents and trends to improve investigations and prevent large scale incidents. Staff recommends approval of first and final reading. Mayor Carpenter recognized Councilmember Thompson who moved, seconded by Councilmember Edwards to approve Ordinance No. 15-T-05 on first and final. The vote was unanimous, with Mayor Pro-Tem John, Councilmembers Fowler, Azzoz, Edwards, and Thompson voting for, no one voting no. Motion passed. 3. Employee Compensation – Discussion and possible action regarding the City’s Employee Compensation Plan. (J. Kessel/Council) Mayor Carpenter recognized Councilmember Azzoz who stated he had a question for City Manager John Kessel. An internal survey that was done on August 8, 2014 indicated two big issues were the pay and internal communication. Then another study that was done with the University of Texas at Austin came back with the same thing, that the biggest concern of employees was pay. His question is that once a company is selected to do the new proposed classification and compensation study, how long will it take to get the study done? Mr. Kessel answered it would take about 4 to 5 months. Councilmember Azzoz stated we have the $300,000 set aside and budgeted. It has been a year since the other surveys have been completed and while the new study we are going to do is important, why can’t we use this money for pay increases now? Mayor Carpenter recognized Councilmember Azzoz who made a motion to take the lower 40% of employees and award them the $200 per month using the $300,000 budgeted amount. Mayor Carpenter asked for a second; as there was no second, the motion failed. Mayor Carpenter recognized Councilmember Thompson who stated we have discussed this for a month now and several prior motions on this matter have subsequently failed. He made a motion to not take this discussion up again on this subject until after we receive the results of the classification and compensation study. Councilmember Fowler seconded the motion. Mayor Carpenter recognized Councilmember Fowler who stated he thinks the indication of council has been that we are not really comfortable with giving out this money until we get the analysis in order to do a proper and fair distribution of funds to employees. If we continue to discuss this and if the main concern does not change (that we want to see the analysis first) then it would just be a waste of our time to continue discussing this. Councilmember Edwards said we talked about this earlier and we said we had to have something concrete to go forward. Four weeks ago we made a motion and voted to wait 1-20-2015 Minutes Page - 7 - for the study results and now we are doing this all over again. Council continued discussion of the pros and cons on waiting for the study before distributing the money. Mayor Carpenter recognized Councilmember Thompson who moved, seconded by Councilmember Fowler to not take this discussion up again on this subject until after we receive the results of the classification and compensation study. The vote was 4-1-0, with Mayor Pro-Tem John, Councilmembers Fowler, Edwards, and Thompson voting yes, and Councilmember Azzoz voting no. Motion passed. Roll Call Vote Confirmation Deputy City Secretary Donna Schmoekel provided the roll call vote information for agenda items 1 through 3 Requests and Announcements 4. Announcements by City Manager • Citizen Kudos • Recognition of City employee actions • New Departmental initiatives Mayor Carpenter recognized City Manager John Kessel who stated that on next weeks agenda management will be bringing forth an item for action; a recommendation to council on a contract and work plan for conducting the classification and compensation study. Concurrent with that we have a merit program each year that is a two step average across the city program; we intend to do that early this year for our employees. This is going to have a small impact in that some staff members who will have a little less time to complete their annual work program/goals. However, they will also have the opportunity up to have an additional four percent raise. Some may have in a six month window an 8 percent raise, 6, or 4 percent raise; the average employee will have 4 percent; some with 2 percent and some with zero. This will be a significant thing while we wait for the study to be completed. Mr. Kessel also pointed out that the City Attorney tonight is Ms. Clarissa Rodriguez who is covering for Mr. Charles Zech. He thanked her for this. 5. Requests by Mayor and Councilmembers that items be placed on a future City Council agenda. No items requested. 6. Requests by Mayor and Councilmembers to City Manager and Staff for information. No items requested. 7. Announcements by Mayor and Councilmembers 1-20-2015 Minutes Page - 8 - • City and community events attended and to be attended • City Council Committee and Liaison Assignments (see assignments below) • Continuing education events attended and to be attended • Recognition of actions by City employees • Recognition of actions by community volunteers • Upcoming City Council agenda items Mayor Carpenter recognized Councilmember Fowler who stated he attended the following: A meeting in Seguin for the SSLGC group. Some good things are going on in the water department with the purchase of needed equipment for the future. Today at 3:00 p.m. he attended a meeting on the natatorium facility and they are close to awarding a contract for hiring a manager-at-risk. The manager will start by doing an analysis of our proposal of the building(s) and figure out if it is within our budget. They should have more information in March or April. The update and information Schertz Chamber President Maggie Titterington gave today regarding the activities and infrastructure that has been established was very good and lets people know what all is going on in our community and how they are working with our small businesses. Kuddos to her. Tomorrow morning from 9:30-11:00 a.m., he will meet with some pastors and citizens in the city to determine what they can do to fill a much needed void of matching church volunteer groups that can maybe assist those citizens in our community who need help. Mayor Carpenter recognized Councilmember Thompson who stated it was a pleasure for him to represent Schertz in the Selma-Schertz 10K Run this past weekend and we should continue to be sponsors for this event in the future. Mayor Carpenter provided his thanks to those who attended the funeral services this past week for 1) Garden Ridge Mayor Dalton, and also 2) Councilmember John’s grandmother, Mrs. Lillie John. Thank you for being there for their respective families and representing the City of Schertz. Adjournment Meeting was adjourned at 8:41 p.m. __________________________________ Michael R. Carpenter, Mayor ATTEST: __________________________________ Donna Schmoekel, Deputy City Secretary 1-20-2015 Minutes Page - 9 - Agenda No. 2 CITY COUNCIL MEMORANDUM City Council Meeting: January 27, 2015 Department: Human Resources Subject: Professional Services Agreement for the City Classification and Compensation Study BACKGROUND The Schertz City Council identified a Classification and Compensation Study for City employees as a top priority in the City’s budget process. The City of Schertz is proposing to conduct a complete classification and compensation study in attempts to stay competitive within the competing labor market, to remain fair and equitable, to properly classify employee positions, and to retain productive employees long- term. As the City prepares to reach the 50,000 population figure, it is recognized that proper staffing levels and staff knowledge, skills, and abilities are two of the most significant factors in determining our future success. It is also recognized that 100% of our service delivery comes from our staff. This study will help prepare both an immediate set of recommendations and develop a longer term, five year strategy to positively impact our current staff and to ensure our future success. The City of Schertz has not conducted a complete compensation study in approximately 10 years. In 2011, a partial compensation study was conducted internally and neither it nor the 2004 study included a classification update. The City Council budgeted $85,000 to conduct the Classification and Compensation Study. Additionally, the City Council has budgeted $300,000 for an initial implementation of the study, recognizing that additional implementation funds may be required. The City released an RFQ in search for a 3rd party provider to conduct a classification and compensation study. The City received eight bid proposals from various vendors. A panel of six City staff reviewed the proposals and, through a scoring system, selected three finalists to interview. After the interviews were conducted, the panel, utilizing the same scoring system, has recommended Evergreen Solutions as the most qualified respondent. Goal 1. Properly classify positions in the City to reflect actual knowledge, skills, and abilities, as well as the essential duties of each position. 2. To have competitive compensation within Schertz’s competing labor market and benchmark cities. 3. To promote internal and external compensation equity. 4. To foster productive employees, in part, through a fair and balanced compensation system. Community Benefit This effort would benefit the City by increasing the organization’s ability to attract and retain high quality employees. Furthermore, productive employees would be reinforced to stay and continue to effectively serve the members of the community. Finally, this effort will assist the City of Schertz in its efforts to hire tomorrow’s leadership today as the City prepares to reach 50,000 population. Summary of Recommended Action Staff recommends Council approve the selection of Evergreen Solutions to conduct the classification and compensation study and set the total contract amount. FISCAL IMPACT $62,000 + $10,000 Contingency RECOMMENDATION Approve recommendations from staff to enter into an agreement with Evergreen Solutions to complete the classification and compensation study. ATTACHMENT(S) None RESOLUTION NO. 15-R-08 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH EVERGREEN SOLUTIONS TO CONDUCT A CITY STAFF CLASSIFICATION AND COMPENSATION STUDY AND AUTHORIZING A CONTINGENCY AMOUNT WHEREAS, The City of Schertz (the “City”) City Council identified a classification and compensation study for City employees as a top priority in the City’s budget process; and WHEREAS, the City Staff has identified the necessity to conduct a professional classification and compensation study for staff positions for the purpose of fulfilling four (4) key goals: 1. Properly classify positions in the City to reflect actual knowledge, skills, and abilities, as well as the essential duties of each position. 2. To have competitive compensation within Schertz’s competing labor market and benchmark cities. 3. To promote internal and external compensation equity. 4. To foster productive employees, in part, through a fair and balanced compensation system; and WHEREAS, the City released an RFQ and subsequently received eight (8) bids and, based on the scoring, three (3) vendors were interviewed; and WHEREAS, based on the scoring, City staff hereby recommends that the City Council approve the selection of Evergreen Solutions to conduct a classification and compensation study and to set the total contract scope and amount; and WHEREAS, the total cost of the study is sixty two thousand dollars and zero cents ($62,000.00); WHEREAS, the City staff recommends that a contingency fund of ten thousand dollars and zero cents ($10,000.00) be authorized for additional consultation on an as needed basis. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The City Council hereby authorizes the City Manager to execute a professional services agreement with Evergreen Solutions, LLC in the amount of sixty two thousand dollars and zero cents ($62,000.00) for the conduct of a classification and compensation study. Section 2. The City Council hereby authorizes that a contingency fund of ten thousand dollars and zero cents ($10,000.00) be authorized for additional consultation on the classification and compensation study on an as needed basis. Section 3. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 4. All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 5. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 6. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 7. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. Section 8. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this ____ day of _________, 2015. CITY OF SCHERTZ, TEXAS Mayor, Michael R. Carpenter ATTEST: City Secretary, Brenda Dennis (CITY SEAL) - 2 - Schertz 2015 Compensation Study Agreement Page 1 CITY OF SCHERTZ 2015 COMPENSATION STUDY AGREEMENT THE STATE OF TEXAS § § GUADALUPE COUNTY § This 2015 Compensation Study Agreement (“Agreement”) is made and entered by and between the City of Schertz, Texas, (the “City”) a Texas municipality, and Evergreen Solutions, LLC (“Professional”). Section 1. Duration. This Agreement shall become effective upon execution by the City and shall remain in effect until satisfactory completion of the Scope of Work unless terminated as provided for in this Agreement. Section 2. Scope of Work. (A) Professional shall perform the Services as more particularly described in the Scope of Work attached hereto as Exhibit “A”. The work as described in the Scope of Work constitutes the “Project”. Unless otherwise provided in the Scope of Work, the anticipated submittal of all Project deliverables is immediately upon completion of the Project. (B) The Quality of Services provided under this Agreement shall be of the level of professional quality performed by Professionals regularly rendering this type of service. (C) The Professional shall perform its Services for the Project in compliance with all statutory, regulatory and contractual requirements now or hereafter in effect as may be applicable to the rights and obligations set forth in the Agreement. (D) The Professional may rely upon the accuracy of reports and surveys provided to it by the City except when defects should have been apparent to a reasonably competent professional or when it has actual notice of any defects in the reports and surveys. Section 3. Compensation. (A) The Professional shall be paid in the manner set forth in Exhibit “B” and as provided herein. Schertz 2015 Compensation Study Agreement Page 2 (B) Billing Period: The Professional may submit monthly, or less frequently, an invoice for payment based on the estimated completion of the described tasks and approved work schedule as provided for in Exhibit “B”. Subject to Chapter 2251, Texas Government Code (the “Prompt Payment Act”), payment is due within thirty (30) days of the City’s receipt of the Professional’s invoice. Interest on overdue payments shall be calculated in accordance with the Prompt Payment Act. (C) Reimbursable Expenses: Any and all reimbursable expenses related to the Project shall be included in the scope of services (Exhibit A) and accounted for in the total contract amount in Exhibit “B”. If these items are not specifically accounted for in Exhibit “B” they shall be considered subsidiary to the total contract amount. Section 4. Changes to the Project Work; Additional Work. (A) Changes to Work: Professional shall make such revisions to any work that has been completed as are necessary to correct any errors or omissions as may appear in such work. If the City finds it necessary to make changes to previously satisfactorily completed work or parts thereof, the Professional shall make such revisions if requested and as directed by the City and such services will be considered as additional work and paid for as specified under following paragraph. (B) Additional Work: The City retains the right to make changes to the Scope of Work at any time by a written order. Work that is clearly not within the general description of the Scope of Work and does not otherwise constitute special services under this Agreement must be approved in writing by the City by supplemental agreement before the additional work is undertaken by the Professional. If the Professional is of the opinion that any work is beyond that contemplated in this Agreement and the Scope of Work govern ing the project and therefore constitutes additional work, the Professional shall promptly notify the City of that opinion, in writing. If the City agrees that such work does constitute additional work, then the City and the Professional shall execute a supplemental agreement for the additional work and the City shall compensate the Professional for the additional work on the basis of the rates contained in the Scope of Work. If the changes deduct from the extent of the Scope of Work, the contract sum sha ll be adjusted accordingly. All such changes shall be executed under the conditions of the original Agreement. Any work undertaken by Professional not previously approved as additional work shall be at risk of the Professional. Schertz 2015 Compensation Study Agreement Page 3 Section 5. Time of Completion. The prompt completion of the services under the Scope of Work is critical to the City. Unnecessary delays in providing services under a Scope of Work shall be grounds for dismissal of the Professional and termination of this Agreement without any or further liability to the City other than a prorated payment for necessary, timely, and conforming work done by Professional prior to the time of termination. The Scope of Work shall provide, in either calendar days or by providing a final date, a t ime of completion prior to which the Professional shall have completed all tasks and services described in the Scope of Work. Section 6. Insurance. Before commencing work under this Agreement, Professional shall obtain and maintain the liability insurance provided for in attached Exhibit C throughout the term of this Agreement and thereafter as required herein . In addition to the insurance provided for in Exhibit C, Professional shall maintain the following limits and types of insurance: Professional Liability Insurance: professional errors and omissions liability insurance with limits of liability not less than $1,000,000 per occurrence covering all work performed by the Professional, its employees, sub-contractors, or independent contractors. If this coverage can only be obtained on a “claims made” basis, the certificate of insurance must clearly state coverage is on a “claims made” basis and coverage must remain in effect for at least two years after final payment with the Professional continuing to furnish the City certificates of insurance. Workers Compensation Insurance: The Professional shall carry and maintain during the term of this Agreement, workers compensation and employers liability insurance meeting the requirements of the State of Texas on all the Professional’s employees carrying out the work involved in this contract. General Liability Insurance: The Professional shall carry and maintain during the term of this Agreement, general liability insurance on a per occurrence basis with limits of liability not less than $1,000,000 for each occurrence and for fire damage. For Bodily Injury and Property Damage, coverage shall be no less than $1,000,000. As a minimum, coverage for Premises, Operations, Products and Completed Operations shall b e $2,000,000. This coverage shall protect the public or any person from injury or property damages sustained Schertz 2015 Compensation Study Agreement Page 4 by reason of the Professional or its employees carrying out the work involved in this Agreement. The general aggregate shall be no less than $2,000,000. Automobile Liability Insurance: Professional shall carry and maintain during the term of this Agreement, automobile liability insurance with either a combined limit of at least $1,000,000 per occurrence for bodily injury and property damage or sp lit limits of at least $1,000,000 for bodily injury per person per occurrence and $1,000,000 for property damage per occurrence. Coverage shall include all owned, hired, and non -owned motor vehicles used in the performance of this contract by the Professional or its employees. Subcontractor: In the case of any work sublet, the Professional shall require subcontractor and independent contractors working under the direction of either the Professional or a subcontractor to carry and maintain the same workers compensation and liability insurance required of the Professional. Qualifying Insurance: The insurance required by this Agreement shall be written by non- assessable insurance company licensed to do business in the State of Texas and currently rated "B+" or better by the A.M. Best Companies. All policies shall be written on a “per occurrence basis” and not a “claims made” form. Evidence of such insurance shall be attached as Exhibit “D”. Section 7. Miscellaneous Provisions. (A) Subletting. The Professional shall not sublet or transfer any portion of the work under this Agreement or any Scope of Work issued pursuant to this Agreement unless specifically approved in writing by the City, which approval shall not be unreasonably withheld. Subcontractors shall comply with all provisions of this Agreement and the applicable Scope of Work. The approval or acquiescence of the City in the subletting of any work shall not relieve the Professional of any responsibility for work done by such subcontractor. (B) Ownership of Documents. Upon completion or termination of this Agreement, all documents prepared by the Professional or furnished to the Professional by the City shall be delivered to and become the property of the City. All drawings, charts, calcula tions, plans, specifications and other data, including electronic files and raw data, prepared under or pursuant to this Agreement shall be made available, upon request, to the City without restriction or limitation on the further use of such materials PROVIDED, HOWEVER, THAT SUCH MATERIALS ARE NOT INTENDED OR REPRESENTED TO BE SUITABLE FOR REUSE BY THE CITY OR OTHERS. ANY REUSE WITHOUT PRIOR VERIFICATION OR ADAPTATION BY THE PROFESSIONAL FOR THE SPECIFIC PURPOSE INTENDED Schertz 2015 Compensation Study Agreement Page 5 WILL BE AT THE CITY’S SOLE RISK AND WITHOUT LIABILITY TO THE PROFESSIONAL. Where applicable, Professional shall retain all pre-existing proprietary rights in the materials provided to the City but shall grant to the City a non -exclusive, perpetual, royalty-free license to use such proprietary information solely for the purposes for which the information was provided. The Professional may, at Professional’s expense, have copies made of the documents or any other data furnished to the City under or pursuant to this Agreement. (C) Professional's Seal. To the extent that the Professional has a professional seal it shall placed on all documents and data furnished by the Professional to the City. All work and services provided under this Agreement will be performed in a good and workmanlike fashion and shall conform to the accepted standards and practices of the Professional’s industry. The plans, specifications and data provided by Professional shall be adequate and sufficient to enable those performing the actual work to perform the work as and within the time contemplated by the City and Professional. The City acknowledges that Professional has no control over the methods or means of work nor the costs of labor, materials or equipment. Unless otherwise agreed in writing, any estimates of costs by the Professional are for informational purposes only and are not guarantees. (D) Compliance with Laws. The Professional shall comply with all federal, state and local laws, statutes, ordinances, rules and regulations, and the orders and decree s of any courts, administrative, or regulatory bodies in any matter affecting the performance of this Agreement, including, without limitation, worker’s compensation laws, minimum and maximum salary and wage statutes and regulations, and licensing laws and regulations. When required, the Professional shall furnish the City with satisfactory proof of compliance. (E) Independent Contractor. Professional acknowledges that Professional is an independent contractor of the City and is not an employee, agent, o fficial or representative of the City. Professional shall not represent, either expressly or through implication, that Professional is an employee, agent, official or representative of the City. Income taxes, self-employment taxes, social security taxes and the like are the sole responsibility of the Professional. (F) Non-Collusion. Professional represents and warrants that Professional has not given, made, promised or paid, nor offered to give, make, promise or pay any gift, bonus, commission, money or other consideration to any person as an inducement to or in order to obtain the work to be provided to the City under this Agreement. Professional further agrees that Professional shall not accept any gift, bonus, commission, money, or other consideration from any person (other than from the City pursuant to this Agreement) for any of the services performed by Professional under or related to this Agreement. If any such gift, bonus, commission, money, or other consideration is received by or offered to Schertz 2015 Compensation Study Agreement Page 6 Professional, Professional shall immediately report that fact to the City and, at the sole option of the City, the City may elect to accept the consideration for itself or to take the value of such consideration as a credit against the compensation otherw ise owing to Professional under or pursuant to this Agreement. (G) Force Majeure. If the performance of any covenant or obligation to be performed hereunder by any party is delayed as a result of circumstances which are beyond the reasonable control of such party (which circumstances may include, without limitation, pending litigation, acts of God, war, acts of civil disobedience, fire or other casualty, shortage of materials, adverse weather conditions [such as, by way of illustration and not of limitation, severe rain storms or below freezing temperatures, or tornados] labor action, strikes or similar acts, moratoriums or regulations or actions by governmental authorities), the time for such performance shall be extended by the amount of time of such de lay, but no longer than the amount of time reasonably occasioned by the delay. The party claiming delay of performance as a result of any of the foregoing force majeure events shall deliver written notice of the commencement of any such delay resulting from such force majeure event not later than seven (7) days after the claiming party becomes aware of the same, and if the claiming party fails to so notify the other party of the occurrence of a force majeure event causing such delay and the other party sha ll not otherwise be aware of such force majeure event, the claiming party shall not be entitled to avail itself of the provisions for the extension of performance contained in this subsection. (H) In the case of any conflicts between the terms of this Agr eement and wording contained within the Scope of Services, this Agreement shall govern. The Scope of Services is intended to detail the technical scope of services, fee schedule, and contract time only and shall not dictate Agreement terms. Section 8. Termination. (A) This Agreement may be terminated: (1) By the mutual agreement and consent of both Professional and City; (2) By either party, upon the failure of the other party to fulfill its obligations as set forth in either this Agreement or a Scope of Work issued under this Agreement; (3) By the City, immediately upon notice in writing to the Professional, as consequence of the failure of Professional to perform the services contemplated by this Agreement in a timely or satisfactory manner; (4) By the City, at will and without cause upon not less than thirty (30) days written Schertz 2015 Compensation Study Agreement Page 7 notice to the Professional. (B) If the City terminates this Agreement pursuant to Section 5 or subsection 8(A)(2) or (3), above, the Professional shall not be entitled to any fees or reimbursable expenses other than the fees and reimbursable expenses then due and payable as of the time of termination and only then for those services that have been timely and adequately performed by the Professional considering the actual costs incurred by the Professional in performing work to date of termination, the value of the work that is nonetheless usable to the City, the cost to the City of employing another Professional to complete the work required and the time required to do so, and other factors that affect the value to the City of the work performed at time of termination. In the event of termination that is not the fault of the Professional, the Professional shall be compensated for all basic, special, and additional services actually performed prior to termination, together with any reimbursable expenses then due. Section 9. Indemnification. Professional agrees to indemnify and hold the City of Schertz, Texas and all of its present, future and former agents, employees, officials and representatives harmless in their official, individual and representative capacities from any and all claims, demands, causes of action, judgments, liens and expenses (including attorney's fees, whether contractual or statutory), costs and damages (whether common law or statutory), costs and damages (whether common law or statutory, and whether actual, punitive, consequential or incidental), of any conceivable character, for injuries to persons (including death) or to property (both real and personal) created by, arising from or in any manner relating to the services or goods performed or provided by Professional – expressly including those arising through strict liability or under the constitutions of the United States or Texas – BUT ONLY TO THE EXTENT ALLOWABLE BY SEC. 271.904(a) OF THE TEXAS LOCAL GOVERNMENT CODE AS APPLICABLE. Section 10. Notices. Any notice required or desired to be given from one party to the other party to this Agreement shall be in writing and shall be given and shall be deemed to have been served and received (whether actually received or not) if (i) delivered in person to the address set forth below; (ii) deposited in an official depository under the regular care and custody of the United States Postal Service located within the confines of the United States of America and sent by certified mail, return receipt requested, and addressed to such party at the address hereinafter specified; or (iii) delivered to such party by courier receipted delivery. Either party may designate another address within the confines of the continental United States of America for notice, but until written notice of such change is actually received by the other party, the last address of such party designated for notice shall remain such party's address for notice. Schertz 2015 Compensation Study Agreement Page 8 Section 11. No Assignment. Neither party shall have the right to assign that party's interest in this Agreement without the prior written consent of the other party. Section 12. Severability. If any term or provision of this Agreement is held to be illegal, invalid or unenforceable, the legality, validity or enforceability of the remaining terms or provisions of this Agreement shall not be affected thereby, and in lieu of each such illegal, invalid or unenforceable term or provision, there shall be added automatically to this Agreement a legal, valid or enforceable term or provision as similar as possible to the term or provision declared illegal, invalid or unenforceable. Section 13. Waiver. Either City or the Professional shall have the right to waive any requirement contained in this Agreement that is intended for the waiving party's benefit, but, except as otherwise provided herein, such waiver shall be effective only if in writing executed by the party for whose benefit s uch requirement is intended. No waiver of any breach or violation of any term of this Agreement shall be deemed or construed to constitute a waiver of any other breach or violation, whether concurrent or subsequent, and whether of the same or of a different type of breach or violation. Section 14. Governing Law; Venue. This Agreement and all of the transactions contemplated herein shall be governed by and construed in accordance with the laws of the State of Texas. The provisions and obligations of this Agreement are performable in Guadalupe County, Texas such that exclusive venue for any action arising out of this Agreement shall be in Guadalupe County, Texas. Section 15. Paragraph Headings; Construction. The paragraph headings contained in this Agreement are for convenience only and shall in no way enlarge or limit the scope or meaning of the various and several paragraphs hereof. Both parties have participated in the negotiation and preparation of this Agreement and this Agreement shall not be construed either more or less strongly against or for either party. Section 16. Binding Effect. Except as limited herein, the terms and provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, devisees, personal and legal representatives, successors and assigns. Section 17. Gender. Within this Agreement, words of any gender shall be held and construed to include any other gender, and words in the singular number shall be held and construed to include the plural, unless the context otherwise requires. Section 18. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, and all of which shall constitute but one and the same instrument. Schertz 2015 Compensation Study Agreement Page 9 Section 19. Exhibits. All exhibits to this Agreement are incorporated herein by reference for all purposes wherever reference is made to the same. Section 20. Entire Agreement. It is understood and agreed that this Agreement contains the entire agreement between the parties and supersedes any and all prior agreements, arrangements or understandings between the parties relating to the subject matter. No oral understandings, statements, promises or inducements contrary to the terms of this Agreement exist. This Agreement cannot be changed or terminated orally. Section 21. Relationship of Parties. Nothing contained in this Agreement shall be deemed or construed by the parties hereto or by any third party to create the relationship of principal and agent or of partnership or of joint venture or of any association whatsoever between the parties, it being expressly understood and agreed that no provision contained in this Agreement nor any act or acts of the parties hereto shall be deemed to create any relationship between the parties other than the relationship of independent parties contracting with each other solely for the purpose of effecting the provisions of this Agreement. Section 22. Right To Audit. City shall have the right to examine and audit the books and records of Professional with regards to the work described in Exhibit A, or any subsequent changes, at any reasonable time. Such books and records will be maintained in accordance with generally accepted principles of accounting an d will be adequate to enable determination of: (1) the substantiation and accuracy of any payments required to be made under this Agreement; and (2) compliance with the provisions of this Agreement. 23. Dispute Resolution. In accordance with the provisions of Subchapter I, Chapter 271, TEX. LOCAL GOV’T CODE, the parties agree that, prior to instituting any lawsuit or other proceeding arising from a dispute under this agreement, the parties will first attempt to resolve the dispute by taking the following steps: (1) A written notice substantially describing the nature of the dispute shall be delivered by the dissatisfied party to the other party, which notice shall request a written response to be delivered to the dissatisfied party not less than 5 days af ter receipt of the notice of dispute. (2) If the response does not reasonably resolve the dispute, in the opinion of the dissatisfied party, the dissatisfied party shall give notice to that effect to the other party whereupon each party shall appoint a person having authority over the activities of the respective parties who shall promptly meet, in person, in an effort to resolve the dispute. (3) If those persons cannot or do not resolve the dispute, then the parties shall each appoint a person from the highest tier of managerial responsibility within each respective party, who shall then promptly meet, in person, in an effort to resolve the dispute. Schertz 2015 Compensation Study Agreement Page 10 24. Disclosure of Business Relationships/Affiliations; Conflict of Interest Questionnaire. Professional represents that it is in compliance with the applicable filing and disclosure requirements of Chapter 176 of the Texas Local Government Code. EXECUTED, by the City on this the ______ day of _________________, 20 ____. CITY: PROFESSIONAL: By:_________________________ By:__________________________ Name: John C. Kessel Name:_______________________ Title: City Manager Title:________________________ ADDRESS FOR NOTICE: CITY PROFESSIONAL City of Schertz Evergreen Solutions, LLC Attn: John C. Kessel, City Manager Dr. Jeff Ling 1400 Schertz Parkway 2852 Remington Green Circle, Suite 101 Schertz, Texas 78154 Tallahassee, Florida 32308 with a copy to: City Attorney City of Schertz, Texas Attn: Charles E. Zech 2517 N. Main Avenue San Antonio, Texas 78212 Exhibit “A” Scope of Services Page A-1 Schertz 2015 Compensation Study Agreement Exhibit “A” Scope of Services Timeline: Evergreen will submit the final report within 150 days after the contract award. Task 1.0 - Project Initiation TASK ACTIVITIES 1.1 Discuss with the City’s Project Manager (CPM) the following objectives:  understand the City’s mission and current compensation philosophy (if any);  review our proposed methodology, approach, and project work plan to identify any necessary revisions and to assess any concerns;  reach agreement on a schedule for the project including all assignments and project milestones/deliverables; and  establish an agreeable communication schedule. 1.2 Identify potential challenges and opportunities for the study. Discuss the strategic direction of the City and some of the short- and long-term priorities. This activity serves as the basis for assessing where the City is going and what type of pay plan will reinforce current and future goals. 1.3 Obtain relevant materials, including:  any previous projects, research, evaluations, or other studies that may be relevant to this project;  organizational charts for the departments and divisions, along with related responsibility descriptions;  current position and classification descriptions, salary schedule(s), and classification system;  strategic business plans, budgets; and  personnel policies and procedures, and the step placement policies. 1.4 Review and edit the project work plan and submit a schedule for the completion of each project task. KEY PROJECT MILESTONES Exhibit “A” Scope of Services Page A-2 Schertz 2015 Compensation Study Agreement  Comprehensive project management plan  Comprehensive database of City employees Task 2.0 - Collect and Review Current Environmental Data TASK ACTIVITIES 2.1 Schedule and conduct employee orientation sessions. 2.2 Meet with department heads/supervisors to obtain relevant information and statistical/anecdotal data on specific compensation issues and policies. Obtain insight into perceived current compensation system strengths and weaknesses. 2.3 Hold focus groups with a sample of employees to obtain additional relevant information and statistical/anecdotal data on specific compensation issues and policies. 2.4 Work with the CPM to administer the JATs and MITs. Our staff utilizes a web-based tool for data collection, but we can provide paper copies as well as those for classifications without computers or Internet access. We will seek approval from the CPM before distribution of the JAT/MIT questionnaire. 2.5 Review any data provided by the City that may provide additional relevant insight. 2.6 Review internal career ladders and make recommendations to keep positions competitive. KEY PROJECT MILESTONES  JAT and MIT distribution  Department head/supervisor interviews  Employee focus groups and orientation sessions Task 3.0 - Collect and Review Current Environmental Data TASK ACTIVITIES 3.1 Obtain the existing pay structure and compensation philosophy. Review the existing pay structure and look for potential problems to be resolved. 3.2 Determine the strengths and weaknesses of the current pay plan(s). Exhibit “A” Scope of Services Page A-3 Schertz 2015 Compensation Study Agreement 3.3 Complete an assessment of current conditions that details the pros and cons of the current system as well as highlights areas for potential improvement in the final adopted solution. KEY PROJECT MILESTONES  Review of existing compensation plan(s)  Assessment of current conditions Task 4.0 – Develop Compensation Philosophy TASK ACTIVITIES 4.1 Conduct a thorough review of all background materials related to the City’s compensation system. 4.2 Review information from department head/supervisor interviews. 4.3 Make recommendation for compensation philosophy based on input from previous steps. 4.4 Document accepted compensation philosophy based on input from the CPM. KEY PROJECT MILESTONE  Compensation philosophy Task 5.0 – Evaluate and Build Projected Classification Plan TASK ACTIVITIES 5.1 Review all draft class specifications with the CPM. 5.2 Review the work performed by each classification and score. The review includes an evaluation of supervisory comments. 5.3 Review JAT scores and identify the classification of positions. 5.4 Schedule and conduct additional follow up with employees for jobs where uncertainty exists over data obtained from the JATs. 5.5 Develop preliminary recommendations for the classification structure. The classification system designed at this point would be based solely on internal equity relationships and would be guided by the JAT scores for each classification. Essentially, a structure of classifications would be established, and classifications with similar scoring would be grouped into pay grades. Spacing Exhibit “A” Scope of Services Page A-4 Schertz 2015 Compensation Study Agreement between jobs would be determined, and each classification would be assigned to a pay grade. The final decision on the minimums and maximums of the pay grades would be determined after the market data have been collected. 5.6 Review recommendations with the CPM. 5.7 Conduct four employee engagement sessions for employees explain the results of the JATs. KEY PROJECT MILESTONES  JAT scores by class  Recommended classification changes  Preliminary job structure based on internal equity Task 6.0 – Identify List of Market Salary Benchmarks TASK ACTIVITIES 6.1 Conduct a thorough review of all materials to date, including employee database, classification listing, interviews, compensation review, and discussions with the CPM. 6.2 Identify, from the initial review, a list of classifications (benchmarks) to include in the labor market survey. 6.3 Submit the proposed list of positions to the CPM for review. 6.4 Based on the CPM’s review, make revisions to the benchmark list and finalize consistent with Evergreen’s analysis. KEY PROJECT MILESTONES  Preliminary list of benchmark classifications  Final list of benchmark positions for the external labor market assessment Task 7.0 – Identify Approved List of Targets TASK ACTIVITIES 7.1 For each employee group, review with the CPM peer organizations that must be included in the survey. Exhibit “A” Scope of Services Page A-5 Schertz 2015 Compensation Study Agreement 7.2 Develop a preliminary list of organizations for the external labor market survey, placing a comparative emphasis on characteristics such as:  size of the organization;  geographic proximity to the Schertz area;  economic and budget characteristics; and  other demographic data. 7.3 Develop a list of survey targets by employee group. Develop a system for use of secondary data including potential sources and weighting of secondary data, if necessary. 7.4 Review survey methodology with the CPM and refine survey methodology prior to distribution of survey. 7.5 After approval of survey methodology, develop contact list of peer organizations and notify peers of impending survey. KEY PROJECT MILESTONES  Initial list of survey peers  Survey methodology  Final list of survey organizations and contacts Task 8.0 – Conduct Market Survey and Provide External Assessment Summary TASK ACTIVITIES 8.1 Prepare a customized external labor market salary survey for the CPM’s approval. D iscuss questions and categories for the market survey with the CPM. 8.2 Contact the targets for electronic completion of the survey. Provide paper copies by fax, if requested. 8.3 Conduct necessary follow-up through e-mails, faxes, and phone calls. 8.4 Collect and enter survey results into Evergreen Solutions’ electronic data analysis tools. 8.5 Validate all data submitted. Exhibit “A” Scope of Services Page A-6 Schertz 2015 Compensation Study Agreement 8.6 Develop summary report of external labor market assessment results. 8.7 Submit summary report of external labor market assessment results to the CPM. KEY PROJECT MILESTONES  Market survey instrument  Summary report of external labor market assessment results Task 9.0 – Develop Strategic Positioning Recommendations TASK ACTIVITIES 9.1 Identify the compensation philosophy and accompanying thresholds. 9.2 Using the market salary data collected in Task 8.0 and the classification data reviewed in Task 5.0, determine the proper pay plan including number of grades, steps, and ranges. 9.3 Identify highly competitive positions within the City and customize recommendations for compensation where required. 9.4 Produce a pay plan(s) that best meets the needs of the City from an internal equity and external equity standpoint. KEY PROJECT MILESTONES  Proposed compensation strategic direction, taking into account internal and external equity  Plan for addressing unique, highly competitive positions Task 10.0 – Conduct Solution Analysis TASK ACTIVITIES 10.1 Conduct regression analysis or other appropriate techniques to properly slot each classification into the proposed pay plan. 10.2 Place all classifications into pay grades based on Task Activity 10.1. Sort alphabetically by job class title, in descending order by range, and by old class title and new class specifications. Exhibit “A” Scope of Services Page A-7 Schertz 2015 Compensation Study Agreement 10.3 Create implementation solutions for consideration that take into account the current position of the organization as well as the findings from the classification and compensation analysis. Identify and prepare a range of compensation policy alternatives. 10.4 Meet with the CPM to discuss the potential solutions. 10.5 Determine the best solution to meet the City’s needs in the short-term and long-term. 10.6 Document the accepted solution. KEY PROJECT MILESTONES  Initial regression analysis  Potential solutions  Documented final solution Task 11.0 – Develop and Submit Draft and Final Reports and Deliver Presentation TASK ACTIVITIES 11.1 Produce a comprehensive draft report that captures the results of each previous step. The draft report will include a description of the recommended compensation plan as well as how the plan should be implemented over a three to four year period. Evergreen will also provide recommendations for multiple-year, incremental implementation strategies for salary and compression based on financial parameters provided by the City. 11.2 Submit the comprehensive draft report to the CPM for review and approval. 11.3 Make edits and submit necessary copies of the final report to the CPM. 11.4 Present final report to the City over two council meetings 11.5 Develop a communication plan for sharing study results with employees. 11.6 Conduct four employee wrap up sessions explaining the findings of the stud y. 11.7 Develop implementation database to communicate the process and progress of this project to the CPM and any other employee or groups designated by the CPM. 11.8 Develop a plan for maintaining recommendations over time. KEY PROJECT MILESTONES  Draft and final reports Exhibit “A” Scope of Services Page A-8 Schertz 2015 Compensation Study Agreement  Final presentation  Communication plan  Implementation and maintenance database Task 12.0 – Develop Recommendations for Compensation Administration TASK ACTIVITIES 12.1 Develop recommendations and guidelines for the continued administration and maintenance of the classification and compensation structure, including recommendations and guidelines related to:  how employees will move through the pay structure/system as a result of transfers, promotions, or demotions;  how to pay employees whose base pay has reached the maximum of their pay range or value of their position;  the proper mix of pay;  how often to adjust pay scales and survey the market;  the timing of implementation; and  how to keep the system fair and competitive over time. 12.2 Recommend recruitment/retention strategies, where appropriate. 12.3 Provide recommendations on re-structuring license pay and certification pay. 12.4 Present recommendations to the CPM for review. KEY PROJECT MILESTONES  Recommendations for compensation administration  Recommendations for recruitment/retention policies Task 13.0 - Provide Revised Class Descriptions and FLSA Determinations Exhibit “A” Scope of Services Page A-9 Schertz 2015 Compensation Study Agreement TASK ACTIVITIES 13.1 Assess current class descriptions for form, content, validity, and ADA compliance. 13.2 Discuss new class description format with the CPM. 13.3 Revise classification descriptions in a standard format based on data gathered from the JAT process. 13.4 Create new class descriptions for new classifications, as needed. Provide complete listing of the allocation of job classes to salary range assignments. 13.5 Make FLSA determinations (exempt vs. non-exempt) based on work performed and federal requirements. 13.6 Recommend a systematic, regular process for reviewing job descriptions. KEY PROJECT MILESTONES  Updated class descriptions  New class descriptions as needed The Following are understood to be included in the Scope of Work  Evergreen will review all employee classifications which is estimated to be 175  Total compensation will be evaluated in the external labor market survey which includes certification pay  Provide internal equity recommendations based on longevity and performance  Evergreen will provide status updates weekly as well as provide bullet points that can be sent to employees Exhibit “B” Compensation Page B-1 Schertz 2015 Compensation Study Agreement Exhibit “B” Compensation Evergreen will be compensated $62,000 for the scope of work identified in Exhibit “A”. The following is the accepted invoicing schedule based on the Scope of Work: 25% - upon completion of Task 1 25% - upon completion of Tasks 2-5 25% - upon completion of Task 6-8 25% - upon completion of Tasks 9-13 If Evergreen’s presence is require beyond what was listed in the Scope of Work, each additional trip and presentation will be charged separately for $2,500 per instance. Exhibit “C” Requirements for all Insurance Documents Page C-1 Schertz 2015 Compensation Study Agreement Exhibit “C” REQUIREMENTS FOR ALL INSURANCE DOCUMENTS The Professional shall comply with each and every condition contained herein. The Professional shall provide and maintain the minimum insurance coverage set forth below during the term of its agreement with the City . Any Subcontractor(s) hired by the Professional shall maintain insurance coverage equal to that required of the Professional. It is the responsibility of the Professional to assure compliance with this provision. The City of Schertz accepts no responsibility arising from the conduct, or lack of conduct, of the Subcontractor. INSTRUCTIONS FOR COMPLETION OF INSURANCE DOCUMENT With reference to the foregoing insurance requirements, Professional shall specifically endorse applicable insurance policies as follows: 1. The City of Schertz shall be named as an additional insured with respect to General Liability and Automobile Liability on a separate endorsement. 2. A waiver of subrogation in favor of The City of Schertz shall be contained in the Workers Compensation an d all liability policies and must be provided on a separate endorsement. 3. All insurance policies shall be endorsed to the effect that The City of Schertz will receive at least thirty (30) days written notice prior to cancellation or non -renewal of the insurance. 4. All insurance policies, which name The City of Schertz as an additional insured, must be endorsed to read as primary and non-contributory coverage regardless of the application of other insurance. 5. Chapter 1811 of the Texas Insurance Code, Senate Bill 425 82(R) of 2011, states that the above endorsements cannot be on the certificate of insurance. Separate endorsements must be provided for each of the above. 6. All insurance policies shall be endorsed to require the insurer to immediately notify The City o f Schertz of any material change in the insurance coverage. 7. All liability policies shall contain no cross liability exclusions or insured versus insured restrictions. 8. Required limits may be satisfied by any combination of primary and umbrella liability ins urances. 9. Professional may maintain reasonable and customary deductibles, subject to approval by The City of Schertz. 10. Insurance must be purchased from insurers having a minimum AmBest rating of B+. 11. All insurance must be written on forms filed with and appro ved by the Texas Department of Insurance. (ACORD 25 2010/05). Coverage must be written on an occurrence form. 12. Contractual Liability must be maintained covering the Professionals obligations contained in the contract. Certificates of Insurance shall be prep ared and executed by the insurance company or its authorized agent and shall contain provisions representing and warranting all endorsements and insurance coverages according to requirements and instructions contained herein. 13. Upon request, Professional shall furnish The City of Schertz with certified copies of all insurance policies. 14. A valid certificate of insurance verifying each of the coverages required above shall be issued directly to the City of Schertz within ten (10) business days after contract awa rd and prior to starting any work by the successful Professional’s insurance agent of record or insurance company. Also, prior to the start of any work and at the same time that the Certificate of Insurance is issued and sent to the City of Schertz, all required endorsements identified in sections A, B, C and D, above shall be sent to the City of Schertz. The certificate of insurance and endorsements shall be sent to: City of Schertz emailed to: njohnson@schertz.com Purchasing Department Faxed to: 210-619-1169 1400 Schertz Parkway Schertz, TX 78154 Exhibit “C” Requirements for all Insurance Documents Page C-2 Schertz 2015 Compensation Study Agreement Exhibit “C” Requirements for all Insurance Documents Page C-3 Schertz 2015 Compensation Study Agreement (Instructions for completing and submitting a certificate to the City of Schertz) Complete the certificate of insurance with the information listed below: A) Certificate of Insurance date B) Producer (Insurance Agency) Information – complete name, address, telephone information, & email address. C) Insured’s (Insurance Policy Holder) Information – complete name & address information D) Insurer (name/names of insurance compa ny) **(Remember the city requires all insurance companies to be Authorized to do business in the State of Texas be rated by A.M. Best with a rating of B+ (or better) Class VI (or higher) or otherwise be acceptable to the City if not rated by A.M. Best) E) NAIC # (National Association of Insurance Commissioners, a # that is assigned by the State to all insurance companies) F) Insurer letter represents which insurance company provides which type of coverage from D G) General Liability Insurance Policy – must have an (x) in box. Also, “Occurrence” type policy – must have an (x) in the box (occurrence policy preferred but claims made policy can be accepted with special approval) H) This section shall be filled in with “Y” for yes under Additional Insured for all coverages, except for Professional Liability and Workers’ Compensation. There shall also be a “Y” for yes under all coverages for subrogation waived. I) Automobile Liability Insurance – must be checked for Any Auto, All Owned Autos, Hired Autos J) Umbrella Coverage – must be checked in this section and by occurrence whenever it is required by written contract and in accordance with the contract value. K) Worker’s Compensation and Employers Liability Insurance – information must be completed in this section of the certificate of insurance form (if applicable). L) Builder’s Risk Policy – for construction projects as designated by the City of Schertz. Professional Liability Coverage – for professional services if required by the City of Schertz. M) Insurance Policy #’s N) Insurance policy effective dates (always check for current dates) O) Insurance Policy limits (See Insurance Requirements Checklist) P) This section is to list projects, dates of projects, or location of project. Endorsements to the insurance policy(ies) must be provided separately and not in this section. The following endorsements are required by the City of Schertz. (1) Adding the City of Schertz as an additional insured. The “additional insured” endorsement is not required for professional liability and workers compensation insura nce; and (2) Waiver of Subrogation (3) Primary and Non-Contributory (4) Cancellation Notice Q) City of Schertz’s name and address information must be listed in this section R) Notice of cancellation, non-renewal, or material change to the insurance policy(ies) must be provided to the City of Schertz in accordance with a cancellation notice endorsement to the policy and/or per the policy provisions based on the endorsement adding the city as an additional insured. (Sec. 1811.155, Tex. Ins. Code) S) The certificate must be signed by the Authorized Agent in this section of the certificate form. Exhibit “D” Evidence of Insurance Page D-1 Schertz 2015 Compensation Study Agreement Exhibit “D” Evidence of Insurance