NW MANAGEMENT CONSULTING, INC.
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2 NW MANAGEMENT CONSULTING, INC. COMPENSATION HUMAN RESOURCES September 6, Hoyt Avenue # 11 Everett, Washington Cell Phone: (206) Ofc Phone: (425) ross.ardrey@gmail.com Rob Putaansuu Mayor City of Port Orchard 216 Prospect Street Port Orchard, Washington Mayor Putaansuu: This letter transmits a Proposal to assist the City of Port Orchard update its non-represented salary program. The proposal is intended to build on the 2007 and is not intended to be a fresh-start. Proposal has a maximum budget for professional fees of $11,600 plus reimbursable expenses estimated at $1,150 so the total not-to-exceed bid is $12,750. Provision for additional efforts, if requested, at a standard billing rate of $100/ hour. Study is to include Mayor, department director and non-represented positions. The suggested schedule is fast paced and calls for the study to be completed in days. Flexibility is important. UPDATE OF 2007 STUDY The proposal incorporates all provisions in the 2007 Study with emphasis on: Mayor, Finance Committee and HR involvement throughout the study, Survey through personal interviews to reflect 2007 practice and provide a credible audit trail, Inclusion of job comparisons, salary rates and actual salaries, and Attention to validation of survey data and consultant availability for follow-on efforts. NW MANAGEMENT CONSULTING NW Management Consulting, the compensation practice of Ross Ardrey, was founded in 1993, is a Washington Corporation, and relocated from Seattle to downtown Everett in Examples of recent public sector salary studies include projects at City of Stanwood (2016), Port of Port Townsend (2015), Skyway Water & Sewer (2014), City of Eugene (2013), City of Tukwila (2012), Tacoma Housing Authority (2012), City of Covington (2008), and City of Issaquah (2007). The studies included job matches, salary ranges, actual salaries and administrative practices. Most of the studies included presentations with and facilitating Council, Finance Committee and staff reviews. The proposal is intended to provide a framework for discussion. Suggestions will be welcome. Sincerely, Ross. J Ardrey Ross J. Ardrey President NW Management Consulting - Proposal for City of Port Orchard Salary Study - Page 1
3 CITY OF PORT ORCHARD PROPOSAL FOR UPDATE OF NON-REPRESENTED SALARY PROGRAM Ross J. Ardrey - NWManagement Consulting, Inc Hoyt Avenue #11, Everett, WA Outline: Introduction (Pages 1-2), Suggested Approach (P. 3-4), Administration (P. 5), Highlights of Qualifications (P. 6-8) STUDY SCOPE AND GOALS This proposal responds to the City's request for proposal for an update of the City's 2007 salary study. The proposal is intended to build on the 2007 study and is not intended to be a fresh-start. NW Management Consulting's statement of qualifications is included as an attachment. Study Goals and Concerns The City has completed negotiations with Police and Public Works represented employees. City budgets are moving to a two-year basis. There is a concern that salary levels and ranges need to be lined by with competitors now and there is a need to look at non-represented salary levels at this time. Examples of concerns: What of Salaries of the Police Chief and Public Works Director/City Engineer? What about the Mayor? How to avoid "cherry picking" and make sure everyone is treated the same? How to carry forward what the City did in 2007? How to recognize that the City asks lots of existing staff? Uniqueness of City of Port Orchard Programs and Services The City of Port Orchard is not a typical residential city. The proposed approach emphasizes the challenges of comparability and the importance of credibility. Examples of programs and services: City has increased in population from 8,350 in 2007 to at least 13,510 Growth is expected to continue over the next decade City functions as a County seat and has a destination waterfront The City has completed lots of annexations Many of the City's senior managers and staff are planning on retirements PROJECT PLAN AND SCHEDULE The suggested project plan and schedule seeks to avoid year-end and holiday season activities and reflect compensation planning cycles. The schedule is flexible, and, at this time, proposes a September start with study efforts in October and November when, hopefully, plans for 2017 will be available. The suggested approach and schedule is shown on pages 3 and 4. NW Management Consulting - Proposal for City of Port Orchard Salary Study - Page 2
4 SUGGESTED APPROACH The suggested approach is intended to be about the City of Port Orchard, meet Mayor and Council requirements, and provide a framework for developing a sustainable and extendable methodology. The approach is flexible to best meet the City's expectations Methods are intended to conserve resources and respond to City requirements Suggestions for refinements and revisions will be welcome TASK 1: PLANNING AND INTRODUCTIONS This task is to focus on start up meetings and project planning. Steps include Meetings with Mayor, Treasurer and HR Coordinator; briefings, if requested, with Finance Committee, Council, and Staff; and review of policies, schedules and job descriptions. Outcome: Consensus on project plans. TASK 2: STAFF AND DIRECTOR INTERVIEWS This task is to focus on interviews with City staff and supervisors to provide introductory information and collect data on current job functions. Steps include interviews and job site visits (~ 33 at 60 minutes each) and Supervisor/Director reviews (~ 7 at about 60 minutes each). Outcome: Up to date information and everyone a chance to be heard. TASK 3: SURVEY VISITS (UPDATES/VALIDATIONS) The survey to be conducted through on-site meetings with other jurisdictions. Steps include preliminary calls and survey arrangement to collect data for City 2017 budget planning and arrange for survey visits. Visits to include cities, county and other agencies. Participation of Mayor, Treasurer and HR Coordinator welcome. Outcome: Credible survey data, and survey validation. Survey participants: City of Poulsbo City of Gig Harbor City of Bainbridge Island Kitsap County City of Bremerton Kitsap Transit, Port, Other agencies TASK 4: DEVELOP FINDINGS; REPORTS Compilation and data analysis to reflect procedures observed in the 2007 study. Steps include analysis and validation of salary and related data; preparation of preliminary job comparisons and salary report; meetings with Mayor, Treasurer, HR Coordinator, Finance Committee and other designated persons. Outcome: Consensus on preliminary findings. TASK 5: PREPARE AND PRESENT FINAL REPORTS This task is to focus on preparation and presentation of final report comparisons to the Mayor, Council, Department directors and non-represented staff. Reports to continue efforts to avoid personalities and focus on structures and positions. Steps include updating tables, texts and reports; presenting reports on salary levels and position-by-position comparisons; meetings with Mayor, Council, and Finance Committee. Also important is preparation of participant reports. Outcome: Comprehensive Study Findings. The suggested approach is intended to reflect a preliminary study plan that focuses on developing credible and valid findings, and, at this point, does not get into facilitating Council, Mayor and other reviews, recommendations, implementation, or other matters that, depending on study findings, may become important to meeting the City's short and longer range expectations. The project work plan, estimates and schedule follows this page. NW Management Consulting - Proposal for City of Port Orchard Salary Study - Page 3
5 CITY OF PORT ORCHARD SALARY UPDATE STUDY PRELIMINARY PROJECT PLAN AND SCHEDULE Purpose: Update Citv Salary Schedule--Not a Fresh Start--Existing Structure Working Needs Update Narrative: Tasks Listed on Left in Logical Order. Estimates Shown in Middle. Preliminary Schedule on Right Process to Be Open. Nondiscriminatory. Transparent --Reflect Existing Citv Practices and Include Salaries 2017 Focus on Existing Positions and Avoid Titles and Personalities -- Include Classification Issues. Rates/Ranges Prof Fees Based on Consultant Standard Hourly Rate at $100/Hour-- Expenses Show Actual Rates Via SR3 (112 Miles RT) PRJ TASK SUGGESTED APPROACH STEP AND PROJECT OUTCOMES Cnslt Fees and Expenses ($) Hours Fees Expense Total Suggested Schedule Sep Oct Nov Dec Jan Task 1 Task 2 Task 3 Task 4 Task 5 PLANNING AND INTRODUCTIONS Start up meetings and project planning Meetings with Mayor, Treasurer, HR Briefings with Fin Comm, Council, Staff Review policies, schedules, descriptions... > Outcome: Consensus on project plans STAFF AND DIRECTOR INTERVIEWS Focus on introductory interviews Interviews and job site visits (= 33 at 60 min) Supervisor/Director reviews(~ 7 at 60 min) > Outcome: Everyone a chance to be heard SURVEY VISITS (UPDATES/VALIDATIONS) Survey to be conducted through on-site meetings Survey arrangements; Data as of2017 Preliminary salary level directions Collect city/other docs, policies... (~ 6+) Collect personnel and admin data (~ 6+) City/County site visit interviews (6at4hrs+) Mayor, HR, Treasurer, others welcome > Outcome: Credible Survey Data, Validation DEVELOP FINDINGS; REPORTS Data procedures to reflect those in the 2007 study Analyze and validate salary and related data Prepare preliminary wage and salary report Meets with Mayor, Treasurer, HR Coordinator > Outcome: Consensus on prelim findings PREPARE AND PRESENT FINAL REPORTS Presentsations to focus on positions and structures Update tables, texts and reports to 2017 Present reports: Salaries/Comparisons Mtgs Mayor, Council, Finance Committee Prepare participant reports» Outcome: Comprehensive Study Findings , , , , , , , ,380 Tasks 1-5 PROJECT PLAN, ESTIMATES AND SCHEDULE ,600 1,150 12,750 NW Management Consulting - Proposal for City of Port Orchard Salary Study - Page 4
6 OTHER INFORMATION Deliverables and Staffing Deliverables include project plans, worksheets and survey reports. The reports should include narratives and explanations. All documents are to be in both hard copy and electronic format. Suggested staffing is for Mr. Ardrey to serve as consultant's project manager, function as a third party resource, and personally complete data collection, analysis, reports and presentations. Invoicing and Payments The consultant's suggestion is for invoicing and payments to reflect accomplishments and project milestones. Assuming the study is to be as outlined, the City of Port Orchard would be invoiced for five (5) installments each of $2,550 ($12,750 5 = $2,550). Milestones: (1) Completion of project planning and introductions, (2) Completion of staff and director interviews, (3) Completion of survey visits, updates and validations, (4) Completion of analysis and development of findings and reports. (5) Completion of final report and participant reports. The total amount is not to exceed $12,750. Should the actual hours be less than estimated the final installment will be adjusted accordingly. Additional efforts, if any, are to be billed at the consultant's standard billing rate of $100/hour. Insurance Coverage and Warranties NW Management Consulting maintains general liability insurance that provides coverage to protect consultant and client interests. Liability provisions include general aggregate business liability at $2,000,000 and bodily injury by accident at $1,000,000 each accident. The policy is with Hartford/ITT. The City will be named as an additional insured. It is Mr. Ardrey's practice to provide informal assistance to clients without charge during the implementation and initial administration of new or updated compensation programs for a period of 12 months. Compensation reviews, surveys, recommendations, and other deliverables are to be in accordance with generally accepted compensation practices in effect among public agencies in the State of Washington. Professional Ethics Mr. Ardrey adheres to the Institute of Management Consultants' Code of Professional Conduct. The Code assures clients of the consultant's independence of judgment and protection of the confidentiality of client matters as well as the consultant's compliance with City and State laws and regulations. CONSULTANT'S AFFIDAVIT OF SUBMITTAL This proposal for the City of Port Orchard Salary Study was prepared by Ross J. Ardrey, the president and principal consultant at NW Management Consulting. The study is intended to be fully responsive to the City's request for proposal, and incorporates by reference any and all provisions of the request for proposal. Mr. Ardrey will welcome the opportunity to respond to questions, and, if authorized, to assist the City on contract provisions and get started. Sincerely, Ross J. Ardrey Ross J. Ardrey President NW Management Consulting - Proposal for City of Port Orchard Salary Study - Page 5
7 NW MANAGEMENT CONSULTING, INC. HIGHLIGHTS OF QUALIFICATIONS Ross J. Ardrey, Consultant, NW Management Consulting, Inc., 2720 Hoyt Ave., #11, Everett, WA ross. ardrey,gmail.com - Cell: Facsimile: Telephone: CITY OF PORT ORCHARD NW Management Consulting is the compensation and HR consulting practice of Ross J. Ardrey. The firm is a Washington Corporation, was incorporated in 1993, and is located in Everett. Practice includes cities, other public agencies, not-for-profits and businesses. Mr. Ardrey has completed about 200 projects for 80 organizations since Studies with cities with regional and business center services are a strong specialty. SCOPE OF PRACTICE The studies include city-wide reviews, non-rep or represented studies, reclassification and validations. Regional and business center city services include: North Sound North Central South Central OR and SW WA Bellingham Ferndale Blaine Burlington Anacortes Lynnwood Stanwood Oak Harbor Mountlake Terrace Issaquah Tukwila Covington Port Orchard Bainbridge Puyallup Portland Chehalis Troutdale Metro Aberdeen Projects represent the consultant's positive commitment to mayors, councils, management teams and staff to be fully responsive for availability and ability to meet schedules, costs and services. Examples of Projects Stanwood Tukwila Covington Burlington Chehalis Port Orchard Issaquah Bainbridge Island Portland Project Descriptions Comprehensive Compensation Study Non-Rep Class/Comp Program Validation Update of Class/Comp Surveys Salary and Benefit Survey Non-Rep Positions Non-Rep & Rep Class/Comp Studies Non-Rep Class/Comp Study Validation of Non-Rep HR Compensation Non-Rep & Rep Class/Comp Studies Bureau of Revenue Classification Study Most Recent Examples of other projects include studies with MultiCare, Neighborcare Health and MRSC; districts such as Housing Authorities in Tacoma, Seattle and King County; the Ports of Bremerton, Aberdeen, Edmonds, Everett, Port Townsend, and Olympia as well as private companies. CONSULTANT QUALIFICATIONS Mr. Ardrey consulted for two national consulting firms for 20 years before founding NW Management Consulting in Consulting services endeavor to recognize city and staff accomplishments, build on existing city practices, focus on structures, be nondiscriminatory, and reflect city goals and plans. Mayors, councils, management, and staff are involved at critical points. NW Management Consulting - Proposal for City of Port Orchard Salary Study - Page 6
8 CONSULTANT BIOGRAPHICAL SUMMARY ROSS J. ARDREY Mr. Ardrey works closely with client boards, executive committees and executives. Studies focus on existing client CEO compensation practices as updated to reflect client concerns. Mr. Ardrey's studies include public administration, business, and law. Degrees received: B. A. University of Chicago M. A. Graduate School, University of Washington J. D. School of Law, University of Washington Mr. Ardrey's previous and current employers: Harry J. Prior & Associates, Inc., Seattle: Howard Johnson & Company, Seattle: NW Management Consulting, Inc., Seattle/Everett: Present Professionally, Mr. Ardrey is active in the NW Compensation Forum and has served at the local and national level of the Institute of Management Consultants which certifies management consultants. Accomplishments: Chapter President (1990, 1995), Best US Chapter (1990, 1995), and National Board of Directors (1992). Examples of Private Sector Employers: Over the years Mr. Ardrey has completed a variety of compensation projects with private sector employers such as Kenworth Northwest, Cummins NW Diesel, Puget Sound Freight Lines, General Construction, Washington Energy, McKinstry Company and REI. Other private sector clients include K&L Gates, Brown & Haley, Liberty Orchards, Exxon and ARCO. Distinctive Features of Consultant's Practice Clients look to Mr. Ardrey as a local compensation resource who: Presents a good balance of listening, consulting, and communications skills Keeps up on public and private sector compensation practices Operates at a national and best practices level Retains a low overhead cost structure Completes projects on budget and on time Maintains a good track record with boards, executives and unions Comments from public sector Mayors and Directors follow this page. Additional comments and information available. NW Management Consulting - Proposal for City of Port Orchard Salary Study - Page 7
9 COMMENTS FROM PUBLIC SECTOR CEOs AND HR DIRECTORS Comments Listed in a Logical Sequence in Order in Which Work Is Completed "We use Ross Ardrey...He does a great job; very thorough and thoughtful, lots of experience." - Director, Business and HR Services. "Ross has had contracts here going back 15+ years doing classification work, compensation work, and studies wherein both classification and pay were studied. Ross is a solid practitioner in classification and compensation and has a good systems overview as to how classification families are intertwined. He is very personable, a capable statistician, and County employees and managers enjoy working with him." - Manager, Compensation "Ross bonds with employees faster than I've ever seen. He has the smarts and tenacity to work through tough problems and come up to practical solutions." - Personnel Manager "In 25 years as a city manager Ross' labor market surveys are the most thorough I've seen." - City Manager "We love Ross to bits here... Our folks can be tough to please but even when it's been information they don't like or don't want to hear, the constant feedback I get about Ross is that people are heard with him; he listens and they feel their input is valued; this is HUGE during class/comp studies when people so frequently don't receive an increase or what they wanted. You can't go wrong with him and he really knows his stuff." - Director, Human Resources "Ross did an extraordinary job of presentations with our Council and responding to questions from a particular Council Member." - Mayor Everyone's Efforts Are Greatly Appreciated NW Management Consulting - Proposal for City of Port Orchard Salary Study - Page 8
The deadline for submittal of proposals is 4:00 PM, Pacific Time, January 8, 2014.
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