QUEENS LIBRARY LABOR RELATIONS COMMITTEE THURSDAY, NOVEMBER 10, Central Library Merrick Blvd., Jamaica, NY AGENDA

Transcription

1 QUEENS LIBRARY LABOR RELATIONS COMMITTEE THURSDAY, NOVEMBER 10, 2016 Central Library Merrick Blvd., Jamaica, NY AGENDA 6:30 PM LABOR RELATIONS COMMITTEE REGULAR MEETING Hon. Robert T. Groh Conference Room I. CALL TO ORDER Roll Call II. Action Items 1. Contract Authorization Employee Compensation Study 2. Merit Based Compensation Increases for FY'17 III. Adjournment Motion: Second: Time: Generated 11/7/ :28 AM

2 II. ACTION ITEMS 1. Contract Authorization Employee Compensation Study Background: This is an action item seeking approval from the Queens Borough Public Library s Board of Trustees to enter into a contract with PricewaterhouseCoopers LLP (Price Waterhouse) to conduct an employee compensation study and provide related professional services. The Board s approval is required pursuant to the Library s Purchasing Policy, which states, in pertinent part, that contracts for professional services with an annual cost in excess of $35,000 must be approved by the Board of Trustees. In 1998, the Library retained an outside consultant (Hay Group) to conduct an employee compensation study and to help implement a comprehensive performance management and compensation program for non-union employees. The consultant was selected to help ensure that the Library continued to competitively recruit and retain talented non-represented employees so as to provide the highest levels of quality service to the Library s customers and stakeholders. In September of 2015, the Board of Trustees recommended that the Library undertake a competitive solicitation for such services. Current Status: Accordingly, in June 2016, the Library issued a Request for Proposals (RFP) seeking proposals from firms to provide an compensation study of non-union employees within a six (6) month period, review and make recommendations of appropriate compensation within two (2) years, and perform other related services as may be required by the Library. 2 Page

3 The RFP was advertised in the New York City Record, Bid Net, and the New York State Contract Reporter and posted on the Library s website. The notification of the solicitation was sent to an internal bidders list of nine (9) firms. The following five (5) firms submitted timely proposals: Firm M/WBE 1 Compensation Resources, Inc. 2 JER HR Group LLC MBE 3 Korn Ferry Hay Group, Inc. 4 PricewaterhouseCoopers LLP 5 Sibson Consulting a Division of The Segal Company The proposal submitted by JER HR Group LLC was deemed non-responsive because the firm did not submit pricing in accordance with the instructions of the RFP thereby preventing the Library from being able to compare that firm s pricing to the pricing provided by other proposers. A selection committee comprised of Library staff evaluated the remaining four (4) proposals, utilizing technical criteria and cost as the bases for the initial scores. The results were as follows: Compensation Resources, Inc. Korn Ferry Hay Group Price Waterhouse The Segal Company Combined Cost/ Technical Score: Not to exceed Fee- up to 150 employees $104,500 $313,500 $232,500 $136,000 Other related services - Average Hourly Rate $ $ $ $ Page

4 As indicated above, the proposals submitted by Price Waterhouse and the Segal Company had the two highest initial scores. As such, the selection committee interviewed these firms. The results of the final scoring, which included interview performance, were as follows: The Segal Price Waterhouse Company Combined Cost, Technical & Interview Score: Price Waterhouse received the highest total score and had far superior technical and interview performance scores than the Segal Company. The firm demonstrated its extensive previous experience in providing the proposed services to entities similar to the Library, has the qualifications and staffing readily available to perform the services and has a firm understanding of the Library s structure and operations. A full listing of all applicable fees is attached. References indicated that Price Waterhouse is extremely competent, reliable and fully capable of providing the services sought by the Library. A reference from the New York Public Library stated that Price Waterhouse has been providing timely, professional and responsive services for the last five (5) years, and has an excellent understanding of the not-for profit market. A reference from the Robert Wood Johnson Foundation indicated that the Foundation has retained Price Waterhouse for ten years and that the length of their working relationship is indicative of the Foundation s satisfaction with the consultant s work. 4 Page

5 Finally, while there are cautions in the City s Vendex system pertaining to federal and state investigations of Price Waterhouse s accounting activities, those investigations has been settled and the City and other public entities have, notwithstanding such cautions, awarded numerous contracts to Price Waterhouse and extensively used such contracts for services worth hundreds of millions of dollars. Recommended Motion for Consideration by the Labor Relations Committee: I move that the Labor Relations Committee recommend to the Board of Trustees that the President and CEO be authorized to enter into a contract with PricewaterhouseCoopers LLP for an employee compensation study for a term of three years for a not to exceed amount of $232,500 with an option to renew for two additional one-year periods. Price Waterhouse Fees Scope Number Scope of Services Not to exceed Fee- up to 150 employees Review all non-union employee job descriptions and make recommendations for new job descriptions or updates to existing job descriptions according to the function each employee actually performs compared to his or her stated job description. $63,000 Compare all non-union employee salaries, including the President & CEO, to internal and external markets. Determine if there are compression or inequity problems and make recommendations for improvements. $110,000 Compare all non-union employee benefits packages to the external markets. Determine if there are inequity issues and make recommendations for resolution. $8,000 Recommend an Executive Compensation Policy for the President and CEO position. $6,000 5 Page

6 5 6 Provide benchmark findings of total compensation packages by position that includes comparable positions in other local library systems, non-profit and private sector organizations. Conduct FLSA exempt/non-exempt review and analysis of all full-time positions. Cost included in Scope #3 Cost included in Scope # Scope Number 12 Review and analyze non-union positions and determine if there are any equity issues within the same titles based on qualifications, experience and tenure and provide recommendations for resolving such issues. $13,000 Develop recommendations for determining new hire or promotional salaries. $4,000 Evaluate current compensation structure and determine if the structure aligns with and supports operational goals. Provide recommendations for employees that have reached salary range caps. $25,000 Recommend alternative compensation systems that may better align with the Library s goals. $2,000 Review and make recommendations for salary ranges on a bi-annual basis. $1,500 Total: $232,500 Scope of Services Other related services as may be required by the Library to be performed at hourly rates. Hourly Rates for the First Two Years of the Titles Contract. Additional years increase by the CPI-U Partner $ Director $ Manager $ Senior Associate $ Associate $ Page

7 2. Merit Based Compensation Increases for FY'17 Labor Relations Committee Agenda Background: In 1998, the Library s Board of Trustees adopted a Pay- For-Performance Program to ensure that the Library continued to competitively recruit and retain talented non-represented employees so as to provide the highest levels of quality service to our customers and stakeholders. An annual performance appraisal is conducted for every non-represented employee and is based on a best practices model aligned with numerous other similar organizations. Non-represented positions are reviewed regularly to determine market competitiveness, internal equity within the Library, and whether significant changes in scope of job responsibilities have occurred. Union represented employees received retroactive salary increases in September of 2016 based on the DC37 Economic Agreement negotiated with the City of New York. Non-represented employees last received meritbased increases in October of 2015 (retroactive to July 1, 2015). Raises were between 2.5-4% based on annual performance reviews. With respect to salary increases for key executive employees, the Labor Relations Committee is required to annually review and make recommendations to the Board of Trustees regarding the compensation for such employees. More specifically, in accordance with the policies and procedures set forth in Article V, Section 4, of the By-Laws, this review should include (i) obtaining and relying upon appropriate data of similar salaries paid to similar executives at comparable organizations; (ii) evaluating the key executive employee s performance in 7 Page

8 light of the goals and objectives relevant to his or her compensation, and the Library s performance relative to the Library s mission; (iii) evaluating the key executive employee s contributions to the Library s purposes and activities, and how his or her qualifications contribute to his or her achievement of such goals; and (iv) adequately documenting the basis for the Committee s determination concurrently with making that determination. The Chief Librarian and Senior Vice President, Chief Operating Officer and Senior Vice President, and General Counsel and Senior Vice President, are eligible for merit- based increases for FY 17. We are providing the relevant information pertaining to the compensation and performance of the aforementioned key executive employees, which includes confidential performance evaluations and personal information, in a separate transmission. Current Status: The President and CEO recommends that nonrepresented employees receive a merit-based increase between % based on annual performance reviews for FY16, pro-rated merit-based increases of.89% for the Chief Librarian and Senior Vice President and Chief Operating Officer and Senior Vice President, and a 4.0% merit-based increase for the General Counsel and Senior Vice President, retroactive to July 1, Page

9 Recommended Motion for Consideration by the Labor Relations Committee: I move that the Labor Relations Committee recommend to the Board of Trustees, that non-represented employees receive a merit-based increase between % based on annual performance reviews for FY16, prorated merit-based increases of.89% for the Chief Librarian and Senior Vice President and Chief Operating Officer and Senior Vice President, and a 4.0% merit-based increase for the General Counsel and Senior Vice President, retroactive to July 1, Generated 11/7/ :28 AM