Management Committee Meeting Agenda September 20, :00 PM Committee Room One Whitby Municipal Building. Page

Transcription

1 Management Committee Meeting Agenda September 20, 2:00 PM Committee Room One Whitby Municipal Building Page 1. Declarations of Pecuniary Interest 2. Items for Consideration 2.1 Memorandum from Janice Stubbs, Manager of Human Resource Services Re: Update on the Status of the Employee Recognition Program 2.2 Office of the Chief Administrative Officer, Report CAO Re: Benefit Consultant RFP That Council approve Terms of Reference, as indicated on Attachment No. 1, for a Request for Proposals to hire a Benefit Consulting Firm; 2. That Council approve taking the Town's benefit plan to market, with the assistance of the Benefit Consultant selected through the RFP process; and, 3. That Staff report back to Management Committee on the recommendations to improve disability claims management and/or sick leave management made by the Benefit Consultant after review of the Town's processes. 2.3 Office of the Chief Administrative Officer, Report CAO Re: Performance Management System That Council approve the purchase of Halogen Software's Align Solution to implement an online Performance Management System; and, 2. That Council approve Collins Barrow to develop the competencies through employee engagement sessions that will form our performance criteria. 3. New and Unfinished Business 3.1 New and Unfinished Business Adjournment Page 1 of 19

2 Memorandum Office of the Chief Administrative Officer Human Resources Agenda Item # 2.1 To: CC: Management Committee Robert Petrie, Chief Administrative Officer Chris Harris, Town Clerk From: Janice Stubbs, Manager of Human Resource Services Date: September 12, File #: Subject: Update on the Status of the Employee Recognition Program Human Resources conducted a survey of all Town employees and received 255 responses. The survey was constructed to solicit feedback from staff on the Town s existing Employee Recognition Program as well as to invite suggestions for improving this program. A Committee was struck representing all areas of the Town and an initial meeting was held to review the survey results, discuss the results, and establish a plan to consider the data and report back to Management Committee with recommendations. The Committee is scheduled for a follow-up meeting on October 7,. The Employee Recognition Committee includes the following members: Christy Chrus: Principal Planner Downtowns & Cultural Heritage Mallory George: Employee Services Associate Todd Gilchrist: First Class Fire Fighter & President of Whitby Professional Fire Fighters Association Local 2036, IAFF Janice Stubbs: Manager of Human Resource Services Lauren Taylor: Planner II, CUPE Inside Representative John Watkins: Supervisor of Community Development & Youth/Children Services Karen Wilson: Animal Services Officer; President of CUPE Local 53 The Committee will continue to engage with staff and research ideas and to present its recommendations to Management Committee in November,. Yours truly, Janice Stubbs Manager of Human Resources Page 2 of 19

3 Agenda Item # 2.2 Town of Whitby Report Report to: Management Committee Date of meeting: September 20, Department: Office of the Chief Administrative Officer Report Number: CAO File Number(s): N/A Report Title: Benefit Consultant RFP 1. Recommendation: 1. That Council approve Terms of Reference, as indicated on Attachment No. 1, for a Request for Proposals to hire a Benefit Consulting Firm; 2. That Council approve taking the Town s benefit plan to market, with the assistance of the Benefit Consultant selected through the RFP process; and 3. That Staff report back to Management Committee on the recommendations to improve disability claims management and/or sick leave management made by the Benefit Consultant after review of the Town s processes. 2. Executive Summary: The Town extends benefits to employees as a valuable component of our Total Compensation Strategy and seeks to engage expertise to ensure that these benefits are provided in the most cost-effective and efficient manner possible. 3. Origin: Resolution MD-2871 asked staff to prepare a report to Management Committee to take the Town s benefit plan to market and undertake a Request for Proposal (RFP) to seek out a consulting firm to assist with the marketing of a benefit plan, including consideration of a short term disability plan or disability management program. 4. Background: The Town of Whitby extends benefits to approximately 1,000 employees and retirees. Human Resources is responsible for negotiating the Town s Report to: Management Committee Report number: CAO Page 1 of 3 Page 3 of 19

4 benefit plan renewal each April. A Benefit Consulting Firm would provide expertise in the analysis of our plan costs to ensure that the Town is achieving optimal benefit at the most efficient cost. The Town s plan was last taken to market over 10 years ago when Manulife was awarded the contract. Taking the plan to market now would ensure that the Town is getting the best value for our investment in benefits. The Benefits Consulting Firm would assess our proposed rates against our experience statistics and calculate, based on expert industry knowledge, the appropriate market adjustments that are reasonable for the Town. The administrative support offered by the Firm would improve the rate at which adjudication problems reported by our employees would be resolved and the level of communication with our employees will increase, in the form of newsletters and updates. Improving knowledge of healthy living, risk assessments and benefit industry developments will play a critical role in influencing the behaviour of our employees that directly impacts our benefit costs. Promoting responsible consumerism in the use of our benefit plan is currently an untapped strategy for the Town to reduce its benefits costs. A review of our current Disability Management and Sick Leave Management with recommended improvements, is expected to result in process improvements for our employees and potentially cost reductions if more efficient practices can be implemented 5. Discussion/Options: N/A 6. Public Communications/Plan: N/A 7. Considerations: Agenda Item # 2.2 N/A 7.1 Public 7.2 Financial The cost of a Benefit Consulting Firm will be based on a percentage of the Town s premium cost. Depending on the level of services provided, it is anticipated this would cost at least $25,000 per year. It is anticipated that the return on this investment will be greater than the cost in the form of reduced renewal rates, added administrative support and increased communications to staff on benefit related topics, promoting responsible consumerism. Report to: Management Committee Report number: CAO Page 2 of 3 Page 4 of 19

5 N/A 7.3 Impact on and input from other Departments/Sources Agenda Item # Corporate and/or Department Strategic Priorities The following goals of Whitby Council coincide with securing a Benefit Consulting Firm: # 2 To make workplace morale a priority by building a collaborative and creative work environment that engages the abilities of all staff members to solve problems, accomplish new things and deliver the best outcomes to residents; and, # 3 - To continue the Whitby tradition of responsible financial management and respect for taxpayers; and to understand the importance of affordability to a healthy, balanced community. 8. Summary and Conclusion: Benefits represent a significant investment for the Town and a valuable component of the employee s Total Compensation. A Benefit Consulting Firm will provide expertise, resources and information to improve the effectiveness and efficiency of this critical product investment. 9. Attachment: Attachment No. 1: RFP Terms of Reference For further information contact: Janice Stubbs, Manager of Human Resource Services, x4318 Original Approved and Signed. Robert Petrie, Chief Administrative Officer, x2211 Report to: Management Committee Report number: CAO Page 3 of 3 Page 5 of 19

6 Agenda Item # 2.2 Terms of Reference Attachment No. 1 to CAO Introduction This Request for Proposal (R.F.P.) is being issued, primarily as a means of securing a benefit consultant, to provide a review of our benefit plans which will identify how the Town may optimize benefit expenditures and efficiencies, enhance market alignment and minimize risk and exposure, including improved disability claims management and/or sick leave management. The Town of Whitby currently provides insurance benefits to the following employee groups: Fire Department 112 (expired Dec 31, 2014) Local 53 (Full-time) 272 (expires Mar 31, 2017) Local 53 (Part-time) - 7(expires April 30, 2017, ) Non-union and Management staff (including Council) Part-time, Non-Union Crossing Guards accidental death and dismemberment (A.D.&D.) only 358 Retirees 91 Current coverage may include: Manulife Group Health and Dental Manulife Basic Life and Accidental Death and Dismemberment Manulife for Long-term Disability The Town s plan last went to market and went live in Annual Premium levels (Based on April, renewal rates): Extended Health Care (EHC) - $2,537,500 Travel Insurance - Included in EHC Dental - $976,783 Semi Private - Included in EHC Vision Included in EHC Life Insurance - $449,443 Long Term Disability - $588,750 A.D.&D. - $31,589 The above amounts include Provincial Sales Tax (P.S.T.). C 002 Terms of Reference Page 1 of 6 Page 6 of 19

7 Agenda Item # 2.2 Scope of Services Proposal Format Evaluation of Proposals is made easier when Proponents respond in a similar manner. The following format and sequence should be followed in order to provide consistency in Proponent response and that each proposal receives full consideration. Company information page as provided in the bid document Table of Contents including page numbers A short (one or two page) summary of the key features of the Proposal The body of the Proposal, including addressing each Deliverable Fee Structure References Additional information Proponents shall supply information that reflects a viable corporate presence. Such a viable corporate presence would be established by the existence of a client base, a functioning sales and support organization, and financial stability. Proponents are to provide information on: Objective Number of employees; Number and location of offices/location of home office/location of office servicing the Town; Company Profile; Commitment to client satisfaction; Number of years in business; and Experience in municipal program co-ordination. The objective of this proposal is to provide the Corporation of the Town of Whitby with a review of its benefit plans which will identify how the Town could optimize benefit expenditures and efficiencies, enhance market alignment and minimize risk and exposure. More specifically in the areas of: Design of Benefits - A review of the design of the Town's benefit plans to determine whether they are appropriate and if changes could be made to the plans to optimize benefit expenditures and efficiencies. Also, to provide an extensive comparison of the Town s benefits with the benefits provided by other similar employers. Risk Strategy - A review of the Town's risk strategy, to determine whether it is appropriate and if savings could be achieved by retaining more risk. This would include the potential adverse impact due to recently introduced presumptive illness legislation. C 002 Terms of Reference Page 2 of 6 Page 7 of 19

8 Delivery of Benefits A review of current benefit providers and other benefit delivery solutions in order to optimize benefit expenditures and efficiencies and ensure appropriate levels of internal client satisfaction. Management of Disability Claims and Sick Leave A review of alternative methods to provide options with an aim to improve the effective management of sick leave and disability claims. Description of Proposed Services and Deliverables Proponents are to address each item listed in the Terms of Reference. Proponents should indicate an understanding of the term identified and their ability to comply or detail the deviance from the term in clear, concise language. Proponents are to describe their services capabilities and what makes their services appealing to a public sector entity. It is expected that the proponent will provide the following under the terms and conditions of a benefits consultant: Agenda Item # Supply consulting services in all areas of benefits insurance and benefit plans as determined and requested by the Town of Whitby for up to a five (5) year period and subject to annual reviews. 2. Assist with the marketing of various benefit plans as needed, supply market specifications, test costs and premiums for reliability. Marketing/Request for Proposal of benefit plans will be coordinated through the Town s Purchasing Services area. The successful proponent would be expected to participate in the Request for Proposal evaluation team. 3. Provide actuarial and systems resources in regard to current and future benefit plans for the Town of Whitby. 4. Conduct market reviews of benefit plans and make recommendations for changes in order to enhance alignment with other municipalities and comparable organizations. 5. Conduct financial and actuarial reviews of benefit plans and make recommendations for changes as well as preparing annual financial reports for the Town on the viability of the plans - testing reliability and recommending proper premium levels and liability. 6. Provide special studies and reviews with recommendations on costs and liability of various types of benefit plans in preparation and/or as the result of collective agreement negotiations. 7. The Town will reserve the right to acquire other consultants for special projects and financial planning. C 002 Terms of Reference Page 3 of 6 Page 8 of 19

9 8. As required and at the request of the Town, provide liaison with the carriers and act as consultant for the Town with carriers regarding contract/benefit change and problems with any claims adjudication. 9. Provide timely answers and recommendations on ad hoc queries and problem issues. 10. Monitor, as requested carrier transactions and services and monitor to ensure carrier contracts are being adhered to. Provide timely financial reporting on all plans. 11. Notify the Town of Whitby of new developments and legislative changes affecting benefits and their effect on carrier contracts. 12. Provide year end details of the process used to prepare financial reports and financial analysis of the plans including financial review and costing projections and reserve testing for annual policy renewals. 13. Provide quarterly reports on usage and claims experience. 14. During union negotiations require immediate response to effects on benefits costs. 15. Proven credibility in plan administration work. 16. Have a base office with sufficient staff to provide immediate response to issues, during normal working hours. 17. Have actuarial and systems resources to test the reliability and submission of benefit costs and marketing specifications or details of any subcontracting arrangements. 18. The Town will consider an additional fee for service for advanced or value added services beyond the day-to-day services. This would be on an as needed basis. Proponents should include the value added services and the fee associated in their submission. Fee Structure Proponents shall fully describe their proposed fee structure as part of the R.F.P. Proponents must clearly identify any additional charges that may be applicable that have not already been addressed in their proposal. The Town is only accepting a commission basis fee. Mandatory Requirements Agenda Item # 2.2 Proponents must demonstrate the ability to meet the following mandatory requirements. Failure to meet the mandatory requirements may result in the submission being rejected. C 002 Terms of Reference Page 4 of 6 Page 9 of 19

10 I. Proponents shall provide at least three (3) examples of similar work within the past five (5) years, preferably with municipalities or broader public sector organizations. II. A statement that clearly identifies there are no conflicts of interest with respect to other clients in the area. III. Proponents shall provide complete biographies (curricula vitae) of your management team, highlighting years and range of experience relevant to the activities anticipated by this R.F.P. The primary contact (contract manager) is to be clearly identified as the single point of contact for the Town. IV. Proponents will ensure all print material identified as deliverables will be created using an Arial font in a minimum point size of 12. There will be a statement at the beginning or end of the document which reads If this information is required in an accessible format please contact, (name, phone number and of proponent). Proponent will be responsible to supply all accessible formats if requested at no additional cost to the Town of Whitby and/or requestor. Should public meeting accessibility accommodations be requested they will be supplied by the Proponents at no additional cost to the Town of Whitby and/or requestor. Proponents will ensure all PowerPoint presentations used in public meetings or presentations will conform to the Town of Whitby Accessible Documents criteria. Studies, Reports, and/or Plans that result from this project must be created and provided to the Town in an accessible format compatible to Adobe Acrobat XI or higher. Please refer to the Town of Whitby s Purchasing web page for a link on How to Create an Accessible Document (AODA). Evaluation Criteria Agenda Item # 2.2 Proposals will be evaluated on the basis of all information provided by the Proponents. Each Proposal will be reviewed to determine if the proposal is responsive to the submission requirement outlined in the R.F.P. Proposals submitted, shall be evaluated using the criteria listed below. Criteria are weighted in accordance with their importance and relevance to the Town s operations and objectives. The Town reserves the right to short-list the highest ranking proponents prior to the final selection in order to conduct interviews/presentations. In the event that interviews/presentations take place, the short-listed Vendors proposal will be evaluated based on the accumulated total from both the Submission and Presentation weighted scores. C 002 Terms of Reference Page 5 of 6 Page 10 of 19

11 Agenda Item # 2.2 Evaluation Criteria Qualification and Experience (demonstrated experience of firm, key personnel, similar project in both scope and value) Quality of Proposal (responsiveness and completeness of submission, demonstrated willingness to comply with the terms of the R.F.P.) Project Deliverables and Technical Response (demonstrated understanding of the requirements; quality and completeness of approach, work plan, and methodology; project management structure; ability to provide necessary resources to meet milestone dates and deadlines and value added) Pricing (cost effectiveness of the proposal) Total Interview/Presentation (if required) Grand Total Available Points 30 Points 10 Points 30 Points 30 Points 100 Points 25 Points 125 Points C 002 Terms of Reference Page 6 of 6 Page 11 of 19

12 Agenda Item # 2.3 Town of Whitby Report Report to: Management Committee Date of meeting: September 20, Department: Office of the Chief Administrative Officer Report Number: CAO File Number(s): N/A Report Title: Performance Management System 1. Recommendation: That Council approve the purchase of Halogen Software s Align Solution to implement an online Performance Management System; That Council approve Collins Barrow to develop the competencies through employee engagement sessions that will form our performance criteria. 2. Executive Summary: Further to the update provided to Management Committee dated June 17, regarding item MD-2439, Human Resources has completed of a review of performance management systems employed in other municipalities, including participating in a survey of other municipalities. The most effective tool available to deliver an effective performance management program is an online tool that enables managers to provide specific and timely feedback to employees. To be effective, this system must be based on competencies that align with the Corporation s strategic direction and other human resource initiatives, including recruitment and selection, recognition, succession planning. Report to: Management Committee Report number: CAO Page 1 of 4 Page 12 of 19

13 3. Origin: Agenda Item # 2.3 The Town has employed a manual process to monitor the work performance of our unionized employees throughout their probationary period and through the probationary period and annually for non-union and management employees. The existing performance review form is generic and lacks the targeted approach to measure performance on the specific competencies that are crucial for municipal staff to be effective. An effective performance management system needs to be outcome-driven, forward-focused and engaging as it is the foundational tool that drives and supports all other talent management programs (including succession planning). The goal of the performance management system is to provide clear expectations about what employee success looks like; align personal objectives with the goals of the organization, provide clarity around the behaviours and competencies used to achieve these goals and offer feedback, coaching and development opportunities to support employee growth and performance. The objective of an effective performance management system is to build a feedback and recognition-rich culture. Traditional performance management systems may create frustration for employees who do not clearly understand their goals or what is expected of them at work. For these employees, annual reviews feel forced and superficial and do not lead to improved performance or positive morale. 4. Background: In addition to an effective tool, the competencies that are evaluated must be developed for Whitby. If the Town can effectively identify, develop and communicate a shared understanding of the critical competencies that drive success, and establish criteria to operationalize them, managers can affect positive change throughout the organization. Competencies refer to the skills, knowledge and abilities that are required for employees to achieve success in their roles and to make a significant contribution to the long-term success of the Town. Competencies can help organizations by providing employees with a clear understanding of what is expected of them, and identifying the behaviours required to achieve personal and organizational goals. These should form the basis for human resource management systems, including recruitment and selection practices, performance management criteria, succession planning, compensation and training and development. Peter Spratt with Collins Barrow lead the process at Durham Region to identify the competencies that formed the basis for their performance management system. This process would require a small project team to investigate leading practices on competencies, review the Town s strategic priorities, and develop the competencies that are critical to the Town s success. The process would engage Report to: Management Committee Report number: CAO Page 2 of 4 Page 13 of 19

14 staff through focus groups to ensure all departments have input to the prioritization of competencies and the development of behavioural statements that demonstrate each competency. 5. Discussion/Options: N/A 6. Public Communications/Plan: N/A 7. Considerations: 7.1. Public N/A 7.2. Financial The cost of the online Performance Management System will be approximately $10,000 for implementation with ongoing monthly fees based on a per-employee rate of $4 to $8 per employee (depending on the number of employees registered). For the non-union group it is anticipated the ongoing fees would be approximately $10,000 per year. The cost of hiring Collins Barrow to design and develop our workforce competencies framework is approximately $25,000. Agenda Item # 2.3 An additional position in Human Resources to support this new process would cost approximately $80,000 per year Impact on and input from other Departments/Sources All Departments currently participate in performance evaluation and will continue to do so. Input will be solicited from all departments in the development of the competency framework underlying the system Corporate and/or Department Strategic Priorities The following goals of Whitby Council coincide with securing a Benefit Consulting Firm; 2. To make workplace morale a priority by building a collaborative and creative work environment that engages the abilities of all staff members to solve problems, accomplish new things and deliver the best outcomes to residents, and, 3. To continue the Whitby tradition of responsible financial management and respect for taxpayers; and to understand the importance of affordability to a healthy, balanced community. Report to: Management Committee Report number: CAO Page 3 of 4 Page 14 of 19

15 Agenda Item # Summary and Conclusion: An effective performance management system is founded on the development of competencies that clearly align employee performance to our organizational goals. Timely and ongoing feedback is critical to the effective management of our employees and to provide the appropriate recognition of their efforts and establish areas to develop. The performance management system will be a fundamental component in ensuring the Town is developing staff to meet their highest potential and to ensure we continue to deliver the best outcomes to the residents of Whitby. 9. Attachment: N/A For further information contact: Janice Stubbs, Manager of Human Resource Services, x4318 Original Approved and Signed. Robert Petrie, Chief Administrative Officer, x2211 Report to: Management Committee Report number: CAO Page 4 of 4 Page 15 of 19

16 Page 16 of 19 New and Unfinished Business - Management Committee Item Number Resolution Source Description MD - Management 2439 Committee Updated: September 2, 1. That the Performance Management Policy attached to Report CAO be approved, and; 2. That the Succession Management Policy attached to Report CAO be approved, with Section 2.2 being expanded to include identifying all positions for succession planning so that it is an ongoing process, and; 3. That the Manager of Human Resources in consultation with the Senior Management Team recommend a Performance Management Form to be used in accordance with the Performance Management Policy for approval by the Management Committee at its meeting on December 15, 2015, and; 4. That the Manager of Human Resources in consultation with the Senior Management Team provide a report to the Management Committee at its meeting on January 19, on the Town s Succession Management Plan and recommended training and development requirements, and; 5. That the Performance Management Policy be implemented for. Chief Administrative Officer Report, CAO Re: Performance Management and Succession Planning page 1 of 4 Meeting Date 13 Oct 2015 Department Responsible CAO Due Date 19 Jul Status Active Agenda Item # 3.1

17 NUB - Management Committee Item Number MD Resolution Source Description 1. That Report CAO Overtime and Sick Time Analysis be received for information, and; Management Committee 2. That the Commissioner of Legal and By-law Services report back to Management Committee on options for reducing overtime in the Animal Services area by March of, and; 3. That the Manager of Human Resources report back to the Management Committee on a recommended policy for the management of overtime by February, and; 4. That the Manager of Human Resources report back to the Management Committee on options for improving the management of sick time by February of, and; 5. That the Manager of Human Resources report back to the Management Committee on overtime and sick time utilization on an annual basis prior to the consideration of the annual budget. 6. That the Manager of Human Resources report back to the Management Committee with options for claims management with respect to short term disability and sick leave by Fall of. Office of the Chief Administrative Officer, Report CAO 7-15 Re: Overtime and Sick Time Analysis Meeting Date 15 Dec 2015 Department Responsible CAO Due Date 19 Apr Status Active Page 17 of 19 Updated: September 2, page 2 of 4 Agenda Item # 3.1

18 NUB - Management Committee Item Number MD Resolution Source Description Based on the discussion, it was the consensus of the Committee to provide the following direction to Administration: That Staff investigate different approaches on staffing resources needed to implement, monitor and manage the performance management plan and report back to the Management Committee via memorandum at the regularly scheduled meeting of January 19, Management Committee Update from the Chief Administrative Officer Re: Performance Management Policy Form Meeting Date 15 Dec 2015 Department Responsible CAO Due Date 19 Apr Status Active MD MD That the Chief Administrative Officer report back through memorandum to the Management Committee on the development of a municipal strategic plan, in particular linking the sub-strategies related to the Council Goals by January 19,. 1. That Report CAO be referred to the Service Delivery Review Consultant for comments and feedback. Management Committee Management Committee Municipal Strategic Planning 15 Dec 2015 Office of the Chief Administrative Officer, Report CAO 06-16Re: Draft Overtime Policy 22 Mar CAO CAO 19 Apr 19 Jul Active Active Page 18 of 19 Updated: September 2, page 3 of 4 Agenda Item # 3.1

19 NUB - Management Committee Item Number MD Resolution 1. That the Chief Administrative Officer direct staff to prepare a report to the Management Committee within the next quarter to take the Town's benefit plan to market and undertake a Request for Proposal (RFP) to seek out a consulting firm to assist with the marketing of a benefit plan; and, 2. That consideration of a short term disability plan or disability management program be included as part of the RFP. Source Operations Committee Description Town's Benefit Plan - Request for Proposal (RFP) Meeting Date 11 Apr Department Responsible Human Resources Due Date 30 Sep Status Active Page 19 of 19 MD Updated: September 2, 1. That Report CAO be referred to staff; and, Management Committee 2. That Staff be directed to consult employees through a survey by the end of June regarding employee recognition opportunities and investigate striking a committee of union and management employees to discuss survey outcomes and recognition opportunities; and, 3. That staff report back to Management Committee by September,. Office of the Chief Administrative Officer, Report CAO 07-16Re: Employee Recognition Program page 4 of 4 21 Jun Human Resources 20 Sep Active Agenda Item # 3.1