HomeMy WebLinkAboutX-E-02 a-d Compensation and Classification Study
City Council Memorandum
To: Mayor Fasbender & City Councilmembers
From: City Administrator Dan Wietecha
Date: February 7, 2022
Item: Compensation & Classification Study
Council Actions Requested:
1. Approve Agreement for Services with Abdo.
2. Approve Budget Amendment of $5,200.
3. Approve Resolution Amending Resolution 12-23-07, Establishing Criteria for
Compensation
Background Information:
The City last conducted a comprehensive compensation and classification study of all positions
in 1999-2000. There have been periodic updates since then with the last significant review in
2006-2007. The study established the wage scale to ensure both competitive wages within the
market and internal consistency across positions within the City. Annually, City staff reviews the
League of Minnesota Cities salary survey as an informal comparison.
The City’s policy (Resolution 12-23-07, adopted December 17, 2007) is to base the wage scale
on the average paid by cities population 15K to 35K in the seven-county Metro area. The
Administration Committee (Lund*, Fox, and Leifeld) has recommended expanding this list to
include four additional cities due to their close proximity: Cottage Grove (in Metro but over
35K), Northfield and Red Wing (within population range but outside Metro), and Cannon Falls
(below 15K and outside Metro).
For non-union positions, the City has developed a step program, such that a new hire will start at
step G (depending on prior experience, a new hire may start at a higher step) and advance up to
step A over time. Individual employee advancement up steps of the scale typically occurs on
anniversary dates and/or January 1st until the employee maxes out at Step A. Cost of living
adjustments (COLA) are typically applied to the scale as part of the annual budget process.
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In a couple of recent hiring efforts and in several departing employee exit interviews, wages have
been cited as below market. In a preliminary data review, it appears that many positions, across
multiple departments, may be below market.
This past year, the City Council referred the topic to the Administration Committee who have
recommended proceeding with the study. In December, the City Council approved the 2022
Budget with $20K for the Compensation & Classification Study and $200K to implement wage
adjustments after completion of the study. For two of the recently negotiated union contracts, we
agreed that some implementation of recommended wage adjustments would begin no later than
July 1, 2022.
In the fall we conducted a request for proposals; reviewed proposals received from six consultant
firms; interviewed three based on experience, cost, and timeliness; checked professional
references and had follow-up conversations with the three; and recommend hiring Abdo
(proposal and agreement are attached).
The study will review current position descriptions; analyze positions based on knowledge,
skills, and abilities; evaluate positions according to 2022 market wage data; evaluate positions
for internal consistency and pay equity compliance; and establish an updated compensation
system with new wage ranges.
The compensation system would ensure we are paying wages competitive with the market. The
system would also help with recruiting and retaining employees as well as maintaining internal
consistency and ensuring pay equity compliance. Additionally, the study will include a survey of
City Council wages (which were last adjusted in 2014-2015). The study will also include
recommendations and procedures for incorporating new or re-organized positions into the
compensation system in the future.
The study would start soon hereafter with completion anticipated around June. An initial step
will be meeting with the Management Team for an overview of the process and appropriate
communications and messaging for employees about the study. The study is about positions, not
individuals. However individual employees may perceive the study as very personal since it will
examine their pay rates, so communications and messaging throughout the process will be vitally
important.
Financial Impact:
The 2022 Budget includes $20,000 to conduct the study. A budget amendment for an additional
$5,200 is recommended.
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Committee Discussion:
Administration Committee (Lund*, Fox, and Leifeld) met August 12, 2021, December 1, 2021
and January 11, 2022 and supports these actions.
Attachments:
• Proposal for Classification & Compensation Study (Nov 12, 2021)
• Agreement for Services
• Resolution 12-23-07, Establishing Criteria for Implementation of a Compensation
Program
• Resolution Amending Resolution 12-23-07, Establishing Criteria for Compensation
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Proposed By:
100 Warren Street, Ste 600Mankato, MN 56001
P 507.625.2727F507.388.91399
Mankato Office
5201 Eden Avenue, Ste 250Edina, MN 55436
P 952.835.9090F952.835.3261
Edina Office
Lighting the path forward
Leah Davis, CPA
Partner | Abdo
email@abdosolutions.com
Direct Line 507.524.2347
Proposal for Classification and Compensation Study for
101 4th Street East
Hastings,MN 55033
City of Hastings
November 12, 2021X-E-02 a-c
Lighting the path forward
AbdoSolutions.com
Kelly Murtaugh, Assistant City Administrator/HR DirectorCity of Hastings
101 4th Street E
Hastings, Minnesota 55033
November 12, 2021
Dear Kelly,
Thank you for the opportunity to submit this proposal to the City of Hastings (the City) for a classification and compensation study. Based on our past experience with government clients of comparable size and complexity, we believe the following scope of services and company investment will provide your City with outstanding and comprehensive program that meets the following project goals:
•Establish and ensure fair and equitable compensation relationships within the City;•Maintain full MN Pay Equity reporting compliance;•Ensure wage competitiveness within the external market;•Promoteretention of current employees; and•Provide tools and training to City staff to successfully implement and administer the compensation program.
We are confident that by utilizing our experienced and trained staff we can help the City of Hastings achieve your desired project and organizational outcomes. Our proposal is based on the needs of your organization and the experiences we have had working on similar projects with other government clients of your size.
Investment by the City for services to be provided by Abdo is indicated in the Value section of this proposal as well as the Agreement in Appendix A.Abdo would like to thank the City for this opportunity, and we look forward to exceeding your expectations and developing a long-term partnership.
Sincerely,
Abdo
Leah Davis, CPAPartner
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Executive Summary
PARTNERSHIP WITH ABDO
Our success has been driven by utilizing staff that are experienced and well
trained in human resources management,market wage analysis,and
governmental planning and operations.We understand that attention to detail,
project approach,management communication, and quality project
deliverables are important factors in your selection process.We are confident
in our ability to help the City of Hastings achieve its desired project and
organizationaloutcomes.
Our approach to this project is to engage with City staff to ensure we have an
exceptional understanding of the project, each leader’s role in the project,
overall expectations and desires,as well as exceptions to standard operations.
Throughout the project there will be periodic meetings,usually by phone or
video conference,with City staff to share information,solicit input,and provide
updates.Based on our experience,we will structure each phase of the project
to emphasize efficiencies and streamline processes.
Ability to successfully complete all requirements - A component of our
mission statement is a philosophy that we will assist clients in reaching their
maximum potential through open communication and teamwork.This means
we will do the following for you:
•Present to you a clear project plan
•Use technology to share and collaborate
•Provide an environment that solicits and welcomes ideas and strategies
from the City team
•Present recommendations in clear,concise,and non-technical terms to all
members of the City team
•Collaborate with the City team and Council to ensure alignment with City
compensationphilosophies and practices
•Return phone calls and emails promptly
YOUR NEEDS:
Job Description
Review
Position Scoring &
Classification
Market Wage
Analysis
Compensation
Structure
Development
Pay Equity
Compliance
Testing
Compensation
System Tools &
Training
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What Our Clients Say
CLIENT REFERENCES
We have long-term relationships with many of our clients.The local government clients listed below serve as asampleofreferencesofthosethatwehavesuccessfullypartneredwithfor position classification and compensationanalysisengagements.Additional references are available upon request.
City of Chisago City
John PechmanCity AdministratorP651-257-7634
2021 EngagementLeahDavis,Project Leader
City of Vadnais Heights
Kevin WatsonCity AdministratorP651-204-6010
2021 EngagementLeahDavis,Project Leader
City of New Prague
Michael JohnsonCity AdministratorP952-758-4401
2020/2021 EngagementLeahDavis,Project Leader
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Project Plan and Timeline
PROJECT PHASE TIMELINE
Introduction and Project Orientation
The first step to this project is to review and analyze data provided by the City. This includes
the existing job descriptions and current compensation model, and any other data the City
has available. After this review, we will meet with the City Management team to discuss
overall project expectations, outcomes, and timelines. We believe it is important to hold a
kickoff meeting with the City Management team, either virtually or in-person, to discuss the
project timelines and process as well as to identify City expectations, identify current
compensation challenges, and define strategic project goals. This is also an opportunity for
the City Management team to ask for clarification on the project and address any questions
they may have.
DAY 1 –15
Depending on City
Availability
Comprehensive Job Description Review and Position AnalysisWe will provide a comprehensive review of the current job descriptions and titles and recommend revisions to ensure compliance with the Fair Labor Standards Act (FLSA) and the Americans with Disabilities Act (ADA) and format to ensure consistency. Findings and recommendations will be presented to City Management and City Council, if applicable, for final review and approval. We will also review the City’s current benefit offerings and provide recommendations based on emerging best practices.
DAY 16 –35
Position Classification EvaluationUsing the updated job descriptions, the Hay Method pointing methodology (see Appendix Afor more information on the Hay Methodology), which we have utilized for over 10 years, and in collaboration with City leadership, we will evaluate and assign position point values for each City position and organize positions into hierarchical order, based on point assignment.
DAY 36 –50
For most organizations it is very important to work with a firm that has a clear implementation process that will
provide frequent and consistent progress updates. Abdo has included update meetings with the City Management
team proposed in the project plan. These meetings will be designed to provide project updates, solicit comments,
review progress, and address any challenges. Abdo utilizes resources available with our entire team to ensure projects
are completed within the provided timelines. The schedule identifies a completion date on or before April 15, 2022.
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Project Plan and Timeline Continued
PROJECT PHASE TIMELINE
Labor Market Employers Criteria and SelectionOur team will solicit input from City leadership to develop a list of comparable organizations, based on size, geography, and City services, to be used in the wage analysis.
Compensation AnalysisAbdo will complete a full wage/compensation market survey, utilizing the Minnesota Local Government Salary and Benefit Survey put out by the League of Minnesota Cities as well as direct wage data surveys and private sector compensation resources, where applicable. This analysis will include recommendations for maintaining marketable wage scales into future years as well as evaluating approaches to longevity recognition.
DAY 41 –70
Classification & Compensation System and Compliance Testing
The overall structure of the compensation study and system structure will be reviewed and
updated according to the compensation and performance management philosophies of the
City and will include identification of current or potential pay compression, pay equity, and
collective bargaining issues. Once the proposed structure is completed, all data will be tested
for compliance with Federal and State regulations, including Minnesota Pay Equity reporting
for all municipal entities.
DAY 71 –89
Final Documents and System PresentationAll documents will be reviewed with the City Management team in draft format before finalization and distribution. Final reporting will include comprehensive project findings, recommendations, description of overall methodology utilized in the project, data analysis, and estimated implementation costs and process. The City will be provided with all updated job description files, FLSA evaluation documentation, and all tools and resources to administer and maintain the proposed compensation model into the future. Once approved by the City Management team, report findings and recommendations will be presented, in person or virtually, to the City Council for review and discussion.
DAY 90 –105
Depending on City Availability
Implementation and System Administration Training/Support -Optional
Our team will develop and lead a customized compensation system implementation and
maintenance program for leadership and staff. Training will include suggestions for
appropriately awarding step increases and documented plan administration best practices.
Develop Position Reclassification and Review Policy
We will work with internal leadership to develop a formal position review and reclassification
request policy to consistently evaluate future requests for position scoring or compensation
changes.
Optional and
depending on City
availability
following Council
approval of
program
Post Contract Support Services -OptionalOn an as needed basis, Abdo will be available to review new or significantly altered job descriptions, including determination of points and salary ranges for the position, as well as provide documentation support for future pay equity reporting to the Minnesota Department of Management.
Optional & only as directed by the City
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Value
Abdo Contract Task Total not to exceed costs
Comprehensive Job Description Review and Position Analysis –
assumes 65 individual positions $3,200.00
Position Classification Evaluation –assumes 65 individual positions 3,100.00
Labor Market Employers Criteria & Selection and Compensation
Analysis -assumes 65 individual positions 6,700.00
Classification & Compensation System Development and
Compliance Testing
4,500.00
Final Documents and System Presentation 3,000.00
OPTIONAL
Implementation and System Administration Training/Support
Develop Position Reclassification and Review Policy and provide
internal leadership implementation training
2,000.00
2,700.00
TOTAL PROJECT INVESTMENT (Lump sum not to exceed)$25,200.00
Post Contract Services
Per Position Scoring/Classification Fee
Hourly consulting and post contract services
$325.00/position
$195.00 –$385.00/hour
Depending on staff level
required
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Value
SERVICE GUARANTEE
Our work is guaranteed to the complete satisfaction of the client. If you are not completely satisfied with the services
performed by Abdo, we will, at your discretion, either refund the price or accept a portion of said price that reflects the
level of value received. Upon payment of each of your scheduled payments, we will judge you have been satisfied.
PRICE GUARANTEE
Furthermore, if you ever receive an invoice without first authorizing the service, payment terms, and price, you are not
obligated to pay for the unauthorized service. Please understand, however, that the price we have quoted considers
and relies upon the following:
•The information you agree to provide is on time and complete to the degree indicated in our agreement.
•Your key management, finance, or human resources team members don’t change during our service period.
•No undisclosed or newly arising complexities, claims, or significant transactions, occur that impact our service
period. This includes emergence of yet unspecified revisions to any prior period work that would need to occur
before we can perform our agreed services.
•No new tax, regulatory, or other reporting requirements are introduced between now and the end of our service
period.
ADDITIONAL SERVICES
Should you request services in addition to the Contracted Services, we will provide you with proposed fees for the
services to be provided. You shall be required to sign a written or electronic confirmation of your request for additional
services prior to implementation.
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Appendix A
HAY METHODOLOGY INFORMATION
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Hay Methodology Information
As part of our position analysis and classification,positions will be scored using a plan adapted from the Hay Method.The model assigned each position a score in the following categories (adapted from the State of Minnesota 2009 HayManual):Know-How, Problem Solving, Accountability, and Special Conditions.The following information provides asummary of factors and considerations used to apply this classification method.
Know-How represents the knowledge,skills and abilities an employee needs to be successful in a particular job.
The Hay evaluation method places the greatest emphasis on Know-How.Know-How is defined as an expert skill,
information or body of knowledge that imparts an ability to cause a desired result.The Know-How category is the most
heavily weighted category.If a position is more easily learned, the position will point toward the lower end of the scale.
Know-How category is further divided into three parts:Depth and Breadth of Job-Specific Knowledge (aka Technical
and Specialized Know-How and Job-Specific Knowledge);Integrating Know-How (aka Managerial Breadth or Know-
How);and Human Relation Skills (aka Human Relations Know-How). A number is assigned for total Know-How points
by making several separate choices for each of the three elementsdescribed and an overall assessment.
Job-Specific Knowledge includes the position's requirements for knowledge and skills related to practices,
procedures, specialized techniques and professional disciplines.It also includes basic and job-specific
supervisory and managerial KSAs,when appropriate.This aspect of Know-How does not make distinctions
among differently-sized managerial jobs nor does it include human relation skills.It is important to remember
that this element measures the requirementsof the position, not the qualificationsof an incumbent.
Integrating Know-How considers the need to integrate and manage progressively more diverse functions and
is used to rank managerial breadth and scope,from similar to very different functions.When required,basic
and job-specific supervisory and managerial knowledge,skills and abilities are included in the Job-Specific part
of a Know-How rating.The overall size of an organization directly influences the number of managerial breadth
categories, because the organizational size often reflects requirements for increased managerial complexity
and diversity.
Human Relation Skills is the third element of a job's Know-How rating.It is the active,practicing interpersonal
skills typically required for productive working relationships to work with,or through, others inside and/or
outside of the organization to get work accomplished.It assumes that each job requires a foundation of basic
human relations skills.To be effective,an employee must typically be proficient at the highest level of Human
Relations Skill regularly required for the position.
Problem Solving is the process of working through details of a problem to reach a solution.Problem solving may
include mathematical or systematic operations and can be a gauge of an individual's critical thinking skills.ProblemSolving measures the intensity of the mental process that uses Know-How to: (1)identify,(2)define, and (3)resolveproblems.It is a percentage of Know-How, reflecting the fact that "you think with what you know."This is true of eventhemostcreativework.Ideas are put together from something already there.The raw material of any thinking isknowledge of facts,principles and means.
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Hay Methodology Information Continued
Problem Solving –continued
Context includes the influences or environment that limit or guide decision-making such as rules,instructions,procedures, standards, policies,principles from fields of science and academic disciplines.Positions areguided by organizational, departmental or functional goals, policies, objectives and practices circumscribed byprocedures and instructions.In general, policies describe the "what"of a subject matter, procedures detail thesteps needed to follow through on a policy (i.e.,how, where, when, by whom) and instructions outline thespecific aspects of how to perform the tasks, such as the operation of a machine or how to select theappropriate letters to use in particular situations.
Thinking Challenge includes the nature of the problems encountered and the mental processes used toresolve the problems.The scale ranges from simple problems to very complex issues,with the premise thatsimpleissuesrecur regularly in the same form and after a while are resolved by rote or instinct, but very difficultissuesrequire substantial thinking and deliberation.The types of situations encountered and the processesinvolvedinidentifying,defining or resolving related problems are considered.Thinking Challenge reflects thedegree of difficultyin findingimprovementsand adapting to changes.
Accountability does not mean being responsible for getting one's own work done.Rather, it reflects responsibility
for actions and their consequences and the measured effect of the job on end results for the organization.
Accountabilityincludes three factors:Freedom to Act/Empowerment, Magnitude, and Job Impact.
Freedom to Act/Empowerment involves the degree of personal or procedural control or guidance exercised
over the position.For example,what constraints are put on an employee in this job? How closely supervised is the
position? What kinds of decisions are made higher up in the organization?
Magnitude is the portion of the total organization encompassed by the position's primary purpose.It's most
typically indicated by the general dollar size of the area(s)most directly affected by the job,i.e.,the resources
over which the position has control or influence. A variety of factors are considered such as size of budget the
employee is responsible for, what degree of influence is held and is this person a decision maker.
Job Impact is considered to be indirect (indirect or contributory)or direct and measurable (shared or primary).
It involves the way in which the position's actions affect end results in the agency.For example,how does the
employee influence the business -directly or indirectly? Does the employee provide advisory or interpretive
services for others to use in making decisions?Is the job an information-recording one? Does it provide a
necessary service with a relatively small effect on the business of the agency? "Contributory" and "primary"
are, by far, the most frequentlyused options.“
Special Conditions consider the physical effort,environmental conditions, hazard exposure,and sensory attention
demands that an employee is commonly subject to in the position.For example, two positions may be assigned
identical points in all other areas but the position that is regularly required to work in extreme outdoor conditions (i.e.
heat or extreme cold) would receiveadditional points for these factors.
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Appendix B
ABDO WORKFORCE SOLUTIONS TEAM
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13
100 Warren Street, Ste 600
Mankato, MN 56001
P 507.625.2727
F 507.388.9139
Mankato Office
5201 Eden Avenue, Ste 250
Edina, MN 55436
P 952.835.9090
F 952.835.3261
Edina Office
TEAM MEMBER BIO:
Partner, Abdo HR and Payroll Services
leah.davis@abdosolutions.com
Direct Line 507.524.2347
EDUCATION
•Bachelor of Science in Accounting and Business Administration, Minnesota State University, Mankato
•Continuing professional education
PROFESSIONAL MEMBERSHIPS
•American Institute of Certified Public Accountants (AICPA)
•Minnesota Society of Certified Public Accountants (MNCPA)
•Society for Human Resource Management (SHRM)
QUALIFICATIONS
•Human Resources Management, Consulting, and Compliance, including a focus on leveraging technology to
maximize employee experience and streamline administrative HR workflows
•HR and Leadership Team Coaching and Training, focused on building technical and practical skills to improve
overall performance and operational effectiveness
•Employee Benefit Plan Administration and Analysis, including Affordable Care Act (ACA) compliance, benefit
workflow optimization, and evaluation of benefit plan design options to evaluate costs and maximize employee
value recognition
•Employee Incentive and Compensation Plan Development, including position classification and compensation
plan design and total compensation analysis
•Complex State and Federal employment tax and regulatory compliance consulting, including wage and hour
analysis and tax agency amendments and negotiations
Leah Davis
CPA
Leah joined the firm as President of AEM Workforce Solutions in 2016 and spends her time helping employers find
creative ways to overcome their HR and payroll challenges. As an active CPA and after owning and operating an
outsourced HR and payroll consulting business for nearly a decade, Leah has worked with employers across all
industries and has several years of experience in public accounting, focusing on business tax and financial
institutions. This variety of experiences equip Leah with a unique perspective on the complex HR, financial, and
strategic planning issues that employers face every day.
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100 Warren Street, Ste 600
Mankato, MN 56001
P 507.625.2727
F 507.388.9139
Mankato Office
5201 Eden Avenue, Ste 250
Edina, MN 55436
P 952.835.9090
F 952.835.3261
Edina Office
TEAM MEMBER BIO:
Senior Manager
julie.flaten@abdofs.com
Direct Line 952.715.3050
EDUCATION
•Bachelor of Science, Business Administration, University of Wisconsin -Stout
•Associates Degree, Accounting, Northwest Wisconsin Technical College
PROFESSIONAL MEMBERSHIPS
•Minnesota Public Employer Labor Relations Association
•National Public Employer Labor Relations Association
AFFILIATIONS
•Serves on the League of Minnesota Cities Human Resource Policy Committee
QUALIFICATIONS
•20+ years of experience working in local governments
•Experience in Human Resources management, including hiring, benefits management, FMLA, COBRA,
Worker’s Compensation, classification and compensation, employee investigation and negotiation of union
contracts
•Experience in various financial and payroll functions, annual budget development and audit
•Experience in City Administration, policy development, and data compliance
•Experience overseeing budget compliance, analysis, and monitoring fiscal performance,
•Knowledge of Microsoft Office Suite, Neogov (for hiring purpose), and Tyler Technologies
Julie Flaten
Julie joined the Firm in 2021 as a Senior Manager in the Financial Solutions group. Julie has over 20+ years of
experience working in local government at the State, County, and City levels. Prior to joining AEMFS, Julie spent
fourteen years working for a Minnesota City. In this role, she served as interim City Administrator, Administrative
Services Director/Human Resources Director for seven years and held the role of Assistant Finance Director for six
years. This combination of administration, finance and human resource experiences equip Julie with a unique skill
set to assist local governments.
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100 Warren Street, Ste 600
Mankato, MN 56001
P 507.625.2727
F 507.388.9139
Mankato Office
5201 Eden Avenue, Ste 250
Edina, MN 55436
P 952.835.9090
F 952.835.3261
Edina Office
TEAM MEMBER BIO:
Senior HR Associate
Brittany.bauer@abdosolutions.com
Direct Line 507.304.6836
EDUCATION
•Greater Mankato Growth Young Professionals
•Southern Minnesota Human Resource Association (SMAHRA)
QUALIFICATIONS
•Payroll processing and compliance, HRIS/payroll software implementation support, maximizing HRIS/payroll
system utilization, timeclock, HR, and payroll database integrations
•HR and payroll process review, improvement, and training
•Development of effective recruiting, hiring, employee onboarding, engagement and retention programs and
policies
•HR/payroll compliance, employee management and communication, unemployment claim management, and
employee off-boarding support
•Worker’s compensation administration, including Carrier Communications, employee claim management, OSHA
reporting/filing, and annual policy
audit reporting
•Employee benefits administration, including plan compliance, COBRA, benefit program analysis, employee
enrollment/terminations, and plan renewals
Brittany Bauer
Brittany Bauer joined AEM Workforce Solutions in 2017 as a Human Resources Specialist after spending many years
in the staffing and recruiting industry as well as providing HR, payroll, and operational support for an agribusiness
software development company. Brittany has over 10 years of both HR and payroll experience working with clients
from a broad range of industries including agriculture, non-profit and government. She has a passion for leveraging
technology to streamline processes, manage compliance, and improve the overall employee experience.
Brittany enjoys spending time with her family and friends, camping, visiting State parks and listening to music. She
also enjoys watching Twins baseball with her husband. Brittany has two busy children and resides in Southern MN.
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Agreement for Services
THIS AGREEMENT, is made and entered into on January 26, 2022, by and between City of Hastings (hereinafter
referred to as the “Client”), and Abdo (hereinafter referred to as “Abdo” or the “Contractor”).
Articles of Agreement & Recitals
WHEREAS, the Client is authorized and empowered to secure from time to time certain professional services through
contracts with qualified consultants; and
WHEREAS, the Contractor understands and agrees that:
1.The Contractor will act as an Independent Contractor in the performance of all duties under this Agreement.
Accordingly, the Contractor shall be responsible for payment of all taxes, including federal, state and local taxes
and professional/business license fees related to its own operations and arising out of the Contractor’s activities;
2.The Contractor shall have no authority to bind the Client for the performance of any services or to obligate the
Client. The Contractor is not an agent, servant, or employee of the Client and shall not make any such
representations or hold itself out as such;
3.The Contractor shall perform all professional services in a competent and professional manner, acting in the best
interests of the Client at all times.
4.The Contractor shall not accrue any continuing contract rights for the services performed under this contract.
NOW THEREFORE, in consideration of the mutual covenants and promises contained herein, it is agreed as follows:
ARTICLE I
INCORPORATION OF RECITALS
The recitals and agreement set forth above are hereby incorporated into this Agreement.
ARTICLE II
LIABILITY INSURANCE
Section 1 Liability Insurance: The Contractor shall obtain professional liability insurance, at its expense with liability
insurance coverage minimums in the amount of $2,000,000, which Contractor must secure and maintain during the
term of this Agreement. Contractor will provide the Client with proof of liability insurance coverage under this
Agreement in writing upon request by the Client.
ARTICLE III
DURATION OF THE AGREEMENT
Section 1 Duration: This Agreement shall commence upon date of execution by all parties and will remain in effect until
the completion of the consulting engagement unless earlier terminated as provided in Subsections 2 and 3.
Section 2 Client’s Termination Rights: The Client may terminate this Agreement upon sixty (60) days written notice in
the event the Client determines in its sole discretion that it is not in the Client’s best interest to continue using
Contractor’s services. The Client may terminate upon ten (10) days written notice of the Contractor fails to perform its
obligations under this Agreement.
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Agreement for Services Continued
ARTICLE III--CONTINUED
DURATION OF THE AGREEMENT--CONTINUED
Section 3 Contractor’s Termination Rights: Contractor may terminate this Agreement upon thirty (30) days written
notice to the Client in the event the Client does not pay Contractor compensation as required under Article 5, Section 9
within fifteen (15) days after invoice is received by the Client. In the event of non-payment within thirty (30) days,
Contractor shall give the Client an opportunity to cure the default by giving a notice of such non-payment and an
additional five (5) days after the Client’s receipt of the notice to remit such payment, prior to giving a notice of
termination. Contractor can also terminate the Agreement with sixty (60) days written notice.
ARTICLE IV
RENEWAL OF THE AGREEMENT
Section 1 Renewal Period: Not less than ninety (90) days prior to the expiration of the term of this Agreement, the
Client may provide written notice of its intent to renew this Agreement for an additional term of up to three years upon
terms and conditions agreed upon by both parties to the Agreement. If no such renewal agreement is executed by the
parties, the Agreement terminates without further action of either party on the one year anniversary date, or the
completion of the consulting engagement, whichever is longer.
ARTICLE V
GENERAL
Section 1 Authorized Client Agent: The Client’s authorized agent for the purpose of administration of this Agreement is
the Client Operations Manager. Said agent shall have final authority for approval and acceptance of the Contractor’s
services performed under this Agreement and shall further have responsibility for administration of the terms and
conditions of this Agreement. All notices under this Agreement shall be sent to the person and address indicated below
on the signature lines.
Section 2 Amendments: No amendments or variations of the terms and conditions of this Agreement shall be valid
unless in writing and signed by the parties.
Section 3 Assignability: The Contractor’s rights and obligations under this Agreement are not assignable or
transferable, but the Client’s rights and obligations may be assigned to any successor entity upon ten (10) days notice.
Section 4 Data: Any data or materials, including, but not limited to, reports, studies, photographs or any and all other
documents prepared by the Contractor or its outside consultants in the performance of the Contractor's obligations
under this Agreement shall be the exclusive property of the Client, and any such data and materials shall be remitted to
the Client by the Contractor upon completion, expiration, or termination of this Agreement conditioned upon Client’s
payment of all fees and expenses due to Contractor pursuant to this Agreement. Further, any such data and materials
shall be treated and maintained by the Contractor and its outside consultants in accordance with applicable federal,
state and local laws. Further, Contractor will have access to data collected or maintained by the Client to the extent
necessary to perform Contractor's obligations under this Agreement. Contractor agrees to maintain all data obtained
from the Client in the same manner as the Client is required under the Minnesota Government Data Practices Act,
Minnesota Statutes Chapter 13 or other applicable law (hereinafter referred to as the "Act"). Contractor will not release
or disclose the contents of data classified as not public to any person except at the written direction of the Client. Upon
receipt of a request to obtain and/or review data as defined in the Act, Contractor will immediately notify the Client. The
Client shall provide written direction to Contractor regarding the request within a reasonable time, not to exceed fifteen
(15) days. The Client agrees to indemnify, hold harmless and defend Contractor for any liability, expense, cost,
damages, claim, and action, including attorneys' fees, arising out of or related to Contractor's complying with the
Client’s direction. Upon termination and/or completion of this Agreement, Contractor agrees to return all data to the
Client, as requested by the Client.
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3
Agreement for Services Continued
ARTICLE V--CONTINUED
GENERAL--CONTINUED
Section 5 Entire Agreement: This Agreement is the entire agreement between the Client and the Contractor and it
supersedes all prior written or oral agreements. There are no other covenants, promises, undertakings, or
understandings outside of this Agreement other than those specifically set forth. Any term, condition, prior course of
dealing, course of performance, usage of trade, understanding, or agreement purporting to modify, vary, supplement, or
explain any provision of this Agreement is null and void and of no effect unless in writing and signed by representatives
of both parties authorized to amend this Agreement.
Section 6 Severability: All terms and covenants contained in this Agreement are severable. In the event any provision
of this Agreement shall be held invalid by any court of competent jurisdiction, this Agreement shall be interpreted as if
such invalid terms or covenants were not contained herein and such holding shall not invalidate or render
unenforceable any other provision hereof.
Section 7 Contractor Fiscal Decision Waiver: Contractor is responsible for providing the Client with timely and accurate
human resources recommendations and information that allows the Client the ability to make final human resources
decisions. Contractor will provide final human resources recommendations, but Contractor is not responsible for the
final decisions made regarding human resources matters and Client shall indemnify and hold Contractor harmless from
the same.
Section 8 Client Employment of Contractor’s Employees; Should the Client desire to employ the Contractor’s employee
that is assigned to the Client during the term of this Agreement, it must have the written consent of the Contractor to
enter into a Client employee contract with the Contractor’s employee. Should the Contractor agree to such
arrangement, the agreement will include a payment equal to 50% of the annual contracted cost, in addition to the
annual contracted cost already paid to the Contractor. This restriction on employment applies only during the term of
this Agreement and for a period of six (6) months thereafter.
Section 9 Compensation: The parties agree that the Contractor shall be paid compensation for the services provided
hereunder, based on the fees indicated in the proposed client investment schedule and under the attached scope of
services. Additional fees will not be incurred without prior approval of the Client.
Section 10 Additional Services: Should the Client request additional services in addition to the Contracted Services, the
Contractor will provide the Client with proposed fees for the additional services to be provided. The Client shall provide
a written or electronic confirmation prior to the proposed services implementation.
Section 11 Outside Contractors: It shall be the responsibility of Contractor to compensate any other outside consultants
retained or hired by Contractor to fulfill its obligations under this Agreement and shall be responsible for their work and
Contractor, by using outside contractors, shall not be relieved of its obligations under this Agreement.
LIMITATION OF LIABILITY
Section 1 Disputes: If any dispute arises between Abdo and the Client under this Agreement, the dispute shall first be
submitted to mediation. The costs of mediation shall be shared equally by the parties. All disputes between Abdo and
the Client arising out of this Agreement which cannot be settled directly or through mediation shall be resolved through
binding arbitration in Dakota County, Minnesota in accordance with the rules for resolution of commercial disputes then
in effect of the American Arbitration Association, and judgment upon the award may be entered in any court having
jurisdiction thereof. It is further agreed that the arbitrator may, in its sole discretion, award attorneys’ fees and costs to
the prevailing party.
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5
WHEREFORE, this Agreement was entered into on the date set forth below and the undersigned, by execution hereof,
represent that they are authorized to enter into this Agreement on behalf of the respective parties and state that this
Agreement has been read by them and that the undersigned understand and fully agree to each, all and every provision
hereof, and hereby, acknowledge receipt of a copy hereof.
City of Hastings
101 4th Street E
Hastings, Minnesota 55033
Name
Title
Date
Abdo
100 Warren Street, Suite 600
Mankato, MN 56001
Name
Title Partner
Date 01/26/2022
Agreement for the Provision of Professional Services
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RESOLUTION #12-:n-07
Resolution of the City Council of the City of Hastings Establishing Criteria
For the Implementation of a Compensation Program for Positions in the
City of Hastings that Provides for a More Reasonable
Comparison to Those Cities in the Twin Cities Metropolitan Area
With Similar Population Ranges
WHEREAS, The City of Hastings seeks to attract and retain quality employees
for its organization, and;
WHEREAS, The City of Hastings has maintained compliance with the Pay
Equity Act throughout the years of the Act's existence; and
WHEREAS, Remaining competitive with other comparable Cities in the Twin
Cities Metropolitan area is a goal of the City Hastings when establishing compensation
schedules for its employees; and
WHEREAS, During the last several years it has become apparent that
compensation schedules for certain positions with the City of Hastings have not kept pace
at a reasonable level to similar positions in comparable Cities in the Twin Cities
me~ropolitan area; and
WHEREAS, a significant concern ofCity employees as identified in an
employee survey is the observation that the City of Hastings pay and benefits are not
competitive when compared to similar sized Cities in the metropolitan area; and
WHEREAS, During Labor Union contract negotiations, a frequent theme
addressed by the Union leadership is the further erosion of the Hastings compensation
schedule when compared to similar positions in comparably sized Cities; and
NOW, THEREFORE BE IT RESOLVED, BY THE CITY COUNCIL OF
THE CITY OF HASTINGS, that effective in January, 2008, the City Council intends to
begin the process of implementing a compensation schedule that more reasonably
compares to similar sized Cities in the Twin Cities Metropolitan Area, with the following
guidelines used to implement the plan:
A.) Cities with populations ranging from 15,000-35,000 who report in the League
of Minnesota Cities compensation survey shall be used as comparables.
B.) The average compensation for those Cities identified in (A.) above shall be
used in determining the comparable market rate compensation schedule.
C.) Compensation schedules for positions should be at the average of the
comparable cities' compensation schedules over a three year period,
beginning in 2008 and implemented in its final step in 2010.
D.) The City shall remain in compliance with the Pay Equity Act.
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BE IT FURTHER RESOLVED, that City Staff present for City Council approval
at the regular meeting of the City Council scheduled for Tuesday January 22,2007 the
proposed 2008 compensation schedule for those City positions currently not included as
part of a collective bargaining agreement.
Adopted by the City Council of the City of Hastings,
This 17th Day of December, 2007
Ayes: Councilrranbers Alongi, Hazlet, Hollenbeck, Riveness,Schultz,
Nays: None Slavik and Mayor Hicks
Absent: None
Paul Hicks
Mayor .
L&IltuilL tick
Melanie Mesko Lee
City Clerk
seal-
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RESOLUTION # ______
AMENDING RESOLUTION #12-23-07 of the City of Hastings
Establishing Criteria for Compensation
WHEREAS, the City Council adopted Resolution 12-23-07 on December 17, 2007, that
implemented a compensation system based on a market comparison with cities of 15,000 to
35,000 population within the seven-county Metro region; and
WHEREAS, the City Council recognizes that having a consistent definition of comparison cities
will aid transparency as well as implementation over time; and
WHEREAS, the City Council recognizes that cities of similar population within the region are
reasonable comparisons for evaluating the labor market;
WHEREAS, the City desires to amend Resolution 12-23-07 to also include several cities with
close proximity to Hastings as part of the local labor market.
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
HASTINGS, that it hereby adopts the following policy concerning the establishment of criteria
for employee compensation:
A) The City of Hastings employee compensation schedule will be based upon a comparison
of cities with populations from 15,000 to 35,000 population in the seven-county Metro
region and the Cities of Cannon Falls, Cottage Grove, Northfield, and Red Wing.
B) The median wage of the comparison cities shall be used in determining the comparable
market rate compensation schedule.
C) The City shall remain in compliance with the Pay Equity Act.
Passed the 7th day of February, 2022.
Mary Fasbender, Mayor
Attest:
Kelly Murtaugh, City Clerk
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