Resolution No. 95011
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RESOLUTION NO. 9501
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF
AN AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND
THE MERCER GROUP, INC. FOR A COMPENSATION STUDY
WHEREAS, the City of Vernon desires to retain the services of
an independent contractor to prepare a compensation study of all
employees except police and fire to facilitate decisions on compensation
policies and procedures to ensure salaries included in the study are
competitive with comparable public and private sector employers in the
relevant labor market; and
WHEREAS, the City Attorney has determined that The Mercer
Group, Inc. ("Mercer") is qualified and capable of furnishing the
labor, materials and expertise necessary to perform the services that
the City requires; and
WHEREAS, the City and Mercer desire to enter into an
Agreement setting forth the terms and conditions under which Mercer
shall perform the study; and
WHEREAS, the City Council of the City of Vernon has
determined that, pursuant to the provisions of subsection (a) of
Section 2.27 of the Vernon City Code, it is in the public interest and
necessity to enter into an agreement with Mercer.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the recitals contained hereinabove are true
and correct.
SECTION 2: The City Council of the City of Vernon hereby
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approves the Agreement with Mercer, in substantially the same form as
the copy which is attached hereto as Exhibit A and incorporated by
Ireference.
SECTION 3: The City Council of the City of Vernon hereby
authorizes the Mayor or Mayor Pro-Tem to execute said Agreement for,
and on behalf of, the City of Vernon and the City Clerk is hereby
authorized to attest thereto.
SECTION 4: The City Council of the City of Vernon hereby
directs the City Clerk, or her designee, to send two fully executed
jAgreements to:
The Mercer Group, Inc.
Attn. Phillip G. Robertson, Senior Vice -President
3443 Highway 39 North
Louisburg, North Carolina 27549
SECTION 5: The City Council of the City of Vernon hereby
authorizes the City Administrator, or his designee, to make whatever
nonsubstantive, administrative and/or text changes, upon advice of
counsel, to the Agreement.
SECTION 6: The City Clerk of the City of Vernon shall
certify to the passage of this resolution, and thereupon and
thereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this 17th day of December, 2007.
ATTEST:
"_Ic� / o
_ -
M NUELA GIR , City Clerk
Name: Loonis C. Malburg
Title: Mayor /r y —L
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, MANUELA GIRON, City Clerk of the City of Vernon, do hereby
certify that the foregoing Resolution, being Resolution No. 9501, was
duly adopted by the City Council of the City of Vernon at a regular
meeting of the City Council duly held on Monday, December 17, 2007, and
thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of
Vernon.
(SEAL)
MANUELA GIR ity Clerk
- 3 -
1-0411021
AGREEMENT
THE CITY
OF
VERNON, CALIFORNIA
Consaltants to Management
Pinpointing Workable Solutions
Corporate Headquarters:
5579 B Chamblee-Dunwoody
Suite 511
Atlanta, GA 30338
770-551-0403
FAX 770-399-9749
Proposal
For a
Compensation Study
December 7, 2007
Raleigh Office:
Mr. Phillip Robertson
3443 Highway 39 North
Louisburg, North Carolina 27549
919-496-2080
FAX 919-496-7995
MercerNC@aol.com
I. TEAM ORGANIZATION
ABOUT THE MERCER GROUP, INC.
The Mercer Group, Inc. will be the sole firm providing all services as described in this proposal.
This proposal has been made without collusion with any other person or entity.
The Mercer Group, Inc. is a management consulting firm incorporated in the State of Georgia
and operating nationwide. Founded by James L. Mercer, a long-term public management
consultant, The Mercer Group, Inc., provides management consulting services to state and local
governments, special districts, and private sector clients. The company's services include:
• Compensation and classification studies;
• Executive recruitment;
• Organization and operations analysis;
• Productivity improvement;
• Strategic planning;
• Management systems;
• Organization development and training;
• Privatization;
• Policy studies;
• Budget evaluation services; and
• General management consulting.
Mr. Mercer started his own firm in 1981 and, in 1984, merged it with another consulting firm,
Wolfe & Associates, Inc. On June 1, 1986, Mr. Mercer acquired the Human Resource and
Organizational Consulting Practice of Wolfe & Associates, Inc. This acquisition formed the
basis for Mercer, Slavin & Nevins, Inc. He sold his interest in Mercer, Slavin & Nevins, Inc.
early in 1990 and founded The Mercer Group, Inc.
Mr. Mercer is the Chief Executive Officer of our firm and can be contacted at our corporate
headquarters as follows:
James L. Mercer, President
The Mercer Group, Inc.
5579 B Chamblee-Dunwoody Road, Suite 511
Atlanta, Georgia 30338
Telephone: (770) 551-0403; FAX: (770) 399-9749
Federal Tax ID No.: 58-1877068
Web site address: http://www.mercergroupine.com
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The Mercer Group, Inc. December 7, 2007
Page 1 Vernon, California
In addition to the corporate headquarters The Mercer Group, Inc. has branch offices in:
• Dallas, Texas
• Greeley, Colorado
• Lansing, Michigan
• Phoenix, Arizona
• Raleigh, North Carolina
• Sacramento, California
• Santa Fe, New Mexico
• Washington, DC
• Winter Haven, Florida
Business Model
The Mercer Group, Inc. is a Consortium Model firm, with a core of key staff members
supplemented by associated independent consultants and specialty firms. The consortium
members work together regularly and have long personal and professional relationships. This
business model allows us to:
➢ Staff each engagement with precisely the right mix of consulting professionals, who have the
specific managerial, functional, and technical skills needed to fully satisfy the project
objectives.
➢ Eliminate pressure to assign salaried staff who may be available, but lack the experience or
capabilities necessary to be effective and efficient in serving our clients.
➢ Offer competitive rates for very senior consultants due to our reduced administrative and
overhead costs.
LISTING OF WORKING OFFICE
This project will be conducted by the Raleigh, North Carolina branch. The Raleigh branch is
staffed by Senior Vice President Phillip Robertson, Vice -President Kay Culbertson Robertson,
and Randy Davis. The Raleigh office specializes in Compensation and Classification Studies.
The staff has over 25 years experience. The Raleigh branch can be contacted as follows:
Phillip G. Robertson
Senior Vice President
The Mercer Group, Inc.
3443 Highway 39 North
Louisburg, North Carolina 27549
Telephone: (919) 496-2080; FAX: (919) 496-7995
E-mail address: MercerNC@aol.com
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 2 Vernon, California
There are not any past, on -going or potential conflicts of interest which the consultants may have
as a result of performing work for this project. The Mercer Group, Inc. has not divulged,
discussed or compared our proposal with other proposers and has not colluded with any other
proposer or parties to a proposal whatsoever. Further, Phillip Robertson has full authority to sign
this proposal on behalf of The Mercer Group, Inc.
Project Team
The team we are proposing for the City of Vernon project includes our most experienced
consultants.
The Principal in Charge of the project will be James L. Mercer. Mr. Mercer is President of our
firm. He is a Certified Management Consultant and has extensive experience in all phases of
management consulting including compensation, classification, and performance appraisal. Mr.
Mercer will be available if needed to assist in this project.
The Project Manager will be Phillip Robertson, Senior Vice President of our firm. He possesses
extensive knowledge of all phases of compensation and classification and all areas of local
government management. He will be responsible for assuring the quality of our work, the
adherence to expected schedules and the delivery of our work products.
The Vice -President supporting Mr. Robertson will be Kay Robertson. Mrs. Robertson has
extensive compensation and classification experience in both the public and private sectors.
Randy Davis is The Mercer Group's FLSA and FMLA expert.
Resumes for each of our team members are included in this section.
James L. Mercer, President
Mr. Mercer holds a Master of Business Administration degree from the University of Nevada,
Reno, and a Bachelor of Science degree in Industrial Management from the same institution. He
has also received a Certificate in Municipal Administration from the University of North
Carolina at Chapel Hill, and is a graduate of the Executive Development Program at Cornell
University. Mr. Mercer has more than 26 years experience in management consulting. He has
authored three books, co-authored three books, and has written more than 250 articles on various
phases of public management. His experience covers the following functional areas:
compensation and classification, organization analysis, management systems, productivity
improvement, seminars/training, public sector executive search, strategic planning, and general
consulting. Examples of Mr. Mercer's experience in each of these functional areas are listed
below:
Compensation and Classification
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 3 Vernon, California
• Principal consultant on a project for the Town of Jackson, Wyoming to
conduct compensation and classification study, update job descriptions,
update personnel rules and regulations, and develop a performance -based
employee evaluation system.
• Overall direction of a compensation and classification studies for the Decatur
and Springfield, Illinois Housing Authorities.
• Overall direction of a compensation and classification study for the City of
Auburn, Maine.
• Consultant on a compensation and classification study for the City of
Petersburg, Virginia.
• Overall project direction for a very large compensation and classification
study of the Jefferson County, Alabama Personnel Board which includes all
jurisdictions in Jefferson County, Alabama including the City of Birmingham.
• Overall direction and consultant for a compensation and classification study
for the City of Morristown, Tennessee.
• Overall direction and consultant for compensation and classification study and
a performance -based employee evaluation system for the City of Berkeley,
Missouri.
• Overall direction for a compensation and classification study for the City of
Del Rio, Texas.
• Overall direction of a pay -for -performance system development project for
the City of Atlanta.
• Overall direction of an executive compensation system for Dekalb County,
Georgia's three -campus, 20,000 student Community College.
• Reviewed executive compensation program for the City of Corpus Christi,
Texas.
• Reviewed the compensation and classification and benefits systems of
Conyers and Rockdale County, Georgia.
• Reviewed the compensation and classification systems, retirement systems,
and employee benefits programs for the Cities of Miamisburg and West
Carrollton, Ohio, and for Miami Township, Ohio.
• Reviewed the compensation and classification systems, retirement programs,
and employee benefits programs for the City of Atlanta, Fulton County, and
all of the jurisdictions in Fulton City, Georgia.
• Reviewed the compensation and classification systems, the retirement
systems, and employee benefits programs for Austin and Travis City, Texas.
• Overall Director of a compensation and classification system for Ouachita
Parish, Louisiana Library.
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The Mercer Group, Inc. December 7, 2007
Page 4 Vernon, California
Mr. Mercer personally worked with Dr. Rensis Likert, considered by many to be the "father of
participative management," on the design of data collection instrumentation (using Likert's
survey research instruments) to. compare 27 test and 27 control medium-sized local governments
across the country on the issues of receptivity to new technology and innovation. This
experiment formed the basis for the current national local government database in this area.
Prior to forming The Mercer Group, Mr. Mercer was President of Mercer, Slavin, & Nevins, Inc.
and a Regional Vice President of Wolfe & Associates, Inc., with which he previously merged his
own local government consulting firm, James Mercer & Associates, Inc. He has also been
Director of Government Consulting Services in the southeastern and southwestern regions of the
United States for Coopers & Lybrand. He has been a National Program Director with Public
Technology, Inc., and served as Assistant City Manager of Raleigh, North Carolina. This was
preceded by ten years of private sector and university faculty and staff experience. Mr. Mercer is
a frequent featured speaker, organizer and panelist at local government conferences,
professional, and civic clubs, etc., on issues of productivity improvement, management, office
automation, entrepreneurship, etc.
Mr. Mercer has received many honors, including the prestigious George C. Franklin Memorial
Award from the North Carolina League of Municipalities for Excellence in Public
Administration and election to Beta Gamma Sigma, the national honor society in business and
administration. He has also served on several private and public Boards, including the
University of Nevada Foundation, the School of Business Advisory Board at California
Polytechnic State University in San Luis Obispo, and the Public Administration Program at the
University of South Carolina. Mr. Mercer has been quoted in The New York Times, Forbes,
Public Management, American City and County, and many other national ;and local publications.
His professional affiliations include:
• International City/County Management Association;
• American Society for Public Administration;
• Institute of Industrial Engineers (past Chapter President);
• The. Technology Transfer Society (Board of Directors - 5 terms); and
• International Association of Quality Circles.
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The Mercer Group, Inc. December 7, 2007
Page 5 Vernon, California
Phillip Robertson, Senior Vice -President
3443 Hwy. 39 North
Louisburg, North Carolina 27549
Office telephone: 919-496-2080 Cellular telephone: 919-349-7239
Fax: 919-496-7995
Mr. Robertson is a Senior Vice - President with the Mercer Group specializing in compensation and
classification studies, organizational analysis, and performance evaluation systems. Mr. Robertson
has been with The Mercer Group, Inc. since 1998.
Mr. Robertson has 30 years experience in the public sector.
Classification and compensation studies for Hernando County, Florida; The Housing
Authority of Covington, Kentucky; the City of East Point, Georgia; Martin County, Florida;
Ouachita Parish, Louisiana, Public Library; the City of Monmouth, Oregon; the City of
Monroe, Georgia; the City of Peachtree City, Georgia; the Development Authority of
Peachtree City, Georgia; Pitt County, North Carolina; Okaloosa County, Florida; Okaloosa
County Detention Center; Martin County Sheriff's Office; Henderson, Nevada; the Town of
Berlin, Connecticut; Choctawhatchee Electric Cooperative in Defuniak Springs, Florida; the
City of Duncan, Oklahoma; Calcasieu Parish Public Library System; the City of Colonial
Heights, Virginia; Nye County, Nevada; Decatur Illinois Housing Authority; Rochester
Hills, MI; Garden City, Georgia; Glastonbury, Connecticut; the City of La Porte, Texas;
Kitty Hawk, North Carolina, Town of Holly Springs, North Carolina; Sun `N Lake of
Sebring Improvement District; Okaloosa Gas District; City of Sunny Isles Beach, Florida;
City of Frankfort, Kentucky; Peachtree City Tourism Association; the City of Sioux City,
Iowa; the City of Glen Heights, Texas; the city of Daytona Beach, Florida; the City of
Jacksonville, Florida; the City of Osawatomie, Kansas; Gordon College in Barnesville,
Georgia; Assisted Housing Risk Management Association, Iowa League of Cities; Peachtree
City Water and Sewerage Authority; Minturn, Colorado; Loma Linda, California; Public
Agency Risk Sharing Authority of California, Sacramento; Salt River Landfill, Scottsdale,
AZ.
• Former Management Information Services Director for the North Carolina Division of
Employment and Training.
• Extensive experience in organizational analysis at the local and state government levels
• Former Personnel Manager for a Division of the North Carolina State Government.
• Former Assistant City Manager for Clayton, North Carolina.
• Extensive experience in Grant Management at the Federal, State, and Local levels.
• Extensive experience and expertise with information systems management at the
Federal, State, and Local levels.
Mr. Robertson has a MA in Public Administration from Appalachian State University in Boone,
North Carolina and BA in History from Wake Forest University in Winston-Salem, North Carolina.
He has also done doctoral work at North Carolina State University in Raleigh, North Carolina.
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 6 Vernon, California
Kay Robertson, Vice -President — Raleigh Office
Mrs. Robertson is a Vice President with the Mercer Group specializing in compensation and
classification studies, organizational analysis, and performance evaluation systems. Mrs. Robertson
has been with The Mercer Group, Inc. since 1997.
She worked for seven years in the banking industry filling every position in branch banking,
including branch manager. Her employers were South Trust Bank in Atlanta, Georgia, and
NationsBank in Fayetteville, North Carolina.
Her consulting project experience includes;
• Classification and compensation studies for Hernando County, Florida; The Housing
Authority of Covington, Kentucky; the City of East Point, Georgia; Martin County, Florida;
Ouachita Parish, Louisiana, Public Library; the City of Monmouth, Oregon; the City of
Monroe, Georgia; the City of Peachtree City, Georgia; the Development Authority of
Peachtree City, Georgia; Pitt County, North Carolina; Okaloosa County, Florida; Okaloosa
County Detention Center; Martin County Sheriff's Office; Henderson, Nevada; the Town of
Berlin, Connecticut; Choctawhatchee Electric Cooperative in Defuniak Springs, Florida; the
City of Duncan, Oklahoma; Calcasieu Parish Public Library System; the City of Colonial
Heights, Virginia; Nye County, Nevada; Decatur Illinois Housing Authority; Rochester
Hills, MI; Garden City, Georgia; Glastonbury, Connecticut; the City of LaPorte, Texas;
Kitty Hawk, North Carolina, Town of Holly Springs, North Carolina; Sun `N Lake of
Sebring Improvement District; Okaloosa Gas District; City of Sunny Isles Beach, Florida;
City of Frankfort, Kentucky; Peachtree City Tourism Association; the City of Sioux City,
Iowa; the City of Glen Heights, Texas; the city of Daytona Beach; Florida; the City of
Jacksonville, Florida; the City of Osawatomie, Kansas; Gordon College in Barnesville,
Georgia; Assisted Housing Risk Management Association, Iowa League of Cities; Peachtree
City Water and Sewerage Authority; Minturn, Colorado; Loma Linda, California; Public
Agency Risk Sharing Authority of California, Sacramento; Salt River Landfill, Scottsdale,
AZ.
• Management assessments, human resources hiring systems, supervisory training, and
team building seminars for private business and state governments.
• Customer service training for state government employees involved in welfare reform
projects.
• Career counseling assessments and training for welfare recipients.
Mrs. Robertson has a BA in Marketing with a minor in Finance from Texas A&M University.
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 7 Vernon, California
RANDY DAVIS-Atlanta, Georgia
Mr. Davis retired in 2000 from the U.S. Department of Labor; Wage and Hour Division and
currently works as a consultant and provides support to The Mercer Group, Inc. He worked the
last eleven years as Branch Chief for Fair Labor Standards in the Atlanta Region which included
eight Southeastern states. He also worked sixteen years as an Investigator, eleven with the Wage
and Hour Division and five with Internal Revenue Service. As Branch Chief his responsibilities
included speaking to employer groups, training investigators and providing interpretations of the
various laws, regulations and enforcement policies to the investigators and supervisors. His areas
of expertise include the Fair Labor Standards Act (minimum wage, overtime, exemptions, child
labor), the Family and Medical Leave Act, the Employee Polygraph Protection Act, the wage
garnishment provisions of the C.C.P.A., the Migrant and Seasonal Agricultural Worker's
Protection Act and various immigration laws including those related to H-lB, H-2A and H-213
temporary foreign workers.
Mr. Davis has a Bachelors of Business Administration from the University of Louisville.
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The Mercer Group, Inc. December 7, 2007
Page 8 Vernon, California
II. EXPERIENCE
REFERENCES
The Mercer Group, Inc. has been conducting compensation and classification studies since its
inception in 1990. Phillip Robertson has been the manager of over 95 % of all Mercer Group
Compensation and Classification Studies for the past 9 years. The references below are for
classification and compensation studies similar to the City of Vernon project. All of the projects
listed below were conducted by The Mercer Group, Inc. including staff proposed for this project
and managed by a member of this team.
Ms. Barbara Dupre'
Director of Human Resources
Hernando County, Florida
20 North Main Street, Room 364
Brooksville, FL 34601
352-754-4013
FAX: 352-754-4025
Compensation and Classification Study for Board of County Commissioners, Supervisor of
Elections, Property Appraiser, Tax Collector and Clerk of Court.
The original project was completed in 1998 and fully updated in 2002.
We continue to provide services for Hernando County.
Ms. Erika Phillips, Human Resources Director
Town of Holly Springs
128 South Main Street
Holly Springs, NC 27540
919-557-3911
Compensation and Classification Study completed 2004.
We continue to provide update services
Mr. Don Tomlin
Chairman of the Board
Assisted Housing Risk Management Association
Rantoul, Illinois
309-342-8129 x 214
Compensation and Classification and Organizational Study
AHRMA is a risk management pool serving housing authorities in Iowa, Illinois, and Nebraska.
Paul Eckert, City Manager
Bridey Hayes, Human Resources Director
Sioux City, Iowa
712-279-6175
Compensation and Classification Study
Compensation Study
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Page 9 Vernon, California
Mrs. Kay Godwin
Human Resources Director
Okaloosa County Human Resources Department
601B North Pearl Street
Crestview, Florida 32536
850-689-5870
FAX: 850-689-5889
Compensation and Classification Study for Board of County Commissioners and Supervisor of
Elections.
The original project was completed in 2000. We continue to provide update services
Ms. Leigh Grantham
Vice President, Marketing and Human Resources
Choctawhatchee Electric Cooperative
Defuniak Springs, FL
850-892-2111
Classification and Compensation Study
The original project was completed in 2000.
A comprehensive update was conducted in 2004.
We continue to provide update services.
Mr. Jamie Justice
Town Manager
Town of Mooresville, North Carolina
413 North Main Street
Mooresville, N.C. 28115
Compensation Study for Public Safety Employees 2007
Mr. Dennis R. Halloway, City Manager
Ms Barbara Nicholson, Personnel
City of Loma Linda
25541 Barton Road
Loma Linda, California 92354
909-799-2814
Compensation and Classification Study
Additional references and experience can be provided upon request.
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The Mercer Group, Inc. December 7, 2007
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III. PROJECT PURPOSE, SCOPE, AND EXPECTATIONS
A. Purpose of Study:
The primary purposes of the compensation study for the City of Vernon are to:
• Respond to and reflect changing market conditions as they affect salary range
designations for various classes of positions;
• Ensure equity and consistency among similarly classified positions.
Facilitate final decisions on matters of compensation policy, procedure, and
implementation of study recommendations.
B. Primary Study Objective:
Ensure that salaries for the City's employees included in the study are
competitive with comparable public and private sector employers in the
relevant labor market.
Based on the project scope the deliverables will include but not be limited to:
1. Recommend base salary ranges that are competitive with the external market and
equitable with comparable internal jobs.
2. Work closely with the employees and management.
3. Recommend an effective, highly flexible and easily administered and maintained system.
4. Provide a plan and a schedule for implementation.
5. Make presentations to the City Administrator and Council, as needed.
The specific results of the Compensation study are displayed in Exhibit I.
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EXHIBIT I
RESULTS OF COMPENSATION EVALUATION:
• Development of comprehensive market survey instrument for
continued use by the organization;
• Development of appropriate salary guidelines;
• Assignment of appropriate salary range to each
classification; and
• Development of written guidelines of the total system.
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IV. PROJECT APPROACH
The Mercer Group, Inc. believes that the Compensation Study must have extensive client
participation. Our experience has shown that successful assignments are characterized by:
• A mutual understanding between the client and the consultant staff of the objectives, study
process, timing, and end products of the study;
• A thorough understanding of the current situation by the consultants before proceeding with
detailed analysis;
• Providing opportunities for participation and input by staff; and
• A thorough review of draft reports with the City Administrator, Councilmember and others
identified by council.
Our work plan includes provision for each of the items listed above. The specific participation
of City officials and staff is described as follows:
City Administrator and/or Mayor & Council- The Principal client will receive a thorough
briefing and description of the study process and methodology. At the end of the study, the
principal client will receive a briefing on all findings and recommendations as well as briefings
throughout the process as appropriate. It is important that the principal client be involved in the
key policy issues to ensure the overall effectiveness of the resulting classification and compensa-
tion systems to meet the needs of the organization.
Employees — All employees whose positions are affected by the study must feel that they have a
role in the process and that their input is both sought and welcomed. That role and input will be
introduced and explained by a thorough and accurate initial presentation about the project.
The Mercer Group, Inc. approach to a Compensation Study stresses participation at all levels.
The result will be a new system that is truly developed by those who must live with it.
Work Program and Schedule
In order to meet the client's specific objectives for this project, we have developed a work plan
consisting four (4) steps, as follows:
STEP 1. Orientation
Because of the significance of a comprehensive compensation study, a clear understanding of
and agreement to the work plan is critical. We will begin the project by meeting with the City
Administrator, Department Heads and whoever else is designated to clarify the following
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issues:
• Specific issues regarding the current pay structure(s);
• Specific issues regarding Departments and Divisions;
• Understanding of the objectives for the systems;
• Review current job descriptions in order to obtain a thorough understanding of each position
included in the study by way of the benchmarking process and pay range updates;
• Begin identification of benchmark positions;
• Begin development of a list of organizations for the "market analysis," including public and
private employers; and
• Implementation strategy for results of the study.
At the orientation, we will also obtain information on current practices. We will then provide the
initial communication to employees through group meetings, written explanations, or both,
depending on the needs of the organization. The Mercer Group, Inc. prefers to meet with
employee groups to review the process. Compensation Studies can produce anxiety with
employees. We have found that open discussions with employees at the beginning of the study
helps employees understand what to expect from us and what we are going to ask of them. It
also allows employees the opportunity to voice any concerns or questions and meet the
consultants. During orientation we generally provide our contact information to employees and
encourage them to contact us at any point during the process if they have questions or concerns.
STEP 2. Market Analysis
Using the specifications developed through the orientation and discussion process, we will work
with the City to select a representative number of positions to be used as "benchmarks" for a
market comparison survey.
The survey instrument will be developed as part of our assessment and understanding of the
needs of the organization. We recommend that a broad base of private and public organizations
be used. Through meetings with management we will work together to identify the
organizations to be included in this survey.
The survey instrument will be customized for the City and left with the City for continued use in
maintaining the system. All information will be analyzed by The Mercer Group, Inc. and a
detailed report will be prepared regarding the responses. This analysis and report will be done
on Excel spreadsheets and provided to the City with training on how to update the spreadsheets
in maintaining the system.
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We recommend that the market analysis survey be repeated in its entirety at least once every two
years with parts of it used more often. We will provide the organization with the instrument and
training in the analysis of data.
Using the market research data, a set of specific recommendations regarding the level of
Compensation for all classes will be developed. In this part of the study, we will:
Provide pay levels for all affected classes;
Provide recommendations on policy decisions such as range widths, new -hire level
guidelines, and mechanisms for slotting; and
Provide alternative implementation strategies for the system, including the cost of each
alternative.
STEP 3: Trainingand Maintenance
Training will be provided for all appropriate personnel in the administration of the new
compensation system, including:
• The market survey instrument for continued update of the salary system; and
• Implementation procedures.
We provide telephone consultation for one year following the study. Many of our clients keep us
on contract following the first year to assistance as needed. We provide this assistance on an
hourly rate.
STEP 4. Reporting and Documentation
Throughout the project The Mercer Group, Inc. will provide the organization with written or oral
updates. Specifically, we will provide:
Status reports at each step of the process;
Special reports when policy decisions need to be made;
Preliminary final report for review by appropriate officials; and;
Final report.
We will also make a presentation of findings and recommendations to management, staff and the
City Council, as necessary.
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PRICE PROPOSAL AND METHOD OF PAYMENT
The not -to -exceed total cost of the Compensation Study for all employees with the exception of
Police and Fire for the City of Vernon will be $26,750. This includes all direct and indirect
expenses associated with the project, including on -site visits for the following:
• Employee Orientation
• Meetings with Department Heads and other supervisors.
• Discussions with members of Council (if requested)
• Discussions of preliminary and final results
• Presentation to Council (if requested)
Our customary payment schedule includes partial payments tied to verifiable completion of
selected phases of the project. The payment schedule listed below is what we would recommend
for this project; however, it is not a condition of our acceptance of this contract.
At completion of initial site work
and Orientation:
At completion of selection of benchmarks,
identification of comparables,
and survey administration:
At presentation of Final Report:
25% of contract amount
50% of contract amount
25% of contract amount
The City of Vernon's cost for The Mercer Group, Inc. for services rendered under this agreement
will not exceed the agreed upon price unless an increase is authorized in writing by the City. We
will comply with all applicable laws, rules and regulations of federal, state and local government
entities.
Our ability to carry out the work required will be drawn greatly from our past experience in
providing similar services to others, and we expect to continue such work in the future. We will,
to the degree possible, preserve the confidential nature of any information received from you or
developed during the work in accordance with our professional standards.
We assure you that we will devote our best efforts to carrying out the engagement. The results
obtained, our recommendations and any written material provided by us will represent our best
judgment based on the information available to us. Our liability, if any, will not be greater than
the amount paid to us for the services rendered.
This proposal constitutes the agreement between us. It cannot be modified except in writing by
both parties. Our agreement will be interpreted according to the laws of the State of California.
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 16 Vernon, California
VII. AFFIRMATIVE ACTION STATEMENT
It is the policy of The Mercer Group,, Inc., to assure equal opportunity based on ability and
fitness for all employees or applicants considered for our client organizations regardless of race,
color, religion, sex, age, marital or veteran's status, national origin, or the presence of any
sensory, mental or physical disability. Such policy shall apply, but not be limited to, hiring,
placement, job classification, transfer or promotion, demotion, recruitment, advertising or
solicitation for employment, rates of pay or other forms of compensation, selection for training,
career development, layoff or termination.
This policy shall be disseminated to clients, subcontractors, suppliers and prospective applicants.
The intent of this policy will apply to internal operations, recruitment and consulting activities
conducted by our firm.
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 17 Vernon, California
CITY OF VERNON
By:
Name:
Title: Mayor / Mayor Pro-Tem
Date:
ATTEST:
MANUELA GIRON, City Clerk
APPROVED AS TO FORM:
JEFF A. HARRISON, City Attorney
THE MERCER GROUP, INC.
Name:
Title:
Date:
Name:
Title:
Date:
COMPENSATION STUDY
The Mercer Group, Inc. December 7, 2007
Page 18 Vernon, California
4305 Santa Fe Avenue, Vernon, California 90058
Telephone (323) 583-8811
January 2, 2008
Mr. Phillip G. Robertson
Senior Vice -President
The Mercer Group, Inc.
3443 Highway 39 North
Louisburg, North Carolina 27549
Re: Services Agreement for City of Vernon Compensation Study
Dear Mr. Robertson:
Transmitted herewith are two partially executed agreements as
referenced above, approved by City Council on December 17, 2007,
Resolution No. 9501.
Upon your execution, please forward a fully executed original
agreement to the undersigned.
t�
Very truly yours,
L
Ne -ly G11n
City Clerk
NG:dr
Enclosure
c: Martha Valenzuela
Resolution No. 9501
Agreement File No. 07-143
Exclusively Industriaf
AGREEMENT
THE CITY
OF
VERNON, CALIFORNIA
Proposal
For a
Compensation Study
December 7, 2007
The Mereer Grou
Co,asultallts to MvmaLement
Pinpointing Workable Solutions
Corporate Headquarters:
5579 B Chamblee-Dunwoody
Suite 511
Atlanta, GA 30338
770-551-0403
FAX 770-399-9749
Inc.
Raleigh Office:
Mr. Phillip Robertson
3443 Highway 39 North
Louisburg, North Carolina 27549
919-496-2080
FAX 919-496-7995
MefcerNC@aol.com
I. TEAM ORGANIZATION
ABOUT THE MERCER GROUP, INC.
The Mercer Group, Inc. will be the sole firm providing all services as described in this proposal.
This proposal has been made without collusion with any other person or entity.
The Mercer Group, Inc. is a management consulting firm incorporated in the State of Georgia
and operating nationwide. Founded by James L. Mercer, a long-term public management
consultant, The Mercer Group, Inc., provides management consulting services to state and local
governments, special districts, and private sector clients. The company's services include:
• Compensation and classification studies;
• Executive recruitment;
• Organization and operations analysis;
• Productivity improvement;
• Strategic planning;
• Management systems;
• Organization development and training;
• Privatization;
• Policy studies;
• Budget evaluation services; and
• General management consulting.
Mr. Mercer started his own firm in 1981 and, in 1984, merged it with another consulting firm,
Wolfe & Associates, Inc. On June 1, 1986, Mr. Mercer acquired the Human Resource and
Organizational Consulting Practice of Wolfe & Associates, Inc. This acquisition formed the
basis for Mercer, Slavin & Nevins, Inc. He sold his interest in Mercer, Slavin & Nevins, Inc.
early in 1990 and founded The Mercer Group, Inc.
Mr. Mercer is the Chief Executive Officer of our firm and can be contacted at our corporate
headquarters as follows:
James L. Mercer, President
The Mercer Group, Inc.
5579 B Chamblee-Dunwoody Road, Suite 511
Atlanta, Georgia 30338
Telephone: (770) 551-0403; FAX: (770) 399-9749
Federal Tax ID No.: 58-1877068
Web site address: http://www.mercergroupinc.com
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 1 Vernon, California
In addition to the corporate headquarters The Mercer Group, Inc. has branch offices in:
• Dallas, Texas
• Greeley, Colorado
• Lansing, Michigan
• Phoenix, Arizona
• Raleigh, North Carolina
• Sacramento, California
• Santa Fe, New Mexico
• Washington, DC
• Winter Haven, Florida
Business Model
The Mercer Group, Inc. is a Consortium Model firm, with a core of key staff members
supplemented by associated independent consultants and specialty firms. The consortium
members work together regularly and have long personal and professional relationships. This
business model allows us to:
➢ Staff each engagement with precisely the right mix of consulting professionals, who have the
specific managerial, functional, and technical skills needed to fully satisfy the project
objectives.
➢ Eliminate pressure to assign salaried staff who may be available, but lack the experience or
capabilities necessary to be effective and efficient in serving our clients.
➢ Offer competitive rates for very senior consultants due to our reduced administrative and
overhead costs.
LISTING OF WORKING OFFICE
This project will be conducted by the Raleigh, North Carolina branch. The Raleigh branch is
staffed by Senior Vice President Phillip Robertson, Vice -President Kay Culbertson Robertson,
and Randy Davis. The Raleigh office specializes in Compensation and Classification Studies.
The staff has over 25 years experience. The Raleigh branch can be contacted as follows:
Phillip G. Robertson
Senior Vice President
The Mercer Group, Inc.
3443 Highway 39 North
Louisburg, North Carolina 27549
Telephone: (919) 496-2080; FAX: (919) 496-7995
E-mail address: MercerNC@aol.com
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 2 Vernon, California
There are not any past, on -going or potential conflicts of interest which the consultants may have
as a result of performing work for this project. The Mercer Group, Inc. has not divulged,
discussed or compared our proposal with other proposers and has not colluded with any other
proposer or parties to a proposal whatsoever. Further, Phillip Robertson has full authority to sign
this proposal on behalf of The Mercer Group, Inc.
Project Team
The team we are proposing for the City of Vernon project includes our most experienced
consultants.
The Principal in Charge of the project will be James L. Mercer. Mr. Mercer is President of our
firm. He is a Certified Management Consultant and has extensive experience in all phases of
management consulting including compensation, classification, and performance appraisal. Mr.
Mercer will be available if needed to assist in this project.
The Project Manager will be Phillip Robertson, Senior Vice President of our firm. He possesses
extensive knowledge of all phases of compensation and classification and all areas of local
government management. He will be responsible for assuring the quality of our work, the
adherence to expected schedules and the delivery of our work products.
The Vice -President supporting Mr. Robertson will be Kay Robertson. Mrs. Robertson has
extensive compensation and classification experience in both the public and private sectors.
Randy Davis is The Mercer Group's FLSA and FMLA expert.
Resumes for each of our team members are included in this section.
James L. Mercer, President
Mr. Mercer holds a Master of Business Administration degree from the University of Nevada,
Reno, and a Bachelor of Science degree in Industrial Management from the same institution. He
has also received a Certificate in Municipal Administration from the University of North
Carolina at Chapel Hill, and is a graduate of the Executive Development Program at Cornell
University. Mr. Mercer has more than 26 years experience in management consulting. He has
authored three books, co-authored three books, and has written more than 250 articles on various
phases of public management. His experience covers the following functional areas:
compensation and classification, organization analysis, management systems, productivity
improvement, seminars/training, public sector executive search, strategic planning, and general
consulting. Examples of Mr. Mercer's experience in each of these functional areas are listed
below:
Compensation and Classification
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 3 Vernon, California
• Principal consultant on a project for the Town of Jackson, Wyoming to
conduct compensation and classification study, update job descriptions,
update personnel rules and regulations, and develop a performance -based
employee evaluation system.
• Overall direction of a compensation and classification studies for the Decatur
and Springfield, Illinois Housing Authorities.
• Overall direction of a compensation and classification study for the City of
Auburn, Maine.
• Consultant on a compensation and classification study for the City of
Petersburg, Virginia.
• Overall project direction for a very large compensation and classification
study of the Jefferson County, Alabama Personnel Board which includes all
jurisdictions in Jefferson County, Alabama including the City of Birmingham.
• Overall direction and consultant for a compensation and classification study
for the City of Morristown, Tennessee.
• Overall direction and consultant for compensation and classification study and
a performance -based employee evaluation system for the City of Berkeley,
Missouri.
• Overall direction for a compensation and classification study for the City of
Del Rio, Texas.
• Overall direction of a pay -for -performance system development project for
the City of Atlanta.
• Overall direction of an executive compensation system for Dekalb County,
Georgia's three -campus, 20,000 student Community College.
• Reviewed executive compensation program for the City of Corpus Christi,
Texas.
• Reviewed the compensation and classification and benefits systems of
Conyers and Rockdale County, Georgia.
• Reviewed the compensation and classification systems, retirement systems,
and employee benefits programs for the Cities of Miamisburg and West
Carrollton, Ohio, and for Miami Township, Ohio.
• Reviewed the compensation and classification systems, retirement programs,
and employee benefits programs for the City of Atlanta, Fulton County, and
all of the jurisdictions in Fulton City, Georgia.
• Reviewed the compensation and classification systems, the retirement
systems, and employee benefits programs for Austin and Travis City, Texas.
• Overall Director of a compensation and classification system for Ouachita
Parish, Louisiana Library.
Compensation Study
The fiercer Group, Inc. December 7, 2007
Page 4 Vernon, California
Mr. Mercer personally worked with Dr. Rensis Likert, considered by many to be the "father of
participative management," on the design of data collection instrumentation (using Likert's
survey research instruments) to compare 27 test and 27 control medium-sized local governments
across the country on the issues of receptivity to new technology and innovation. This
experiment formed the basis for the current national local government database in this area.
Prior to forming The Mercer Group, Mr. Mercer was President of Mercer, Slavin, & Nevins, Inc.
and a Regional Vice President of Wolfe & Associates, Inc., with which he previously merged his
own local government consulting firm, James Mercer & Associates, Inc. He has also been
Director of Government Consulting Services in the southeastern and southwestern regions of the
United States for Coopers & Lybrand. He has been a National Program Director with Public
Technology, Inc., and served as Assistant City Manager of Raleigh, North Carolina. This was
preceded by ten years of private sector and university faculty and staff experience. Mr. Mercer is
a frequent featured speaker, organizer and panelist at local government conferences;
professional, and civic clubs, etc., on issues of productivity improvement, management, office
automation, entrepreneurship, etc.
Mr. Mercer has received many honors, including the prestigious George C. Franklin Memorial
Award from the North Carolina League of Municipalities for Excellence in Public
Administration and election to Beta Gamma Sigma, the national honor society in business and
administration. He has also served on several private and public Boards, including the
University of Nevada Foundation, the School of Business Advisory Board at California
Polytechnic State University in San Luis Obispo, and the Public Administration Program at the
University of South Carolina. Mr. Mercer has been quoted in The New York Times, Forbes,
Public Management, American City and County, and many other national and local publications.
His professional affiliations include:
• International City/County Management Association;
• American Society for Public Administration;
• Institute of Industrial Engineers (past Chapter President);
• The Technology Transfer Society (Board of Directors - 5 terms); and
• International Association of Quality Circles.
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 5 Vernon, California
Phillip Robertson, Senior Vice -President
3443 Hwy. 39 North
Louisburg, North Carolina 27549
Office telephone: 919-496-2080 Cellular telephone: 919-349-7239
Fax: 919-496-7995
Mr. Robertson is a Senior Vice - President with the Mercer Group specializing in compensation and
classification studies, organizational analysis, and performance evaluation systems. Mr. Robertson
has been with The Mercer Group, Inc. since 1998.
Mr. Robertson has 30 years experience in the public sector.
• Classification and compensation studies for Hernando County, Florida; The Housing
Authority of Covington, Kentucky; the City of East Point, Georgia; Martin County, Florida;
Ouachita Parish, Louisiana, Public Library; the City of Monmouth, Oregon; the City of
Monroe, Georgia; the City of Peachtree City, Georgia; the Development Authority of
Peachtree City, Georgia; Pitt County, North Carolina; Okaloosa County, Florida; Okaloosa
County Detention Center; Martin County Sheriff's Office; Henderson, Nevada; the Town of
Berlin, Connecticut; Choctawhatchee Electric Cooperative in Defuniak Springs, Florida; the
City of Duncan, Oklahoma; Calcasieu Parish Public Library System; the City of Colonial
Heights, Virginia; Nye County, Nevada; Decatur Illinois Housing Authority; Rochester
Hills, MI; Garden City, Georgia; Glastonbury, Connecticut; the City of LaPorte, Texas;
Kitty Hawk, North Carolina, Town of Holly Springs, North Carolina; Sun `N Lake of
Sebring Improvement District; Okaloosa Gas District; City of Sunny Isles Beach, Florida;
City of Frankfort, Kentucky; Peachtree City Tourism Association; the City of Sioux City,
Iowa; the City of Glen Heights, Texas; the city of Daytona Beach, Florida; the City of
Jacksonville, Florida; the City of Osawatomie, Kansas; Gordon College in Barnesville,
Georgia; Assisted Housing Risk Management Association, Iowa League of Cities; Peachtree
City Water and Sewerage Authority; Minturn, Colorado; Loma Linda, California; Public
Agency Risk Sharing Authority of California, Sacramento; Salt River Landfill, Scottsdale,
AZ.
• Former Management Information Services Director for the North Carolina Division of
Employment and Training.
• Extensive experience in organizational analysis at the local and state government levels
• Former Personnel Manager for a Division of the North Carolina State Government.
• Former Assistant City Manager for Clayton, North Carolina.
• Extensive experience in Grant Management at the Federal, State, and Local levels.
• Extensive experience and expertise with information systems management at the
Federal, State, and Local levels.
Mr. Robertson has a MA in Public Administration from Appalachian State University in Boone,
North Carolina and BA in History from Wake Forest University in Winston-Salem, North Carolina.
He has also done doctoral work at North Carolina State University in Raleigh, North Carolina.
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 6 Vernon, California
Kay Robertson, Vice -President — Raleigh Office
Mrs. Robertson is a Vice President with the Mercer Group specializing in compensation and
classification studies, organizational analysis, and performance evaluation systems. Mrs. Robertson
has been with The Mercer Group, Inc. since 1997.
She worked for seven years in the banking industry filling every position in branch banking,
including branch manager. Her employers were South Trust Bank in Atlanta, Georgia, and
NationsBank in Fayetteville, North Carolina.
Her consulting project experience includes;
• Classification and compensation studies for Hernando County, Florida; The Housing
Authority of Covington, Kentucky; the City of East Point, Georgia; Martin County, Florida;
Ouachita Parish, Louisiana, Public Library; the City of Monmouth, Oregon; the City of
Monroe, Georgia; the City of Peachtree City, Georgia; the Development Authority of
Peachtree City, Georgia; Pitt County, North Carolina; Okaloosa County, Florida; Okaloosa
County Detention Center; Martin County Sheriff's Office; Henderson, Nevada; the Town of
Berlin, Connecticut; Choctawhatchee Electric Cooperative in Defuniak Springs, Florida; the
City of Duncan, Oklahoma; Calcasieu Parish Public Library System; the City of Colonial
Heights, Virginia; Nye County, Nevada; Decatur Illinois Housing Authority; Rochester
Hills, MI; Garden City, Georgia; Glastonbury, Connecticut; the City of LaPorte, Texas;
Kitty Hawk, North Carolina, Town of Holly Springs, North Carolina; Sun `N Lake of
Sebring Improvement District; Okaloosa Gas District; City of Sunny Isles Beach, Florida;
City of Frankfort, Kentucky; Peachtree City Tourism Association; the City of Sioux City,
Iowa; the City of Glen Heights, Texas; the city of Daytona Beach, Florida; the City of
Jacksonville, Florida; the City of Osawatomie, Kansas; Gordon College in Barnesville,
Georgia; Assisted Housing Risk Management Association, Iowa League of Cities; Peachtree
City Water and Sewerage Authority; Minturn, Colorado; Loma Linda, California; Public
Agency Risk Sharing Authority of California, Sacramento; Salt River Landfill, Scottsdale,
AZ.
• Management assessments, human resources hiring systems, supervisory training, and
team building seminars for private business and state governments.
• Customer service training for state government employees involved in welfare reform
projects.
• Career counseling assessments and training for welfare recipients.
Mrs. Robertson has a BA in Marketing with a minor in Finance from Texas A&M University.
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 7 Vernon, California
RANDY DAVIS-Atlanta, Georgia
Mr. Davis retired in 2000 from the U.S. Department of Labor; Wage and Hour Division and
currently works as a consultant and provides support to The Mercer Group, Inc. He worked the
last eleven years as Branch Chief for Fair Labor Standards in the Atlanta Region which included
eight Southeastern states. He also worked sixteen years as an Investigator, eleven with the Wage
and Hour Division and five with Internal Revenue Service. As Branch Chief his responsibilities
included speaking to employer groups, training investigators and providing interpretations of the
various laws, regulations and enforcement policies to the investigators and supervisors. His areas
of expertise include the Fair Labor Standards Act (minimum wage, overtime, exemptions, child
labor), the Family and Medical Leave Act, the Employee Polygraph Protection Act, the wage
garnishment provisions of the C.C.P.A., the Migrant and Seasonal Agricultural Worker's
Protection Act and various immigration laws including those related to H-113, H-2A and H-213
temporary foreign workers.
Mr. Davis has a Bachelors of Business Administration from the University of Louisville.
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 8 Vernon, California
II. EXPERIENCE
REFERENCES
The Mercer Group, Inc. has been conducting compensation and classification studies since its
inception in 1990. Phillip Robertson has been the manager of over 95% of all Mercer Group
Compensation and Classification Studies for the past 9 years. The references below are for
classification and compensation studies similar to the City of Vernon project. All of the projects
listed below were conducted by The Mercer Group, Inc. including staff proposed for this project
and managed by a member of this team.
Ms. Barbara Dupre'
Director of Human Resources
Hernando County, Florida
20 North Main Street, Room 364
Brooksville, FL 34601
352-754-4013
FAX: 352-754-4025
Compensation and Classification Study for Board of County Commissioners, Supervisor of
Elections, Property Appraiser, Tax Collector and Clerk of Court.
The original project was completed in 1998 and fully,updated in 2002.
We continue to provide services for Hernando County.
Ms. Erika Phillips, Human Resources Director
Town of Holly Springs
128 South Main Street
Holly Springs, NC 27540
919-557-3911
Compensation and Classification Study completed 2004.
We continue to provide update services
Mr. Don Tomlin
Chairman of the Board
Assisted Housing Risk Management Association
Rantoul, Illinois
309-342-8129 x 214
Compensation and Classification and Organizational Study
AHRMA is a risk management pool serving housing authorities in Iowa, Illinois, and Nebraska.
Paul Eckert, City Manager
Bridey Hayes, Human Resources Director
Sioux City, Iowa
712-279-6175
Compensation and Classification Study
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 9 Vernon, California
Mrs. Kay Godwin
Human Resources Director
Okaloosa County Human Resources Department
601B North Pearl Street
Crestview, Florida 32536
850-689-5870
FAX: 850-689-5889
Compensation and Classification Study for Board of County Commissioners and Supervisor of
Elections.
The original project was completed in 2000. We continue to provide update services
Ms. Leigh Grantham
Vice President, Marketing and Human Resources
Choctawhatchee Electric Cooperative
Defuniak Springs, FL
850-892-2111
Classification and Compensation Study
The original project was completed in 2000.
A comprehensive update was conducted in 2004.
We continue to provide update services.
Mr. Jamie Justice
Town Manager
Town of Mooresville, North Carolina
413 North Main Street
Mooresville, N.C. 28115
Compensation Study for Public Safety Employees 2007
Mr. Dennis R. Halloway, City Manager
Ms Barbara Nicholson, Personnel
City of Loma Linda
25541 Barton Road
Loma Linda, California 92354
909-799-2814
Compensation and Classification Study
Additional references and experience can be provided upon request.
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 10 Vernon, California
III. PROJECT PURPOSE, SCOPE, AND EXPECTATIONS
A. Purpose of Study:
The primary purposes of the compensation study for the City of Vernon are to:
Respond to and reflect changing market conditions as they affect salary range
designations for various classes of positions;
• Ensure equity and consistency among similarly classified positions.
Facilitate final decisions on matters of compensation policy, procedure, and
implementation of study recommendations.
B. Primary Study Objective:
Ensure that salaries for the City's employees included in the study are
competitive with comparable public and private sector employers in the
relevant labor market.
Based on the project scope the deliverables will include but not be limited to:
1. Recommend base salary ranges that are competitive with the external market and
equitable with comparable internal jobs.
2. Work closely with the employees and management.
3. Recommend an effective, highly flexible and easily administered and maintained system.
4. Provide a plan and a schedule for implementation.
5. Make presentations to the City Administrator and Council, as needed.
The specific results of the Compensation study are displayed in Exhibit I.
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 11 Vernon, California
EXHIBIT I
RESULTS OF COMPENSATION EVALUATION:
• Development of comprehensive market survey instrument for
continued use by the organization;
• Development of appropriate salary guidelines;
• Assignment of appropriate salary range to each
classification; and
• Development of written guidelines of the total system.
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 12 Vernon, California
IV. PROJECT APPROACH
The Mercer Group, Inc. believes that the Compensation Study must have extensive client
participation. Our experience has shown that successful assignments are characterized by:
• A mutual understanding between the client and the consultant staff of the objectives, study
process, timing, and end products of the study;
• A thorough understanding of the current situation by the consultants before proceeding with
detailed analysis;
• Providing opportunities for participation and input by staff; and
• A thorough review of draft reports with the City Administrator, Councilmember and others
identified by council.
Our work plan includes provision for each of the items listed above. The specific participation
of City officials and staff is described as follows:
City Administrator and/or Mayor & Council- The Principal client will receive a thorough
briefing and description of the study process and methodology. At the end of the study, the
principal client will receive a briefing on all findings and recommendations as well as briefings
throughout the process as appropriate. It is important that the principal client be involved in the
key policy issues to ensure the overall effectiveness of the resulting classification and compensa-
tion systems to meet the needs of the organization.
Employees — All employees whose positions are affected by the study must feel that they have a
role in the process and that their input is both sought and welcomed. That role and input will be
introduced and explained by a thorough and accurate initial presentation about the project.
The Mercer Group, Inc. approach to a Compensation Study stresses participation at all levels.
The result will be a new system that is truly developed by those who must live with it.
Work Program and Schedule
In order to meet the client's specific objectives for this project, we have developed a work plan
consisting four (4) steps, as follows:
STEP 1. Orientation
Because of the significance of a comprehensive compensation study, a clear understanding of
and agreement to the work plan is critical. We will begin the project by meeting with the City
Administrator, Department Heads and whoever else is designated to clarify the following
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 13 Vernon, California
issues:
• Specific issues regarding the current pay structure(s);
• Specific issues regarding Departments and Divisions;
• Understanding of the objectives for the systems;
• Review current job descriptions in order to obtain a thorough understanding of each position
included in the study by way of the benchmarking process and pay range updates;
• Begin identification of benchmark positions;
• Begin development of a list of organizations for the "market analysis," including public and
private employers; and
• Implementation strategy for results of the study.
At the orientation, we will also obtain information on current practices. We will then provide the
initial communication to employees through group meetings, written explanations, or both,
depending on the needs of the organization. The Mercer Group, Inc. prefers to meet with
employee groups to review the process. Compensation Studies can produce anxiety with
employees. We have found that open discussions with employees at the beginning of the study
helps employees understand what to expect from us and what we are going to ask of them. It
also allows employees the opportunity to voice any concerns or questions and meet the
consultants. During orientation we generally provide our contact information to employees and
encourage them to contact us at any point during the process if they have questions or concerns.
STEP 2. Market Anal
Using the specifications developed through the orientation and discussion process, we will work
with the City to select a representative number of positions to be used as "benchmarks" for a
market comparison survey.
The survey instrument will be developed as part of our assessment and understanding of the
needs of the organization. We recommend that a broad base of private and public organizations
be used. Through meetings with management we will work together to identify the
organizations to be included in this survey.
The survey instrument will be customized for the City and left with the City for continued use in
maintaining the system. All information will be analyzed by The Mercer Group, Inc. and a
detailed report will be prepared regarding the responses. This analysis and report will be done
on Excel spreadsheets and provided to the City with training on how to update the spreadsheets
in maintaining the system.
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 14 Vernon, California
We recommend that the market analysis survey be repeated in its entirety at least once every two
years with parts of it used more often. We will provide the organization with the instrument and
training in the analysis of data.
Using the market research data, a set of specific recommendations regarding the level of
Compensation for all classes will be developed. In this part of the study, we will:
Provide pay levels for all affected classes;
Provide recommendations on policy decisions such as range widths, new -hire level
guidelines, and mechanisms for slotting; and
Provide alternative implementation strategies for the system, including the cost of each
alternative.
STEP 3: Trainingand System Maintenance
Training will be provided for all appropriate personnel in the administration of the new
compensation system, including:
• The market survey instrument for continued update of the salary system; and
• Implementation procedures.
We provide telephone consultation for one year following the study. Many of our clients keep us
on contract following the first year to assistance as needed. We provide this assistance on an
hourly rate.
STEP 4. Reporting and Documentation
Throughout the project The Mercer Group, Inc. will provide the organization with written or oral
updates. Specifically, we will provide:
Status reports at each step of the process;
Special reports when policy decisions need to be made;
Preliminary final report for review by appropriate officials; and;
Final report.
We will also make a presentation of findings and recommendations to management, staff and the
City Council, as necessary.
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 15 Vernon, California
PRICE PROPOSAL AND METHOD OF PAYMENT
The not -to -exceed total cost of the Compensation Study for all employees with the exception of
Police and Fire for the City of Vernon will be $26,750. This includes all direct and indirect
expenses associated with the project, including on -site visits for the following:
• Employee Orientation
• Meetings with Department Heads and other supervisors.
• Discussions with members of Council (if requested)
• Discussions of preliminary and final results
• Presentation to Council (if requested)
Our customary payment schedule includes partial payments tied to verifiable completion of
selected phases of the project. The payment schedule listed below is what we would recommend
for this project; however, it is not a condition of our acceptance of this contract.
At completion of initial site work
and Orientation:
At completion of selection of benchmarks,
identification of comparables,
and survey administration:
At presentation of Final Report:
25% of contract amount
50% of contract amount
25% of contract amount
The City of Vernon's cost for The Mercer Group, Inc. for services rendered under this agreement
will not exceed the agreed upon price unless an increase is authorized in writing by the City. We
will comply with all applicable laws, rules and regulations of federal, state and local government
entities.
Our ability to carry out the work required will be drawn greatly from our past experience in
providing similar services to others, and we expect to continue such work in the future. We will,
to the degree possible, preserve the confidential nature of any information received from you or
developed during the work in accordance with our professional standards.
We assure you that we will devote our best efforts to carrying out the engagement. The results
obtained, our recommendations and any written material provided by us will represent our best
judgment based on the information available to us. Our liability, if any, will not be greater than
the amount paid to us for the services rendered.
This proposal constitutes the agreement between us. It cannot be modified except in writing by
both parties. Our agreement will be interpreted according to the laws of the State of California.
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 16 Vernon, California
VII. AFFIRMATIVE ACTION STATEMENT
It is the policy of The Mercer Group, Inc., to assure equal opportunity based on ability and
fitness for all employees or applicants considered for our client organizations regardless of race,
color, religion, sex, age, marital or veteran's status, national origin, or the presence of any
sensory, mental or physical disability. Such policy shall apply, but not be limited to, hiring,
placement, job classification, transfer or promotion, demotion, recruitment, advertising or
solicitation for employment, rates of pay or other forms of compensation, selection for training,
careerdevelopment, layoff or termination.
This policy shall be disseminated to clients, subcontractors, suppliers and prospective applicants.
The intent of this policy will apply to internal operations, recruitment and consulting activities
conducted by our firm.
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 17 Vernon, California
A TEST:
ANUELA GIRON, C ty Clerk
APPROVED ALS TO FORM:
A.VqARRISON, City Attorney
CITY OF VERNON
Name: Loonis C. Malburg
Title: Mayor / -
Date: Zi ze,7-
THE MERCER GROUP, INC.
Name:
Title:
Date:
Name:
Title:
Date:
COMPENSATION STUDY
The Mercer Group, Inc. December 7, 2007
Page 18 Vernon, California
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: January 16, 2008
TO: Martha Valenzuela, Director of Personnel/Purchasing Agent
FROM:, Nelly Giron, City Clerk
RE: Resolution No. 9501 - A Resolution of the City Council of
the City of Vernon Approving and Authorizing the Execution
of an Agreement By and Between the City of Vernon and The
Mercer Group, Inc. For a Compensation Study
Transmitted herewith is a copy of the fully executed agreement and
Resolution No. 9501, referenced above, which was approved by City
Council on December 17, 2007.
Thank you.
NG:dr
c: Resolution File No. 9501
Agreement No. 07-143
AGREEMENT
THE CITY
OF
VERNON, CALIFORNIA
Proposal
For a
Compensation Study
December 7, 2007
I. TEAM ORGANIZATION
ABOUT THE MERCER GROUP, INC.
The Mercer Group, Inc. will be the sole firm providing all services as described in this proposal.
This proposal has been made without collusion with any other person or entity.
The Mercer Group, Inc. is a management consulting firm incorporated in the State of Georgia
and operating nationwide. Founded by James L. Mercer, a long-term public management
consultant, The Mercer Group, Inc., provides management consulting services to state and local
governments, special districts, and private sector clients. The company's services include:
• Compensation and classification studies;
• Executive recruitment;
• Organization and operations analysis;
• Productivity improvement;
• Strategic planning;
• Management systems;
• Organization development and training;
• Privatization;
• Policy studies;
• Budget evaluation services; and
• General management consulting.
Mr. Mercer started his own firm in 1981 and, in 1984, merged it with another consulting firm,
Wolfe & Associates, Inc. On June 1, 1986, Mr. Mercer acquired the Human Resource and
Organizational Consulting Practice of Wolfe & Associates, Inc. This acquisition formed the
basis for Mercer, Slavin & Nevins, Inc. He sold his interest in Mercer, Slavin & Nevins, Inc.
early in 1990 and founded The Mercer Group, Inc.
Mr. Mercer is the Chief Executive Officer of our firm and can be contacted at our corporate
headquarters as follows:
James L. Mercer, President
The Mercer Group, Inc.
5579 B Chamblee-Dunwoody Road, Suite 511
Atlanta, Georgia 30338
Telephone: (770) 551-0403; FAX: (770) 399-9749
Federal Tax ID No.: 58-1877068
Web site address: http://www.mercergroupinc.com
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 1 Vernon, California
In addition to the corporate headquarters The Mercer Group, Inc. has branch offices in:
• Dallas, Texas
• Greeley, Colorado
• Lansing, Michigan
• Phoenix, Arizona
• Raleigh, North Carolina
• Sacramento, California
• Santa Fe, New Mexico
• Washington, DC
• Winter Haven, Florida
Business Model
The Mercer Group, Inc. is a Consortium Model firm, with a core of key staff members
supplemented by associated independent consultants and specialty firms. The consortium
members work together regularly and have long personal and professional relationships. This
business model allows us to:
➢ Staff each engagement with precisely the right mix of consulting professionals, who have the
specific managerial, functional, and technical skills needed to fully satisfy the project
objectives.
➢ Eliminate pressure to assign salaried staff who may be available, but lack the experience or
capabilities necessary to be effective and efficient in serving our clients.
➢ Offer competitive rates for very senior consultants due to our reduced administrative and
overhead costs.
LISTING OF WORKING OFFICE
This project will be conducted by the Raleigh, North Carolina branch. The Raleigh branch is
staffed by Senior Vice President Phillip Robertson, Vice -President Kay Culbertson Robertson,
and Randy Davis. The Raleigh office specializes in Compensation and Classification Studies.
The staff has over 25 years experience. The Raleigh branch can be contacted as follows:
Phillip G. Robertson
Senior Vice President
The Mercer Group, Inc.
3443 Highway 39 North
Louisburg, North Carolina 27549
Telephone: (919) 496-2080; FAX: (919) 496-7995
E-mail address: MercerNC@aol.com
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 2 Vernon, California
There are not any past, on -going or potential conflicts of interest which the consultants may have
as a result of performing work for this project. The Mercer Group, Inc. has not divulged,
discussed or compared our proposal with other proposers and has not colluded with any other
proposer or parties to a proposal whatsoever. Further, Phillip Robertson has full authority to sign
this proposal on behalf of The Mercer Group, Inc.
Project Team
The team we are proposing for the City of Vernon project includes our most experienced
consultants.
The Principal in Charge of the project will be James L. Mercer. Mr. Mercer is President of our
firm. He is a Certified Management Consultant and has extensive experience in all phases of
management consulting including compensation, classification, and performance appraisal. Mr.
Mercer will be available if needed to assist in this project.
The Project Manager will be Phillip Robertson, Senior Vice President of our firm. He possesses
extensive knowledge of all phases of compensation and classification and all areas of local
government management. He will be responsible for assuring the quality of our work, the
adherence to expected schedules and the delivery of our work products.
The Vice -President supporting Mr. Robertson will be Kay Robertson. Mrs. Robertson has
extensive compensation and classification experience in both the public and private sectors.
Randy Davis is The Mercer Group's FLSA and FMLA expert.
Resumes for each of our team members are included in this section.
James L. Mercer, President
Mr. Mercer holds a Master of Business Administration degree from the University of Nevada,
Reno, and a Bachelor of Science degree in Industrial Management from the same institution. He
has also received a Certificate in Municipal Administration from the University of North
Carolina at Chapel Hill, and is a graduate of the Executive Development Program at Cornell
University. Mr. Mercer has more than 26 years experience in management consulting. He has
authored three books, co-authored three books, and has written more than 250 articles on various
phases of public management. His experience covers the following functional areas:
compensation and classification, organization analysis, management systems, productivity
improvement, seminars/training, public sector executive search, strategic planning, and general
consulting. Examples of Mr. Mercer's experience in each of these functional areas are listed
below:
Compensation and Classification
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 3 Vernon, California
• Principal consultant on a project for the Town of Jackson, Wyoming to
conduct compensation and classification study, update job descriptions,
update personnel rules and regulations, and develop a performance -based
employee evaluation system.
• Overall direction of a compensation and classification studies for the Decatur
and Springfield, Illinois Housing Authorities.
• Overall direction of a compensation and classification study for the City of
Auburn, Maine.
• Consultant on a compensation and classification study for the City of
Petersburg, Virginia.
• Overall project direction for a very large compensation and classification
study of the Jefferson County, Alabama Personnel Board which includes all
jurisdictions in Jefferson County, Alabama including the City of Birmingham.
• Overall direction and consultant for a compensation and classification study
for the City of Morristown, Tennessee.
• Overall direction and consultant for compensation and classification study and
a performance -based employee evaluation system for the City of Berkeley,
Missouri.
• Overall direction for a compensation and classification study for the City of
Del Rio, Texas.
• Overall direction of a pay -for -performance system development project for
the City of Atlanta.
• Overall direction of an executive compensation system for Dekalb County,
Georgia's three -campus, 20,000 student Community College.
• Reviewed executive compensation program for the City of Corpus Christi,
Texas.
• Reviewed the compensation and classification and benefits systems of
Conyers and Rockdale County, Georgia.
• Reviewed the compensation and classification systems, retirement systems,
and employee benefits programs for the Cities of Miamisburg and West
Carrollton, Ohio, and for Miami Township, Ohio.
• Reviewed the compensation and classification systems, retirement programs,
and employee benefits programs for the City of Atlanta, Fulton County, and
all of the jurisdictions in Fulton City, Georgia.
• Reviewed the compensation and classification systems, the retirement
systems, and employee benefits programs for Austin and Travis City, Texas.
• Overall Director of a compensation and classification system for Ouachita
Parish, Louisiana Library.
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The Mercer Group, Inc. December 7, 2007
Page 4 Vernon, California
Mr. Mercer personally worked with Dr. Rensis Likert, considered by many to be the "father of
participative management," on the design of data collection instrumentation (using Likert's
survey research instruments) to compare 27 test and 27 control medium-sized local governments
across the country on the issues of receptivity to new technology and innovation. This
experiment formed the basis for the current national local government database in this area.
Prior to forming The Mercer Group, Mr. Mercer was President of Mercer, Slavin, & Nevins, Inc.
and a Regional Vice President of Wolfe & Associates, Inc., with which he previously merged his
own local government consulting firm, James Mercer & Associates, Inc. He has also been
Director of Government Consulting Services in the southeastern and southwestern regions of the
United States for Coopers & Lybrand. He has been a National Program Director with Public
Technology, Inc., and served as Assistant City Manager of Raleigh, North Carolina. This was
preceded by ten years of private sector and university faculty and staff experience. Mr. Mercer is
a frequent featured speaker, organizer and panelist at local government conferences,
professional, and civic clubs, etc., on issues of productivity improvement, management, office
automation, entrepreneurship, etc.
Mr. Mercer has received many honors, including the prestigious George C. Franklin Memorial
Award from the North Carolina League of Municipalities for Excellence in Public
Administration and election to Beta Gamma Sigma, the national honor society in business and
administration. He has also served on several private and public Boards, including the
University of Nevada Foundation, the School of Business Advisory Board at California
Polytechnic State University in San Luis Obispo, and the Public Administration Program at the
University of South Carolina. ' Mr. Mercer has been quoted in The New York Times, Forbes,
Public Management, American City and County, and many other national and local publications.
His professional affiliations include:
• International City/County Management Association;
• American Society for Public Administration;
• Institute of Industrial Engineers (past Chapter President);
• The Technology Transfer Society (Board of Directors - 5 terms); and
• International Association of Quality Circles.
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 5 Vernon, California
Phillip Robertson, Senior Vice -President
3443 Hwy. 39 North
Louisburg, North Carolina 27549
Office telephone: 919-496-2080 Cellular telephone: 919-349-7239
Fax: 919-496-7995
Mr. Robertson is a Senior Vice - President with the Mercer Group specializing in compensation and
classification studies, organizational analysis, and performance evaluation systems. Mr. Robertson
has been with The Mercer Group, Inc. since 1998.
Mr. Robertson has 30 years experience in the public sector.
Classification and compensation studies for Hernando County, Florida; The Housing
Authority of Covington, Kentucky; the City of East Point, Georgia; Martin County, Florida;
Ouachita Parish, Louisiana, Public Library; the City of Monmouth, Oregon; the City of
Monroe, Georgia; the City of Peachtree City, Georgia; the Development Authority of
Peachtree City, Georgia; Pitt County, North Carolina; Okaloosa County, Florida; Okaloosa
County Detention Center; Martin County Sheriff's Office; Henderson, Nevada; the Town of
Berlin, Connecticut; Choctawhatchee Electric Cooperative in Defuniak Springs, Florida; the
City of Duncan, Oklahoma; Calcasieu Parish Public Library System; the City of Colonial
Heights, Virginia; Nye County, Nevada; Decatur Illinois Housing Authority; Rochester
Hills, MI; Garden City, Georgia; Glastonbury, Connecticut; the City of LaPorte, Texas;
Kitty Hawk, North Carolina, Town of Holly Springs, North Carolina; Sun `N Lake of
Sebring Improvement District; Okaloosa Gas District; City of Sunny Isles Beach, Florida;
City of Frankfort, Kentucky; Peachtree City Tourism Association; the City of Sioux City,
Iowa; the City of Glen Heights, Texas; the city of Daytona Beach, Florida; the City of
Jacksonville, Florida; the City of Osawatomie, Kansas; Gordon College in Barnesville,
Georgia; Assisted Housing Risk Management Association, Iowa League of Cities; Peachtree
City Water and Sewerage Authority; Minturn, Colorado; Loma Linda, California; Public
Agency Risk Sharing Authority of California, Sacramento; Salt River Landfill, Scottsdale,
AZ.
• Former Management Information Services Director for the North Carolina Division of
Employment and Training.
• Extensive experience in organizational analysis at the local and state government levels
• Former Personnel Manager for a Division of the North Carolina State Government.
• Former Assistant City Manager for Clayton, North Carolina.
• Extensive experience in Grant Management at the Federal, State, and Local levels.
• Extensive experience and expertise with information systems management at the
Federal, State, and Local levels.
Mr. Robertson has a MA in Public Administration from Appalachian State University in Boone,
North Carolina and BA in History from Wake Forest University in Winston-Salem, North Carolina.
He has also done doctoral work at North Carolina State University in Raleigh, North Carolina.
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 6 Vernon, California
Kay Robertson, Vice -President — Raleigh Office
Mrs. Robertson is a Vice President with the Mercer Group specializing in compensation and
classification studies, organizational analysis, and performance evaluation systems. Mrs. Robertson
has been with The Mercer Group, Inc. since 1997.
She worked for seven years in the banking industry filling every position in branch banking,
including branch manager. Her employers were South Trust Bank in Atlanta, Georgia, and
NationsBank in Fayetteville, North Carolina.
Her consulting project experience includes;
Classification and compensation studies for Hernando County, Florida; The Housing
Authority of Covington, Kentucky; the City of East Point, Georgia; Martin County, Florida;
Ouachita Parish, Louisiana, Public Library; the City of Monmouth, Oregon; the City of
Monroe, Georgia; the City of Peachtree City, Georgia; the Development Authority of
Peachtree City, Georgia; Pitt County, North Carolina; Okaloosa County, Florida; Okaloosa
County Detention Center; Martin County Sheriff's Office; Henderson, Nevada; the Town of
Berlin, Connecticut; Choctawhatchee Electric Cooperative in Defuniak Springs, Florida; the
City of Duncan, Oklahoma; Calcasieu Parish Public Library System; the City of Colonial
Heights, Virginia; Nye County, Nevada; Decatur Illinois Housing Authority; Rochester
Hills, MI; Garden City, Georgia; Glastonbury, Connecticut; the City of La Porte, Texas;
Kitty Hawk, North Carolina, Town of Holly Springs, North Carolina; Sun `N Lake of
Sebring Improvement District; Okaloosa Gas District; City of Sunny Isles Beach, Florida;
City of Frankfort, Kentucky; Peachtree City Tourism Association; the City of Sioux City,
Iowa; the City of Glen Heights, Texas; the city of Daytona Beach, Florida; the City of
Jacksonville, Florida; the City of Osawatomie, Kansas; Gordon College in Barnesville,
Georgia; Assisted Housing Risk Management Association, Iowa League of Cities; Peachtree
City Water and Sewerage Authority; Minturn, Colorado; Loma Linda, California; Public
Agency Risk Sharing Authority of California, Sacramento; Salt River Landfill, Scottsdale,
AZ.
• Management assessments, human resources hiring systems, supervisory training, and
team building seminars for private business and state governments.
Customer service training for state government employees involved in welfare reform
projects.
• Career counseling assessments and training for welfare recipients.
Mrs. Robertson has a BA in Marketing with a minor in Finance from Texas A&M University.
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 7 Vernon, California
RANDY DAVIS-Atlanta, Georgia
Mr. Davis retired in 2000 from the U.S. Department of Labor; Wage and Hour Division and
currently works as a consultant and provides support to The Mercer Group, Inc. He worked the
last eleven years as Branch Chief for Fair Labor Standards in the Atlanta Region which included
eight Southeastern states. He also worked sixteen years as an Investigator, eleven with the Wage
and Hour Division and five with Internal Revenue Service. As Branch Chief his responsibilities
included speaking to employer groups, training investigators and providing interpretations of the
various laws, regulations and enforcement policies to the investigators and supervisors. His areas
of expertise include the Fair Labor Standards Act (minimum wage, overtime, exemptions, child
labor), the Family and Medical Leave Act, the Employee Polygraph Protection Act, the wage
garnishment provisions of the C.C.P.A., the Migrant and Seasonal Agricultural Worker's
Protection Act and various immigration laws including those related to H-113, H-2A and H-213
temporary foreign workers.
Mr. Davis has a Bachelors of Business Administration from the University of Louisville.
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 8 Vernon, California
II. EXPERIENCE
REFERENCES
The Mercer Group, Inc. has been conducting compensation and classification studies since its
inception in 1990. Phillip Robertson has been the manager of over 95% of all Mercer Group
Compensation and Classification Studies for the past 9 years. The references below are for
classification and compensation studies similar to the City of Vernon project. All of the projects
listed below were conducted by The Mercer Group, Inc. including staff proposed for this project
and managed by a member of this team.
Ms. Barbara Dupre'
Director of Human Resources
Hernando County, Florida
20 North Main Street, Room 364
Brooksville, FL 34601
352-754-4013
FAX: 352-754-4025
Compensation and Classification Study for Board of County Commissioners, Supervisor of
Elections, Property Appraiser, Tax Collector and Clerk of Court.
The original project was completed in 1998 and fully updated in 2002.
We continue to provide services for Hernando County.
Ms. Erika Phillips, Human Resources Director
Town of Holly Springs
128 South Main Street
Holly Springs, NC 27540
919-557-3911
Compensation and Classification Study completed 2004.
We continue to provide update services
Mr. Don Tomlin
Chairman of the Board
Assisted Housing Risk Management Association
Rantoul, Illinois
309-342-8129 x 214
Compensation and Classification and Organizational Study
AHRMA is a risk management pool serving housing authorities in Iowa, Illinois, and Nebraska.
Paul Eckert, City Manager
Bridey Hayes, Human Resources Director
Sioux City, Iowa
712-279-6175
Compensation and Classification Study
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 9 Vernon, California
Mrs. Kay Godwin
Human Resources Director
Okaloosa County Human Resources Department
601B North Pearl Street
Crestview, Florida 32536
850-689-5870
FAX: 850-689-5889
Compensation and Classification Study for Board of County Commissioners and Supervisor of
Elections.
The original project was completed in 2000. We continue to provide update services
Ms. Leigh Grantham
Vice President, Marketing and Human Resources
Choctawhatchee Electric Cooperative
Defuniak Springs, FL
850-892-2111
Classification and Compensation Study
The original project was completed in 2000.
A comprehensive update was conducted in 2004.
We continue to provide update services.
Mr. Jamie Justice
Town Manager
Town of Mooresville, North Carolina
413 North Main Street
Mooresville, N.C. 28115
Compensation Study for Public Safety Employees 2007
Mr. Dennis R. Halloway, City Manager
Ms Barbara Nicholson, Personnel
City of Loma Linda
25541 Barton Road
Loma Linda, California 92354
909-799-2814
Compensation and Classification Study
Additional references and experience can be provided upon request.
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 10 Vernon, California
III. PROJECT PURPOSE, SCOPE, AND EXPECTATIONS
A. Purpose of Study:
The primary purposes of the compensation study for the City of Vernon are to:
• Respond to and reflect changing market conditions as they affect salary range
designations for various classes of positions;
• Ensure equity and consistency among similarly classified positions.
• Facilitate final decisions on matters of compensation policy, procedure, and
implementation of study recommendations.
B. Primary Study Objective:
• Ensure that salaries for the City's employees included in the study are
competitive with comparable public and private sector employers in the
relevant labor market.
Based on the project scope the deliverables will include but not be limited to:
1. Recommend base salary ranges that are competitive with the external market and
equitable with comparable internal jobs.
2. Work closely with the employees and management.
3. Recommend an effective, highly flexible and easily administered and maintained system.
4. Provide a plan and a schedule for implementation.
5. Make presentations to the City Administrator and Council, as needed.
The specific results of the Compensation study are displayed in Exhibit I.
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The Mercer Group, Inc. December 7, 2007
Page 11 Vernon, California
EXHIBIT I
RESULTS OF COMPENSATION EVALUATION:
• Development of comprehensive market survey instrument for
continued use by the organization;
• Development of appropriate salary guidelines;
• Assignment of appropriate salary range to each
classification; and
• Development of written guidelines of the total system.
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The Mercer Group, Inc. December 7, 2007
Page 12 Vernon, California
IV. PROJECT APPROACH
The Mercer Group, Inc. believes that the Compensation Study must have extensive client
participation. Our experience has shown that successful assignments are characterized by:
• A mutual understanding between the client and the consultant staff of the objectives, study
process, timing, and end products of the study;
• A thorough understanding of the current situation by the consultants before proceeding with
detailed analysis;
• Providing opportunities for participation and input by staff; and
• A thorough review of draft reports with the City Administrator, Councilmember and others
identified by council.
Our work plan includes provision for each of the items listed above. The specific participation
of City officials and staff is described as follows:
City Administrator andlor Mayor & Council- The Principal client will receive a thorough
briefing and description of the study process and methodology. At the end of the study, the
principal client will receive a briefing on all .findings and recommendations as well as briefings
throughout the process as appropriate. It is important that the principal client be involved in the
key policy issues to ensure the overall effectiveness of the resulting classification and compensa-
tion systems to meet the needs of the organization.
Employees — All employees whose positions are affected by the study must feel that they have a
role in the process and that their input is both sought and welcomed. That role and input will be
introduced and explained by a thorough and accurate initial presentation about the project.
The Mercer Group, Inc. approach to a Compensation Study stresses participation at all levels.
The result will be a new system that is truly developed by those who must live with it.
Work Program and Schedule
In order to meet the client's specific objectives for this project, we have developed a work plan
consisting four (4) steps, as follows:
STEP 1. Orientation
Because of the significance of a comprehensive compensation study, a clear understanding of
and agreement to the work plan is critical. We will begin the project by meeting with the City
Administrator, Department Heads and whoever else is designated to clarify the following
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The Mercer Group, Inc. December 7, 2007
Page 13 Vernon, California
issues:
• Specific issues regarding the current pay structure(s);
• Specific issues regarding Departments and Divisions;
• Understanding of the objectives for the systems;
• Review current job descriptions in order to obtain a thorough understanding of each position
included in the study by way of the benchmarking process and pay range updates;
• Begin identification of benchmark positions;
• Begin development of a list of organizations for the "market analysis," including public and
private employers; and
• Implementation strategy for results of the study.
At the orientation, we will also obtain information on current practices. We will then provide the
initial communication to employees through group meetings, written explanations, or both,
depending on the needs of the organization. The Mercer Group, Inc. prefers to meet with
employee groups to review the process. Compensation Studies can produce anxiety with
employees. We have found that open discussions with employees at the beginning of the study
helps employees understand what to expect from us and what we are going to ask of them. It
also allows employees the opportunity to voice any concerns or questions and meet the
consultants. During orientation we generally provide our contact information to employees and
encourage them to contact us at any point during the process if they have questions or concerns.
STEP 2. Market Analysis
Using the specifications developed through the orientation and discussion process, we will work
with the City to select a representative number of positions to be used as "benchmarks" for a
market comparison survey.
The survey instrument will be developed as part of our assessment and understanding of the
needs of the organization. We recommend that a broad base of private and public organizations
be used. Through meetings with management we will work together to identify the
organizations to be included in this survey.
The survey instrument will be customized for the City and left with the City for continued use in
maintaining the system. All information will be analyzed by The Mercer Group, Inc. and a
detailed report will be prepared regarding the responses. This analysis and report will be done
on Excel spreadsheets and provided to the City with training on how to update the spreadsheets
in maintaining the system.
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The Mercer Group, Inc. December 7, 2007
Page 14 Vernon, California
We recommend that the market analysis survey be repeated in its entirety at least once every two
years with parts of it used more often. We will provide the organization with the instrument and
training in the analysis of data.
Using the market research data, a set of specific recommendations regarding the level of
Compensation for all classes will be developed. In this part of the study, we will:
Provide pay levels for all affected classes;
Provide recommendations on policy decisions such as range widths, new -hire level
guidelines, and mechanisms for slotting; and
Provide alternative implementation strategies for the system, including the cost of each
alternative.
STEP 3: Trainingand nd System Maintenance
Training will be provided for all appropriate personnel in the administration of the new
compensation system, including:
• The market survey instrument for continued update of the salary system; and
• Implementation procedures.
We provide telephone consultation for one year following the study. Many of our clients keep us
on contract following the first year to assistance as needed. We provide this assistance on an
hourly rate.
STEP 4. Reporting and Documentation
Throughout the project The Mercer Group, Inc. will provide the organization with written or oral
updates. Specifically,; we will provide:
Status reports at each step of the process;
Special reports when policy decisions need to be made;
Preliminary final report for review by appropriate officials; and;
Final report.
We will also make a presentation of findings and recommendations to management, staff and the
City Council, as necessary.
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The Mercer Group, Inc. December 7, 2007
Page 15 Vernon, California
PRICE PROPOSAL AND METHOD OF PAYMENT
The not -to -exceed total cost of the Compensation Study for all employees with the exception of
Police and Fire for the City of Vernon will be $26,750. This includes all direct and indirect
expenses associated with the project, including on -site visits for the following:
• Employee Orientation
• Meetings with Department Heads and other supervisors.
• Discussions with members of Council (if requested)
• Discussions of preliminary and final results
• Presentation to Council (if requested)
Our customary payment schedule includes partial payments tied to verifiable completion of
selected phases of the project. The payment schedule listed below is what we would recommend
for this project; however, it is not a condition of our acceptance of this contract.
At completion of initial site work
and Orientation:
At completion of selection of benchmarks,
identification of comparables,
and survey administration:
At presentation of Final Report:
25% of contract amount
50% of contract amount
25% of contract amount
The City of Vernon's cost for The Mercer Group, Inc. for services rendered under this agreement
will not exceed the agreed upon price unless an increase is authorized in writing by the City. We
will comply with all applicable laws, rules and regulations of federal, state and local government
entities.
Our ability to carry out the work required will be drawn greatly from our past experience in
providing similar services to others, and we expect to continue such work in the future. We will,
to the degree possible, preserve the confidential nature of any information received from you or
developed during the work in accordance with our professional standards.
We assure you that we will devote our best efforts to carrying out the engagement. The results
obtained, our recommendations and any written material provided by us will represent our best
judgment based on the information available to us. Our liability, if any, will not be greater than
the amount paid to us for the services rendered.
This proposal constitutes the agreement between us. It cannot be modified except in writing by
both parties. Our agreement will be interpreted according to the laws of the State of California.
Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 16 Vernon, California
VII. AFFIRMATIVE ACTION STATEMENT
It is the policy of The Mercer Group, Inc., to assure equal opportunity based on ability and
fitness for all employees or applicants considered for our client organizations regardless of race,
color, religion, sex, age, marital or veteran's status, national origin, or the presence of any
sensory, mental or physical disability. Such policy shall apply, but not be limited to, hiring,
placement, job classification, transfer or promotion, demotion, recruitment, advertising or
solicitation for employment, rates of pay or other forms of compensation, selection for training,
career development, layoff or termination.
This policy shall be disseminated to clients, subcontractors, suppliers and prospective applicants.
The intent of this policy will apply to internal operations, recruitment and consulting activities
conducted by our firm.
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Compensation Study
The Mercer Group, Inc. December 7, 2007
Page 17 Vernon, California
CITY OF VERNON
Name: Loonis C. Malburg
Title: Mayor /'-iexi—n-r^-T- A
Date: Z�' 11 `
A TEST:
b&NUELA GIRON, C ty Clerk
APPROVED -AS TO FORM:
A�.IWARRISON, City Attorney
GROUP,THE MERCER
mill
46
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COMPENSATION STUDY
The Mercer Group, Inc. December 7, 2007
Page 18 Vernon, California