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`(Ioban of ' iexingtnu, 456maarftusetts
MEMORANDUM
TO: BOARD OF SELECTMEN DATE: 9/5/74 PAGE: 1
PERSONNEL ADVISORY BOARD
FROM: Walter C O'Connell, Town Manager SUBJECT' PROPOSED PERSONNEL
SYSTEMS IMPROVEMENT PROJECT
The following is submitted at the reggQst of the Personnel Advisory Board
and represents in summary form the project as proposed for implementation
following Board of Selectmen and Appropriation Committee concurrence (if
required) following anticipated approval by the Personnel Advisory Board
at its meeting of Thursday September 5
Project Objective To improve the effectiveness of the human resources in
General Government by development and installation of a modern municipal
personal management sub system within the general administrative organization
of 'Lexington Town Government as called for by Chapter 753, Acts of 1968
(Selectmen-Town Manager Act) This includes the revision and updating
of the existing Job Classification and Compensation Plans
Background The project outlined here is the culmination of a series of
decisions by the Board of Selectmen and Appropriation Committee, and
recommendations of the Personnel Advisory Board primarily
1. The creation of a Personnel Advisory Board.
2. The inclusion in the FY 75 budget of $15,000 in funds to engage
management consulting services
3. Creation of an additional position of Personnel Director and
inclusion of $15,000 in FY 75 budget.
4 Certain commitments to Town Meeting by the Appropriation Committee
regarding the implementation of the program.
Status of the Project Out of numerous meetings and memos a plan has
evolved which is believed to have the general concurrence of the Personnel
Advisory Board, Board of Selectmen and the Chairman of the Appropriation
Committee It is documented here in order to get confirmation of approval
and authorization to proceed. The Town Manager respectfully points out
that the position guide was submitted July 9, 1974 Since then this project
has dominated our effort Everything within the Town Manager's authority
has been carried out as far as possible (management consultant(s) selection
and Personnel Director recruiting) but nothing has been implemented pending
decisions by others
The Project as Proposed (based on Board's and Appropriation Committee decisions)
1. The services of two management consultants will be used as follows
a. Arthur D Little, Inc to update and revise our Job Classification
and Compensation plans We hope the quoted cost of $13,500 can be negotiated
down to $12,500 based on reduction of work scope growing out of b
b The services of Mr Neil Chapman to assist the Town Manager in
the development and installation of an improved personnel function in General
Government The quoted price of Mr Chapman's services is $17,000 to June 30,
1975, based on an estimated 3 days per week. A draft of the proposed memorandum
of agreement is attached (Exhibit B)
?itatun of 74,xin2tan, AHassacftusetts
MEMORANDUM
To: BOARD OF SELECTMEN DATE: 9/5/74 PAGE: 2
PERSONNEL ADVISORY BOARD
FROM: Walter C O'Connell, Town Manager SUBJECT-
2 The plan of action would be to engage Mr Chapman's services as soon
as possible, engage A. D. Little as soon as a revised contract can be drawn
and proceed under Mr Chapman's guidance. A list of the tentative major project
tasks is attached (Exhibit A) Present administrative personnel would be
utilized to theoptimumto create a personnel/administrative organization to
assist in the development and installation of the personnel functions and to
administer the on-going program resulting. At the appropriate time, a decision
would be made (how? and by whom?) on whether the responsibilities of the
position guide can be met by available personnel or whether a Personnel Director/
Administrator would be recruited form outside General Government.
3. Per request of the Personnel Advisory Board, continue the outside
recruiting effort for a Personnel Director/Administrator during the next three
months Reduce the candidate list to 5 finalists and hold pending decision
in item 2 above
The Timetable, as Now Proposed
II
Start -- Not later than September 15
Completion and acceptance of the Job Classification and Compensation Plan,
from A. D Little, -- December 31, 1974. Note - A. D Little has quoted 5 months.
Personnel Director and/or Administrator staffing action -- February 1, 1975
Completion of FY 75 budget portion of project --
Final Status report* February 1, 1975
Work wind up June 30, 1975
*This report will indicate the program expected to be completed by June 30, 1975
and indicate that nature of the remainder of the program in FY 76, if any
Estimated Cost of Services to June 30, 1975
A. D. Little Inc. services $12,500 (estimate)
Neil Chapman services 17,000 (quote)
Project clerical support 4,500 (estimate)
See Note Page 4.
$34,000
The above is exclusive of the services of administrative personnel (D. Hughes
and P Smith) provided for in the FY 75, but for substantially different duties
The maximum funds available in the FY 75 budget for this program total $35,000
The apparent .financial balance of this project should not be misunderstood A
major deficit is incurred in available administrative personnel to meet the
remainder of the total administrative work load. To avoid not increasing the
F-TM•I MP-2M
iafun of ?CIexingfun, 4%zssurkusetts
MEMORANDUM
To; BOARD OF SELECTMEN DATE: 9/5/74 PAGE: 3
PERSONNEL ADVISORY BOARD
FROM: Walter C O'Connell, Town Manager SUBJECT'
already existing and steadily increasing overload would require one
additional person, not budgeted in FY 75
Problems Associated with this Plan
1 The timetable as proposed may not be realizeable Its relationship
to the personal services budget and collective bargaining negotiations is
critical.
2 The reaction of unions and department heads is not adequately known„
3 Office space for the personnel project (to become a personnel organiza—
tion) is very important from the beginning. If it is to be provided in the
Town Office Building (the optimum location) it will have to come from rearrange—
ment of space not now being used to the maximum.
4 Mr Chapman has called attention to the importance of and increased
need for labor counsel assistance, caused particularly by new law, and the
possibility of this representing added cost for additional professional
services
5 Final decisions are needed promptly in order that Mr Chapman can
plan and commit his time accordingly
6 The impact of this project, with the allocation of personnel essential
to it, on the total administrative work load during the budget period has been
previously explained (page 6 of 8/12/74 memo) It remains a most critical
problem.
Actions Needed.
1 Understanding by all concerned of problems, and risks associated
with this course of action
2. Approval by all agencies (whose concurrence is required) or immediate
revision, i e. , a clear go ahead or other direction.
3 Establish contract arrangement with Mr Chapman.
4 Establish contract arrangement with A. D. Little.
5 Devise office space plan for personnel function.
6. Meeting with department heads
7 Implement program.
W�
Y3Iofnn of 2Iexington, ilfassarfiusetts
MEMORANDUM
TG: BOARD OF SELECTMEN DATE: 9/5/74 PAGE: 4
PERSONNEL ADVISORY BOARD
FROM:Walter C. O'Connell, Town Manager SUBJECT'
Note With respect to the estimated cost of services to June 30, 1975
In the event that a decision were made to engage a Personnel Director
in early 1975 and continue Mr Chapman's services through June 30,
1975, that would create an additional cost of $8,000 (approx.) of
expense which is not budgeted
1
EXHIBIT A 9/5/74
List of Major Project Tasks - Mr Chapman
1. Develop overall objectives and goals to serve as a frameof reference and
guidelines for the development of the town personnel management program.
a. Review and evaluate present policies, procedures.
b Evaluate present personnel policies and operating practices to determine
their adequacy and suitability and to identify requirements not being met and
activities needing improvement.
c. Interview department heads and others as needed; learn their views;
obtain their evaluation of effectiveness of present policies and/or practices.
2 Provide administrative guidance of and coordination (on behalf of the Town
Manager) with A. D Little, Inc in their job classification and compensation
plan project.
3 Prepare an outline for an overall basic organization and personnel policy
manual for use and guidance of operating management by documenting policies,
and designating responsibilities, authorities and working relationships of
the various organization components involved. Guide the development of the
manual*, and the introduction of new operating practices
*It is recognized that the complete development and installation
of manualized procedures may extend beyond June 1975.
4. In a manner similar to item 3 above, prepare an outline for and guide the
development and installation of a personnel policies and procedures manual
covering all essential personnel functions to provide guidelines for operating
management in carrying out their personnel management responsibilities and for
employees to understand their obligations and benefits
5 Examine and provide counsel to the Town Manager and/or Personnel Advisory
Board on policies and practices, pertaining to employment, benefits administra-
tion, training, employee communication, personnel records, personal services
budget and similar personnel oriented matters
6 Provide teaching direction to the administrative employees assisting in
the development, installation and on-going implementation of the personnel
program, to achieve the objective of optimum utilization of the capabilities
of present administrative personnel.
The above list of tasks and related priorities are subject to possible revision
(after review with Personnel Advisory Board) based on mutual agreement between
Mr Chapman and the Town Manager, based on the results of the evaluations
made
EXHIBIT B 9/5/74
MEMORANDUM OF AGREEMENT BETWEEN
THE TOWN OF LEXINGTON
AND
W NEIL CHAPMAN
SIX PATRIOTS DRIVE, LEXINGTON
Purpose
This agreement documents the general terms and conditions covering
1
I
the furnishing of personal services by Mr Chapman in the capacity of
personnel management consultant to the Town of Lexington.
The intent of work covered by this agreement is that through the
utilization of Mr Chapman's services, drawing upon his extensive general
and personnel management experience together with the application of other
Town resources, to realize a major improvement in effectiveness of General
Government's human resources through the development and installation of
a modern municipal personnel management sub-system within the general admin-
istration organization of Lexington Town Government as called for by Chapter
753, Acts of 1968 (Selectmen-Town Manager Act) The services to be provided by
Mr Chapman in laying the ground work are outlined in more detail in Exhibit A
attached
Schedule
Mr Chapman's services shall start by and continue until
June 30, 1975 on a schedule of approximately three days per week average;
the specific week by week schedule to be arranged between the parties to
best suit mutual interests
Fees
For his services covering the schedule period, the Town of Lexington
agrees to pay Mr Chapman the sum of $17,000 as follows
Memorandum of Agreement 9/5/74
$8,500 due January 31, 1975
8,500 due June 30, 1975
Out of pocket expense, incurred for transportation and living expense
for such out of town travel as may be required and authorized, are not
included in the above fee, but shall be reimbursed by the Town upon submission
of appropriate billing by Mr Chapman
Auxiliary Services
The Town agrees to supply the necessary office space, telephone and
clerical support, and office supplies required for this project.
Progress Reports
Mr Chapman will consult with and provide project status reports to
the Town Manager and Personnel Advisory Board as appropriate This will
include periodic progress reports on not less than a monthly basis
Termination.
Both parties agree that this agreement can be terminated by either
party unilaterally without liability or further obligation, upon 60
days notice in writing
Accepted by Accepted for the
W Neil Chapman Town of Lexington
Date Date