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HomeMy WebLinkAbout1974-09-05-PAB-rpt.pdf s ' `(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