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CONSULTING AGREEMENT Consulting Agreement THIS AGREEMENT, made and entered into this 29th day of June, 1998, by and. between the City of Clearwater, a municipal corporation, hereinafter referred to as "City," and Steven Rosenthal, aka "The Training Tree, Inc.", hereinafter referred WITNESSETH: Whereas, City desires to utilize the consulting services of Steven Rosenthal In the Human Resources Department ; and Whereas, Employee desires to perform certain services for City ona consulting basis ; and NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows: Section 1. Consulting Relationship. It is agreed by the parties that the Employee's employment relationship with the City, for the Human Resources Department shall include the terms, duties and responsibilities, salary, and compensation which are set forth herein and that the consultant shall not be entitled to any salary or benefits other than as expressly set forth herein. Section 2. Term. Employee will begin provision of services under this Consulting Agreement effective July 1 ,1998. The term of this Consulting Agreement shall begin on the Effective Date and shall end on September 30, 1998. Nothing in this Agreement shall be construed to establish any right of the Consultant to continued employment with the City nor shall anything in this Consulting Agreement prevent, limit, or otherwise interfere with the right\ of the City Manager to terminate this Consulting Agreement and the services of Employee at any time in accordance with the provisions herein set forth. Nothing in this Agreement shall prevent, limit, or otherwise interfere with the right of the Consultant to terminate this Agreement at any time in accordance with the provisions herein set forth. Section 3. Scope of Duties and Responsibilities. a. The Consultant shall perform a variety of human resources and/or labor relations activities as explained ,assigned and agreed to with the consultant. These activities may include but not be limited to: Executive Recruiting, Coordinating the Creation of Division Procedure Manuals and Civil Service Rule Revisions , Creation of Consolidated Human Resources Rules, Regulations and Policies, Labor Relations Training for HR staff, Involvement In Benefit Program Construction and General Human Resources. Page 1 b. It is understood that the Consultant will be providing direction, guidance, and general supervision on some initiatives and will be coordinating resources of people and equipment of the Human Resources Department. Section 4. Compensation a. Consultant will be paid a monthly retainer of $3250.00 for up to 50 hours per month of consulting services. This retainer will include both hours on an off site. b. Consultant shall receive additional compensation above the included hours referenced herein at the per hour rate of $40.00 off site hour and $60.00 on site. Section 5. Licenses/Certifications Employee is responsible for obtaining and maintaining at all times any necessary licenses or certifications which may be required to perform the duties and responsibilities set forth herein. Section 6. Facilities, etc. City will provide appropriate office space, facilities, equipment, and support as in its judgment is necessary for the Consultant to perform the duties and responsibilities set forth herein. Section 7. Termination of Consulting Agreement by Either Party Upon Notice. City may terminate this Agreement at any time upon thirty calendar days' written notice to Employee. City retains the right to preclude Consultant from performing any duties or responsibilities and/or from appearing on the premises during such thirty-day period; however, whether or not City exercises such right, consultant shall be paid during such period. Consultant may terminate this Agreement at any time upon thirty calendar days' written notice to City. Should Consultant not continue to perform the duties and responsibilities as herein referenced during the notice period, and the City wishes these services to be provided the Consultant shall forfeit the right to be paid for such time. Section 8. Entire Agreement. This Consulting Agreement is the entire agreement of City and Employee. Oral changes to this Agreement will have no effect. This Agreement may not be amended or modified except by written agreement signed and dated by both parties. Page 2 ~ . . Section 9. Construction of Agreement; Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida. Venue in any action regarding this Agreement shall be in Pinellas County, Florida. IN WITNESS WHEREOF, the parties hereunto have executed this Agreement the year and date first above written. ::~u::n:LE~t~~~ -- Page 3 ~ ORGANIZATIONAL RESEARCH & SOLUTIONS, INc. March 10, 1999 Paul O'Rourke, Human Resources Administrator City of Clearwater 100 S. Myrtle Avenue Clearwater, FL 33756 Dear Paul: This letter outlines the proposed activities, responsibilities, and fees for me to assist the City of Clearwater with the selection processes for the positions of Parks and Recreation Director and Planning & Development Services Administrator. BACKGROUND The City of Clearwater ("City") wishes to implement selection processes for the positions of Parks and Recreation ("P&R") Director and Planning & Development Services ("PDS") Administrator. The P&R Director position has already been advertised and approximately 60 resume packages have been received. The PDS Administrator position has not been advertised. It is understood that the City requires an assessment process that may include a structured panel interview, meeting(s) with departmental employees, meetings with other department directors/administrators, tour of facilities, and/or paper/pencil work attitude/orientation tests. PROPOSAL Organizational Research & Solutions, Inc. ("ORS") proposes to assist the City with these processes. The tasks and responsibilities for each selection process are broken out below. Parks and Recreation Director Step 1: Design assessment process, construct structured panel interview, and obtain other assessment devices (consult with HR Administrator, review current questions, meet with subject matter experts to design new questions). 2: Create assessment schedule and coordinate resources with Clearwater personnel. Est. Time 12 hours 4 hours TOTAL = 16 hours Planninq & Development Services Administrator Step 1: Write, revise, and coordinate placement of job advertisement with various advertising outlets. 2: Design assessment process, construct structured panel interview, and obtain other assessment devices (consult with HR Administrator, review current questions, meet with subject matter experts to design new questions). 3: Create assessment schedule and coordinate resources with Clearwater personnel. Est. Time 4 hours 12 hours 4 hours TOTAL ="'hours ~c{J 5132 Sterling Manor Drive. Tampa, Horida 33647.813.972.8189 RESPONSIBILITIES City of Clearwater: 1. Work with ORS to determine assessment processes and create the structured panel interview. 2. Determine list of finalists for position. 2. Contact final candidates and arrange for their travel to the City for the assessment process on selected date(s). 3. Arrange for resources (e.g., rooms; vehicles; outside personnel) necessary to implement the assessment process. ORS: 1 . Create job advertisement and coordinate placement of advertisement in appropriate outlets with Clearwater personnel. 2. Meet with subject matter experts to create structured panel interview. 3. Create assessment schedule and coordinate with City of Clearwater personnel to secure necessary resources. 4. Assist with results interpretation. 5. Provide guidance to City personnel as needed. FEES FOR SERVICES Fees associated with the Parks and Recreation Director position, based on an estimated 16 hours of work, are $800.00. Fees associated with the Planning & Development Services Administrator position, based on an estimated 20 hours of work, are $1,000.00 (Total = $1,800.00). Fees for advertising and purchase of professionally published assessment devices will be paid for by the City of Clearwater. Fees incurred by job candidates associated with their travel to the City will be paid for by the City of Clearwater. Sincerely, N~-' Mark L. Poteet, Ph.D. President, Organizational Researc~ Inc. Approved for the City. of Clearwater: ------. Date: 3/11 / l' Cj ~ ------ ~ ORGANIZATIONAL RESEARCH & SOLUTIONS, INC. February 9, 1999 Paul O'Rourke, Human Resources Administrator City of Clearwater 100 S. Myrtle Avenue Clearwater, FL 33756 Dear Paul: As indicated to you in an emailon Friday, I was just starting the process of revising the current Police Sergeant's test during my last few days. The FOP Contract states that a written examination should be given, and the current test has been used for two consecutive terms with no major revisions. Given that the union contract also states that each applicant has the right to review the answer key, and that a relatively high number of Officers passed on the second administration (compared to the first), I recommended and the Police Department approved substantially revising the current test. I was working with Lieutenants Don Hall and Steven Burch on this project. The purpose of this letter is to brief you on the status of this project, outline what actions need to be accomplished to revise the current written examination, and outline my fee for this service if you wish to have me finish this project. Status of Project The Police Department has already completed a task & KSA job analysis of the Police Sergeant position. I am in possession of the results of this job analysis. Further, I have met with Lieutenant Hall and obtained more job analysis information from him on the types of knowledge required by Police Sergeants. Finally, as I do not anticipate that the core areas of knowledge assessed by the test will change dramatically, I have also instructed Lieutenants Hall and Burch to review the current test items and beg!n writing new items. Actions to be Accomplished In order to complete the revision of the Police Sergeant's test, the following actions should be accomplished. These actions are designed to be in accordance with SlOP's Principles for the Validation and Use of Personnel Selection Procedures and Uniform Guidelines on Employee Selection Procedures. 5132 Sterling Manor Drive' Tampa. Florida 33647' 813.972.8189 Step 1: Complete Job Analysis. In order to translate the Police Department's job analysis results into a revised selection procedure, a couple of actions needed to take place: (1) creation of task-KSA matrix; and (2) ratings of the importance of each KSA relative to one another. It is envisioned that this can take place in single meetings of 1.5-2 hours with groups of incumbent Police Sergeants. Results of these steps will be combined with the earlier job analysis results to provide information for test revision. Step 2: Revise Written Examination. New test items will be developed for the written examination to measure important knowledge areas identified by the job analysis. Currently, Lieutenants Hall and Burch should be revising and writing new items so as to get a "head start" on this step. ORSwill assist them in writing new items. Further, other testing procedures may be recommended, depending on the results of the job analysis. Step 3: Revise Selection Procedure. The new test(s) should be pilot-tested by administering it to the current Police Sergeants. To save money, Clearwater HR personnel can oversee the administration of this test. ORS will review the results of the test to ensure that it possesses adequate measurement properties (e.g., reliability; item difficulty; etc.). Revisions to the new test will be made as needed. This is the final product that will be used to test for Police Sergeants. One possible concern with the proposed action plan is that it will delay the date when Police Sergeants can actually be tested. This is especially concerning because the Union Contract states that the test/vacancy must be announced 60 days in advance of the actual test date. Further, after taking the test, Sergeant applicants must be provided with 14 days to review and challenge the answer key. The Human Resources Department then has 14 days to review the challenges and issue a final answer key, and an additional 14 days to grade the test and publish an eligible list. Thus, from the date of the announcement, it could take up to 102 days to publish a new eligible list. The current Police Sergeant eligible list expires on April 29, 1999. As a result, there will be an undetermined amount of time when there is nd eligible list for the position of Police Sergeant. To address this concern, Clearwater may proceed with announcing the test/vacancy as soon as Step 2 is in progress. At this time, the overall content/scope of the tests will be determined. The 60-day period between the announcement and administration of the test can be used to accomplish the rest of Steps 2 & 3 (write items, pilot and revise items). Thus, Clearwater will not have to wait until Step 3 is accomplished before announcing the test/vacancy. This will shorten considerably the period when there is no eligible list for Police Sergeant. Fee for Services The fee for my services, as outlined above, is $3,000.00. This is based on an estimated sixty (60) hours of work (Step 1=28 hours; Step 2=16 hours; Step 3=16 hours). This proposal covers the job analysis and revision of the current written knowledge examination. Any additional test(s) that need to be created as a result of the job analysis will require a separate proposal from ORS. I will be in contact within the next couple of days to answer any questions about this proposal. Sincerely, ~. Mark L. Poteet, Ph.D. President, Organizational Research & Solutions, Inc. ~ Approved for the City of Clearwater: --- Dale ~ ~/ err { ~- References Equal Employment Opportunity Commission, Civil Service Commission, Department of Labor, and Department of Justice. (1978). Uniform guidelines on employee selection procedures. Federal Register, 43 (166),38295-38309. Society for Industrial and Organizational Psychology, Inc. (1987). Principles for the Validation and Use of Personnel Selection Procedures. (Third Edition) College Park, MD:Author. '" "'- ,. ~ ORGANIZATIONAL RESEARCH & SOLUTIONS, INC. February 4, 1999 Paul O'Rourke Human Resources Administrator City of Clearwater 100 S. Myrtle Avenue Clearwater, FL 33756 Dear Paul: Thank you for the opportunity to propose to assist you and the City of Clearwater with the aptitude and skill assessment of employees being assisted by the Employee Staffing Team. The intent of this letter is to detail Organizational Research & Solutions' (ORS) proposed course of action for helping the City of Clearwater, FL, with this project. BACKGROUND ORS understands that the City of Clearwater in general, and its Employee Staffing Team in particular, require assistance in determining the skills, aptitudes, and qualifications of certain employees for alternative job placements. These employees most often will include those injured on or off their original job, those unable to work because of a medical condition, or employees whose positions are eliminated because of reclassification or job redesign. The Employee Staffing Team assumes responsibility for the permanent placement of employees in new positions for which they are qualified and/or can be trained. Many times these employees require additional training if they are placed in positions which are substantially different than their original position (e.g., labor employee moving into clerical position). The Employee Staffing Team has access to various career and job interest inventories and personality-type indicators (e.g., Holland Self-Directed Search; MBTI),in addition to some specific clerical skills tests (Le., typing, data entry, error detection). The Team is interested in rounding out their current set of tests with a broad range of general and specific aptitude and skills tests. The goal of the combined assessment process (interest inventories; type indicators; aptitude and skills test) is to provide the Employee Staffing Team with information that it can use to more accurately place employees into positions for which they have greater chances of success. PROPOSAL ORS proposes to provide aptitude and skill assessment services for employees being assisted by the Employee Staffing Team. ORS, in conjunction with a representative of the Employee Staffing Team, will determine which of a variety of aptitude and skills tests will be most appropriate for each employee depending on the type( s) of positions in which he/she is going to be placed. The chosen tests will be administered by the City of Clearwater, and scored and interpreted by ORS. ORS will provide the City of Clearwater with a list of various aptitude and skills tests from which to choose. Special testing requests will be handled on a case-by-case basis. RESPONSIBILlTIE9\ND 11MB..Jf\E 5132 Sterling Manor Drive. Tampa. Florida 33647.813.972.8189 ".'-, City of. Clearwater: 1. Work in conjunction with ORSto determine which tests are most appropriate to use for a given individual. This indudes forwarding any supporting documentation (e.g., job descriptions) to ORS. 2. Administer the tests in a manner specified by the test publisher and/or ORS. 3. Return completed tests to ORS in a timely manner. ORS: 1. Score the tests. 2. Interpret the scores on each test. 3. Provide a written report on the test results. Barring extenuating circumstances (e.g., consultant out of town), the written report will be generated and provided to Clearwater within 48 hours of receipt of the completed tests. The written report will indude: a. Summary of performance on each test administered. b. Overall summary of performance for candidate. c. Narrative on positions for which the candidate seems best suited. 4. Provide verbal feedback to Clearwater representative and answer questions as needed. I propose that this project commence once the final list of possible tests is compiled. FEESFOR SERVICES Fees for this service are $150 per candidate tested, based on an estimated three hours of work per candidate. Costs of the test answer forms will also be charged back to the City of Clearwater. Normally, this cost should not exceed $25 per candidate. Fees will be billed as they occur. I will speak with you in the next few days to finalize particulars about this project and answer any question you may have. Thanks again for the opportunity to propose on this project. Sincerely, r1"(~ Mark L. Poteet, Ph.D. President, Organizational Research & Solutions, Inc. ~ Approved for the City of Clearwater: -=-- Date: ~""> s! 1'1 ~-- Test Revised Beta Examination (2nd Edition) KSAO's Measured General Nonverbal Intellectual Abil ity Wesman Personnel General Mental Classification Test Ability Wonderlic Personnel Test Revised Minnesota Paper Board Form Test Perceptual Speed Test Bennett Mechanical Comprehension Test General Mental Ability Ability to visualize and manipulate objects in space Ability to rapidly identify similarities and differences in visual configurations Aptitude to learn mechanical skills EST Testing Model Description 6 subtests form overall score: Picture Completion Mazes Paper Form Boards Picture Absurdities Clerical Checking Coding 2 subscales: Verbal reasoning ability Numerical reasoning ability 3 subseales: Ability to Learn Ability to Understand Instructions Ability to Solve Problems on the Job Uses geometric shapes Uses diagrams, numbers, and written material 68 frequently encountered mechanisms are presented; requires no special knowledge; requires application of a physical law or mechanical operation, and focus on spatial perception and tool knowledge rather than manual dexterity Time of Administration 15 minutes; individual or group 28 minutes, individual or group 12 minutes, individual or group 20 minutes; individual or group 5 minutes; individual or group 30 minutes; individual or group Cost of Administration $4.20 $2.40 $3.40 $2.74 $2.66 $7.08 Notes Appropriate for individuals who read poorly or not at all. Contains minimum scores required for over 12,000 job titles. Fourth grade reading level; appropriate for designers, draftsmen, electricians, or engineers Suitable for visual inspectors, proofreaders, and clerical personnel Fourth grade reading level; appropriate for mechanical, technical, and manufacturing jobs EST Testing Model (continued) Time of Cost of Test KSAO's Measured Descriotion Administration Administration Notes Customer Service Customer service 7 subscales: Untimed $11.65 Appropriate for jobs Skills Inventory* orientation Pressure tolerance (normally 30 requiring customer Realistic orientation minutes) service orientation Time appraisal Independent judgment Responsiveness Sensitivity Balanced judgment Precision orientation Short Employment Clerical Aptitude Applicant must locate and verify a 5 minutes; $2.74 5th Grade reading level; Test: Clerical name in an alphabetical list and individual or appropriate for clerical Aptitude** read and classify the dollar amount group positions entered opposite that name. Speed and accuracy determine test score. Employee Aptitude Multiple Aptitudes 10 Tests: 5 minutes or $2.70 per test; Requires 6th grade Survey associated with Verbal Comprehension less per test; $10.80 per 4- reading level; Publisher General Mental Numerical Ability individual or test battery recommends various 4- Ability Visual Pursuit group test batteries for different Visual Speed and Accuracy types of jobs; e.g., Space Visualization clerical, productionl Numerical Reasoning mechanical, technical, Verbal Reasoning professional. Word Fluency Manual Speed and Accuracy Svmbolic Reasonina Survey of Personal Job-Related 6 scales: Untimed; $5.18 Appropriate for a wide Values"* Personality Practical Mindedness typically 15 variety of occupations Achievement minutes; Variety individual or Decisiveness group Orderliness Goal Orientation Notes. Unless otherwise indicated, cost of administration figures are per applicant. *The City of Clearwater should have about 5-10 of these tests already purchased. -As this test is sold only to HR Departments, the City of Clearwater may need to purchase this test.. ORS will check on this. ***The City of Clearwater has already purchased several copies of this test. ~ ORGANIZATIONAL RESEARCH & SOLUTIONS, INC. January 28,1999 Paul O'Rourke Human Resources Administrator City of Clearwater 100 S. Myrtle Avenue Clearwater, FL 33756 DearPaul: Thank you for the opportunity to propose to assist you and the City of Clearwater with the design and implementation of a new performance appraisal system. The intent of this letter is to detail Organizational Research & Solutions' (ORS) proposed course of action for helping the City of Clearwater, FL, with this project. The information that follows is based on the few discussions we have had regarding the need for this performance appraisal system. BACKGROUND Traditionally, performance appraisal within the managerial ranks at the City of Clearwater has been more of an after-thought and not viewed as a particularly effective means of managing performance. Rewards, both monetary and non-monetary, historically have been based more on longevity with the organization rather than merit. An employee who exceeds his or her goals and performs in a outstanding manner typically receives the same wage increase as an employee who performs at a moderately successful level. In theory, those who do not perform at a satisfactory level do not receive the merit wage increase. Practically, the great majority of employees receive satisfactory ratings. Thus, what results is a system where nearly every managerial employee receives the same wage increase, irrespective of their individual levels of performance. The City of Clearwater believes that this system does not reward employees for high performance and reinforces "satisfactory" levels of performance as the standard. Thus, the City of Clearwater wishes to implement a new performance appraisal system for Executive-level employees (e.g., Administrators; Directors; Assistant Directors). It is my understanding that this performance appraisal system may serve as a model for and be adapted to and implemented throughout a larger part of the organization (e.g., Division Managers; Professional and Technical employees) at a later date, pending the outcomes of this initial implementation. The initial purposes and objectives of the new performance appraisal system, as outlined to me, include the following: · To help create and reinforce a pay-for-performance structure and mentality throughout the affected groups of employees; · To more effectively and accurately hold employees accountable for their performance; · To reinforce and evaluate how well employees perform and "live" according to the Values of the organization; and · To encourage and motivate employees to achieve higher levels of performance. 5132 Sterling Manor Drive. Tampa. Florida 33647.813.972.8189 , , These purposes and objectives, and the system itself, stem from the need for Clearwater's executive employees to help make Clearwater the preferred place to live, work, and visit. In order to ensure the success of the City Manager's broad redevelopment plan, entitled "One City. One Future.", the executive staff within the City will need to do more with existing resources, encourage and garner superior performance from their employees, and create programs and services that contribute to the well-being of the organization and the City. PROPOSAL ORS proposes to work with the City of Clearwater to design and implement a performance appraisal system for executive employees. The action plan that follows is based on several principles of organizational system design that research has demonstrated results in more successful systems, both from a process and outcome perspective. These principles include: Communication: Communication between senior management, design team members, and users of the human resources system will help ensure that all individuals have a common understanding of the issues and content of the system. Employee Participation: Participation from employees who will actually be using the system will help ensure that the system best meets their needs and will increase their buy-in to the system. "Imposing" a new human resources system on employees without their participation significantly increases the likelihood that the system will not be accepted. Integration with Other Systems: Human resources systems that are integrated with other existing systems and the culture of the organization stand much better chances of success. Throughout the project, the Project Team will work to ensure the integration of the performance appraisal system with Clearwater's culture and systems. Flexibility: Rarely does the same human resources system work for all groups of employees. Thus, it is recognized that certain components of the system may need to be changed before it can be implementedto other members of the organization (e.g., Division Managers). Time: To the degree that the performance appraisal system is intended to affect larger organizational change, additional time will be needed in order to evaluate the system's effectiveness. Changes in behavior and values do not take place in the short-term. The proposed action plan consists of several broad steps that require the involvement of key employees. These steps are outlined below: Step 1. Form Project Team and Review Board. A project team will be formed to work with ORS in designing and implementing the performance appraisal system. Project team members should include representatives from the Human Resources Department (who will "own" the system); Legal Department (to ensure the legality of the system); Human Relations Department (to review fairness of system); and sample executives who will ultimately use the system. A Review Board consisting of the City's top leadership and owners of the system (e.g., H.R.Administrator) should be formed to review the Project Team's progress and ensure that system is aligned with the City's strategic values. Step 2. Assess the Current Organizational Situation. The Project Team should conduct an investigation of the current organization. Factors to be investigated should include (i) the organizational culture and climate with respect to trust, support, openness, and participation; (ii) effectiveness and pitfalls of the current performance appraisal system; (iii) legal requirements of the system; and (iv) integration of the current and proposed system with other human resources systems. The goal of this step is to generate a list of organizational characteristics that will need to be addressed in the design of the performance appraisal system. Step 3. Review Purposes and Objectives. Several initial purposes of the proposed performance appraisal system have been identified based on our prior discussions. Reviewing these with the Project Team will ensure that all team members have a shared understanding of the purpose of the system. Further, there may be additional purposes and objectives identified by the team that can be incorporated into the design of the system (e.g., development, career planning). Step 4. Review other Municipality's Performance Appraisal Systems. It is recognized that other municipalities within the state of Florida may have systems that are designed to achieve some of the same objectives that the City of Clearwater wishes to achieve. The Project Teamwill investigate some of these municipality's systems and identify best practices and "lessons learned." This should help to facilitate a smooth design and implementation process for the City of Clearwater's system. Step 5. Design Performance Appraisal System. A large part of the project timeline will be devoted to designing the performance appraisal system for the City of Clearwater. Some issues that need to be considered include: (i) when will performance be appraised?; (ii) how often will performance be appraised?; (iii) how will performance be appraised?; and (iv) who will appraise performance? The best practices identified from Step 4, established findings from the performance appraisal research literature, the purposes and objectives of the City of Clearwater's system, the Values of the City of Clearwater, and the organizational context and situation unique to the City of Clearwater will all be used to guide the design of the system. Step 6. Implement the Performance Appraisal System. As this system is being designed primarily for use by Executive-level employees, the first implementation affords the opportunity to test the system before its implementation to a much larger group of employees (e.g., SAMP 2 and above). An orientationltraining program may be needed to facilitate the implementation of the system. Further, to the extent that the system is in conflict with a strong organizational culture (e.g., participative system vs. a dictatorial culture), more in-depth human resources initiatives may be needed. Step 7. Evaluate the Performance Appraisal System. After its initial implementation (typically at the end of the first full rating cycle, Le., one year), the system should be evaluated to determine whether it achieved its stated objectives. The evaluation should focus on employee's satisfaction with the system, legal defensibility of the system, distribution of performance ratings, and desired changes in the system. RESPONSIBILITIES This proposal deals only with the design and implementation of the performance appraisal system for executive-level employees. A separate proposal will be required if ORS is requested to modify and/or adopt the system organization-wide or to a larger group of employees. Further, this proposal does not cover the design and delivery of any formal training associated with implementing the performance appraisal system. It does, however, include formal communication to employees as part of the design and implementation process. ORS will willingly submit proposals for these projects should it be desired. My role in this project will encompass the following: (i) facilitate discussions and decision-making by the Project Team; (ii) help research and evaluate various issues detailed in the action plan; (iii) provide subject matter expertise as it relates to overall design and implementation features of the system; (iv) create forms, manuals, and communication as needed; and (v) provide overall oversight to the project. Periodic project status reviews will also be provided to the Review Board by the consultant. Throughout the design and implementation of the performance appraisal system, Clearwater's employees will be used whenever possible (e.g., on the Project Team). Clearwater employees will be expected to work with the consultant in accomplishing the tasks outlined in the above paragraph. Further, the use of Human Resources technical personnel will be useful for accomplishing general clerical/administrative duties associated with the project, such as creating performance appraisal form, writing policies, contacting other municipalities and gathering information, writing procedures manual, writing communication plan, and coding data gathered during the process. Employee participation has the dual benefit of (1) ensuring employee involvement in the design of the system and (2) saving the City of Clearwater money on consulting costs. It is recognized that the material produced in conjunction with this project may be subject to public inspection as required by Florida Public Records Law. All specific forms, materials, communication, etc., created specifically for and tailored to Clearwater's performance appraisal system will be the property of the City of Clearwater and shall not be used by ORS for material gain with any other client. Any material or information not specifically related to the City of Clearwater's performance appraisal system, or related to the practice of performance appraisal or Industrial and Organizational Psychology in general, will not be owned by the City of Clearwater. llMING As I understand, the executive team at the City of Clearwater will be meeting at an off-site retreat in the beginning of February, 1999, to finalize the City's Values, Goals. and Objectives. Therefore, I propose that work on this project commence soon after this meeting. It is understood that the new performance appraisal system should be ready for initial implementation by October 1, 1999. ORS will maintain involvement in an advisory capacity throughout the implementation of the system and will work closely with the City of Clearwater in evaluating the system once it has been implemented for one rating cycle. . , FEES FOR SERVICES My professional fees for this project will be $8,400.00. This figure represents 21 days of work at the rate of $400.00 per day. The estimated 21 days to complete this project are broken down per step as follows: Step Step 1: Form Project Team and Review Board Step 2: Assess the Current Organizational Situation Step 3: Review Purposes and Objectives Step 4: Review other Municipality's Performance Appraisal Systems Step 5: Design Performance Appraisal System Step 6: Implementthe Performance Appraisal System Step 7: Evaluatethe Performance Appraisal System *1 day = 8 hours Est. Time* 0.5 day 2.0 days 1 .0 day 3.0 days 9.0 days 3.0 days 2.5 days TOTAL = 21 days The time estimates provided above are for the consultant's time. Actual time required by City of Clearwater staff (Le., Project Team members; Human Resources Personnel) to help accomplish each of the steps may be more or less depending on the nature of the tasks. To lower administrative costs, work requiring the use of office supplies (e.g., brochures, printing of final forms) will be performed using City of Clearwater supplies. Otherwise, the following out-of-pocket expenses will be charged back to the City of Clearwater: (i) final (not draft) printing of formal communication, induding but not limited to brochures and forms; (ii) mailing costs; and (iii) any travel fees associated with visiting other municipalities. Both professional fees and expenses are billed monthly. I will speak with you in the next few days to answer any questions you may have regarding this proposal and to discuss any revisions you require. If you agree to this proposal, please sign one copy of this letter and return it to me. Thanks again for the opportunity to propose on this project. Sincerely, Mark L. Poteet, Ph.D. President, Organizational Research ~ Inc. Approved for the City of Clearwater: _ Dale: >! I" I q ( ~ ....... -------