10/15/1997
'Coopers
& Lybrand
Coopers & Lybrand L.L.R
a professional services firm
2400 Eleven Penn Center
Philadelphia, Pennsylvania
19103-2962
telephone (215) 963-8000
facsimile (215) 963-8700
Human Resource Advisory
September 22,- 1997
PERSONAL & CONFIDENTIAL
Mr. James Roberts
Monroe County Government
5100 College Rd.
Cross Wing, Room #002
Public Service Building
Key West, FL 33040
Dear Mr. Roberts:
It was a pleasure speaking with you on how Coopers & Lybrand's Compensation Consulting
Group can help Monroe County ("Monroe") in implementing your new compensation programs.
This letter outlines our proposal to conduct a review of employee appeals, ongoing maintenance
and administration of the system, as well as Human Resource support as the second phase of
compensation redesign for Monroe County. Our proposal also includes C&L's project approach,
a statement of our firm's qualifications, the project team and a description of the timing and fees
required to conduct the work as described.
PROJEC'f APPROACH
Our objective, first and foremost, is to work with Monroe County in carrying out these
initiatives. Our consulting assistance will provide input, guidance and direction working very
closely with you and the other key representatives from Monroe County to produce significant,
usable recommendations and to administer the new system in a fair and equitable manner.
Review of Employee Appeals
In this step, C&L will undertake a review of the employee appeals to job evaluation and salary
placement. To ensure that we have accurate and updated information, we will conduct interviews
at various sites along the Keys for those individuals who have submitted a written request.
Once we have collected all additional information, we will assess our findings against the
statistical model used for all positions to ensure integrity is maintained and consistency is
applied. If changes are warranted, we will prepare new reports reflecting cost and placement
impact. Each employee who has asked for reconsideration under the appeals process will receive
written notification of our assessment and the results of their position regarding placement of
their position.
Coopers & Lybrand L.L.P. is a member of Coopers & Lybrand International, a limited liability association incorporated in Switzerland.
Mr. James Roberts
Page -2-
September 22, 1997
Ongoing Maintenance and Administration
To assist Monroe County in ongoing maintenance and. administration, C&L will prepare
interactive spreadsheets from our project database of all of the necessary data and programs
needed to support the new compensation system. These programs will include job evaluation by
position, market pricing of all benchmark and proposed salary placement based on years in the
job.
These spreadsheets can easily be used to maintain your compensation plan going forward and are
typically what we recommend for an organization of Monroe County's size. Personnel within
Human Resources will be trained in the design and intent of the spreadsheets ensuring that they
can operate the system and administer effectively.
Human Resources Support
In order to ensure smooth transition to the new compensation system while Monroe County is
hiring new management into Human Resources, C&L will provide ongoing support on an as
needed basis. This could include job specific market pricing, salary setting in support of
recruitment, assessing new job classifications, ongoing job evaluation or any other compensation
related activities which are necessary during this transitionaJ period.
Report and Presentation
Based on our work in this phase of the project, C&L will prepare a supplemental report outlining
our overall findings and recommendations. We anticipate preparing a management level
presentation for members of the Monroe County and are prepared to present to the Board of
Directors, if requested.
PROJECT TEAM
For this project, we have assigned the same four C&L consultants who have worked with
Monroe County throughout the duration of the project, as follows:
Joe Fleshman - Director in our Philadelphia Compensation Consulting Group will oversee the
project. Joe is responsible for ensuring the overall quality of deliverables and that all appropriate
resources are allocated to the engagement.
Kelly VOSS - Director in our Philadelphia Compensation Consulting Group will oversee
day-to-day project activities and provide technical direction for the project.
Heidi Stuhltrager and John Reing - Consultants in our Philadelphia Compensation Consulting
Group will assist Kelly and Joe in interviewing employees, conducting statistical analysis,
preparing reports and developing support documentation.
Biographies of our project consultants are provided in Appendix B.
Mr. James Roberts
Page -3-
September 22, 1997
TIMING AND FEES
Our fees are derived from projecting the number of hours required to complete assigned
tasks and the level of the individuals assigned. For this phase of the project, we estimate
fees to range from $14,500 and not to exceed a maximum of$16,500. Out-of-pocket
expenses for items such as consultant travel, administrative expenses, bulk photocopy,
printing, express mail, etc., are included. It is our practice to bill monthly.
We will work with Monroe County to establish an appropriate timeframe for the
deliverables required but acknowledge that work under this agreement will commence on
October 1,1997 and be completed by March 31,1998. This proposal will serve as our
understanding of the scope, approach, timing and fees related to this project. The
~.....e of the Mayor will signify the County's agreement to proceed.
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L. KOLHAGE, CLERK
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o ulting Director
APPENDIX
SIGNIFICANT EXPERIENCE IN COMPENSATION CONSULTING
Established in 1961, Coopers & Lybrand's Human Resource Advisory Group (HRA) currently
employs over 1,750 professionals in 40 cities in the United States and overseas. The two HRA
offices assigned to this project, Tampa and Philadelphia, employ 40 and 105 professionals in the
HRA Group, respectively. Staff members include human resource and benefits specialists,
actuaries, lawyers, systems analysts, programmers, compensation and communications
consultants. Our approach provides clients with a team of technical consultants supported by
accountants, tax, and systems specialists. We have found that an understanding of broad
business issues is fundamental to the development of sound employee programs that meet client
objectives cost-effectively.
Coopers & Lybrand's Compensation Consulting Group serves as one of our firm's "Centers for
Excellence" in the following areas:
· Wage and Salary Management - to balance internal equity and marketplace
competitiveness in a performance oriented work environment.
· Executive Compensation - to increase the accountability of key executives and foster
identificatiol1 and balance of ownership concerns.
· Incentive Compensation - to motivate employee behaviors which are consistent with
corporate strategies.
· Alternative Rewards - to develop creative solutions to changing work environments
which inspire increasing levels of employee performance with strategic alliance to
business objectives.
· Performance Management - to enhance work-related performance by rewarding
employee behaviors which are consistent with established individual, team or
organizational goals.
QUALITY CLIENT SERVICE COMMITMENT
Coopers & Lybrand's foremost goal is to provide each client with a sense of control and
confidence in a job well done. Our reputation is our most important asset. To ensure the
successful completion of each project, we assign highly-qualified consultants skilled in their area
of expertise to each project we attain. Each project begins with a carefully constructed project
plan which is monitored frequently and regularly. We assign to the project team the resources
required to complete each task in a timely and efficient manner, and throughout the project we
will check with you often to ensure that our project team is on-track, on-time, and on budget.
w. JOSEPH FLESHMAN, CCP
. .
Joe is a Director in our Human Resource Advisory Group's Compensation practice and has more
than 15 years of experience in the compensation area.
His prior client projects include job evaluations, market pricing, pay surveys and structures, gain
sharing, skill-based pay and broad-based incentives. Joe also has expertise in the area of
organizational studies, organizational design, performance management and continuous quality
management.
In the past, his clients have included:
· Merck & Co.
· Northwest Orient
· IBM Corporation
· Department of Agriculture
· Hershey Foods Corporation
· H.J. Heinz Corporation
· New York City Housing Authority
· Federal Express
· Virginia Court System
· New York Public School System
· Philadelphia School System
· Pennsylvania Court System
· Hillsborough County, FL
Prior to joining Coopers & Lybrand, Joe was a Senior Project Manager with William M. Mercer,
Inc. and a Manager with Ernst & Young's Compensation Consulting Group in Philadelphia.
Joe received his M.S. in Human Resource Management from Villanova University and has
achieved the Certified Compensation Professional (CCP) and Certified Employee Benefits
Specialist (CEBS) designations.
Joe has served as an expert witness in state and federal court regarding excess compensation, pay
bias, and equal pay issues.
KELLY A. VOSS, CCP
Kelly is a Director in the Coopers & Lybrand Human Resource Advisory Group Compensation
Practice. She has a number of years experience in compensation and other human resources
areas.
Her prior compensation projects include:
· Broad-Based Compensation Redesign;
· Scored Questionnaire Job Evaluation;
· Broadbanding;
· Incentive Plan Design;
· Skill-Based and Competency-Based Pay Programs
· Profit Sharing & Gain Sharing
· Organizational Analysis/Redesign;
· Performance Management; and,
· Continuous Quality Management.
Her past clients include:
· City of Tallahassee
· Coca-Cola Bottling Co.
· Dana Corp.
· Hillsborough Community College
· Hillsborough County, FL
· Merck & Co.
· Noland Co.
· Orange County, FL
· Philadelphia School District
· University of Pennsylvania
Sample projects include: computer-based job evaluation, redesign of strategic sales bonus plans,
realignment of competitive pay practices and salary structures, and performance based reward
system.
Prior to joining Coopers & Lybrand, Kelly was a Compensation Manager with Merck & Co.
Kelly received her MA in Industrial/Organizational Psychology and her BA in Psychology, both
from West Chester University. She is also a Certified Compensation Professional (CCP), with
the American Compensation Association.
HEIDI C. STUHL TRAGER
Heidi is a Consultant in Coopers & Lybrand's Human Resource Advisory Group Compensation
practice.
Heidi joined the firm in May, 1995 and has worked on compensation projects involving:
· Market Pricing;
· Job Evaluation;
· Executive Compensation;
· Performance Management;
· Compliance Issues;
· Salary Surveys; and,
· Salary Administration.
Heidi's former clients include:
· Coca-Cola Bottling Company Consolidated;
· Frankford Hospital;
· Boley Centers for Behavioral Health Care, Inc.;
· Milwaukee Metropolitan Sewerage District;
· Old Guard Mutual Insurance Company;
· City of Tallahassee;
· Hillsborough Community College;
· Indiana University Northwest;
· University of Pennsylvania; and,
· The School District of Philadelphia.
Prior to joining Coopers & Lybrand, Heidi worked in the Office of Loan Origination at a
Pennsylvania state student loan facility. She participated in projects involving:
· Loan Structure;
· Loan Design; and
· Statistical Modeling & Analysis.
Heidi is finishing her M.A. coursework in Industrial/Organizational Psychology from West
Chester University. She received her B.A. in Psychology from Bloomsburg University and is a
member of the American Compensation Association. She is currently enrolled in the Certified
Compensation Professional (CCP) program.
JOHN REING
John is an Compensation Consultant in the Coopers & Lybrand L.L.P. Human Resource
Advisory Group Compensation Consulting Practice.
John has worked on various compensation projects including:
· Job Evaluation;
· Designing and Managing Salary Surveys;
· Job Classification and Definition;
· Executive Compensation Design;
· F AS 123, Accounting for Stock Based Compensation;
· Severance and Relocation Package Design;
· Team Based Pay;
· Director's Fees;
· Performance Management and Rewards; and
· Competitive Market Pricing (Nationally and Internationally).
A list of recent clients include:
· Hillsborough Community College
· Filtronic Comtek
· DentalCo
· Renal Treatment Centers
· Tasty Baking Company
· BHC Securities
· KEMA
· T-Fal Corporation
· Monroe County
· Seminole County
· Florida Department of Transportation
· Nobel Educational Dynamics
Previous to working at Coopers & Lybrand, John was a Team Leader of a survey processing unit
at the Hay Group.
10hn graduated from Allentown College with a BS in Business Administration and a Certificate
in Human Resource Management. John is an active member of the Society for Human Resource
Management, Penjerdel Employee Benefits Association and the American Compensation
Association. John is currently working towards his Certification as a Compensation
Professional.