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Department: Human Resources
Director: Victoria Huynh, J.D., Director of Human Resources
Agenda Item: Employment Engagement Services, ILA 2025-0508-I, Modification No. 1
Recommended Action: Approval of Contract Modification
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Item Summary
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To approve an increase to the current awarded contract amount of $8,100 by $11,900 for a total contract annual amount of not to exceed $20,000 and adding one-year renewals upon a mutual written agreement for employee engagement services from University of Texas at Austin for Human Resources; and authorizing the City Manager to execute all necessary documents. (Contract No. 2025-0508-I; Modification No. 1)
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Previous Action/Presentation
ILA 2025-0508-I was approved by Council on October 27, 2025.
Background
Human Resources is requesting an amendment to the existing lnterlocal Agreement with the Institute for Organizational Excellence (IOE) at the University of Texas Austin to provide flexibility for additional consulting services related to employee engagement and support the City's intent to conduct employee engagement surveys on a biennial basis under the same agreement.
As part of the organization's commitment to continually strengthen workplace culture and climate, an employee engagement survey was conducted in February 2026. The IOE successfully administered the survey and provided clear, comprehensive reporting in a timely manner. Following the presentation of the survey results to the City Manager's Office on June 16, 2026, the City Manager requested the consultant present the results to Management Team in August 2026.
Additional services (e.g., additional on-site presentations, consultation regarding action planning and implementation, and targeted pulse surveys) are needed to support implementation of the survey findings, including presentation of the results to Management Team in August 2026. Human Resources also intends to conduct employee engagement surveys every other year. Utilizing the same vendor over multiple survey cycles promotes consistency in survey methodology, question structure, benchmarking, and reporting, allowing the City to accurately measure trends in employee engagement over time and evaluate the effectiveness of organizational initiatives.
The initial agreement expires September 30, 2026, with total compensation for the term of the agreement not to exceed $8,100. Following the City Manager's request for the consultant to return in August 2026 to present the survey results to Management Team, additional funding is needed to cover these services, resulting in the need to amend the agreement at this time.
To provide flexibility for future survey cycles and related consulting services without requiring a new or amended agreement for each engagement, Human Resources is requesting an evergreen clause in the amended agreement with an annual not-to-exceed amount of $20,000. Although the full employee engagement survey is anticipated every other year, the annual not-to-exceed amount provides flexibility for presentations, consultation services, targeted surveys, and other related services that may be requested between survey cycles. Actual expenditures will be based on services utilized.
If this amendment is not approved, the City will have limited flexibility to obtain additional consulting services related to interpreting survey results, action planning, and potential future targeted surveys. In addition, conducting future employee engagement surveys through a different vendor could reduce the City's ability to make reliable comparisons over time due to differences in survey methodology, question design, and reporting.
Financial Summary/Strategic Goals
This item approves a first modification of the Interlocal Agreement with the University of Texas at Austin to provide consulting services related to employee engagement, with a not to exceed amount of $20,000 per year of the agreement. Funds are available in the Human Resources budget, and all future year expenditures will occur within council approved appropriations.
Approval of this interlocal agreement aligns with the City's Strategic Plan Critical Success Factor of being an Excellent, Innovative, and Accountable City Government.
Attachments
Agreement
Modification No. 1