RPVCCA_CC_SR_2014_05_14_05_RFP_Classification_Compensation_StudyCrrYOF
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
REVIEWED:
HONORABLE MAYOR & CITY COUNCIL MEMBERS b}J
SEAN ROBINSON, HUMAN RESOURCES MANAGE~
MAY 14, 2014
CLASSIFICATION I COMPENSATION STUDY-
REQUEST FOR PROPOSALS
CAROLYNN PETRU, ACTING CITY MANAGER~
RECOMMENDATION
1) Authorize Staff to release the proposed Request for Proposals (RFP) for a classification
and total compensation, including benefits, study for all full-time and part-time personnel;
and 2) Direct Staff to include $95,000 in the draft FY 14-15 budget for the study.
BACKGROUND
On July 2, 2002, City Council adopted a resolution defining the City's compensation level
for competitive and management personnel as being set at 75% of the levels identified
from the other agencies surveyed. The City of Rancho Palos Verdes last conducted a
compensation survey in 2010. This compensation survey was completed by internal Staff
using a defined sampling of other agencies. The City has not conducted a comprehensive
classification study in over 20 years, although Staff has made some classification updates,
on an individual basis, based on the needs of the City.
As an industry standard, it is a recommended practice to periodically review and update
personnel classifications and compensation levels. Given the City is currently negotiating
with the City's Employee Association, it is pertinent to determine whether the City's defined
classifications and compensation levels are set appropriately with similarly-sized and
geographically local communities.
DISCUSSION
In order to conduct a comprehensive classification and total compensation study, staff
recommends Council approve the attached Request for Proposal (RFP). Six companies
are renowned industry leaders in managing classification and compensation studies. The
5-1
Classification & Compensation Study -RFP
May 14, 2014
Page 2 of 4
companies Staff intend to contact and request submittals for the RFPs include: Becker and
Bell; CPS-HR; Fox Lawson & Associates; Public Sector Personnel Consultants; the Hay
Group; and Koff & Associates. Staff has preliminarily contacted some of these agencies
for estimates with regard to anticipated costs and timelines for the classification and
compensation study. Based on the information provided, estimates range from $65,000 to
$95,000 for a full classification and total compensation study, with the entire process
lasting approximately four months to six months.
The Scope of Services laid out in the RFP include:
Classification Plan
1. Updating the classification plan for approximately 50 classifications representing
approximately 53 full-time and 30 part-time employees as of May 2014.
2. Develop a classification structure that reflects the City's overall classification and
compensation strategy and includes the clear definition of terms and the
development of career ladders for full-time and part-time employees.
3. Review the background materials including existing classifications, organizational
charts, budgets, salary resolutions and schedules, personnel rules and related
information.
4. Conduct orientation and briefing session(s) with employees.
5. Conduct orientation and briefing session(s) with all department heads, managers
and supervisors.
6. Develop a comprehensive questionnaire to be completed by all employees.
7. Conduct interviews with all employees in single position classifications, a
representative sample of employees in multiple position classifications, and
appropriate management personnel to validate the information.
8. Allocate all employees included within the scope of the study to an appropriate job
title, job classification and exempt and non-exempt designation pursuant to the Fair
Labor Standards Act (FLSA).
9. Develop new classification specifications to reflect current duties, requirements of
the position, including physical requirements and essential job functions.
10. The classification specifications shall include the following items:
(a) A definition of the job classification;
(b) A complete description of the essential job functions;
(c) Requirements of education, experience, knowledge, skills and abilities;
5-2
Classification & Compensation Study -RFP
May 14, 2014
Page 3 of 4
(d) Supervision exercised and received with definition of lead or supervisory
roles;
(e) Working environment and/or conditions;
(f) Licenses, certifications, driving requirements and physical requirements in
compliance with the American with Disabilities Act (ADA); and
(g) Appropriate exempt and non-exempt designation under the Fair Labor
Standards Act (FLSA).
11. Present the final classification and listing showing the recommended allocation of
each position.
12. The classification plan shall include an introductory section that describes class
concepts and provides information about distinctions of various levels within a class
series and other pertinent information.
13. Provide appropriate implementation and maintenance manuals.
14. Conduct training sessions for designated staff.
Compensation Plan
1. Identify survey labor market and benchmark classes that represent most closely to
the City of Rancho Palos Verdes.
2. Conduct a comprehensive or total compensation, including benefits, survey using
comparable survey agencies, using not only job titles, but duties and responsibilities
based upon the classification specifications from the City of Rancho Palos Verdes.
3. Complete an internal salary relationship analysis, including the development of
appropriate internal relationship guidelines.
4. Develop external competitive and internal equitable salary recommendations for
each classification included within the study.
5. Assign a salary range to each classification which reflects the results of the market
survey and the analysis of the internal relationships.
6. Present draft results of the survey to management and bargaining unit in a group
meeting.
7. Assist in the development of a strategy for implementing the compensation
recommendations and plan.
8. Present the final Classification and Compensation Report to the City Council.
5-3
Classification & Compensation Study -RFP
May 14, 2014
Page 4 of 4
Staff identified specific criteria for determining the minimum qualifications of the firms
responding to the RFP:
1. The proposer has advanced knowledge of the laws and practices relating to
employee classification and compensation within a municipal government setting.
2. The proposer has a demonstrated track record of success in handling all aspects of
employee classification and total compensation and at least five (5) years of
providing these services to public entities in the State of California.
3. Each proposer shall provide all public agencies they performed relevant work for in
the past five years. When possible, include references from cities of a similar size
and characteristics to the City of Rancho Palos Verdes.
4. The proposer can demonstrate an understanding of the assignment and knowledge
of the skills necessary to serve in the role of the Classification and Compensation
Consultant.
While there were positive elements with regard to the agencies selected in the 2010
compensation survey, it was also a rather limited sampling not necessarily representative
of agencies best matching the characteristics of Rancho Palos Verdes. The expectation
for the selected professional classification and compensation firm is that, key agencies and
communities will better represent the personnel needs, geographical and community
characteristics, and professional expectations of Rancho Palos Verdes.
FISCAL IMPACT
In order to conduct the citywide classification and compensation in the most expedient
manner possible, staff recommends Council include a one-time expenditure be identified in
the FY14-15 budget. Estimates range from $65,000 to $95,000 for a full classification and
total compensation study.
ATTACHMENT:
Request for Proposal -Classification and Compensation Survey
5-4
City of Rancho Palos Verdes
Request for Proposal
Classification and Compensation Study
Due Date:
City of Rancho Palos Verdes
Human Resources Department
30940 Hawthorne Blvd, Rancho Palos Verdes, CA 90275
Phone: (310) 544-5331
5-5
CITY OF RANCHO PALOS VERDES REQUEST FOR PROPOSAL
CLASSIFICATION AND COMPENSATION STUDY
1. INTRODUCTION AND PROJECT
The City of Rancho Palos Verdes is requesting proposals for qualified professional
consulting services to conduct a city-wide classification and compensation study.
The City will select one firm, based on demonstrated competence and a cost effective
approach to design, conduct, and assist in the implementation of a city-wide
classification and compensation study.
2. BACKGROUND
The City of Rancho Palos Verdes is a scenic, upscale, residential coastal community,
with a population of 42,000, located on the Palos Verdes Peninsula of southwestern Los
Angeles County.
The City of Rancho Palos Verdes is a contract city, meaning that some services are
provided by contract with agencies (both public and private) and some services are
delivered by the City's own employees. Police and fire protection is provided by the Los
Angeles County. The County of Los Angeles also provides sanitary, sewer and other
specialized public works services, while library services are provided through a special
district. Other services provided by the City are solid waste collection, construction and
maintenance of streets and other infrastructure, planning and zoning activities,
recreational activities, and an extensive system of public parks, open space and trails.
City Government: Rancho Palos Verdes is a General Law City and has operated under
the Council-Manager form of government since incorporation in 1973. Policy-making and
legislative authority are vested in the governing City Council, which consists of five
Council Members, including the Mayor and Mayor Pro-Tern. The City Council is elected
on a non-partisan, at-large basis. Council Members are elected to four-year staggered
terms with two or three Council Members elected every two years. The Council
designates the Mayor and Mayor Pro-Tern for a one-year term The City Manager is
responsible for carrying out the policies and ordinances of the governing council, for
overseeing the day-to-day operations of the government, and for appointing the heads of
the government's departments. The City is fiscally sound and functions on an annual
budget cycle.
Labor Force: The City of Rancho Palos Verdes has 62 authorized full time positions for
FY 14-15, and its departments include an Administration Department, Finance
Department, Community Development Department, Public Works Department and a Park
and Recreation Department. Presently there is one bargaining unit that incorporates all
employees minus the management staff.
5-6
3. SITUATION
The City has not had a comprehensive classification and compensation review in over 10
years.
The City's classification plan requires an update, with class specifications that are in line
with current changes and requirements in the law. Class specifications need to be
updated to reflect current job duties and requirements of the position, including physical
requirements and essential job functions to comply the American with Disabilities Act
(ADA), in addition over the past six months, the City has realigned several positions,
resulting in the slight reorganization of several departments.
On July 2, 2002, the City Council adopted a resolution establishing salary ranges for all
competitive and management employee positions at the 75th percentile of reported data
for the cities surveyed. Since FY 2002-2003, the City adjusted the salary ranges based
on the March Consumer Price Index (CPI) to maintain its desired market position. In May
2010, Staff conducted a salary survey from a pool of 38 Southern California cities, of
which 13 cities were found to deal with similar issues and have similar organizational and
fiscal structure. The survey results indicated that Rancho Palos Verdes salary ranges
were, on average, 3.44% below the 75th percentile. Since FY 2010-2011 to present, there
have not been any adjustments made to the compensation plan.
4. SCOPE OF SERVICES REQUIRED
The City of Rancho Palos Verdes is seeking the services of a highly qualified consulting
firm to assist in:
Classification Plan
1. Updating the classification plan for approximately 50 classifications representing
approximately 54 full-time and 30 part-time employees as of April 2014.
2. Develop a classification structure that reflects the City's overall classification and
compensation strategy and includes the clear definition of terms and the
development of career ladders for full-time and part-time employees.
3. Review the background materials including existing classifications, organizational
charts, budgets, salary resolutions and schedules, personnel rules and related
information.
4. Conduct orientation and briefing session(s) with employees.
5. Conduct orientation and briefing session(s) with all department heads, managers
and supervisors.
5-7
6. Develop a comprehensive questionnaire to be completed by all employees.
7. Conduct interviews with all employees in single position classifications, a
representative sample of employees in multiple position classifications, and
appropriate management personnel to validate the information.
8. Allocate all employees included within the scope of the study to an appropriate
job title, job classification and exempt and non-exempt designation pursuant to
the Fair Labor Standards Act (FLSA).
9. Develop new classification specifications to reflect current duties, requirements of
the position, including physical requirements and essential job functions.
10. The classification specifications shall include the following items:
(a) A definition of the job classification;
(b) A complete description of the essential job functions;
(c) Requirements of education, experience, knowledge, skills and abilities;
(d) Supervision exercised and received with definition of lead or supervisory
roles;
(e) Working environment and/or conditions;
(f) Licenses, certifications, driving requirements and physical requirements in
compliance with the American with Disabilities Act (ADA); and
(g) Appropriate exempt and non-exempt designation under the Fair Labor
Standards Act (FLSA).
The consultant will coordinate the varying presentation styles of the project team
to ensure a unified philosophy and standardization across all the classifications.
11. Present the final classification and listing showing the recommended allocation of
each position.
12. The classification plan shall include an introductory section that describes class
concepts and provides information about distinctions of various levels within a
class series and other pertinent information.
13. Provide appropriate implementation and maintenance manuals.
14. Conduct training sessions for designated staff.
Compensation Plan
1. Identify survey labor market and classifications that represent most closely to the
City of Rancho Palos Verdes. This will include an explanation of the specific
methodology (i.e, articulable factors) used to identify the survey agencies.
5-8
2. Conduct a comprehensive total compensation survey using comparable survey
agencies, using not only job titles, but duties and responsibilities based upon the
classification specifications from the City of Rancho Palos Verdes.
3. Complete an internal base salary relationship analysis, including the
development of appropriate internal relationship guidelines.
4. Develop external competitive and internal equitable salary recommendations for
each classification included within the study.
5. Assign a salary range to each classification which reflects the results of the
market survey and the analysis of the internal relationships.
6. Present draft results of the survey to management and bargaining unit in a group
meeting.
7. Assist in the development of a strategy for implementing the compensation
recommendations and plan.
8. Present the final Classification and Compensation Report to the City Council.
5. QUALIFICATION AND CRITERIA
Qualifications: The City of Rancho Palos Verdes will select one firm for all the outlined
Scope of Service on the basis of qualifications, experience and cost. The following are
the minimum qualifications to be used to evaluate the responses to this Request for
Proposals:
1. The proposer has advanced knowledge of the laws and practices relating to
employee classification and compensation within a municipal government setting.
2. The proposer has a demonstrated track record of success in handling all aspects
of employee classification and compensation and at least five (5) years of
providing these services to public entities in the State of California.
3. Each proposer shall provide all public agencies they have performed relevant
work for in the past three (3) years. When possible, include references from
cities of a similar size and characteristics to the City of Rancho Palos Verdes.
4. The proposer can demonstrate an understanding of the assignment and
knowledge of the skills necessary to serve in the role of the Classification and
Compensation Consultant.
Selection Criteria: The City of Rancho Palos Verdes will conduct a comprehensive,
fair and impartial evaluation of the proposals received in response to the Request for
Proposal. All proposals received from the vendors will be reviewed and evaluated by a
committee of qualified personnel. The names, information, or experience of the
individual members will not be made available to any vendor. The Evaluation
5-9
Committee will first screen all proposals submitted, according to the minimum
qualifications set forth above. The following criteria will be used in reviewing and
comparing the proposals and in determining the highest scoring bid:
1. 40% Qualifications, background and prior experience of the firm, experience of
key staff assigned to oversee services provided to the City of Rancho Palos
Verdes, evaluation of size and scope of similar work performed and success on
those projects.
2. 30% Cost and Fees to the City of Rancho Palos Verdes for handling matters.
Cost is not the sole determining factor but will be taken into consideration.
Proposer must offer services at a rate comparable to the rate proposer offers to
other governmental agencies for similar work. Offering a higher rate to the City
of Rancho Palos Verdes than the comparable rate is grounds for disqualification
of the Proposer. If rates differ for different types or levels of service, the
Proposer should so state in their proposal.
3. 20% References including past performance of proposer.
4. 10% Responsiveness to the Request for Proposal and quality of the proposal.
6. FORMAT AND DELIVERY OF RESPONSES
Respondents are asked to submit six (6) copies of their proposals in sufficient detail to
allow for a thorough evaluation and comparative analysis. The proposal should include
at minimum, the following information in a sectionalized format addressing all phases of
work in the Request for Proposal.
Format: Limit your proposal to 20 typed 8.5" X 11" pages, or fewer, on white bond
paper, single sided (excluding cover letter and attachments). You may attach a firm
brochure if you wish, but it must be as a separate attachment and independent from the
required elements noted above.
1. Use a conventional typeface with a minimum font size of 12 points. Use a 1"
margin on all borders.
2. Organize your proposal in the order described above.
3. Provide one (1) unbound original, in addition to the six, of your firm's response
and one (1) electronic version.
4. Prominently label the package: "RFP for Classification and Compensation Study"
and include the name of the prime respondent.
Cover Letter: All proposals shall include a cover letter which states that the proposal
shall remain valid for a period not less that ninety (90) days from the date of submittal.
If the proposal contemplates the use of sub-contractors, the sub-contractors shall be
identified in the cover letter. If the proposal is submitted by a business entity, the cover
letter shall be signed by an officer authorized to contractually bind the business entity.
With respect to the business entity, the cover letter shall also include: the identification
of the business entity, including the name, address and telephone number of the
5-10
business entity; and the name, title, address and telephone number of a contact person
during the proposal evaluation period.
Introduction: Present an introduction of the proposal and your understanding of the
assignment and significant steps, methods and procedures to be employed by the
proposer to ensure quality deliverables that can be delivered within the required time
frames and your identified budget.
General Scope of Work: Briefly summarize the scope of work as the proposer
perceives or envisions it for each area proposed.
Work Plan: Present concepts for conducting the work plan and interrelationship of all
products. Define the scope of each task including the depth and scope of analysis or
research proposed.
Schedule: As time is of the essence for this assignment, recommend a schedule of
work indicating specific milestones.
Fee and Costs: Although an important aspect of consideration, the financial cost
estimate will not be the sole justification for consideration. Negotiations may or may not
be conducted with the proposer; therefore, the proposal submitted should contain the
proposer's most favorable terms and conditions, since selection and award may be
made without discussion with any firm. All prices should reflect "not to exceed" amounts
per item.
Ability of the Proposer to Perform: Provide a detailed description of the proposer
and his/her qualifications, including name(s), title(s), detailed professional resume(s),
and past experience in similar work efforts/products of key personnel who will be
working on the assignment. Provide a list of specific related work projects that have
been completed by the proposer which are directly related to the assignment described
in the Request for Proposal. Note the specific individuals who completed such
project(s). Identify the role and responsibility of each member of the project team.
Include the amount of time key personnel will be involved in the respective portions of
the assignment. Respondents are encouraged to supply relevant examples of their
professional product. Provide a list of references.
Delivery: Responses are due on or before 5:00 p.m. on . Late responses will not be
accepted. Deliver the responses to:
City of Rancho Palos Verdes
Attention: Sean M. Robinson, Human Resources Manager
30940 Hawthorne Blvd
Rancho Palos Verdes, CA 90275
If you have any questions regarding this Request for Proposal, please contact Sean M.
Robinson at (310) 544-5331.
5-11
7. ADDENDA, CHANGES, AND AMENDMENTS TO THIS SOLICITATION
At any time prior to the due date for responses, the City of Rancho Palos Verdes may
make changes, amendments, and addenda to this solicitation, including changing the
date due to allow respondents time to address such changes. Addenda, changes and
amendments, if made will be posted on the City's website (www.palosverdes.com/RPV),
which is deemed adequate notice. A proposer may make a request to the City's project
manager to be placed on a list of persons to receive notice of any such addenda, changes,
or amendments. The preferred manner of communication is via e-mail due to its
timeliness.
8. CONDITION FOR RESPONSES TO REQUEST FOR PROPOSAL
The foll.owing conditions apply to the Request for Proposal process:
A. Nothing contained in this Request for Proposal shall create any contractual
relationship between the respondent and the City of Rancho Palos Verdes.
B. This Request for Proposal does not obligate the City of Rancho Palos Verdes to
establish a list of service providers qualified as prime contractors, or award a
contract to any respondent. The City of Rancho Palos Verdes reserves the right
to amend or cancel the Request for Proposal without prior notice, at any time, at
its sole discretion.
C. The City of Rancho Palos Verdes shall not be liable for any expenses incurred by
any individual or organization in connection with the Request for Proposal.
D. No conversations or agreements with any officer, agent or employee of the City of
Rancho Palos Verdes shall affect or modify any terms of this Request for Proposal.
Oral communications or any written/e-mail materials provided by any person other
than the designated contact staff of the City of Rancho Palos Verdes shall not be
considered binding.
E. The City of Rancho Palos Verdes reserves the right, in its sole discretion, to accept
or reject any or all proposals without prior notice and to waive any minor
irregularities of defects in a proposal. The City of Rancho Palos Verdes reserves
the right to seek clarification on a proposal with any source.
F. The dates, times and sequence of events related to this Request for Proposal shall
ultimately be determined by the City of Rancho Palos Verdes. The schedule
shown above is subject to change, at the sole discretion of the City of Rancho
Palos Verdes, although the City will attempt to follow it and, if it must be altered,
will attempt to provide reasonable notice of the changes.
5-12
G. Respondents shall not issue any news release pertaining to this Request for
Proposal, or the City of Rancho Palos Verdes without prior written approval of the
City.
H. All submitted proposals and information included herein or attached thereto, shall
become public record upon delivery to the City of Rancho Palos Verdes.
9. RIGHT BY THE CITY TO WITHDRAW THIS REQUEST
The City of Rancho Palos Verdes, at its sole discretion and for any reason whatsoever,
withdraw this solicitation at any time.
10. STANDARD TERMS AND CONDITIONS
Prior to the award of any work hereunder, the City and the proposer shall enter into a
written contract attached hereto, for services. Proposers responding to this Request for
Proposal are strongly encouraged to review all the terms and conditions of the Contract.
5-13