Attachment C Koff and Associates Rancho Palos Verdes Class Comp Proposal 06 25 14Classification and Compensation Study Proposal
City of Rancho Palos Verdes
Classification and Compensation
Study Proposal
City of Rancho Palos Verdes
Submittal Date: June 30, 2014
Koff & Associates
Georg Krammer
Chief Executive Officer
6400 Hollis Street, Suite 5
Emeryville, CA 94608
www.koffassociates.com
E: gkrammer@koffassociates.com
P: 510.658.5633
T: 800.514.5195
F: 510.652.5633
June 26, 2014
Mr. Sean Robinson
Human Resources Manager
City of Rancho Palos Verdes
30940 Hawthorne Blvd.
Rancho Palos Verdes, CA 90275
Dear Mr. Robinson:
Thank you for the opportunity to respond to your request for proposals for a Classification and
Compensation Study for the City of Rancho Palos Verdes. We are most interested in assisting the
City with this important project and feel that we are uniquely qualified to provide value to your
organization based on our experience working with other cities and public agencies throughout
California.
Koff & Associates is an experienced Human Resources consulting firm that has been providing
classification and compensation consulting services to cities, counties, special districts, courts,
educational institutions, and other public agencies for over thirty years. The firm is a woman-
owned California small business corporation and has achieved a reputation for working
successfully with management, employees, and union representatives. We believe in a high level
of dialogue and input from study stakeholders and our proposal speaks to that level of effort. That
extra effort has resulted in close to 100% implementation of all of our classification and
compensation studies.
As Chief Executive Officer of the firm, I would assume the role of Project Director and be
responsible for the successful completion of each project. I can be reached at the Emeryville
address and phone number listed below. My email is gkrammer@koffassociates.com.
This proposal will remain valid for ninety (90) days from the date of submittal. Please call if you
have any questions or wish additional information. We look forward to the opportunity to provide
continued professional services to the City of Rancho Palos Verdes.
Sincerely,
Georg Krammer
Chief Executive Officer
6400 Hollis Street, Suite 5
Emeryville, CA 94608
510.658. KOFF (5633)
Classification and Compensation Study Proposal
City of Rancho Palos Verdes
Table of Contents
Section 1 – Introduction 1
Section 2 – Scope of Work 2
Section 3 – Work Plan 3
Section 4 – Schedule 11
Section 5 – Fee and Costs 12
Section 6 – Consulting Firm Qualifications 15
Signature Page
Attachment 1: Koff & Associates Resumes
Attachment 2: Example of Work
Classification and Compensation Study Proposal
City of Rancho Palos Verdes
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SECTION 1 – INTRODUCTION
The City of Rancho Palos Verdes desires human resources consulting assistance to conduct objective
job evaluation, classification review, and development of compensation systems for all of its full-
time and part-time positions in order to make recommendations regarding the appropriateness,
internal equity, and external competitiveness of the City’s classification and compensation plans.
The City currently has fifty-four (54) full-time and thirty (30) part-time employees allocated to
approximately fifty (50) classifications.
The study’s purpose is to initially develop an updated and well -structured classification system
and classification descriptions for all study positions that are legally compliant (including Fair
Labor Standards Act (FLSA) and Americans with Disabilities Act (ADA) requirements), internally
aligned, reflective of contemporary standards, and accurately reflect current roles, responsibilities,
duties, and qualifications. The classification analysis process includes orientation and briefing
sessions with employees, management, Human Resources, and other stakeholders, as appropriate;
the completion of a position description questionnaire by employees; interviews with at least a
representative sample of employees in each study classification; and interviews with supervisors
and management to address any classification issues. All participating employees will be allocated
to an appropriate classification and draft classification descriptions will be developed and sent
back to the City and incumbents for additional feedback and concurrence.
A second level of effort will be to review the City’s compensation structure for the studied
classifications and to conduct a base compensation market survey using a set of appropriate
comparator agencies. The identification of comparator agencies and benchmark classifications is an
iterative process that includes all stakeholders. We have found this open discussion philosophy to
be critical to our success for organizational buy-in. Once the external data development is
completed, we will make specific recommendations for internal equity for non-benchmarked
positions and positions without a large enough market sampling.
The compensation study will contain specific recommendations regarding a well-structured
compensation system and the integration of all study classifications into a clearly designed,
internally equitable format that is flexible for career opportunity and future growth. Our study will
make recommendations regarding a salary structure that takes the City’s compensation preferences
into consideration and regarding the appropriate placement of each classification on that salary
schedule.
The study includes a significant number of meetings with the Study Project Team, management,
human resources, employees, employee representation, and the City Council. We have expertise
in labor/management relations and understand the importance of active participation by all
stakeholders to ensure a successful outcome. The meetings and “stakeholder touch-points” that
we recommend ensure understanding of the project parameters, enhance accurate intake and output
of information, and improve a collaborative and interactive approach that will result in greater
buy-in for the study recommendations. This interactive approach, although time-consuming, has
resulted in almost 100% implementation success of K&A’s studies.
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SECTION 2 – SCOPE OF WORK
Classification Objectives
To analyze and update the City’s classification system and each study position’s classification
description through a comprehensive process of job analysis and evaluation, including review of
existing documentation, position description questionnaire completion, employee interviews,
management interviews, analysis of existing positions and working situations, analysis of levels
of duties and responsibilities, and other professional methods, as appropriate;
To recommend each study position for title change or reclassification (as appropriate), create
new classifications (if applicable), eliminate outdated classifications (if applicable), and
consolidate classifications assigned to similar functional areas (as appropriate);
To provide for growth and flexibility of assignment within the new classification structure in
recognition that job duties and responsibilities may evolve over time, as well as adequate career
paths and class series/job families that will foster career service within the City;
To clearly state definitions of job classifications, the essential functions, and minimum
requirements and preferred requirements such as education, prior work experience, knowledge,
skills, abilities, and physical requirements;
To provide a classification structure that ensures regulatory compliance, including allocation
of each selected study position to the correct classification with appropriate FLSA designation,
as well as, meeting Federal ADA regulations;
To provide for adequate educational, review, and appeal processes that will result in a product
that is understood by all levels of personnel and is internally equitable; and
To ensure sufficient documentation and training throughout the study, including class
concepts, distinguishing characteristics, and final reports and recommendations to guide the
organization in implementing, managing, and maintaining the classification system.
Compensation Objectives
To make recommendations regarding appropriate comparator agencies, benchmark classes,
and benefits to be collected prior to beginning the compensation portion of the study;
To collect accurate salary and benefits data from the approved group of comparator agencies
and to ensure that the information is analyzed in a manner that is clear and comprehensible to
Human Resources, management, the Study Project Team, and employees;
To carefully analyze the scope and level of duties and responsibilities, requirements for
successful work performance, and other factors for survey classes according to generally
accepted compensation practices;
To review the City’s compensation structure and practices, recommend changes as appropriate,
and develop a compensation plan that will assist the City to recruit, motivate, and retain
competent staff;
To develop solutions to address pay equity issues, analyze the financial impact of addressing
pay equity issues, and create a market adjustment implementation strategy supporting the
organization’s goals, objectives, and budget considerations;
To evaluate benefit offerings in the labor market and make recommendations for better
alignment and/or different benefit offerings as indicated by the analysis and best practices;
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To create an inclusive final report summarizing the administrative and process methodologies,
analytical tools, findings, and recommended compensation structure;
To recommend appropriate internal salary relationships and allocate classes to salary ranges in
a comprehensive salary range plan; and
To ensure sufficient documentation and training throughout the study so that our
recommendations can be implemented and maintained in a competent and fair manner.
Overall Objectives
To review and understand all current documentation, rules, regulations, policies, procedures,
budgets, class descriptions, organizational charts, memoranda of understanding, personnel
policies, wage and salary schedules, and related information so that our recommendations can
be operationally incorporated with a minimum of disruption;
To conduct start-up Study Project Team meetings with management, study project staff, and
other stakeholders to discuss any specific concerns with respect to the development of
classification and compensation plans; finalize study plans and timetables; conduct employee
orientation sessions with management and staff in order to educate and explain the scope of
the study and describe what are and are not reasonable study expectations and goals;
To work collaboratively and effectively with the City and its stakeholders while at the same
time maintaining control and objectivity in the conduct of the study;
To develop a classification and compensation structure that meets all legal requirements, is
totally non-discriminatory, and easily accommodates organizational change and growth;
To document all steps in the process and provide documentation and training for Human
Resources and other staff, ass appropriate, in classification and compensation analysis
methodologies so that the City can integrate, maintain, administer, and defend any
recommended changes after the initial implementation; and
To provide effective ongoing communications throughout the duration of the project and
continued support after implementation.
SECTION 3 – WORK PLAN
This section of the proposal identifies the actual work plan. We hope that our detailed explanation
of methodology and work tasks clearly distinguishes our approach and comprehensiveness.
Our approach is to complete the classification and job evaluation before completing the
compensation review. The reasons for this include:
The description of the work performed and the requirements for that work are, in the minds of
the employees and their supervisors, inextricably associated with the “worth of that work” or
compensation, which is often a highly emotional issue. Separating the two phases of the study,
even though elements of phases may be conducted concurrently, tends to produce more
objective classification results.
The compensation review will be completed when there is a full understanding of the work of
the City, thereby ensuring that the data developed from the labor market and City
classifications is accurate.
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PHASE I: CLASSIFICATION STUDY
A. INITIAL DOCUMENTATION REVIEW/MEETINGS WITH STUDY PROJECT TEAM
This phase includes identifying the client Study Project Team (Human Resources, management, and
other staff, as appropriate), contract administrator, and reporting relationships. Our team will
conduct an orientation and briefing session with the Study Project Team to explain process and
methodology; create the specific work plan and work schedule; identify subsequent tasks to be
accomplished; reaffirm the primary objectives and specific end products; determine deadline dates
for satisfactory completion of the overall assignment; determine who will be responsible for
coordinating/scheduling communications with employees, management, and other City
stakeholders; and develop a timetable for conducting the same.
Included in this task will be the gathering of documentation, identifying current incumbents, and
assembling current class descriptions, organizational charts, salary schedules, budgets,
memoranda of understanding, personnel policies, previous classification and compensation
studies, and any other relevant documentation to gain a general understanding of City operations.
City terminology and methods of current classification and compensation procedures, as well as
the written questionnaire instrument for the classification study that will be used in the job analysis
phase will be reviewed and agreed to. We will discuss methodology and agree to a class
description, as well as, compensation format and identify appropriate comparator agencies,
benchmark classifications to be surveyed, and benefits to be collected for compensation survey
purposes. We will respond to questions.
B. ORIENTATION MEETINGS WITH EMPLOYEES AND DISTRIBUTION OF PDQ
The Position Description Questionnaire (PDQ) will be discussed with the Study Project Team and
customized as needed to meet the study objectives prior to distributing copies to employees. We
will facilitate orientation meetings with employees and distribute the PDQ to start the classification
portion of the study. While these meetings are not mandatory, they form the beginning of the
educational process that continues throughout the study. We will discuss the importance of the
employees’ involvement in the study and their participation in PDQ completion and job analysis
interviews. Project processes will be explained, expectations will be clarified, and elements that
are not a part of the study will also be covered. Questions will be answered and a detailed
explanation and examples for completing the PDQ will be given. PDQs shall be handed out with
the incumbent’s current class description attached to the questionnaire so employees can u se this
as a tool for completing the questionnaire.
C. POSITION DESCRIPTION QUESTIONNAIRE COMPLETION & REVIEW
Depending how large the employee group that each study includes, we recommend giving
employees in the same classification the option of collaborating on completing a PDQ together, if
the employees so choose. At the same time, we will invite employees to complete an individual
PDQ if they prefer and if they want to be interviewed separately.
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Although we provide an electronic version of our questionnaire so that employees can more easily
complete it, we require a hardcopy with signatures affixed before we can begin the evaluation
process. Employees complete the questionnaire and then send it to their supervisor for review,
comment, and signature. Upon receipt of the PDQs in our office, they will be reviewed and
analyzed in detail along with other documentation to obtain an understanding of the duties and
responsibilities assigned to each position. Interview questions for the employees will be developed
based upon the results of the documentation review. Follow-up audits will be scheduled to further
clarify information documented on the PDQs.
D. EMPLOYEE/SUPERVISOR/MANAGEMENT INTERVIEWS
Interviews will be scheduled with employees. Because this is a critical step in the information -
gathering and educational process, we recommend interviewing at least a representative sample of
employees in each classification. Interviews will then be held with supervisory and management
staff, who will clarify their own responsibilities and/or confirm the information we have received
in the interviews with their staff. We allow more time for these interviews.
The purpose of the interviews is to clarify and supplement the questionnaire data and to respond
to potential perception differences regarding roles, tasks, scope, and supervisory responsibilities.
E. CLASSIFICATION CONCEPT/PRELIMINARY ALLOCATION DEVELOPMENT
Prior to developing detailed class descriptions, our job evaluation will result in a classification plan
concept and employee allocation document that will be submitted to the City for review and
approval. We will compare changes in business need and operations, as well as any re -
organizations, with the established classification system and job families, as well as, review
internal relationships between classifications. Our job analysis method is the whole position
analysis approach. Objective factors in the whole position classification methodology include:
1. Education, Training, and Certifications/Licenses
2. Experience
3. Problem Solving/Ingenuity
4. Attention/Stress (Concentration/Time Pressure & Interruptions)
5. Independence of Action/Responsibility
6. Contacts with Others/Internal/External
7. Supervision Received and/or Given to Others
8. Consequences of Action/Decisions Made on the Job
9. Working Conditions
10. Physical/Mental Demands
This deliverable will list broad class concepts and highlight where significant changes may be
recommended, such as expanding or collapsing class series in the same functional area and/or
separating or combining classifications assigned to different functional areas. We will review and
analyze current classification series, the number of classifications and classification levels, and
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career ladders. We will also review and update established titling guidelines for the studied
classifications for appropriate and consistent titling.
A detailed, incumbent-specific allocation list for each position included in the study will be
prepared, specifying current and proposed classification title and the impact of our
recommendations (reclassification – upgrade or downgrade, title change, or no change). After we
have completed this process, a meeting will be arranged to review any recommended changes to
the classification plan with the Study Project Team.
F. DRAFT CLASS DESCRIPTION DEVELOPMENT/UPDATE
After preliminary approval of the class concepts and allocation lists, new and/or updated class
descriptions will be developed for each proposed classification, following the format approved by
the City. We have a standard classification format but are flexible to use a different format.
From the review of the PDQs and employee interviews, we will update duties, responsibilities, and
minimum qualifications of each class specification, as necessary, or develop new class
specifications if duties, responsibilities, and minimum qualifications have changed significantly,
we recommend new classifications/class levels, and/or operational changes, business needs, and
any re-organizations require new classifications.
We will review, analyze, and update, as appropriate, knowledge, skills, abilities, education and
experience, relevance and hierarchical consistency, position definitions, purpose, distinguishing
characteristics, supervision received and exercised, position functions and special requirements
including licensing and certification requirements. We will also review and update the physical
demands based on the essential job functions of each classification in accordance with the
Americans with Disabilities Act (ADA). Finally, we will review each classification’s essential job
functions and determine exempt vs. non-exempt status in accordance with “white collar”
exemptions under the Fair Labor Standards Act (FLSA).
G. DRAFT CLASS DESCRIPTION REVIEW/INFORMAL APPEAL PROCESS
A draft copy of the revised/new class description with allocation recommendation will be
submitted to the Project Team and subsequently to each manager, supervisor, and employee, to
give each stakeholder group an opportunity to provide comments and concerns regarding any
modifications to the classification structure and specifications. Our experience has been that this
is one of the most critical phases of the project (but also one of the most time-consuming). Our
proactive and effective communication process at this crossroad has always avoided formal
appeals, adversarial meetings, or major conflicts at the conclusion of the study.
Each employee whose position was studied will receive a memorandum from us outlining what
has been accomplished, how to best review the draft classification specification that will be
attached, and how to provide feedback to us. Supervisors and managers receive a copy of their
employees’ draft class descriptions and will be asked to review their employees’ comments and
feedback to verify and concur with the information provided.
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Each memo will have two options for the employee’s signature: one line is reserved for employees
who have read and agree with their draft class description; the other line is reserved for employees
who have read the draft class description and disagree with certain parts, want to make changes,
want to add or delete information, or have general questions about the description and/or the
process.
Employees shall submit their written concerns (via their supervisor/manager) to our office. While
employees may not always agree with our recommendations, they have a “second chance” to
ensure that they have been heard and to continue the educational process regarding why specific
recommendations were made.
Significant employee comments will be reviewed with management prior to making any
significant changes to the proposed class plan. These discussions will be by email, telephone, or
additional direct personal contact with employees, depending upon the extent of the response.
Allocation and/or class description changes will be made as required and the class specifications
will be finalized and submitted for approval. All employees who submitted their comments during
the review process will be notified in writing regarding the outcome of their concerns.
H. FINALIZE CLASSIFICATION PLAN/DRAFT INTERIM REPORT/FINAL REPORT
A Draft Interim Report of the Classification Study will be completed and submitted to the City for
review and comment. The report will contain a recommended classification plan; a classification
implementation and maintenance manual, including documentation regarding study goals and
objectives, classification methodology, approach, and process, as well as, all findings, analysis,
and resulting recommendations; the recommended allocation list, classification title changes, job
family and career ladder/ career growth issues, reporting relationships, and other factors will all
be included; and classification concepts and guidelines, as well as, distinguishing characteristics
and other pertinent information for implementation and continued maintenance of the Plan will be
detailed.
Once we have received the City’s comments regarding the Draft Interim Report and have made
any necessary changes, a Final Classification Report will be developed. Finally, we will conduct
comprehensive training sessions for key staff regarding classification and job analysis
methodologies and approaches.
PHASE II: COMPENSATION STUDY
A. IDENTIFY COMPARATOR AGENCIES, BENCHMARK CLASSIFICATIONS, AND BENEFITS TO
BE COLLECTED
During the initial meeting with the Study Project Team, we will discuss the compensation study
factors that need to be agreed upon. We will identify appropriate comparator agencies that will be
included in the external market survey, which will be the foundation of ensuring that the City’s
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salaries for the studied classifications are competitively aligned with the external labor market.
We will also identify those classifications that will be surveyed in the market (i.e., benchmark
classifications), with the intention of internally aligning the remaining classifications with those
that were surveyed. Finally, we will determine the list of benefits that the City wants to be included
in the total compensation data gathering process.
1. Determination of Comparator Agencies
The selection of comparator agencies is considered a critical step in the study process. Using the
following factors to identify appropriate comparators, we will receive approval before proceeding
with the compensation survey. Our recommended methodology is that we involve the Study
Project Team, Human Resources, management, employees, and the City Council in the decision-
making process of agreeing as to which agencies are included, PRIOR to beginning the study.
Our experience has shown that this is the most successful approach. The factors that we review
when selecting and recommending appropriate comparator agencies include:
Organizational type and structure – While various organizations may provide overlapping
services and employ some staff having similar duties and responsibilities, the role of each
organization is somewhat unique, particularly in regard to its relationship to the citizens it
serves and level of service expectation. During this iterative process, the City’s
current/previous list of comparators and the advantages/disadvantages of including them/
others will be discussed.
Similarity of population served, City demographics, City staff, and operational and capital
improvement budgets – These elements provide guidelines in relation to resources required
(staff and funding) and available for the provision of services.
Scope of services provided – While having an organization that provides all of the services at
the same level of citizen expectation is ideal for comparators, as long as the majority of services
are provided in a similar manner, sufficient data should be available for analysis.
Labor market – The reality of today’s labor market is that many agencies are in competition
for the same pool of qualified employees. No longer do individuals necessarily live in the
community they serve. Therefore, the geographic labor market area (where the City may be
recruiting from or losing employees to) will be taken into consideration when s electing
potential comparator organizations.
Cost of living – The price of housing and other cost-of-living related issues are some of the
biggest factors in determining labor markets. We will review overall cost of living of various
geographic areas, median house prices, and median household incomes to determine the
appropriateness of various potential comparator agencies.
We typically recommend using ten to twelve (10-12) comparator agencies for all classifications,
but we are flexible to use a different model based on the City’s preference.
2. Determination of Benchmark Classifications
“Benchmark classes” are normally chosen to reflect a broad spectrum of class levels. In addition,
those that are selected normally include classes that are most likely to be found in other similar
agencies, and therefore provide a sufficient valid sample for analysis. Internal relationships will
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be determined between the benchmarked and non-benchmarked classifications and internal equity
alignments will be made for salary recommendation purposes. Because we find that the labor
market typically yields reliable data, we recommend using about 60%-65% of all classifications
as benchmarks but are flexible to use a different model.
3. Determination of Salary and Benefits Data to Be Collected
In addition to base salaries, benefit data elements normally include at least the following, which
are generally available to all staff in a specific job classification: Employee Retirement, Retiree
Healthcare cost, Health, Dental, Vision, Life, Long-Term Disability, Short-Term Disability,
Employee Assistance Program (EAP), and other insurance coverage, Vacation, Holidays,
Administrative/Personal Leave, Deferred Compensation, Auto Allowance, and other benefits that
the City wants to add.
B. DATA COLLECTION
Our firm does not collect market compensation data by merely sending out a written questionnaire.
We find that such questionnaires are often delegated to the individual in the department with the
least experience in the organization and given a low priority. We conduct all of the data collection
and analysis ourselves to ensure validity of the data and quality control. This approach also ensures
that we compare job description to job description and not just job titles, therefore ensuring true
“matches” of at least 70%, which is the percentage we use to determine whether to include a
comparator classification or not. As mentioned above in Classification Phase, Section D, our job
analysis method is the whole position analysis approach.
We typically collect classification descriptions, organization charts, salary schedules, personnel
policies, MOUs, and other information via website, by telephone, or by an onsite interview. With
the prior knowledge from the data gathered directly from each comparator agency and our
experience in the public sector human resources field, our professional staff makes preliminary
“matches” and then schedules appointments by telephone, and sometimes in person, with
knowledgeable individuals to answer specific questions. We find that the information collected
using these methods has a very high validity rate and is generally substantiated by employees,
management, as well as governing bodies.
C. ANALYSIS AND PRELIMINARY DATA REVIEW
Data will be entered into spreadsheet format designed for ease of interpretation and use. The
information will be presented in a format that will identify the comparator positions used for each
classification comparison. Information will be calculated based upon both average and median
figures allowing the City to make informed compensation decisions. In addition, we will include
any type of statistical representation and analysis that the City desires such as 60 th, 70th, or any
other percentiles.
Benefit data will be displayed in an easy-to-read format. You will receive three sets of
spreadsheets per classification, one with base pay, one with the benefits detail, and one with total
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compensation statistical data. In addition, we are often asked to collect “other” benefits (as listed
in the benefits section above), which we typically report on a separate spreadsheet.
D. DRAFT COMPENSATION FINDINGS/ADDITIONAL ANALYSIS/ PROJECT TEAM MEETING
We distribute our draft findings to the City. After the City’s preliminary review, K&A will meet
with the Study Project Team and other stakeholders (including management, employees, and
Human Resources, as well as employee representation) to clarify data, to receive requests for
reanalysis of certain comparators, and to answer questions and address concerns. This provides
an opportunity for the Study Project Team and other stakeholders to review and question any of
our recommended benchmark comparator matches.
Depending on the City’s preference, this process can be structured similarly to the informal appeals
process for the classification portion of the study. We will disseminate the compensation
information with an explanation in memo format attached and receive written comments from
employees (via their supervisor/manager) to our office. If questions arise, we conduct follow-up
analysis to reconfirm our original analysis and/or make corrections as appropriate.
E. INTERNAL RELATIONSHIP ANALYSIS/INTERNAL ALIGNMENT
To determine internal equity for all studied positions, considerable attention will be given to this
phase of the project. It is necessary to develop an internal position hierarchy based on the
organizational value of each classification. We will make recommendations regarding vertical
salary differentials between classes in a class series, as well as across departments. This analysis
will be integrated with the results of the compensation survey.
The ultimate goal of this critical step of the process is to address any potential internal equity issues
and concerns with the current compensation system, including compaction issues between certain
classifications. We will create a sound and logical compensation structure for the various levels
within each class series, so that career ladders are not only reflected in the classification system
but also in the compensation system, with pay differentials between levels that allow employees
to progress on a clear path of career growth and development. Career ladders will be looked at
vertically, as well as, horizontally to reflect the classification structure that was developed during
the classification phase of the study.
F. COMPENSATION STRUCTURE AND IMPLEMENTATION PLAN DEVELOPMENT
Depending on data developed as a result of the internal analysis, we will review and make
recommendations regarding internal alignment into the City’s salary structure. We will develop
recommendations for pay grades and salary ranges for all classifications based on median and/or
mean salaries from the comparable agencies based on the City’s overall compensation philosophy
and policy.
We will conduct a competitive pay analysis using the market data gathered to assist in the
determination of external pay equity and the recommendation of a new base compensation level
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for each classification studied. We will conduct a comparative analysis to illustrate the
relationships between current pay practices and the newly determined market conditions and
develop solutions to address pay equity issues, analyze the financial impact of addressing pay
equity issues, and create a market adjustment implementation strategy supporting the City’s goals,
objectives, and budget considerations.
Finally, we will evaluate benefit offerings in the labor market, if desired, and make
recommendations for better alignment and/or different benefit offerings as indicated by the
analysis and best practices.
Draft recommendations will be discussed with the Study Project Team and management for
discussions and decisions on overall pay philosophy and the practicality of acceptance and prior
to developing an Interim Report.
G. PREPARATION OF DRAFT FINAL AND FINAL REPORT AND DELIVERABLES
Volume II (Draft Interim Report of the Compensation Study) will be completed and submitted to
the Study Project Team for review and comment. The report will provide detailed compensation
findings, documentation, and recommendations. The report will include a set of all market data
spreadsheets; proposed Salary Range/Plan document; manual of instructions and training materials
regarding the administration of the proposed compensation system; implementation issues and cost
projections surrounding our recommendations; and a guide for rules, policies and procedures for
the City in implementing, managing and maintaining the compensation system.
Once all of the City’s questions/concerns are addressed and discussed, a Final Classification and
compensation Report will be created and submitted in bound format. The Final Report will
incorporate any appropriate revisions identified and submitted during the review of the draft report.
H. FINAL PRESENTATION
Our proposal includes multiple meetings and conference calls and weekly oral and/or written
status/progress updates to the Study Project Team. We will also be prepared to develop and present
our reports and future impacts of any recommended changes to the Study Project Team, Human
Resources, as well as, other City management staff, if desired.
SECTION 4 – SCHEDULE
Our professional experience is that comprehensive classification and compensation studies of this
scope and for this size organization take approximately four (4) months to complete, allowing for
adequate position description questionnaire completion, interview time, classification description
development, compensation data collection and analysis, review steps by the City, the
development of final reports, any appeals, and presentations. The following is a suggested timeline
based on a contract award by late July, 2014:
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Date of
Completion By
PHASE I: Classification Study 2014
A. Initial Document Review/Meetings with Study Project Team August 1
B. Orientation Meetings with Employees and Distribution of PDQ August 1
C. Position Description Questionnaire Completion and Review August 22
D. Employee/Supervisor/Management Interviews August 29
E. Classification Concept/Preliminary Allocation Development September 5
F. Draft Class Description Development/Update October 3
G. Draft Class Description Review/Informal Appeal Process October 17
H. Finalize Classification Plan/Draft Interim Report/Final Report October 31
PHASE II: Compensation Study
A. Identify Comparator Agencies, Benchmark Classes, and Benefits
to Be Collected
August 29
B. Compensation Data Collection October 24
C. Analysis and Preliminary Data Review October 31
D. Draft Compensation Findings/Additional Analysis/Study Project
Team Meeting
November 7
E. Internal Relationship Analysis/Internal Alignment November 14
F. Compensation Structure and Implementation Plan Development November 14
G. Development of Draft Final and Final Report and Deliverables November 21
H. Final Presentation As Scheduled
SECTION 5 – FEES AND COSTS
We have found that, often times, our proposals address a very high level of time commitment,
which sometimes results in a higher proposal cost. We believe that our methodology and
implementation success rate is attributable to the significantly greater level of contact we have
with the City’s Study Project Team, Human Resources, employees, employee representation, and
management. The time we commit to working with the employees [Study Project Team meetings,
orientations and briefings, meetings with employees via personal interviews, informal appeal
process, etc.] results in a significantly greater buy-in throughout the process and no formal appeals
at the end of the study.
In fact, our firm has never had a formal appeal to any of our studies in over thirty years. It has
been our experience that the money and time invested in stakeholder touch-points throughout the
study are money and time saved during implementation. Numerous times our firm has been hired
after an agency has gone through an unsuccessful classification and/or compensation study whose
results were rejected or appealed and whose implementation was very controversial. The result
was a divided organization with hostility and animosity between employees/employee
Classification and Compensation Study Proposal
City of Rancho Palos Verdes
13
representation and management. Every time our firm was hired after such a bad experience, study
stakeholders were amazed at our open and all-inclusive process, our efforts to elicit equal
stakeholder input, and our development of recommendations that were accepted as fair and
reasonable and understood by employees, management, employee representation, and the
governing body. Our success rate is also attributable to the fact that we have almost thirty years
of experience working with employees of all types of backgrounds, educational levels, and work
experiences and are accustomed to successfully communicate with and educate them throughout
the process. It is imperative that all employees eventually buy into the study results and
recommendations, whether they have been through a process like this before or whether this is
their first time.
In these economic times, the tendency may be to select the firm with the lowest cost proposal but
it has been our experience that ultimately the price can be much higher considering the additional
time and lost goodwill that can result from utilizing a less involved process.
Our clients always provide feedback that our process was professional, comprehensive,
understandable, timely, and inclusive. Employees, although not necessaril y always happy with
our recommendations, have always indicated that we listened to their issues and concerns and were
available for discussion, as required. Although time consuming, we also drive the process to
ensure that timelines are met and schedules are maintained.
We want to emphasize that we provide an all-inclusive lump-sum cost amount for the entire study
and do not believe in under-pricing the effort or change orders along the way, unless the City
requests an obvious and identifiable additional level of effort. However, we’re also aware that
budgets are often limited and that public agencies must be economically conservative.
For cost comparison purposes, our cost proposal includes two options (please see below). Of
course, we are flexible to negotiate a combination of these two options or a different scope of work
based on what the City’s preferences are. We understand that this study is a significant effort that
will take a substantial amount of time and consultant dollars. We hope to be ab le to negotiate a
final scope of work that will satisfy the City and accomplish what needs to be done while being as
economical as possible.
Option 1 Option 2
PHASE I: Classification Study Hours Hours
A. Initial Document Review/Meetings with Study Project Team
and HR/Management Staff
8 8
B. Orientation Meetings with Employees and Distribution of PDQ 8 8
C. Position Description Questionnaire Completion & Review
Option 1: One individual PDQ per employee
Option 2: One PDQ per classification plus 20% of employees
submitting individual PDQs
25 20
D. Employee/Supervisor/Management Interviews 50 35
Classification and Compensation Study Proposal
City of Rancho Palos Verdes
14
Option 1: One interview per employee
Option 2: One group interview per classification plus
individual interviews for 20% of employees
E. Classification Concept/Preliminary Allocation Development 10 10
F. Limited Class Description Update (approx. 45 classifications) 115 115
G. Draft Class Description Review/Informal Appeal Process 16 16
H. Finalize Classification Plan/Draft Interim Report/Final Report 12 12
Total Professional Hours 244 224
Combined professional and clerical composite rate: $108/Hour $26,352 $24,192
PHASE II: Compensation Study
A. Identify Comparator Agencies, Benchmark Classifications,
Benefits to Be Collected
10 10
B. Compensation Data Collection
Option 1: 28 benchmarks, 12 comparator agencies
Option 2: 26 benchmarks, 10 comparator agencies
70 55
C. Analysis and Preliminary Data Review
Option 1: 28 benchmarks, 12 comparator agencies
Option 2: 26 benchmarks, 10 comparator agencies
35 25
D. Draft Compensation Findings/Additional Analysis/Project
Team Meeting
16 12
E. Internal Relationship Analysis/Internal Alignment 8 8
F. Salary Structure Recommendation Development 8 8
G. Development of Draft Final and Final Report and Deliverables 12 12
H. Final Presentation to the Project Team and City Council 8 8
Additional meetings with study Project Team, employees,
and/or other stakeholders
4 4
Total Professional Hours 171 142
Combined professional and clerical composite rate: $108/Hour $18,468 $15,336
Expenses: $3,000 $2,750
Expenses include but are not limited to duplicating documents,
binding reports, phone, fax, supplies, postage, air fare, rental
cars, hotels, per diem, etc.
TOTAL LUMP SUM FOR PROJECT NOT TO EXCEED: $47,820 $42,278
*Additional consulting will be honored at composite rate
($108)
Classification and Compensation Study Proposal
City of Rancho Palos Verdes
15
SECTION 6 – CONSULTING FIRM QUALIFICATIONS
Koff & Associates is a majority woman-owned public sector human resources consulting firm
that was founded in 1984 and has been assisting cities, counties, special districts, other public
agencies, and non-profit organizations for over 30 years. Our headquarters are located in
Emeryville, CA and we have satellite offices in San Diego and Brea, CA. We are a State-certified
small business enterprise and a locally certified Very Small Business Enterprise in Alameda
County.
We are familiar with the various organizational structures, agency missions, operational and
budgetary requirements, and staffing expectations. We have extensive experience working in both
union and non-union environments (including serving as the management representative in meet &
confer and negotiation meetings), working with Boards of Trustees, City Councils, Boards of
Supervisors, Merit Boards, Joint Power Authorities, and Boards of Directors.
The firm’s areas of focus are compensation and classification studies (approximately 70% of our
workload); organizational development/assessment studies; performance management and
incentive compensation programs; development of strategic management tools; policy/procedure
development and employee handbooks; executive search and staff recruitments; public agency
consolidations and separations; Human Resources audits; and serving as off-site Human Resources
Director for our smaller public agencies that need the expertise of an Human Resources Director
but do not need a full-time, on-site professional.
Without exception, all of our classification and compensation studies have successfully met all of
our intended commitments; communications were successful with employees, supervisors,
management, and employee representatives; and we were able to assist each agency in successfully
implementing our recommendations. All studies were brought to completion within stipulated
time limits and proposed budgets.
The firm’s growing list of clients is indicative of its reputation as being a quality organization that
can be relied upon for producing comprehensive, sound and cost-effective recommendations and
solutions. Koff & Associates has a reputation for being “hands-on” with an ability and expertise
to implement its ideas and recommendations through completion in both union and non-union
environments.
Koff & Associates relies on our stellar reputation and on the recommendations and referrals of
current clients to attract new clients. Our work speaks for itself and our primary goal is to provide
professional and technical consulting assistance with integrity, honesty, and a commitment to
excellence. The fact that we have not had any formal appeals in almost thirty years, working with
hundreds of public agency clients and completing hundreds of classification and compensation
studies, is something we are very proud of.
Previous/Current Project Experience
The following list of projects includes current and previous studies. We’d like to mention that we are
also in the midst of conducting a compensation study for the City of Santa Barbara.
Classification and Compensation Study Proposal
City of Rancho Palos Verdes
16
Project Name Client Name and Contact
Information
Scope of
Work
Project Cost Time Period
City-wide
classification and
compensation
study.
City of Orange
Contact: Mr. Stephen Pham
Human Resources Director
(714) 744-7200
E-mail: spham@cityoforange.org
Classification
study for all
non-safety
positions.
$90,000 End of 2007 to
summer of
2008.
City-wide
classification and
total compensation
study.
City of Sausalito
Contact: Mr. Charlie Francis
Dir. of Administrative Services/
Treasurer
(415) 289-4105
E-mail:
cfrancis@ci.sausalito.ca.us
Classification
and
compensation
study for all
City
classifications
$41,500 December 2011
to May 2012
Compensation
study.
City of Compton
Contact: Mr. Mario Beas
Interim Human Resources
Director
(310) 605-5635
E-mail: mbeas@comptoncity.org
Base
compensation
study for
represented
classifications;
5 reclass
studies
$25,000 April to June
2014
Classification and
Compensation
Study.
City of Anaheim
Contact: Ms. Belen Ramirez
Senior Class & Comp Analyst
(714) 765-5159
E-mail: BRamirez@anaheim.net
Classification
and total comp
study for
Library
Services
Department
$22,000 July 2013 to
current.
Various
compensation
study projects.
City of Palo Alto
Contact: Ms. Sandra Blanch
Assistant Director, Human
Resources
(650) 329-2376
Fax (650) 329-2696
E-mail:
Sandra.blanch@cityofpaloalto.org
Management,
Professional,
Confidential
Unit
compensation
Study;
other comp
studies.
Approx.
$90,000 total
for all work.
2009-2013.
Classification and
total compensation
study for the entire
District, in phases
per employee
group; currently,
ongoing class and
comp work.
Orange County Sanitation
District
Contact: Richard Spencer
Human Resource Supervisor
(714) 593-7164
E-mail: rspencer@ocsd.com
After the
District-wide
class and comp
study, we were
retained to
perform
ongoing class/
comp work
$185,000 Since 2008 to
current
Classification and Compensation Study Proposal
City of Rancho Palos Verdes
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City-wide total
compensation
studies
City of Bellflower
Contact: Ms. Susan Crumly
Human Resources and Risk
Manager
Phone: (562) 804-1424
16600 Civic Center Drive
Bellflower, CA 90706
E-mail: scrumly@bellflower.org
City-wide
compensation
study; recently
retained to
complete
another City-
wide comp
study
$38,400 2006-2007; and
2012-2013
City-wide total
compensation
study
City of Novato
Contact: Mr. Dan Weakley
Human Resources Manager
Phone: (415) 899-8918
75 Rowland Way #200
Novato, CA 94945
E-mail: dweakley@novato.org
City-wide total
compensation
study
$23,300 2011
Ongoing
classification and
compensation, and
organizational
assessment studies
City of Perris
Contact: Ms. Isabel Carlos
Administrative Services Manager
(951) 943-6100
101 N. D Street
Perris, CA 92570
E-mail: icarlos@cityofperris.org
Class and total
comp study,
organizational
assessment
study,
additional
class and total
comp work
since first
project.
Since 2007
Qualifications of Project Team
K&A’s entire team consists of fourteen (14) members, as shown above in our organizational structure.
All members of our team have worked on multiple comprehensive classification and compensation
studies and are well acquainted with the wide array of organizational structures, classification plans,
and compensation structures, as well as the challenges and issues that arise when conducting studies
like this. No portion of this engagement will be assigned to subcontractors.
Georg Krammer, CEO
Catherine Kaneko, President
(Principals of K&A)
Gail Koff,
Founder
Rich Dukellis,
Jerry Frank
Senior Project
Managers
Mike Harary
Project Manager
Anne Hayes,
Patty Howard
Senior
Associates
Kathy Crotty,
Sara Baxter
Administrative
Assistants
Lori Worden,
Kendra Reich,
Ricki Akiwenzie
Associates
Alyssa Thompson
Project Manager
Classification and Compensation Study Proposal
City of Rancho Palos Verdes
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Georg S. Krammer, M.B.A., S.P.H.R.
Chief Executive Officer
Georg brings over seventeen (17) years of management-level human resources experience to Koff
& Associates with an emphasis in organizational development; classification and compensation
design; market salary studies; executive and staff recruitment; performance management; and
employee relations, in the public sector, large corporations and small, minority-owned businesses.
After obtaining a Master of Arts in English and Russian and teaching credentials at the University
of Vienna, Austria, Georg came to the United States to further his education and experience and
attained his Master of Business Administration from the University of San Francisco. After
starting his HR career in Wells Fargo’s college recruiting department, he moved on to HR
management positions in the banking and high-tech consulting industries. With his experience as
a well-rounded senior HR generalist, his education in business and teaching, and his vast
experience with public sector HR programs and functions, Georg’s contribution to K&A’s variety
of projects greatly complements our consulting team. Georg joined K&A in 2000 and has been
the firm’s Chief Executive Officer since 2005.
Georg takes on all projects in Southern California and has been project director for numerous
classification and compensation studies for a variety of cities, counties, special districts, courts,
and educational institutions in San Diego, Los Angeles, Orange, Riverside, and San Bernardino
counties for over ten years.
Georg will be assigned as Project Director for this project and coordinate all of K&A’s efforts. He
will attend all meetings with the City and be responsible for all work products and deliverables.
Richard Dukellis, IPMA-CP
Senior Project Manager
Richard has more than 30 years of human resources experience in the public sector primarily
working for five different agencies. Four of the agencies have been full-service cities providing a
wide range of services including Police and Fire. Richard retired from the City of La Mesa in
2013 as the Director of Administrative Services (Human Resources, Risk Management &
Information Technologies) after six years providing all aspects of HR and Risk support for the
City. This included managing the City’s labor relations processes, recruitment and selection
procedures, employee benefit programs, classification and compensation, employee develop ment
and training, liability and workers’ compensation.
Prior to working for the City of La Mesa, Richard was the Human Resources Manager for the
Cities of Coronado and Poway. He had previously been a Principal Human Resources Analyst
with the City of Escondido and held a variety of progressively responsible human resources
positions with the City of El Cajon. Richard possesses a Bachelor’s Degree in Public
Administration from San Diego State University.
Classification and Compensation Study Proposal
City of Rancho Palos Verdes
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Richard is the 2014 International Public Management Association for Human Resources (IPMA-
HR) International President and has been involved with IPMA-HR at various local, regional and
international levels for the past 25 years. He is the 2011 recipient of Western Region IPMA -HR’s
prestigious Muriel M. Morse Achievement Award and received the designation of IPMA-HR
Certified Professional (IPMA-CP) in 2008. In addition, Richard has been a member of the Public
Agency Risk Managers’ Association (PARMA), California Public Employers Labor Relations
Association (CalPELRA) and the National Public Employers Relations Association (NPELRA).
Richard heads up our San Diego office and will provide consultant support throughout the study,
including classification analysis, interviews with employees and management, compensation
analysis, internal job analysis, development of recommendations, and implementation strategies.
Due to required page limitation, please see detailed resumes of other consultant staff attached.
Client References
The following list includes project experience and client references from agencies that we
conducted similar studies for within the last three (3) years, as well as additional references.
City of Compton
Compensation study completed in 2014.
Contact: Mr. Mario Beas
Interim Director of Human Resources
Phone: (310) 605-5635
205 S. Willowbrook Avenue
Compton, CA 90220
E-mail: mbeas@comptoncity.org
City of Anaheim
Classification and total compensation study for
Library Services Department in final stages of
completion.
Contact: Ms. Belen Ramirez
Senior Class & Comp Analyst
Phone: (714) 765-5159
201 S. Anaheim Boulevard, Suite 501
Anaheim, CA 92805
E-mail: BRamirez@anaheim.net
City of Bellflower
Total compensation study completed in 2007;
compensation study completed in 2013.
Contact: Ms. Susan Crumly
Human Resources and Risk Manager
Phone: (562) 804-1424
16600 Civic Center Drive
Bellflower, CA 90706
E-mail: scrumly@bellflower.org
City of Perris
Classification and total compensation study
2007, organizational assessment study 2009,
classification and total compensation work
Contact: Ms. Isabel Carlos
Administrative Services Manager
(951) 943-6100
101 N. D Street
Perris, CA 92570
Classification and Compensation Study Proposal
City of Rancho Palos Verdes
20
2011, classification work completed April
2013.
E-mail: icarlos@cityofperris.org
City of Sausalito
K&A performed a City-wide classification and
total compensation study completed in 2012.
Contact: Mr. Charlie Francis
Director of Administrative Services/ Treasurer
Phone: (415) 289-4105
420 Litho Street
Sausalito, CA 94965
E-mail: cfrancis@ci.sausalito.ca.us
City of Novato
Total Compensation study completed 2012.
Contact: Mr. Dan Weakley
Human Resources Manager
Phone: (415) 899-8918
75 Rowland Way #200
Novato, CA 94945
E-mail: dweakley@novato.org
City of Palo Alto
Various compensation studies from 2009 to
2013.
Contact: Ms. Sandra Blanch
Assistant Director, Human Resources
(650) 329-2376
250 Hamilton Avenue
Palo, Alto, CA 94301
E-mail: Sandra.blanch@cityofpaloalto.org
Orange County Sanitation District
Classification and total compensation study for
the entire District, in phases per employee
group, since 2008. Since then, providing
classification and compensation support as
needed.
Contact: Mr. Richard Spencer
Human Resource Supervisor
(714) 593-7164
10844 Ellis Avenue
Fountain Valley, CA 92707
Email: rspencer@ocsd.com
Riverside County Transportation
Commission
Classification and total compensation study
completed May 2013.
Contact: Ms. Michele Cisneros
Accounting & HR Manager
(951) 787-7941
4080 Lemon Street, 3rd Floor
Riverside, CA 92502
Email: MCisnero@RCTC.org
Classification and Compensation Study Proposal
City of Rancho Palos Verdes
PROPOSAL SIGNATURE PAGE
K&A intends to adhere to all of the provisions described in RFP.
This proposal is valid for 90 days.
Respectfully Submitted,
Proposer: KOFF & ASSOCIATES
State of California
Signed By:
June 26, 2014
Georg Krammer Date
Chief Executive Officer