City of Commerce
Request for Proposals:
Citywide Compensation Study
Proposals Due: November 12, 2021
Contact:
Ela Pappo
Director of Human Resources
2535 Commerce Way,
Commerce CA 90040
Phone: 323-722-4805
Fax: 323-726-6231
Email: [email protected]
Table of Contents
Introduction and Purpose 3
Background 3
Scope of Work 4
Submittal Content and Procedures 6
Evaluation and Selection Process 7
General RFP Conditions 8
Professional Services Agreement 9
Submission of Proposals 9
Delivery 10
Key Dates 10
INTRODUCTION AND PURPOSE:
The City of Commerce invites interested qualified, professional consulting services to submit written proposals to evaluate, analyze and prepare a city-wide Compensation Study.
The objective is to have a credible Compensation Plan that provides salaries commensurate with assigned duties; clearly outlines compensation growth; provides justifiable pay differential between individual classes; and maintains currency with relevant labor markets.
BACKGROUND:
The City of Commerce was incorporated as a general law city on January 28, 1960. The City is located in the Southeast section of County of Los Angeles, approximately six miles east of downtown Los Angeles. The City of Commerce encompasses 6.6 square miles and has a population of approximately 13,000. The City of Commerce is a contract city, meaning that some services are provided by contract with agencies and some services are delivered by the City's own employees. Police and Fire protection services are provided by Los Angeles Sheriff’s Department and Los Angeles County Fire Department respectively The City of Commerce has approximately 130 authorized full time positions and 150 part-time positions for FY 21-22, and its departments include Administration, Human Resources, Public Works, Economic Development and Planning, Transportation, Library, Parks and Recreation, Finance & IT. Presently, there are two collective bargaining units at the city that are represented by the same Union. The first bargaining unit represents full-time employees and the second bargaining unit represents part-time employees. Department Heads (Executive Management) and several confidential employees are not represented. The City has three salary pay schedules. Only the part time and full time salary schedules will fall under the scope of the Compensation Study.
The City last conducted a comprehensive compensation study review in 2008. From 2018 - 2021 the City conducted a comprehensive classification study which was recently approved in August 2021. The City's classification plan will be implemented upon approval and adoption of completing a Comprehensive Compensation Study.
SCOPE OF WORK:
The objective of this proposal is to solicit competitive proposals from qualified providers to assist in:
Compensation Study
Develop a Study Methodology with the City’s Project Team with a project completion date of four (4) months upon execution of a signed agreement for professional services.
Meet and consult with appropriate labor unions to identify up to 80 survey labor market benchmarks and classifications that represent most closely to the City of Commerce. This will include an explanation of the specific methodology (i.e., articulable factors) used to identify the survey agencies.
Conduct a comprehensive total compensation market survey, including base salary and benefits, using comparable survey agencies for up to 15 survey agencies, using job titles of up to 150 job classification titles, duties, and responsibilities based upon the classification specifications from the City of Commerce.
Complete an internal base salary relationship analysis, including the development of appropriate internal relationship guidelines.
Develop external competitive and internal equitable salary recommendations for each classification included within the study.
Design and recommend a salary schedule for each classification which reflects the results of the market survey and the analysis of the internal relationships based on two salary schedules for both part-time and full-time. Recommend pay grade assignments.
Equalize pay structures between part time and full time as well as compaction caused by the new minimum wage increase for January 1, 2022.
Determine a total compensation market position annual cost analysis related to benefits for paid time off annual rates, health related benefits and cost sharing for medical, dental, vision plans by plan type and coverage tier, retirement benefits and other common benefit programs such as short term and long term disability, education assistance programs, premium pay, etc.
Present draft results of the survey to management and union and bargaining units in a group meeting Assist the City’s Project Team in presenting the draft results of the survey to management and City Council.
Assist in the development of a strategy for implementing the compensation recommendations and plan.
Findings/Recommendations
Consultant to prepare written report of recommendations of the Compensation Plan, including discussion of methods, techniques and data used to develop the Compensation Plan as well as determining the Cost Impact of the Plan.
Consultant to provide instructional information, tools and resources to allow City Staff to conduct individual salary audits and adjustments consistent with study methods until the next formal study is conducted.
Consultant to attend meetings, if requested, throughout the process with employees, Union, City Administration, City Manager and/or the City Council to explain methodology, survey results and recommendations. The consultant should budget for three Council meetings virtually or in person and four meetings with employees/Union representatives, Not including two kickoff meetings with management, union members and/or employees.
SUBMITTAL CONTENT AND PROCEDURES
The following minimum information should be provided in each proposal and will be utilized in evaluating each proposal submitted. To expedite the evaluation of proposals, submittals should be no more than 30 pages in length.
Cover Letter
The cover letter should indicate the full name and address of the consulting firm that will perform the services described in the RFP. The Consultant should include the name and contact information for the individual who will serves as project manager. Additionally, the cover letter should outline the firm’s qualifications.
Consultant’s Prior Experience and Qualifications
Provide examples of the last three (3) completed projects demonstrating the consultant’s experience working with municipalities or other public agencies similar in size, scope and purpose.
References
Provide three (3) client references applicable to the scope of services. Include contact names, telephone numbers and e-mail addresses.
Organizational Chart
Identify all team members and their titles and responsibilities for the project.
Team Member Resumes
Provide a resume for all team members.
Management Overview and Approach
Explain the proposed methodology that will be used and clearly demonstrate understanding of the objectives the project is intended to complete. The Consultant should provide a detailed work plan and time line indicating how each task under the Scope of Services will be accomplished.
Fee Proposal
As part of the cost and price proposal, the Proposer(s) shall submit proposed pricing to provide the services in the Scope of Work.
Exceptions/Deviations
State any exceptions to or deviations from the requirements of this RFP, segregating "technical" exceptions from "contractual" exceptions. Where Proposer(s) wishes to propose alternative approaches to meeting the City’s technical or contractual requirements, these should be thoroughly explained. If no contractual exceptions are noted, Proposer(s) will be deemed to have accepted the contract requirements as set forth in Exhibit A.
V: Evaluation and Selection Process
The City will select one firm on the basis of qualifications, experience, timeline and cost. The following are the minimum qualifications to be used to evaluate the responses to this RFP:
The proposer has advanced knowledge of the laws and practices relating to employee classification and compensation within a municipal government setting.
The proposer has a demonstrated track record of success in handling all aspects of employee classification and compensation and at least five years of providing these services to public entities in the State of California.
Each proposer shall provide all public agencies they have performed relevant work for in the past three years. When possible, include references from cities of a similar size and characteristics to the City of Commerce.
The proposer can demonstrate an understanding of the assignment and knowledge of the skills necessary to serve in the role of the Compensation Consultant.
The City Manager and designated Staff will conduct a review and evaluation of all proposals and may, if necessary, invite proposers to a personal interview. The City will review and evaluate proposals against the following criteria:
Demonstrated success: Does the proposer demonstrate that it has the appropriate experience and expertise in conducting successful compensation studies similar to those likely to be performed for the City of Commerce? Understanding of the City's Goals: Based on the information provided by the City, does the proposer understand the rules and regulations applicable to public entities in conducting compensation studies, is the proposer familiar with the Commerce City Code and Personnel Rules, is the proposer aware of the resources of the City and obligation of the City to minimize costs while at the same time achieving optimum results? Staff: Do the qualifications of key personnel to be assigned to working on the City's study coincide with the City's requirements? Does the firm's organizational structure show sufficient depth for the required work? Familiarity with Locality: Does the firm have familiarity with the City of Commerce? How close are the firm's permanent offices to Commerce? (Preference is to local or near- local firms).
Specific Management Approach: How does the proposer intend to achieve the City's budget in conducting a "typical" compensation study? How will the firm apply its management techniques and resources? Reputation: Are the firm's references from past clients and associates favorable; and, does the firm show financial and operational stability? Cost: Is the firm’s cost proposal reasonable for the type and level of services to be provided? How does the firm’s cost proposal compare to the cost paid by other governmental agencies for similar work? During the evaluation period, the City may interview some or all of the proposing firms. The City will establish a specific date to conduct interviews, and all prospective Proposer(s) will be asked to keep this date available. No other interview dates will be provided, therefore, if a Proposer(s) is unable to attend the interview on this date, its proposal may be eliminated from further discussion. The interview will likely consist of a short presentation by the Proposer(s) after which the Proposal Evaluation Committee will ask questions related to the firm’s proposal and qualifications. At the conclusion of the evaluation process, the Proposal Evaluation Committee may recommend to the City Council, a Proposer(s) with the highest final ranking or a short list of top ranked firms within the competitive range whose proposal(s) is most advantageous to the City. The City Council will review the Proposal Evaluation Committee’s recommendation and make the final selection.
VI: General RFP Conditions
The City reserves the right to accept or reject any and all proposals, or any item or part thereof, or to waive any informalities or irregularities in proposals.
The City reserves the right to withdraw or cancel this RFP at any time without prior notice and the City makes no representations that any contract will be awarded to any Proposer(s) responding to this RFP.
The City reserves the right to postpone proposal openings for its own convenience.
Proposals received by the City are public information and must be made available to any person upon request.
Submitted proposals are not to be copyrighted.
The City reserves the right to seek clarification of information submitted in response to this RFP.
The City reserves the right to modify the RFP as it deems necessary.
Any material misrepresentations made by the Proposer(s) will void the proposal response and eliminate the Proposer(s) from further consideration.
The City shall not, in any event, be liable for any pre-contractual expenses incurred by Proposer(s) in the preparation of its proposal. Proposer shall not include any such expenses as part of its proposal.
Pre-contractual expenses are defined as expenses incurred by Proposer(s) in:
Preparing its proposal in response to this RFP;
Submitting that proposal to the City;
Negotiating with the City any matter related to this proposal; or Any other expenses incurred by Proposer(s) prior to date of award, if any.
All materials submitted become the property of the City.
VII: PROFESSIONAL SERVICES AGREEMENT:
The selected consultant will be required to enter into a Professional Services Agreement with the City of Commerce which includes the City's standard Terms and Conditions including insurance requirements.
SUBMISSION OF PROPOSALS:
All Bid submissions will be received electronically through Planetbids for this project by 5:30 p.m. Monday, November 1, 2021. All Addendum(s) require to be Acknowledged through Planetbids before electronically submitting a proposal. It is the responsibility of the Proposer to see that any proposal sent through Planetbids, shall have sufficient time to be received by the City of Commerce prior to the proposal due date and time. Late proposals will not be accepted.
Digital Proposals shall be clearly identified:
City of Commerce
City-Wide Compensation Study
City Clerk’s Office
2535 Commerce Way,
Commerce, CA 90040
All inquiries and responses to this proposal shall be submitted through Planetbids:
Ela Pappo
Director of Human Resources
2535 Commerce Way
Commerce, CA 90040
Phone: 323-722-4805
Fax: 323-887-4412
Email: [email protected]
Interpretations or clarifications considered necessary in response to such questions will be resolved by the issuance of formal Addenda to the RFP. All questions regarding this bid shall be uploaded to Planetbids, no later than 5 working days prior to the specified due date. Questions received after this date and time may not be answered. Only questions that have been resolved in writing will be binding. Oral and other interpretations or clarifications will be without legal or contractual effect.
DELIVERY/UPLOAD:
Proposals must be uploaded on the City’s Portal at Planetbids delivered and shall state the following: “Citywide Compensation Study”.
Please register to City’s Portal at PlanetBids by clicking on the link below: https://pbsystem.planetbids.com/portal/32906/portal-home
KEY DATES
Deadline to submit proposal
November 12, 2021
Consultant Engagement
November 19, 2021
Kick-Off Meeting
January 5, 2021
Draft Study
April 30, 2022
Presentation to City Council
June 7, 2022
Final Study
June 30, 2022