CITY OF COMMERCEAGENDA REPORTCITY OF COMMERCEAGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
Item No. Item No.
Item No.
Item No.
TO: Honorable City Council
FROM: City Manager
SUBJECT: Consideration of an Agreement for a City-Wide Total Compensation Study Meeting Date: January 11, 2022
RECOMMENDATION:
City Council approve an agreement with Koff & Associates, a division of Gallagher Benefit Services, Inc. to complete a comprehensive City-wide total compensation study of all full-time and part-time position classifications.
BACKGROUND:
The City currently employs approximately 130 authorized full-time regular positions, and 150 part-time positions for FY 21-22. The departments represented include Administration, Human Resources, Public Works, Economic Development and Planning, Transportation, Library, Parks and Recreation, and Finance.
The last time a compensation study (base salary only) was conducted was in 2008/2009, however, it is unknown as to when a total compensation study (benefits and base salaries) was previously conducted.
The purpose of a city-wide Total Compensation Study 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.
The study will include both base salary and benefits, using comparable survey agencies for up to 15 survey agencies, using up to 150 job classification titles, duties and responsibilities based upon the classification specifications from the City.
ANALYSIS:
On November 1, 2021, the City Council approved the release of the City-wide Compensation Study Request for Proposal (RFP) and authorized staff to issue the RFP and designated November 12, 2021 as the due date for proposals.
In addition, the qualifications for this City-wide compensation study includes but is not limited to: familiarity with municipal agencies, demonstrated appropriate experience in conducting successful compensation studies, understanding the City’s goals and qualifications of key personnel and coverage, as well as reputation/references from past clients and a reasonable cost proposal submitted.
On November 3, 2021, the City placed the RFP on PlanetBids. Three firms responded to the RFP by the November 12, 2021 submittal deadline. The following are the proposals received:
CONSULTING FIRM
Option 1 Price for 12 comparable agencies
Option 2 Price for 15 comparable agencies
Kaneko and Krammer Corp. (Business Name Change to: Koff & Associates, a division of Gallagher Benefit Services, Inc.) $68,805
$84,315 (16 weeks completion)
Ralph Andersen & Associates
n/a
$44,800 (8 weeks completion)
Transformance Consulting
n/a
$22,500 (4 months completion)
Upon receipt of the proposals, the Human Resources department reviewed the proposals to determine the services proposed aligned with the City’s goals of the compensation study per the Request for Proposal. Additionally, all the references that the firm provided were contacted to evaluate the level of service, reputation and to confirm the key criteria, key performance indicators based on proposal information and reference checks. The criteria per the RFP are defined as follows:
Understanding of the City's Goals (Comprehensive & Verifiable Proposal Information): 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? Qualifications, Competency of Staff and Demonstrated Success: Do the qualifications of key personnel assigned to the City's study coincide with the City's requirements as stated in the RFP? Does the firm's organizational structure show sufficient depth for the required work? Does the firm have enough qualified staff during emergency staffing shortages? 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? Demonstrated five years of experience providing these services to public entities in the State of California.
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).
Reputation: Are the firm's references from past clients and associates favorable; and, does the firm show financial and operational stability? Project Completion and Timeline: Can the firm complete the project within the 4 months requested by the City? Summary of Staff Evaluation Specific to Key Performance Indicators Based on Proposals and Reference Checks:
Koff & Associates
Ralph Andersen & Associates
Transformance Consulting
Comprehensive & Verifiable Proposals
X
Competency & Qualifications
X
X
Familiarity with Locality
X
Reputation
X
X
Project Timeline & Completion
X
X
X
Comprehensive & Verifiable Proposals: One of the three firms submitted proposals that fully align with the City’s goals and requirements of the study as stated in the request for proposal document and demonstrated this information through the reference check process.
Competency and Qualifications: Two of the three firms were confirmed reputable and have recent and relevant experience relation to conducting classification and compensation studies.
Project Timeline & Completion: All three firms stated they could complete the project within the four month completion goal. One firm stated they could complete the project at 8 weeks but with an hour billable amount beyond the 8 weeks whereas, the other two firms proposed a project completion at either 4 months/16 weeks.
Reputation: All three firms provided at least three references, however, references provided for one of the firms were unverifiable, inaccurate and unreachable. One firm had more than five references completed and all of which were favorable.
Familiarity with Locality: One firm had more than one verifiable experience with agencies near the City of Commerce based on the information provided in the proposal and verified by reference checks.
It is recommended to have Koff and Associates conduct the city-wide compensation study since they were the only consulting firm that satisfied all the performance criteria based on their comprehensive and detailed proposal aligning with the City’s goals, verifiable experience with local agencies in Los Angeles County, qualified staff with a wide range of experience with both classification and compensation studies for both small, mid-size and large public sector agencies, and demonstrated success based on previous experience with past clients through the reference check process.
The estimated timeline for completion of this project is 16 weeks, contingent on no additional project deliverables are added during the duration of the project.
ALTERNATIVES:
The City Council can take the following action:
Approve staff recommendation of the selection of Koff & Associates to conduct the City-wide total compensation study; and Authorize the City Manager to sign the Professional Services Agreement in an amount not to exceed $84,315.
Revise staff recommendation
Provide staff with further direction
FISCAL IMPACT:
If the City Council approves staff’s recommendation, an appropriation from the General Fund unappropriated fund balance in the amount not-to-exceed $84,315 must be made to fund the proposed comprehensive total compensation study for fiscal year 2021/22.
RELATIONSHIP TO STRATEGIC GOALS:
This item is related to a specific 2016 Strategic goal as follows:
Strategic Focus Area: City Organization - “The City of Commerce is an organization and workplace that encourages innovation, attracts and retains employees through a supportive working environment with competitive salary and benefits. The City will maintain a knowledgeable, skilled and empowered workforce that is committed to providing outstanding service to its residents, businesses, and visitors.” Respectfully submitted by: Edgar P. Cisneros, City Manager Prepared by: Ela M. Pappo, Director of Human Resources
Reviewed by: Vilko Domic, Assistant City Manager
Reviewed by: Josh Brooks, Finance Director
Approved as to form: Noel Tapia, City Attorney
ATTACHMENTS:
Resolution
Koff & Associates Proposal
Professional Services Agreement
Compensation RFP