TO:
VIA:
FROM:
DATE:
Placentia City Council
CITY COUNCIL
CITY ADMINISTRATOR
DIRECTOR OF HUMAN RESOURCES
JUNE 4, 2024
AGENDA REPORT
SUBJECT: PROFESSIONAL SERVICES AGREEMENT FOR CITYWIDE CLASSIFICATION
SPECIFICATION AND COMPENSATION STUDY
FISCAL
IMPACT: EXPENSE: $117,700 (101512-6099) TOTAL CONTRACT NOT -TO -EXCEED AMOUNT
SUMMARY:
The last comprehensive Classification Specification and Compensation Study for the City was completed in 2008. Since then, there have been significant changes in the labor market, job responsibilities, and compensation trends. To ensure that the City's compensation and classification structures remain competitive and equitable, a new study is necessary. The objective is to complete the study before the next negotiation cycle with labor groups.
The City has also negotiated with the Placentia City Employees' Association that the study would be completed before the 2023 negotiations. Due to staffing constraints, one was not completed.
Staff issued a Request for Proposals ("RFP") for a Citywide Classification Specification and Compensation Study. A total of 5 proposals were received. After a thorough review of proposals and references by Staff, the proposal from MGT was selected as the most qualified vendor. MGT will perform a comprehensive analysis of 131 classification specifications representing 200 full-time and approximately 50 part-time employees and the current pay plans, including impact of minimum wage increases to part-time classifications. The study will include market salary surveys, recommendations for job titles and updated job descriptions, as well as recommendations for revised salary ranges reflecting results of external and internal relationship analysis. An overall written report with recommendations and best practice guidance for policies and procedures for developing and maintaining a position allocation and compensation plan will be brought back to City Council in early 2025.
1.m.
June 4, 2024
City Council Agenda
June 4, 2024
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Approve a Professional Services Agreement with MGT of America Consulting, LLC (MGT) for a Citywide Classification Specification and Compensation Study, in an amount not -to - exceed $107,000; and
2. Authorize the City Administrator to approve any contract term extensions based on performance and amendments up to 10% of the contract not -to -exceed amount, or $10,700; and
3. Authorize the City Administrator to execute the necessary documents, in a form approved by the City Attorney.
STRATEGIC PLAN STATEMENT:
This item is consistent with the City Council approved 5 -year Strategic Goal #7 to Enhance Employee Development, under Objective #7.4, which is to initiate class and comp study.
DISCUSSION:
As a result of the need to retain the professional assistance from qualified vendors to assist Staff with a comprehensive study, Staff prepared an RFP for these services. A total of five (5) proposals were received from qualified vendors experienced in classification specification and compensation studies. These proposals were evaluated by City Staff and the following are the final rankings:
NO.
1 2
3 4
5 CONSULTANT BID AMOUNT
MGT
Ewing Consulting
Planet C
The Hive
Gallagher
$106,314
$ 72,000
$121,800
$ 70,000
$267,000
Each firm's proposal was required to demonstrate its capacity to deliver a comprehensive and professional study. All proposals were required to outline methodology and logistics capable of meeting the goals outlined in the RFP's Scope of Work.
The MGT RFP provided a proposal that reflected a thorough breakdown of services and resources to complete the citywide study. Throughout the proposal, the MGT proposal offered the City with established resources, technical knowledge, and quality assurance capabilities to successfully support the objectives and goals of the project.
City Council Agenda
June 4, 2024
Page3of3
FISCAL IMPACT:
The cumulative not -to -exceed agreement amount for the proposed agreement is $117,700. The award of this agreement does not commit the City to implement any compensation recommendations that may come from the study. As stated above, MGT was deemed to be the most responsive and qualified consultant to provide these professional services. Unlike Public Works Projects, professional services does not have to be awarded to the lowest bidder. Funding for this study is included in the FY 2024-25 Proposed Budget.
Prepred bye
Alice Burnett
Director of Human Resources
Reviewed and approved:
Ros6nna Rami(ez
Deputy City Adminis
Attachment:
Agreement with MGT
Reviewed and approved:
/ <�
Jennifer Lampman
Director of Finance
Reviewed and approved:
Damien-R—Arrula
City Administrator