City Council
Report
City Council Meeting: November 14, 2023
Agenda Item: 5.D
1 of 5
To: Mayor and City Council
From: Oles Gordeev, Acting Director of Human Resources, Human Resources Department
Subject: Award Request for Proposal to CPS Consulting, Koff and Associates, Inc., and Sloan Sakai Yeung & Wong for As-Needed Classification and Compensation Services
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines;
2. Award RFP #362 to CPS Consulting, Koff and Associates, Inc., and Sloan Sakai Yeung & Wong LLP for classification and compensation services on an asneeded basis for the Human Resources Department;
3. Authorize the City Manager to negotiate and execute an agreement with CPS Consulting, Koff and Associates, Inc, and Sloan Sakai Yeung & Wong LLP for classification and compensation services on an as-needed basis, for a total aggregate amount for the three agreements, not to exceed $2,000,000 over a five-year period, with future year funding contingent on Council budget approval.
Summary
The Human Resources Department (HR) is requesting Council approval to execute three agreements for as-needed classification and compensation services to address the anticipated increase in workload associated with staffing changes; help meet statutory and negotiated Memorandum of Understanding (MOU) requirements; and support ongoing operational needs associated with maintaining the City’s classification and pay plans, including the administration of position classification and compensation studies. Additionally, such services would better enable the City to be responsive to a 2 of 5
previous Moss Adams audit recommendation related to the maintenance of the classification plan. The use of these as-needed services varies on an annual basis; therefore, HR seeks approval to enter into agreements with three firms to ensure appropriate resources are in place to conduct such work as the need arises. The projected aggregate not to exceed amount of the services would not exceed $2,000,000 over a five-year period. The services would be paid for with existing budget in Human Resources Department and by other departments depending on the work required.
Discussion
Human Resources oversees the regular maintenance of classification and pay plans to ensure employees are paid appropriately for the work performed and to provide for the effective recruitment and retention of a qualified workforce. Additionally, regular maintenance helps ensure compliance with associated Charter and Municipal Code requirements, union agreements, and other regulations, thereby reducing the risk of potential legal and labor-related challenges. The City is anticipating an increase in classification and compensation work over the next five years as City leadership looks to review and modify organizational structures, update outdated classification specifications prior to initiating recruitments, address an increased demand for compensation studies initiated by employees and management, and be responsive to audit recommendations associated with the maintenance of the classification plan. 3 of 5
As departmental needs arise, requests for these services are made through the Human Resources Department which is responsible for overseeing the work, and the Human Resources Department ensures appropriate resources are in place to conduct such work. Should Human Resources staff be unable to complete the work due to competing priorities, staff will work with the requesting department to assess the need and select from the list of pre-approved vendors/consulting agencies to fulfill the solicitation. Before engaging with vendors, Human Resources will have partnered with requesting departments for approval to pay for these services from their existing departmental budgets provided Human Resources cannot cover the expense.
Staff prepared and posted an RFP that detailed the City’s requirements for the associated work. The City received five proposals from which three firms were selected in consideration of their expertise and ability to deliver the level of services that may be required of the City.
Vendor Selection
Bidder Recommendation
Best Qualified
Person/Firm
CPS Consulting; Koff and Associates, Inc; and Sloan Sakai Yeung & Wong LLP
Evaluation Criteria Experience, value add/breadth of service, cost, presentation/demonstration, and project team.
Municipal Code SMMC 2.24.190
RFPs Received
CPS Consulting John Braden-Kaneski Koff and Associates, Inc
Sloan Sakai Yeung &
Wong LLP
Transformance
Consulting
RFP Data
Posted On Posted On
Advertised In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
4 of 5
05/08/2023 City’s Online
Bidding Site Santa Monica Daily Press 22 05/22/2023
Justification to Award
Staff evaluated proposals from the five firms. Based on the evaluation criteria, including prior successful projects completed by the firms, their ability to meet the City’s specific needs, and criteria in SMMC 2.24.190, staff recommends CPS Consulting, Koff and Associates, Inc, and Sloan Sakai Yeung & Wong LLP as the best qualified firms to provide as-needed classification and compensation services based on experience, value added/breadth of service, cost, presentation/demonstration, and project team.
Having three vendors to work with will allow for the City to assign projects in consideration of projected cost, familiarity with the area being assessed, and availability.
Environmental Impact
The agreement for ongoing classification and compensation services is exempt pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines, which states that CEQA does not apply, where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. The agreement would provide administrative services to the City and would not result in physical effects. Therefore, it can be seen with certainty that the contract would not result in adverse physical impacts on the environment, and as such, is exempt from CEQA.
Financial Impacts and Budget Actions
5 of 5
Staff seeks authority to approve funding from the General Fund and various other funds to award agreements with CPS Consulting, Koff and Associates, Inc, and Sloan Sakai Yeung & Wong LLP for classification and compensation services in an aggregate amount not to exceed $2,000,000 for all three agreements. The firms understand that the agreements are for as-needed services, not committed expenses, designed to allow the City to be responsive to legal and operational needs. The costs of the services will be covered using existing budgeted funds within the requesting departments and the Human Resources budget.
Contract Request
FY 2023/24 Budget
Amount
Future Year
Amount Department Account # Total Contract
Amount
$400,000 $1,600,000
01130002.552010 and
various department
accounts as needed
$2,000,000
Future year funding is contingent on Council budget approval.
Prepared By: Sasha Sargent, Executive Administrative Assistant Approved Forwarded to Council
Attachments:
A. Gallagher Benefit Services, Inc- OAKS
B. Sloan Sakai Yeung & Wong- OAKS
C. CPS HR Consulting- OAKS