HomeMy WebLinkAbout28-Human Resources
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C~\IGINAL
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From:
Linn Livingston
Subject: RESOLUTION OF THE CITY
OF SAN BERNARDINO APPROVING
THE SELECTION OF REWARD
STRATEGY GROUP TO CONDUCT A
CLASSIFICATION AND
COMPENSATION STUDY FOR NON-
SAFETY EMPLOYEES.
MICC Meeting Date: Nov. 6, 2006
Dept:
Human Resources
Date:
October 26, 2006
Synopsis of Previous Council Action:
Recommended Motion:
Adopt Resolution.
tt r!~.
Contact person:
Linn Livinaston
Phone:
384-5161
Supporting data attached:
Yes
Ward:
FUNDING REQUIREMENTS: Amount:_$128.500
Source: (Acct. No.)
001-092-5502
(Acct. Description)
Finance:
Council Notes:
Keso 0<00(,..-393
Agenda Item No. ~~
O}"ID(,
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
~UBJECT
Staff Report
Authorization to enter into an agreement with Reward Strategy Group, Inc. to conduct a Classification and
Compensation Study for non-safety positions. The completion of this study was agreed to during recently
completed negotiations with the General Unit and Management/Confidential and Unclassified units.
BACKGROUND
The City of San Bernardino has approximately 300 non-safety job classifications. A classification and
compensation study was last conducted in 1999 for non-safety job classifications. While some of positions
have been reviewed on an individual basis at various times, a comprehensive review has not been performed in
since 1999. In an effort to determine whether the existing salary and benefits package are competitive in the
market place, the Mayor and Common Council agreed to the completion of a comprehensive classification and
compensation study during the recently completed labor negotiations.
The Human Resources Department prepared a Request for Proposal and solicited bids from qualified consulting
firms. The City received two responses, one from CPS Human Resources Services in the amount of $211,925
for option I and $227,260 for option 2 and the other from Reward Strategy Group, in the amount of$128,500.
A review committee was created with participants from the General, Mid-Management and
~anagement/Confidential and Unclassified Units. After reading the materials submitted and listening to the
.esentations of the vendors, staff is recommending that the firm of Reward Strategy Group be selected.
The proposal submitted by Reward Strategy Group outlined a comprehensive approach to conducting the s~y
for the City. Specifically, they propose to complete the following:
1. Determine appropriateness of current classifications.
2. Develop new classification plan, if warranted.
3. Conduct a salary and benefits survey of local governments of like size, similar function and activity
levels.
4. Provide an analysis of internal salary relationships and make recommendations for any necessary
adjustments. .
5. Prepare report by bargaining unit.
6. Present results of survey to management, relevant bargaining groups and confidential employees in
small group meetings.
7. Be able to discuss and defend all challenges to the survey.
e Assist in the development of an implementation strategy
9. Present findings and recommendations to the City Council.
eased on the depth of the plan submitted by Reward Strategy Group and their excellent references, we are
recommending that they be awarded the contract. The cost of these services is $128,500, and it is projected that
the study will be completed by September 2007.
FINANCIAL IMPACT
The cost of these services is $128,500, which is available in Account No. 001-092-5502.
RECOMMENDATION
Adopt Resolution.
HRJ Agenda Items:SR.Class.and.Comp.Study.2006
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Resolution No
RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING TH
EXECUTION OF AN AGREEMENT WITH REWARD STRATEGY GROUP TO CONDUC
A CLASSIFICATION AND COMPENSATION STUDY.
WHEREAS, the City prepared a Request for Proposal and solicited bids from qualifie
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY 0
SAN BER.NARDINO AS FOLLOWS:
consulting firms to conduct a classification and compensation study for the General Unit, Middl
Management and ManagementlConfidential and Unclassified Units;
WHEREAS, the City received two (2) responses to its Request for Proposal;
WHEREAS, it has been determined that Reward Strategy Group can best meet the need
of the City based upon the comprehensiveness of their submitted proposal and their excellen
e 13 references;
14 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY 0
SAN BERNARDINO AS FOLLOWS:
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SECTION I: The Mayor of the City of San Bernardino is hereby authorized and directe
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to execute on behalf of said City an Agreement with Reward Strategy Group to conduct
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classification and compensation study, a copy of which is attached hereto, marked Exhibit A an
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incorporated herein by reference as fully as though set forth at length.
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SECTION 2: The authorization to execute the above-mentioned agreement is rescinde
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ihhe parties to the agreement fail to execute it within sixty (60) days of the passage of thi
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RESOLUTI001 OF THE CITY OF SAN BERNARDINO AUTHORIZING TH
EXECUTION OF AN AGREEMENT \VITH REWARD STRATEGY GROUP TO cmmuc
A CLASSIFICATION AND COMPENSATION STUDY.
I HEREBY CERTIFY Ihat the foregoing Resolution was duly adopted by the Mayor an
the Common Council of the City of San Bernardino at a
meeting thereof, hel
on
day of
, 2006, by the following vote, to wit:
COUNCILMDfBERS:
ESTRADA
BAXTER
VACANT
DERRY
KELLEY
JOHNSON
MCCA.'\.1MACK
AYES
NA YES
ABSTAIN ABSENT
Rachel G. Clark, City Clerk
The foregoing resolution IS hereby approved this
day 0
,2006.
Patrick J. Moms, Mayor
City of San Bernardino
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Approved as to form:
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JAMES F. PEI\TMAN,
City Attorney
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HRJ Agenda Items:Reso.Class.and.Comp.Study.2006
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EXHIBIT "A"
SERVICES AGREE:\tENT
THIS AGREEl\IENT is mJde and entered into this _ day ofNovcmber 2006. by
and bctween the CITY OF SAN BERNARDINO, a municipal corporation, 300 North D Street,
San Bemardino Califomia, 92418, (herein referred to as "City"), and the Reward Strategy
Group, 9276 Seantron Road, Suite 120, San Diego, Califomia. 92121, (herein referred to as
"Contractor").
WITNESSETH:
A. WHEREAS, CITY has need for a classification and compensation study; and,
B. WHEREAS, CONTRACTOR is competent, experienced and able to perform
said services: and,
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WHEREAS, CONTRACTOR has provided the most advantageous and best
. \3 responsible proposal for the providing of such services;
14 NOW THEREFORE, the parties hereto agree as follows:
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1.
For the remuneration stipulated, CITY hereby engages the services of
CONTRACTOR to conduct a classification and compensation study as outlined in the
CONTRACTOR'S proposal dated August 30, 2006, a copy of which is attached hereto,
marked Exhibit "A" and incorporated herein by reference as though fully set forth at length.
2. For the service delineated above, CITY shall pay the CONTRACTOR
S 128,500. The fee for services will cover all expenses incurred by thc CONTRACTOR on
behalf of the CITY.
3.
CONTRACTOR shall provide the Director of Human Resources with a
24 monthly invoice in arrears and shall be provided payment within thirty (30) days therefrom.
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CITY retains the right to challenge all or any part of an invoice.
4. The term of this Agreement shall be for a period of one (1) year from the
date first shown above, unless previously modified, amended, or cancelled by the written
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EXHIBIT "A"
mutual ~cnsenl of the panics. This Agree;~1cnt may be terminated at any timc by thiny (cO)
d;,ys written noticc by either pany. Thc terms of this contract shall remain in force unless
mutually amended. The duration of this contract may be extended with the written consent
of both parties.
5. CONTR;\CTOR shall defcnd, indemnify, hold free and harmless CITY,
its elccted and appointed boards, commissions, officials, officers, attorneys, agents, and
employees, from and against any and all claims, demands, suits, actions or proceedings of
any kind or nature (including, without limitation, reasonable costs of defense and reasonable
attorney's fees) arising out of or related to CONTRACTOR's performance of this
Agreement, except that such duty to indemnify, defend and hold harmless shall not apply
where injury to person or property is caused by CITY's willful misconduct or sole
ncgligence. The costs, salary and expenses of the City Attorney and members of his office in
enforcing this Agreement on behalf of the CITY shall be considered as "attorney's fees" for
the purposcs of this paragraph.
6. While not restricting or limiting the foregoing, during the tcrm of this
Agreement, CONTRACTOR shall maintain in effect policies of comprehcnsive public,
general, and automobile liability insurance, in the amount of$I,OOO,OOO combined single
limit and statutory worker's compensation coverage, and shall file copies of said policies
with the CITY's Risk Manager prior to undcrtaking any work undcr this Agrecment. The
policics shall name the CITY as an additional insured and shall provide for ten (10) day
notification to the CITY if said policies are terminated or materially altered.
7. The partics hereto acknowledge and agree that the relationship between
CITY and CONTRACTOR is one of principal and independent contractor and no other. All
personnel to be utilized by CONTRACTOR in the performance ofthis Agreement shall be
cmployees of CONTRACTOR and not employees of CITY. CONTRACTOR shall pay all
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EXHIBIT "A"
salaries and wages. employer's social security taxes, U1;employment insurance and similar
taxes relating to employees and shall be responsible for all applicable withholding taxes.
Nothing contained in this Agreement shall create or be construed as creating a partnership,
joint venture, employment relationship, or any other relationship except as set forth between
the parties. The parties specifically acknowledge and agree that CONTRACTOR is not a
partner with CITY, whether general or limited, and no activities of CITY or CONTRACTOR
or statements made by CITY or CONTRACTOR shall be interpreted by any of the parties
hereto as establishing any type of business relationship other than an independent contractor
relationship.
8. In the performance of this Agreement and in the hiring and recruitment of
employees, CONTRACTOR shall not discriminate on the basis of race, creed, color, religion,
sex, sexual orientation, physical or mental disability, medical condition, pregnancy, child
bilih or related medical conditions of any female employee, marital st<\tus, age, ethnic
background, ancestry, or national origin.
9. Any notice to be given pursuant to this Agreement shall be deposited with
the United States Postal Service, postage prepaid and addressed as follows:
CITY
CONTRACTOR
Linnea Livingston
Director of Human Resources
City of San Bernardino
300 North D Street
San Bernardino, CA 92418
Reward Strategy Group
9276 Scantron Road, Suite ]20
San Diego, CA 92121
Nothing in this paragraph shall be construed to prevent the giving of notice by personal
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senilce.
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10.
In the event that litigation is brought by any party in connection with this
Agreement, the prevailing paliy shall be entitled to recover from the opposing party all costs and
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EXHIBIT "A"
e':pcnses, including reasonable attorneys' fees, inclIncd by tbe prevailing party in the exercise of
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any of its rights or remedies hereunder or tbe enforcemcnt of any of the tern1s, conditions, or
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provisions hereof. The costs, salary and expenses of the City Attorney and members of his offic.
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in enforcing this Agreement on behalf of the CITY shall be considered as "attorneys' fees" for
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the purposes of this paragraph.
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11. This Agreement may not be sold, transfened or assi!>'l1ed by either party,
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or by operation of law, to any other person or persons or business entity, without the other party's
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written permission. Any such sale, transfer or assigrunent, or attempted sale, transfer or
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assignment without written permission, may be deemed by the other party to constitute a
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voluntary tennination of this Agreement and this Agreement shall thereafter be deemed
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terminated and void.
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This Agreement shall be governed by and construed and interpreted in
14 accordance with the laws of the State of California without regard to principles of conflicts of
15 . law.
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The parties hereto agree that all actions or proceedings arising in
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connection with this Agreement shall be tried and litigated either in the State courts located in
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the County of San Bemardino, State of California or the U.S. District Court for the Central
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District of California. The aforementioned choice of venue is intended by the parties to be
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mandatory and not permissive in nature.
14.
The invalidity in whole or in part of any provision of this Agreement shall
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not void or affect the validity of any of the other provisions of this Agreement.
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This Agreement and the Exhibits hereto constitute the entire agreement,
e 25 supersede any and all other agreem.ents whether oral or written between the parties hereto with
respect to the subject matter hereof and contain all of the covenants and agreements between the
parties with respect to said matter. Each party to this Agreement acknowledges that no party, or
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I :mvone acting on behalf of anv !)aliv. orally or otherwisc. has made anv representatiol,s,
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2 i i induccmcnts, promises or agreements that arc not cmbodied hcrein.
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16. Only a writing executed by the parties hereto or their respective successors
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and assigns may amend this Agreement.
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17. If any provision of this Agreement is determined by a court of competent
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jurisdiction to be unenforceable in any circumstance, such determination shall not affect the
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validity or enforceability of the remaining terms and provisions hereof or of the offending
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provision in any other circumstance.
to
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The persons executing this Agreement on behalf of the Parties hereto
11 warrant that they are duly authorized to execute this Agreement on behalf of said Parties and'that
12 by doing so, the Parties hereto are formally bound to the provisions of this Agreement.
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i 1:\ WlT~;ESS WHEREOF. the pJ,.ti~s l'er~lU have executed t!~is Agreement on the day
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6 I Rachel Clark, City Clerk
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CITY OF SAN BERNARDINO
Municipal Corporation and
Charter City
PalJick Morris, Mayor
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CONTRACTOR:
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By:
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Approved as to [ornl:
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JAMES F. PENMAN
City Attorney
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By:
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HR/ Agenda Items :Agreement. Reward.Strategy.Grou
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SERVICES AGREEMENT
THIS AGREEMENT is made and entered into this _ day of November 2006, by
and between the CITY OF SAN BERNARDINO, a municipal corporation, 300 North D Street,
San Bernardino California, 92418, (herein referred to as "City"), and the Reward Strategy
Group, 9276 Scantron Road, Suite 120, San Diego, California, 92121, (herein referred to as
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"Contractor").
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A.
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WITNESSETH:
WHEREAS, CITY has need for a classification and compensation study; and,
WHEREAS, CONTRACTOR is competent, experienced and able to perform
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said services: and,
c.
WHEREAS, CONTRACTOR has provided the most advantageous and best
13 responsible proposal for the providing of such services;
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NOW THEREFORE, the parties hereto agree as follows:
I. For the remuneration stipulated, CITY hereby engages the services of
CONTRACTOR to conduct a classification and compensation study as outlined in the
CONTRACTOR'S proposal dated August 30, 2006, a copy of which is attached hereto,
marked Exhibit "A" and incorporated herein by reference as though fully set forth at length.
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2. For the service delineated above, CITY shall pay the CONTRACTOR
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$128,500. The fee for services will cover all expenses incurred by the CONTRACTOR on
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behalfofthe CITY.
3. CONTRACTOR shall provide the Director of Human Resources with a
monthly invoice in arrears and shall be provided payment within thirty (30) days therefrom.
CITY retains the right to challenge all or any part of an invoice.
4. The term of this Agreement shall be for a period of one (I) year from the
date first shown above, unless previously modified, amended, or cancelled by the written
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mutual consent of the parties. This Agreement may he terminated at any time by thirty (30)
days written notice by either party. The terms of this contract shall remain in force unless
mutually amended. The duration of this contract may be extended with the written consent
of both parties.
5. CONTRACTOR shall defend, indemnify, hold free and harmless CITY,
its elected and appointed boards, commissions, officials, officers, attorneys, agents, and
employees, from and against any and. all claims, demands, suits, actions or proceedings of
any kind or nature (including, without limitation, reasonable costs of defense and reasonable
attorney's fees) arising out of or related to CONTRACTOR's performance of this
Agreement, except that such duty to indemnify, defend and hold harmless shall not apply.
where injury to person or property is caused by CITY's willful misconduct or sole
negligence. The costs, salary and expenses of the City Attorney and members of his office in
enforcing this Agreement on behalf of the CITY shall be considered as "attomey's fees" for
the purposes of this paragraph.
6. While not restricting or limiting the foregoing, during the term of this
Agreement, CONTRACTOR shall maintain in effect policies of comprehensive public,
general, and automobile liability insurance, in the amount of $ I ,000,000 combined single
limit and statutory worker's compensation coverage, and shall file copies of said policies
with the CITY's Risk Manager prior to undertaking any work under this Agreement. The
policies shall name the CITY as an additional insured and shall provide for ten (10) day
notification to the CITY if said policies are terminated or materially altered.
7. The parties hereto acknowledge and agree that the relationship between
CITY and CONTRACTOR is one of principal and independent contractor and no other. All
personnel to be utilized by CONTRACTOR in the performance of this Agreement shall be
employees of CONTRACTOR and not employees of CITY. CONTRACTOR shall pay all
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salaries and wages, employer's social security taxes, unemployment insurance and similar
taxes relating to employees and shall be responsible for all applicable withholding taxes.
Nothing contained in this Agreement shall create or be construed as creating a partnership,
joint venture, employment relationship, or any other relationship except as set forth between
the parties. The parties specifically acknowledge and agree that CONTRACTOR is not a
partner with CITY, whether general or limited, and no activities of CITY or CONTRACTOR
or statements made by CITY or CONTRACTOR shall be interpreted by any of the parties
hereto as establishing any type of business relationship other than an independent contractor
relationship.
8. In the performance of this Agreement and in the hiring and recruitment of
employees, CONTRACTOR shall not discriminate on the basis ofrace, creed, color, religion,
sex, sexual orientation, physical or mental disability, medical condition, pregnancy, child
birth or related medical conditions of any female employee, marital status, age, ethnic
background, ancestry, or national origin.
9. Any notice to be given pursuant to this Agreement shall be deposited with
the United States Postal Service, postage prepaid and addressed as follows:
CITY
CONTRACTOR
Linnea Livingston
Director of Human Resources
City of San Bernardino
300 North D Street
San Bernardino, CA 92418
Reward Strategy Group
9276 Scantron Road, Suite 120
San Diego, CA 92121
Nothing in this paragraph shall be construed to prevent the giving of notice by personal
servIce.
10.
In the event that litigation is brought by any party in connection with this
Agreement, the prevailing party shall be entitled to recover from the opposing party all costs and
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expenses, including reasonable attorneys' fees, incurred by the prevailing party in the exercise of
any of its rights or remedies hereunder or the enforcement of any of the terms, conditions, or
provisions hereof. The costs, salary and expenses of the City Attorney and members of his offic
in enforcing this Agreement on behalf of the CITY shall be considered as "attorneys' fees" for
the purposes of this paragraph.
II. This Agreement may not be sold, transferred or assigned by either party,
or by operation of law, to any other person or persons or business entity, without the other party's
written permission. Any such sale, transfer or assignment, or attempted sale, transfer or
assignment without written permission, may be deemed by the other party to constitute a
voluntary tern1ination of this Agreement and this Agreement shall thereafter be deemed
terminated and void.
12. This Agreement shall be governed by and construed and interpreted in
accordance with the laws of the State of California without regard to principles of conflicts of
law.
13.
The parties hereto agree that all actions or proceedings arising in
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connection with this Agreement shall be tried and litigated either in the State courts located in
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the County of San Bernardino, State of California or the U.S. District Court for the Central
19
District of California. The aforementioned choice of venue is intended by the parties to be
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mandatory and not permissive in nature.
14. The invalidity in whole or in part of any provision of this Agreement shall
not void or affect the validity of any of the other provisions of this Agreement.
15. This Agreement and the Exhibits hereto constitute the entire agreement,
supersede any and all other agreements whether oral or written between the parties hereto with
respect to the subject matter hereof and contain all of the covenants and agreements between the
parties with respect to said matter. Each party to this Agreement acknowledges that no party, or
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anyone acting on behalf of any party, orally or otherwise, has made any representations,
inducements, promises or agreements that are not embodied herein.
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Only a writing executed by the parties hereto or their respective successors
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and assigns may amend this Agreement.
17. If any provision of this Agreement is determined by a court of competent
jurisdiction to be unenforceable in any circumstance, such determination shall not affect the
validity or enforceability of the remaining terms and provisions hereof or of the offending
provision in any other circumstance.
18. The persons executing this Agreement on behalf of the-Parties hereto
warrant that they are duly authorized to execute this Agreement on behalf of said Parties and that
by doing so, the Parties hereto are formally bound to the provisions of this Agreement.
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e IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day
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ATTEST:
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6 Rachel Clark, City Clerk
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9 Approved as to form:
10 JAMES F. PENMAN
11 City Attorney
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CITY OF SAN BERNARDINO
Municipal Corporation and
Charter City
Patrick Morris, Mayor
CONTRACTOR:
By:
HRI Agenda Items:Agreement.Reward.Strategy.Grou
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City. of San Bernardino
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Proposal to Conduct a
Classification and Total Compensation Study
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August 30, 2006
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Prepared by:
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RlWARD STllATEGY GROUP
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Management Consultants
9276 Scranton Road, Suite 120
San Diego, CA 92121
(858)404-0080' Fax (858) 404-0116
www.rewardstrategy.com
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EXHIBIT "A"
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l~tW,\I\ll .'i~R^lLl;' GROlli'
TABLE OF
CONTENTS
Section I - Background and Approach ................... I
Section II - RSG's Qualifications and Project Staffing ......... 2
Section III - Client References .......... . . . . . . . . . . . . .. 3
Section IV - Study Methodology and Work Plan . . . . . . . . . . . .. 4
Section V - Project Budget and Timing. . . . . . . . . . . . . . . . .. 10
Enclosure A:
Enclosure B:
Consultant Resumes
Examples of Clients Served by RSG Consultants
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AUgust 2006
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Section I - Background and Approach
T he City of San Bernardino is seeking a highly qualified consulting firm to perform a comprehe-
nsive review of the City's classification and compensation systems. The last City-wide srudy of
this nature was conducted in 1999. Since that time, only portions of the classification plan have been
reviewed.
CLASSES TO BE STUDIED
The City of San Bernardino employs approximately 730 individuals in 300 job classifications. All classes,
with the exception of sworn police and fire, will be included in this srudy.
STUDY OBJECTIVES
Objectives for the City's srudy include:
. Conduct accurate research and job analysis of City positions and determine appropriateness of
current classifications.
. Recommend improvements to the City's classification plan, including making changes to the
City's current titling protocol, recommending creation or modifications to classes, creating or
modifying career laddersllattices as needed and updating all job specifications, including appro-
priate minimum qualifications for all classifications.
. Conduct an accurate analysis of internal job content relationships among all classifications to
assess the appropriateness of pay differentials across and up/down the organization.
. Plan and conduct an accurate market survey of compensation and benefits. Utilize results for
assessment of external competitiveness.
. Develop sound, defensible, fact-based recommendations for the competitive positioning of the
City's salary ranges versus the labor market.
. Recommend any appropriate changes to the City's benefits package.
. Prepare reports by bargaining unit.
. Present study results to management, relevant bargaining groups, confidential employees and
the City Council.
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August 2006
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Section II - RSG's Qualifications and Project Staffing
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Reward Strategy Group, Inc. (RSG) was founded in 1987 as a California Corporation and has been
in continuous, successful operation since inception. During this period, we have served more than
180 client organizations in the public, private and not-for-profit sectors. RSG is headquartered in San
Diego, CA and currently has eight professionals on staff, including the President and Executive
Director.
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RSG provides its clients with large-firm consulting talent, delivered with a small firm's personal,
participative, interactive style and philosophy. We have both the know-how and perspective to assist
organizations to develop progressive, leading-edge programs - while accurately assessing each entity's
unique culture, institutional capabilities, change readiness and long-term goals - enabling us to tailor
plan design and implementation strategies accordingly.
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Our firm consults across a number of organizational, general management and human resources
management disciplines. But, the areas of focus needed by the City of San Bernardino for this assign-
ment _ job analysis, position classification, compensation surveying, and compensation system
development - are the core specialties of RSG's consulting practice. We have conducted successful,
comprehensive classification and compensation studies for a large variety of enterprises: very large .
(30,000+ employees) and very small (30 employees); governmental and corporate sector; for-profit
and not-for-profit; publicly traded and privately held; non-represented and highly unionized. This
breadth of experience has proved valuable to all our clients.
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PROJECT STAFFING
The consultant team RSG will dedicate to the City's classification and compensation study is very
highly qualified and has many years of experience working together to effectively serve client organi-
zations.
Project Manager ........... Sandra Comrie, Executive Director
Assistant Project Manager . . . . . . . . . .. Allan Crecelius, President
Project Consultant ............ Susan Curran, Senior Consultant
Project Consultant .......... Shannon Comrie, Senior Associate
Members of this consultant team have managed and worked on more than 100 public-sector
classification and compensation studies over the past 28 years.
Resumes for RSG's project team members are provided in Enclosure A. Enclosure B provides a partial
listing of RSG' s current and past clients.
+++++
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Section III - Client References
Provided below are several of RSG's current or recent clients. The City of San Bernardino may wish
to contact these agencies to verify the expertise RSG brings to assignments and the quality of our
consulting processes and deliverables.
. City of Moreno Valley
Consulting Focus: Classification and Compensation.
Client Contact: Ms. Denese Wilson, Director - Human Resources
(951) 413-3040
. City of Oxnard
Consulting Focus: Classification, Compensation, Human Resources Policies.
Client contact: Ms. Rachel Shaw, Director - Human Resources
(805) 385-7570
. City of Carpinteria
Consulting Focus: Compensation and Benefits.
Client contact: Mr. David Durflinger, City Manager
(805) 684-5405 (ext. 400)
.
Las Vegas Valley Water District
Consulting Focus: Classification, Compensation, Performance Management.
Client contact: Ms. Patricia Maxwell, Director, Human Resources
(702) 870-2011
. Orange County Water District
Consulting Focus: Compensation and Benefits.
Client contact: Ms. Stephanie Strohman, Human Resources Director
(714) 378-3311
. City of Riverside
Consulting Focus: Organization and Staffing Audit.
Client contact: Ms. Rhonda Strou t, Human Resources Director
(851) 826-2387
. lUo Hondo College
Consulting Focus: Classification and Compensation.
Client contact: Mr. Peter Parra, Project Manager
(909) 234-9353
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Section IV - Study Methodology and Work Plan
An outline of RSG's proposed methodology for this engagement follows. Our work plan is divided
into four components:
Phase 1 - Project Planning, Communication and Consultant Orientation
Phase 2 - Classification Diagnostic and System Design
Phase 3 - Labor Market Data Gathering
Phase 4 - Total Compensation Diagnostic and Plan Development
Our efforts in each phase are outlined below.
Phase 1 - Project Planning, Communication and Consultant Orientation
To begin the engagement, RSG's consultants will want to gain a thorough understanding of the City's
current organization structure, budget, service objectives, functional accountabilities, position classi-
fication documents, staffing arrangements, pay/benefit practices and labor agreements that represent
the study's context. We will define the City's expectations for the project and agree on what success
will look like at the study's conclusion. We will agree upon a project schedule/timeline and communi-
cation requirements for management, employees, bargaining unit representatives and elected officials.
Our approach ensures periodic meetings to review consultant findings and make decisions on consultant
recommendations. Additionally, RSG's Project Manager will meet periodically with the City's Project
Manager to review study progress.
Key elements of this phase include:
o Consultant Orientation and Background Material Review. RSG will collect and review all
pertinent organization, operational, financial and human resource management materials. We will
meet with the City's key managers to:
· Gain input on both the current socio-political climate and employee relations environment and
their potential impact on the study.
· Review organization issues and staffing concerns that may influence the study.
· Detail our proposed study methodology and the engagement's time frame.
· Discuss management's overall perspective on the long-term needs and requirements in terms of
staffing, organization design, position classification and compensation practice to support the
City in accomplishing its enterprise and service objectives.
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c) Senior Manager Meetings. RSG will meel individually wilh execulive managemem to:
. Review and understand their functional organizations and accountabilities.
. Gain input on classification and compensation issues they believe are important.
. Solicit their perspectives on any "hot buttons" that could affect successful complelion of the
study and implementation of its results.
. Obtain their input regarding critical skills and core competencies required to achieve their
unit's work plans.
[] Prepare Project Plan. RSG's Project Manager will work with the City to finalize a detailed work
plan that:
. Ensures a smooth, efficient sequencing of project initiatives focused on accomplishing agreed-
upon study objectives.
. Addresses all identified issues and concerns.
. Provides a schedule of critical project milestones, estimated timetables and periodic status
reports.
. Incorporates a thoughtful communications plan.
Phase 2 - Classification Diagnostic and System Design
During this phase, our consultants will collect and confirm job content information, conduct a rigorous
assessment of the City's current classification plan, create effective titling protocols and develop an
updated classification system.
Classification steps include:
o Review Materials. RSG will obtain and review available classification and job content materials,
including existing job descriptions, job announcements, job studies, management reports and other
similar documents.
o Develop Position Description Questionnaire. RSG will modify its model position description
questionnaire (PDQ) as necessary to meet the City's requirements. The questionnaire is designed to
collect all key data elements for a job:
. Job Purpose
. Distinguishing Class Characteristics
. Essential Class Functions
. Qualifications (Relevant Education/Experience)
. Competency Requirements (including licenses/certificates)
. Physical Requirements
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We will review the questionnaire in draft form with the Human Resources Manager to ensure it
will serve our needs in this study.
To distribute the PDQs, we will conduct a series of employee orientation meetings. The meetings
will introduce the study, the consultants, and explain the study process and its intended results.
RSG will:
· Present project objectives, key steps, and milestone dates.
· Explain what employees should expect (and not expect) from this study.
· Provide instructions on how to complete the position description questionnaire.
· Describe why this data is being collected and why quality data is critical.
· Reinforce timely completion of PDQs.
· Answer any questions.
o Review Questionnaires, Supervisors/managers will review all completed questionnaires for
thoroughness and accuracy and will complete Manager Supplement Forms included with the PDQ
materials. Instructions to managers will emphasize the critical role they play in ensuring quality
data collection. RSG will then collect all completed PDQs and Manager Supplements and conduct a
thorough review and analysis of position content as reported on the forms.
o Interview Employees. RSG will conduct individual or small-group, same-class imerviews with an
appropriate sample of employees in the studied classifications.
[} Prepare Preliminary Classification Plan Findings. RSG will evaluate all data gathered through
management meetings, position description questionnaires, manager supplemems, any necessary.
job analysis interviews, and our review of supplemental materials and develop o.ur preliminary
findings on the classification plan.
We will identify any individual positions or groups of positions that should be reclassified to
another existing classification or that warrant the creation of a new job class or classes, based on
duties and responsibilities and required job competencies. The consultams will also look for
opportunities to consolidate classes, if appropriate.
We will ensure classes are appropriately grouped imo class series and career ladders and lattices,
reflecting:
· Natural progressions in the size and complexity of jobs.
· Specificity of breadth (both horizontal and vertical) in job classes designed to meet the
City's philosophy and overall organizational objectives.
· Any other objectives, constraints or limitations identified by management.
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We will assess the City's current titling protocol and recommend any changes necessary to ensure
cOllformance with sound professional practice and consistent application of titles across
departments and job families.
o Present Preliminary Classification Recommendations. RSG will meet with the City's manage-
ment team to review our findings, class architecture changes we considered, and our preliminary
classification plan recommendations, with rationale. These recommendations will include a master
classification structure and allocation of positions into specific classes.
o Prepare Draft Class Specifications. After resolving any initial issues regarding the classification
plan and/or position allocations, RSG will update class specifications for all proposed classes.
These specifications will contain all appropriate job content information, note distinguishing char-
acteristics, outline effective minimum qualifications, and comply with ADA requirements.
o Notify Employees of Classification Recommendations. RSG will work with the City to develop a
set of written materials that will effectively communicate the consultants' classification recom-
mendations - and provide a draft copy of the pertinent class specification - to all affected
employees.
Phase 3 - Labor Market Data Gathering
This project phase will result in an accurate survey of current base salary and benefits practices among
a group of comparators that reflect the City 0' San Bernardino's organizational dynamics and represent
the employment market(s) in which the City is competing for human resources. This phase encom-
passes two major steps:
o Prepare and Gain Agreement on the Salary and Benefits Survey Plan. With the input gained
from senior management discussions and meetings with Human Resources, combined with RSG's
decades of compensation consulting experience, our senior consultants will develop and formally
document a recommended survey plan. We will present this plan to City management for concur-
rence or modification.
We envision the Survey Plan would address the following issues:
. The principles and theories behind compensation surveying.
. A discussion of the City's competitive employment market. Confirmation that the Cities of
Riverside, Moreno Valley, Fontana, Ontario and Pomona are the only participants desired
in our survey.
. RSG's thinking on the correct City of San Bernardino benchmarks to utilize for salary
survey comparisons, and our logic behind these selected classes.
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· The survey daw-gathering methodology we will utilize and how it will produce the most
accurate job comparisons for the cash compensation study.
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. Timeline for completion of the survey and compilation of the market data.
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· Lastly, we will want to initiate dialog on the City's compensation philosophy. This dialog
will also continue through Phase 4.
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o Carry Out the Approved Survey Plan. With an agreed-upon plan, we will conduct the survey.
We want to make clear that RSG does not collect salary survey information by putting together a
survey questionnaire and forwarding it to organizations we wish to have participate. We have
found that asking staff members in the different survey agencies to perform benchmark job match-
ing and provide comparable salary data often results in a less-than-accurate set of survey results.
Additionally, this approach is usually not very timely.
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Therefore, RSG's approach is to obtain complete salary structures, organization charts, operating
budgets and classification plans from the comparison agencies and perform benchmark job match-
ing and salary comparisons ourselves, building an accurate survey database for each of San Bernar-
dino's benchmark classifications.
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After survey data has been collected and compiled, RSG will identify and document the competi- .
tive pay practices for benchmark classes in the relevant labor markets. Data sheets will be prepared
for each benchmark that display survey participants where comparable jobs/classifications were
identified and each agency's corresponding salary practice.
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The overall salary survey results will be thoroughly documented in tables, charts and exhibits. We
will compare the City's current salary ranges' to survey data and present our findings for discussion
with the City's senior management team.
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Benefits survey data will be solicited utilizing an electronic survey questionnaire. RSG will compile
benefits survey results and make comparisons with the City's current employee benefit offerings.
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Phase 4 - Total Compensation Diagnostic and Plan Development
The City of San Bernardino needs a total compensation package that is equitable inside the organi-
zation, appropriately competitive in relevant labor markets, motivating to employees who deliver
quality work, and realistic within the City's fiscal resources. RSG's consultants will assist the City in
achieving these objectives through the following tasks:
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o Competitive Analysis. Using the data collected in the previous phase, RSG will conduct a
thorough competitive analysis of the City's current pay and benefits structure and will prepare
exhibits that document/display our findings and conclusions. We will meet with management to
discuss the findings of these analyses and their implications.
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o Internal Classification Relationship Anal}'sis. The consultant team will employ both "whole job"
ranking and quantitative job measurement to evaluate and compare all City classifications based on
their intrinsic job colllem and relative worth. Our judgement on internal hierarchical relationships
will be documented, reviewed with management, and will serve as our illlernal equity template as
we make recommendations on salary grade allocations for City classifications.
o Develop New Compensation and Benefits Plans. Based on our external market analysis - plus
our assessment of internal job content relationships - and the series of decision-making meetings
we will have conducted with City management, we will develop preliminary recommendations for
assignment of each recommended classification to a salary range structure. RSG will summarize
comparisons of the City's benefits package vis a vis market practice/prevalence. If additions or
changes to the City's benefits appear necessary, the consultants will document those findings.
Improved compensation and benefits policies and administration guidelines may also be presented
for consideration if appropriate. Implementation strategies and cost estimates will be addressed.
These recommendations will be documented in a report and presented to executive management.
o Final Report. All work, findings, conclusions and recommendations will be compiled into final
reports by bargaining unit. RSG will assist the City in presenting the study to the City Council.
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Section V - Project Budget and Timing
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Reward Strategy Group will conduct the smdy as described in this proposal for a not-to-exceed cost
of $134.500. This budget includes professional fees and all project expenses.
CONSULTANT BILLING RATES
Executive Director
$180
$180
$125
$95
President
Senior Consultant
Senior Associate
BUDGET BY PROJECT ELEMENT
Project Planning. Communication & Orientation. . . . . . . . . .
Classification Diagnostic & Plan Design . . . . . . . . . . . . . . .
Prepare New Class Specifications ...................
Prepare Salary & Benefits Survey Plan . . . . . . . . . . . . . . . .
Conduct, Compile and Document Salary & Benefits Surveys. .
Total Compensation Analysis, Findings & Recommendations
Final Reports & Presentations .....................
SUPPORT NEEDED FROM CITY STAFF
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Approximate Timing
$8.000 Early November
$41.000 Nov 20 - Jan 12. '07
$42,500 January 31
$2,000 December '06 .
$13,500 February '07
$12,000 Feb - March
$15,500 March 19
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RSG's consulting team will perform all the work for this smdy. City staff will need to gather and
provide background information, work with RSG to schedule employee orientation meetings and
employee interviews, and schedule other review meetings.
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Enclosure A:
Consultant Resumes
SANDRA M. COMRIE
Sandra Comrie, RSG's Executive Director, has nationwide accountability for the firm's consulting
practice areas of strategic planning. position classification, performance management and board
governance effectiveness.
Ms. Comrie has over 14 years of experience in management consulting. She has advised both large and
small client organizations, with employee populations in the tens of thousands down to staff levels of
under 100. Her counsel is valued by pacesetting firms as well as smaller, niche enterprises. Before
joining the RSG executive team, Ms. Comrie was the Chief Operating Officer for a national employee
benefits consulting firm. Ms. Comrie was recruited into this firm from the top human resources
executive position in Transamerica Life Companies, where she developed, implemented and managed a
full spectrum of HR programs/processes for 5,500 employees. Before joining Transamerica, she was
with the City of Los Angeles for 22 years, the final seven as their Assistant General Manager -
Personnel.
Ms. Comrie is a 1962 graduate of the University of California - Los Angeles and has completed
UCLA Andersen Business School's Executive Business Program. She was elected to and served a full
term as the President of the International Personnel Management Association, in addition to serving on
a number of nonprofit boards, including the Los Angeles Urban League and the Foundation for
Employment and Disability. Ms. Comrie has published several articles on effective human resources
management practices, and is the co-author of two books: Strategic Managemelll - Creating Your
Organization's Future and Human Resources Policies - Structuring Staff Guidelines for Your
Organization.
ALLAN CRECELIUS
Allan Crecelius, President and co-founder of Reward Strategy Group, has 28 years of experience in
management consulting with a focus on executive and staff compensation, strategic planning, perform-
ance management and organization effectiveness.
His consulting projects have ranged from studies for Fortune 500 companies to engagements with start-
up entities. He has significant experience across a number of industry sectors, including financial,
technology, utility, service, not-for-profit, and governmental. He has worked with executives,
managers and boards of directors in more than 160 organizations. He brings a range of experience and
technical expertise to client engagements that leads to customized solutions and dramatic improvement
in the organization's programs. He has assisted a large number of enterprises to better execute their
strategies by operationalizing how they define performance, deliver service and reward success.
Prior to becoming RSG's President in 1987, Mr. Crecelius was the Managing Partner - Western
Region for Sibson & Company, Inc., a nationally recognized compensation consulting firm. With
Sibson, he was responsible for managing staff in three offices and leading the firm's consulting
practice in executive compensation and organization effectiveness. Previously, Mr. Crecelius was the
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Vice President - General Consulting for the Hay Group, an international human resources consulting
firm.
Mr. Crecelius received a Bachelor of Science degree from the United States Military Academy at West
Point in 1968 and served as an officer in the U.S. Army for 10 years, holding key leadership positions
in both combat and peacetime. He is listed in "Who's Who in the West" and is frequently retained as a
speaker in national/regional symposiums on strategic planning, organization and compensation issues.
He is the author of a number of articles and the co-author of the 1994 book, Strategic Management _
Creating Your Organization's Future.
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SUSAN CURRAN
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Susan Curran has worked with RSG for three years. She has conducted numerous public sector
consulting projects focused on position classification, with particular emphasis on information
technology/data processing, public library, legal, engineering and general services functions. Prior to
becoming a consultant, Ms. Curran worked in a series of responsible human resources management
positions for 25 years with the County of Los Angeles.
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SHANNON COMRIE
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Shannon Comrie joined our firm five years ago after working as a human resources analyst in A very
Dennison, attending Loyola Marymount Law School and graduating from Texas Christian University
with a BA in psychology. Ms. Comrie has worked on more than 30 client projects involving job
analysis and documentation, compensation and benefits surveying, salary structure development, pay
plan policy development and performance appraisal system design.
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. \lunicipalities
City of Anaheim
City of Bakersfield
. City of Berkeley
City of Camarillo
City of Carpinteria
I City of Corona
City of Culver City
City of Del Mar
I City of Hesperia
City of Imperial Beach
City of Lake Forest
I City of Long Beach
City of Los Angeles
City of Moreno Valley
~ City of National City
City of Newport Beach
City of Oakland
-- City of Oxnard
City of Pasadena
City of Peoria, Arizona
, City of Pleasanton
City of Portland, OR
City of Riverside
I City of Santa Ana
City of San Marino
City of Thousand Oaks
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Enclosure B
EXAMPLES OF CLIENTS SERVED BY RSG CONSULTANTS
Counties
County of Los Angeles
County of Marin
County of San Diego
Multnomah County, OR
Pima County, AZ
Ed ucational Organizations
Antioch University
Berkeley Unified School District
LA County Office of Education
Long Beach Community College District
Montebello Unified School District
National University
Ontario-Montclair School District
Palomar College
Rio Hondo College
San Diego State University
San Jose State University
Non-Profits
American Junior Golf Association
American Red Cross
Credit Union National Association
MAAC Project - San Diego
National Assoc. of Federal Credit Unions
Neighborhood House Association
Orange County Teachers FCU
Pennsylvania State Employees CU
Pentagon Federal CU
San Diego Community Foundation
San Diego Zoological Society
United Nations. FCU
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Other Agencies
Central Arizona Water Conservation District
East Bay Regional Park District
Eastern Municipal Water District
Helix Water District
Imperial County Superior Court
Inland Empire Utility Agency
Laguna Beach County Water District
Las Vegas Valley Water District
Long Beach Transit
Los Angeles Superior Court
Monte Vista Water District
Monterey-Salinas Transit District
National Institutes of Health
Olivenhain Municipal Water District
Orange County Water District
Otay Water District
Ramona Municipal Water District
Rancho California Water District
Riverside Superior Court
Rubidoux Community Services District
San Antonio Water Company
San Diego Unified Port District
San Diego County Regional Airport Authority
San Diego County Water Authority
San Diego Housing Commission
San Joaquin Regional Transit District
San Joaquin Housing Authority
Santa Fe Irrigation District
Santa Clara Valley Transportation Authority
Southern Nevada Water Authority
U . S. Department of Justice
Vallecitos Water District
Valley County Water District
Vandenberg Village Community Services District
Water Replenishment District of So California
Western Municipal Water District
Yucaipa Valley Water District
August 2006
1__
e CITY OF SAN BERc'\'ARDINO - REQUEST FOR COUNCIL ACTION
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From:
Linn Livingston
Subject: RESOLUTION OF THE CITY
OF SAN BERNARDINO APPROVING
THE SELECTION OF REWARD
STRATEGY GROUP TO CONDUCT A
CLASSIFICATION AND
COMPENSATION STUDY FOR NON-
SAFETY EMPLOYEES.
MICC Meeting Date: Nov. 6, 2006
Dept:
Human Resources
Date:
October 27,2006
Synopsis of Previous Council Action:
Recommended Motion:
Adopt Resolution.
ot~ ~~C10
Signature
Contact person:
Linn Livinqston .
Phone:
384-5161
Supporting data attached:
Ward:
Yes
FUNDING REQUIREMENTS: Amount:~128,500
Source: (Acct. No.)
001-092-5502
(Acct. Description)
Finance:
Council Notes:
Agenda Item No.
e
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Staff Report
SUBJECT
Authorization to enter into an agreement with Reward Strategy Group, Inc. to conduct a Classification and
Compensation Study for non-safety positions. The completion of this study was agreed to during recently
completed negotiations with the General Unit and the Management/Confidential and Unclassified Unit.
BACKGROUND
The City of San Bernardino has approximately 300 non-safety job classifications. A classification and
compensation study was last conducted in 1999 for non-safety job classifications. While some of the positions
have been reviewed on an individual basis at various times, a comprehensive review has not been performed
since 1999. In an effort to determine whether the existing salary and benefits packag~ are competitive in the
market place, the Mayor and Common Council agreed to the completion of a comprehensive classification and
compensation study during the recently completed labor negotiations.
The Human Resources Department prepared a Request for Proposal and solicited bids from qualified consulting
firms: The City received two responses, one from CPS Human Resources Services in the amount of $211,925
for option I and $227,260 for option 2 and the other from Reward Strategy Group, in the amount of$128,500.
A review committee was created with participants from the General Unit and the Management/Confidential and
Anclassified Unit. After reading the'materials submitted and listening to the presentations of the vendors, staff
_recommending that the firm of Reward Strategy Group be selected.
The proposal submitted by Reward Strategy Group outlined a comprehensive approach to conducting the study
for the City. Specifically, they propose to complete the following:
I. Determine appropriateness of current classifications.
2. Develop new classification plan, if warranted.
3. Conduct a salary and benefits survey of local govemments of like size, similar function and activity
levels.
4. Provide an analysis of internal salary relationships and make recommendations for any necessary
adjustments.
5. Prepare report by bargaining unit.
6. Present results of survey to management, relevant bargaining groups and confidential employees in
small group meetings.
7.
Be able to discuss and defend all challenges to the survey.
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Assist in the development of an implementation strategy.
9. Present findings and recommendations to the City Council.
eased on the depth of the plan submitted by Reward Strategy Group and their excellent references, we are
recommending that they be awarded the contract. The cost of these services is $ 128,500, and it is projected that
the study will be completed by September 2007.
FINANCIAL IMPACT
The cost of these services is $128,500, which is available in Account No. 001-092-5502.
RECOMMENDA nON
Adopt Resolution.
HR/ Agenda Items:SR. Class.and.Comp. Study.2006
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