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HomeMy WebLinkAboutItem 08 - Compensation Study MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER 4' MEETING DATE: MAY 15, 2012 SUBJECT: COMPENSATION STUDY RECOMMENDATION: City Council to consider awarding a contract to Public Sector Personnel Consultants (PSPC), to conduct a compensation study for the City of Grapevine. Staff recommends approval of the contract with PSPC to perform this study for the total amount of$17,500. FUNDING SOURCE: Funding in the amount of $50,000 was set aside in the non-department account (100- 44540-120-1) for the staffing study. Of that amount, $17,663 has been spent to date on the staffing study, leaving $32,337 available for the compensation study. BACKGROUND: Public Sector Personnel Consultants specializes in compensation studies for public sector organizations. Over 98% of their compensation studies have been successfully implemented by their clients. Attached is a representative list of Texas public employers served by PSPC. A summary of the services PSPC would provide in a compensation study include: • Project planning and direction meeting with City staff • A compensation plan of traditional, selected market cities, benchmark jobs, methods used to assign jobs to classifications, review of salary administration procedures, pay plan maintenance procedures, and Grapevine's desired position (the 50th percentile) in the marketplace. • A review of current job descriptions and compensation plans, confirmation of external market comparators, identification of benchmark jobs to survey (70+ jobs), gathering external compensation data and calculation of pay rates for benchmark jobs, assignment of job classifications to updated salary ranges, cost estimates for implementation of updated pay ranges and a review and critique of draft implementation plans with project leaders. Preparation and presentation of final project reports for staff and City Officials, development of procedures to maintain and update the plan in future years, including one year classification and compensation plan maintenance assistance at no additional cost to the City. May 10,2012 (4:19PM) Staff recommends approval of the contract with PSPC to perform this study for the total amount of $17,500. Anticipated completion date for the study is 60 days after authorization to proceed. CV/cv Attachments May 10,2012(4:19PM) PROFESSIONAL SERVICES AGREEMENT This Agreement is entered into by the City of Grapevine ("the City"), PO Box 95104, Grapevine, Texas, 76099 and Public Sector Personnel Consultants, Inc. (PSPC), 1215 West Rio Salado Parkway Suite 109, Tempe, Arizona 85281 (National Office). A. SCOPE OF THE PROJECT The following enclosed page details the major steps of the study. B. CONTRACT TIME ESTIMATE The City and PSPC will partner to complete the study within 60 days of authorization to proceed. C. CONTRACT COST ESTIMATE At no time shall the total contract exceed $17,500, inclusive of all reimbursable expenses, without further City approval and modification of this agreement D. CONTRACT BILLING AND PAYMENT We do not require any advance payments, and will provide the City with monthly invoices for the professional services provided and out-of-pocket expenses incurred during the month. We request that the City pay the invoices within thirty(30) days of their receipt. APPROVED FOR APPROVED FOR THE CITY OF GRAPEVINE PUBLIC SECTOR PERSONNEL CONSULTANTS By: By: (Signature) (Signature) Name: Bruno Rumbelow Name: Matthew Weatherly Title: City Manager Title: President Date: Date: CGTX PUBLIC SECTOR PERSONNEL CONSULTANTS 5112 May 7,2012(5:01 PM) SCOPE OF WORK SUMMARY OF SERVICES FOR COMPENSATION STUDY PUBLIC SECTOR PERSONNEL CONSULTANTS (PSPC) proposes the following program of consulting services and implementation support to achieve all of the desired objectives for the review of the City's compensation plan. Project Planning and Communication 1. Project planning and scheduling meeting with the City's Human Resources Staff and project designee(s) 2. Policy input and project direction meeting and briefing with Council, Human Resources and designee(s) 3. Project briefing presentation for all employees, Council, City officials, City's project leaders Compensation Plan Review 4. Review of historical survey comparators, benchmark occupations, and external job comparisons 5. Review of methodologies utilized to apply market data for annual or scheduled compensation planning 6. Review of methods utilized to assigned job classes to salary ranges (internal 1 external factors) 7. Review of salary administration procedures and practices including merit, COLA, one-time etc. 8. Collection of any"recent salary practices or actions" undertaken by the City's survey comparators 9. Comparison of City's pay plan maintenance practices to those found in the external marketplace 10. Discussion with City Council on desired, targeted, and/or affordable salary competitiveness policy 11. Recommended modifications to practices and methods utilized in annual 1 scheduled plan updates Custom and Comprehensive Market Compensation Survey 12. Occupational familiarization by review of City's current job descriptions and compensation plans 13. Confirmation of City's competitive employment areas for compensation surveys, for City"re-approval" 14. Identification of City occupations to utilize as survey benchmark job classifications—target 70+jobs 15. Solicitation of comparator employers and agencies for participation in external compensation survey 16. Extraction of data from public employer compensation plans and (as approved) private sector surveys 17. Consolidation of data from all sources and calculation of prevailing rates for benchmark jobs 18. Computation of extent City's compensation offerings vary from external prevailing rates and practices 19. Review of competitiveness analysis with Human Resources, City Officials and City's project designees 20. Assignment of job classifications to updated salary ranges using current or alternative pay structures 21. Fiscal impact estimates at various levels of external prevailing rates competitiveness policies 22. Review and critique of draft salary and implementation plans with Human Resources, project leaders Communication of Results and Implementation Strategies 23. Preparation and presentation of a final project reports for the City Council, staff, and City Officials 24. Development of a plan for the implementation of City's updated or revised compensation plan 25. Development and provision of process for ongoing plan maintenance and subsequent plan updates 26. Assistance with communicating the City's updated plans for all City officials and employees 27. One year classification and compensation plan maintenance assistance at no cost to the City CGTX PUBLIC SECTOR PERSONNEL CONSULTANTS 5112 May 7, 2012(5:01 PM) PUBLIC SECTOR PERSONNEL CONSULTANTS (PSPC) The following Texas employers are representative of the more than 1,000 public employers throughout the U.S. for whom members of our staff have provided classification and/or compensation consulting services. Alice, City of Jefferson County* Anahuac, City of Jefferson County Appraisal District Austin Community College Killeen, City of Austin Housing Authority Lakeway, City of Balcones Heights, City of Lamar University Baylor University League City, City of Baytown, City of* Longview, City of Bee Cave, Village of Nederland, City of Benbrook, City of New Braunfels, City of Carrizo Springs, City of Palestine, City of Cedar Park, City of Pantego, Town of Colleyville, City of Pearland, City of Community Assoc. of the Woodlands Port Lavaca, City of Corinth, City of Port Neches, City of Dallas County Prosper, Town of Dallas Housing Authority Rockwall, City of Eagle Pass, City of* Rowlett, City of El Paso County San Angelo, City of El Paso, City of* San Antonio, City of Frisco, City of* Schertz, City of Galveston, Port of South Padre Island, Town of Goforth Water System Southlake, City of Grapevine, City of State Bar of Texas Grayson, County of Texas Department of Banking Greater Texas Federal Credit Union Texas Department of Transportation Haltom City, City of Texas Office of Attorney General Harrison County Texas Water Development Board Hays County Tomball, City of Horseshoe Bay, City of* (Lake LBJ MUD) Webster, City of Houston Housing Authority Windcrest, City of *REPEAT CLIENTS — MULTIPLE PROJECTS COMPLETED May 7,2012(5:01 PM)