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Home My WebLink AboutAgenda Statement 1979/11/06 Item 16 CITY OF CHULA VISTA COUNCIL AGENDA STATEMENT Item No. 16 1= For meeting of 11/6/79 ITEM TITLE RESOLUTION ~~~h Accepting the Proposal of Arthur Young & Co. for Conducting a Classification and Pay Study, Authorizing the City Manager to Negotiate a Final Contract, and Appropriating the Funds Therefor SUBMITTED BY Director of person~ ITEM EXPLANATION (4/5TH'S VOTE REQUIRED YES~ NO___) On October 23, 1979, the Assistant City Manager, Deputy City Manager/Development Services Administrator, and Director of Personnel met with representatives from three consulting firms that had made proposals for the City's classification and salary study. Such a study includes three major components which are necessary in developing any sound classi- fication and pay plan. The three components are: (1) questionnaires which are filled out by every employee, (2) interviews with selected employees, and (3) the salary survey of other agencies which is used to set appropriate salary ranges. The consultant is responsible for data collection, analysis to determine the proper classification plan, allocation of positions, hearing appeals, recommending salaries, and recommending implementation strategies. The three firms interviewed on October 23 were Arthur Young & Company, Ralph Anderson and Associates, and Hay Associates. A fourth firm, Public Personnel Consultants, had been invited to an interview, but withdrew their proposal on Moriday, October 22. ... The firms' written proposals and the oral presentations made by the representatives were evaluated using several criteria. The Location of the Firm - It was felt that a firm with local offices could be more responsive to our needs. Arthur Young & Co. has an office in San Diego; Hay Associates are located in Los Angeles and Ralph Anderson and Associates have offices in Sacramento. Emphasis Consultant Placed on Communication - Based on previous experience we know that communication is of absolute importance in assuring that information is transmitted accurately, and that communication is a major factor in participant acceptance of any project. Based on the written and oral presentations, it was our opinion that Arthur Young & Co. placed the most importance on good communication between themselves, City management and City employees. Agreement --- EXHIBITS Resolution~ Ordinance____ (continued on supplemental page) Plat_ Notification List_ Other ENVIRONMENTAL DOCUMENT: Attached___ Submitted on FINANCIAL IMPACT Appropriate $25,000 from the General Fund unappropriated reserve STAFF RECOMMENDATION Adopt Resolution BOARD/COMMISSION RECOMMENDATION COUNCIL ACTION ~-l. Ie., t'. _ ;.f-, f ('.~ ',_ ."'.' L~ " " c" y '.,' L, '1 '" i I 0 f C I" II'> v' " C" . ~', I " , I : L (-i ..... t a, l-, -~~ , J { ~: r n 1 a 0t~~ Dat.3d -.1/-' -:2.2.._ . ~.---;.C'-=- Item No. 16 11/6/79 Supplemental Page 2 Approach to Employee Appeals - In all matters involving employee classification and pay it is conceivable that some employees will be unhappy with recommenda- tions made. The representatives from Ralph Anderson and Associates proposed that the consultant would merely review employee comments regarding position allocation. The Hay Associates proposed interviews with employees with appeals to "another level" which they did not identify. Arthur Young & Co. proposed a two tier system of appeals to a representative employee committee, and then the consultants. The Arthur Young approach was more fully developed in their proposal and appears most responsive to important issues which can arise in classification and pay studies. The Number of Professional Workdays Committed to the Project - One measure of the potential accuracy and value of the final report is how much professional time will be devoted to data collection, analysis and recommendation. The number of professional workdays to which each firm committed were: Arthur Young & Co. (90), Hay Associates (57) and Ralph Anderson & Associates (none specified). ... Cost - While cost is an important factor, it was not the primary consideration. The proposals were as follows: Arthur Young & Co. ($25,000), Hay Associates ($24,800), and Ralph Anderson & Associates ($19,500). Responsiveness of the Proposal to the Request for Proposal (RFP) - In the Request for Proposal the respondents were asked to address several items. The care with which each consultant responded to the items could serve as an indicator of how well that firm would respond to our stated needs. Although the three firms in the final running were similar in the way they approached our original request, it was our feeling that Arthur Young & Co. responded most directly and completely. Ease of Classification Plan Maintenance - When the study is complete the Personnel Department will be charged with maintaining and updating the plan. Therefore, the ease of maintenance is a critical factor. Ralph Anderson & Arthur Young both propose traditional methods familiar to the current Personnel Department staff. Hay Associates propose a more complicated "method which at present is not used by our Personnel Department. Other items which we considered in making the final recommendation included: amount of interest the firm showed in how City organization relates to classifi- cation structure, the sensitivity of the consultants to City Council policies of pay setting, the references provided by previous clients of each firm, the appreciation of the consultants for the difficulty of salary setting for City Manager, City Attorney and City Clerk, the amount of training proposed for City staff, and finally, the perceived technical competency of each firm. Based on the above criteria it is our recommendation that the City hire Arthur Young & Co. to conduct the City-wide classification and salary survey as called for in the Request for Proposal. If this recommendation is accepted a contract with the consultants can be drawn up with work beginning on the project in two weeks. q ~36 100 0250 5201 f\~'7\o Form No. F-229 12/73 ~ I -'- CERTIFICATE OF CITY/DIRECTOR OF FINANCE Certification of Unappropriated Balance I HEREBY CERTIFY that the money required for the appropriation of funds for the purpose set forth in the attached resolution is available in the Treasury, or is anticipated to come into the Treasury, and is otherwise unappropriated. Amount $ 25,000.00 Fund Genera 1 Purpose Classification and Pay Study Bidder Arthur Young and Company d~ ~<!!f~ ~ / Director of Fxnance The City of Chula Vista ... Date 11 /2/79 By Certification of Unencumbered Balance I HEREBY CERTIFY that the indebtedness and obligation to be incurred by the contract or agreement authorized by the attached resolution can be incurred without the violation of any of the provisions of the Charter of the City of Chula Vista, or the Constitution or the laws of the State of California, that sufficient monies have been appropriated for the purpose of said contract, that sufficient monies to meet the obligations of the contract are actually in the Treasury, or are anticipated to come into the Treasury to the credit of the appropriation from which the same are to be drawn, and that said monies now actually in the Treasury, together with the ~onies anticipated to come into the Treasury, to the credit of said appropriation are otherwise unencumbered. Amount Not to Exceed $ Director of Finance The City of Chula Vista Date By Fund Dept./Activity Purpose Bidder A?((;(3 {, Certificate No. 37