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Renne Sloan Holtzman Sakai LLPA PROPOSAL TO CONDUCT A COMPREHENSIVE CLASSIFICATION & TOTAL COMPENSATION STUDY The City of Rosemead SUBMITTED BY +a�* RENNE SLOAN HOLTZMAN SAKAI LLP Public Law Group September 23, 2008 �� RENNE SLOAN HOLTZMAN SAKAI LLP 350 Sansome Street, Suite 300 San Francisco, CA 94104-1304 415.678.3800 r. Randy Riddle Direct dial: 415.678.3814 f: 415.678.3838 rnddl nnublicla"uouacom September 23, 2008 VIA ELECTRONIC AND EXPRESS MAIL Matthew E. Hawkesworth Assistant City Manager City of Rosemead 8838 E. Valley Blvd. Rosemead, CA 91770 Re: Proposal for City of Rosemead Classification and Compensation Study Dear Matthew: Renne Sloan Holtzman Sakai LLP is pleased to submit this proposal to assist the City of Rosemead in conducting a comprehensive classification, total compensation and performance evaluation study. I believe you will find that this proposed workplace will effectively meet Rosemead's goals and objectives to develop a classification system, to ensure all of the Agency's class specifications are accurate and useful, and to develop appropriate salary levels that are competitive with the labor market and which have appropriate and consistent internal relationships between all jobs. The study would cover approximately sixty -five full -time positions and one hundred and forty part-time positions. The development of such a system requires active participation, communication and involvement between the consultant and designated City employees. An open communication process combines technical procedures and sensitivity to all participants for input into the process and study. Study products will be tailored to your agency's needs. In response to your Agency's request for proposals, this proposal is presented in the following format: • Section 1 — Consultant's Qualifications • Section 2 — Statement of Approach • Section 3 — Technical Design / Plan for Scheduling and Accomplishing Work • Section 4 — Project Cost • Section 6 — Commitment of the Agency • Section 7 — References RENNE SLOAN HOLTZMAN SAKAI LLP Matthew Hawkesworth September 23, 2008 Page 2 For your planning purposes, we have assumed a start date of January 14, 2009, and plan to deliver the final report to the City of Rosemead in July of 2009. However, we are prepared to commence the project two to three weeks after receiving your authorization to proceed and can work with the timelines according to Rosemead's constraints. We welcome the opportunity to work with your City on this very important project. If you should have any questions concerning this proposal or would like to meet to discuss it in more detail, please do not hesitate to contact me or Principal Consultant Geoff Rothman. I can be reached at (415) 678 -3814 or rriddle cr publiclawgroup.com. Geoff Rothman can be reached at (415) 678 -3816 or grothmannpubliclawgroup.com. Sincerely, Randy Riddle Managing Partner A Proposal To Conduct a Comprehensive Classification & Total Compensation Study for the City of Rosemead TABLE OF CONTENTS Consultant's Qualifications ............................................................... ............................... 2 Company Background and Qualifications ....................................... ............................... 2 Background of Principals Who Will Perform the Work .................. ............................... 2 Geoffrey Rothman — Principal Consultant ................................... ............................... 2 Janice Koch — Senior Consultant /Project Manager ..................... ............................... 3 Hollis Emery — Consultant ........................................................... ............................... 4 Steven Oshiro — Consultant ................. :...................................................................... 5 Statement of Approach ...................................................................... ............................... 6 Background & Objectives ................................................................ ............................... 6 Approachto the Study ..................................................................... ............................... 6 ClassificationPhase ..................................................................... ............................... 6 CompensationPhase .................................................................... ............................... 7 Performance Evaluation Phase .................................................... ............................... 7 Maximum Communication and Participation .................................. ............................... 7 TechnicalDesign ................................................................................ ............................... 9 Keysto Success ................................................................................ ............................... 9 ClassificationPhase ......................................................................... ............................... 9 Compensation & Market Study Phase ........................................... ............................... 12 Performance Evaluation Phase ...................................................... ............................... 16 Project Cost ...................................................................................... ............................... 18 Phasesand Cost .............................................................................. ............................... 18 BillingArrangement ...................................................................... ............................... 19 Commitmentof the Agency ............................................................ ............................... 20 References......................................................................................... ............................... 21 Proposal for Professional Services for the City of Rosemead Submitted by Renne Sloan Holtzman Sakai LLP Page I CONSULTANT'S QUALIFICATIONS Company Background and Qualifications Formed in April 2004, the firm of Renne Sloan Holtzman Sakai LLP, Public Law Group, www.rshslaw.com is dedicated to providing effective, creative legal representation, policy advice, and human resources /labor relations consulting to meet the distinctive needs of local governments and non- profit organizations. In addition to legal services, Consultant has assembled a non - attorney HR/LR Services division to provide expert, cost - effective solutions to human resources and labor relations needs. This division provides employee and labor relations services, including contract negotiations and administration, comprehensive classification and compensation studies, personnel system audits, discrimination complaint investigations, training, and review and development of policies and procedures. Background of Principals Who Will Perform the Work The key strengths and added value of our staff in conducting a classification study include the following: • Expert knowledge of public sector classification plans. • Expert knowledge of compensation and benefits practices in the public sector. • Expert knowledge of classification and pay practices in the greater Los Angeles Area. • Expert knowledge of public sector labor relations practices. • Immediate availability and access to both client and survey agencies. Consultant's project team will consist of Geoffrey Rothman who heads the firm's Human Resources /Labor Relations Services division, Janice Koch, Senior Consultant/Project Manager. Geoffrey Rothman — Principal Consultant Mr. Rothman has gained extensive public sector compensation and classification experience throughout his 30+ year public - sector career in Human Resources /Labor Relations management with the City & County of San Francisco, as well as several years as a consultant conducting negotiations, compensation and classifications studies, related compensation studies, and training for public sector clients. Mr. Rothman has conducted several surveys focusing upon executive and management classifications. He is currently conducting a study for the City of Gilroy covering elected, executive, and management classifications. Public sector compensation surveys that Mr. Rothman has recently conducted include: • Bay Area Air Quality Management District (Confidential and Management employees) • Bay Area Rapid Transit District (Transit, Police and General Employees) • City of East Palo Alto (all SEIU represented classifications) Proposal for Professional Services for the City of Rosemead Submitted by Renne Sloan Holtzman Sakai LLP Page 2 • City of Gilroy (Supervised in -house study covering AFSCME represented rank and file and supervisory classifications) • County of Monterey (all SEW-represented classifications, initial survey and update). • City of Napa (Police, Fire, mid- management Fire, management and SEIU- represented miscellaneous) • City of Richmond (Police, Fire, general classes, executive, and confidential) • City & Comity of San Francisco (Municipal attorneys) • San Francisco Municipal Transmit Authority (Transit Operators and Supervisors) • County of San Joaquin (investigative, jail custodial, and Sheriffs supervisors and managers) • City of San Jose (Police and Fire) • City of Santa Cruz (all SEW represented classifications) • County of Santa Cruz (consulted on Fox- Lawson study and conducted a recent update of SEIU and safety classification studies with in -house staff). • County of Santa Cruz (Information Technology classifications) In the area of training, Mr. Rothman developed and recently conducted a six - session training program for the County of Santa Cruz in which personnel analysts were trained on classification and compensation theory and practice, which then enabled the analysts to conduct their own compensation studies for SEW and safety classes. '['his same program has also been conducted for the Counties of Marin and Sonoma. Mr. Rothman also conducted training for the County of San Luis Obispo on compensation for non - represented, management, and confidential employees. Mr. Rothman's background prior to creating the HR/.R division of the firm includes Director of Employee Relations, Director of Recruitment & Examinations and Manager of Compensation for the City & County of San Francisco, where his work encompassed classification and compensation issues, including numerous annual and specialized compensation surveys and the administration of complex coin pen sation plans, for virtually all of San Francisco's 1500 +job classifications, represented and non - represented. SEW represented an approximate 12,000 of San Francisco's 28,000 represented employees. He has also served as an expert witness on compensation and classification matters in numerous arbitrations and is co- author of "Public Employee Benefits — From Inquiry to Strategy." He has a BA from the University of California, Los Angeles. Janice Koch — Senior Consultant /Project Manager Ms. Koch is a Senior Consultant and Project Manager for Renne Sloan Holtzman and Sakai. She has had more than seventeen years of experience in local government and the Human Resources field. Ms. Koch has done research and her work has been published on the subject of comparable worth and pay equity. She keeps current on interpretation of the changes in laws affecting personnel management, including those of the Americans with Disabilities Act, aftinnativeaction, civil rights, and employee relations. Her knowledge in these areas has been applied in the following assignments: Proposal for Professional Services for the City of Rosemead Submitted by Renne Sloan Holtzman Sakai LLP Page 3 Representative Engagements Include Classification and Compensation Studies: • City ofCalistoga • City of Napa • City of Compton • City of Newport Beach Library System • Peninsula Library System • Town of Corte Madera • Town of Truckee • City of Orange • Sutter County • Jackson County, Oregon • Elk Grove Community Services District • City and County of San Francisco Information Technology Department • Maria Municipal Water District • Fair Oaks Water District • Truckee Parks and Recreation District A number of other Cities, Counties and Special Districts: • Human Resources Analyst for City of Vacaville for which she was assigned to support the Fire Department, Housing and Redevelopment Department, and the Wastewater Treatment Plant with all aspects of Human Resources management including recruitment, selection procedure development, training, classification, compensation, and organizational development. • Hearing Officer for determination of Classification issues for a mid -sized county. • Senior Human Resources Analyst for Solano County. She was involved in all aspects of Human Resources, including Employee Relations, Training, Recruitment, Classification and Compensation, and Labor Negotiations. • Technical Assistance to the City of Napa in the research and development of hiring and promotional procedures for positions throughout the City. • Human Resources Analyst for Sacramento County in the Exam Research and Development Unit. Education and Other Experience: Ms. Koch earned a Masters of Business Administration from California State University at Sacramento. Her B.A. degree is from the University of California at Berkeley. In addition to her project experience, Ms. Koch served as an Administrator and instructor in training programs and clinics for various educational institutions. Hollis Emery — Consultant Ms. Emery is a Consultant for Renne Sloan Holtzmah and Sakai in the areas of Labor Relations, Recruitment, Classification and Compensation Ms. Emery is one of the Firm's Project Coordinators, assisting in the oversight and organization of complex projects, including interest arbitration, litigation, and multi -party coordinated negotiations. As a Proposal for Professional Services for the City of Rosemead Submitted by Renne Sloan Holtzman Sakai LLP Page 4 Project Coordinator, Ms. Emery oversees the organization and coordination of evidence and witnesses as well as provides negotiations support services such as costing, note - taking, tracking proposal evolution, and assisting in the development and coordination of bargaining positions over multiple tables. She also works on classification and compensation surveys, including the collection of compensation and benefits data in preparation for collective bargaining and impasse procedures including factfinding and interest arbitration. Ms. Emery is also a member of the Firm's recruitment team, assisting local public agencies with recruitment efforts on either an ongoing or on a position -by- position basis, including the development and placement ofjob announcements, coordinating employment applications, oral and written assessment panels, tallying scores and developing employment lists in a manner consistent with the agency's personnel or civil service rules. Related Experience Ms. Emery served as a research assistant at both the University of California, Berkeley and the California Department of Health Services, and previously worked as a Grants Administrator at the UC Berkeley School of Public Health, where she assisted in proposal preparation, including budget preparation, provided administrative support for ten concurrently funded research projects, and developed and maintained a tracking system for human subjects research protocol approvals. She was also a Program Specialist for the National Writing Project, where she handled budget tracking, database maintenance, and event planning for a number of projects and conferences. Education Bachelor of Arts in Political Science and English - University of California at Berkeley Steven Oshiro — Consultant Experience Mr. Oshiro provides consulting services in the areas of human resources with emphasis upon conducting classification and compensation studies. Related Experience Prior to joining the firm, Mr. Oshiro was in a Master's Degree Program in IndustriaVOrganizational Psychology at San Francisco State University. This program included a nearly one -year human resources internship with the Alameda- Contra Costa Transit District, where his work included administering and responding to salary surveys, completing classification studies, conducting job audit interviews and observations, and developing job specifications and descriptions. In addition to his coursework, Mr. Oshiro was a Graduate Teaching Assistant for Applications of Multiple Regression course. He also conducted lab research in the area of employee selection processes. Proposal for Professional Services for the City of Rosemead Submitted by Renne Sloan Holtzman Sakai LLP Page 5 STATEMENT OF APPROACH Background & Objectives The City of Rosemead is seeking assistance in performing a comprehensive " classification and compensation study covering all of its full and part-time positions. This includes approximately sixty (60) classifications, of which forty-one (41) are full - time and twenty (20) are part-time classes. These classes cover approximately sixty - five (65) full -time positions and one hundred and forty (140) part-time positions. In consideration of the Agency's stated needs, we have identified the following goals and objectives as a result of this study: • Review and evaluate the current system and determine its strengths and weaknesses. • Analyze the content of each job, develop a recommended classification structure and allocate positions to the new structure. • Ensure appropriate and consistent tilling for class Jications. • Prepare classification specifications for all classes that accurately describe the actual responsibilities and duties pefornted, the required knowledge, skills, and abilities for each job class, and that are consistent ivith the requirements of the Americans with Disabilities Act and other state and federal requirements. • Analyze and recommend the appropriate labor market which the Rosemead contpetes for employees and to conduct salary survey of selected agencies • Integrate the results of the compensation survey and the classification structure into a proposed new classification and compensation plan for the Agency including to establish appropriate internal relationships. • Review and evaluate the current performance evaluation system and mods as appropriate and necessary. The study process and results, which would effectively meet the Agency's goals and objectives, are summarized below and are discussed in more detail in Section 3 of this proposal. Approach to the Study Based on the above objectives and general knowledge of the Agency, the following outlines a general approach that will provide the City of Rosemead with a recommended new system. The proposed workplan will be conducted in three separate, but fully integrated study phases. The phases are as follows: Classification Phase The Classification Phase of the work plan begins with ensuring the Agency and the consultant review and finalize study goals, objectives, process, schedules, and other miscellaneous details. This Proposal for Professional Services for the City of Rosemead Submitted by Renne Sloan Holtzman Sakai LLP Page 6 phase includes orientation sessions and conferring with the City's classification team and management. The Classification Phase includes a comprehensive study of all positions, including an analysis of all jobs, interviews with a sample of current incumbents, allocation of positions to classifications, career ladder development, updating /development of class specifications, and a review of any issues brought forward by employees. Compensation Phase The consultant will identify and recommend appropriate agencies in the labor market to survey as well as the survey classes. The consultant will be responsible for the collection and analysis of labor market data. This Phase must be closely coordinated with the Classification Phase in order to develop salary recommendations based on internal salary relationships and the external labor markets. Performance Evaluation Phase The consultant will review and evaluate the current performance evaluation system and propose any necessary modifications according to class specifications and employment law. It is important to consider whether the current system is meeting the city's needs in terms of effectiveness and efficiency. The city may also wish to consider managentent/supervisor workshops on "Performing Effective Performance Evaluations" as an add -on to this study. In many agencies management and supervisory employees have never been trained on the value and effective implementation of this very important tool. The consultant is also responsible for preparing a Final Report containing the methodology, findings, recommendations and implementation plan. The report shall be presented in turn as a concept draft, final draft and then final report. Maximum Communication and Participation It is important in this study to maximize communication with and participation of staff throughout the study process. SUCCeSSM studies incorporate the following characteristics: • Clear understanding between the client and consultant regarding study goals, objectives, process, schedule and products • Timely and responsive status and progress reports • Review and understanding of chent's needs before and during the course of the study • Marinntnt oppw7tatity for participation and rerieti, of draft reports by appropriate Agency stcf Proposal for Professional Services for the City of Rosemead Submitted by Renne Sloan Holtzman Sakai LLP Page 7 To accomplish the above, it is anticipated that the consultant will meet as necessary with the following during the study: City Administration — The involvement of the Agency Administrators, Classification Team, and the Rosemead City Council will be discussed with the City Administrators. It is anticipated that, at a minimum, there will be one meeting with the City Manager to present the final report. City Classification Team & Manarenrent Stn!! — The Classification Team and appropriate management staff will be involved in the study by meeting individually with the consultant to clarify specific classification and compensation concems /issues and to review the scope of their operations. Management staff will also be involved in the review of draft recommendations. • Employees — Employees included within the scope of the study will be provided with an opportunity to participate in the study by attending an initial orientation session with the project consultant, by completing a job analysis questionnaire, by participating in employee interviews in designated instances, and by participating in a review of draft classification specifications. In the next section of this proposal, find a detailed technical approach, work plan and schedule for conducting the study. It also includes a description of all deliverable products the consultant will provide to the City. Proposal for Professional Services for the City of Rosemead Submitted by Renne Sloan Holtzman Sakai LLP Page 8 TECHNICAL DESIGN Keys to Success This section provides the technical approach and detailed workplan required to ensure the successful completion of the Agency's Classification and Compensation study. In order to better clarify, all the necessary project work to be completed is shown in three major phases. The three major phases are the following: • Classification Phase • Compensation and Market Survey Phase • Per/hrniance Evaluation Phase Each of the major study components contain a number of specific work tasks which are described below along with objectives, approach and results of each project component. Classification Phase The first part of the Classification Phase of the work plan is designed to ensure the Agency and the consultant review and finalize study goals, objectives, process, schedule, and other miscellaneous details. In addition, the project consultants will conduct orientation sessions with the Agency's management and supervisory staff and employee representatives. Conferences with Department Head staff will be conducted at this time if it is convenient for Rosemead. TASK 1 - FINALIZE PROJECT PLANNING AND COORDINATION In order to establish a firm foundation for the entire project, an essential first step for a project is to establish a clear understanding by all parties of the work to be completed and the roles, responsibilities and assignments of all individuals involved in the project. This includes ensuring that: All parties are in agreement as to the methodoloV, scope, timing, deliverables and plan to accomplish the work. This task will include meeting with the Agency's team to: • Review the technical approach and work plan to make any necessary modifications • Finalize the project schedule and assign project responsibilities, and • Determine how and when to best communicate project activities with the Agency's management team, the employees, and with the Board. The Classification teats and other Agency staff ornolved with the slucly are identified and there is a clear understanding of their time commitment to the study. The consultant's project team has a clear understanding of the Agency's present salaries, classification system, and Agency Human Resources issues. It will be necessary to collect and analyze data on the current system. The consultant will request and review background information such as: • Current class specifications Proposal for Professional Services for the City of Rosemead Submitted by Renne Sloan Holtzman Sakai LLP Page 9 • Current job evaluation guidelines • Organization charts • Budget • Compensation plan including pay schedules and pay administration procedures • List of employees and any other documents on the current principles and procedures used by the Agency in the classification and compensation area. TASK 2 - DEVELOP QUESTIONNAIRE AND CONDUCT ORIENTATIONS Prior to conducting orientation sessions with managers, supervisors and employee representatives, a comprehensive job analysis questionnaire will be developed for review by the Agency. This questionnaire will be reviewed with the Agency and revised as necessary to ensure that all pertinent information is collected. The consultant and the City staff will next arrange the orientation schedule for team members, department heads, managers, supervisors and employee association representatives. The Agency will be responsible for notifying involved parties and making facility arrangements. These orientations will be conducted to clarify study goals and objectives, to outline the study process, to provide information helpful for filling out the job analysis questionnaire, and to establish the time frames for the completion, review and return of the completed questionnaires. Following the study orientations, the employees will be requested to complete job analysis questionnaires. Supervisors and managers will review these questionnaires for content to ensure the appropriate purpose and scope of assigned duties and responsibilities. In order that the study be complete within a reasonable timefi-ame, it is imperative that all employees complete this form and that the support of management provides adequate time and encouragement for questionnaire completion. Employees' immediate supervisors and Management staff must review, comment where appropriate, and sign the questionnaires. This ensures that the information is complete and accurate. It also assists in identifying any areas of possible disagreement on the employee's actual duties or job requirements. TASK - CONDUCT MANAGEMENT CONFERENCES The project consultant will conduct interviews with managers to review the following: • Organization chart, program, and services • Classification issues /concerns • Internal relationship issues /concerns • Miscellaneous issues. The above task gives managers the opportunity to provide valuable information regarding the structure of their units and to provide an overview of any issues and concerns related to current classification and compensation. The next part of the Classification phase can be approached according to the methodology preferred by the city. A traditional approach is to analyze all positions and classifications by using questionnaires and desk audit interviews with the classification plan and allocations to follow. Another approach is more cost and time effective and requires more involvement of the Classification Team. In this approach, after an analysis ofthejob questionnaires and in consult with Proposal for Professional Services for the City of Rosemead Submitted by Renne Sloan I loltzman Sakai LLP Page 10 the Classification Team, a classification structure, class specifications, and initial allocation of positions are drafted. These are then provided to team members for review and feedback. In cases where employees disagree with their positions' allocations, these are reviewed by the consultant and the Classification ']'earn for resolution. Only in cases where these cannot be resolved without additional information are desk audits performed for final determinations. In addition, the information collected during Phase I - Task I and 3 will be incorporated along with other background data to complete a comprehensive job analysis. The results of this component will be combined with the results of the Compensation and Market Survey phase to provide the Agency with all study products. TASK 4 - CONDUCT POSITION ANALYSIS The purpose of this task is to objectively and systematically determine the duties, responsibilities, knowledge, skills and abilities required for each job. This task will include the completion of two major activities: (1) analyzing the completed questionnaires and (2) conducting employee interviews. The general methodology of each of these sub -tasks in described below. ➢ Job Analysis Questionnaire Review This review will accomplish the following: • Prepare for job analysis interviews • Determine and idenli& interviewer needs • Identify classification and allocation issues • Determine need, for follow -ap with managers. Questionnaires are analyzed in detail comparing and contrasting information. At this time, an interview schedule will be produced and submitted to the Agency in order for the Agency to coordinate the next project activity. ➢ Interview Employees If using the traditional approach, following review of job analysis questionnaires, the consultant will conduct desk audits. A representative employee or small group of employees will be interviewed from each classification or classification series. The classification interviews provide a mechanism for maximum participation and communication for employees, supervisors and managers. The interviews will also be used to validate the essential functions, as well as knowledge, skill and ability requirements of each position and will ensure that the responses given on the questionnaire are clear and complete. The outcome of these interviews also provides the project consultants with detailed knowledge of the positions, classifications and projects /programs. In addition, the classification interviews provide the consultant with the data and information necessary to determine proper allocations, appropriate titles, and content of each recommended classification. It is anticipated that up to forty (40) employees will be scheduled for interviews. TASK 5 - PREPARE AND REVIEw DRAFT CLASSIFICATION RECOMMENDATIONS Following the completion of the job analysis, the project consultant will prepare draft classification recommendations including documentation of the criteria and standards for determining title, the allocation of positions to class, and career ladders. , Proposal for Professional Services for the City of Rosemead Submitted by Renne Sloan Holtzman Sakai LLP Page I I The project consultant will next review the Classification Plan recommendations with the City. This review will provide the opportunity to evaluate the new Classification Plan. Following the review, the project consultant would recommend reviewing the initial recommendations with management staff to begin building a consensus. If necessary, modifications will be made and incorporated into the Draft Report. TASK 6—UPDATE/DEVELOP CLASSIFICATION SPECIFICATIONS The project consultant will use the data and information from the Job Analysis Questionnaires as well as information collected in the previous phase of the study to create, update, and /or re -write the class specifications. The class specifications will be reviewed with the Agency's Classification Team. The class specifications will document all essential job duties as well as typical physical requirements and working conditions to ensure ADA/FEI -IA compliance readiness. In addition, each class specification will define the experience, education, knowledge, skills and capabilities necessary to carry out the duties and responsibilities of each job. TASK 7- CONDUCT AN EMPLOVEE REQUEST FOR REVIEW PROCESS Once the draft Classification Plan is completed, the project consultants will allocate positions to classifications. In addition, the consultant will assist the City in defining an appeals process and conduct that process. This process will assist in overall understanding and communication of the draft classification recommendations. It is expected that the employee review will include the following: • Release written classification recommendations in the form of an Allocation Notice with a copy of the new Class Specification attached to each employee. • Review written requests for review received froni employees. • Conduct follow -up interviews as necessary with employees and appropriate supervisory/nranagetnent staff. • Respond to all requests for review in writing. Each employee who submits a request for review will receive a written response which summarizes the concern, documents the steps to resolve the concern, and recommends the final decision. TASK H - PREPARE AND REVIEW FINAL CLASSIFICATION PLAN AND MANUAL Subsequent to the review process, the project consultant will revise the classification recommendations as necessary and prepare the final class manual. This Final Classification Plan and Manual will include and document the class concepts as well as the criteria and standards for allocations. Once the initial draft recommendations are revised, they will be submitted to the Agency's Project Manager. At the completion of the project, we will provide the City of Rosemead with a complete set of all class specifications and a computer file for their administration and maintenance. Compensation & Market Study Phase The compensation and market survey phase of the study includes a discussion of Rosemead's labor market and development of strategies for establishing the level of compensation for all classes. The results of this study component will be integrated with those of the Classification component. Proposal for Professional Services for the City of Rosemead Submitted by Renne Sloan Holtzman Sakai LLP Page 12 TASK I - REVIEW AND ASSESS THE CURRENT STRUCTURE AND PRACTICES The consultant will conduct a diagnostic assessment of the Agency's existing compensation plan including philosophy, policies, practices, and structure. This review will include analyzing and commenting on items such as: • The current salary structure design, including the width of the ranges, progression through the steps and overlap of pery ranges. • The policies and practices affecting progression through the pay range. • Internal versus external equity. • Labor market survey agencies and labor market position. TASK 2 - DETERMINE LABOR MARKET AGENCIES, CLASSES, AND DATAPOINTS TO BE SURVEYED The overall objective in conducting a compensation survey is to determine the "market rate" for selected jobs. This information can then be utilized, along with other considerations, to develop a compensation plan that will permit the organization to recruit and retain quality staff. In defining a survey universe, factors to consider include the organizational characteristics of the potential survey agencies, characteristics of the population served, and recruitment and retention data for the target staff. a) Following review of the Agency's compensation policy and philosophy, the project consultants will review and make recommendations as to the appropriateness of the labor market survey agencies that have been surveyed in the past in comparison to others that may be appropriate. One important step in developing a new or revised survey universe is to assess the prior universe that has been used by either one or both of the interested parties. Such a universe has, presumably, served as a basis for comparability analysis in the past, following some substantial thought, validation and /or negotiation. Although not controlling, and especially in the absence of agreement by both parties, such information must be one consideration in the assessment of a new or revised universe. In assessing an appropriate universe the following must be assessed: • Consideration of Recruitment and Retention Data In order to focus the search for an appropriate survey universe, we will first give our attention to the City's recruitment and retention experience. If the City has compiled data regarding the residence of recent applicants and the residence of current employees, this information can prove an important factor in both defining and validating a potential survey universe. • Geographic Area (Location) -- Determination of the geographical scope of the labor market survey (Local, County-wide, State -wide, Regional). — Recruitment Area — Cost ofliving — CPI (Consumer Price Index) • Service Structure — Determination of types of agencies to survey (what services are provided). — Comparable jobs — Similar organization structure and economic characteristics Proposal for Professional Services for the City of Rosemead Submitted by Renne Sloan Holtzman Sakai LLP Page 13 • Employer Size -- Determination of agency size (measured through number of management and non - management positions, budget, population served, etc.). — Similar organizational striecnme Applying these factors results in a labor market that is representative of those employers with whom Rosemead must compete to recruit and retain qualified personnel. b) In addition to selecting the labor market survey agencies, it is during this task that the survey classifications will also be selected. The methodology to be utilized to establish survey classes is summarized below. An important first step in conducting a compensation survey is the selection of survey classifications for comparison purposes. Survey classifications are a representative sample of all classes in the organization's classification plan, and provide a solid reference point for the ultimate selection of benchmark classifications and subsequent salary determinations for all other classifications. Survey classifications should be identified based on the following criteria: • They should be reasonably well known, and clearly and concisely described. • They should have a clear and identifiable relationship to other classes in their occupational group. This assures that they will make a good reference point in relating and establishing salaries for other classes within their occupational group. • They should be representative of the various f nuctional areas within the agency. • They should be representative of the various pay levels within the agency. • They should, if possible, be the large population classes within the agency. • They should be common classes such that counterparts may be readily found in other employers so that sufficient compensation data niav be gathered The Consultant proposes to survey only benchmark classes. Further the Consultant will limit the scope of the survey to no more than forty (40) benchmark classes, compared to no more than ten (10) comparable employers. As the final step in this task, a labor market memorandum will be prepared that documents the survey agencies and classifications as well as compensation philosophy and labor market position. Once the survey agencies and classifications have been reviewed with the Agency, the actual collection of the labor market data will be conducted, as discussed in the following task. c) The third subset of this task is that the datapoints to be surveyed be decided. It is understood that the City is interested in a Total Compensation survey. Survey data points for a total compensation survey are those that define compensation and benefits available to all or most of the incumbents in survey classes. This group of survey data points is generally used to measure and set wages, and potentially some benefits. This data is particularly useful for recruitment, where initial attention is often drawn to starting salaries, or salaries reached within a relatively short time frame. Generally, these would be benefits that are commonly provided by agencies, can easily be measured Proposal for Professional Services for the City of Rosemead Submitted by Renne Sloan Holtzman Sakai LLP Page 14 quantitatively and, therefore, can be included in a total compensation study for comparison purposes. These generally include: Salaries - Monthly Maximum or Control Point- Longevity or Performance Steps to be included in the survey under those separate categories since they are not part of base salaries • EPMC — Amount of employee's mandatory retirement contribution paid by agency Additional survey data points sometimes include benefits such as those identified below. • Health Benefits — Maximum monthly premiums paid by agency • Dental — Maximum monthly premiums paid by agency • _ Life Insurance — Monthly amount premiums paid by Agency • Deferred Compensation — Contribution from the Agency In most cases, the Consultant recommends including only cash compensation in surveys unless there are special issues of concern which would dictate the survey of other data points. TASK 3- CONDUCT COMPENSATION SURVEY At the city's suggestions, this task can be performed either by the consultant or by city staff. The data and information collected during the classification job analysis will be used to ensure that proper comparability to the labor market classifications is established. The Agency's jobs must be carefully matched to the classes in the labor market survey, with particular attention on matching relevant duties and qualifications. TASK 4 - SUMMARIZE SURVEY DATA & PREPARE RECOMMENDATIONS This task involves thoroughly reviewing each completed survey and contacting the participants to ensure proper job matching or to obtain any missing data. From the results, either the consultant of city staff prepare a survey report covering information for all surveyed jobs. TASK 5 - DEVELOP NEW OR RECOMMEND REVISIONS TO THE CURRENT PAY SYSTEMS We will next develop a new pay structure or recommend revisions to the current pay plan for Rosemead that will include all appropriate pay schedules, pay grades, pay ranges and other structural relationships necessary to establish and define an objective and equitable classification and compensation plan. There are several alternative methodologies for the Agency's consideration to be utilized in the development of salary recommendations. The alternatives will be discussed with the Agency in detail prior to the application of the system. Based upon the policy direction received from the Agency, the project consultants will develop salary recommendations based upon one of the options. Two of these are listed below: Alternative I - Whole Job Approach With regard to the internal salary relationships analysis using the whole job approach, a number of well thought out steps will be required in order to arrive at sound recommendations. Among others, the most important of these will include: Analysis of existing and historical salary relationships for all classes in order to assess the strengths and weaknesses of existing internal relationship patterns. Proposal for Professional Services for the City of Rosemead Submitted by Renne Sloan Holtzman Sakai LLP Page 15 — The development of consistent, uniform, and realistic guidelines for determining internal salary relationships. — Recommendations of equitable and appropriate internal salary relationship differentials. The use of the "whole job" approach is the most common method used by California agencies. Its primary weakness is with its extensive reliance on labor market data and its limited documentation of compensable factors. • Alternative II - Point- Factor -Job Evaluation System Another alternative available to the Agency in the establishment of internal relationships is a Point - Factor Evaluation System. These are balanced systems that develop pay structures which are both competitive (external equity) and non- discriminatory (internal equity). A point factor system develops a compensation plan by grouping jobs of similar evaluation points into similar grades and thus establishing internal equity. These systems systematically determine the relative worth of each job in order to establish and maintain an equitable, comparable, and non- discriminatory compensation plan for the Agency. All jobs will be evaluated against the same set of universal criteria with using compensable factors. Some of these systems are proprietary and use would need to be purchased at an additional cost. Regardless of which alternative methodology is utilized, the project consultant will thoroughly discuss with and explain to the Agency the internal salary relationships which have been developed. The outcome of this will be an improved understanding of the criteria on which internal salary relationship recommendations are to be based and a thorough comprehension by the Agency as to how the criteria can be used within the organization's compensation structure once the study has been completed. Following review, a Draft Final Report will be prepared. TASK 6 -PREPARE DRAFT AND FINAL REPORT After all recommendations have been reviewed, the project consultants will prepare a Draft Final Report that documents all completed phases of the compensation study. The Draft Final Report and Final Report will include narrative infornation and appendices as needed. It will be appropriately indexed and organized into a clear, concise presentation of the factual information. At a minimum, this report will contain: • Agency's compensation philosophy • Labor market selection • Labor market position • Benchmark classes • Compensation survey • Salary recommendations Salary structure and administration. Performance Evaluation Phase The Performance Evaluation Phase of the study includes a discussion and analysis of the strengths and weaknesses of Rosemead's current Performance Evaluation system and a recommended of modifications. The results of this study component will be integrated with those of the Classification component. Proposal for Professional Services for the City of Rosemead Submitted by Renne Sloan Holtzman Sakai LLP Page 16 TASK 1 - REVIEW EFFECTIVENESS OF CURRENT PERFORMANCE EVALUATION SYSTEM Effective performance evaluations should provide a valuable tool for supervisors in setting goals, standards, and expectations, communicating with staff, acknowledging good performance, and discussing opportunities for improvement. The system should be able to be used to motivate and develop employees. It must align with the expectations.of the classification and of the position. Preparation and administration should also not consume so much of the supervisors' time that the supervisors are not able to meet evaluation timelines. With these ideals in mind, the consultant will discuss and evaluate the current system. TASK 2— DEVELOP/MODIFI' EFFECTIVE PERFORMANCE EVALUATION SYSTEM The consultant has examples of a variety of agencies' performance evaluations systems from which to draw in improving or modifying the existing system. The recommended system will be individualized to meet the needs of the city consistent with the classification system, bargaining agreements, and employment law. TASK 3- SUPERVISOR WORKSHOPS As an add -on to this project, it is suggested that once the Performance Evaluation system is approved, the consultant develop and provide workshops for managers and supervisors on the responsibilities, documentation, writing, and administration of effective perfornance evaluations. Performance evaluations are a new responsibility for new supervisors and many long -time supervisors and managers have never been trained in tools for effectively monitoring and evaluating staff. This training can also include effectively dealing with employee disciplinary matters and procedures. Proposal for Professional Services for the City of Rosemead Submitted by Renne Sloan Holtzman Sakai LLP Page 17 PROJECT COST This section describes the proposed costs and billing process. The total fees and expenses for this project would be $50,000 plus actual costs for travel, lodging and meals. For cost s efficiency purpose, it is proposed that the job analysis forms be copied by City staff and provided to employees at the orientation session for Employee Association Representatives. Also, it is proposed that the job analysis forms will be collected by City staff and shipped to the consultant. This is also discussed below in the section, "Commitment of the Agency." A breakdown of the costs for each phase of the study is provided as follows: Phases and Cost Administrative Phase — Finalize Project Planning & Coordination — Develop Questionnaires and Conduct Employee Orientations — Conduct Management Conferences $7,500 Classification Phase, including — Position Analysis — Job Audit Interviews 0 40 interviews o Interview after allocations and reviews— up to 20 — Prepare and Review Classification Recommendations — Update /Develop Classification Specifications — Employee Request for Review Process $25,000 Compensation Phase — Review Current Structure and Practices — Determine Agencies and Classes to be Surveyed — Conduct Compensation Survey (if conducted by Consultant) — Summarize Survey Data and Prepare Recommendations — Develop or Modify Pay System — Prepare Draft and Final Reports $13,500 Performance Evaluation Phase — Review Current System — Recommend Modifications /Improvements $4,000 Add On — Workshops — Conducting Effective Performance Evaluations The price assumes ten (10) Consultant onsite visits (note — this is ten person visits), including project planning, orientations, audits, review and final presentations. While the consultants are available for additional onsite meetings if desired, additional visits will be charged at actual costs for roundtrip travel from San Francisco, overnight accommodations and meals, and consultant hourly professional fees. Proposal for Professional Services for the City of Rosemead Submitted by Renne Sloan Holtzman Sakai LLP Page 18 The price does not include services provided by Consultant following submission of its final report and recommendations. In the event the Consultant is required to provide documents or testimony in response to claims, demands or actions by third parties, Consultant shall bill the Agency for services rendered based on the current protessional fees and expenses incurred. No tasks shall be undertaken without prior notification to the Agency. This provision is intended to apply, only to third party actions based on the Agency's implementation of Consultant's report and findings. Billing Arrangement We prefer to bill monthly as key tasks are completed, based upon percentage of work completed. Proposal for Professional Services for the City of Rosemead Submitted by Renne Sloan Holtzman Sakai LLP Page 19 COMMITMENT OF THE AGENCY The Consultant is anticipating two types of support fonn the Agency: • Project Management Consultation, Review and Approval We anticipate working closely with the Agency's Classification Team and any members of the management team that are designated. The type of involvement includes providing background information, discussing preferred approaches, reviewing and approving draft and final products, and assisting in the general coordination of all tasks involving Agency employees. • Clerical and Administrative Support We would expect to receive support from the Agency's clerical staff in making copies of documents, scheduling and arranging interviews with employees, and performing other routine tasks that can be better performed by the Agency than by the consultant. As mentioned earlier, the project schedule and the various consultant and Agency roles and responsibilities will be reviewed in the initial project work task. Proposal for Professional Services for the City of Rosemead Submitted by Renne Sloan Holtzman Sakai LLP Page 20 REFERENCES Renne Sloan Holtzman Sakai LLP City of Oakland Marcia Meyers, Director Office of Personnel Resources Management City of Oakland 150 Frank Ogawa Plaza Oakland, CA (510)238- 238 -6450 Previously conducted comparability studies on most city classifications, including management and executives. Conducted numerous classification studies 2. County of Santa Cruz Ajita Patel, Director Personnel Department County of Santa Cruz County Administration Building Santa Cruz, CA (831)454 -2600 Previously conducted comparability studies on most county classifications, including management and executive. Conducted numerous classification studies, including ongoing study and restructuring of all Information Technology classes. 3. City of Richmond Leslie Knight, Assistant City Manager & Human Resources Director Rob Larsen, Deputy Director City of Richmond 1401 Marina Way South, Richmond CA 94804 (510) 620 -6602 Previously conducted comparability studies on all city classifications, including management and executive. Conducted numerous classification studies 4. Bay Area Air Quality Management District Michael Rich, Director Human Resources Department Bay Area Air Quality Management District 939 Ellis Street San Francisco, CA (415) 749 -5029 Ongoing classification and compensation studies. Comp Analysis Proposal for Professional Services for the City of Rosemead Submitted by Renne Sloan Holtzman Sakai LLP Page 21 1. Continuing Education of the Bar Booker McClain Director, Human Resources 300 Frank H. Ogawa Plaza, Suite 410 Oakland, CA 94612 -2001 (510) 302 -2080 Conducted multiple custom surveys. 2. Public Health Institute Diana Pascual Director, Human Resources 555 12th Street, 10th Floor Oakland, CA 94607 -4046 (510) 285 -5525 Developed job classification plan, including custom survey 3. City of Emeryville Delores Turner Director, Human Resources 1333 Park Avenue Emeryville, CA (510) 596 -4391 Market analysis, custom survey and classification work while Ms. Turner worked at City of Palo Aho and also while she was at Lawrence National Berkeley Laboratory. Proposal for Professional Services for the City of Rosemead Submitted by Renne Sloan Holtzman Sakai LLP Page 22