HomeMy WebLinkAbout1984-11-06; City Council; Resolution 77990 .
1
2
3
4
fi Y
E
'i
E
E
l(
1:
1:
1:
1.
1
1
1
1
1
2
2
2
2
2
2
2
z
L
A
OF
WITH
COMPENSATION
RESOLUTION NO. 7799
RESOLUTION OF THE CITY COUNCIL OF THE CITY
ARTHUR YOUNG & COMPANY FOR A MANAGEMENT
CARLSBAD, CALIFORNIA, APPROVING AN AGREEMENT
STUDY AND APPROPRIATING FUNDS.
WHEREAS, th City Council has directed that a management
compensation stu y be conducted in order to determine fair and
1. That the
2. That the
Arthur Young &
study attached
3. That
($16,850.00) is
account (01-19-50-2499)
Services Account.
4. That tke
equitable compen ation levels for management personnel and,
WHEREAS, pr posals have been received and reviewed from
firms capable of carrying out such a study and,
WHEREAS, fu ds need to be appropriated to carry out the i
above recitations are true and correct.
agreement between the City of Carlsbad and
C2mpany to conduct a management compensation
hereto as Exhibit A is hereby approved.
sixteen thousand eight hundred and fifty dollars
hereby appropriated from the contingency
to the Personnel Department Professional
(01-15-10-2470) for the study.
Mayor is hereby authorized and directed to
NOW, THEREF RE, BE IT RESOLVED by the City Council of the
3ity of Carlsbad as follows:
; tudy ;
//
//
//
//
//
1
2
3
4
5
6
7
E
5
1C
13
1;
1:
14
1!
11
1'
1
1
2
2
2
2
2
2
2
2
2
PASSED, APPE
City Council of t
Jo&r I-
AYES: Counci
NOES : Non!
ABSENT: No
I
iTTEST:
WED AND ADOPTED at a regular meeting of the
le City of Carlsbad held the 6th day of
184, by the following vote, to wit:
Members Casler, Lewis, Kulchin, Chick and Prescott
MARY H &ASL
RANZ, City Csrk
1200 ELM AVENUE
CARLSBAD, CA9-1989
Offlce of the Cify Manager
e
November 7, 1984
0
TELEPHONE
(619)438-5561
Arthur Young & Co pany
110 West "A" Stre t, Suite 1400 San Diego, CA f 92101-3768
Attention: Jill
This letter attached documents will serve
as the study.
with the terms
A) and your
B). The city with your
Sincerely,
Assistant City M
F~NK MANNEN
Arthur Young & Cc
Date:
mpany
Date: November 7, 1984
EXHIBIT A v
MA
I. Background. T with council/m established a concurrent wit salary plan. management emp are governed b
salary and ben management emp
police managem covered by the Plan. Police
Management Com
provisions.
11. Purpose. The
Plan and class
the following
A. A performa administra
B. Specific m management
C. Recommende
appropriat
111. Scope of the S
City Council2
management com Com9ensation P ment organizat management emp
process should City of Carlsb Comparisons sh level of activ
IV. The Proposal.
proposal.
A. A narrativ
will be co
B. The detail phases of
0 CITY OF CARLSBAD
ATTACHMENT A
REQUEST FOR PROPOSAL -
for
JAGEMENT COMPENSATION PLAN
ie City of Carlsbad is a general law city inager form of government. The city ierit system for its employees in June 1970,
i the adoption of a classification and jubsequent to this the city established a .oyee category. Management classifications
7 a separate plan which prescribes management
!fit compensation. There are approximately 45 .oyees in the city. With the exception of six !nt employees, all of these employees are provisions of the Management Compensation ianagement employees are covered by the )ensation Plan and additional separate
:ity wants the existing Management Compensation
.fications reviewed. The review should produce
mecommendations not later than November 1, 1984.
ice based compensation plan with procedures for :ion of the plan.
inagement salary recommendations for all positions.
I management classification changes where
!.
:udy. The study should first determine the id City Manager goals for a performance based
)ensation plan. The current Management .an should be reviewed in detail. The manage- .on of the city should be reviewed. Each .oyee should be interviewed. The comparison define the relevant labor market of the
Id for recruiting of management employees.
iuld be done using cities of comparable size, .ty, functions, and quality of management.
The following should be included in your
! statement explaining how the above work iduc ted .
!d schedule for the completion of the various rork,.
Request for Proposal
D. A list of
the consultant
be evaluated
city staff. fications will be schedule ing evaluation firms may a city the screering City Council. to eject qualificattions
. proposals'submitted
Criteria for
A. Responsiveness
B. Practicali-ty
Page July
V.
VI.
clients preferably in California for whom has provided similar services, The
in response to this request will by a committee composed of members of the
Consideration will be given to the quali- of the consultant, manner in which the work organized and conducted, the work program and the fee for the services provided. Follow-
be requested to make a verbal presentation to of proposals by the city staff, responding
screening committee. Selection will be made by committee subject to the approval of the The City of Carlsbad reserves the right
sought by the evaluation committee.
all proposals should none of them meet the
Evaluation of Proposals.
to the request for proposal.
and logic of methodology.
2
13 , 1984
Deadline and
is 5:OO p.m., should be
Carlsbad, 1200
C. A total fe and a proposed schedule of payments
related to the work schedule.
fee paymen Council ac i e'ptance of the consultant's report.
Provisions for final to be made subsequent to Carlsbad City
::nquiry. The deadline for receipt of proposals Three copies of the proposal August 10, 1984. subriitted to the Personnel Director, City of Elm Avenue, Carlsbad, CA 92008. Please
C. Competenc of the study team.
E. Comments rom references.
D. Fee.
.- I
Understanding of the
August 17, 1984 j
Environment and Issues
Mr. Jerome N. Pieti Personnel Director
City of Carlsbad
1200 Elm Avenue Carlsbad, CA 92008
Dear Mr. Pieti: I
110 West A Street, Suite 1400
San Diego, Califomia 92101-3768
Telephone: (619) 238-1144
Arthur Young is to respond to your Request for Proposal
(RFP) for a compensation study for the City of
Carlsbad. In we have highlighted those aspects of
our proposal are of the greatest interest to
you in consultant to carry out this .
undertaking.
A project of this requires a full understanding of the
key compensation that must be faced by any major
employer in the 198 beyond. In this regard, Arthur Young
leadership field of compensation consulting
can point to its:
broad and va ied consulting experience in a considerable
number of and public sector organizations
"hands-on" in addressing the various key
issues project in a large number of
client organizations
the work performed by the '
City.
Consequently, we high degree of directly related skill
and experience to required in the study.
7
Mr. Jerome N. Pieti
August 17, 1984
Page two
Thoroughness of
The types of resea:mch,
project, with the issues which must be addressed,
or the application of a proven methodology.
reflects these requirements in the
following:
Teahnical Approach
surveys, and analyses required for this
We have pr ed a team of senior specialists in the
field of cl fication and job evaluation. We believe s that this team possesses cannot be
f our competitors.
oven methodologies and techniques in all roject. These include already developed arch and data gathering instruments, s for managing and analyzing data, and stablished job evaluation methodology, the Decisi Band Method, a highly innovative method- thur Young has sole proprietary rights.
ence has helped us to understand the uch issues as "comparable worth." It s to develop the best approaches and aling with the data which must be
yzed to provide the desired results. We have ci several examples in Section 111, Firm Qualifications and we encourage you to
contact the ent references provided.
opportunity to submit this proposal
g with the City of Carlsbad on this
have any questions concerning our . Jill Morton at 238-1144.
Very truly yours, ~
~ TABLE OF CONTENTS
1. STUDY APPROACH
A. Background
B. Key Factors
C. Scope of
D. Project
11. PROJECT TEAM
Page
Influencing our Approach
Work
Approach and Workplan
A. Organiza'zional
B. Staffing
111. FIRM EXPERIENCE
A. Our San
B. Areas of
C. Decision
D. Other
E. Referencys
Consulting
Issues
AND QUALIFICATIONS
Diego Office
Relevant Management Capability
Band Method Experience
Re:.evant Personnel Experience
IV. COST AND SCH DULE r A. Cost
B. Schedule
APPEND1 X
Systems: a Better Approach
System
12
13
21
22
22
27
30
31
32
e
I, STUDY APPROACH
_-
I. STUDY APPROACH
The City of Carlsbad
consulting firm to
compensation study.
cations, and a total
It has been approxinately
ment compensation plm
years interpretation
individual position. The City would now like a comprehensive
review of its manage classification and compensation plan.
The objectives of are to 1) determine if the classi-
fication the management group are equit-
and 3) provide
of salaries and benefits
and recom-
is interested in retaining a qualified
conduct a management classification and
The study will include 33 job classifi-
of 45 individual positions.
thirteen years since the manage-
was introduced at the City. Over the
of the plan has varied by department and
on several key factors
The basis for etermining the value of a job must be directly to that job. Further, the basis must being fair by both employees and man- studies we have conducted using employees readily understand and
including :
The system must be flexible and responsive to
outside each time changes are needed. occasions when a question does
changing It should not require continuing
be readily available.
j -1-
e
Most evaluation systems, are finitive is difficult, ology, the decision xaking Other critetia, conditions, into account,,
The system decisions are
the one factlr
The system
The system ployees.
The system tion. Because primary factor ipulated.
methodologies, including point factors
highly subjective since they lack de- criteria. Consequently, grading consistency
if not impossible. Our proposed method- Decision Band Method of job evaluation, uses responsibility as the primary factor. including skill, education, working complexity and variety of tasks are taken but to a lesser degree.
must be effective for all jobs. Since
made by all employees at all levels, it is
aust be easy to implement and maintain.
should provide for participation by em-
mLst have built-in controls against manipula- decision making responsibility is the considered, the system cannot be man-
that is universal.
The system m st be well documented and provide protec- tion against discriminatory effects. 1 Our proposed method' logy most effectively fulfills the City's
stated objectives and the requirements of the key considera- 0 tions outlined abov
C. Scope of Work
From our discussion with you, we understand that the scope of
the study is:
To the goals of a performance
of 45 employees.
including appro-
To evaluate relative internal relationships of the different jobs within the organization.
-2-
ate and verifiable compensa- ion to assist the City in
compensation levels for the
n levels for each of the
t can be used by the City in nagement compensation and
ersonnel in the development dings and recommendations.
mentation of the study's results.
tion study is current job
der study. Most firms
in conducting classif ica-
ver, the validity of the
job description essential if we are to make meaningful
signated survey organiza-
tions. According we do not believe that "off the shelf" job
ddition, we believe the
ability to devel recommendations regarding such issues as
1 opportunities requires
chnical, managerial and
the concerns of employ-
y is equally important.
the pay plan we recom-
yees, and we expect to
recommendations.
have developed a tno-
ve to the City's needs.
ew of the 45 positions
uld include preparation
-3-
of generic job d iptions that can be used for8 job ranking,
salary survey c ison and documenting the organizational
relationships ch position. This phase will produce
descriptions fo management jobs and recommended internal
relat ionshi-ps b
Phase I1 of th salary and benefit survey. The
product of thi recommended total compensation
levels.
The tasks iden ection are required to fulfill
all of the stu
LUATION STUDY
TASK 1 - Pro.ie Administration
In initial
establish project role in reviewed agreement the project. meetings conduct inform thlem
1.2 Complete
We will
On projects of th s type, we work closely with client person-
nel. Comprehensi e review of the study plan and objectives,
orientation in th Arthur Young approach to the project, and
careful pre-planni g are invaluable in developing a basis for
successful and tim ly completion of the project. Some elements i
meetings with City personnel, we will
the basic lines of communication between the team and the personnel designated to play a the project. The overall work plan will be to ensure a correct interpretation and as to the approach to be followed throughout A master schedule of progress status will be developed at this time. We will group meetings with management employees to of the workplan and the study objectives.
:?reject Planning
complete a detailed outline of the work plan,
of this task, prin ipally + project administration, will continue
through the cour of the project. In this task, we will
undertake the foll
1.1 Meet
-4-
establish
assign con
1.3 Collect an
We will c present s
1.4 Review Ci
We will m cussion I compensat
order to philosophy our asses!
currency o
TASK 2 - Determint -----
The purpose of thi
of the City's perfc
as viewed by the Ci
This process requir
2.1 Meet with the goals tion plan.
2.2 Make spec objectives tions.
2.3 Document
and revie
TASK 3 - Conduct J(
3.1 Job Analyz
This task tions in( task, our personnel develop j we will managemen'
specific time tables and schedules, and
ultants to specific tasks.
Review Existing Documentation
zllect data essential to evaluating the lary schedules and classification plans.
y's Current Management Compensation Plan
let with the Personnel Director for dis- ?garding the City's current management on plan and the philosophy behind it in
levelop a complete understanding of that This understanding will be the basis of nent of the credibility, practically, and the plan.
- Goals for Management Compensation Plan
~ task is to define and document the goals
'mance based management compensation system, .
.y Council and City Manager.
!s the following tasks:
City Council and City Manager to discuss
and objectives of the management compensa-
ific recommendations on these goals and
, based on experience with other organiza-
indings regarding the goals of the plan,
with the City Council and City Manager.
I Analysis
is
is critical to the evaluation of the posi- luded in this studyn In conducting this
extensive experience in both government and
will enable us to efficiently and accurately b descriptions. To accomplish this task,
istribute position questionnaires to the
employees to solicit information regarding:
-
-5-
a.
b.
C.
d.
e.
Contact
- Contmt etc.
- Contbxt
En v i r onqien
anizational
ith other
thorities.
with clients, outside organizations,
within the City.
t a1 con d i t ion s
- Admi istrative responsibilities. 3
-
of
- Type$ of decisions required by the job.
Educational skill and experience requirements
the job.
- Requirement for confidence and trust.
pertinent information.
stage, we will emphasize are designed to obtain information of the job, - not the person The completed questionnaires the immediate supervisor and
verification and comment.
-6-
3.2
3.3
3.4
3.5
Following interviews
to help ass
the validit
Prepare Job
Based on tl
will prepa job conter and commen there is a( current dul will normal
sign off 01
been that facilitates since the ;
job evaluat son study.
Evaluate Ma
In this SI
techniques tion. Eac process wil this value determining the positic
salary gra subtask wi: ector and of DBM so and maintaj will also t
should the met hod o lo gy
to the Citj
of job eva proposal.
Review Find
The Person1 comment on tions prio commendatio
Prepare and
A draft re1 tions rega
review of the completed questionnaires, si11 be held with all management employees
re understanding of each job and to verify of questionnaire responses.
Descriptions and Specifications
? information gathered in subtask 3.1, we e job descriptions to reflect current . Employees will be asked to review on the draft job description so that 'eement, to the extent possible, regarding
es and responsibilities. Although there y be some number of employees who will not the job descriptions, our experience has :he vast majority will. This process employee acceptance of the study results b descriptions serve as the basis for the
on (next task) and any subsequent compari-
agement Positions Using DBM
itask we will apply the principles and
f the Decision Band Method of job evalua- job will be evaluated. The evaluation produce a value for each job, and it is that will be the beginning point for the appropriate internal relationships of s and the allocation of the positions to
es within the salary structure. This
. include training of the Personnel Dir-
p to two other staff members in the use hat the City will be capable of revising
ing the plan in the future. However, we available to assist the City at any time ieed arise. Because DBM is a proprietary we will also issue the necessary license An overview of the Decision Band Method
iation is included in Appendix A of this
ngs
!1 Director will be asked to review and
the findings and preliminary recommenda- to finalization and submission of re- to the City Council.
Submit Report
lrt outlining our findings and recommenda- ding position classification, internal
-7-
relationshj
and submit
ing his re appropriate
3.6 Present Re<
This task City Counc study.
PHASE
TASK 1 - Identif]
The organizations t
tion survey will be
organizations which
of activity, functj
the designation of z
require approval by
TASK 2 - Develop SUI
We will develop th
descriptions of p
questions, for ret
gather data based (
o rganizat ions w i 11
tures that result
duties and levels 0:
TASK 3 - Conduct SUI
We will contact up .
obtain the data nee
in the previous tasl
TASK 4 - Analyze Re:
We will analyze SUI
ness of the City's
ps, and implementation will be prepared
ted to the Personnel Director. Follow-
view, we will make any changes which are
and then finalize the report.
mmendations'
includes briefing the City Management and
il as appropriate on the outcome of the
II: COMPENSATION SURVEY
Study Participants and Benchmark Positions
1 be used as participants in the compensa-
determined by the City. We will identify
we believe to be comparable in size, level
ons and quality of management. However,
n organization as a survey participant will
the Personnel Director.
vey Questionnaire
? survey questionnaire format, including
bsitions and compensation and benefits
iew by the City. It is our practice to
n job content rather than job title since
ormally have different organization struc-
in jobs having different combinations of
responsibility.
vey
o 10 organizations indicated by the City to
fed to complete the questionnaire developed
ults -
vey results and determine the competitive-
compensation and benefits program relative
-8-
e
to the insights have gathered in respect t9 the City's
tem which
overview of APPS provided in Appendix B of this proposal. A
copy of the DPS tware will also be provided to the City for
future use.
report.
6.4 Present
include assignment to specific pay or dollar amounts. Rather, we will
-9-
present ro
the City.
project ta
TASK 7 - Position A
sation Pay
In this task, we
positions studied I
work we will have:
0 Analyzed I
descriptio
Surveyed compet itivj
(jobs comg
0 Evaluated
of all PO
mark jobs)
We will merge the
results statistical
external management
study addresses to
also address employ
other significant 1
avail ab1 e.
TASK 8 - Prepare an
A draft final repor
regarding managemel
with procedures for
prepared and subml
ing his review, we
and then finalize t
TASK 9 - Present Re
This task include
;h estimates of necessary pay movements to
'hese estimates will be refined in the next
be
;ignment to the Proposed Management Compen-
'1 an -
.ll develop recommendations assigning all
the proposed pay plan. From prior task
sitions, resulting in validated position
;
by and benefit practices, resulting in
pay rate determination for benchmark jobs
Fable to those in the survey population)
witions, resulting in an internal ranking
.tions (including benchmark and nonbench-
job evaluation results with the survey
r to determine the best fit of internal and
compensation considerations. Because our
,1 compensation, our recommendations will
? benefits including insurance, leaves and
nefits to the extent that market data is
Submit Final Report
outlining our findings and recommendations
compensation and benefit levels, along
implementing these recommendations will be
ted to the Personnel Director. Follow-
ill make any changes which are appropriate
? report.
bmmenda t ions
briefing the City Management and City
- 10 -
Council as appro1
the final recommc
questions which m
iate on the outcome of the study to explain
idations of the study and to respond to any
g arise.
- 11 -
.
--
e
This section descr pes the proposed costs and our anticipated
project schedule. This proposal will be valid for sixty days. I A. cost -
I Quality deliverab es do not result from "low-budget, cut-
corner" approach
experienced or I
sophisticated tec
nical proposal,
work plan, whict
We estimate that
285 hours of con
our fees for this
$1,450 to cover
on the hours of
appl i cab1 e hour 1 y
asslstance. If
hours, you will
If we are asked
scribed under PI
additional fees :
will you be billa
expansion of the
we will bill you
to date.
; nor do they result from assigning in-
erskilled consultants to do complex and
cal work. As can be seen from our tech-
have developed a comprehensive, rigorous
ill be carried out by senior personnel.
r assistance on this project will require.
tant time. Based on the estimated hours,
sistance will be $15,400 plus an additional
:-of-pocket expenses. Our fees are based
onsulting assistance provided times the
lly rates of the consultants providing the
are able to complete the work in fewer
billed only for the actual time expended.
perform additional work beyond that de-
ect Methodology, we would advise you of
such work before proceeding. In no case
for more than $16,850 unless you approve an
ope of work. As is our standard practice,
ithly for actual fees and expenses incurred
- 31 -
We are prepared work on this study within ten days
of receiving to proceed. Be estimate that the
project wifl six and eight weeks to complete.
Subject to of data and tjmely access to
City date of no later than September
complete the study and deliver
the schedule set forth in the
B. Schedule
RFP .
- 32 -