For City Council Meeting September 24,2024
TO: Honorable Mayor and City Council
FROM: Michael Milhiser, Interim City Manager
BY: Shama Curian, Director of Human Resources and Risk Management
Title
Request City Council to Consideration of Professional Services Agreement With Public Sector Personnel Consultants for a Total Salary and Compensation Study in the Amount of $100,000, and Adopt Resolution No. 8295 Amending the 2024-25 FY Budget for a Budget Appropriation in the amount of $100,000
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RECOMMENDED ACTION
Staff recommends that the City Council Approve, Authorize, and direct the Interim City Manager to execute a Professional Services Agreement with Public Sector Personnel Consultants for a Total Salary and Compensation Study in the amount of $100,000 and Approve Resolution No. 8295 Amending the 2024-25 Fiscal Year Budget for a Budget Appropriation in the amount of $100,000.
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SUMMARY
A Total Salary and Compensation Study evaluates base salary, special compensation, and benefits to provide a comprehensive picture of the City’s external competitiveness within the labor market. Proposals were solicited for a Total Salary and Compensation Study from qualified consultants to evaluate how the City compares with the regional market for similar public sector positions. The Request for Proposals went live on July 2, 2024, with a deadline of July 31, 2024.
The City reviewed six proposals and interviewed the top three consulting firms. All firms interviewed were deemed qualified to complete the study; the proposed cost, flexibility, customization, and experience of Public Sector Personnel Consultants best fits the City’s needs. It is recommended that the City Council approve, authorize, and direct the Interim City Manager to execute a Professional Services Agreement with Public Sector Personnel Consultants for a Total Salary and Compensation Survey in the amount of $100,000. A copy of the proposed Professional Services Agreement is attached to this staff report.
BACKGROUND
The City last conducted a compensation study for the previous 2023 negotiations. That Salary and Compensation Study began in late December 2022 with the City having the final draft in late July 2023. Since negotiations began later than expected, much of the data from that survey became stale and/or outdated. Because of this, as well as not all the positions were surveyed, the bargaining groups felt that the data was inaccurate and didn’t want to rely on the information presented. So, towards the end of these negotiations, the City Council had directed staff to complete another Total Salary and Compensation study in preparation for the upcoming negotiations.
Conducting a Total Salary and Compensation study is a common practice in human resources to gather information and ensure that the City is aware of changes in the marketplace. Such studies provide data that help inform the City of its position in overall compensation, relative to similar situated agencies. While the City’s last compensation project concluded in 2023, the compensation for the benchmarked classifications were not updated from that study.
Conducting another Total Salary and Compensation Study that starts with new base data rather than updating previous data, will allow the City to evaluate current labor market trends and be well-informed for the upcoming labor negotiation discussions.
ANALYSIS/DISCUSSION
The City of Rialto has six bargaining groups in which each of their respective Memoranda of Understanding (MOUs) set forth wages, hours, and other terms and conditions of employment for their unit members. The City’s six bargaining groups are Rialto Police Benefits Association- Management Unit (RPBA-M), Rialto Police Benefits Association- General Unit (RPBA-G), Rialto Fire Management Association (RFMA), Rialto Professional Firefighters’ California Local 3688 (Local 3688), Teamsters Mid-Management and Confidential Employee Union (TMMU), and Rialto City Employees Association (RCEA).
As the terms in the current MOUs are set to expire on June 30, 2025, the City solicited proposals for a Total Salary and Compensation Study to assist in providing a clear picture of the marketplace. The requested scope of work will be to develop of a comprehensive labor market salary survey for the City that reflects the public sector and includes surrounding public sector agencies in similar size to the City of Rialto.
The City received 6 proposals which were evaluated based upon the consulting firm’s understanding of the project, services to be provided, ability to complete the work within a reasonable time frame, cost, and qualifications of the firm, including its experience and personnel assigned to the project. The complete list of proposals is provided below:
• Baker Tilly Advisory, LP
• Gallagher
• Infinite Dimensions Consulting
• MGT of America Consulting, LLC
• Public Sector Personnel Consultants
• Smart IT Pros, Inc.
All firms met the qualification requirements specified in the City’s request for proposals.
Human Resources and Risk Management reached out to all the Bargaining Groups for consideration of one member from each group to be part of the evaluation process. The evaluation committee members were either an evaluator of the 6 proposals or a panel member to interview the top 3 candidates.
Name Title Department/Bargaining Unit
|
Shama Curian |
Director of HR/RM |
HR/RM Department |
|
Sylvia Yglesias |
HR/RM Analyst |
HR/RM Department |
|
Richard Royce |
Sergeant |
RPBA-Management |
|
Kevin Stapleton |
Battalion Chief |
RFMA |
|
Earl Meredith |
Fire Captain |
Local 3688 |
|
Monica Ellefson |
Fleet Services Coordinator |
RCEA |
|
Kim Dame |
Administrative Analyst |
TMMU |
Following the review of all proposals by the panel, the top three highest ranking firms were Koff & Associates, Public Sector Personnel Consultants, and Baker Tilly. Based on the overall depth of the proposal, cost of the proposal, experience with California public sector agencies, and flexibility, it was determined that Public Sector Personnel Consultants (“PSPC”) are the most qualified to conduct the study at this time. PSPC has 32 years of compensation and consulting experience in the public sector, with an extensive amount of agencies in California, including recently serving 24 public agencies.
The proposed cost from PSPC includes project planning, stakeholder meetings, a total compensation survey with multiple comparator agencies, briefings, and final presentations.
The services provided in the study will include the following:
• Project planning and scheduling meetings with designated City staff
• Comprehensive review of background documents
• Policy input and project direction meeting, including brief presentation
• Communication and progress reports
• Custom salary and benefit survey, and analysis of the market data; and
• Preparation and presentation of final project reports
The approach of PSPC uses to conduct a Total Salary and Compensation Study is customized to the specific needs and objectives of their clients. Coupled with their extensive public agency experience, PSPC is the best fit for the Study, and therefore it is recommended that PSPC be awarded the Professional Services Agreement.
ENVIRONMENTAL IMPACT
This request is not a Project as defined by Section 15378 of the California Environmental Quality Act (CEQA) Guidelines. A “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. Pursuant to Section 15378 (b)(5), a project does not include organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY
This action is consistent with Guiding Principle 3A in the General Plan:
“Our City government will lead by example, and will operate in an open, transparent, and responsible manner that meets the needs of the citizens and is a good place to do business.”
LEGAL REVIEW
The City Attorney has reviewed the Professional Services Agreement and has approved it as to form.
FINANCIAL IMPACT
Operating Budget Impact
Public Sector Personnel Consultants’ proposed services for the Total Salary and Compensation Survey is $100,000. A budget appropriation of $100,000 is needed to cover the costs of the contract. The direction to conduct another salary and compensation survey was given after the FY2024-2025 Budget was adopted.
Capital Improvement Budget Impact
There is no impact to the Capital Improvement Budget through this action.