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HomeMy WebLinkAboutAgenda - 06-25-2001-9d~ ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 25, 2001 Action Agenda Item No. ~ ~ -- SUBJECT: RFP Award: Countywide Classification and Pay Study __ DEPARTMENT: Personnel PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Copy of Request for Proposals INFORMATION CONTACT: Elaine Holmes, Personnel Director, Extension 2550 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To consider awarding the Request for Proposals (RFP) far a countywide classification and pay study to Condrey and Associates and to authorize the Manager to execute the contract for the study. BACKGROUND: At the April 16, 2001 Board of Commissioners' work session, the Board authorized the Personnel Director to seek proposals and identify a consultant to conduct a Classification and Pay Study of the County's 725 permanent positions. The Board also asked the Personnel Director to include in the request for proposals the option of a Pay Equity Study in addition to the Classification and Pay Study, contingent on availability of funding. RFP Process Personnel developed a Request for Proposals (attached) to solicit consultant proposals for the studies. The RFP was distributed to five consultants most noted in this area for performance of classification and pay studies. Four consultants submitted proposals. These were Condrey and Associates, DMG Maximus (formerly David M. Griffith Associates), Fox Lawson and Springsted, Inc (formerly Municipal Advisors, Inc). One (the MAPS Group) did not. A committee made up of Purchasing Director Pam Jones, Personnel Analyst Elgin Lane and Personnel Director Elaine Holmes reviewed each proposal and interviewed each consultant. The interview step was extremely important in determining the quality of service and level of experience to be provided by each consultant. Factors considered in the consultant selection included price, quality of past studies, including timeliness and responsiveness to local needs, effectiveness in working with employees, supervisors and management to accomplish study work and experience levels of staff to be used in the study. Prices quoted for the study ranged from about $64,000 to $106,000. As a result of the review and assessment process, staff recommends the RFP be awarded to Condrey and Associates at a price of $71,250. Condrey and Associates Condrey and Associates is a human resources consulting firm located in Athens, Georgia. This firm specializes in services to state and local government. Dr. Steve Condrey is President of Condrey and Associates, Program Director for Human Resource Management Technical Assistance with the University of Georgia's Carl Vinson Institute of Government and an adjunct professor at the University of Georgia where he teaches in the Master of Public Administration program. Dr. Condrey will serve as project manager for the study and be present throughout all phases of the study. Staff believes that Condrey and Associates will best meet the County's classification and pay study needs and recommends the selection of this firm for the following reasons: ^ Best combination of price and value of services. ^ Commitment to doing the study the way the County needs to have it done. ^ Commitment to interviewing 75 percent or more of County employees as part of the study to assure strong employee involvement in the process. ^ Excellent references including those from the classification and pay study that this firm conducted last year for the Town of Chapel Hill. ^ Use of experienced staff in local government classification and pay studies supplemented with job content experts in areas such as public safety, social work and others. Condrey and Associates proposes to complete the classification and pay study, incorporating all steps set out in the County's request for proposals, for a fixed price of $71,250. Condrey commits to completing the work within the Coun#y's required time schedule to have results ready for consideration as part of the budget process for 2002-03. Pay Equity Study As the Board requested, Personnel incorporated a request for pay equity study proposals in the RFP. Of the four consultants submitting proposals, three (Condrey, DMG Maximus, and Fax Lawson) also submitted pay equity study proposals. The prices quoted for the pay equity study proposals ranged from $8,875 to $43,000. The prices quoted reflected the wide range of haw consultants might approach and conduct such a study. All of the consultants pointed out in their classification and pay study proposals their belief that the valid internal alignment of positions through well designed jab classification methodology and assignment of compensation rates in accordance with the relative value of each job determined through the job classification system will address most equity issues. Condrey and Associates offered at no additional charge beyond that quoted for the classification and pay study to conduct statistical analyses to evaluate the relative equity of the recommended job classification plan resulting from the classification and pay study. Given the funding available, difficulty of projecting at this time the specific pay equity study needs that will remain after completion of the classification and pay study and wide divergence of proposals, staff recommends the County hold off for now on attempting to contract for a pay equity study. Staff recommends that the County complete the classification and pay study, take advantage of Dr. Condrey's offered statistical analysis, identify the specific pay equity issues/needs remaining, if any, and issue a request for proposals tailored to those needs. FINANCIAL IMPACT: Condrey and Associates fee for the classification and pay study is $71,250. This is inclusive of all the services to be provided. The recommended budget far 2001-02 includes $65,000 in funding for the classification and pay study. Personnel has funds available within the recommended Personnel Department budget for 2001-02 that can be realigned to make up the funding shortfall of $6,250. RECOMMENDATIONS): The Manager recommends that the Board approve awarding the RFP for the classification and pay study to Condrey and Associates, authorize the Personnel Director to draft the contract for services, subject to the review of staff and the County Attorney, and authorize the Manager to execute the contract. 4 Attachment May 11, 2001 Request for Proposals to Conduct a Position Classification and Pay Study and a Pay Equity Study for Orange County, North Carolina Orange County is seeking proposals for a Classification and Pay Study (Item A) and a Pay Equity Study (Item B). Proposals are to be submitted to the Orange County Personnel Department by Monday, June 4,2001 (Item C). Consultants may submit proposals on either the Classification and Pay Study or Pay Equity Study or both studies. A. Classification and Pay Study Purpose Orange County is seeking a consulting firm to conduct a countywide, comprehensive Classification and Pay Study for approximately 725 Permanent County positions. Objective To develop a competitive and equitable classification and pay system including: • Reassessing internal salary relationships among the approximately 725 positions and • Establishing or re-establishing the County's position in the labor market in relation to other employers. Background The' Orange County Board of Commissioners has authorized the Orange County Personnel Director to seek proposals and identify a consultant to conduct a Classification and Pay Study. The County Commissioners plan to appropriate funds for the study as part of the 2001-02 budget and authorize the contract with the consultant selected at the Board's final meeting in June 2001. The Board of Commissioners also may be interested in pursuing a Pay Equity Study, contingent upon the cost to do so and available funding. To that end, respondents are requested to include as a separate amount, a quotation to conduct the Pay Equity Study. Consultants are requested but not required to submit pricing for both studies. The Classification and Pay Study and Pay Equity Study may be awarded separately. Orange County has about 725 positions in a total of 29 departments. The largest departments are Social Services, the Health Department and the Sheriff s Department. The attachment shows the number of full time equivalent positions for each department. Existing Classificatian and Pay Plan The last comprehensive classification and pay study was conducted in 1990 and was implemented in 1991. Presently there are 251 classes and written class specifications for each class. The current classification plan uses point/factor rating methodology and is administered by Personnel Department staff. Each classification is assigned to a salary grade in the County pay plan from Salary Grade 58 to Grade 88. The salary grades are about five percent apart. Within each salary grade there are predefined steps from Step 1 through Step 11B with a total spread of 59 percent from each salary range minimum to maximum. Scope of the Study -Classification Portion Orientation meetings. The consultant with the participation of the Personnel Director and Personnel Analyst will meet with Department Heads and employees to discuss the study objectives, explain the study plan and methodology and to discuss the work components of the study. This will include requesting completed position description questionnaires. There are about 670 employees (725 positions) located in Hillsborough and Chapel Hill. Multiple sessions (approximately 10) will be needed on several different days and at different times. Timeframe: Begin in July and complete no later than mid-August. 2. Position descriptions, salary Izandbooks, organization charts, existing class specifications and other job-related information. Personnel will coordinate requesting and receiving an updated position description completed by each permanent employee. Personnel will provide these descriptions to the consultant for use in reviewing the duties and responsibilities of positions. The County has an existing position description questionnaire that may be used for this purpose or the consultant may use its own position description form, with the advance review and approval of the Personnel Director. In addition to the position descriptions, Personnel will provide the consultant with a copy of the County salary handbook, organization charts, existing class specifications and other job-related information. Timeframe: Position descriptions to be received by September 30, 2001. Different deadlines for receipt of information could be established for different groups, but all should be completed by the end of September. 3. Desk Audits/Interviews. The consultant will conduct desk audits/interviews with representative employees in each class and supervisors to review, clarify and understand duties and responsibilities. In order to assure good information gathering, a smooth process and acceptance by employees, a high percentage of interviews is expected (at least 50 percent and preferably more). If there are several positions assigned to a class, the consultant may choose to conduct a group interview or interview a representative number of employees. However, at least one interview will be conducted far each class of positions. The consultant will conduct a conference with each department head to review and verify information presented on the position description questionnaires and in the interviews and to receive the department head's input on any position classification and pay issues in that department. Timeframe: Interviews may begin in September and are to be completed by mid-December. 4. Classification Recommendations and Class specificativns. Following the review and field audit of existing positions, the consultant will identify class groupings and tentative allocations and review these with Personnel. The consultant then will draft class specifications for any recommended new classes and will update existing class specifications for any classes where the information on the existing class specification has changed. The present format for the County's class specifications is as follows: General Definition of Work; Typical Tasks; Knowledge, Skills and Abilities; Education and Experience; and Special Requirements such as licensure (if applicable). The consultant will deliver class specifications as a draft, review these with Personnel and departments and incorporate any necessary changes. Timeframe: Draft allocations are to be ready for discussion with Personnel staff by early January 2002. Scope of the Study -Pay Portion 1. Labor Market Survey. The consultant will conduct a market salary survey by gathering comparable salary information from 12 other North Carolina counties and four Research Triangle area municipalities. / The twelve counties are Alamance, Cabarrus, Chatham, Durham, Forsyth, Gaston, Guilford, Mecklenberg, Ferson, Rowan, Union and Wake. These counties are either located in or very close to the three major developing economic regions of the state -Research Triangle, Fiedmont Triad and Metrolina. / The four area municipalities are the Town of Cary, Town of Chapel Hill, City of Durham and Raleigh. The survey will include benchmark classes and in addition should incorporate a variety of specialized positions as determined in conjunction with the Personnel Director. Salary survey data collected must include salary range minimums and maximums, actual salaries paid and the number of positions so that weighted averages may be determined. 2. Analysis affindings and recommendations. The consultant will evaluate the salary grade assignment for each class based on the review of duties and responsibilities and salary survey. From this analysis, the consultant will recommend a classification and salary grade assignment for each position in the existing County salary schedule. The consultant also will recommend a salary implementation plan for the study results along with estimated costs. Timeframe: Draft allocations are to be ready for discussion with Personnel staff along with salary data and tentative implementation cost figures by the end of February 2002. Communications Preliminary results to Personnel and Department Heads. The consultant will present preliminary findings and recommendations to Personnel. The consultant will meet with Personnel, the Manager, department heads and supervisors of major units to explain findings and present recommendations. Before information is distributed to employees the department heads will review class specifications and pay recommendations and suggest any changes needed. The consultant must be available for individual meetings with department heads to discuss questions or issues related to recommendations, as needed. The consultant will consider and respond to any feedback or issues arising from the department head reviews and provide Personnel with any updating to preliminary results following the department head reviews. 2. Preliminary Results to Employees. The departments and Personnel will carry out most of the communication with employees. A limited number of telephone calls or meetings may be required by the consultant to explain recommendations. General information to employees and explanation to employees of decisions are considered a part of the basic project. 3. Final results and reconzmendatians to Personnel. The consultant will advise Personnel of final results and recommendations. The consultant, Personnel Director and Personnel Analyst will inform department heads of final study results. 4. Final Results to Employees. Personnel and department heads will inform employees. Again at this stage a limited number of telephone calls or meetings may be required by the consultant to explain recommendations and address initial employee appeals. Again, general information to employees and explanation to employees of decisions are considered a part of the basic project. Timeframe: Communications completed and classification and pay information ready for inclusion in the Manager's Recommended Budget by the end of March 2002. Appeals For employee appeals not resolved by communications and discussion at the preliminary and final results steps above, Personnel may request additional information from the consultant (either written or oral) as to the basis for recommendations. This will be considered part of the basic project. For more extensive appeals requiring steps such as re-interviews, second meetings with employees ar additional market data once the study is completed, the County would contract separately with the consultant for such work on a hourly basis. Timeframe: By the end of May 2002 Presentation to Board of County Commissioners The consultant, Personnel Director and Personnel Analyst will present the classification and pay study results and recommendations to the Board of County Commissioners. A follow-up presentation may be necessary. Timeframe: Mid April 2002 8 Products Ta Be Delivered 1. A written report (10 copies) that includes, but may not be limited to the following: a) Description of study methodology b) Summary of findings and recommendations, including position classifications, assignment of classes to salary grades; description of recommended salary implementation plan and the like. c) Salary survey analysis worksheets, including raw salary data and data analyzed showing averages and weighted averages 2. Lists of recommended classes and salary grade assignments: a) In alphabetical order by class b) By occupational grouping c) By salary grade This shall be provided as hard copy and electronically in Excel format. Data submitted in other than Excel format must be compatible with and easily converted to Excel format. 3. Updated and/or new class specification for each recommended class using Orange County's present specification format of General Definition of Work; Typical Tasks; Knowledge, Skills and Abilities; Education and Experience; and Special Requirements. This should be provided as both hard copy and electronically in Word format. Data submitted in other than Word format must be compatible with and easily converted to Ward format. 4. An allocation list by department showing each employee by name, present classification, proposed classification, present salary grade, proposed salary grade, present, step and salary and proposed step and salary (under the recommended salary implementation plan). This shall be provided as a hard copy and electronically in Excel format. Data submitted in other than Excel format must be compatible with and easily converted to Excel format. 5. Estimated implementation costs under the recommended salary implementation plan. Consultant Expectations • The selected consultant must have knowledge of current position evaluation and pay methodologies. • The consultant must have prior experience in completing classification and pay studies in public sector organizations. • The consultant shall not subcontract any portion of this study without the express written agreement of the County. 9 • The consultant shall involve the Orange County Personnel Director and the Personnel Analyst in all phases of the study. • The consultant will orient the Personnel Director and the Personnel Analyst to the job evaluation methodology that will be used. • Orange County expects the consultant's project manager to be a strong participant in the study so that he or she can answer detailed questions from Personnel, department heads and employees about the study results and recommendations. Proposal Requirements Proposals submitted must include the following information: 1. Indication that the consultant will meet the requirements outlined in this request for proposals. 2. Information describing the consultant's plan for conducting the study, including a projected timetable specifying the projected time far study completion, as well as each phase of the study. 3. A description of the specific job evaluation methodology that the consultant will use. In this, indicate specifically whether points or a numerical rating system are used in the job evaluation rnethodolagy. 4. A list of items and/or additional support needed from Persomiel staff, including functions that are anticipated to be completed solely by Personnel staff. 5. Name of the person who will direct the study, conduct interviews, and attend meetings. Background information on this person's qualifications. 6. Name(s) of the person(s) who will assist in the study and background information on these persons. Orange County retains the right to pre-approve any other consultants who might assist with the interviews or other portions of the study that involve interactions with County employees and officials. 7. A brief history of the consulting firm and North Carolina local government references. 8. The total cost for the classification and pay study. B. Pay Equity Study Purpose Orange County is requesting that consultants submit proposals to complete a Pay Equity Study either as part of the Classification and Pay Study or as immediate follow on to the study. Background The Board of Commissioners also may be interested in pursuing a Pay Equity Study, contingent 10 upon the cost to do so and available funding. To that end, respondents are requested to include as a separate amount, a quotation to conduct the Pay Equity Study. Consultants. are requested but not required to submit pricing for both sections of the study. The Pay Equity Study and the Classification and Pay Study may be awarded separately. Objective Orange Counity wishes to assure that its job evaluation and pay system treats all employees in an equitable manner without regard to race or gender. To this end, the County wishes to evaluate the internal equity of jobs within the recommended Classification and Fay Plan resulting from the comprehensive Classification and Pay Study and identify any recommended adjustments and the associated costs to provide that jobs which involve comparable skill and responsibility are compensated equally. The County is seeking to assure that jobs are not undervalued because the work is performed predominantly by women and,minorities. Scope oI' the Study For the approximately 725 County positions, the Pay Equity Study would include at least the following elements: l . Pay Equity Analysis Using as a base the job information from the Classification and Pay Study, objectively measured criteria such as job evaluation points and employee data provided by the Personnel Department, assess the internal equity relationships, including whether jobs predominantly held by minorities or women are undervalued in relation to other jobs. 2. Pay Equity Recommendations From the pay equity analysis, identify any recommendations necessary to provide that jobs that involve comparable skill and responsibility are paid at similar rates without regard to the predominant race or sex of employees in the class. 3. Pay Equity Salary Implementation Plan and Costs Starting from the base of the recommended salary implementation plan for the Classification and Pay Study, develop a recommended salary implementation plan for the Pay Equity Study results and estimated implementation costs under the recommended plan. Communications 1. Preliminary Results The consultant will present preliminary findings and recommendations to Personnel. As needed the consultant will meet with Personnel, the Manager, and department heads to explain findings, discuss recommendations and receive feedback. I1 2. Final Results The consultant will advise Personnel of final results and recommendations. Personnel and department heads will inform employees. Presentation to Board of County Commissioners The consultant, Personnel Director and Personnel Analyst will present the pay equity study results and recommendations to the Board of County Commissioners. A follow up presentation may be necessary. Products to be Delivered 1. A written Pay Equity Study report (10 copies) that includes but may not be limited to the following: / Description of specific methodology / Summary of findings / Summary of recommendations / Recommended salary implementation plan 2. List of classes and recommended salary grade assignments: / In alphabetical order by class / By occupational grouping / By salary grade This shall be provided as hard copy and electronically in Excel format. Data submitted in other than Excel format must be compatible with and easily converted to Excel format. 3. Worksheet showing estimated implementation costs under recommended salary implementation plan. This shall be provided as hard copy and electronically in Excel format. Data submitted in other than Excel format must be compatible with and easily converted to Excel format. Proposal Requirements Proposals submitted must include the following: 1. Information describing the consultant's plan for conducting the study, including a projected timetable for study completion as well as each phase of the study. (Nate: The County desires that the study be completed no later than May 1, 2002.) 12 2. A specific description of the pay equity study methodology that the consultant will use in arriving at findings and recommendations. 3. A list of items and /or additional support needed from Personnel staff, including any functions that are anticipated to be completed solely by Personnel staff. 4. Name of the person who will direct the study, conduct interviews, and attend meetings. Background information on this person's qualifications. 5. Name(s) of the person(s) who will assist in the study and background information on these persons. Orange County retains the right to pre-approve any other consultants who might assist with the interviews or other portions of the study that involve interactions with County employees and officials. 6. A brief history of the consulting firm and North Carolina local government references. In this cite any specific pay equity study experience. 7. The total cost for the Pay Equity Study. C. Proposal Submission and Award Proposals for the Classification and Pay Study and/or Pay Equity Study shall be submitted to: Elaine Holmes, Persomnel Director Orange County Personnel Department P.O. Box S 181 Hillsborough, NC 2727$ Telephone: (919) 245-2552 Fax Number: (919) 644-3009 Proposals must. be, received in_the Personnel Department not later than 5:00_pm EST on Monday, June 4, 2001 T Basis for Award -- Consultants may submit proposals on either the Classification and Pay Study or Pay Equity Study ar both studies. Proposals may be awarded to either a single consultant or to two separate consultants, at the County's sole discretion. The County may choose to accept or reject any and all proposals. The selection process may include an interview for the top candidate(s) with the Personnel Director and other County staff. The interview and staff recommendation process is anticipated for completion no later than June 20, 2001 with Board of County Commissioners consideration slated for June 25, 2001. The successful candidate will be notified of the Board's action within two days. Questions about the Request for Proposals may be addressed to Elaine Holmes, Personnel Director at (919) 242-2552. 13 Attachment Full Time Equivalent Positions By Department Function Department Full Time Equivalent As Of April 2000 Comm Maint Commissioners Office 4.00 Comm Maint Elections 4.00 Comm Maint Soil and Water 5.00 Subtotal 13.00 Comm Planning Planning 28.00 Comm Plannin Economic pevNisitor Ser 9.75 Comm Plannin Environment/Resource Conservation 4.00 Subtotal 41.75 General Admin Manager's Office 11.00 General Admin Personnel 7.00 General Admin Finance 5.75 General Admin Budget 3.00 General Admin Purchasing/ Central Services 6.00 General Admin Information Systems 6.60 Subtotal 39.35 Human Services Social Services 134.70 Human Services Health 95.46 Human Services Coop Extension 10.00 Human Services Recreation 12.00 Human Services Aging/Org Public Trans 29.50 Human Services Human Rights/Relations 5.75 Human Services Housing 6.00 Human Services Library 12.33 Human Services Child Support 12.00 Subtotal 317.74 Public Safety Sheriff 122.50 Public Safety Emer ency Management 54.00 Subtota! 176.50 Public Works Public Works 52.00 Public Works Solid Waste 30.00 Subtotal 82,00 Tax and Records Register of Deeds 15.75 Tax and Records Tax Assessor 15.00 Tax and Records Land Records 7.00 Tax and Records Revenue 10.00 Subtotal 47.75 Other (CETA) Tota I 718.085