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HomeMy WebLinkAbout12 Total Compensation Survey PROPOSAL For A TOTAL COMPENSATION MARKET SURVEY For The TRUCKEE DONNER PUBLIC UTILITY DISTRICT Submitted by: KOFF & ASSOCIATES, INC. 18 Crow Canyon Court Suite 165 San Ramon,CA 94583 925.831.9794—voice 925.831.9322—fax E-mail: gkrammer@koffassociates.com Contact Person Georg Krammer Chief Executive Officer e March 31, 2006 Ms. Nancy Waters Human Resources Administrator Truckee Donner Public Utility District 1 1570 Donner Pass Road Truckee, CA 96161 RE: Request for Proposal: Total Compensation Study Dear Ms. Waters: Thank you for including us in your Request for Proposal process. We are most interested in assisting your District with this important study. We are experienced public-sector consultants who have been conducting similar studies for cities, counties, courts and special districts (PUD, water, wastewater, education, fire, community service, air quality management, housing, transportation, solid waste, hospital and higher education districts) for over 22 years. Having recently completed a similar study for Truckee Sanitary District, we are familiar with the various agencies within the Truckee/Tahoe basin and have already developed good working relationships with each agency. Koff& Associates has achieved a reputation for working successfully with management, employees and union representatives. We believe in a high level of dialogue and input from employees and management and our proposal speaks to that level of effort. That extra effort has resulted in close to 100% implementation of all of our classification and compensation studies. Koff & Associates, Inc. is a small firm that accepts only as much work as our staff can handle. This assures a high level of quality control, excellent communication between clients and our office, commitment to meeting timelines and budget, and a consistent high-caliber work product. We encourage you to contact our references. As Chief Executive Officer of the firm, I would assume the role of Project Director and be responsible for the successful completion of this project. I can be reached at the San Ramon address and phone number listed below. My e-mail address is: gkrammer@koffassociates.com. Please call if you have any questions or wish additional information. We look forward to the opportunity to provide professional service to the Truckee Donner Public Utility District. Sincerely, �( Georg S. Krammer Chief Executive Officer PROPOSAL For A TOTAL COMPENSATION MARKET SURVEY For The TRUCKEE DONNER PUBLIC UTILITY DISTRICT TABLE OF CONTENTS Page No 1. Understanding of the Project........................................................... I 2. Qualifications of the Finn.......--............................. 2 3. Project Team..............................................................................3 4. References.............................................................................. ..5 5. Work Plan and Methodology...........................................................7 6. Deliverables............................................................................. t l 7. Expectations of District Support......................................................I 1 8. Project Schedule........................................................................ 12 9. Insurance Requirements........................................................... ...12 Proposed Costs...................................................................Under Separate Cover Attached—Sample Work Products UNDERSTANDING OF THE PROJECT The Truckee Donner Public Utility District desires consultant assistance to conduct a total market salary survey for fifteen (15) management positions and sixteen (16) union positions within the District's organizational structure. The scope of work includes a total compensation market survey (salary and benefits) using a core of up to 12 electric and water agencies within the District's labor market area. Our study will then make specific recommendations for internal equity for any non-benchmarked positions should they not be surveyed and/or if external data collection did not include a large enough sampling from which to draw conclusions. An Interim Report and Final Report will include all findings and analysis. Our final product will also include a recommended Compensation Plan that will contain specific recommendations regarding a salary schedule and the integration of all classifications into a clearly designed, internally equitable format that is flexible for career opportunity and future growth. The study process also includes meetings with your management group, the union representatives as well as meetings with your Board of Directors. These meetings ensure understanding of the project parameters, enhance accurate intake and output of information and improve a collaborative and interactive approach that will result in greater buy-in for the study recommendations. This interactive approach, although time-consuming, has resulted in almost 100% implementation success of Koff & Associates, Inc. studies. In addition to a complete record of study processes and recommendations, our proposal also provides documentation for management in internal compensation methodologies so that the District can integrate and maintain the Plan after the initial implementation. Compensation Obiectives > To review and understand all current documentation, rules, regulations, policies, procedures, class descriptions, organizational charts, Memoranda of Understanding and related information so that the new plan can be operationally incorporated with a minimum of disruption; 7 To collaboratively identify and then independently collect accurate salary and benefit data from the approved group of comparator agencies and to ensure that this information is analyzed and explained in a manner that is clear and comprehensible to your employees, management staff and governing Board; > To carefully analyze the scope and level of duties and responsibilities, requirements for successful work performance and other factors for survey classes according to generally accepted compensation philosophy and best practices; March?1,2006 Page 2 of 12 Overall Obiectives r To document all steps in the process so that the compensation plans may be maintained in the future; and To provide ongoing communications throughout the duration of the project. QUALIFICATIONS OF THE FIRM Koff & Associates, Inc. is a public sector human resources consulting firm that was founded in 1984 and has been assisting cities, counties, and special districts for the past twenty-two (22) years. We are familiar with various public sector organizational structures, agency missions, operational and maintenance requirements and staffing expectations. We have extensive experience working in both non-union and union environments(including serving as the management representative in meet & confer and negotiation meetings), working with City Councils, Boards of Supervisors, Merit Boards, Joint Power Authorities and Boards of Directors. We have excellent rapport with all public sector unions and, if requested, can provide specific business agent references. Specific client references are provided below. The firm's areas of focus are compensation and classification studies; policy/procedure development and employee handbooks; executive search and staff recruitments; performance management issues; and serving as off-site FIR Director for our smaller public agencies that need the expertise of an HR Director but do not need a full-time, on-site professional. For the past several years, the firm's significant workload(almost 70%) has been in the areas of classification studies and extensive total compensation reviews(samples of work products are included for your review). Without exception, all of our classification and compensation studies have successfully met all of our intended commitments;communications were successful with employees, supervisors, management and union representatives; and we were able to assist each agency in successfully implementing our recommendations. All studies were brought to completion within stipulated time limits and proposed budget. The firm's growing list of clients is indicative of its reputation throughout California as being a quality organization that can be relied upon for producing comprehensive, sound and cost-effective recommendations and solutions. Koff& Associates, Inc. has a reputation for being "hands-on" with an ability and expertise to implement its ideas and recommendations through completion in both union and non-union environments. Koff & Associates, Inc. relies on our stellar reputation and on the recommendations and referrals of current clients to attract new clients. Our work speaks for itself and our primary goal is to provide professional and technical consulting assistance with integrity, honesty and a commitment to excellence. We invite you to contact anyone on the Client List as a referral. PROJECT TEAM Professional qualifications of staff that will be included in this study are: March 31, 2006 Page 3 of 12 Gail Koff Managing Director Gail Koff, Principal and Founder of Koff & Associates, Inc. for 21 years and now its' Managing Director, has over thirty (30) years of human resource management experience, 27 years of which have been serving the needs of public agencies. Gail's prior experience, after receiving her degree from Boston University, includes serving as the Personnel Director for one of California's largest sanitary districts, Central Contra Costa Sanitary District as well as the Personnel Director for the California College of Arts and Crafts. She has spent the last twenty one (21) years in her own firm providing consulting assistance to cities, counties and special districts (housing, transit, water, wastewater, hospital, school, community service, air quality management, fire, etc.). She specializes in strategic development; labor/management issues; classification and job analysis; compensation design and pay for performance strategies; executive search; employee handbooks and policy direction; performance management; and organizational efficiency issues. Gail is familiar with the unique problems of public agencies and has worked extensively with publicly elected Councils, Boards, Commissions, numerous unions, management and employee groups. She works closely with the staff throughout the entire process to ensure success. Gail is actively engaged throughout the study's progress to ensure quality control, timeliness and meeting client expectations. Catherine Kaneko,C.P.A.,P.H.R. President Catherine brings over thirteen (13) years of management level human resources experience to Koff& Associates, Inc., both as a human resources director and as a management consultant in the hi-tech industry as well as the public sector. She has extensive experience in compensation including equity plans, survey design and reporting, recruitment in both the public and private sector; staffing; classification and job analysis; compensation and job evaluation techniques, employee relations, retention strategies, infrastructure development; coaching; policy and procedure development; mergers and acquisitions; change management and employee training. With a Bachelor's Degree in Business Administration, Catherine started her career as a Certified Public Accountant (CPA) in an international accounting/consulting firm. She transitioned into Human Resources within the firm to become the Human Resources Director of the San Francisco office. She then moved into the hi-tech industry where she served in leadership positions for high-growth, startup, and organizations in transition. Her primary focus in recent years has been in classification, compensation and recruitment services in the public sector. Catherine's experience provides a broad knowledge of human resource management within diverse organizations. Her background provides her a strong ability to understand the big picture, identify problems and solutions and effectively implement them. Her skill set complements our current consultant base with additional levels of service areas. %larch 3 L 2())6 Page 4 of 12 Georg S. Krammer, M.B.A.,S.P.H.R. Chief Executive Officer Georg brings over eight (8) ,years of management-level human resources experience to K&A with an emphasis in classification design; market salary studies; executive and staff recruitment; performance management; organizational development; and employee relations, both in large corporations, small, minority-owned businesses and public sector agencies. After obtaining a Master's Degree in English and Russian and teaching credentials at the University of Vienna, Austria, Georg came to the United States to further his education and experience and attained his MBA from the University of San Francisco. After starting his human resources career in Wells Fargo Bank's college recruiting department, he moved on to human resources management positions in the banking and high-tech consulting industries. With his experience as a well-rounded senior HR generalist and his education in business and teaching, Georg's contribution to K&A's variety of projects greatly complements our consulting team. Since joining K&A, Georg has worked on multiple classification and compensation projects for over 30 clients in the public sector and has taken an active leadership role in many of our classification and total compensation studies. Georg will be the Project Director for this study to ensure close coordination of client needs throughout the project. Milana Targan Firm Associate Milana brings her public sector experience in classification and compensation to Koff&Associates, Inc. With a bachelor's degree from USF and a Master of Science in Industrial/Organizational Psychology from San Francisco State University, Milana has had extensive experience in job analysis, classification development, compensation data gathering and analysis and completing special projects relating to a variety of human resources issues. Her experience also includes conducting specific job analysis for the purpose of developing validated test questions for public sector entrance and promotional examinations. She has worked for an affirmative action consulting practice as well as the California Public Utility Commission conducting job analysis, classification development, market salary analysis and human resource management program design. Jeremy Hannah Jeremy, the newest member of our firm, earned his bachelor's degree in Psychology with a minor in General Management from California State Polytechnic University, Pomona and will be completing his Master of Science in Industrial/Organizational Psychology in May 2006. After working for five (5) years in management in private organizations, Jeremy moved into the public sector to work for the California Public Utilities Commission performing job analysis, designing selection examinations, conducting employee opinion surveys, and developing human resource selection examinations, conducting employee opinion surveys, and developing human resource management processes. He has :March 3 1.2006 Page 5 of 12 extensive data gathering and analysis experience making him a welcome addition to the Koff & Associates team. REFERENCES (a list of references from our most current studies) Truckee Sanitary District Contact: Mr.Tom Selfridge Classification & total compensation study General Manager/Chief Engineer (530)550-3122 Trinity PUD Contact: Mr. Rick Coleman Agency human resources audit& General Manager complicated total compensation study when (530)623-4564 PUD took over the County Hospital City of Pinole Contact: Ms. Belinda Espinosa Citywide classification study. City Manager Compensation study awarded (510)724-8933 non-competitively following successful completion of the class study. Central Marin Sanitation Agency Contact: Mr.Jason Dow Have served as the District's off-site HR General Manager Director for I8+years conducting class/comp (415)459-1455 X 145 Studies,executive/staff search, employee Handbook development,general RR issues Butte County Contact: Mr.Paul McIntosh Countywide compensation study of 450 Chief Administrative Officer Classifications that required significant (530)538-7224 job analysis& position evaluation Contact: Ms.Jeanne Gravette Director of Human Resources (530)538-7651 Additionally,we have completed similar types of studies for the following agencies: Cities Education City of Alameda Fremont Unified School District City of Atherton Huntington Beach School District City of Brisbane UCLA City of Mission Viejo California State University System City of Paso Robles City of Calistoga Special Districts City of Citrus Heights Alameda Corridor-East City of El Cerrito Construction Authority City of Emeryville Alameda County Housing Authority City of Foster City Alameda County Transportation City of Fremont Authority City of Galt Alameda County Water District City of Greenfield Brookside Hospital .March 3 i.ZOob Paee b of 12 Citv of Orinda Calaveras Countv Water District City of Napa Carpinteria Sanitary District City of National City Castro Valley Sanitary District City of Pacific Grove Central Contra Costa Sanitary City of Piedmont District City of Pinole Central Marin Sanitation Agency City of Red Bluff Contra Costa Transit Authority City of Rio Vista Delta Diablo Sanitation District City of San Luis Obispo Dublin—San Ramon Services District City of San Ramon East Bay Municipal Utility District City of Soledad East Palo Alto Sanitary District City of South San Francisco Fairfield-Suisun Sanitary District City of Sunnyvale Feather River AQMD City of Walnut Creek Goleta Sanitary District Groveland Community Services District Counties Ironhouse Sanitary District County of Alameda Housing Authority Las Gallinas Valley Sanitary District County of Contra Costa Mammoth Community Water District County of Los Angeles Marina Coast Water District County of Marin Mendocino Coast District Hospital County of Marin Housing Authority Metropolitan Transit Commission County of San Mateo Napa Sanitation District Contra Costa County Retirement Association Novato Sanitary District Ojai Valley Sanitary District Courts Placentia Library District Superior Court, Amador County Port of Oakland Superior Court, Calaveras County Ross Valley Sanitary District Superior Court, San Mateo County Sanitary District No. 5 of Marin Superior Court, San Benito County Superior Court,Tuolumne County San Ramon Valley Fire District Santa Clara Valley Water District Sausalito—Marin City Sanitary Truckee Sanitary District District South Coast Air Quality Management West Bay Sanitary District District West County Wastewater District Stege Sanitary District WORK PLAN AND IVtETHODOLOGY This section of the proposal identifies the actual work scope. We believe that our detailed explanation of approach and work tasks clearly identifies our approach and comprehensiveness. We have found that, often times, our proposals address a very high level of time commitment; which sometimes results in a higher proposal cost. We believe that our methodology and implementation success rate is attributable to the significantly greater level of contact we have with Board members, employees, management and bargaining unit representatives. The time we commit to working with the xIarch 3 1.2006 Page 7 of 12 employees [Project Team meetings, orientation, bargaining unit representatives, appeal process, etc.) results in a significantly greater buy-in throughout the process and very few, if any, format appeals, at the end of the process. Our clients always provide us feedback that our process was professional, comprehensive, understandable, timely and inclusive. Employees, although not necessarily always happy with our recommendations, have always indicated that we listened to their issues and concerns and were available for discussion, as required. Our approach would be as follows: A. INITIAL DOCUMENTATION REVIEW(MEETING WITH PROJECT TEAM/BOARD OF DIRECTORS This phase includes identifying the key client project team, contract administrator and reporting relationships. We will meet with the client team to create the specific work plan and work schedule; reaffirm the primary objectives, determine deadline dates; determine who will be responsible for coordinating/scheduling communications with employees and supervisors; and develop a timetable for conducting the same. Also included will be the gathering of written documentation, including assembling the current class descriptions, organizational charts, MOU, Personnel Policies and other relevant documentation that has been previously collected. We will also respond to any questions. B. DETERMINE COMPARATOR AGENCIES AND BENCHMARK CLASSIFICATIONS/MEETINGS During the initial meeting with the Project Team, we wilt discuss the compensation study factors that need to be agreed upon. We will discuss the identified comparator agencies, recommended benchmark classifications and benefit data that will be included in the study. Our firm will complete its initial analysis of this section before the first Project Team Meeting so that we will already have a list of agencies and benchmark classifications from which to review with the Project Team and make that initial meeting much more productive. 1. Determination of Comparator Agencies The selection of comparator agencies data is considered a critical step in the study process. We will identify up to 12 comparator agencies for inclusion in the study. Our experience with conducting these studies is that, due to different organizational structure, many times we cannot find a good match at several agencies. Therefore, having a larger list of agencies increases our opportunity to find good, solid market matches. Our analysis usually includes the following when selecting agencies for comparison ➢ Organizational type and structure - While various public agencies may provide overlapping services and employ some staff having similar duties and responsibilities, the role of each agency is somewhat unique, particularly in regard to its relationship to its citizens and level of service expectation. During this iterative process, we look to comparing agencies to agencies, counties to counties, special districts to other special districts. ➢ Similarity of population served, agency staff and operational and capital improvement budgets, housing costs, etc. — These elements provide guidelines in relation to resources required(staff and funding)and available for the provision of agency services. 'March 31. 2006 Page 3 of 12 ➢ Scope of services provided—While having an agency that provides all of the services at the same level of citizen expectation is ideal for comparators, as long as the majorio,of services are provided in a similar manner,sufficient data should be available for analysis. Labor market—The reality of today's labor market is that many agencies are in competition for the same pool of qualified employees. No longer do individuals necessarily live in the community they serve. Therefore, the geographic labor market area(where the agency may be recruiting from or losing employees to) is a significant determinant when selecting potential comparator organizations. Finally, not only do we want to have management and labor to agree on the comparator agencies,but we would also like to get agreement from your Board of Directors. It has been our experience that agreement by all parties, prior to starting the data gathering, ensures a greater chance of market data acceptance and implementation at the conclusion of the study. 2. Determination of Benchmark Classes In the same collaborative manner as described above in Step 1, the classes to be surveyed will be determined. Again, all parties prior to commencement of the data-gathering process should reach consensus. Reviewing your classifications (and the lack of job families) indicate that most of your classifications will be benchmarked. 3. Determination of Salary and Benefits Data to Be Collected Benefit data elements for a total compensation study normally include at least the following, (which are generally available to all staff in a specific job classification). The list of benefits included with the Request for Proposal indicates that the agency desires not only a qualitative, but quantitative analysis of benefits. Our total compensation excel spreadsheets breakdown each of the benefits described below quantitatively so that each benefit is broken down into a monthly cost. We can also show benefits in a summary document so that level of benefit can be reviewed. Shown below are descriptions of those benefits that we normally collect(which can be modified to include any other information you desire): ➢ Monthly Salary — The top of the normal, published salary range. All figures are presented on a monthly basis. We normalize the salary data to reflect working hours and/or "spiking" of PERS benefit. Employee Retirement— This includes two figures: the amount of the employee's State (PERS) or other public retirement contribution that is contributed by the agency and the amount of the agency's Social Security contribution. Many agencies have enhanced their PERS/alternative retirement program and we collect and document these costs also. > Insurance— Health, Dental, Life, Long-Term Disability, Short-Term Disability, Vision, Employee Assistance Program (EAP), etc. ➢ Leave—Other than sick leave, which is usage-based, leave is the amount of days off for which the agency is obligated. All days will be translated into direct salary costs. March 31,2006 Page 9 of 12 • Holidays—The number of holidays (including floating) available to the employee on an annual basis. 3 • Vacation — The number of vacation days available to all employees after five years or employment. ; • Administrative/Personal Leave — Administrative leave is normally the number of days available to management staff to compensate for the lack of payment for overtime. Personal leave may be available to other groups of employees to augment vacation or other time off. ➢ Automobile— This category includes either the provision of an auto allowance or the provision of an auto for official and/or personal use. ➢ Deferred Compensation — This is any deferred compensation provided to all members of a classification, either as an employer matching contribution or as a straight dollar or percentage contribution. ➢ Variable Pay —This category includes other forms of pay that are budgeted and considered as part of the employee's total compensation (in varying degrees). ➢ Other — This category includes any other benefits that are available to all employees within a classification and not already specifically detailed. Benefits that were identified in the R.F.P. such as bereavement leave and transportation allowance would be captured in this section. C. DATA COLLECTION Our firm does not collect market salary data by merely sending out a written questionnaire. We find that such questionnaires are often delegated to the individual in the department with the least experience in the organization and given a low priority. We conduct all of the data collection and analysis ourselves to ensure validity of the data and quality control. This approach also ensures that we compare job description to job description and not just job titles, therefore ensuring true "matches" of at least 70cle, which is the percentage we use to determine whether to include a comparator classification or not. Typically, we collect this information in person by a prior appointment or we request salary schedules, organization charts, MOD's and other information for review. With this prior knowledge and our experience in the public sector human resources field, we can make preliminary "matches" and then schedule an appointment in person or by telephone, with a knowledgeable individual to answer specific questions. Our professional staff completes all of the analysis in our offices; we do not expect the other agencies to perform this vital function. We find that the information collected using these methods has a very high validity rate and is generally substantiated before employee and bargaining units as well as governing bodies. D. ANALYSIS AND PRELLMINARY DATA REVIEW March 31,21ft Page 11)of 12 Data will be entered into spreadsheet format designed for ease of interpretation and use. The information will be presented in a format that will identify the comparator positions used for each classification comparison. Information will be calculated based upon both average and median figures, allowing the agency to make informed compensation decisions. Benefit data will be collected and displayed in an easy-to-read format. You will receive three sets of spreadsheets per classification, one with base pay, one with the benefits detail, and one with total compensation statistical data. Assuming that the District also desires brief descriptions of different benefit levels, that information will be displayed in an easy-to-read format also. E. DRAFT FINDINGS/PROJECT TEAM MEETING/REA,NALYSIS We distribute our draft findings to the District. After the agency's preliminary review, K&A will meet with the Project Team as well as representatives from the various stakeholders to clarify data, to receive requests for reanalysis of certain comparators (through the employee's supervisor) and to answer questions and address concerns. This provides an opportunity for the Project Team and employees to review and question any of our recommended benchmark comparator matches. Copies of our spreadsheets are distributed for employee/management review. Challenges regarding our initial analysis and recommendations are reviewed and reanalyzed by our firm. We will reconfirm our original analysis and/or make corrections as appropriate. F. INTERNAL JOB ANALYSIS To determine internal equity for non-henehmarked positions (assuming that some classifications may not have adequate comparators at other agencies), considerable attention will be given to this phase of the project. It is necessary to develop an internal position hierarchy based on the "whole position" classification methodology. Objective factors include: 1. Education 2. Experience 1 Problem Solving/Ingenuity 4. Attention/Stress(Concentration/Time Pressure & Interruptions) 5. Independence of Action/Responsibility 6. Contacts with Others 7. Supervision Given to Others 8. Consequences of Action/Decisions Made on the Job 9. Working Conditions 10. Physical/Mental Demands G. REVIEW THE SALARY STRUCTURE 3 Depending on data developed as a result of the internal analysis, we will review and make recommendations regarding internal alignment and the salary structure (set of ranges) within which the classes are allocated, based upon the District's preferred compensation model. S Y' k 'd { March 31, 2006 Page I I of 12 Draft recommendations will be discussed with the management team prior to developing an Interim Report. s H. PREPARATION OF DRAFT INTERIM AND FINAL REPORT AND DELIVERABLES A Draft Interim Report of the Total Compensation Market Study will be completed and submitted to the District for review/comment/recommendations. The report will provide detailed compensation findings and documentation and recommendations. The report will include a set of all spreadsheets, a proposed # Salary Range document as well as the implementation issues surrounding our recommendations. A # detailed methodology for continued implementation and maintenance of the Plan is included. All elements detailed in the"Deliverables"section(below) will be included. Once all of the District's questions/concerns are addressed and discussed, a Final Total Compensation Report will be created and submitted in bound format. I. PARTICIPATION IN A CITY FORMAL APPEAL PROCESS Should the District have a formal appeal process regarding the allocation to salary range, this proposal does not cover time regarding a formal appeal process (the informal appeal process, that usually addresses individual issues, is identified in Task E above). Should our on-site participation be desired, our stated composite hourly rate will be honored. As mentioned above, however, our internal process usually addresses most of the appeal issues. J. PRESENTATION TO THE DISTRICT BOARD OF DIRECTORS Our proposal includes one initial overview and one final presentation to the District Board. DELIVERABLES A summary of and detailed total compensation findings and analysis, as well as recommendations for an overall comprehensive Compensation Plan that includes a salary step and range plan; ➢ Internal relationships and market compensation data will be graphically outlined for each classification so that future equity relationships between classes can be continued; and ➢ Implementation recommendations for achieving compensation goals within a reasonable time frame and the economic and political limitations of the District. Throughout the Study > Extensive communication with the Project Team, District Management, District Board and others; > Five bound and one camera-ready, unbound original report; and > Reports, analysis and other relevant data on email or disc in WORD and EXCEL format. EXPECTATIONS OF DISTRICT SUPPORT March 31.2006 Page 12 of 12 In order to conduct this study in the most timely and cost-effective manner, we expect support from the District in the following areas: l Timely provision of written documentation, such as current class specifications, MOL's, organizational charts, budget documents,requests for audits, past studies, etc.; Assistance in scheduling Project Team, management, employee and other meetings; and > Meeting agreed to time lines to meet the September 1 Final Report date. PROJECT SCHEDULE Our experience is that studies of this nature and for this size organization, realistically, take approximately four months to complete, allowing for adequate data gathering and analysis; review steps by the District; the development of final reports, appeals; and presentations. Koff & Associates will commit to the 9/1 deadline date as being reasonable and achievable. Timeline Task# Task Identified Timeline A/B Initial Project Team Meeting(PTM)/Ident of Factors Within 2 weeks after Contract Signed C/D Data Collection/.Mal sis J-6 weeks after Pro'eet Team Meetin E Drafal t Findin s/Project Team Meetings/Reanalysis 7-8 weeks after PTM F Intern Job Analysis 9 weeks after PTM G Review SalaryStructure 10 weeks after PTM H Interim/Final Reports 12-13 weeks after PTM (Se t 1, 2006) I Formal A Ink Hearin J Presentation to Board of Direcior I As Scheduled INSURANCE REQUIREMENTS We will submit support of this level of coverage and to endorse the City with our General Liability insurance coverage(only) upon award of contract if desired: Workers' Compensation: Statutory Limits Automobile Insurance: $1 Million per accident Errors and Omissions: $IMillion per occurrence General Liability: $1Million per occurrence s Respectfully Submitted, t By: KOFF& ASSOCIATES i s March 31, 2006 Georg S. Krammer Date i t March 31.2000 Page 13 of 12 Chief Executive Officer Truckee Donner Public Utility District Total Compensation Study Q Y �f March 31 , 2006 x� 4� Submitted by: CPS Human Resource Services 241 Lathrop Way Q�<;'` ..v PS Phone: 95815 Phone:916.26363-3600 Fax: 916-648-1211 Fed.Tax IDa:68-0067209 Susan Helfand Senior Manager Client Services Group-West Phone:916-263-3614 ext.3019 e-mail: Susanh@cps.ca.gov HiUrxrriReuxtweS,nices March 31, 2006 Mr. Peter Holzmeister General Manager Truckee Donner Public Utilities District 11570 Donner Pass Road Truckee, CA 96160 Dear Mr, Holzmeister: CPS Human Resource Services (CPS) is pleased to submit our proposal to the Truckee Donner Public Utilities District (the"District"), to perform a total compensation study. The scope of the project comprises a base salary and benefits survey for the District's approximately 67 employees. CPS is uniquely qualified to undertake this effort because of our wide resources and extensive experience in the human resources field. Our RFP response is based upon the following three elements to accomplish the District's goals: e Developing tailored professional products and providing personalized services to meet the District's specific needs. • Maintaining open communication with the District's management, employees, and other key stakeholders to ensure the project preserves its focus, adheres to the timeline and budget, and creates a reciprocal flow of information. Extensive professional expertise acquired by numerous similar studies provided to counties, cities, special districts, and other public agencies. This proposal provides information on our project methodology, and offers a timeframe and cost estimates based upon our review of the scope of work. We are very flexible and welcome the opportunity to work with you to identify alternative resources or revisit the scope of work to adjust our cost estimate, if necessary. Because of our identity as a public,joint-powers agency, our profit margin is limited. As set forth on our charter, our mission is to provide quality, client-oriented services to public and non-profit agencies such as yours. Our project goal is to exceed your expectations. 1 ,n � J HamcaiResa n-e Se,vices This proposal remains in effect for 90 days after March 31, 2006. We look forward to discussing the proposal with you. If you have questions or comments, please feel welcome to contact me at (916) 263-3614, extension 3019. Sincerely, 1 F t � Susan Helland Senior Manager Client Services Group - West 2 Proposal to the Truckee Donner Public Utility District Total Compensation Study Methodology Project Scope The Truckee Donner Public Utility District is seeking the services of a professional consulting firm to conduct a total compensation study for approximately 67 employees. The District wishes to compare wages and benefits with similar electric and water agencies within the labor market area. The study will consist of 31 survey classifications and approximately 12 labor market agencies. CPS has developed the following work plan to accomplish the District's goals for this study. Project Work Plan It is our view that our clients are our partners, and therefore an essential aspect of our proposal is to clearly define the work to be performed by us, the consultants, and to establish a mutual understanding of the project's objectives. The process of defining the project scope and objectives, and the continuing consultant-agency evaluation of study expectations through the engagement, leads to a successful project. This section of the proposal presents a detailed work plan for the District's compensation study. The approach and methodologies utilized are designed to achieve project success by ensuring effective project communication with all key stakeholders, accurate and credible analysis of salary data received, and timely presentation of study results and recommendations to the District. While these are key elements to any successful compensation study, CPS recognizes that each client has unique operational needs and issues —for that reason, our approach and methodology can be further tailored to fit the District's specific goals and objectives as necessary. Total Compensation Study Task 1 — Review of Agency Background Materials— Upon contract award, CPS will request background information from the District in order to ensure the project team is prepared for the initial project meeting. To develop a full understanding of the organization, its policies, procedures, internal structure, and the work performed, our team will review the current classification plan, classification specifications, organization charts, personnel policies and procedures, compensation policies and procedures, salary grades and steps, MOU's, budgets, and any other documentation relating to the District's mission, functions, and staffing. The project team will review the materials prior to the initial meeting to ensure they have an understanding of the District's current classification and compensation plans, and are prepared to seek further relevant information during the initial meeting. 3 Proposal to the Truckee Donner Public Utility District Total Compensation Study Task 2—Initial Project Meeting—The CPS Project Manager will meet with the District's Project Representative to initiate the project, and communicate study goals, objectives, and methodologies. During the initial project meeting, the Project Manager will discuss and finalize survey classes, the District's labor market policies, identify potential tabor market agencies and develop an understanding of the District's current internal equity structure. It is our understanding that the District would like a total of 12 labor market agencies surveyed. Task 3 — Department Manager Meetings— The project team will conduct conferences with each department's management staff to review organizational structures and functional areas of responsibility. These meetings are instrumental in providing the consultants with an in- depth understanding of the District's operations, and in identifying any compensation related issues that need to be addressed in the study. Task 4—Labor Market Agency Recommendations—The project team will research potential labor market agencies and will provide recommendations for agencies to be surveyed for the District's classes The consultants' recommendations will be based upon selection criteria typically utilized in compensation studies including agency size, geographic location and industry. CPS will provide the District with a detailed memorandum for approval by the District prior to initiation of the compensation study. Task 5— Design, Develop and Distribute Survey Instrument—Our project team will develop a comprehensive survey instrument designed to ensure the effective collection of salary information from the District's labor market agencies. The survey instrument will include a brief description of each classification included in the compensation survey, requesting the minimum and maximum monthly salary for each class. It is our experience that a well-designed survey form is a key element in data collection efforts, and rather than use standard minimal descriptions of a survey class, our project consultants will utilize the District's classification specifications and organizational information to ensure the survey recipients clearly understand the level, nature and functional responsibilities of the survey class. Moreover, the survey agencies will be requested to submit copies of organization charts, salary schedules, class specifications, and related documentation so the project team may verify and confirm a proper match between the District's classifications and each survey agency's comparable classes. It is critical that the project team review such documents as titles can often be misleading and should not be relied upon. Because this is a total compensation study, the survey instrument will include a form to facilitate the collection of benefits data in a structured manner. The benefits data to be collected will include the following, as specified by the District: Cash add-ons including retirement pick up, deferred compensation programs, longevity pay and education incentives Employer and employee contribution to medical, dental, vision, life, and long term disability programs, including a description of the benefit Employer retirement contribution and social security practices Retirement practices including retirement plan, benefit, and formula Leave practices (vacation, sick, holiday, bereavement) 4 Proposal to the Truckee Donner Public Utility District Total Compensation Study Overtime premium pay practices Special allowances (clothing, tools, transportation) Training incentives and educational reimbursement plans Other benefits may be added dependent upon the District's needs. Task 6— Design and Develop Data Spreadsheets— Our project team will incorporate appropriate formulas into spreadsheets to report the labor market data. CPS recognizes the importance of presenting an analysis that is detailed, yet readily understandable to our clients. While some consultants may provide their clients with only a summary of the data on a class-by-class basis, CPS will develop data sheets that present the comparable class used in each agency along with the relevant data associated with that class, including the range minimum and maximum. The labor market data analyses will be conducted based upon policy direction from the District with respect to its established labor market position (e.g. market median, mean or other percentile). Task 7—Review, Analyze and Validate Labor Market Survey Data—The survey information from participants will be collected, analyzed, and placed into data spreadsheets. In conjunction with the survey instrument received from each labor market agency, the project team will review additional background materials (i.e. organization charts, salary schedules, position control documents [where available], classification specifications, and related documentation). Team consultants will audit the survey information received from these labor market agencies, and contact them with any issues, concerns, and questions on the data submitted to ensure that matches are accurate. Once the project team has completed their tasks, the data will be audited by the Project Manager as a final quality review prior to submission to the District. CPS has determined that this method of data collection, analysis and audit provides our clients with credible and accurate data, a critical element in any compensation study. Task S— Conduct Benefits Analysis—The benefits data submitted from the labor market agencies will be incorporated into the base salary data sheets to provide a total compensation analysis for 31 selected survey classes. This analysis will provide the District with an understanding of how their classes compare against the market when the costs of benefits programs for a representative number of job classifications are taken into consideration. Not all of the benefit data that the District requested to be collected can be included in the total compensation analysis as some are reimbursements and some are specific to particular classes and particular employees. The data that cannot be included in the total compensation analysis will be placed in supplemental benefit tables and the CPS consultants will determine whether the District is consistent with labor market trends. Task 9— Conduct External Market and Internal Equity Analysis/Prepare Draft Salary Recommendations—A comprehensive and balanced pay program is the result of the analysis of external labor market data, combined with an analysis of important internal relationships that may reflect the District's value system of jobs within the organization. The project team will analyze all survey compensation data and internal salary relationships to develop salary recommendations, and will allocate each classification to the appropriate salary range based upon the labor market data and internal equity analysis. This will result in a pay plan that is externally competitive, thereby enhancing the District's ability to recruit 5 Proposal to the Truckee Donner Public Utility District Total Compensation Study and retain employees in the current Tabor market, while also maintaining important internal relationships. Task 10—Prepare and Present Draft Compensation Report—The project team will develop a Draft Compensation Report detailing the results of the labor market survey and draft salary recommendations. The Draft Compensation Report will be reviewed by the Project Manager and submitted to the Project Representative for review and input. This draft report will comprise the following: Scope of the study Labor market agencies Survey procedures Labor market data analysis/methodologies Results of the total compensation analysis Results of the supplemental benefit analysis Salary recommendations The Project Manager will meet with, and present draft results to, the District's Project Representative and any designated groups. Any issues, concerns, and comments will be addressed and resolved prior to the preparation of the Final Compensation Report. Task 11 —Research and Resolve Issues from Draft Compensation Report Review — Based upon the District's review of the Draft Compensation Report, the project team will follow up on compensation issues pursuant to this review. Task 12—Prepare and Present Final Total Compensation Report—An original and the requested number of copies of the Final Compensation Report will be submitted to the District and Board of Directors. District Responsibilities/Review Successful completion of this project within the time specified depends largely upon an efficient working relationship between the District and CPS project staff. For this reason, we request that the District designate an individual to coordinate communication, meetings, interview schedules, and review of products with the project team. The District's Project Representative will be responsible for the following activities: 1. Coordinating all meeting schedules, conference calls, facilities and equipment needs 2. Coordinating interview schedules and facilities and distributing project update information 1 Identifying and providing current classification and compensation information (i.e. current job specifications, salary structure, benchmark positions and organizations, etc.), personnel policies and procedures, etc. 6 Proposal to the Truckee Donner Public Utility District Total Compensation Study Any work products developed during the activities described above will be submitted to the District's Project Representative for review, comment and/or approval. This is a critical step to ensure accurate, reliable, and valid products. s t f Qualifications CPS Human Resource Services History CPS Human Resource Services (CPS) is a governmental agency committed to improving human resources in the public sector. As a self-supporting public agency offering a full E range of human resource products and services, our highly qualified, professional staff provides practical personnel solutions for public agencies and non-profit organizations within the State of California and across the country. CPS is headquartered in Sacramento, California, with regional offices in Atlanta, Georgia; Chicago, Illinois; Madison, Wisconsin; and Washington, D.C. CPS currently has a staff of approximately 220 full-time employees and approximately 1,400 subject matter experts, intermittent, and part-time employees with a wide variety of public and private sector experience. The consultants who comprise the project team for the Eastern Municipal Water City study are all highly qualified classification and compensation professionals with extensive experience in conducting classification and compensation studies. In fiscal year 2004-2005, we engaged in a total of over$158 million in revenue transactions serving over 1,500 clients in 46 states and Canada. These clients include counties, cities, special districts, colleges, universities, school districts, and other public sector agencies. Our services include: Classification, compensation, and benefit plan studies Salary surveys Organizational assessments and reviews Development of performance evaluation systems and compensation programs Executive recruitment Management analysis Organizational development Assessment centers Training Team/group facilitation Personnel rules, policies, and procedures 7 Proposal to the Truckee Donner Public Utility District Total Compensation Study Prior to our establishment as a joint powers agency in July 1985, CPS was a unit of the California State Personnel Board. CPS was created in 1935 to provide personnel management assistance to local governments in California. In fact, we helped establish the personnel systems for many of California's cities and counties. In addition to supporting local government, CPS provides consulting services to state and federal government. Our governing unit consists of a ten-member Board of Directors from the City/County of San Francisco, the City of Anaheim, the Hayward Unified School District, Sacramento County, Sonoma County, East Bay Municipal Utility District, the California State Personnel Board, the State of Wisconsin Department of Employment Relations, the City University of New York, and the City of Las Vegas. Our specialty is in working with agencies such as yours and assisting them in the development of effective human resource programs. CPS has provided human resource management services very similar to the proposed classification and compensation study to public agencies for 70 years, and we understand firsthand many of the challenges facing cities, communities, and special districts within California. CPS has been meeting these types of challenges on an ongoing basis for various agencies throughout the state, and we are looking forward to being of service to the Truckee Donner Public Utility District. ,:4s>tiXK'r r`s N�s'4.fi" Y•.=»,CSI,:&='-;K�af��a::�{,X'PFia"'*iss1r3:"XY2.'�.uf:vb`%+iXakYX�:S%'�r'3A"Y✓z?.,,;� CPS Project Team CPS is committed to meeting the highest professional standards of quality. Our team members have been selected for their relevant experience and professional maturity in dealing with projects of this nature. To ensure quality products, at least one knowledgeable person other than the consultant preparing the document must review, critique, and understand the document before it is considered ready for delivery to the client. Furthermore, our Project Managers involve themselves directly in preparing and submitting project deliverables. No documents or materials of any kind are delivered to the client without the Project Manager's review and approval. We firmly believe that the most important factors in ensuring the highest quality of consultant performance is first, the commitment the consultant brings to the engagement, and second, the experience of the firm and the individual consultants working on the project. We trust this proposal will provide you with the relevant information on our commitment to our clients, the qualifications of our firm, and the experience of individual consultants. s t CPS also recognizes that the success of any project depends upon the ability of the consulting team to develop and maintain effective working relationships with the District management, employees, and any other identified stakeholders. We envision collaborating with these groups to maintain open lines of project communications and to develop a shared understanding of project needs, goals, and objectives. 8 s Proposal to the Truckee Donner Public Utility District Total Compensation Study Our Project Manager for this study will be Ms. Shellie Anderson. Ms. Anderson will be assisted by Ms. Stacy James. Their resumes are presented below. Project Team Resumes Shellie A. Anderson, M.A., SPHR Profile Ms. Anderson is a Principal Consultant with CPS and has participated in and led several compensation and classification studies as well as conducting various recruitments, including at the management level. Among the classification studies Ms. Anderson has conducted include the City of Sacramento, Sacramento County Airport System, Contra Costa County, City of Livingston, City of Porterville, and various studies for Sacramento County Personnel Services. In addition, she has conducted several compensation studies including various Superior Courts of California, cities, counties, water districts, and state agencies. Among the recruitments Ms. Anderson has conducted include Court Executive Officer, Information Technology Manager, several Deputy Director of Airports, Senior Engineer, Finance Manager, and Chief Benefits Officer. In her previous position, Ms. Anderson worked for a local small business managing all personnel related issues including conducting a needs assessment, recruitment, employee interviews, development of training and employment handbooks, as well as workers' compensation and other related issues. Employment History Principal Consultant, CPS Human Resource Services Human Resources Officer, All Cities Pool and Spa Volunteer Coordinator,Safety Center Research Assistant, California State University, Sacramento Professional Experience In her current position as a Principal Personnel Management Consultant, she provides a broad range of human resources services to public agencies, including classification and compensations studies, organizational assessments, and recruitment. Ms. Anderson previously provided personnel support to social services and child support departments for various counties within the State of California, which included recruitment, performance and oral test development, as well as advising departments on organizational and personnel issues. Ms. Anderson has worked with cities, 9 Proposal to the Truckee Donner Public Utility District Total Compensation Study counties, and other public agencies on recruitment programs, the development of selection instruments, as well as conducted classification and compensation studies. In addition to her work with CPS, Ms. Anderson has worked for a local small business handling all personnel issues including employment screening and interviewing, development of training and employment handbooks, researching issues related to employment law and worker's compensation issues, conducted a needs assessment, and developed job specifications. As a research assistant, Ms. Anderson participated in a large study for the State of California, Board of Accountancy, constructing a database of candidate scores and educational history as well as collecting benchmarking information. This project assisted in determining the current education requirements for taking the California CPA examination. Education Master of Arts degree, Industrial/Organizational Psychology, California State University, Sacramento Bachelor of Arts degree, Psychology, California State University, Sacramento Certified Senior Professional in Human Resources Professional Organizations Personnel Testing Council of Northern California * International Public Management Association, current chapter Board member Past Secretary of Western Region Intergovernmental Personnel Assessment Council 10 Proposal to the Truckee Donner Public Utility District Total Compensation Study Stacy James Profile Nis. James has experience in Human Resource services, including experience with tests and measurement,job analysis, class ifieationlcompensation, performance appraisals, recruitment and selection, and organizational culture and has taught class lectures on research design. Employment History Personnel Management Consultant, CPS Human Resource Services Staff Services Analyst, California Department of Education Professional Experience m Assisted on projects such as, California Department of Personnel Administration, California Department of Corrections, City of Dixon, Placer County, and Eastern Municipal Water District. Education Master of Arts (pending Thesis completion), Industrial/Organizational Psychology, California State University, Sacramento Bachelors of Arts, Psychology, California State University, Sacramento Professional Organizations Personnel Testing Council of Northern California International Personnel Management Association, Local Chapters 11 Proposal to the Truckee Donner Public Utility District Total Compensation Study References CPS has performed numerous classification and compensation studies, salary surveys, organizational studies, and other human resources services, for local government agencies throughout California, and in other states. Below are references for a representative sampling of similar services recently provided to agencies in California. Additionally, as part of our process, CPS sends out a client satisfaction survey at the completion of a project to provide us with an assessment of how our clients view the success of any project we undertake on their behalf. The survey is voluntary for our clients, and not every client is able to provide us with the feedback requested. All feedback received through these survey forms is utilized to review and assess project outcomes and the project tasks utilized for these outcomes, so CPS can enhance the services we provide to our clients. As available, the results of the client satisfaction survey have been provided with the references listed on the next page. Table 1 References Imperial Irrigation District CPS conducted a The project was on time and on Compensation Study for 90 budget. The District has been Marcy Rivera benchmark classes and 25 pleased with the results and is Employment and survey agencies. requesting that CPS conduct a Compensation Services further compensation study for Supervisor Completed: 12/2004 them. The post-project Client 333 E. Barioni Blvd. Satisfaction survey indicated that Imperial, CA 92251 the project team had "far exceeded" their expectations in regard to the 760-482-9618 quality of consultants, and the consultants courtesy and helpfulness through the project while"exceeding"their expectations for timeliness of delivery, City of Portervilie CPS conducted a city-wide Classification recommendations are Darrel Pyle classification study for all city currently being reviewed by the Deputy City Manager classes (255 positions, 110 client and the compensation study 291 N. Main Street classes)as well as job has been submitted for client Porterville, CA 9325 evaluations for 35 positions review. 559-782-7431 and a total compensation study for all city classes. City of Los Banos CPS conducted a CPS analyzed the data from the Steve Rath, City Manager compensation survey for the survey and made a number of 520 J Street City. Eighteen labor market recommendations to the City so Los Banos, CA 93635 agencies were surveyed for that their pay practices would be 209-827-7000 the study of 16 externally competitive and internally Steve.rath#losbanos.orq classifications. equitable. 12 Proposal to the Truckee Donner Public Utility District Total Compensation Study County of Placer CPS is in the process of CPS has conducted a number of Nancy Nittler completing a total studies for Placer county in the compensation study of the past. This study was completed in Personnel Director County's management February, and the Draft Final report 175 Fulweiler Avenue, classes. The scope of the has been submitted to the county. Room 505 study encompasses 71 Auburn, CA 95603 survey classes and 11 labor 530-889-4073 market agencies. Compensation data and draft salary recommendations have been submitted for County review. West Basin and Central CPS conducted an annual After completing the first study in Basin Municipal Water Total Compensation (Salary 2004, CPS was retained by the Districts and Benefits) Study in 2004 District to conduct an annual survey Arlene Berman for the District and another in 2005 to establish their i Human Resources Department Total Compensation study in compensation levels for fiscal year 2005 to establish 2005-2006. 17140 S. Avalon Blvd., Suite compensation levels for their 210 Carson, CA 90746-1296 Fiscal Year 2005-2006. The 310-660-6228 scope of this compensation study comprised 25 classes within a labor market consisting of 16 water agencies in the Southern California area. Type of occupations— District management and professional classes Western Area Power CPS conducted a salary CPS surveyed 14 agencies for the Administration survey for the Power System Power System Dispatcher and 11 uret Dispatcher and Energy agencies for the Energy Gale Me PO Box uret Management and Marketing Management and Marketing Lakewood, CO 80228 Specialist positions. Specialist. The client was 720-962-7109 extremely satisfied with the project. meuret@wapa.gov 13 Proposal to the Truckee Donner Public Utility District Total Compensation Study Project Schedule The table below provides an approximate estimate of time required and a timeline for each component of the project. Since projects of this nature are highly dependent upon cooperation from the labor market agencies and the District's ability to meet the projected timeframes for interviews and study product review, the consultants will provide the District with status reports on agency participation and will assess any impact on the timeline outlined below. Table 2 Total Compensation Study Task 1 —Review Districts background materials Upon contract award Compensation Component Timeline, Tasks 2 and 3— Initial Project Meetings— Project Representative, Department 1 Managers Task 4—Recommend labor market agencies 2 Task 5— Design, develop and distribute survey instrument 3 Task 6— Design and develop spreadsheets 4.6 Task 7—Review, analyze and validate labor market data 7.8 Task 8—Conduct benefits analysis 7 8 Task 9— External market/internal equity analysis/draft salary 9-10 recommendations Task 10— Prepare and present Draft Compensation Report 11 Task 11 — Research issues from Draft Compensation Report 12 Task 12— Prepare and present Final Compensation Report 13 s s r 5 } 14 Y