HomeMy WebLinkAbout#9 Moss Adams Comp Study AGENDA ITEM #9
Public Utility District m
MEETING DATE: May 1, 2024
TO: Board of Directors
FROM: Jillian Steward, Human Resources Director
SUBJECT: Consider Approval of a Contract with Moss Adams for a
Compensation Study for the District for an Amount not to Exceed
$75,000.
APPROVED BY:
Brian C. Wright, General Manager
RECOMMENDATION:
Authorize the General Manager to execute a contract with Moss Adams for a
compensation study for the District, with a contract amount not to exceed $75,000.
BACKGROUND:
District Code 4.06.101 Compensation Plan establishes the General Manager's
responsibility to maintain a compensation plan for all classes of positions. The plan
shall establish a salary range or rate of pay, showing minimum and maximum rates for
each class. The General Manager shall submit the compensation plan to the Board of
Directors for approval.
Historically, the District has maintained two salary schedules, one for the classifications
represented by the International Brotherhood of Electrical Workers (IBEW), Union Local
1245, and a second schedule for classifications not represented by a union
(management, technical, engineering).
In March 2020, the District and IBEW Local 1245 negotiated an updated Memorandum
of Understanding (MOU) establishing a compensation and benefits plan effective
January 1, 2020, through December 31, 2024.
The last compensation study completed for represented employees was prior to
2015. The most recent compensation study for unrepresented employees was
completed at the end of 2021 and presented to the Board in March 2022. When the
results were presented to the Board in March 2022, the District committed to
undertaking a more comprehensive compensation plan to include the following:
• Review of job classifications and descriptions
• Establish Board adopted policy for competitive salary metrics
• Identify employer market profile for future compensation studies
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• Healthcare benefits market analysis
• Retirement benefits program review
• Proposed updated compensation and benefits maintenance plan
ANALYSIS AND BODY:
At this stage of the comprehensive compensation plan project, the District has identified
the need to do an organizational assessment study to allow for a more thorough and
accurate compensation study. The information gathered from the study will be a useful
resource during labor negotiations with IBEW 1245, which will begin in the late
summer/early fall of this year for a new contract effective 2025.
For the compensation study and organization assessment, the following services will be
performed:
• Review the District's compensation package, provide analysis relative to other
comparable agencies, and provide recommendations based on results.
• Review job descriptions selected from the 2024 unrepresented and represented
employee wage ranges to ensure internal alignment and equity between groups
based on the essential duties, minimum qualifications, and comparable positions
identified.
• Review selected job descriptions for internal alignment and uniformity in lay out,
consistent language, expectations, and minimum qualifications.
• Review current compensation policy and plan design to determine if adjusting
pay structure will provide better equity, flexibility and mobility.
• Review of organizational structure, including analysis of the appropriate grouping
of functions and responsibilities within departments, as well as cross-
departmental.
Three qualified companies, Gallagher, Moss Adams, and CBIZ Compensation
Consulting, provided proposals for the work to be performed.
A District selection committee met to review the three proposals and evaluated the
following criteria:
• Clarity of proposal
• Experience of project manager and staff
• Technical requirements
• Schedule
• References
• Cost
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The proposed costs are as follows:
Firm Proposal Cost
Gallagher $138,000
Moss Adams' $71,000
CBIZ $44,525
Based on the overall proposal evaluations, the committee determined that Moss Adams
would be the most beneficial firm in the District for the following reasons:
• The proposal included a thorough and comprehensive plan for the compensation
study.
• The proposal included an in-depth approach to understanding the specifics of
our organizational structure and the positions that will be evaluated. This
thorough understanding is a priority of the District's to feel confident that the data
received from the study is comparable to our organization and therefore useful.
• The staff assigned to this project have extensive experience.
• The company's expertise included various special districts, municipalities,
cooperatives, and most notably their experience with power and water utilities in
the western region. Moss Adams will have the resources and contacts to provide
the most thorough and relative compensation study.
• The proposal provided the most comprehensive study objectives and
deliverables.
Timeline:
• May : Start-Up and Management
• May - June: Fact Finding
• July - Aug.: Analysis
• Aug. - Sept: Reporting
Moss Adams's Assurance (audit) and Consulting groups are independent. Engaging
with Moss Adams for this study contract does not conflict with the audit services, and
multiple services are common in the audit/consulting business.
GOALS AND OBJECTIVES:
District Code 1.05.020 Objectives:
6. Manage the District in an effective, efficient and fiscally responsible manner.
District Code 1.05.030 Goals:
1. Manage for Financial Stability and Resiliency
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5. Developing an inclusive culture drives organizational integration and success.
FISCAL IMPACT:
The FY24 budget included $75,000 for a compensation study to be completed this year.
GL account number 1/2.2.925.00.583.
ATTACHMENTS:
None
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