IV.7. Approval of Contract for Classification and Compensation Study; Lenz (CR2017-13)
January 17, 2016 City Council Report 2017-013
Approval of Contract for Classification and Compensation Study
Proposed Action: Staff recommends the following motions: Move approve awarding Arthur
Gallagher (Fox Lawson) the Classification and Compensation Study.
Overview
The City budgeted for updating the City’s Classification and Compensation System. The last
time a similar study took place was in 2003 and the previous system is no longer supported. The
City received eight proposals for the study. After reviewing and interviewing the top two finalist
the Staff selected Arthur Gallagher (Fox Lawson) to be the consultant for the study.
Primary Issues to Consider
How does this agreement fit with the 2017 Budget?
Will the consultant be able to carryout the project within a timely manner?
Reputation of the consultant and previous experience with other municipalities.
Experience with Minnesota Pay Equity and Comparable Worth.
Firm Longevity and Sustainability of the System.
Analysis of Issues
How does this agreement fit with the 2017 Budget? We budgeted $50,000 for the classification
and compensation system update in 2017, the proposal is for less than the budgeted amount.
Although their were initial proposals that came in at lower prices, concerns about the areas
below brought Arthur Gallagher (Fox Lawson) to the top of the recommendation. There
proposal was comparable to and cheaper then several of the other firms.
Will the consultant be able to carryout the project within a timely manner?
We believe the consultant will be able to follow through with the project and stay on
schedule. As with any project we have built in more time then necessary but are eager to
begin the study.
Reputation of the consultant and previous experience with other municipalities.
We contacted references and previous communities the consultant has worked with to
ask a number of questions related to the quality of the work, timeliness, etc. The firm has
an excellent reputation and we believe the project will do smoothly.
Experience with Minnesota Pay Equity and Comparable Worth.
This was one of the primary factors considered when reviewing RFPs. Minnesota has
unique pay equity rules and we need to make sure we have a consultant who is familiar
and can help us ensure compliance.
Firm Longevity and Sustainability of the System.
Page 2
Our current system is no longer supported by our vendor. The longevity and
sustainability of the system is very important to the long term ability to maintain an
accurate evaluation method and system. We believe Arthur Gallagher (Fox Lawson) is an
established firm that will be supporting their system for the foreseeable future.
Alternatives
1. Approve the contract.
2. Do not approve the contract. Staff would have to renegotiate the contract.
Staff recommends Alternative #1.
_____________________
Ari Lenz, Assistant City Manager
Financial Impact: $ 43,500 Budgeted Y/N: _Y___ Source: General Fund
Notes: