Fort Walton Beach Council agenda — 01-25-05 - regular — reading text

Finance Director, and John Hofstad, Assistant Public Works Director. At the Committee' s first meeting, the members ranked the firms based on their qualifications, experience, and overall ability to complete the study. It should be noted that, of the eight ( 8) proposals received four ( 4) of the firms failed to submit a sample report as required by the RFP. The sample report is an important aspect of the review process as it provides staff the opportunity to review the final work product presented to other clients. As such, the proposals from the four 4) firms who did not submit a sample report were considered non- responsive to the RFP and not considered in the selection process. As a result, three ( 3) firms were included in the short list. These firms were subsequently interviewed about their experience and qualifications to complete our project. The following is a list of semi-finalists: Management Advisory Group, Inc. - Tallahassee, Florida MGT of America, Inc. - Tallahassee, Florida The Mercer Group, Louisburg, Florida As a result of the presentations, a background and reference check on each consulting firm, and their proposed fee schedules, MGT of America, Inc. is the Selection Committee' s top ranked firm to undertake this most important project. MGT of America was recommended based on the following: Page 1 of3  This firm has an extensive list of clients in the State of Florida and across the country. All of their previous clients are in the public sector. Of those many are municipalities. During their presentation, this firm identified a comprehensive approach to the project and unique ability to gain support from all levels of the workforce. Staff received very positive responses from other cities that have retained this firm for pay and classification studies. The fees proposed for their services were lower than the other two firms on the short list. In addition, staff negotiated a reduction in the proposed fee from $ 31, 000 to $ 29, 700. Plan Review As noted above, the City' s previous comprehensive review of our pay, benefit, and classification planwas undertaken in 2000. Since that time, the City' s ability to attract and retain qualified and motivated employees has declined. This is exemplified by turnover data since 2001 that identifies a general trend of increasing employee resignations. For the fiscal year ending September 30, 2004 the city' s turnover rate was 18. 6%. During our exit interview process, most resigning employees note pay as the determining factor for leaving our employment, particularly for unskilled and skilled service workers, trades, technical, and some professional positions. Further evidence that supports the need for the City to review its competitiveness with our local market ( either publicor private) is the numerous positions the City continues to advertise for which no applications are received. Examples include Service Workers, Collection System Worker and Refuse Collectors. This certainly suggests that there are more attractive positions offered by organizations that the City competes with for similar type of employment. In addition, it has become increasingly more difficult to recruit for the position of Police Officer. It is apparent that area Sheriff Departments are currently more successful in filling their vacant and new authorizations. It is very common in both the private and public sector for organizations to have their pay and benefits reviewed on a comprehensive scale every 3- 5 years. As it has been five years since the last comprehensive review, it is timely for this review to occur. Over the past five years, the Human Resources Department has undertaken numerous position audits based on our identification of inequities either internally or based on fair comparison with outside competition. As a result of these audits, numerous changes were made to position classifications and pay grade/ step assignments. However, at this point and time, a comprehensive review is necessary to establish internal pay equity ( equal grading of similar positions) and determine fair market value of employee classifications. Human Resources consultants have expertise in these critical areas and from an employee perception standpoint, establish an enhanced degree of objectivity in the evaluation process. Attached to this staff report please find the RFP issued for this work. Also attached is a summary of the proposals received and fees for this work. RECOMMENDATION: Based on the above, I respectfully request authorization for the City Manager to enter into an agreement with MGT of America, Inc for the work components contained in the RFP for a not to exceed amount of $ 29, 700, if approved sufficient funding is available for this project. A copy of the agreement proposed by MGT of America, Inc. and their proposal is provided in the additional material folder. Page 2 of3 Respectfully subm itted, 1io~' Mark Wiltsie Human Resources Director cur Do Not Concur 1I!:! fl (' Date Page 3 of3