To: Board of Supervisors of the County of Sonoma, Board of Directors of the Sonoma County Water Agency, Board of Commissioners of the Community Development Commission, and Board of Directors of the Sonoma County Agricultural Preservation and Open Space District
Department or Agency Name(s): Human Resources
Staff Name and Phone Number: Colleen Goetz, 707-565-1701
Vote Requirement: Majority
Supervisorial District(s): Countywide
Title:
Title
Classification and Compensation Consulting Agreements
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Recommended Action:
Recommended action
Authorize the Director of Human Resources to execute amendments to existing contracts with Cooperative Personnel Services HR Consulting and Gallagher Benefit Services, Inc. for classification and compensation services, to amend the terms of the existing annual agreements from July 23, 2024, through November 30, 2026, and increase the not to exceed amounts from $100,000 to $500,000, per agreement, effective July 23, 2024.
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Executive Summary:
The requested Board action authorizes the Human Resources Director to execute amendments to agreements with Cooperative Personnel Services HR Consulting and Gallagher Benefit Services, Inc. for classification and compensation consulting services effective July 23, 2024. This request amends the terms of the existing annual agreements with not to exceed amounts of $100,000 per annum through November 30, 2024, with the option of two one-year extensions, to longer term agreements, effective July 23, 2024, through November 30, 2026, and increases the total not to exceed amount to $500,000 for the amended contract term.
Classification and compensation studies represent a high volume of workload for the Human Resources Department (HR) Recruitment and Classification Unit. Historically, HR has had consulting agreements to augment resource capacity or expedite studies. These agreements will maintain the continuity of current classification studies, many of which are very large and very complex, and address increased demands for these time-sensitive HR services.
These are fee-for-service agreements with no minimum amount of work guaranteed to any firm, and when used, departments approve and incur the expense of these services. Actual costs for work on these contracts will be budgeted in departments utilizing these services. Estimated costs are provided before departments request a study and are paid for by the department. No additional appropriations are being sought as part of this item.
Discussion:
Human Resources’ Recruitment & Classification (R&C) Unit is responsible for managing the County’s classification plan and conducting classification and compensation analyses on behalf of County departments and agencies. Typically, studies involve reviewing positions for appropriate classification, revising existing job classification specifications, developing new job classification specifications, conducting compensation reviews and analysis, and/or reviewing job classifications in relation to organizational changes and needs. Studies can be prompted by requests from departments or agencies, employees who believe they are working out of class, union requests on behalf of represented employees, as the result of labor agreement, and/or analysis and preparation for the bargaining cycle.
Classification and compensation studies require specialized knowledge and professional-level staff work. Studies are often complex, with many stakeholders involved. A typical study involves significant analysis, conducting desk audits/informational interviews with incumbents and their supervisors, drafting a report, potentially revising or creating job specification(s), conducting multiple meet and confer sessions with union(s) and incumbent(s), presenting the report to the Civil Service Commission, and in many cases, final Board approval. Human Resources continues to experience high demand for classification and compensation studies, creating a backlog that cannot be addressed with only department staff.
While the R&C Unit Human Resources Analysts conduct a significant number of classification and compensation studies internally, some study requests exceed the Unit’s capacity based on their size, complexity, or their time-sensitive business need. Therefore, HR has an established practice of augmenting R&C staff by establishing service agreements with a pool of experienced, pre-approved classification and compensation consulting firms. These agreements are administered by HR and the consultants’ services are approved and paid for by departments from their operational budgets. As HR is responsible for the integrity of the classification and compensation plan, HR reviews and approves all consultants’ final work product.
Classification and compensation consulting agreements are fee-for-service contracts, with fees ranging from $150 to $300 per hour for Project Managers and Associate Analysts, depending upon years of experience, area of specialty, and level of expertise. Given the time and complexity, a large 75+ incumbent study could cost approximately $100,000. A less complex, single-position review is more likely in the range of $3,000 to $9,000. In 2020, HR conducted a competitive Request for Proposal (RFP) process and the Board authorized the Director of Human Resources to execute agreements with five (5) classification and compensation consulting firms, with the option to execute three one-year renewals through November 30, 2026. These fee-for-service agreements were in amounts not to exceed $100,000 per agreement, per annum.
This recommended action will authorize HR to execute amendments to existing agreements with two consultant agencies, Cooperative Personnel Services (CPS) HR Consulting, a Joint Powers Authority, and Gallagher Benefit Services, Inc., previously Koff & Associate, Inc. This request amends the terms of the existing annual agreements with not to exceed amounts of $100,000 per annum, to longer term agreements, effective July 23, 2024, through November 30, 2026, and increases the not to exceed amount to $500,000 for the amended contract term for each agreement. HR is not requesting that the contract limits for the other three consultants be increased.
Staff are recommending increasing the contract maximum with these two firms as they are working on 13 classification studies involving 550+ positions and approximately 77 classifications. CPS HR is currently working on multiple complex studies for various departments, including Human Services, Permit Sonoma, Probation, Public Infrastructure, and Sonoma Water with an anticipated cost of approximately $216,000. Gallagher is conducting three of the County’s largest and most complex studies, the Information Systems Department’s study of 100+ positions and 22 classifications, a study of 19 positions in nine (9) Human Services IT classifications that are used across three departments, and a countywide study of 311 positions, in 27 County departments/agencies, that are currently classified in seven (7) administrative services management classifications of Department Analyst, Administrative Services Officer I and II, Department Program Manager, Program Planning and Evaluation Analyst, Program Development Manager, and Department Administrative Services Director. The anticipated cost of the work Gallagher is currently performing is approximately $287,000. Changing the not to exceed amount from a per annum limit to a contract term limit, allows for a greater continuity of work and eliminates the need to delay remaining actionable items, once the per annum contract spend limit has been reached, until the next contract term. It will also create the ability for the consultant agencies to conduct additional classification studies within the contract term.
Strategic Plan:
N/A
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
12/8/2020, Authorized the Director of Human Resources to execute agreements with five classification and compensation consulting firms, effective December 1, 2020, through November 30, 2023, in amounts not to exceed $100,000 per agreement, per annum, with the option to execute three one-year renewals through November 30, 2026.
Fiscal Summary
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Narrative Explanation of Fiscal Impacts:
Budgeted expenses for classification and compensation consulting services are allocated to those departments using these services. Human Resources/consultants provide estimated costs based on the scope of work, and departments evaluate and plan for the cost of the service based on existing budget and fiscal capacity. No additional appropriations are being sought as part of this item. CPS HR is currently working on multiple studies with an anticipated cost of approximately $216,000. The anticipated cost of the work Gallagher is currently performing is approximately $287,000. Increasing the cap for each contract to $500,000 will create the ability for the consultant agencies to conduct additional classification studies within the contract term.
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Narrative Explanation of Staffing Impacts (If Required):
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Attachments:
Attachment A: CPS HR Consulting Contract
Attachment B: Gallagher Benefit Services f.k.a. Koff Consulting Contract
Related Items “On File” with the Clerk of the Board:
N/A