HomeMy WebLinkAbout10B Award Contract to Springsted Inc.
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
CITY COUNCIL AGENDA REPORT
November 6, 2006
10 B
Kelly Meyer, Assistant to the City Manager
CONSIDER APPROVAL OF A RESOLUTION AWARDING CITY'S
STANDARDIZED CONTRACT FOR PROFESSIONAL SERVICES FOR
COMPLETION OF POSITION CLASSIFICATION AND COMPENSATION
STUDY.
Introduction
The purpose of this agenda item is for the City Council to consider awarding a
professional services contract to Springsted Incorporated for the completion of
a study that will analyze the City's classification of its employment positions,
and review that our master salary structure is competitive and consistent with
the market.
Historv
The state requires government employers to periodically report compliance
with pay equity legislation. Pay equity statutes prohibit employers from paying
similarly valued positions differently when one employee group is dominated
by one gender compared to the other. Prior Lake will next be required to report
in 2008. Failure to report, or reporting non-compliance, can have significant
penalties. To that end, it is prudent, from both a pay equity standpoint, and a
market standpoint, to periodically review, analyze and update our job
descriptions, classification and compensation systems for pay equity
compliance. The City last formally reviewed its job classification and
compensation system in 1996.
Current Circumstances
Throughout the past several years, there have been changes in job
descriptions and position classifications, as well as annual adjustments to the
City's master salary plan. The goal of this study is to update the City's existing
job classification system, analyze the City's master salary plan to ensure
continuing consistency with the market, and make recommendations, if any,
for implementation of changes. The study would also establish a method for
determining classification of future positions (meaning the system will provide
for incremental updates as positions are added, modified or deleted without
the need to rerun the entire study), and an analysis of pay equity compliance.
On October 16, 2006, the City Council approved a Request for Proposals and
authorized staff to solicit proposals. Staff mailed the RFP to a list of potential
vendors recommended by other cities who had completed studies, advertised
in the Prior Lake American, and posted the notice on the League of Minnesota
Cities web site. The submittal deadline was Wednesday, November 1st, and
the City received three responses to the RFP.
www.cityofpriorlake.com
phone 952:447 .4230 ..IFax 952.447.4245
FINANCIAL
IMPACT:
ALTERNATIVES:
RECOMMENDED
MOTION:
Conclusion
Staff has reviewed the proposals submitted and has outlined each below:
Submitted No. of Staff Proposed Other MN Cost
By Proposed Completion Public Sector
Clients
Fox Lawson 5 April 2007 Scott County $56,000
Hennepin Cty.
Farmington
Eden Prairie
Springsted 3 Feb 2007 Forest Lake $33,725
Incorporated Waite Park
Moorehead
Pope County
Laumeyer & 2 Feb 2007 Moundsview $24,800
Associates Hutchinson
Hector
MenahQa
Staff is recommending that the City utilize Springsted Incorporated for this
work. Springsted is one of the largest and most established independent public
sector advisory firms in the nation, is based locally (St. Paul), and in the area
of position classification and compensation, their systems are both court tested
and copyrighted to deliver pragmatic outcomes. The company has been in
business for over 50 years. For these reasons, staff believes Springsted
distinguishes itself as the best candidate for the cost. A copy of each of the
proposals submitted is attached.
By completing the study in the first part of 2007, the City will be able to begin
to implement any changes appropriate to become compliant with pay equity
statutes before reporting to the state in 2008 as required by law.
The 2006 Personnel budget as $34,281 allocated for this purpose.
The Council has two alternatives:
1. Adopt Resolution Authorizing the Mayor and City Manager to Enter into the
City's Standardized Contract for Professional Services with Springsted
Incorporated for Completion of a Position Classification and Compensation
Study in an amount not to exceed $33,725.00.
2. Table this item and provide staff with additional direction.
Iternative 1.
Frank BOYles,c)p
1 ~ !
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
RESOLUTION 06-XX
Motion By:
Second By:
WHEREAS, the State of Minnesota requires that government employers periodically report
compliance with pay equity legislation; and
WHEREAS, Failure to report, or reporting non-compliance, can have significant penalties; and
WHEREAS, the City Council has determined that maintaining competitive salary structure is key to
maintaining quality City staff; and
WHEREAS, the City Council has determined that it is prudent to periodically evaluate the City's job
descriptions for compliance with Pay Equity, Americans with Disabilities Act, and Fair
Labor Standards Act requirements; and
WHEREAS, the City's classification system was last evaluated in 1996; and
WHEREAS, the City issued a Request for Proposals and received three proposals; and
".-. WHEREAS, Springsted Incorporated has submitted a proposal that is within the projected budget, is
responsive to the City's needs, and has a long history of providing similar public sector
systems that are court-tested.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The Mayor and City Manager are hereby authorized to enter into the City's Standard Professional
services contract with Springsted Incorporated in an amount not to exceed $33,725.00
PASSED AND ADOPTED THIS 6TH DAY OF NOVEMBER, 2006.
YES
NO
I Haugen
Dornbush
Erickson
LeMair
Millar
Haugen
Dornbush
Erickson
LeMair
Millar
Frank Boyles, City Manager
~
WVJW ~cityqfpri.()rlCl.ke. coIl1..... ...
Phone 952.447.4230 / Fax 952.447.4245