Meeting Date:

October 20, 2008


The cost is included in the FY2007-2008Budget





Darby Fuerst,


77-40 Consultants


General Manager

Line Item No.:



Prepared By:

Cynthia Schmidlin

Cost Estimate:



General Counsel Approval:N/A

Committee Recommendation:The Administrative Committee reviewed this item on October 14, 2008, and recommended approval.

CEQA Compliance:N/A


SUMMARY:The Districtís current labor agreements with its three bargaining units state that the General Manager may make a recommendation to the Board of Directors regarding the initiation of a survey of compensation and/or classification for the coming year. Such studies keep the District up to date with changes in the labor market that effect recruitment, and employee retention.Classification/compensation studies address changes that have taken place in the assigned duties of staff and facilitate a review of organizational efficiency. The proposed study will update the Districtís job descriptions and provide a thorough comparison of District base compensation to that of other public and private employers in the surrounding area.The proposal submitted by Public Sector Personnel Consultants (Exhibit 6-A) offers a comprehensive approach based upon extensive public agency experience, including work with other water districts. The study will be completed over a period of approximately three months, with subsequent presentation of its findings, at a cost of $23,500.


RECOMMENDATION: Authorize expenditure of budgeted funds to retain Public Sector Personnel Consultants (PSPC) to conduct a classification and compensation study at the District. Proposals from the four consulting firms who responded to the Districtís Request for Proposal were evaluated using five criteria.The consultantís qualifications and experience, understanding of the project, methodology, references, and cost estimates were examined and rated using a point system.


PSPC received scores in each category that were equal to or above its competitors, as well as the highest total score.This firm was formed in 1972 as the Public Sector Group of the international human resources consulting firm, Hay Associates, recognized as a leader in classification practices.PSPC was established as an independent firm in l982.†† In the past 26 years, the firm has provided consulting services to over 1,000 public employers throughout the U.S. including a large number in California.PSPC has recently performed studies at Monterey Salinas Transit and the City of Seaside and is well acquainted with the Monterey Peninsulaís cost of living and wage levels.Excellent client references stress PSPCís thorough report methodology and clear explanation of results to both employees and governing bodies, resulting in consensus on study results and implementation.Although all of the competing firms proposed putting systems in place to allow updating of study results by District staff, only PSPC offers their unique automated personnel compensation planner, ďEZ CompĒ.This software allows clients to perform their own subsequent compensation surveys and enter that data onto customized spread sheets.The software then performs compensation adjustments, retaining the agencyís internal relationship between positions. It can also prepare budget projections and other compensation-related reports. Additionally, PSPC has an Implementation Warranty that provides its clients with extensive support during the first year. This includes analysis, evaluation, classification, and recommendation on any new or changed position or entire job class at no additional cost.Current plans call for the results of the study to be presented to the Board of Directors at their Closed Session Meeting on March 16, 2009. This will enable the District to evaluate the resulting data and effects of incorporating resulting financial changes as part of the upcoming negotiations of successor Memorandums of Understanding with the employee bargaining units. The Human Resources Analyst will act as project manager for the study, coordinating the activities of the consultants with staff, and facilitating the entire process.


IMPACTS TO STAFF/RESOURCES:The FY 2008-2009 budget includes $38,800 for a classification/compensation study.The proposal by PSPC comes well below that amount.


BACKGROUND:District practice has been to commission an outside study of the existing classification and compensation system periodically.The most recent studies were completed in l996 and 2001.The District solicited proposals from five firms with established backgrounds performing California public agency classification/compensation studies.Four firms responded with proposals ranging in cost from $23,500 to $38,800.


The proposed study will address the position of the District, with respect to base compensation, to other public employers as specified in the Districtís Personnel Compensation Policy.The study will also determine if current job descriptions accurately reflect the duties being performed by staff and the levels of skill, knowledge, and responsibility involved.



6-A††††† Proposal to Conduct a Classification and Compensation Study