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AGENDA STAFF REPORT r=_ !
DATE: November 14, 2016
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Patrick Gallegos, Assistant City Manager
SUBJECT: CLASSIFICATION / COMPENSATION STUDY UPDATE
SUMMARY OF REQUEST:
That the City Council:
1) Receive and file an update on the Classification and Compensation Study;
and,
2) Provide input to the consultant regarding comparator agencies for
inclusion in Classification and Compensation Study.
BACKGROUND:
At its meeting on March 28, 2016, the City Council approved a Professional
Services Agreement with Koff & Associates ("Koff") for a comprehensive
• classification and compensation study ("Study") for all full-time and part-time
personnel. The City of Seal Beach last conducted a classification and
compensation study in 2008. It is recommended practice, as an industry
standard, to periodically review and update personnel classifications and adjust
compensation levels as necessary. The Study will determine whether the City's
defined classification structure and compensation levels are commensurate with
similarly-sized and geographically local communities.
The components of the Classification and Compensation Study broadly include:
• Updating the classification plan;
• Developing a classification structure reflecting the City's overall
classification and compensation strategy, with a clear definition of terms
and the development of career ladders for full and part-time staff;
• Conducting orientation and briefing sessions with employees, supervisors,
managers, and department heads;
• Matching labor market and benchmark classes most closely representing
the City of Seal Beach;
• Assigning salary ranges to each classification, reflecting the results of the
market survey and analysis of internal relationships;
Agenda Item P
• Assisting in the development of a strategy for implementing the
compensation recommendations and plan; and
• Presenting the final Classification and Compensation Report to the City
Council.
DISCUSSION:
On April 25-26, 2016, Koff hosted an orientation for employees to provide them
with an overview of the Classification and Compensation Study process and to
answer any questions from staff.
Following the orientation, Position Description Questionnaires (PDQs) were
distributed to all employees. The PDQs were completed by each employee,
reviewed by the employees' supervisors and were submitted to Koff for
evaluation.
In late July and early August, individual employee interviews were held over four
days with Koff Project Manager Georg Krammer and his staff. These interviews
were conducted to better understand the scope of work of each employee.
As part of this Study, Koff personnel seeks to engage the City Council in the
identification of the desired comparator agencies from which compensatory data
will be gathered. At the September 12, 2016 City Council meeting, Koff
presented thirty-five (35) comparator agencies for the City Council to consider
and recommended the top twelve (12) comparator agencies for the purposes of
the Study.
The top twelve (12) agencies brought forth by Koff for comparative purposes at
the September 12th City Council meeting were as follows (in,no particular order):
the cities of Brea, Buena Park, Huntington Beach, Redondo Beach, Fountain
Valley; Costa Mesa, Cypress, ark, Signal Hill, Cerritos, Brea, Bell Gardens,
Hermosa Beach, and Lakewood.
Criteria considered by which the comparator agencies were identified include:
comparable services, geographic proximity, agency population, full-time
employee to population ratio, median household income, and median home
price.
After a thorough discussion with the Council at the September 12th meeting, Koff
•
was directed to bring back some additional comparator agency options. Koff ran
four (4) additional scenarios (Attachment A) based on feedback from the Council.
Each of the four new scenarios include modifications to the criteria as follows:
Scenario 1: Removed Cost of Living
Scenario 2: Removed Cost of Living and added number of employees
Scenario 3: Removed Cost of Living, added number of employees, and
added additional weight for Marine Safety
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Scenario 4: Removed Cost.of Living, added number of employees, added
additional weight for Marine Safety, and removed geographic
proximity
In addition, it came to the City's and Koff's attention that the original analysis
contained a few inconsistencies, which .Koff corrected. Finally, the original
analysis was conducted with some Fiscal Year 2015/2016 financial data that was
available at the time. Since we are now in Fiscal Year 2016/2017, Koff updated
that data as well.
Based on these corrections and updates, the list of agencies based on the
original set of factors includes:
1. City of Huntington Beach
2. City of Redondo Beach
3. City of Cerritos
4. City of Costa Mesa
5. City of Fountain Valley
6. County of Orange
7. City of Buena Park
8. City of San Clemente
9. City of Lakewood
10.City of El Segundo
11 .City of Brea
12.City of Hermosa Beach
As depicted in the table (Attachment A), there are only a few agency changes
when adjusting the criteria, as described in the aforementioned scenarios.
Scenario 1 swaps the Cities of Brea, San Clemente and El Segundo for Carson,
Manhattan Beach, Hawthorne.and Newport Beach (four cities because the latter
two tied in score). For 'both. Scenario 2 and 3, Brea and Orange County are
replaced by Cypress, Bell Gardens and Signal Hill (again, the latter two tied).
Scenario 4 replaces Brea and Orange County with Covina, Calabasas and
Hawthorne (again, the last two cities tied).
After considering the feedback of the Council and weighing the outcomes of all
the scenarios, Koff recommends utilizing the following twelve (12) agencies for
the purposes of the Study:
1. City of Huntington.Beach
2. City of Redondo Beach
3. City of Cerritos
4. City of Costa Mesa
5. City of Fountain Valley
6. City of Buena Park
7. City of San Clemente
8. City of Lakewood
9. City of El Segundo
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•
10.City of Hermosa Beach
11.City of Manhattan Beach
12:City of Newport Beach
Given that other coastal cities would be most similar to Seal Beach in many of
the issues and challenges they all encounter, it=would be appropriate to swap out
some of the non-coastal agencies that scored better for other coastal agencies.
This would also provide better representation for Marine Safety. The above
recommendation includes an addition of two coastal agencies (Newport Beach
and Manhattan Beach).
The Council may also decide to create a separate supplementary Marine Safety
survey of comparator agencies such as the survey created in the City's 2008
Classification and Compensation Report. ("Report'). This Report included the
following supplementary Marine Safety survey agencies: Dana Point, El
Segundo, Hermosa.Beach, Huntington Beach, Laguna Beach, Manhattan Beach,
Newport Beach, Redondo Beach, San Clemente and Santa Monica.
It should be noted that Huntington Beach, San Clemente, Newport Beach,
Laguna Beach, and Long Beach have Marine Safety Departments that are most
closely aligned with the City with respect to training, command structure,
emergency operations, mutual aid calls, departmental outreach programs and
year round beach attendance numbers.
Georg Krammer, CEO from Koff &Associates, is available to discuss the findings
and recommendations further at the November 14th City Council meeting.
ENVIRONMENTAL IMPACT:.
There is no environmental impact related to this item.
LEGAL ANALYSIS:
The .City Attorney has reviewed and approved as to form.
FINANCIAL IMPACT:
There is no fiscal impact associated with this action.
RECOMMENDATION:
That the City Council:
1) Receive and file an update on the Classification and Compensation Study;
and,
Page 4
2) Provide input to the consultant regarding comparator agencies for
inclusion in Classification and Compensation Study.
SUBMITTED BY: NOTED AND APPROVED:
gG -1s-air %: .'ii . .%11/,At.&I
Patrick Gallegos J I r. Ingram, City Miler
Assistant City Manager
Attachments:
A. Comparator Agencies
Page 5
Attachment "A"
City of Seal Beach
Proposed List of Comparators
Total Compensation Study
October 2016
^'Comparator`..- - .. ---• - ... ' SCENARIO 4 --
SCENARIO 3
Agency SCENARIO 1 SCENARIO 2 • Wrout COL Geo;Plus
Wrout COL,Plus#of
Ranking (recommended at Without Cost of Wrout COL,Plus#of •#of EE's;Addl
EE's,Add.'Weight on ° •the 9/12116'.City: • Living' , '.EE's Weight on Marine• Marine.Safety-
Councllmeeting) _ - Safety
City of Seal Beach City of Seal Beach Ply of Seal Beach City of Seal Beach City of Seal Beach
1 Cy or H ntn9lori Beachi C tY oiNu rt n9ton Beach Cny of Cerritos Ciry of Cernilos City of Hermosa Beach
_
2 City of Redondo Beacham Clybf:Cer1051�Gty of HUnangtoaeeechllls City of Huntington Beach'Cily;ol Cerritos
._..,. ..... .. od ._....
3 City of Carnlos�Ciryp(Costa Mesas Cty of Hermosa Beacniilir City of Hermosa Beach City of Harlington Beach=
4 Clly of COStd MesallY111111Cly.bf,Buena Park City of lakew000■Qly of L'oke&ooOiel11111111City of San ClemiimnelliS
6 City o(FOUnten ValleyANINI County oi Oramje1111•11C p•a* City of FOUntain,Vallbyl♦ -IT O 's�3i"rtPJ'
6 County of Oranges GIyA(FOw1lan Vdlley�City-of FOnnteln Vdlleyr Q'I[��r�Yj City of El SegurWO�
__.. of _ .,_.._._ .�.. ._..
7 Qtyof Buena Par a& Beach Qty of Buena Pad7l11�City-of Buena Park'(}tlyAf Galabas�
9 City`of San beinerit7 C lyof Costa Mesal�Aff Cily of Costa Mesa_Qly;bf Buena Park
_ .i. Bi. , . ..._.,
9 City of Lakewwn�Cny otLakewodtl■CilybGRedondo BeachtiaClly of Redondo'Beach�Cty'oi Fountain Valley'
)0 Ct°bf El Se ntlo � t � - - � -�����
.y g � Ca Hemlosa Beafi� ;.�"R'-.�-�" .]ivy Cnybf El Sequndo7rr Citydf.Costa'Mesa�,
11 Cily of Brew Ittanha c Gale/Et Seguntlo' (a'1[fiI' City of Redondo Beach
12 City-of Hen*wsa Bearhlil� t oi)Iawltw n�q . Cape Szi Clemamel♦City of San ClerenteMIN fe'" u gL•rG3..
City o fC YP ress .gip ann ^e..- atii( j: Qa r-.J - ,_��az- . City of Lakewood
City of Carson City of Cypress County of Orange `. City of Coves City of Bell Gardens
... .......... City Ciry of Long Beach Ciry of i.e Habra City of Carson - County of Orange City of Cypress
City..it .of.C.._a ba............................
of Calabasas City of Brea City of Covina City of Carson _ City of Manhattan Beach
.. ._
City ofH tho City of long ............. ....___.e.._. Gay H ._.._ City o .____...
Ciry of Hawthorne City of Long Beach. Cny of Hawthorne City of HawNome of Brea -
.... City. ... .._
Qty ai La Habra City ai San Clemente..: City of Manhattan Beach Qty of Manhattan Beach City of La Habra
... ..it.. ...
City of Lomita City of El Segundo Ciry of Calabasas City of Calabasas County of Orange'
t ..nBea City of Manhattan Beach City of Gardena Citypf Paramount City of Paramount City pl Carson
......................... . i. City.i. ... ....
City of Newport Beach C of Calabasas City of Brea City of Brea City of Lawndale
City of Gardena City of Lawndale Cny of La Habra Qty of La Habra City of Newport Beach
C City i_. City ..........._.___
City of Covina Ci of Signal Hill City of Lawndale c of Lavmdale City of Laguna Beach
City of Lawndale City of Bell Gardens City of Newport Beach City of Newport Beach City of Signal Hill.
City of Si9natHll City of Covina City of Bellflower City of Lomita City of Paramount
..._ .... City
City of Ball Gardens City of Lomita City of Lomita City of Bellflower City of Lomita
..... C.... C ...C
City of Rancho Palos Verdes City of Laguna Beach City of Gardena City of Gardena City of Rancho Palos Verdes
Laguna ... City it . °. ...__ o..... r_.e._..............._..._.
City of Laguna Beach C of Paramount City of Long Beach City of Long Beach City of Gardena
City of Agoura Hills City of Bellflower City of Laguna Beach City of Laguna Beach City of Bellflower
City ..it. ....
of City of Stanton City of Rancho Palos Verdes City of Rancho Palos Verdes City of Agoura Hills
..........C.ity e............. City City it ._..,_,
City of Bellflower City of Rancho Palos Verdes City of Stanton C of Stanton City of Dana Point
... y City_ City of Dana Pont Qty of Santa Monica' City of Dana Point City Dana Point City of Long Beach
.._...._........._._.. .. yofSa._......_.o._i.._..._............. .
City of Santa Monica City of Agoura Hills City of Agoura Hills City of Agoura Hills City of Laguna Niguel
City of Stanton City of Dana Point City of Laguna Niguel City of Laguna Niguel City of Santa Monica
City of Laguna Niguel C ty of Lag na Niguel City of Santa Monica City of Santa Monica City of Stanton
(Recommended,[Comparator,A aencresW
Column A,Ranking based upon comparison score,
fi. -91itatt>Tik r-a f ` 'aIZYai 1ifT ThirdailfCEl `
Agencies highlighted in yellow have dropped of the top 12 due to change(s)in criteria
The Overall Comparison Score is comprised of the following criteria:
Geographic Proximity Comparison
Full Time Equivalents(FTE)to Population Ratio Comparison
Agency Financial to FTE Comparison
Cost of Living Comparison
Comparable Services Comparison
Recommended List of Comparators
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