SR-600-002
PERSONNEL:KB:\PERSON\MISC\COUNCIL\STAFFRPT\COUNCI44
Council Meeting: September 24, 2002 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Authorize City Manager to Negotiate and Execute an
Agreement with Hay Management Consultants to Provide Classification
and Compensation Consulting Services for Municipal Employee
Association Classifications
INTRODUCTION
This report recommends that the City Council authorize the City Manager to negotiate
and execute a contract for classification and compensation consulting services from
Hay Management Consultants for an amount not to exceed $100,500, half of which will
be charged to Fiscal Year 2002-2003 and the other half to Fiscal Year 2003-2004.
BACKGROUND
The City contracted with Hay Management Consultants for classification and
compensation consulting services for management and information technology
classifications in 1998. The firm was chosen through a competitive process and was
selected based on its range of services and expertise in the area of public sector
compensation.
DISCUSSION
The classification and compensation system developed by Hay Management
Consultants reflects a specific methodology developed by Hay. It is the long-term
objective of the City to bring all of the City?s classifications under the Hay system. This
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will result in there being a consistent classification and compensation system that
covers all City classifications.
The Memorandum of Understanding between the City and the Municipal Employees
Association (MEA) provides for a classification and compensation study of all
classifications represented by MEA. The MEA classifications will need to be
incorporated into the classification system and compensation system that has been
established through the methodology used by Hay Management Consultants. It is for
this reason that additional consulting services from Hay Management Consultants are
necessary.
BUDGET/FINANCIAL IMPACT
Funds for this year are available in account number 01274.555060. The services will be
billed as they are required and are not to exceed $50,000 per fiscal year. Funds for
FY2003-04 will be included in the budget at the same amount.
RECOMMENDATION
It is recommended that the City Council authorize the City manager to negotiate and
execute a contract for classification and compensation services from Hay Management
Consultants in an amount not to exceed $50,000 for FY2002-03 and $50,000 for
FY2003-04.
Prepared by: Karen Bancroft, Director of Human Resources
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