City council approved funding for a class and compensation study in this fiscal year.  The study will allow a systematic evaluation of the job descriptions and pay bands for full time city jobs.  The key long-term goal of the study is to deliver recommendations for consistent, fair, transparent practices in establishing compensation.

The city has about 130 jobs, or job families to be reviewed.  Jobs to be evaluated are full time appointed and civil service positions.  This study does not include elected the Mayor and City Council salaries.  Mayor and City Council salaries are determined as outlined in municipal code.

The Korn Ferry Hay Group proposes conducting the salary survey in four phases.  First, there will be interviews and data collection.  During this phase, the vendor will participate in kick off meetings to make sure that the project timeline, milestones and mutually agreed on successful outcomes are clear and are communicated.  They will also obtain data such as current job descriptions and pay ranges to use as a starting point.  The second phase is job evaluation.  In this phase, feedback will be solicited from line employees to managers about what jobs entail.  The vendor has developed standard collection methods for this information to allow them to translate it into a consistent format.  This is a very important element of keeping the system intact, and allowing comparisons across jobs.  The third phase is an internal equity analysis and salary structure development.  During this phase, city jobs are placed in a job level matrix to make sure that comparable jobs are aligned in the structure.  This is the internal equity portion of the study.  Market survey data from benchmark jobs is then used to create external equity, meaning alignment with the outside job market.  From this, a recommendation for a salary structure will be developed.  The final phase is the reporting phase.  The vendor does not have authority to implement changes.  However, they will provide their work product to the city as a recommended job and salary structure.  Actual changes to job titles and/or salaries would require changes to resolutions and contracts.  Throughout the process, one theme should be evident.  Participation, communication and transparency with City employees are key aspects of the work.  They tie directly back to the ultimate determination of whether the project achieves its stated goals.

Staff recommends the use of vendor Korn Ferry Hay Group to facilitate this project.  The advantage of using a vendor is that they bring specialization and expertise in this ever changing field, and have developed a systematic and tested method of reviewing and comparing jobs. The services to be provided are “professional services” which are exempt from a competitive bidding process under NRS 332.115. In order to find the right vendor for this project, the City of Sparks sought a vendor with government and union class and compensation background.  The city also looked for a vendor with prior experience throughout the state and specifically in Northern Nevada.  The Korn Ferry Hay Group has over 70 years of expertise in class and compensation, they have the government and union experience and they come with experience in Nevada.  They are also industry recognized and highly regarded for a well-designed approach to class and compensation.  Washoe County is an example of a local public agency that has used this vendor for over 15 years.  Therefore, this particular vendor stood out in a limited field of potential vendors as the one with the expertise needed for the project.  Attached for review is a copy of the proposal.

1. The City Council may award the contract to Korn Ferry Hay Group.
2. The City Council may not award the contract to Korn Ferry Hay Group.
3. The City Council may not award the contract to Korn Ferry Hay Group, and direct the City Manager to provide alternatives to staff.

I move to award the contract with Korn Ferry Hay Group in the amount of $90,000.