HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/16/2003 - RESOLUTION 2003-147 AUTHORIZING THE FORMATION OF A ITEM NUMBER 22
AGENDA ITEM SUMMARY DATE December 16, 2003
FORT COLLINS CITY COUNCIL STAFF John F Fischbach
SUBJECT
Resolution 2003-147 Authorizing the Formation of an Ad Hoc Council Compensation and Benefits
Committee
RECOMMENDATION
Staff recommends adoption of the Resolution
FINANCIAL IMPACT
The cost of a comprehensive employee compensation and benefits study could range from$100 000
to $350,000, depending on the final scope of work that is adopted and the services provided by the
chosen vendor The funds necessary to complete this project will be taken from City reserves
EXECUTIVE SUMMARY
The proposed resolution establishes a two person Council commmttee,comprised of Councilmembers
Eric Hamrick and Kurt Kastem, to work with various members of City staff in developing a scope
of work and a competitive bid RFP process to obtain the services of one or more employee
compensation and benefits consultants The ad hoc Council committee will also review the various
responses to the RFP and make a recommendation to the City Council for the adoption of a
resolution selecting the best qualified consultant or consultants The consultant(s) will work with
the committee and City staff to generate a final report to Council containing recommendations
regarding employee compensation and benefits
BACKGROUND
Each year City staff conducts a comprehensive compensation and benefits market analysis to
determine the prevailing pay rates and benefit practices among employers comparable to the City
This annual process has provided City staff with specific market information and has identified areas
where changes or adjustment to our compensation and benefits programs needed to be made
During the 2004 2005 budget process Councilmembers expressed concern regarding a number of
issues including the level of employee benefit premiums,the established practice of benchmarking
other employers to provide market comparisons for our compensation and benefits programs the
December 16, 2003 -2- Item No 22
Council-adopted philosophy of setting pay range maximums at the calculated market 70th percentile
among others
This resolution establishes an ad hoc Council committee to work with City staff as a means of
addressing these concerns Specifically it is proposed that the committee will be comprised of
Councilmembers Eric Hamrick and Kurt Kastem The committee will work with representatives
from the City Manager's office and the Human Resources department to define a scope of work that
the outside human resources consultant(s)will perform write an RFP for a competitive bid process
select the best qualified consultant(s) among those responding to the RFP and propose for City
Council adoption a resolution selecting the best qualified consultant or consultants The
consultant(s) will work with the committee and City staff to generate a final report to Council
containing recommendations regarding employee compensation and benefits
RESOLUTION 2003 147
OF THE COUNCIL OF THE CITY OF FORT COLLINS
REGARDING THE SELECTION OF A BENEFITS
AND COMPENSATION CONSULTANT
WHEREAS the City Council recognizes that the City's compensation and benefits practices
constitute a substantial portion of the City s operating budget, and
WHEREAS the rate of inflation for employee benefits continues to exceed budgetary
projections and
WHEREAS, it has become necessary in order to help maintain the economic health of the
City to freeze labor market adjustments for City employees in 2003 and to also freeze City
employees salaries for 2004 and 2005, and
WHEREAS on November 4 2003 the Council approved Resolution 2003 118 adopting
amendments to the City s Financial Management Policies except for the section on compensation
and benefits which was to be further considered at a later date, and
WHEREAS, the Council believes it would be in the best interests of the City to hire one or
more outside benefits and compensation consultant (the Consultant(s) ) to review and make
recommendations to the Council regarding employee benefits and compensation and
WHEREAS the Council further desires to appoint an ad hoc committee of Council to
participate in the process of selecting the Consultant(s), and to work with the Consultant(s) to
produce a final report to the Council
NOW,THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
FORT COLLINS that the Council hereby appoints Councilmembers Kurt Kastem and Eric Hamrick
to serve as an ad hoc Compensation and Benefits Committee for the following purposes
1) To work with City staff on the creation of a scope of work and request for proposals
for the Consultant(s)
2) To participate in the selection process for choosing such Consultant(s),
3) To bring back to the Council for its approval a final recommendation as to the party
or parties to whom the Consultant contract should be awarded in accordance with the
competitive sealed proposal process described in Section 8-158 of the City Code
(4) After the hiring of the Consultant(s), to work with the Consultant(s) and City staff
to generate a final report to the Council regarding employee compensation and
benefits in adequate time to process the recommendations for the 2005 exception
process
Passed and adopted at a regular meeting of the Council of the City of Fort Collins held this
16th day of December A D 2003
Mayor
ATTEST
City Clerk