HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/16/2016 - RESOLUTION 2016-017 APPROVING AN EXCEPTION FROM COAgenda Item 10
Item # 10 Page 1
AGENDA ITEM SUMMARY February 16, 2016
City Council
STAFF
Gerry Paul, Director of Purchasing & Risk Management
Kelly DiMartino, Assistant City Manager
SUBJECT
Resolution 2016-017 Approving an Exception From Competitive Process Requirements for the Purchase for
the Consulting Services from Revolution Advisors.
EXECUTIVE SUMMARY
The purpose of this item is to request an exception to the competitive purchase process for the contracting of
services with Revolution Advisors to continue to implement recommendations of the 2014 Compensation and
Career Progression Study.
Exception to Competitive Bidding Rationale:
Code Section 8-161(d)(1)(b). Although there exists more than one (1) responsible source, a competitive
process cannot reasonably be used or, if used, will result in a substantially higher cost to the City, will
otherwise injure the City’s financial interests or will substantially impede the City’s administrative functions or
the delivery of services to the public.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
BACKGROUND / DISCUSSION
In 2014, the City of Fort Collins utilized a competitive purchase process and contracted with Revolution
Advisors to complete a Compensation and Career Progression Study. This study analyzed current
compensation policies and programs, including how the City defines “market,” the job analysis system, and the
current performance-based pay methodology. The Study identified opportunities for improvement to build a
high-performing culture, improve employee engagement, increase clarity and efficiency, and enhance
employee development and career options.
In 2015, based on the recommendations of the Study, the City partnered with Revolution Advisors to formalize
its recruitment and retention strategy utilizing a “Total Rewards” approach, where meaningful work, teamwork
and career development matter as much as salary and benefits. This strategy helps to identify and clearly
communicate the value of the total employment package at the City, as well as the expectations of employees
working for the City of Fort Collins.
The following aspects of the Total Rewards Strategy were implemented in 2015, with the support of Revolution
Advisors:
Quarterly Performance Alignment (QPA): The first priority identified was the implementation of a new
performance management system. QPA emphasizes meaningful discussions between supervisors and
employees, and more timely and accurate performance feedback.
Agenda Item 10
Item # 10 Page 2
A new Annual Pay Increases Framework has been developed, ending the forced distribution “Pay for
Performance” system and implementing a flexible program that provides Service Areas the discretion and
opportunity within approved budgets to award increases based on performance (results and behaviors), as
well as position in range and internal equity.
Finance Organizational Assessment: Recommendations from the Study indicated a need to develop a
Career Architecture, a job structure that is used to value jobs based on specific organization talent
priorities and needs, along with labor market drivers. It provides a consistent approach to identity job
levels, career paths, mobility criteria and pay. The Finance Organizational Assessment served as a pilot
for this work to identify approach, tools and techniques in preparation for a city-wide implementation.
Throughout the Study and implementation work, Revolution Advisors conducted numerous interviews with City
leaders and had hundreds of contact hours with employees at all levels. They have developed a deep
knowledge and understanding of the City of Fort Collins organization, culture and human resources policies
and systems. Leveraging this extensive expertise would be in the City’s best interest and will save significant
time and cost to the project.
The City seeks to continue to contract with Revolution Advisors to further implement the Total Rewards
Strategy and complete the city-wide implementation of the Compensation and Career Path strategy, as
developed during the Finance Organizational Assessment.
Adoption of this Resolution will allow this partnership to continue.
CITY FINANCIAL IMPACTS
The estimated cost for the three year project is as follows:
2016 - $264,122
2017 - $270,000 (estimated)
2018 - $160,000 (estimated)
Funds for the first year of the project are authorized in the 2016 budget. Funds for 2017-2018 will be requested
through the Budgeting for Outcomes process.
ATTACHMENTS
1. Revolution Advisors Scope of Services (PDF)
Scope of Services
Objectives
The City continues its journey to fully implement the Total Rewards program leveraging the
recommendations from the Compensation and
Career Path Study from Q4 2014.
With the successful launch of Total Rewards in 2015,
the City deployed the Quarterly Performance
Alignment (QPA) process to achieve the Meaningful
Work element of the strategy. Building on the
momentum, the City is now ready to implement the
Compensation strategy within Total Rewards. While
the next two phases of work focus on
Compensation, the continuous improvement of QPA
and the overall Total Rewards Strategy will be
included.
Phase I 2015: Total Rewards & QPA Launch
Phase II 2016: Compensation & QPA Upward Feedback
Phase III 2017: Compensation & Career
The objective of this program is to conduct a city-wide implementation of the selected Compensation
strategy developed during the Finance Organizational Assessment in Q2 2015. Leveraging the
outcomes, approach, tools and lessons learned from this project, each Service Area will analyze, develop
and implement the following with the support of Human Resources and Revolution Advisors:
1) Develop new job families to more appropriately align with the City’s established market
benchmarks (public and private), as well as the future direction of the City in this area.
2) Create consistency across the City in the hiring, management, deployment, and development of
all positions.
3) Create Career Paths that enable both horizontal and vertical career development.
4) Ensure that incumbent qualifications, scope of responsibility, authority, position structures and
compensations are appropriately aligned across the City.
Scope
Revolution Advisors will be responsible for providing the following services.
1. Manage the implementation activities of the Compensation program across all Service Areas in
two phases between Q1 2016 – Q4 2017.
ATTACHMENT 1
Revolution Advisors Compensation and Career Path Implementation SOW
January 26, 2016
2 | P a g e
NOTE: This scope of services covers only the 2016 Phase II of the project.
2. Implement the Compensation strategy to each Service Area including:
a. KICK-OFF: Data Gathering & Current State Assessment - assessment of the current
structures, jobs, responsibilities, compensation, and incumbents.
b. MAPPING: Future State Structure Development - development of the appropriate
future state job structure, roles, and compensation with alignment across the City
c. ANALYSIS: Future State Structure Approval - development of salary ranges based on
market pricing benchmarks.
d. IMPLEMENTATION - development of key communications and training materials to
support the deployment.
3. Provide enabling support for the development of a new job evaluation process that aligns with
the Compensation and Career Path strategy.
4. Manage the deployment of QPA Upward Feedback to include process design and development.
The project will focus on analyzing Fort Collins against best-in-class public and private sector
organizations using publicly-available and proprietary compensation benchmark data. Revolution
Advisors will work collaboratively with the City to ensure that the appropriate benchmarks are identified
at the start of the project.
Timing Service Areas
# of Employees
Regular
# of Job
Codes
Phase II 2016 Q2 Sustainability Services 23 17
Phase II 2016 Q2 Executive, Legal, Judical 48 35
Phase II 2016 Q3/Q4 Planning, Development & Transportation 287 106
Phase II 2016 Q3/Q4 Utility Services 332 140
690 298
Phase III 2017 Information & Employee Services 97 60
Phase III 2017 Community & Ops Services 223 99
Phase III 2017 Police Services 286 34
Phase III 2017 Financial Services 41 32
647 225
1337 523
"Proposed" Implementation Sequence
Revolution Advisors Compensation and Career Path Implementation SOW
January 26, 2016
3 | P a g e
The key activities associated with project are below:
Week
1-4
Week
5-8
Week
9 - 12
Week
13-16
Week
17 - 20
Week
21 - 24
Week
25 - 28
Week
29 - 32
Week
33 - 36
# Element Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
1
2
3
4
5
6
7
1
2
3
4
5
6
7
8
9
10
11
13
14
15
16
17
18
19
1
2
3
4
5
6
7
8
9
10
11
13
Revolution Advisors Compensation and Career Path Implementation SOW
January 26, 2016
4 | P a g e
Throughout each phase, there will be an ongoing focus on communications and change management to
keep stakeholders informed of project focus and progress. We will work with the City to minimize any
disruption associated with this through effective communications.
The deliverables for this project will include:
Deliverable
(Projected Date)
Description
3/30/2016 Program Plan & Approach
6/30/2016 Service Area #1 & #2: Job Architecture, Level Guide, Market
Pricing, Communications
9/30/2016 Job Evaluation Process
10/31/2016 QPA Process Guide – Upward Feedback
10/31/2016 Service Area #3 & #4: Job Architecture, Level Guide, Market
Pricing, Communications
Week
1-4
Week
5-8
Week
9 - 12
Week
13-16
Week
17 - 20
Week
21 - 24
Week
25 - 28
Week
29 - 32
Week
33 - 36
# Element Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
1
2
3
4
5
6
7
8
9
10
11
13
14
15
16
17
18
19
1
2
3
4
5
6
Revolution Advisors Compensation and Career Path Implementation SOW
January 26, 2016
5 | P a g e
Project Timing and Assumptions
The overall project timeline is anticipated to be 32 weeks from project launch. Project launch would be
targeted for March 1, 2016 and completion would be targeted for October 31, 2016. The project timing
would be subject to the following assumptions:
Revolution Advisors will have timely access to key leaders for the purpose of making required
decisions, and those decisions will be made without significant delay.
City leadership will confirm the Compensation strategy to include: job architecture, job
description templates and market pricing surveys and strategy within the first 4 weeks of the
project to ensure alignment prior to Service Area engagement.
Revolution Advisors will have access to key data required such as current state job descriptions,
current roles and responsibilities, metrics associated with the positions, incumbent data, and
others within 2 weeks of Service Area Kick-off.
Market Range / Compensation analysis will focus primarily on positions in each service area with
multiple incumbents with appropriate market comparators; it is estimated that 60% of the
positions in each service area will be directly benchmarked
The City will assign a Project Manager to this project, who will be the primary day-to-day point
of contact for the Revolution Advisors project team, and will be responsible for helping to
ensure that the project stays on schedule. The Project Manager will engage the proper
resources to support the implementation to include: process, training, communications, system
updates, etc. See Exhibit C for detailed client resource assumptions.
Revolution Advisors will have periodic access to City Leadership throughout the project for the
purpose of data gathering, feedback, decision making, including key deliverable review.
The City will provide administrative support for scheduling meetings, including appropriate
meeting facilities.
Communication and training materials will be developed and delivered by the City to all
appropriate employees and external community stakeholders with enabling support from
Revolution Advisors.
City to support market pricing activities including additional fees for market surveys not
included in the implementation cost below.
Should any of these assumptions prove not to be true, the project timeline and/or fees could be
impacted.
Revolution Advisors Compensation and Career Path Implementation SOW
January 26, 2016
6 | P a g e
EXHIBIT B
Contract Sum
Phase & Deliverables Costs (Fixed Fee) (1)
Phase II: Program Planning $15,000
Phase II: Service Area Implementation #1 and #2
Job Families & Sub-Families
Level Guides/ Career Paths
Market Pricing(2)
Change & Comms
$100,000
Phase II: Service Area Implementation #3 and #4
Job Families & Sub-Families
Level Guides/ Career Paths
Market Pricing(2)
Change & Comms
$120,122
Phase II: Job Evaluation /QPA Upward Feedback/ Program Close
$29,000
PHASE II TOTAL $264,122
(1)Fees do not include the 2017 Phase III: Compensation & Career Implementation
(2)Fees do not include cost of market surveys.
The following deliverables will be invoiced upon completion:
Program Planning
Job Evaluation/ QPA Upward Feedback / Program Close
For the Service Area Implementations, the fees will be billed in 2 even installments at 6 week increments
during those activities.
Revolution Advisors Compensation and Career Path Implementation SOW
January 26, 2016
7 | P a g e
EXHIBIT C
Client Resource Assumptions
CFC Team
Role Duration Allocation
1 Executive Sponsor Mar - Oct 10%
2 PM/CM Mar - Oct 30%
3 Comp Process Owner Mar - Oct 20%
4 Training Lead Mar - Oct 20%
5 Comms Lead Mar - Oct 10%
6 SA Champions Apr - Oct 10%
7 HR Business Partners Apr - Oct 10%
8 QPA Change Champions Apr - Oct 10%
SA Kick-offs, Level Guide Reviews
QPA Upward Feedback communication and training support
Program & Change Plan, City Engagement, Upward Feedback, Liasion to Process Owner on all deliverables
City Engagement, Job Eval Process, Career Architecture, Level Guides, Market Pricing
City Engagement, Training Delivery, Training Guides
Communications
Data Requests, QA on all deliverables
Deliverables
City Engagement, Program Decisions
-1-
RESOLUTION 2016-017
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING AN EXCEPTION FROM COMPETITIVE PROCESS
REQUIREMENTS FOR THE PURCHASE FOR THE CONSULTING
SERVICES FROM REVOLUTION ADVISORS
WHEREAS, Section 9-161(d)(1)(b) of the City Code authorizes the Purchasing Agent to
negotiate the purchase of supplies and services without utilizing a competitive bidding process
where the Purchasing Agent determines that although there is more than one source, the
competitive process cannot be used, or if used will result in a substantially higher cost to the
City, will otherwise injure the City’s financial interests or will substantially impede the City’s
Administrative functions or the delivery of services to the public; and
WHEREAS, in 2014 the City utilized a competitive bid purchase and contracted with
Revolution Advisors to complete a Compensation and Career Progression Study (the “Study”);
and
WHEREAS, the Study identified opportunities for improvement to build a high-
performing culture, improve employee engagement, increase clarity and efficiency, and enhance
employee development and career options; and
WHEREAS, in 2015 based on the recommendations of the Study, the City partnered with
Revolution Advisors to formalize its recruitment and retention strategy using a “Total Rewards”
approach; and
WHEREAS, this strategy helps to identify and clearly communicate the value of the total
employment package at the City as well as the expectations of employees working for the City;
and
WHEREAS, several aspects of the Total Rewards strategies were implemented in 2015,
including Quarterly Performance Alignment, a new Annual Pay Increases Framework, and
Career Architecture which is a structure that implements a method to value jobs; and
WHEREAS, Revolution Advisors has developed a deep knowledge and understanding of
the City’s organization, culture and human resources policies and systems; and
WHEREAS, the City seeks to continue to contract with Revolution Advisors to further
implement the Total Rewards Strategy and complete the city-wide implementation of the
Compensation and Career Path strategy, as developed during the Finance Organization
Assessment; and
WHEREAS, leveraging the extensive expertise of Revolution Advisors is in the City’s
best interest and will save significant time and cost to the continuing project; and
WHEREAS, the estimated cost for the project for 2016 is $264,122 and such funds are
authorized in the 2016 budget; and
-2-
WHEREAS, the estimated cost for 2017 is $270,000 and for 2018 is $160,000; and
WHEREAS, the funding for 2017 and 2018 will be requested through the Budgeting for
Outcomes Process; and
WHEREAS, the City Purchasing Agent and other City staff recommend the adoption of
this Resolution; and
WHEREAS, the City Code Section 8-161(d)(3) requires prior approval of this purchasing
method by the City Council for all procurements which exceed Two Hundred Thousand Dollars
($200,000).
NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That the City Council hereby approves the purchase of services from
Revolution Advisors for the years 2016 through 2018, as an exception to the City’s competitive
purchasing process requirements, for the reasons set forth herein.
Section 3. That the City Council hereby approves the total payment of $264,122 for
the services for 2016.
Section 4. That the Purchasing Director may use this approval, as authorized in City
Code Section 8-161(d)(4), as the basis for negotiating the additional purchase of services from
Revolution Advisors for up to two additional one year terms extending through December 2018.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this
16th day of February, A.D. 2016.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
7
8
1
2
3
4
1
2
4
5
6
7
Job Eval
Process
8 Weeks
7/1 - 8/31
Program
Close
4 Weeks
10/1 - 10/30
Utility Services
16 Weeks
7/1 - 10/30
Kick-off
4 Weeks
Mapping
4 Weeks
Analysis
6 Weeks
Implementation
4 Weeks
QPA Upward
Feedback
8 Weeks
7/1 - 10/31
14
15
16
17
18
19
1
2
3
4
5
6
7
8
9
10
11
13
14
15
16
17
18
19
Planning, Development & Transportation
16 Weeks
7/1 - 10/30
Kick-off
4 Weeks
Mapping
4 Weeks
Analysis
6 Weeks
Implementation
2 Weeks
Implementation
2 Weeks
Sustainability Services
12 Weeks
4/1 - 6/30
Kick-off
2 Weeks
Mapping
4 Weeks
Analysis
4 Weeks
Implementation
2 Weeks
Executive, Legal, Judicial
12 Weeks 4/1 - 6/30
Kick-off
2 Weeks
Mapping
4 Weeks
Analysis
4 Weeks
Program
Planning
4 Weeks
3/1-3/30