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HomeMy WebLinkAboutCORRESPONDENCE - RFP - P928 CONSULTING SERVICES TO REVIEW MARKET ANALYSIS AND EMPLOYEE BENEFITS PRACTICES (3)AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL ITEM NUMBER: 16 DATE: May 4, 2004 STAFF: John F. Fischbach SUBJECT Resolution 2004-054 Authorizing the City to Enter into a Contract with Gallagher Benefit Services, Inc. for a Compensation and Benefits Study. RECOMMENDATION Staff recommends adoption of the Resolution. FINANCIAL IMPACT Staff is currently negotiating the final scope of work but the value of the contract is anticipated to be approximately $60,000. The funds necessary to complete this project will be taken from City reserves. EXECUTIVE SUMMARY Resolution 2003-147 created a two -person Council Committee, comprised of Councilmembers Eric Hamrick and Kurt Kastein, to work with various members of City staff in developing a scope of work and a competitive request for proposals process to obtain the services of one or more employee compensation and benefits consultants. The Committee has completed the selection process in accordance with Section 8-158 of the City Code, and is recommending adoption of this Resolution selecting the best qualified consultant Gallagher Benefit Services, Inc. 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 A request for proposals was drafted and issued to over 32 interested consulting firms. It was also available from the City's web site. Proposals were received from 11 firms. The following three firms were selected for interviews: • The Segal Company • Gallagher Benefit Services and Lee & Burgess Associates • KPMG May 4, 2004 -2- Item No. 16 Interviews were held on April 7, 2004. After checking references the Committee recommends Gallagher Benefit Services, Inc. as the best firm to complete this study. The fee for its services may range from $48,500, to approximately $60,000, depending on the negotiation of the final scope of work. Gallagher Benefit Services, Inc. is very familiar with the Colorado market in addition to having nationwide market study experience. The consultant and the Committee are committed to meeting the July 30 reporting date. RESOLUTION 2004-054 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CITY TO ENTER INTO A CONTRACT WITH GALLAGHER BENEFIT SERVICES, INC FOR A COMPENSATION AND BENEFITS STUDY 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 W IEREAS, 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 consultants (the "Consultant(s)") to review and make recommendations to the Council regarding employee benefits and compensation; and WHEREAS, on December 16, 2003, the Council by Resolution 2003-147 appointed Councilmembers Kastein and Hamrick as 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; and WHEREAS, the committee has completed the following tasks: (1) Working with City staff on the creation of a scope of work and request for proposals for the Consultant(s); (2) Participating in the selection process for choosing such Consultant(s); (3) Bringing back to the Council for its approval a final recommendation as to the party or parties to whom the Consultant(s) contract should be awarded in accordance with the competitive sealed proposal process described in Section 8-158 of the City Code; WHEREAS, as a result of the selection process, which was conducted in accordance with Section 8-158 of the City Code, Gallagher Benefit Services, Inc. is being recommended as the consultant to perform this study; and WHEREAS, the estimated cost of the work will be approximately $60,000. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the City Manager is hereby authorized to enter into a contract with Gallagher Benefit Services, Inc. to perform the Compensation and Benefits study for a fee of approximately SIXTY THOUSAND DOLLARS ($60,000), on such terms and conditions as the City Manager, in consultation with the City Attorney, determines to be in the best interests of the City. Passed and adopted at a regular meeting of the Council of the City of Fort Collins held this 4th day of May, A.D. 2004. Mayor l:NWy*41" City Clerk