Item Coversheet
City of Independence

Agenda Title:

Council action is recommended to issue a purchase order to Gallagher Benefit Services, Inc, in the amount of $84,275.00  for a Classification and Compensation Study.

Council action is recommended to issue a purchase order.

A complete classification/compensation study was performed for the City in 1995 with implementation in FY 1996/1997. The current number of active job titles is approximately 320 with +/- 1,200 active employees. The City’s current pay plan has been modified due to significant changes in the duties, responsibilities, and requirements of various positions through a reclassification process and several market-based salary benchmark studies during the past twenty years. During that time, the City has periodically adjusted upward the salary ranges contained within the plan (i.e., “plan adjustments”) to reflect changes in cost of living and other market conditions. Funding was included in the Fiscal Year 2017-18 budget to perform a citywide compensation study to review all positions and ensure job descriptions and salary ranges reflect current duties and peer positions in the market. 


A Request for Proposal for a Classification and Compensation (Market Pay) Study was issued by the Procurement Division on March 28, 2017. The purpose was to hire a firm to conduct a comprehensive compensation and classification study of jobs in the City of Independence government, creating a credible Classification & Compensation Plan. The study shall evaluate the City of Independence overall classification and salary schedule. A new salary schedule may be needed to revise the number of grades and provide an updated rationale for certain positions.


The City received five proposals. An internal review committee comprised of City employees evaluated the proposals based on the RFP criteria:

· Time proposed to complete the project(s)

· Level of expertise of the firm & staff assigned

· Level of public sector experience of firm & staff assigned

· Content & quality of the proposal

· References

· Price of services

The firms that responded were Arthur J. Gallager and Company, Evergreen Solutions LLC, Insight Consulting, McGrath Consulting Inc, Springsted Incorporated and the Segal Company. After a preliminary review of the respondents Gallagher, Evergreen Solutions, Springsted, and the Segal Company were interviewed. After interviews, the selection committee chose Gallagher for recommendation as the best value proposal. 


Gallagher committed to the fastest timeline of all respondents for completing the project. The company has more than 30 years of nationwide experience providing classification and compensation services. Firm and staff are very familiar with public sector, municipalities, utilities and union environments.


Gallagher demonstrated it can meet the City’s needs. Gallagher offered an alternative to the point system job evaluation, whereas the proposals from Springsted, Evergreen. and Segal are fixed on using a point system evaluation method. The point system method, which has been used in the past by the City has proven to be biased and unsuccessful.


Gallagher provided many good regional and state references. Gallagher also successfully performed an Independence Power & Light market pay study in 2016.The cost proposal was one of the most competitive received and within the available budget for the project. The professional services agreement, including scope of work, preliminary timetable, and fee schedule, is attached.


The project was advertised

1. On the Procurement Division’s website.

2. On Public Purchase (, the City’s e-procurement website provider, of which 105 firms were notified and 20 accessed the RFP.

3. On the Procurement Division Twitter website.

Approval of this item authorizes the Procurement Manager to issue change orders up to a total of ten (10) percent of the original authorized amount for each order, providing appropriations are available.

Fiscal Impact:

Requisition: 67633 OR
Amount:      $
Acct. No.:    4300-5226

Fund:  Human Resources

Department:          Human ResourcesContact Person:          Debra Craig

Purchasing Division (Finance Department)Approved
Human Resources DepartmentApproved
Finance DepartmentApproved
Finance DepartmentApproved
City Managers OfficeApproved
City Clerk DepartmentApproved

Council Action:          Council Action:          Accepted

Selection Committee Score SheetBackup Material
Professional Services AgreementContract
Exhibit A - Market Pay Study Scope of Services Contract
Exhibit B - TimelineContract
Exhibit C - Fee ScheduleContract