REPORT TO THE CITY COUNCIL FROM: SUMEET MALHI, Director Personnel Services Department BY: JENNIFER MISNER, Assistant Director Personnel Services Department YER TAYLOR, Senior Human Resources Analyst Personnel Services Department SUBJECT ..Title Approve a Consultant Services Agreement with Evergreen Solutions, LLC, in an amount not to exceed $128,500 (RFQ No. 12401195) to conduct a comprehensive classification and compensation study for job classifications represented by Unit 1, Non-Supervisory Blue Collar (Local 39). ..Body RECOMMENDATION It is recommended that the City Council approve the Consultant Services Agreement between the City of Fresno and Evergreen Solutions, LLC, in an amount not to exceed $128,500 to conduct a comprehensive classification and compensation study for job classifications represented by Unit 1, Non-Supervisory Blue Collar (Local 39) and authorize the Personnel Services Director or designee to execute the Agreement on behalf of the City. EXECUTIVE SUMMARY On November 3, 2023, the Personnel Services Department released a Request for Qualifications (RFQ) to solicit bids for consultants to conduct a comprehensive classification and compensation study for job classifications represented by Local 39 to review and evaluate the existing classification system and compensation structure; survey comparable agencies to compare job descriptions, salaries, premiums, and other benefits; draft classification specifications; make recommendations on salaries; and provide subject matter expertise and recommendations on a classification and compensation program that meets the City's prime objective of attracting and retaining qualified talent. Four consulting firms submitted proposals in response to the RFQ. After a thorough review of the proposals, interviews with Personnel Services staff, and the completion of reference checks, Evergreen Solutions, LLC, (Evergreen) was selected as the consulting firm. BACKGROUND The City of Fresno and Local 39 negotiated a successor Memorandum of Understanding (MOU) that was approved by City Council on June 29, 2023. The successor MOU includes a provision for the City to conduct a comprehensive classification and compensation study, including but not limited to, the evaluation and recommendation of salaries, premium and certification pays, and classification structure regarding the 102 classifications and 900 positions represented by Local 39. Pursuant to the MOU, a subcommittee comprised of representatives from Local 39 and the City's Personnel Services Department convened to identify the initial framework of the study such as the scope of services of the study, comparable agencies, benchmark classifications, and survey information. Additionally, the MOU requires that compensation adjustments identified by the study be implemented up to $2.9 million dollars no later than December 30, 2024. On November 3, 2023, the RFQ was released which requested bidders to provide cost proposals for two service options: 1) a review and update of job descriptions and salary recommendations for all 102 classifications; and 2) a review and update of job descriptions and recommended salaries for only the benchmark classifications. Four consulting firms submitted responses to the RFQ. After reviewing all proposals, Personnel Services staff invited two consulting firms with potential to meet the needs of the City to participate in an interview and conducted reference checks on both firms. It was determined that Evergreen Solutions, LLC, would provide the best value for their services including recommendations for job description and salaries for all Local 39 classifications, exercised a methodology for data gathering and analysis which aligns with the key objective of the study, and offered a project completion timeline complimentary to the implementation parameters of the MOU. Evergreen Solutions, LLC, was formed in 2004 and is based in Tallahassee, Florida. With an expertise in classification and compensation studies for local governments and other public sector organizations, Evergreen has conducted classification and compensation studies for over 1,200 agencies in 47 states. Six consultants will be dedicated to the City's study. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act Guidelines Section 15378 this item does not qualify as a "project" and is therefore exempt from the California Environmental Quality Act requirements. LOCAL PREFERENCE Local preference was not implemented per Fresno Municipal Code Section 4-109(b)(3), as there were not three or more local firms providing the specific consulting service within the area of expertise for the subject matter of work. FISCAL IMPACT There is no impact to the General Fund. Approving the Consultant Services Agreement with Evergreen will not require additional appropriations. Attachment: Consultant Services Agreement