Comprehensive Compensation Study

The City of Santa Cruz, located in Santa Cruz County, California, is conducting a comprehensive compensation study through Request for Proposal (RFP) No. HR-0142 to evaluate and potentially revise its municipal workforce compensation structures. The city seeks qualified consulting firms to perform a detailed market analysis of its approximately 900 regular and 250 temporary employees across 326 job classifications organized into 15 job families. Key objectives include conducting a thorough review of current compensation systems, benchmarking against comparable municipalities like Alameda, Milpitas, and Monterey, and developing recommendations for pay scales, benefits, and non-monetary compensation strategies. Specific deliverables will involve evaluating internal equity, assessing compensation fairness across demographic groups, and addressing compensation challenges in a high-cost housing region. The RFP was released on June 10, 2024, with proposal questions due by June 21, 2024, and final proposals due by July 18, 2024, at 4:00 pm. The selected consultant will be expected to provide a comprehensive analysis that includes reviewing job classifications with insufficient previous data, as outlined in the attached Exhibit A document.

The RFP does not explicitly mention specific set-aside designations or restrictions for disadvantaged enterprises. The contract will be for an initial one-year term with potential for two renewals, not to exceed a total of five years. While specific budget ranges are not detailed, the proposal requires vendors to submit comprehensive cost proposals including all direct and indirect costs, with pricing to be evaluated competitively. The city's Professional Services Agreement (PSA) template indicates stringent insurance requirements, including Commercial General Liability ($1,000,000 per occurrence), Professional Liability ($2,000,000 per occurrence), Automobile Liability ($1,000,000), and Workers' Compensation as mandated by California state law. Prospective consultants must demonstrate a proven track record in conducting municipal compensation studies, with expertise in market analysis, job classification review, and developing comprehensive compensation strategies. The city's strategic plans, including the Citywide Strategic Plan and Health In All Policies, will serve as guiding frameworks for the compensation study.