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HomeMy WebLinkAboutFC011122Minutes FINANCE COMMITTEE MEETING January 11, 2022 _________________________________________________________________________________ Elected Officials Participating Virtually Staff Participating Virtually Councilmember Diane Buckshnis (Chair) Dave Turley, Finance Director Councilmember Will Chen Jessica Neill-Hoyson, HR Director Rob English, Acting Public Works Director Megan Menkveld, Assistant Finance Director Jeff Taraday, City Attorney Scott Passey, City Clerk Thom Sullivan, Facilities Manager 1. CALL TO ORDER The Edmonds City Council virtual online Finance Committee meeting was called to order at 6:00 p.m. by Councilmember Buckshnis. 2. COMMITTEE BUSINESS 1. Presentation to Adopt Resolution to amend the Purchasing Policies and Procedures for Job Order Contracting Mr. English introduced Michael Celesta, Gordian, and Facilities Manager Thom Sullivan. He explained a presentation was made to council in August 2020 regarding amending the purchasing policies to allow for JOC. In April 2021, the council approved issuing an RFP for a consultant to help administer the JOC program and in July 2021 the council approved a professional services agreement with Gordian. The packet includes the presentation made to council previously and the proposed resolution to amend the purchasing policy to allow JOC. He reviewed Job Order Contracting, a Washington State procurement option: • Procurement Options o Design – Bid – Build o Design – Build o General Contractor/Construction Manager o Job Order Contracting o Small Works Roster • Definition of JOC o "Existing Washington State RCW 39.10.420 to RCW 39.10.460  Job order contract" means a contract in which the contractor agrees to a fixed period, indefinite quantity delivery order contract which provides for the use of negotiated, definitive work orders for public works. • General reasons to choose JOC o Multiple projects that typically range from $25,000 to $500,000 in value o Total dollar volume of work is less than $4 million per year o Limited owner staff availability for proper implementation of other methods o Urgency for project completion • What is JOC’s construction niche? o Fast response for small repair, renovation, remodel and alteration projects o Services provided on an on-call basis o Lump-sum fixed price for each work order o Owner negotiates (consensus) the scope of work 01/11/22 Finance Committee Minutes, Page 2 o Cost coefficient is established upfront • Typical Projects o Facilities o Public Works & Utilities o Parks • Increased Opportunities for Small and Disadvantaged Businesses o JOC furnishes bonding for most subcontractors o JOC completes “red tape” requirements o JOC uses best value bid analysis for subcontractors & partners with subcontractors o JOC recruits small and disadvantaged businesses o JOC coaches subcontractors in all aspects of quality work, safety and project management (as needed) o JOC pays subcontractors promptly, typically subcontractor payment is not tied to JOC contractor’s payment from the owner, and no retainage is held. Mr. Celesta reviewed: • JOC Process o Small, Straightforward Project: 5-10 Working Days  Day 1-2: Joint Scope Meeting  Day 3-4: Pre Scope, Issue RFP  Day 5-6: Contractor prepares proposal  Day 7-8: Review proposal  Day 9-10: Issue PO o Larger, More Complex Projects: 30 Days • JOC Benefits o Simplifies the procurement process o Faster response time o Improves the quality of work o Preset pricing eliminates negotiations o Increases local subcontractor participation o Minimizes defaults, terminations and claims o Fully transparent process Questions and discussion followed regarding how JOC benefits minority and disadvantaged businesses, establishing a goal for WMBE, in-house and Gordian administration of JOC, Gordian’s role in JOC, JOC as a procurement solution, Gordian’s fee, and past presentations to council. Mr. Sullivan offered to answer committee members’ questions offline. Action: Consent Agenda 2. Non-Represented Employees Compensation Study Ms. Hoyson introduced Shannon Drohman and Kathy Marek, Compensation Connections. Ms. Drohman reviewed the executive summary: • Project Activities o Conducted base pay market study for 115 represented and non-represented positions o Reviewed and suggested revisions to existing wage scales o Recommended placement of positions into proposed wage schedules • Summary of Methodology o Used existing job descriptions o Utilized existing compensation policy o Strived for as many appropriate matches as could find between the City’s jobs and jobs in comparable cities and surveys o Matching includes job duties, position purpose, required qualifications, etc. 01/11/22 Finance Committee Minutes, Page 3 • Compensation goals o City updated compensation policy in 2021 • Market data sources City County Population Assessed Valuation Per Capita Issaquah King 38,690 11,966,058,762 309,280 Edmonds Snohomish 42,470 11,011,221,440 259,271 Bothell King/Snohomish 48,400 12,354,415,516 255,257 Mukilteo Snohomish 21,360 5,444,416,654 254,888 Shoreline King 56,980 11,637,183,574 304,233 Lynnwood Snohomish 40,690 7,503,860,299 184,415 Puyallup Pierce 42,700 6,928,321,607 162,256 Burien King 52,300 7,794,662,044 149,038 Olympia Thurston 54,150 7,741,414,390 142,962 Lacey Thurston 52,910 7,268,934,236 137,383 o Compensation policy also states that other local government agencies and private employers may be taken into consideration when they are determined to be a relevant factor in the City’s labor market. o Pay data was researched using published survey sources. These surveys utilize compensation information provided by hundreds of employers in the public and private sectors. o Utilizing published surveys rounds out the data for City of Edmonds jobs that were not in the comparable city data. The published survey data also reflects the broader labor market in which the City competes for talent. Survey source Market Sector Economic Research Institute Government CompAnalyst Government Milliman Public Employees Government Compdata Government Milliman Puget Sound Government Milliman Northwest Government • Market Reference Point o When researching pay data in published surveys, 25th, 50th (median), and 75th percentiles were noted. For comparator organization research, pay scales for each position were noted and used to calculated the midpoint, which represents 50th percentile (median). o When comparing the City’s pay scales to market, 50th percentile (median) was utilized in alignment with compensation policy and goals. Most public and private sector organizations use 50th percentile as their market reference point. • Findings and Recommendations for Non-Represented Positions o In comparing the current non-represented salary scale to the market data, found current salaries to be approximately 6% below the market median overall. Suggest the City increase non-represented salary scale's dollar amounts to better align with the market. o Also examined placement of each non-represented job within salary scale to determine if any jobs might be a better fit in a different salary range, based on the market data. Found 29 jobs (39 people) move to a higher salary range. o If City implements proposed salary scale and job placement changes for the non- represented employees, 39 people would be eligible for a pay increase. Total increase would be $220,409 or 2% of the City’s total salary budget. • Labor Market Context o Seeing a significant number of salary scale and job placement changes with every organization. Puget Sound labor market has historically been challenging for employers, with consistently low unemployment and steady wage growth. 01/11/22 Finance Committee Minutes, Page 4 o Rate of unemployment for area is fluctuating around 5% and CPI-U growth is over 6% (per the U.S. Bureau of Labor Statistics) which adds to an already difficult climate for employers as they hire and retain staff. Ms. Drohman reviewed additional materials provided in the packet: • Non-Represented Market 50th and Job Matching o Summary of all market data collected at 50th percentile for each non-represented position o Details of survey source, survey job match title and survey 50th percentile (median) pay data for each NR position. • Non-Represented Salary Scale Adjustment o In comparing current NR salary sale to the market data, found to be approximately 6% below market median overall o Comparison of grades by current grade midpoint, market 50th, and variance  Overall (average) variance: 6.7% below market • List of increase to range mid-point for non-represented positions by department and job title Ms. Hoyson advised two items related to compensation that are not included and will be addressed separately are, 1) revising the Police Department command structure, and 2) potential adjustment to the WWTP Supervisor wage (following bargaining to ensure the position is aligned with positions below it). Questions and discussion followed regarding the number of 115 employees that are represented versus non-represented, the change to add assessed valuation to the policy, whether other cities use assessed valuation in determining comparable cities, factors considered in the previous policy, concern some of the 29 jobs recommended to move to a higher salary are new hires, whether the compensation study considers total compensation, consideration of benefits in the budget, WCIA survey versus published survey sources, concern wages in published survey sources may not be comparable, cost of labor adjustment based on cost of living, and benefits the City provides. Action: Presentation to full Council 3. Eden Replacement Ms. Menkveld • Recommendation o Approval for signature by January 27, 2022  January 18th - Presentation to council  January 25th - Approval • Use of ARPA Funds – Mr. Taraday opinion forthcoming o ARPA Example: Mt. Vernon and Puyallup using ARPA funds • RFP: Time-Consuming Front-End Work • RFP for Project Manager o Requires staff time to prepare o Requires extensive, specific experience  ERP System Implementation  Eden  Chosen replacement system (OpenGov, Munis) o Could make selection from existing referrals instead o Needs to happen before product RFP o May not need project manager if select OpenGov • RFP for ERP Product o Completed after contracting with a project manager 01/11/22 Finance Committee Minutes, Page 5 o Both the preparation of the proposal and response are technical and detailed, a lengthy process. OpenGov typically does not respond to RFPs for those reasons. o OpenGov is on the WA State list of National Association of State Procurement Officials vendors o There are realistically only three products on the market that make sense for Edmonds. (Inquiries have been sent to Munis and Springbrook with no response so far.)  Tyler Munis  Springbrook (no response)  OpenGov o Other cities have followed scientific methods in their product comparison • ERP Product Selection Example: Menlo Park, CA (population 34,000) • Waiver of Procurement (RFP Requirements(s) – Jeff Taraday opinion o Uniform exemptions to competitive bidding requirements (RCW 39.04.280) • Verbiage of RFP Waiver Example: Menlo Park, CA (City Council 09/22/2020) • New Items: OpenGov Budget & Planning Suite o Integrates all sorts of data into one dashboard tile  Financial (actual, budget, long-term forecast)  Operational (FTE’s, miles travelled, phone calls received, etc.)  Demographic  Capital Projects  Anything measurable and useful o OpenGov: Accessible to Limitless Users (Eden not accessible or useable except for designated staff) o Easy to build  User friendly, intuitive webpage builder  City has an inhouse web systems analyst o Live online examples  Alameda, CA (Budget Book) https://stories.opengov.com/alamedaca/published/h6Dp2kbXH  Hayward, CA (CIP) https://stories.opengov.com/haywardca/published/4w8NCiahX • Public Feedback o Ashland, OR  Both an Online Budget Book and PDF version of book were put online for the public. After several months, PDF received about 5 downloads and Online Budget Book had over 1,000 users.  Finance Director said residents have used information from Online Budget Book and Transparency Portal during council meetings to refute claims of mismanagement of funds. o Minneapolis, MN  Budget-watchers routinely expressed appreciation for level of financial transparency on website.  Notable increase in the level of public debate around the budget  Video instructions and on-screen navigation help available so they can do as much or as little as they can • Costs & Budget Impacts o Whole ERP, Menlo Park, CA: $1,006,394 o Budget Suite Only, Mt. Vernon, WA: $312,666 o Budget Suite Only, Puyallup, WA: $359,105 • City of Edmonds ARPA Funds Appropriation Schedule o Funds remain in various accounts Questions and discussion followed regarding whether the pandemic qualifies as an emergency, and council access to OpenGov and lack of access to Eden. 01/11/22 Finance Committee Minutes, Page 6 Committee members and staff agreed to schedule a special Finance Committee meeting on Friday, January 14 at 2:00 p.m. to finish this presentation and the November 2021 Monthly Financial Report. Action: Full Council 4. November 2021 Monthly Financial Report This item was postponed to January 14th special Finance Committee meeting. 3. ADJOURN The meeting was adjourned at 7:28 p.m.