Title
Organizational Staffing Analysis
History
Due to declining revenues, the Village has reduced its operating expenditures by approximately $4.4 million over the past 2 budget cycles. This included a reduction in staff by nearly 10%. In order for the Village to continue providing efficient services, it is necessary to evaluate any opportunities to recalibrate the organizational staffing and operational model of the Village. It is accepted as good management practice to periodically and independently review the organization, which often results in bringing forward a perspective of best practices in municipal operations. The Village has not had an independent review in over ten years.
On March 7, 2011, the Village Board passed a resolution in support of the issuance of a Request for Proposals (RFP) for a Village staffing analysis. On March 21, 2011, the RFP was issued for organizational staffing analysis services. The RFP provided the scope for an analysis that would require a consultant to report findings and develop recommendations for efficient allocation of staff in each individual department to minimize the Village’s costs to provide services, with attention to direct and overhead costs, core competencies, strengths and weaknesses, skills gaps, and continuous improvement.
Three proposals were received by the due date of April 11, 2011. The proposals were reviewed based on the qualifications of the firm, methodology and responsiveness to requested deliverables, relevant experience and quality of references. It was important that the selected firm have successful past performances working at the municipal level with similar size and scope.
After reviewing the proposals, the two firms with Illinois offices were requested for an interview. At the conclusion of the interviews, the Village Manager is recommending that Matrix Consulting Group be selected to provide the organizational staffing analysis services. The selected firm has demonstrated a strong work plan, understanding of the requested services and has successfully completed a multitude of projects of similar size and scope. Their only market and service focus is management, staffing and operations analysis of local government. They also have a high rate of successful implementation, which exceeds 80% of recommendations made.
Representatives from Matrix anticipate a 12 week schedule for this project which is appropriate. The cost proposal from Matrix was reduced after some negotiation from their initial proposal of $49,000 to $44,900. The competing proposals submitted were priced at $52,480 and $58,500. The Matrix proposal is attached. The competing proposal responses are available in the Village Manager's Office for your review.
Financial Impact
The total project cost is $44,900. Funds are budgeted in account number 010-1100-413-32.80 for the Organizational Staffing Analysis in the amount of $40,000. The additional $4,900 needed is available within this cost center.
Recommended Action/Motion
I move to approve awarding a contract to Matrix Consulting Group of Palo Alto, CA to provide organizational staffing analysis services as outlined in their April 11, 2011 proposal in an amount not to exceed $44,900.