To: Board of Supervisors
From: Public Works
Agenda Section: Consent
SUBJECT:
title
Municipal Resource Group (MRG) Proposal for Review of Road Division and Engineering Classifications and Budget Transfer from Contingencies (4/5 Vote Required)
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Approve the attached proposal from MRG for classification review of Road Division and Engineering for the Department of Public Works; and
2. Approve the attached budget transfer in the amount of $44,935 for Fiscal Year (FY) 2022-23 from General Fund Contingencies (4/5 vote Required).
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SOURCE OF FUNDING:
General Fund Contingencies (1100990)
Road Fund (1200)
DISCUSSION:
The County of Humboldt has used the services of the MRG for many years. MRG provides investigative services to the county, including reviewing of documents, interviews with staff members, phone conferencing, preparation of summaries or reports and the preparation of appropriate factual determinations. MRG provides human resources (HR) and personnel support services related to the work environment and provide additional services that are reasonably required.
The current professional services agreement with MRG was approved by the Humboldt County Purchasing Agent on July 21, 2021, in an amount not to exceed $60,000 with a term through June 30, 2022. In March 2022, the First Amendment to the agreement was executed to increase the maximum payable of $346,150. At this time the Board granted authority to the County Administrative Office (CAO) to execute any and all subsequent amendments to the attached with MRG, after review and approval by County Counsel and Risk Management.
The professional services agreement has since been amended for the second time by the CAO to extend the agreement term date through June 30, 2023 and increase the maximum amount payable to $381,350.
If the attached proposal and supplemental budget is approved the CAO will execute a third amendment to include both the scope of work outlined in the proposal for the Class and Compensation study of Road Division and Engineering for the Department of Public Works and the increase in compensation for services rendered.
FINANCIAL IMPACT:
The attached proposal from MRG has a total payable of $44,935. However, in the event local, state, or federal funding is reduced or eliminated, the County of Humboldt may reduce the above-referenced maximum amount payable or terminate the attached professional services agreement with the with Municipal Resource Group, LLC.
The FY 2020-21 Annual Road Report, completed by the State of California, reflected an estimated negative fund balance of $5.9 million in the county’s Road Fund. While American Rescue Plan Act (ARPA) funds have been allocated to help offset this negative fund balance, there remains an ongoing imbalance of revenues to expenditures in the Road Fund. As a result, the Road Fund does not have sufficient funds or budget to cover the cost of the attached proposal and is requesting use of General Fund Contingencies. The attached Budget Transfer Form moves appropriation from General Fund Contingencies (1100990) to the County Administrative Office Budget Unit (1100103), which is overseeing the MRG Contract in the amount of $44,935.
The General Fund Contingency (1100990-2015) balance is currently at $1,324,166 and will be reduced to $1,279,231, if the request is approved by your Board.
Any adjustments in the Compensation and Classification Schedules for Road Division and Engineering Employees will impact the Road Fund (1200) and may require additional funding from other sources, including the General Fund (1100)
STRATEGIC FRAMEWORK:
This action supports your Board’s Strategic Framework by providing for and maintaining infrastructure and by managing our resources to ensure sustainability of services.
OTHER AGENCY INVOLVEMENT:
None
ALTERNATIVES TO STAFF RECOMMENDATIONS:
Board discretion.
ATTACHMENTS:
Humboldt County HR_Class Comp-MRG proposal
Budget Transfer Form
PREVIOUS ACTION/REFERRAL:
Board Order No.: N/A
Meeting of: N/A
File No.: N/A