The Municipal Water District of Orange County (MWDOC) is currently accepting proposals from qualified firms to provide professional services related to the execution of a total classification and compensation study for benchmark management of all full-time and part-time positions within the District. The successful proposer shall perform services in accordance with the provisions, specifications and instructions set forth in this Request for Proposal (RFP).

MWDOC currently has 45 employees which includes 38 full-time positions consisting of Administration, Finance/IT, Government, and Public Affairs, Engineering and Planning (includes Emergency Planning), Water Use Efficiency departments (includes Water Loss Control), and Metropolitan Issues and Water Policy; as well as several part-time and intern positions supporting various departments. All positions are non-represented.

The Municipal Water District of Orange County’s compensation philosophy is that of desiring to provide salary ranges and benefit practices that are competitive with market practices. The District establishes its salary ranges by considering the median of the market place. In administering benefits, the District considers prevailing and emerging practices related to the District’s labor market. This approach has been adopted in an effort to attract and retain the best available staff and continue in its commitment to quality service to the District’s member agencies.

It is the District’s practice to conduct an annual planned pay structure adjustment survey in November of each year, of the direct labor market agencies, to assist in evaluating the percentage adjustment for the salary ranges for the upcoming fiscal year, effective July 1 and the merit pool amount. The most recent changes to the pay structure included a 7.45% increase to the ranges only (not to individual salaries) which was approved by the Board at its June 2023 meeting. Changes to the pay structure are adjusted based on the average of the CPI-U for Los Angeles/Long Beach/Anaheim for the previous 12-month calendar year. Adjustments to the pay structure are implemented to stay competitive with market since the last comprehensive survey in 2021. The District does not grant Cost of Living Adjustments to employee salaries.

Employees receive an annual merit increase based on performance. A merit pool amount is established by the Board during its budget process and goes into effect the first full pay period in July of each year. The merit pool amount is determined based on the methodology used in establishing the salary structure adjustment (CPI-U) and takes into consideration whether the CPI amount is in the negative to high range, utilizing a multiplier based on the CPI-U amount. Based on this methodology and survey results, an 11.45% Merit Pool was included in the fiscal year 2023/2024 budget for merit increases, effective July 2023.

A comprehensive classification, compensation and benefits study is conducted every three years to evaluate market practices and appropriate job grading. Human Resources may conduct interim market analyses for newly established or modified job classifications between the comprehensive surveys.

The District’s previous compensation and classification study was completed in April 2021.

Request for Proposal: Classification and Compensation Study

Response to Questions: August 29, 2023