Mercedes commission directs city manager to solicit RFQs for yearlong compensation study after debate over cost

The Mercedes City Commission voted June 2 to instruct the city manager to prepare and issue a request for qualifications (RFQ) for a compensation study after commissioners and staff debated the study’s scope, timeline and cost.

Staff described a phased study proposed by consultant Dr. Marcos Cara that would begin with an internal job classification review and external benchmarking, then produce pay-grade recommendations, job descriptions, evaluation tools and training. Staff said the consultant was not asking for an upfront payment and that the projected cost was roughly $5,500 per month over about a 12-month program, which commissioners calculated would amount to roughly $66,000 for the year if monthly billing continued across 12 months.

City staff member Christine said the work would include an internal job review and later phases covering evaluations, job descriptions and employee training. "He is not asking for anything upfront. This is just to do the compensation study of our employees," Christine said, describing the phased approach and noting later phases would address performance evaluations and training.

Commissioners pressed for more detail on deliverables and alternatives. Officials said the study would include succession planning and tools for performance evaluations, and that staff would check references for the consultant. Some commissioners expressed concern that a study might identify pay gaps and recommend salary increases the city cannot afford; others said a formal study could help the city be more competitive in recruiting and retaining staff.

Given the cost questions, Commissioner Joe Martinez moved to direct the city manager to prepare an RFQ package for the compensation study; Commissioner Armando Garcia seconded the motion and the commission voted in favor.

The commission also requested that staff pursue competitive proposals and references before awarding any contract; the RFQ directive does not commit the city to a contract with any specific consultant.