03-26-07 Item 7C, Job Classification and Comp Study Award

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Based on the 15-position scope-of-study and work plan contained in this proposal, our consulting fee "not-to-exceed" estimate is $10,535 except for mileage. Specific estimates for each work plan step are outlined as follows: Work Plan Steps Fee Estimates Initial Meetings (Council; Employee Committee; Management) $980 $245 $980 $735 $980 $1,715 $245 $980 $735 $490 $735 $735 $980 Step One - Collection of Background Information for the Study Step Two - Employee Meetings Step Three. Review of Job Descriptions and Completed JDQ's Step Four - Position Analysis and Job Evaluation Step Five - Market Survey Step Six - Pros and Cons of Alternative Pay Delivery (Step vs. Merit) Step Seven - Revising the Non-Union Base Pay Structure Step Eight - Testing for Pay Equity Step Nine - Determining the Validity of Reclassification Requests Step Ten - Training on All Components of the Updated System Step Eleven - Preparation and Presentation of the Final Report Step Twelve - Employee Meetings to Present the Approved System. Total of Step Estimates $10,535 Step Thirteen. OPTIONAL Appeals Process $185 per appeal Mileage related to the study will be invoiced in addition to, and separately from, the consulting fee estimates at the current 2007 IRS rate of $.485/mile. Post-study consulting services are quoted on an hourly or project basis. We frequently are asked by clients to recommend the classification of new positions or substantially revised positions. We also are asked to assist with regular plan updates with most of our work related to planning and conducting market survey updates. If our firm is selected to perform this study, more detail on our typical post-study consulting services will be provided. Roderick M. Kelsey Vice President and Principal February 2007 RILEY, DETTMANN & KELSEY LLC 8