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PROJECT APPROACH & TIMELINE CITY OF LITTLE CANADA | MARCH 16, 2026 RFP | CLASSIFICATION AND COMPENSATION STUDY PAGE 14 5.2 Develop Proposed Compensation Plan Using MGT’s proven job evaluation methodology, we will assess internal equity and develop/update a plan that supports transparency, fairness, and alignment with organizational policy and goals. MGT will develop a draft pay model that reflects the City’s compensation philosophy, budgetary capacity, and strategic priorities. We evaluate the feasibility of different plan designs, such as step-based structures or open ranges, and recommend the most suitable option for the City’s workforce and fiscal environment. Each job is assigned to a pay grade based on internal job evaluation results and market data. This includes internal equity and compression adjustments, ensuring that the resulting structure is market competitive while also internally equitable. MGT will also review the proposed compensation structure for consistency with Minnesota Pay Equity Act requirements to ensure that the recommended framework supports ongoing compliance with state reporting standards. MGT will also provide the City with a simplified job evaluation tool and guidance that can be used to assess new or evolving positions following completion of the study. Deliverables • Proposed classification structure and preliminary recommendations • Draft pay plan(s) • Summary of internal equity and market alignment TASK 6.0: RECOMMENDATIONS AND IMPLEMENTATION GUIDANCE Activities 6.1 Present Draft Recommendations This task focuses on facilitating a structured review and validation of the study recommendations and implementation plan(s) with the City. MGT will present preliminary recommendations to leadership and key stakeholders to confirm that the recommendations align with strategic goals and are practical for implementation. This discussion provides an opportunity to walk through the analysis, explain the rationale behind key decisions, and confirm that the results are understandable and aligned with organizational goals. Based on feedback, MGT will evaluate whether refinements are necessary. MGT will work closely with the City to confirm that the recommendations support internal equity, align with workforce planning strategies, and are responsive to current and future organizational needs. 6.2 Develop and Provide Implementation Strategies MGT will develop a summary of estimated implementation costs that shows the projected cost of implementing the proposed recommendations, which may include two options for phase-in (e.g., immediate implementation, multi-year rollout). Costing will estimate the fiscal impact of implementing the pay structure updates, including identifying projected base pay adjustments by job and potential areas of internal compression or equity concern. Overtime costs are not included, and the analysis will be estimated only. MGT will prepare guidance for adopting and administering the new system, which may include employee placement protocols, guidelines for salary movement, and procedures for evaluating and maintaining job consistency. MGT views implementation not as an afterthought, but as an integral part of the study that ensures the work completed results