03-03-26 City Council Meeting Packet

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16 | 2025 Arthur J. Gallagher & Co Cost Proposal We believe that our methodology and implementation success rate is attributable to the significantly greater level of contact we have with employees, employee representation, management, and the governing body. The time we commit to working with employees (orientations and briefings, meetings with employees via personal interviews, sharing of compensation survey data, etc.) results in significantly greater buy-in throughout the process. It has been our experience that the time, money, and resources invested in stakeholder communication throughout the study are time, money, and resources saved during implementation. Our goal is to conduct each study the right way the first time. To create efficiency and cost savings for our clients, as well as operating as green an organization as possible, we often conduct our studies virtually. Our cost proposal assumes that all meetings and presentations will be conducted virtually/remotely and no onsite travel to the City offices will occur. Should the City desire onsite meetings, our per diem cost for onsite meetings based on travel time and market rate travel cost are outlined below. Our fees to conduct the study outlined above (including out-of-pocket expenses) will be $15,550. The table below outlines the price per phase. Phase Fees PHASE 1: Strategic Alignment, Project Initiation, & Study Administration Includes virtual meetings and ongoing project management meetings throughout. On-site meetings are available at an additional cost* $1,750 PHASE 2: Compensation, Benchmarking & Market Analysis** $11,550 PHASE 3: Implementation Strategy, Final Reports, & Sustainability Planning Includes virtual meeting; On-site meetings are available at an additional cost * $2,250 PHASE 4: Post-Project Support & Optional Ongoing Services $0; annualized ongoing support services available TOTAL COST (Including all tasks) will not exceed: $15,550 *On-site meetings are available at an additional cost. **Should the City request Gallagher to update/write job descriptions, those services will be priced separately since we are unable to determine the number that will be required. Pricing would be $550 per job description and is in addition to the “Total Cost” identified above. Based on volume, this rate may be discounted. Our study costs are directly derived from estimating the number of hours needed to perform the work and the level of the consultant charged with performing the work. Gallagher typically bills monthly up to the maximum of each deliverable. Please note, as phases sometimes run concurrently, a phase may not be completed at the time it is billed. All expenses are included in this quote. Should the City wish to have additional on-site presentation days or meetings, the estimated cost would be $4,000 per day. Any change to the scope of the assignment (beyond what is described above) as well as other work requested beyond this assignment will be billed based on our hourly rates unless we mutually agree on a fixed fee for the additional work.