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<br />Revised Total Compensation Proposal- <br />March 21, 2006 <br />Page 10 ofl6 <br /> <br />It is our understanding from the proposal that there is an expectation that up to 22 <br />survey agencies will be used, as that has been the practice of the City in prior <br />studies. It would be anticipated that approximately 5-10 additional private <br />companies/published salary market studies will be identified for inclusion in the <br />study with the hope that at least four matches can be found for the classifications. <br /> <br />1. Determination of Comparator Agencies/Companies <br /> <br />The selection of comparator agencies is considered a critical step in the study <br />process. Using the following factors to identify appropriate comparators, we will <br />receive approval before proceeding with the salary survey. <br /> <br />It is our understanding that the City has already identified selected public sector <br />comparables. The City, working with the consultants, will identify appropriate <br />private sector organizations for inclusion in the study. The factors that we review <br />include: <br /> <br />)> Private Company Identification - The three primary issues in selecting <br />appropriate companies include (I) identifying local geographic location <br />companies; (2) finding companies will the greatest potential for the highest <br />number of benchmark classifications within each organization; and most <br />importantly, (3) identifying companies who are willing to commit to <br />assisting us in the survey. <br /> <br />Many times Council members and/or management employees may have <br />liaisons within the community to assist in identifying companies that will <br />participate in our study. We also rely upon our 22 years of business and <br />established professional relationships within the Tri- Valley for selecting <br />appropriate companies. <br /> <br />)> Labor market - The reality of today's labor market is that many <br />agencies/companies are in competition for the same pool of qualified <br />employees. No longer do individuals necessarily live in the community <br />they serve. Therefore, the geographic labor market area (where the <br />agency/company may be recruiting from or losing employees to) will be <br />taken into consideration when selecting potential comparator organizations. <br /> <br />2. Determination of Benchmark Classes and Benefit Factors <br /> <br />In the same collaborative manner as described above in Step 1, the classes to be <br />surveyed will be determined. If a narrow study is chosen, approximately 25-30% <br />of the classifications will be analyzed. If the broader scope is selected, <br />approximately 70% of the classes will be analyzed. Again, all parties prior to <br />commencement ofthe data-gathering process should reach consensus. <br /> <br />KOFF & ASSOCIATES, INC. <br />