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Council OKs classification and compensation study with MGT using ARPA funds

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Summary

The council authorized a classification and compensation study by MGT at a cost not to exceed $28,475, to be funded from American Rescue Plan Act (ARPA) assigned funds; staff expects a roughly 16-week study timeline and included job description updates and limited travel in the contract.

The Fort Atkinson City Council on May 6 authorized the city manager to contract with MGT to conduct a classification and compensation study for the city, at a cost not to exceed $28,475, using assigned American Rescue Plan Act (ARPA) funds.

City Manager Hausman said the city issued a request for proposals and received 11 responses with costs ranging from $20,475 to $67,650. Hausman recommended MGT based on proposal content and the city’s desire for one to two in-person meetings and job description updates; he said the base MGT proposal was $20,475 but that adding travel and job-description work brought the total to the $28,475 authorization.

Hausman told the council the project was included in the 2025 budget with an estimated cost of $30,000 and that ARPA assigned funds had been set aside for such one-time projects. He described a likely schedule: the consultant could start in 4–6 weeks and complete deliverables in roughly a 16-week time frame, allowing the city to use results for 2026 budget planning if desired. “The goal would be to, over time, implement the recommendations from the study in a way that's sustainable, and affordable,” Hausman said.

Council members asked about alternatives such as subscription-based compensation software and about ongoing support. Hausman said the city preferred a one-time funded study rather than incurring recurring subscription costs but that MGT’s proposal included a year of support and subscription options could be pursued later if needed.

The motion to contract with MGT carried. Staff will proceed with the study, update job descriptions as budgeted and report findings to the council when available.