City Council Agenda and Packet 2017 03 14 SP

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City._ Luis �il CITY COUNCIL COMMUNICATION AGENDA ITEM 111 SUBJECT: DISCUSSION/DIRECTION — LIVABLE WAGE OVERVIEW AND OPTIONS DATE: MARCH 14, 2017 PRESENTED BY: MALCOLM FLEMING, CITY MANAGER HEATHER BALSER, DEPUTY CITY MANAGER KATHLEEN HIX, HUMAN RESOURCES DIRECTOR SUMMARY: City Council asked staff to compile information about the Livable Wage movement and analyze potential options that could complement and enhance the City's existing pay and compensation practices and philosophy. To address this request, staff consulted with other cities that have implemented various aspects of a Livable Wage, and based on those discussions have compiled the attached background information and options for Council consideration, including information regarding the pros and cons of each option, policy considerations, cost estimates, and recommendations for implementing each option. BACKGROUND: In response to a City Council request in 2016, Human Resources Director, Kathleen Hix presented information regarding the City's Pay Philosophy, labor market information, salary survey process, pay plan, pay practices, current benefits packages for employees, and looking to the future for compensation and benefits (see attachment 1, May 10 2016 Compensation). Following that presentation, Council requested additional information regarding the concept of "Livable Wage", and how other communities are incorporating that into their pay and compensation practices, as well as how the City might use this concept in concert with our current policies regarding pay and benefits. The municipal and county living wage or livable wage movement began in the mid- 1990. More than 100 cities, counties, or other entities have enacted living wage laws since 2002 (see attachment 2. National Bureau of Economic Research, table 3.1). The ordinances and policies vary widely in their range of coverage. Some apply to all workers employed within a geographic area, while others apply only to city or county government employees; some cover employees of entities that provide contract service to the city or county government; and others cover a combination of the latter two. Living Wage policies also vary widely in the timing with which they take effect. Some require all employers to meet the newly passed living wage upon passage of the ordinance or policy. Others require the wage be met incrementally over a period of years. Most are tied in some way to cost -of -living indices that help gauge inflation or deflation and standards defining poverty, such as the Federal Poverty Level (FPL), or the Consumer Price Index (CPI). CITY COUNCIL COMMUNICATION