City Council Agenda and Packet 2017 03 14 SP

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SUBJECT: DISCUSSION/DIRECTION — LIVABLE WAGE OVERVIEW AND OPTIONS DATE: MARCH 14, 2017 PAGE 8 OF 12 Policy Issues: • If the desire is to pay wages similar to others in Boulder County, this approach would support that desire. • If the desire is to decrease turn -over, increase retention, and be more competitive in the market, this approach would support that desire. • Further discussions and decisions would need to be made regarding how, or if, to provide merit increases. • Additional funding sources would likely need to be identified to sustain wages at this level considering the current budget. Cost Estimates: The cost estimate for this option would add an additional $2,485,808 to the regular salaries budget and an additional $726,369 to the part-time/variable (non -benefitted) salaries budget for a total of an additional $3,212,177 in salaries, and additional $245,731 for FICA for an estimated grand total of $3,457,908 annually in 2018 and subsequent years. Recommendation for Implementation: • Determine the funding source(s) to pay for this option. • Based on the funding source, determine the implementation options and timing or implementation. Option 4: Add City of Boulder and Boulder County (who also recently implemented the SSS wage standard) to our labor market cities as part of the annual salary survey and salary projections. Pros: • By adding these communities that use livable wage, our annual market study will reflect those salary ranges and incrementally adjust our wages in line with the SSS. • Wage impacts would affect all employee categories, assuming livable wage in participating cities addresses full-time and part-time employees. • Addresses compression issues. • Performance remains a factor in compensation philosophy where merit increases are based on performance of the individual employee. • Could be easily folded into current annual salary survey process which coincides with budget process. Cons: • Would not raise salaries to a minimum of the livable wage standard (assuming $15.67) • Does not address benefit eligibility below 30 hours. CITY COUNCIL COMMUNICATION