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 10 OF 12 Option 5: Change benefit eligibility (health, dental, vision, 401K, PLB, EIB, etc.) for employees who work greater than 20 hours per week, on a regular basis, and continue to use current Pay Philosophy and Labor Market cities for annual salary survey and salary projections. Pros: • Provides benefits to employees working 20 — 29 hours on a regular basis. • Likely creates more content employees when benefits are offered for working 20 hours+ per week. • Becomes more competitive with City of Boulder regarding total compensation package when benefits are offered at 20+ hours per week. Cons: • More employees eligible for benefits would increase annual benefits costs for the City. • Less flexibility for those working 20 - 29 hours per week. Employees would need to commit to working 20 hours and above to receive benefits on a regular basis. Some part-time non -benefitted employees enjoy the flexibility of not having to work on a regular basis which allows them significant flexibility. • It is likely that the number of employees would decrease as you need fewer employees to fill these positions, thus possibly creating a lay off situation. Policy Issues: This option does not address the livable wage issue. Cost Estimates: Cost estimates are unavailable at this time for this option as it would require renegotiating contracts with the following health care providers: Kaiser, Delta Dental, VSP, Lincoln Financial, and ICMA. Health, dental and vision providers would need specific numbers of employees and "census" data on those employees in order to provide a cost for these services. ICMA and Lincoln Financial (life insurance) costs would depend on the wage of employees and at this time, specific details are unavailable at this time. Recommendation for Implementation: If this option is chosen by Council, it is possible to work through all the details for the 2018 budget process. If however, after the actual numbers are determined and the cost is too great, significant employee moral issues could impact the organization if the decision was then to not go through with this option. It would likely break "the Psychological Contract". CITY COUNCIL COMMUNICATION