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 11 OF 12 Option 6: Continue with existing annual salary survey process, Pay Philosophy, and benefit eligibility rules thus making no changes. Pros: • The current compensation plan continues to adjust salaries based on an annual market study with nine (9) labor market cities for comparison and has been affordable and predictable. • Currently, there are relatively few compression issues. However, as employees' reach the top of their respective pay ranges this will be a factor in upcoming years. Cons: • Does not address the livable wage considerations. • Does not address benefit issues for part-time/variable hour employees. • Does not address some employee's perception that Louisville should be paying wages similar to City of Boulder and Boulder County, as they are currently not part of our nine (9) labor market cities. Policy Issues: • May not address concerns regarding turn -over. • May not address concerns regarding recruitment. Cost Estimates: Based on review of the past 10 years, cost estimates for market increases for 2018 were factored into the budget and were estimated at $133,000 with an additional 4% increase factored in for performance/merit increases for full time employees at an estimated cost of $596,570. A 4% increase was factored in for the part-time/variable hour employees in 2018 as well at an estimated cost of approximately $50,000 for an estimated grand total of $779,570 annually in 2018 and subsequent years. Recommendation for Implementation: Continue with current practice of providing salary and wage cost estimates as part of the budget process. FISCAL IMPACT: Option 1: Bring all Non-benefitted/Variable hours employees (less than 30 hours), excluding seasonal employees and summer interns, up to at least $15.67 per hour. Estimated Cost: 175,053 annually in 2018 and subsequent years. Option 2: Bring City of Louisville Full Time Employees and Benefitted Part -Time Employees (30 - 40 hours per week) up at least the $15.67 hourly wage. Estimated Cost: $19,590 annually in 2018 and subsequent years. CITY COUNCIL COMMUNICATION