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SUBJECT: DISCUSSION/DIRECTION — LIVABLE WAGE OVERVIEW AND OPTIONS <br />DATE: MARCH 14, 2017 <br />PAGE 12 OF 12 <br />Option 3: Utilize Colorado Self -Sufficiency Standard (SSS) as the wage standard for <br />ALL City of Louisville positions in order to maintain wage fairness and avoid wage <br />compression issues. <br />Estimated Cost in 2018: $3,457,908 annually in 2018 and subsequent years. <br />Option 4: Add City of Boulder and Boulder County to our labor market cities as part of <br />the annual salary survey and salary projections. <br />Estimated Cost in 2018: $377,094 annually in 2018 and subsequent years. <br />Option 5: Change benefit eligibility for employees who work greater than 20 hours per <br />week, on a regular basis, and continue to use current Pay Philosophy and Labor Market <br />cities for annual salary survey and salary projections. <br />Estimated Cost in 2018: Unavailable at this time. Contracts would need to be <br />renegotiated based on actual census data of specific employees to determine <br />costs and specific wages. <br />Option 6: Continue with existing annual salary survey process, Pay Philosophy, and <br />benefit eligibility rules thus making no changes. <br />Estimated Cost in 2018 and included in current budget projections: $779,570 <br />annually in 2018 and subsequent years. <br />Note: Minimum wage impacts were not included as Amendment 70 had not <br />passed prior to completion of 2017/2018 budget. Further analysis will need to be <br />completed to provide an estimated cost for increasing wages to the new <br />minimum wage of $10.20 per hour in 2018. <br />RECOMMENDATION: <br />Staff would like to hear City Council's comments regarding the six (6) options <br />presented, possible hybrid of the options listed above and on any other options City <br />Council would like to consider and whether City Council would like additional cost <br />estimates for such implementation. <br />Staff currently favors Option 4 which would include the City of Boulder and Boulder <br />County salaries in the City's annual salary survey process. This would incorporate both <br />Boulder's and Boulder County's livable wage philosophies into Louisville's existing <br />policy and adjustments would be incremental and fairly simple to administer. Staff <br />believes the cost is more sustainable long term. Performance would remain a critical <br />component of the City's pay philosophy where merit increases would be given based on <br />performance. <br />ATTACHMENT(S): <br />1. May 10, 2016 Compensation Council Packet <br />2. National Bureau of Economic Research <br />3. Terminology <br />CITY COUNCIL COMMUNICATION <br />