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02/01/2017 - Minutes Minutes Meeting Citizens' Compensation Advisory Committee February 1, 2017 Members Present: Cori Petersen Connie Spyropoulos-Linardakis Dale Cox Frances Hume (phone) Jeff Herring Staff Present: David Salazar, City Compensation Administrator Rachel Lovato, Senior Human Resources Consultant Julio Garcia, Human Resources Director Guests: Steve Hartney(President, SLC Police Association) A recording of these proceedings is on file and available by request from the SLC- HR Department. Meeting Open &Welcome: Chair Connie Spyropoulos-Linardakis opened the meeting and established that all Committee members were present including Frances Hume on the phone with the exception of Kerma Jones. Review and adopt November 2, 2016 and January 17, 2017 meeting minutes: A motion to approve the minutes of the committee meeting held on August 25, 2106 was made by Cori Petersen and seconded by Jeff Herring. The vote to approve the minutes was unanimous by all members present. Frances pointed out an error on the January 17, 2017 minutes indicating Cori Petersen was the Chair instead of the Vice-Chair. A motion to approve the minutes of the committee meeting held on January 17, 2017 with the change as noted by Frances was made by Dale Cox and seconded by Cori Petersen. The vote to approve the minutes was unanimous with the change by all members present. Staff Report: Follow-up on Committee discussion pertaining to Mayor's request to review city's living wage, including potential rate adjustments: David discussed the House Bill 147—Living Wage bill introduced in the legislature. This bill proposed the state minimum wage to be $10.25 with a $0.95 increase each year until 2023 ending with the salary of$15.00 per hour. The base cost in salaries for the city would be about$2 million and almost$4 million with the addition of benefits and increases. David will see what other information he can find on this issue. Staff Report: Follow-up on Committee discussion pertaining to Mayor's request to review analysis of employee pay compression: David started the discussion by reminding the committee that union covered employees already have a mechanism to move through the range so we are focusing on the non- represented employees. Rachel reported the number of non-represented employees is about 820 people. She noted that 46% of the employees are at or above market with 54% below market. In addition, there are 6% of that group that at 75-85% of the market, 52% of that group are between 85-94% of market; and 42% are between 95- 99% of market. David indicated we will provide each department with details of where their employees are in the ranges and make suggestions about how to get the employees to market. Cori suggested the city is more concerned about appropriately placing people within the range and less so about compression. Compression is dealing with pockets of people in the range. David would like the committee to consider the suggestion to direct money in the budget to move employee's through their range based on competency, performance, and years in the job. The committee confirmed the city is suggesting to look at individual employees. The committee questioned how the city would determine performance. David responded by stating the city relies on the department to determine the performance. Dale suggested that without specific criteria the city opens themselves up to favoritism. Julio mentioned HR will be providing the departments with metrics reports in hopes of creating a dialogue to avoid the favoritism. David suggested this is a good place to start and may take some time to get it figured out. Page 1 of 3 Staff Report: Follow-up on Committee discussion pertaining to Mayor's request to review analysis of voluntary turnover rates >10%: Presented the breakdown by department and included the city number that goes across the graph. The city's overall turnover including all reasons is 10% and voluntary turnover which includes only quits and retirements is 8%. Request to have the department size on the chart. The committee indicated they are most concerned with the high level of voluntary turnover to ascertain the hot spots. Julio indicated he will be taking this information to the mayor. The committee suggested the turnover may not just be attributed to compensation. Candace Roberts, Police HR Consultant, presented on the turnover in Police. In 2016, Police had 22 voluntary turnover and 1 involuntary which is 4.79% for voluntary turnover. Of the 22 that voluntarily left, 17 retired. Police hired 3 of 46 lateral candidates from outside of Utah and the remaining were hired locally. Cori posed the question of why are they retiring and what is "normal." David suggested people tend to stay past their retirement eligibility. The committee asked why people would leave for personal reasons. Candace responded they have found the job is not for them, for example, they make a career change to real estate. Jennifer Sykes, Fire HR Consultant, presented on the turnover in Fire. In 2016, Fire had 20 voluntarily left 16 retired, 4 others, 6.25% voluntary 1.25°A) involuntary. Fire hired 20 new hires including 2 females and 2 minorities. Review and discussion of DWS' local economic conditions report, final local market wage analysis, and 2016 public safety turnover & recruitment statistical information — David Salazar, City Compensation Program Administrator: December 2016 Employment Summary— Utah's unemployment rate is still running low. David suggested the number is very low and outlook is positive. The growth is 2.8% and unemployment rate is 3.1°A). Trend analysis benchmark data: We added the 2017 and we will make note this is the year we moved from actual average to actual median pay. Some of the benchmarks are not included because we changed some of the benchmarks. Jeff noted the line-type changes when only 2 lines are showing. Looking at the local benchmark data, we just need to update some water job data. Otherwise, everything has been updated. The highlighted cells in green indicate we lead by more than 10%, the gold highlighted cells we lag 5-10%, and the red is where we lag more than 10%. In addition, where we have differing data between the 2 groups we are giving 60% weight to Western Management Group and 40% weight to Wasatch Compensation Group (other public employers). Fire benchmark show we lead 3% for the EMTs and we lead by 40°A, for paramedics. Police benchmark shows we lead by 27%. We need to be mindful of the jobs we lead the private sector. David cautions we cannot continue to administer pay the way we have because it compounds the issue and the tax payers may not believe this is appropriate. Cori suggested it is also a disservice to the employee because the city is pricing them out of the market. Dale suggested it's good in the case of police and fire because we are getting experienced officers from other jurisdictions. The cost of training and turnover is significant in police and fire. Committee planning and discussion of recommendations for 2017 Annual Report: Report recommendations from last year to be reviewed. Report outline will include gender pay equity and recommendations, turnover, lead and lag the market. Committee wants to focus on median pay only and we need to replace average with median. Add a sentence to define median pay. The committee is comfortable to continue with giving the private sector slightly more weight than public. Cori suggested they say the same thing every year and nothing changes. She suggests being more clear and changing it up a bit. Frances suggested moving #4 to #1. We need to remove the sections we did not address such as benefits and mayor and council sections. Make recommendation to study the compression by department for next year and set money aside to address those compression issues. The mayor would like a recommendation about how we handle the $10.10 rate. The committee wants the city to provide some research about how other cities handle the minimum wage adjustment. Julio presented a question to the committee about how or if the committee will accept questions and how do they want to handle them. Connie responded she would like to take the questions as they come. This meeting was adjourned at approximately 5:30 PM. Page 2 of 3 Next Meeting Date: The next meeting date was set for February 15, 2017 from 4-6:00 pm. These minutes were approved in a Committee meeting held on 2/15/2017. Page 3 of 3