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Regular City Council Meeting Monday,September 9, 2013 Page 24 Ms. Bacon advised that the rationale in using the ten (10) year period was based on the previous compensation study ten (10) years ago that made the City achieve market rate; and using that as a starting point making the assumption that the City was at market rate, at which time the 97% and merit pay program was implement- ed; with it being that long ago that employee compensation was reviewed. If looking at ten (10) years proved problematic, Councilmember Etten noted that while there was a difference, however, in some years the City exceeded the CPI, with differences occurring in 2011, but equaling out in 2012, but pulling apart in 2013. In recognizing that in 2009,the City exceeded the CPI, Councilmember Et- ten suggested that when salaries were frozen at that time, that was when the dif- ferentials occurred. Mr. Trudgeon noted, based on that chart, that the City was tracking well over the years until the historic change in the economy, causing the City to freeze salaries, and then dropping even lower; with the rate of increase for the CPI going up much more during that time. Ms. Bacon noted that both COLA and CPI made inflationary assumptions based on wages at market rate; but the compensation study indicated that they were not actually at market rate any longer; suggesting that was where the difference came in. Councilmember Laliberte expressed her understanding of what Ms. Bacon had explained and the differences. However, Councilmember Laliberte advised that where she became lost in the discussion was the study itself; stating that over the last few months, she had lost confidence in the study. While able to have the his- torical discussion, acknowledge the CIP and other assumptions, Councilmember Laliberte opined that when those discussions and assumptions were based on the study it had lost its truth for her, making it hard for her to base future decisions on this particular study. Mayor Roe asked Councilmember Laliberte to share her specific concerns or problem areas with the study. Councilmember Laliberte stated that, over the course of previous discussions and things that were or were not included in the study, it had become unclear to her what was actually involved in the study; noting that there always appeared to be differing opinions of peer cities, with no one able to get past that. When review- ing the actual numbers, Councilmember Laliberte opined that the City wasn't necessarily off, but the study didn't provide any data on whether or not or why people may be leaving. While having the historical information available and at- tempting to keep pace with inflation made sense to her, Councilmember Laliberte noted that two (2) of the three (3) options proposed by staff included keeping the merit pay system in place, with one (1) option proposed to keep it even though