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Regular City Council Meeting Monday,April 17,2023 Page 10 the Council, what it would look like and some ways that the City could phase that in. There was discussion regarding pay steps and how these are handled for each employee. Ms. Davis noted she is going to bring back ninety-eight percent, one hundred percent and one hundred two percent for the Council to start discussion on. The City Council thought that was a good starting point. Mayor Roe explained he wanted to touch on a couple of things, one was the performance based compensation,which was dealt with a little bit in 2013 although not funded. He thought the challenge and the conversations the Council has had about that in the past, both from a staff and Council perspective, is that as a public sector employer, how do they deal with two things that are sometimes a factor. One is internal equity and the perception of"it wasn't fair that someone got performance pay". Then there is the perception on the part of the taxpayers whether that is an appropriate use of public funds to reward somebody in the public sector.He thought at the time in 2013 it was easier to not deal with it but it was a legitimate question that the Council and staff needed to work through. The other piece of it was talking about longevity pay and he did not think the City did anything along those lines. Ms. Olson indicated the City did not. Mr. Trudgeon explained except for union contracts. Mayor Roe thought it would be interesting to see what a model might look like if the City applied that on the non-union side of things. Ms. Davis explained there are a hundred different variations on performance pay, exceptional service pay, longevity pay, and her recommendation would be to identify the challenge the City is trying to solve first before starting to look at scenarios. Councilmember Strahan indicated performance based merit increases are not really best practice at this point, especially from a DEI (diversity, equity, and inclusion) impact, because of the subjective rating scales. She would be inclined to believe that these should be separate from the performance reviews and should not be con- nected to pay. She explained the City continues to struggle with its DEI impact and she thought it would be good to take it out of there or not consider adding it.