FIN 2019-09-23 Item 2D - Update - Non-Represented Employees' Compensation

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City f Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance Committee CC: Mayor Ekberg FROM: Juan Padilla, Human Resources Director DATE: September 17.2O18 SUBJECT: Non -Represented Employee Compensation ISSUE City Council adopted Resolution 1951, adopted in November of 2018, provides policy direction b)the Administration regarding employee compensation. This isthe first year this revised policy is being implemented, and is also a "market" year for non -represented employees. The purpose of this item is to share the implementation steps to date with the Committee, seek additional guidance from the Committee on some areas of implementation and meet the timelines detailed in the policy. DISCUSSION Before going into the specifics of implementing Resolution 1951, below is aquick discussion Of the changes made from the previous resolution, 1796. The biggest changes are found in the following categories: 1. Specific timelines and information due to the council for non -represented employees with data specifically to come from the AVVCWashington City and County Employee Salary and Benefit Survey. 2. Expanded the number of comparable cities by increasing the comparable cities' annual assessed valuation from +5&-5O96to+75/-5O96and that comparable cities must have their own police departments. 3. Strict guidelines on how to deal with positions that are either more than 5% below the market and 1096 above the market. 4. Simplified the language describing compression. 5. Review of the policy onanannual basis. Resolution 1951 is broken down in two main areas: "Information to be provided to the City Council" and "Compensation Pn|icy." Acopy Ofthe policy iSattached for reference. Below is discussion nfthe implementation of the different areas todate. 1. Al —^ForRepnssenUad Employees": The information laid out in this section has been shared with the City Council during executive session by bargaining group throughout the process ofnegotiating the latest collective bargaining agreements. During this calendar year Human Resources has successfully negotiated new contracts with six bargaining groups. Of the two remaining, one achieved o tentative agreement this week and the other continues tObargain and the current contract does not expire until the end ofthis year. 2. A2—"For Non -Represented Employees": Current internal salary trends show that represented employees are receiving on increase in2O2Oand 2O21 ranging from 1.53% to 1.7%(90%-10096OfCP|). Externally, while staff knows ofODcities that have yet made a final decision on 2020 compensation, conversations with their staff indicate most are contemplating an increase for non -represented staff between 1.5% and 396. The adopted City of Tukwila budget included a 2.5% increase from 2019 to 2020 for non - represented employees. 61