FIN 2019-10-28 Item 2B - Discussion - Non-Represented Employees' Compensation

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INFORMATIONAL MEMO Page 2 1. Al — "For Represented Employees": The information laid out in this section has been shared with the City Council during executive session by bargaining group throughout the process of negotiating 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 a tentative agreement this week and the other continues to bargain and the current contract does not expire until the end of this year. Al. No Change 2. A2 — "For Non -Represented Employees": Current internal salary trends show that represented employees are receiving an increase in 2020 and 2021 ranging from 1.53% to 1.7% (90% - 100% of CPI). Externally, while staff knows of no cities 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 3%. The adopted City of Tukwila budget included a 2.5% increase from 2019 to 2020 for non - represented employees. Staff is seeking guidance from the Council to finalize the information based on challenges that have arisen in the implementation of this new policy. There are 39 non - represented employees that hold 36 different positions in 15 different bands. Previously the City had benchmarked approximately 12 positions. Staff has attempted to expand benchmarked positions to over 20 positions in order to provide a more complete analysis. The AWC Employee Salary and Benefit Survey is not comprehensive, leaving many positions unable to be benchmarked (benchmarked positions require finding at least five other comparable positions within our comparable cities). Staff can and has reached out to the other comparable cities to achieve a higher number of benchmarked positions, but such activity is outside of the policy direction given in the resolution. Going outside the AWC survey allows the City to better track total compensation, as the benefit information provided by AWC is incomplete. o Question for the Committee — Should staff go beyond the AWC survey in order to gather as much information as possible, which would include polling our comparable cities for information on each non -represented position? o Question for the Committee — Alternately, should the City contract with an outside firm for a full market study? A2. There was a change from the previous meeting where staff thought it could benchmark more than 20 positions. However, after further analysis and using the industry standard of five comparable cities to constitute a match, only 19 positions were able to be benchmarked. Recommended courses of action for future market system: 1. Contract for a new market -based non -represented compensation system to replace the current DBM system. To initiate this action, the City would conduct an RFP process. Staff would seek additional budget authority to be granted in the 2020 budget to develop the new market -based non - represented compensation system. 3. B1 — This section changed the jurisdictions defined as comparable cities from +50/-50% of Tukwila's annual assessed value to +75/-50% AV with a police department. This has resulted in the City now having 15 comparable cities, seven under Tukwila's AN and eight above. The comparable cities with their AV are attached. 1 2 Z:1Council Agenda Items\Human Resources12019 NonRep FC Oct 2812019 Non Rep Memo Final_Oct 28.docx