HomeMy WebLinkAboutReg 2009-11-16 Item 7D - Resolution - 2010 Non-Represented Employee Salary Schedule and Benefits Summary COUNCIL AGENDA SYNOPSIS
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ITEM INFORMATION
1 CAS NUMBER: 09-158 I ORIGINAL AGENDA DATE: NOVEMBER 9, 2009
AGENDA ITEM TITLE Resolution to adopt the 2010 non represented wage and benefit schedule
CA "I'EGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Otherr
Mtg Date 11/9/09 Mtg Date Mtg Date 11/16/09 Mtg Date Mtg Date Mtg Date Mtg Date
SPONSOR Council Mayor Human Res.. DCD Finance Fire Legal n P&R Police Pl/
SPONSOR'S The Council is being asked to consider a resolution updating and clarifying the non
SUMMARY represented employees' compensation and adopting the non represented salary schedule
and benefits summary effective January 1, 2010.
REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte
Utilities Cmte Arts Comm. Parks Comm. P1 Planning Comm.
DATE: 10/20/09
RECOMMENDATIONS:
SPONSOR /ADMIN. Human Resources Department
COMMITTEE Forward to Committee of the Whole for review and discussion
COST IMPACT FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
Fund Source: 2010 BUDGET
Comments:
1 MTG. DATE -RECORD OF COUNCIL ACTION
11/9/09 Forward to the Next Regular Meeting
11/16/09
MTG. DATE ATTACHMENTS
11/9/09 Informational Memorandum dated 10/14/09
Resolution in Draft Form
Attachment "A" (wage schedule)
Attachment "B" (benefits)
Minutes from the Finance and Safety Committee meeting of October 20, 2009
11/16/09 Informational Memorandum Dated 10/14/09
Resolution in Final Farm
35
City of Tukwila
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Finance and Safety Committee
FROM: Viki Jessop, Administrative Services Director
DATE: October 14, 2009
SUBJECT: 2010 Non Represented Wages
ISSUE
Jim Haggerton, Mayor
2010 Non Represented Wage Schedule analysis based on external comparables and
internal equity.
BACKGROUND
In alignment with Resolution No. 1537, Establishina a Non Represented (NR)
Employees' Compensation Plan, passed December 1, 2005, a wage study has been
conducted for calendar year 2010. The resolution requires that a market analysis be
done every other year for the upcoming year for Non Represented positions. The
current analysis has been conducted based on information in the Association of
Washington Cities 2009 Salary and Benefit Study, rather than going out to individual
cities this year. It was decided that the data in the AWC survey would be utilized in part
due to the economic and staffing constraints facing comparable cities as a result of
furloughs, layoffs, and other budget changes affecting staff. As in the past, a
comparison was done of external comparables (cities) and internal equity (union pay
scales). The Decision Band Methodology (DBM) and regression line analysis have
been completed in determining the "best line of match" and a wage schedule developed
based on the market trend calculation outcome.
The following comparable cities were used for this study:
Comparables
Auburn Bothell Federal Way
Kent Kirkland Redmond
Renton SeaTac
The average increase for all top steps of DBM ratings on the Non Represented wage
schedule equals 4.14 A complete 2010 wage schedule was calculated using the
information developed through the linear regression analysis and the percentage
increase provided over the 2009 wage schedule in order to place new and current
employees onto the proper step on the new wage schedule. Individual DBM rating top
step increases vary according to how the trend line analysis compares to the market for
the specific position Current Non Represented wage increases that relate to
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INFORMATIONAL MEMO
Page 2
established DBM ratings with corresponding classifications range from 1.5% to 6.7
Once again, the overall average for the entire wage schedule is 4.14
The Non Represented top step wage information was then compared to the unions' top
step wages for 2010, which shows the union wage increases for 2010 ranging from
3.25% to 4 The market trend analysis and its various percentage increase related to
specific Bands on the wage schedule and confirmed internal equity between all
positions, union and non represented, in the City of Tukwila for 2010.
DISCUSSION
After the City of Tukwila Non Represented wages were approved in 2007 for 2008, it
was noted that many of Tukwila's comparable cities were adjusting the wages for their
non represented management level employees to a greater degree than had occurred
in previous years. One of the primary reasons behind these increases was the difficulty
the cities were having in recruiting and retaining qualified management level employees.
The economy was still fairly healthy and the need for strong leadership at the
management level was desired.
Another reason for the non represented wages increasing in other cities was the "fear"
many cities had that they would be unable to recruit qualified police officers, much less
retain them. Many cities were increasing the police officer wages in an effort to attract
more viable candidates to their cities. By taking this action, they needed to raise the
wages for other police officer positions, not just entry level, which then resulted in
management level wages needing to be raised to avoid wage compression problems.
These and other actions by cities resulted in the City of Tukwila Non Represented
employees falling behind the comparable market almost immediately in 2008. These
wage increases in other cities are reflected in the market results for the comparable
cities in Tukwila's 2009 study.
Fairly soon after the wage increases were made in other cities, the economy took a
major hit and with it a shift in how wages and benefits were considered by the cities. It
has necessitated that some of the same cities that raised wages have requested
reductions in wages and /or benefits from their Non Represented employees and, in
some instances, have negotiated similar changes with their unions. (Without their
unions being willing to make reductions, the overall wage structure would be skewed by
just reducing the wages of the Non Represented employees.) One of the results would
be union positions making more than Non Represented management employees; even
without consideration of premium pays and /or overtime. This type of situation can
create a wide variety of problems.
The City of Tukwila has been fortunate that there have not been wage freezes or other
changes in wages or benefits thus far in 2009. In order to maintain external
comparability and internal equity, it is important to keep the Non Represented wages
consistently moving in alignment with the market and union wages. Based on the
current analysis for the Non Represented. a wage increase for 2010 would cost
INFORMATIONAL MEMO
Page 3
approximately $15.700 Der month (about $188,400 in 2010), exclusive of oavroll taxes,
retirement, etc. The $188.400 is approximately $10,600 more than what was budgeted
for 2010.
RECOMMENDATIONS
The following Non Represented employee wage increase scenarios for 2010 are
presented to the Mayor and Council for consideration:
1. Approve the 2010 Non Represented market trend analysis wage schedule (see
attached draft resolution), which provides for external comparability and internal
equity effective January 1, 2010.
The estimated cost to implement waaes only is $188,400 in 2010. An
additional cost over budaet of $10,600.
2. Phase in one -half of the increases based on the 2010 wage schedule on January
1, 2010, and the remaining one -half of the increases on July 1, 2010, for all Non
Represented positions as developed through the market trend analysis. By
phasing in the wage increases, the Non Represented wage schedule is in
alignment with the union wage schedules in mid -year. This method provides
savings to the 2010 budget by spreading out the time in which wage increases
are made in 2010 for the Non Represented employees.
The estimated cost to phase in waae increases with one -half on January
1, 2010 and the second half on July 1, 2010, is $141.100. The estimated
savings overimplementina 100% of the market increase on January 1.
2010 is $47,300.
3. Do not give an increase in 2010 to DBM ratings D62 -D72, E, and F
(management and supervisory levels), unless the City's economic condition
begins to stabilize during the year. Often called a "COLA Holiday it would be
important to seriously consider giving the total wage increase to D62 -D72, E, and
F levels sometime later in 2010 or at the beginning of 2011. Waiting until 2011
may require the 2010 wage increases be given and /or additional COLA to keep
up with internal equity compared with union wages for 2010 and 2011.
Provide full wage increases to those at the A, B, C, and D -61 levels (generally
technical and staff support levels) on January 1, 2010, in order to maintain
internal equity for these positions, which have more internal similarity with the
union positions.
The estimated cost to implement wanes for A, B. C and D -61 levels on
January 1. 2010 is $61,400. The estimated 2010 budaet savings to
implement this option, rather than implementing the wage increase for all
Non Represented employees on January 1, 2010, is approximately
$127,000.
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INFORMATIONAL MEMO
Page 4
4. Do not give any wage increases to any of the Non Represented in 2010, and
give the full wage increase, COLA, and /or possible catch up in 2011.
The:estimated.s of. this :choice in 2010 is:approxitnatelv:. $1
h t Ier 'th choice vl bWd Create;a "catch: Uo Situation in 2011.
Finance has provided.,,the: attached tables for each of the above. scen These
tables include: the TOTAL COST for the increases in wages AND benefits: for 2010
(Without consi'deration, for an increase:sometime during; 2010 for the D62` -D72, E, and F
:levels• under. se.enario #3),
MAYOR'S RECOMMENDATION
Mayor Haggerton has reviewed the wage scenarios shown above, and there has been
discussion of other possible combinations and options for managing the Non
Represented wage increases for 2010. Though it is his preference for all Non
Represented staff to receive the full wage increase based on external comparables and
internal equity, he recognizes the current budget concerns and broad economic
conditions create a need to look at reducing and /or cutting wages and benefits.
Options:.: #3' Mayor H:aggertoh te.commend.s the Tukwila City Council select
Option #3 .above,; which p.ro.vide.s the full 2010 wage increase positions. at DBM
levels' A, B, C, and D61: and take a ":QOLA Holiday" on 2010 wage increase for
DBM levels: D62 -D7.2,
The Council is being asked to consider this issue at the October 26, 2009 Committee of
the Whole meeting and subsequent November 2, 2009 Regular meeting.
ATTACHMENTS
Wage and Benefit estimate tables for all scenarios
Draft Resolution with attachments:
Attachment A 2010 Wage Schedule
Attachment B 2010 Benefits
Attachment C 2010 Longevity Pay Plan
on-Rep Salary Increase Options
512
g
Budgeted Salary Increase
Cost e \N age Increase
Cos (Over) I Under Budget
s, effective 1(1I200
11120
All Non 1(1!2010, 50% 111l2010
Option 1 e Incr C an d p7IA 20
Option 2 50 /0 i cr Level A, B
Option 3 -Wage age Increa
Option -N°
Same as above
the {oltoWin
with benefits at
Budgeted Satary Increase
Cost of \N age Increase
Cost (Over) Under Budget
effective 1111210 1112010
1 -All Non-Rep eA1 11112
11112 5
0
Option W ag e Incr C an d p71, 20
Option 2 W age Incr Level A, B,
Option 3 -Wage
W age Increase
Option 4
Option 1
All Non -Reps
Effective 11112010
175,0
(188, 00,400)
Budget
175,0
1760
1 78,000
1 78,000
Option 1
A11 Non -Reps
Effective 111120_
1 95,800
(207,
(11,4
Option 2
cr 1!112010
50 °W
Another 178
(1 41 ,A 00)
36,90
Cost of Wages (188,400)
(141,
(61 400)
Budget
195,8
195,6
195,80
195,5
Option
11112
2 0
50% \N age Ina 11
Another on 195 800
(A 55,2A
40,5
Cost of W ag `207 ,240)
(155,
(67 ,54
Option 3
B C,p61
w lncr Level A,
Effective 1!1!2 8 000
(61,400)
AA 6,600
Cost (Over) rider Budget
00)
36,9
116,
175,0
Option 3
wage Incr Level A, B,
C, p
Effective 11112010
195,8
(67 ,5
128,2
Cost (Oven! Under Budge
(11,4
40,59
128,2
195,6
Option 4
No W ag e Increase
176,0
178,
Option 4
No =e Increas
195,8
195,800
City of Tukwila
Washington
Resolution No.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, UPDATING AND CLARIFYING THE NON REPRESENTED
EMPLOYEES' COMPENSATION AND ADOPTING THE NON REPRESENTED
SALARY SCHEDULE AND BENEFITS SUMMARY, EFFECTIVE JANUARY 1, 2010.
WHEREAS, the Tukwila City Council has conducted a review of the non represented
employees' compensation system that was originally implemented in January 1998, and
WHEREAS, the City Council recognizes that current economic conditions and forecasts are
a consideration in actions that deal with the compensation of employees; and
WHEREAS, the City Council has made a determination to review the non represented
compensation for even numbered years and provide COLAs in odd numbered years; and
WHEREAS, a compensation study has been conducted and the recommended non-
represented wage schedule and benefit information has been prepared for implementation on
January 1, 2010;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. The following statements have been used for the purpose of adopting the non-
represented employees' wages for 2010 and consideration for future years.
A. The following basic plan elements remain the same:
1. Decision Band Methodology (DBM) for creating classifications.
2. Market analysis using comparable jurisdictions' top -step wages.
3. Data was gathered through use of the "Association of Washington Cities (AWC)
Salary and Benefits Survey" to reduce the impact of contacting cities who have reduced wages
and /or benefits recently in a variety of ways, that do not reflect their actual wage and benefit
schedules and systems.
4. Regression line analysis to establish the Control Point for each DBM rating with a
range of 12.5% and 30% used to establish the steps (Regression Line Analysis provided by Fox
Lawson Associates, LLC, based on Personnel Department acquired market data).
5. Steps below the Control Point (Wage Schedule Top Step) are automatic as
individuals move through the system.
6. Ranges for all bands A11 -F102 of the Decision Band Methodology have been
established based on the outcome of the regression analysis (line of best fit) in creating the 2010
wage schedule.
7 Ranges All -D61 wages for 2010 are based on the outcome of the trend line analysis.
Wage increases for these Decision Bands shall be as shown on the attached Salary Schedule,
"Attachment A," pages 1 and 2.
8. Ranges D62 -F102 wages for 2010 will be on a "Cost -of- Living Holiday" (COLA
Holiday), meaning there will be no wage increases on January 1, 2010 for positions in these
Decision Bands. Any consideration for wage increases during 2010 for positions in these
Decision Bands will be based on the ability of the City of Tukwila to pay such increases through
improved budget and economic factors. The Finance Department, working in conjunction with
the Human Resources Department will, from time to time, review the ability of the City of
Tukwila to provide wage increases to employees at these Decision Band levels during 2010
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Page 1 of 6
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9 A "market adjustment" is normally applied to a position when the wage survey
results establish a new Control Point, that is 10% or more below the market and internal
compression exists within the career ladder, or where there is difficulty in recruiting and /or
retaining qualified employees. Due to the current budget and economic downturn, no "market
adjustments" will be considered for 2010. In order to ensure the integrity of the Decision Band
Method is maintained, while recognizing a wage gap based on market conditions for a specific
position, the "market adjustments" may be made in future years. When implemented, the
"market adjustment" shall be calculated by taking the difference between the newly- established
Control Point and the market average wage for the position, and applying it on top of the
established salary range for the position. This market adjustment shall be reviewed every two
years from the time it is implemented (if implemented) as part of the salary study and may be
eliminated or changed based on the results of the survey
B. The non represented salary schedule for 2010 provides an average market trend increase
of 4.14 as a whole, at the top step (Control Point). Individual DBM increases may vary on the
wage schedule based on where they fit in the overall regression analysis that develops the
market trend line. This analysis brings the wage schedule in alignment with external
comparables and internal equity
C. The City shall continue to conduct in -house market analysis of the non represented
compensation system during odd numbered years, using outside assistance on regression line
analysis calculations, as needed. The results of the analysis will be considered for
implementation on January 1 of the following even numbered year.
D. A COLA increase shall be considered for application each January 1 during odd
numbered years, based on the Seattle- Tacoma Bremerton Consumer Price Index (CPI -W)
Average (first half of 2010 to first half of 2011).
E. The Decision Band method of job evaluation will be used to establish classifications and
the relative internal value and relationship of non represented jobs within the City of Tukwila.
F. Merit will continue to be eliminated from the plan at this time and may be reconsidered
as a plan element in subsequent years.
G. Step increases from the minimum to the Control Point for all positions shall be given
annually on the employee's performance review date. There will be no step increases for
employees at or above the Control Point.
Section 2. Non represented employee salary schedule and benefits summary
A. The non represented employee salary schedule, "Attachment A" hereto, shall be
approved, effective January 1, 2010.
B. The non represented employee benefits summary, "Attachment B" hereto, shall be
approved, effective January 1, 2010
C. The non represented employee longevity pay plan, "Attachment C" hereto, shall be
approved, effective January 1, 2010.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a
Regular Meeting thereof this day of 2009
ATTEST/ AUTHENTICATED
Christy O'Flaherty, CMC, City Clerk
APPROVED AS TO FORM BY
Joan Hernandez, Council President
Filed with the City Clerk:
Passed by the City Council.
Resolution Number:
Office of the City Attorney
Attachments: Attachment A, Non Represented Employee Salary Schedule 2010
Attachment B, Non Represented Employee Benefits Summary 2010
Attachment C, Non Represented Employee Longevity Pay Plan 2010
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Administrative Support Technician I
Administrative Assistant
Management Coordinator
Management Analyst
Program Administrator
Program Manager
Administrative Manager
Classification Title
Office Technician
Office Specialist
Assistant Director
Department Manager
Department Administrator
Department Head
Department Director
City Administrator
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Attachment A, Page 1
City of Tukwila
Non Represented Employee Salary Schedule 2010
Job Title
Administrative Support Technician
Personnel Technician
Administrative Secretary
Civil Service Secretary /Examiner
Deputy City Clerk
Executive Secretary
Administrative Secretary I
Council Administrative Assistant
Program Coordinator Systems Administrator
Personnel Assistant
City Clerk
Court Administrator
Police Records Manager
Legislative Analyst
Personnel Analyst
Public Works Analyst
Internal Operations Manager
Public Works Coordinator
Emergency Management Coordinator
Assistant City Administrator
Senior Engineer
Building Official
IT Manager
I Range
I Al2
B21
B22
B23
C41
C42
C43
D61
Maintenance Operations Manager D62
Police Commander
Deputy Community Development Director D63
Deputy Finance Director
Deputy Public Works Director
Deputy Parks Recreation Director
Assistant Fire Chief D72
Assistant Police Chief
City Engineer
Economic Development Administrator E81
Administrative Services Director E83
DCD Director
Finance Director
IT Director
Parks Recreation Director
Fire Chief E91
Police Chief
Public Works Director
City Administrator J F102
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Attachment A, Page 2
Non Represented Employee Salary Structure (Monthly) 2010
DBM (Minimum)
Rating Step 1 Step 2 Step 3 Step 4
All 3,535 3,646 3,757 3,867
Al2 3,815 3,937 4,058 4,177
A13 4,105 4,231 4,360 4,488
B21 4,287 4,448 4,611 4,770
B22 4,566 1 4,737 4,909 5,081
B23 4,842 1 5,024 5,206 5,388
B31 5,082 1 5,305 5,527 5,749
B32 5,487 5,728 5,969 6,210
C41 5,708 5,935 6,163 6,393
C42 5,970 6,211 6,449 6,688
C43 6,236 6,486 6,737 6,986
C51 6,439 6,727 7,017 7,307
C52 6,882 7,192 7,502 7,812
D61 7,013 7,364 7,715 8,067
D62 7,271 7,633 7,997 8,359
D63 7,526 7,902 8,279 8,655
D71 7,691 8,112 8,534 8,956
D72 8,072 8,512 8,954 9,394
E81 8,157 8,564 8,973 9,379
E82 8,456 8,881 9,304 9,728
E83 8,705 9,142 9,576 10,013
E91 9,008 9,459 9,910 10,362
E92 9,380 9,851 10,322 10,790
F101 9,748 10,234 10,722 1 11,211
F102 10,114 10,620 11,127 1 11,635
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Step 5
3,977
4,296
4,615
4,935
5,254
5,573
5,972
6,451
6,622
6,928
7,235
7,595
8,123
8,418
8,723
9,032
9,376
9,837
9,817
10,153
10,446
10,812
11,261
11,700
12,140
Step 6
Step 7
6,850
7,169
7,488
7,888
8,367
8,766
9,085
9,404
9,803
10,282
10,257 10,681
10,577 11,000
10,882 11,319
11,264 11,719
11,731 12,198
12,186 12,677
12,646 13,155
The salary grid average is 4.14% at the top step. Individual DBM ratings differ based on market
trend analysis.
Page 4 of 6
Social Security (FICA): Social Security benefits shall be provided as contained in Section
2.52.010 of the Tukwila Municipal Code (TMC).
State -Wide Employee Retirement System (PERS): Retirement shall be provided as contained
in Section 2.52.020 of the TMC.
Holidays: Holidays shall be provided as contained in Section 2.52.030 of the TMC. Regular part
time employees shall be entitled to benefits on a pro -rata basis.
Sick Leave: Sick leave shall be provided as contained in Section 2.52.040 of the TMC. Regular
part -time employees shall be entitled to benefits on a pro -rata basis.
Medical Insurance: The City shall pay 100% of the 2010 premium for regular full -time
employees and their dependents under the City of Tukwila self insured medical/ dental plan.
Premium increases above 10% per year shall result in a modified plan document to cover the
additional cost above 10 or a premium shall be implemented for the difference, at the City's
discretion. The City reserves the right to select all medical plans and providers. Regular part
time employees shall be entitled to benefits on a pro -rata basis. Employees who choose coverage
under the Group Health Cooperative plan shall pay the difference between the City of Tukwila
plan full- family rate and the rate charged to them by Group Health.
Dental Insurance: The City shall provide 100% of the 2010 premium for regular full -time
employees and all dependents under the City of Tukwila self insured medical /dental plan for
dental coverage. Regular part -time employees shall be entitled to the same benefits on a pro
rata basis.
Life Insurance: For regular full -time employees, the City shall pay the premium for Plan C
(Multiple of annual earnings) or similar group life and accidental death and dismemberment
insurance policy Said plan shall be at 100% of annual earnings rounded up to the next $1,000
Regular part -time employees that work at least 20 hours per week shall be entitled to benefits
on a pro -rata basis (per insurance program requirements).
Vision/Optical/Hearing Care: The City shall provide coverage for eye examinations, vision,
optical and hearing care to non represented regular full -time employees and their dependents
at the rate of $200 per person, to a maximum of $400 per family unit each year. Regular part
time employees and their dependents shall be entitled to benefits on a pro -rata basis.
Disability Insurance: The City shall provide 100% of the premium for regular full -time
employees for a comprehensive long -term disability policy Regular part -time employees that
work at least 20 hours per week shall be entitled to benefits on a pro -rata basis (per insurance
program requirements).
Health Reimbursement Arrangement/Voluntary Employee Benefit Association (HRA/
VEBA): VEBA benefits shall be provided as contained in Resolution No. 1445 and as amended.
Vacation: Following the sixth month of continuous employment, annual vacation leave of six
full days (each day is calculated at eight hours, regardless of schedule worked) shall be granted.
Thereafter, an additional day of annual leave shall accrue each month, up to a total of 12 days.
Three additional days of annual leave shall be granted on the employee's anniversary date after
the third, fourth and fifth years. After six years, the employee shall be granted one day per year
additional annual leave to a maximum of 24 days per year The maximum number of accrued
hours is 384 or 48 days.
Years of Service 1 Vacation Accrual 1 Years of Service Vacation Accrual
0 -1 years 1 12 days* 10 years 19 days
1 -2 years 1 12 days 11 years 20 days
3 -6 years 1 15 days 12 years 21 days
7 years 16 days 13 years 22 days
8 years 1 17 days 14 years 23 days
9 years 18 days 15 years 24 days (maximum)
*Six full days will be granted following the sixth month of continuous employment.
(Days accrue at eight hours, regardless of schedule worked.) Regular part -time
employees shall be entitled to benefits on a pro -rata basis.
Uniform Allowance: An annual uniform allowance of $350 shall be granted to the following
employees: Fire Chief, Assistant Fire Chief, Police Chief, Assistant Police Chief, Police
Commander and Records Manager.
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Attachment B
Non Represented Employee Benefits 2010
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The monthly longevity flat rates shall be as follows for regular full -time employees after the
completion of the number of years of full time employment with the City set forth below.
Regular part -time employees shall receive longevity on a pro-rata basis.
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Attachment C
Non Represented Employee Longevity Pay Plan 2010
Completion of 5 years
Completion of 10 years
Completion of 15 years
Completion of 20 years
Completion of 25 years
Completion of 30 years
$75
100
125
150
175
200
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