HomeMy WebLinkAboutReg 2006-01-03 Item 6B - Resolution - 2006 Non-Represented Employee Salary Schedule and Benefits Summary W 1lA CO V NCIL GE DA Si N®Psis
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ITEM INFORMATION
CAS NUMBER. 06-001 I ORIGINAL AGENDA DATE. JANUARY 3, 2006
AGENDA ITEM TITLE Proposed resolution regarding non represented employees' compensation and
adopting a salary schedule and benefits summary, effective January 1, 2006.
CATEGORY DZscusszon Motzon Resolution Ordinance BzdArvard
Public Hearzng ❑Other
Mtg Date A3ftg Date MIg Date 1/3/06 IJtg Date s Date Altg Date Mtg Date
SP( )NSOR Counczl Mayor Adm Svcs DCD Finance Fire Legal P&R Police Ply
SPONSOR'S Every other year, a Non Represented wage study is conducted to verify the wage schedule
SUMMARY as to external comparability and internal parity. The analysis has been complete and is
being brought to Council for review and approval at the January 3, 2006 Regular meeting
to facilitate payment on the first payroll of the year on January 20, 2006.
REVIEWED BY COW Mtg CA &P Cmte F &S Cmte Transportation Cmte
Utilities Cmte Arts Comm. Parks Comm. Planning Comm.
DAME. N/A
RECOMMENDATIONS:
SPoNsoR /ADMIN Review and approve proposed resolution.
COMMITTEE N/A
COST IMPACT SOURCE
EXPENDrIURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
Fund Source:
Comments
MTG. DATE RECORD OF COUNCIL ACTION
01 -03 -06 Regular meeting
MTG. DATE ATTACHMENTS
01 -03 -06 Memorandum to Council dated December 28, 2005
Memorandum to Mayor dated December 27, 2005
AWC bulletin copy Page 3 Re: CPI
Proposed resolution including Attachments A B
1
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6200 Southcenter Boulevard. Tukwila) Washington 98188
Steven M. Mullet} Mayor
MEMORANDUM
TO:
Tukwila City Council Members
FROM:
Steve Mullet, Mayor /k/l'/p? '.
Ay;j
December 28, 2005
DATE:
RE:
Non-Represented Wages for 2006
Every other year, a Non-Represented wage study is conducted to verify the wage
schedule as to external comparability and internal parity. The completion of this year's
review process was delayed due to workload priorities in the Personnel Department. The
good news is the analysis is complete and is being brought forth to Council. It is
requested the council approve the salary schedule as presented during your Regular
Council meeting on Tuesday, January 3, 2006, in order to facilitate payment on the first
payroll of the year on January 20,2006.
Attached is a memorandum from Administrative Services Director, Viki Jessop,
providing some background regarding the study. She will be in attendance at the meeting
to answer questions you may have.
Phone: 206-433-1800 " City Hall Fax: 206-433-1833 0 wV!lVv'ci.tukwila.wa.us
C';r,}.jj) () ~d: ~u' 1/[,-1'1 J J1[" ;"'1
f &.rJ ! lj 11.<<.' ~i-:nf it! i:t
6200 Southcenter Boulevard. Tukwila, Washington 98188
Steven M. Mullet, Mayor
MEMORANDUM
DATE:
Steve Mullet, Mayor
Rhonda Berry, City Administrator
Viki Jessop, Amrrlnistrative Services Director to
,1\1
December 27, 2005 .
TO:
FROM:
RE:
Non-Represented Wage/Benefits 2006
In alignment with Resolution No. 1537, EstablIshing a Non-Represented (NR)
Employees' Compensation Plan, passed December 1,2003, a wage study has been
conducted for calendar year 2006. As in the past, a comparison was done on external
comparables and internal parity. The Decision Band Methodology and regression line
analysis have been completed and a wage schedule developed.
A review was conducted of comparable cities, with the goal of establishing a list that was
more in line with those used with the various bargaining units. Towards that end, the
following comparables were selected:
Comparables
City of Auburn
City of Kent
City of Puyallup
CIty of Renton
City of Bothell
City of KIrkland
City of Redmond
City of SeaTac
The Market Top Step average for each of the comparable positions was plotted for the
benchmark positions, resulting in the Linear Regression "best line of match". Once the
regression line was run, the initial top step wage information was run for all Non-
Represented positions and compared with the established 2006 wages for all other
employees. The 100% CPI-W SeattlelBremerton (August to August) figure of3% was
used to calculate a 2006 wage for those bargaining units that are still in negotiations,
though the actual rate negotiated may differ from the sample amount. (See attached CPI
information.)
Phone: 206-433-1800 .. City Hall Fax: 206-433-1833 " www.cUukwila.wa.us
Memo to Mayor and City Administrator
RE: Non-Represented Wages/Benefits
December 27, 2005
Page 2
The review of projected internal 2006 wages at the "C" DBM ratings show Non-
Represented employees falling behind comparative internal positions, thus creating in-
equity in wages ranging from .1 % to 7.5% (after applying the 3% COLA). It appears this
disparity has been gradually broadening over the past few years at the "C" band. In order
to corre'ct the disparity, an adjustment was made to the Non-Represented wage schedule
at the "C" and "D" band levels, in addition to the regular adjustment to the schedule for
2006 (see shaded area on "sample" wage schedule).
The total of all DBM rating levels, including those being adjusted for internal equity,
results in a top step salary schedule increase of 4.1 %. The cost of applying the schedule
to the existing Non-Represented employees is approximately 4%. This similarity in
percentage increase is primarily due to the large number of Non-Represented employees
at the top step of the wage schedule. The budget impact for 2006 is approximately
$12,349 per month ($148,188 annual amount). The budgeted amount for 2006 was 2.5%,
resulting in the actual increase coming in 1.5% above budget. It is my understanding that
a contingency amount was set aside to apply to this area if in fact the estimated increase
was more than anticipated. Finance Director Kevin Fuhrer can explain that aspect in
more detail, if needed.
It is recommended that the attached resolution adopting the 2006 Non-Represented wage
schedule and benefits be approved effective January 1,2006. Thank you for your
consideration.
(PI Takes a Big Jump
The Consumer Price Index jumped
sharply in September, posting
the largest one-month rise in the
overall CPI number in 25 years.
The U.S. CPI-U,- which is generally
cited as the indicator of inflation,
increased 4.7% from September of
2004 to September of 2005 - the
biggest 12-month change since
June of 1991. A 34.8 percent rise
in energy prices over the last year
is largely responsible for the big
increase. The U.S. CPI-W showed
an even larger increase over the
same time period - 5.2%.
Local governments in our state
often tie employee wage hikes
to annual increases in the CPI
- either the U.S. index, the local
Seattle-Tacoma-Bremerton or
Portland-Salem indexes, or the
West Cities Index. The most recent
figures for the Seattle area (August
of 2005 compared to August of
2004) were 2.7% for the CPI-U and
3.0% for the CPI-W - significantly
less than the U.S. numbers. The
U.S. CPI figures are published
monthly, and the Seattle-Tacoma-
Bremerton area index is published
bi-monthly. Semi-annual averages
are calculated for both the Seattle
and the Portland indexes
Typically, an escalator clause in a
collective bargaining agreement
will cite the specific index and the
time period Example' Effectiv~
January 1, 2006, the 2005
wage will be increased by the
percentage increase in the Seattle
CPI-W from August of 2004 to
August of 2005
Here is a summary of the most CPI
figures released by the Bureau of
Labor Statistics (BLS):
Seattle- Tacoma-Bremerton Area
Bi-Monthly Index
(Auglist 2005 compared to August
2004)
CPI-U: 2 7%
CPI~W: 3.0%
The Seattle-Tacoma-Bremerton
area CPI data is published bi-
monthly for even months only
(February, April, June, August,
October, December). The October
data will be available on November
16,2005.
U.S. All City Average
(September 2005 compared to
September 2004)
CPI-U: 4.7%
CPI-W: 5.2%
West B/C Cities Index
(September 2005 compared to
September 2004)
CPI-U: 4.0%
CPI-W: 4.2%
Seattle- Tacoma-Bremerton Area
Semi-Annual Average
(First half of 2005 compared to first
half of 2004)
CPI-U.2.7%
CPI-W: 2.9%
Portland-Salem Area
Semi-Annual Average
(First half of 2005 compared to
first half of 2004)
CPI-U: 2.5% ..
(PI.W: 2.4%
The U.S. and West B/C cities
averages are published monthly,
with the October data also
available on November 16. The
next Seattle and Portland semi-
annual averages (comparing the
second half of 2005 with the second
half of 2004) will be published in
mid-February, 2006.
ADDITIONAL CPIINFORMATION
You can always find up-to-date
CPI data on AWC's web site - click
directly on CPI Data or go to http: II
www awcnet.org and click on (PI
Data under Key Links. You can view
a .pdf file showing data since 2002,
or link directly to historical charts
on the Bureau of Labor Statistics
website. You can also call the
San Francisco BLS office at (415)
975-4350, or get a tape-recorded
message of the most current CPI
information for Seattle and the U S.
by calling 206-553-0645.
e
[IDrnffi~u
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, UPDATl1'lG AND CLARIFYING THE
NON-REPRESENTED EMPLOYEES' COMPENSATION AND
ADOPTING THE NON-REPRESENTED SALARY SCHEDULE AND
BENEFITS SUMMARY EFFECTIVE JANUARY 1, 2006.
WHEREAS, the Tukwila City C6uncil has conducted a review of the non-represented employees'
compensation system that was originally implemented on 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 COLA's 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 I, 2006;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOL YES AS FOLLOWS:
Section 1. The following statements have been used for the purpose of adopting the non-
represented employees' wages for 2006 and consideration for future years.
1. The following basic plan elements remain the same:
a. Decision Band Methodology (DBM) for creating classifications.
b. Market analysis using comparable jurisdictions' top step wages.
c. 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.
d. Steps below the Control Point are automatic as individuals move through the
system.
e. A market adjustment may be applied to a position when the wage survey results
establish a new control point, which is ten percent (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, thereby maintaining the integrity of the DBM while recognizing a wage gap based
on market conditions for a specific position. 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 positions. This market adjustment shall be
reviewed every two years as part of the salary study, and may be eliminated or changed based on the
results ofthe survey.
2. The non-represented salary schedule for 2006 provides a 3% increase to bring the
positions up to the regression trend analysis line. For those positions in the "C" and some of the "D"
bands, the wages have been adjusted above the trend line to provide internal parity adjustments with
other similarly placed positions in the City
3 A COLA shall be applied each January 1 during odd-numbered years based on the
previous summer's Seattle-Tacoma-Bremerton Area CPl-W (August-August). The CPl-W Index brings
the wages into greater alignment with similar positions in the City
1213012005
Page I of2
4 The City shall continue to conduct in-house market analysis of the non-represented
compensation system during odd-numbered years. The results of the analysis will be implemented on
January I of the following even-numbered year
5 The Decision Band method of job evaluation will be used to establish the relative
internal value and relationship of non-represented jobs within the City ofTukwila.
6. Merit will continue to be eliminated from the plan at this time, and may be reconsidered
as a plan element in subsequent years.
7. Step increases from the minimum to the control point for all positions shall be given
annually on the employee's perfonnance review date. There will be no step increases for employees at
or above the control point.
Section 2. Non-represented salary schedule and benefits summary
A. The non-represented salary schedule, Attachment "A" hereto, is hereby approved and shall be
effective January 1,2006.
B. The non-represented benefits summary, Attachment "B" hereto, is hereby approved and shall
be effective January 1,2006.
RESOLVED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, W ASHlNGTON, at a
Regular Meeting thereof this _ day of ,2006.
ATIEST/ AUTHENTICATED'
, Council President
Jane E. Cantu, CMC, City Oerk
APPROVED AS TO FORM BY:
Office of the City Attorney
Filed with the City Clerk:
Passed by the City Council.
Resolution Number:
I2I30i2005
Page 2 of2
2006
Non-Represented Salary Structure (Monthly)
OBM (Minimum)
Ratina Step 1 Step 2 Step 3 Step 4 Step 5 Step 6
A11 3,119 3,217 3,315 3,411 3,509
A12' 3,344 3,449 3,555 3,660 3,765
A13 3,575 3,686, 3,798 3,909 4,020
821 3,717 3,857 3,997 4,136 4,277
822 3,939 4,087 4,235 4,384 4,532
823 4,161 4,318 4,474 4,631 4,787
831 4,347 4,537 4,727 4,917 5,108
832 4,671 4,876 5,081 5,286 5,491
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063 6,285 6,599 6,913 7,228 7,542 7,856
071 6,417 6,768 7,120 7,473 7,824 8,176
072 6,721 7,088 7,456 7,824 8,192 8,559
E81 6,831 7,172 7,514 7,855 8,222 8,590
E82 7,023 7,375 7,727 8,078 8,431 8,783
E83 7,222 7,584 7,945 8,307 8,667 9,029
E91 7,466 7,840 8,214 8,588 8,962 9,336
E92 7,761 8,150 8,539 8,927 9,316 9,705
F101 8,057 8,460 8,863 9,267 9,671 10,073
F102 8,351 8,769 9,188 9,606 10,024 10,442
Step 7
8,941
9,134
9,391
9,710
10,094
10,477
10,860
Percent
Increase
30%
30%
30%
30%
30%
30%
30%
30%
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30%
30%
30%
30%
3.0%
30%
30%
3.0%
30%
30%
Average Increase for entire Schedule 4.1 %
SAMPLE
ATTACHMENT "B"
NON-REPRESENTED EMPLOYEE BENEFITS
2006
SOCIAL SECURITY (FICA) Social Security benefits shall be provided as contained in Section 2.52.010 of
the Tukwila Municipal Code (TMC)
ST A TE- 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.
MEDICAL INSURANCE: The City shall pay 100% of the 2005 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 premium for the 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 the next $1,000
VISION I OPTICAL I 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.
V ACA TION- Following the 6th month of continuous employment, annual vacation leave of 6 full days
(each day is calculated at 8 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 3rd, 4th, and 5th years. After 6
years, the employee shall be granted 1 day per year additional annual leave to a maximum of24 days per
year The maximum number of accrued ours is 384, or 48 days.
Years Vacation Years Vacation
of Service Accrual of Service Accrual
0-1 years 12 days* 10 years 19 days
1-2 years 12 days 11 years 20 days
3.6 years 15 days 12 years 2 I days
7 years 16 days 13 years 22 days
8 years 17 days 14 years 23 days
9 years 18 days ISYears 24 days (maximum)
*Six (6) full days will be granted following the sixth month of continuous employment.
(Days accrue at 8 hours, regardless of schedule worked.)
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, and Police Commander