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HomeMy WebLinkAboutFS 2011-10-18 Item 2C - Resolution - 2012 Non-Represented Salary Schedule and Benefits SummaryCity of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Stephanie Brown, Human Resources Director DATE: October 18, 2011 SUBJECT: 2012 Non Represented Wages ISSUE 2012 Non Represented Wage Schedule analysis based on external comparables and internal equity. BACKGROUND In alignment with Resolution No. 1537, establishing a Non Represented MR) Emplovees' Comaensation Plan, a wage study has been conducted for calendar year 2012. 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 (AWC) 2011 Salary and Benefit Study. As in the past, a comparison was done of external comparables (cities) and internal equity (union pay scales). The following comparable cities were used for this study: Comnarables Auburn Bothell Puyallup Kent Kirkland Sea -Tac Lynnwood Mountlake Terrace Redmond Renton DISCUSSION In 2009, a non represented market study reflected that relative to the market, the non represented employees were falling behind. Fairly soon after the study, the economy took a major hit and with it a shift in how wages and benefits were considered by the cities going into 2010. Upon presenting the wage study to the City Council, a decision was made that in 2010 non represented positions banded at levels A11 -D61 would receive an average wage increase of 4.14% based on the 2009 market study, and positions banded D62 -F102 would receive no market increase, and their wages have been frozen at the 2009 salary level since that time. 63 INFORMATIONAL MEMO Page 2 The strategy to address the City budget shortfall in 2010 was to request our represented and non represented employees take reductions in wages and /or benefits for 2011. As a result, our Fire Union and Non Represented employees did not receive COLA increases this year, and the remaining represented employees (Teamsters' and USW Non Commissioned) received their negotiated cost of living adjustments. The Police Guild contract expired in December 2010. Attached to this memorandum is a table that shows the wage and cost of living adjustments (COLA) for all groups since 2009. Internal equity continues to create a wage gap as the represented groups receive negotiated cost of living adjustments. In looking at the internal equity issue, the non represented top step wage information is compared to the represented top step for 2011, which shows the represented wages have increased 3% to 6 This is also becoming apparent in upper level management positions where first level supervisors are earning a higher wage then Assistant or Department Directors whose wages are at 2009 salary levels. In light of the above, it is important to keep the non represented wages consistently moving in alignment with the market and with represented wages. In addition, we must remain competitive in salary and benefits to retain existing staff and attract applicants to positions at the City. There has been some improvement in the wages of our competing jurisdictions as the market study has shown. We also are seeing a resurgence of competition for upper level management positions. If we do not bring our salaries in alignment with the market, we will be faced with the possibility of losing key upper level management positions, which will have an effect on our succession plans into the future. The Decision Band Methodology (DBM) and regression line analysis have been completed for the non represented market study using the data from the 2011 AWC salary study in determining the "best line of match The analysis shows that positions banded at D62-Fl 02 are below market, and positions banded at Al 1 -D61 are at market. RECOMMENDATIONS The following Non Represented employee wage increase for 2012 is presented to the Mayor and Council for consideration: Approve the 2012 Non Represented salary schedule, effective January 1, 2012 providing a market wage adjustment as determined by regression analysis (see attached draft resolution), for positions banded D62 -F102, which provides for external comparability and internal equity; and provide a three percent (3 increase to those at the A, B, C, and D61 levels (generally technical and staff support levels), in order to maintain internal equity for these positions, which have more internal similarity with the represented positions. 2 INFORMATIONAL MEMO Page 3 The estimated cost to implement this increase for wages is $162,390. The market adiustment, and internal three percent (3 equity increase to the overall non represented salary schedule is $4,071,042,which is below the 2012 budaet of $4,161,988. The Benefit change for 2012 for non represented employees is to reduce the amount the City funds for medical contributions from 10% down to 8 (See attached benefit summary sheet) This change is reflective of the City Council's interest in aligning with our comparable jurisdictions in employee cost sharing for their medical insurance. The City Council is being asked to consider this change along with the adjustments to the wages for non represented employees. MAYOR'S RECOMMENDATION: The Mayor has reviewed the wage scenario above. He recognizes the current budget concerns however, he realizes the need to keep in alignment with the external market, decrease the internal equity compression, and remain competitive for salaries with our comparable jurisdictions for upper management level positions. Therefore, he recommends the City Council approve the 2012 Non Represented salary and benefits effective January 1, 2012, which provides for a market adjustment as determined by the regression analysis for positions banded D62 -F102, and provide a three (3 increase to those at A, B, C, and D61 levels in order to maintain internal equity for these positions, which have internal similarity with the represented positions. The Council is being asked to consider this issue at the October 24, 2011 Committee of the Whole meeting, and November 7, 2011, Regular meeting. ATTACHMENTS -Draft Resolution Attachment A: 2012 Wage Schedule Attachment B: 2012 Benefits Attachment C: 2012 Longevity Pay -Wage Adjustment table for represented and non represented employees. W, x 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, 2012. 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 cost -of- living allowances (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, 2012; 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 2012 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 a publication that garners wide participation of our comparables. W: \Word Processing \Resolutions \Non Represented Employees Compensation -2012 10 -11 -11 SB:bjs Page 1 of 3 67 4. Regression line analysis to establish the Control Point for each DBM rating. (Regression Line Analysis provided by Fox Lawson Associates, LLC, based on Human Resources 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 2012 wage schedule. 7. Ranges A11 -D61 wages for 2012 will receive a 3% wage adjustment on January 1, 2012 for positions in these Decision Bands. 8. Ranges D62 -F102 wages for 2012 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." 9. A "market adjustment" is normally applied to a position when the wage survey results establish a new control point, and internal compression exists within the career ladder, or where there is difficulty in recruiting and /or retaining qualified employees. In order to assure that 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 2012 provides an average market trend increase 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. 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 2011 to first half of 2012). 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. W: \Word Processing \Resolutions \Non Represented Employees Compensation -2012 10 -11 -11 sB:bjs Page 2 of 3 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 salary schedule, employee benefits summary and longevity pay plan. A. The Non Represented Salary Schedule, "Attachment A" hereto, shall be approved, effective January 1, 2012. B. The Non Represented Employee Benefits Summary, "Attachment B" hereto, shall be approved, effective January 1, 2012. C. The Longevity Pay Plan for Non Represented Employees, "Attachment C" hereto, shall be approved, effective January 1, 2012. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 1 2011. ATTEST /AUTHENTICATED: Christy O'Flaherty, CMC, City Clerk Allan Ekberg, Council President APPROVED AS TO FORM BY: Shelley M. Kerslake, City Attorney Attachments: Filed with the City Clerk: Passed by the City Council: Resolution Number: Attachment A, Non Represented Salary Schedule 2012 Attachment B, Non Represented Employee Benefits Summary 2012 Attachment C, Longevity Pay Plan for Non Represented Employees 2012 W: \Word Processing \Resolutions \Non Represented Employees Compensation -2012 10 -11 -11 sB:bjs Page 3 of 3 x ATTACHMENT A City of Tukwila Non Represented Salary Schedule 2012 Classification Title Job Title Range Administrative Support Technician Administrative Support Technician Al2 Office Technician Human Resources Technician I B21 Office Specialist Administrative Secretary B22 Civil Service Secretary/ Examiner Administrative Assistant Deputy City Clerk B23 Executive Secretary Administrative Secretary I Council Administrative Assistant Program Coordinator Systems Administrator C41 Human Resources Assistant Management Coordinator City Clerk C42 Court Administrator Police Records Manager Management Analyst Legislative Analyst Human Resources Analyst Public Works Analyst Program Administrator Internal Operations Manager C43 Public Works Coordinator Emergency Manager Program Manager Assistant City Administrator D61 Senior Engineer Building Official IT Manager Administrative Manager Maintenance Operations Manager D62 W: \Word Processing \Resolutions \N on- Rep resented Employees Compensation -2012 Attachments SB:bjs 71 ATTACHMENT A (continued) Non Represented Salary Schedule 2012 (continued) Assistant Director Deputy Community Development Director D63 Deputy Finance Director Deputy Public Works Director Deputy Parks Recreation Director Department Manager Assistant Fire Chief D72 Assistant Police Chief City Engineer Department Administrator Economic Development Administrator E81 Department Head Human Resources Director E83 DCD Director Finance Director IT Director Parks Recreation Director Department Director Fire Chief E91 Police Chief Public Works Director City Administrator City Administrator F102 W: \Word Processing \Resolutions \Non Represented Employees Compensation -2012 Attachments SB:bjs 72 ATTACHMENT A (continued) 2012 Non Represented Salary Structure (Monthly) DBM (Minimum) Rating Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 All 1 3,6411 3,7551 3,8701 3,9831 4,0961 1 Al2 1 3,9291 4,0551 4,1801 4,3021 4,4251 1 A13 1 4,2281 4,3581 4,4911 4,6231 4,7531 B21 1 4,4161 4,5811 4,7491 4,9131 5,0831 B22 1 4,7031 4,8791 5,0561 5,2331 5,4121 B23 4,9871 5,1751 5,3621 5,5501 5,7401 B31 5,2341 5,4641 5,6931 5,9211 6,1511 B32 5,6521 5,9001 6,1481 6,3961 6,6451 C41 1 5,8791 6,1131 6,3481 6,5851 6,8211 7,0561 C42 6,1491 6,3971 6,6421 6,8891 7,1361 7,3841 C43 6,4231 6,6811 6,9391 7,1961 7,4521 7,7131 C51 6,6321 6,9291 7,2281 7,5261 7,8231 8,1251 C52 1 7,0881 7,4081 7,7271 8,0461 8,3671 8,6181 D61 1 7,2231 7,5851 7,9461 8,3091 8,6711 9,0291 D62 1 7,2781 7,6401 8,0041 8,3671 8,7321 9,0941 D63 1 7,5331 7,9101 8,2871 8,6641 9,0411 9,4151 D71 1 7,7061 8,1271 8,5501 8,9731 9,3941 9,8191 D72 8,0871 8,5281 8,9711 9,4121 9,8551 10,2971 E81 8,1721 8,5811 8,9901 9,3961 9,8351 10,2761 10,697 E82 8,4721 8,8981 9,3221 9,7461 10,1721 10,5981 11,021 E83 8,7211 9,1591 9,5941 10,0321 10,4661 10,903 11,341 E91 9,0251 9,4771 9,9291 10,3811 10,8331 11,285 11,737 E92 9,3891 9,8611 10,3321 10,8011 11,2721 11,7431 12,212 F101 1 9,7661 10,2541 10,7431 11,2331 11,7231 12,2091 12,699 F102 1 10,1331 10,6401 11,1481 11,6561 12,1631 12,6701 13,178 2012 rate adjustments include 3% forA11 -D61, 5% for D62-E91,4.9% for E92 -F101 and 6.9% for F102. 2012 salary increases 2012 nonrep Salaries Partial 10/12/2011 73 x ATTACHMENT B Non Represented Employee Benefits Summary 2012 Social Security (FICA): Social Security benefits shall be provided as contained in Section 2.52.010 of the Tukwila Municipal Code (TMC). State -Wide Emplovee Retirement Svstem (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 2012 premium for regular full -time employees and their dependents under the City of Tukwila self insured medical/ dental plan. Premium increases above 8% per year shall result in a modified plan document to cover the additional cost above 8 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 2012 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: 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. Disabilitv 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 Arranaement/Voluntary Emplovee Benefit Association (HRA/ VEBA): VEBA benefits shall be provided as contained in Resolution No. 1445 and as amended. (continued...) W: \Word Processing \Resolutions \Non Represented Employees Compensation -2012 Attachments SB:bjs 75 ATTACHMENT B (continued) Non Represented Employee Benefits Summary 2012 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 Vacation Accrual Years of Service Vacation 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 21 days 7 years 16 days 13 years 22 days 8 years 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, and Records Manager. ATTACHMENT C Longevity Pay Plan for Non Represented Employees 2012 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. Completion of 5 years 1 $75 Completion of 10 years 100 Completion of 15 years 125 Completion of 20 years 150 Completion of 25 years 175 Completion of 30 years I 200 W: \Word Processing \Resolutions \Non Represented Employees Compensation -2012 Attachments SB:bjs IL�J City of Tukwila COLA Adjustments 2009-2012 Represented and Non-Represented Positions Non-Represented: Bands A11-D61 Bands D62-F102 Teamsters Police Non-Commissioned (USW) Police Commanders (USW) Police Commissioned (Guild) Fire 2009 2010 2011 2012 Non-Represented Wages 2009 wages represent a COLA adjustment based on 2008 CPI formula. 2009 market study is for 2010 wage adjustment. 2011 wages represent a COLA adjustment based on 2010 CPI formula. 2011 market study is for 2012 wage adjustment. 4.50% Market Average 4.14% Wages Frozen 4.50% Wages Frozen Wages Frozen 4.25% 1375% 3.375% 90% CPI-W Min 2.5% Max 4.5% 4.25% 3.25% 3.25% 90% CPI-W Min 3% Max 4.5% Same as Non-Rep Same as Non-Rep Bands D62-F102 Market Adjustment 90% CPI-W Min 2.5% Max 3.5% 3.50% 3.50% Currently in contract negotiations 4.20% 4.00% Wages frozen as a wage concession Currently in contract negotiations Non-Represented Wages 2009 wages represent a COLA adjustment based on 2008 CPI formula. 2009 market study is for 2010 wage adjustment. 2011 wages represent a COLA adjustment based on 2010 CPI formula. 2011 market study is for 2012 wage adjustment.