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Home My WebLink AboutFS 2016-11-08 Item 2C - Resolution - 2017 COLA Adjustment for Non-Represented EmployeesCity of Tukwila Allan Ekberg, Mayor TO: Finance and Safety Committee FROM: Stephanie Brown —Smith, Human Resources Director CC: Mayor Ekberg DATE: November 2, 2016 SUBJECT: Non-Represented COLA Adjustment for 2017 ISSUE Adoption of 1.8% cost of living adjustments (COLA) for non-represented employees for 2017, per the City's adopted policy. BACKGROUND In 2013, the City Council adopted Resolution No. 1796 establishing a compensation policy for City employees. The Resolution outlines that in odd number years, non-represented employees are to be provided a COLA. The COLA is based on 90% of the Seattle-Tacoma-Bremerton Consumer Price Index (CPI-W) Average (June to June). For 2016, the CPI-W was 2.0%, thus the COLA for non-represented employees for 2017 would 1.8%. For background, non-represented employees represent roughly 10% of the City's total workforce, with the remaining employees covered under various bargaining units, which have collective bargaining agreements with the City that include specific COLA adjustments on an annual basis. Non-represented employees include a wide variety of positions in City government, from the City Administrator to administrative support staff and other non- management staff. DISCUSSION The Administration has heard from Council a desire to reexamine Resolution No. 1796 and agrees that there is an opportunity to ensure the policy is meeting its goals. In collaboration with the Finance and Safety Committee, Administration would like to examine the various compensation policies adopted in the Resolution. The review could include an overview of current compensation (both financial and non-financial) trends; a review of the policy regarding comparable cities; and other issues deemed appropriate by Administration and the City Council. Any proposed policy developed in Finance and Safety Committee would be reviewed and approved by the entire Council. FINANCIAL IMPACT The proposed COLA for non-represented employees is reflected within the proposed 2017/2018 City budget. RECOMMENDATION The Finance and Safety Committee is being asked to consider a 1.8% COLA increase to Non- Represented employees effective January 1, 2017, and to forward to the Committee of the Whole meeting on November 14, for discussion and approval at their regular meeting on November 21, 2016. 35 INFORMATIONAL MEMO Page 2 ATTACHMENTS • Draft Resolution • Attachment A- Draft 2017 Non - Represented Wage Schedule • Attachment B- Draft 2017 Non- Represented Schedule of Benefits • Attachment C- Draft 2017 Non - Represented Longevity Pay Schedule Resolution #1796 36 W:\2016 Info Memos\Non -Rep COLA dc.docx 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, 2017. WHEREAS, the Tukwila City Council adopted Resolution No. 1796 on June 3, 2013, which provided that a cost -of- living adjustment (COLA) be applied to the non - represented employee wage schedule in odd- numbered calendar years; and WHEREAS, the COLA has been based on 90% of the Consumer Price Index, All Wage Earners (CPI -W) Seattle- Tacoma - Bremerton Area (June); and WHEREAS, the CPI -W (June) for the above - stated period of time is 2.0 %; and WHEREAS, 90% of CPI -W as stated above is 1.80 %; and WHEREAS, City Administration recommends an increase of 1.80% to base wages effective January 1, 2017 for non - represented employees; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Non - Represented Wage Plan. A. The 2017 wage schedule for non - represented employees shall be increased by a rate of 1.80 %. B. Longevity pay will continue to be a part of the plan. C. Merit will continue to be eliminated from the plan, but may be considered as a plan element in subsequent years. W: \Word Processing \Resolutions\Non - Represented Employees Compensation -2017 11 -1 -16 sB:bjs Page 1 of 2 37 Section 2. Non - represented salary schedule, benefits summary and longevity pay plan. A. The "Non- Represented Salary Schedule — 2017," Attachment A hereto, shall be approved, effective January 1, 2017. B. The "Non- Represented Employee Benefits Summary — 2017," Attachment B hereto, shall be approved, effective January 1, 2017. C. The "Longevity Pay Plan for Non - Represented Employees — 2017," Attachment C hereto, shall be approved, effective January 1, 2017. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2016. ATTEST /AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Joe Duffie, Council President QI Filed with the City Clerk: Passed by the City Council: Resolution Number: Rachel B. Turpin, City Attorney Attachments: - Attachment A, Non - Represented Salary Schedule — 2017 - Attachment B, Non - Represented Employee Benefits Summary — 2017 - Attachment C, Longevity Pay Plan for Non - Represented Employees — 2017 W: \Word Processing \Resolutions \Non - Represented Employees Compensation -2017 11 -1 -16 sB:bjs Page 2 of 2 Attachment -- (Page --,-' City of Tukwila Non-Represented Salary Schedule - 2017 IClassification Title job Title Range [-office Technician Human Resources Technician B21 Office Specialist Assistant to the Chief B22 Administrative Assistant Deputy City Clerk B23 Assistant to the Director Council Administrative Assistant Executive Coordinator Executive Coordinator C41 Program Coordinator Information Technology Systems Administrator C41 Management Coordinator City Clerk FC42 Management Analyst Council Analyst C42 Human Resources Analyst Parks & Recreation Analyst Public Works Analyst Program Administrator Econon-dc Development Liaison C43 Emergency Manager Project Manager Community Engagement Manager gram Manager Building Official D61 Communications/Government Relations Manager Senior Manager Support Operations F___�dministrative M Maintenance Operations Manager D62 Assistant Director Deputy Community Development Director D63 Deputy Finance Director Deputy Public Works Director Municipal Court Administrator Department Manager Assistant Fire Chief D72 City Engineer Department Administrator Economic Development & Strategic Planning E81 Manager FDeputy Police Chief Deputy Police Chief E82 Attachment A (Page 2 of 3) City of Tukwila Non-Represented Salary Schedule - 2017 Classification Title job Title Range Head Human Resources Director E83 [----Department DCD Director Finance Director IT Director Parks & Recreation Director Department Director Fire Chief Police Chief Public Works Director F77C�i Administrator City Administrator nil Attachment A (Page 3 of 3) Non - Represented Salary Structure (Monthly) - 2017 Non-Represented ! -. Rating Step 1 Step 2 Step 3 Step 4 Step 6 Step 6 Step 7 ��]]i�� d till II ��# �lil� � � �' s � � -1,�-■ I MA L7C� !YC #�mom 41 42 Attachment B (Page 1 of 2) Non - Represented Employee Benefits - 2017 Social Security (FICAJ: Social Security benefits shall be provided as contained in Section 2.52.010 of the Tukwila Municipal Code (TMC). State -Wide Employee Retirement System (PERSJ: 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. An additional floating holiday has been granted to each non - represented employee, for a total of 2 floating holidays. 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 2017 premium for regular full-time employees and their dependents under the City of Tukwila self - insured medical/ dental plan. In the event the monthly premium increase is above 8% per year, the City's joint /labor management committee, which includes a non- represented employee, shall meet and discuss changes in the self - insured medical, dental vision and prescription plan benefit levels in an effort to create plan savings so the premium costs do not exceed the 8 %. 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 2017 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 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: Benefits provided to all 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. 43 Attachment B (Page 2 of 2) Non - Represented Employee Benefits - 2017 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 $ 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 $650 shall be granted to the following employees: Fire Chief, Assistant Fire Chief, Police Chief, Deputy Police Chief, and Senior Manager Support Operations. .. Attachment C Longevity Pay Plan for Non - Represented Employees - 2017 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 $75 Completion of 10 years 100 Completion of 15 years 125 Completion of 20 years 150 letion of 25 years 175 Cletion of 30 years 200 GR FA F. ho City of Tukwila Washington Resolution No. ) 9 NO A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ESTABLISHING A COMPENSATION POLICY FOR CITY OF TUKWILA EMPLOYEES AND REPEALING RESOLUTION NO. 1387. WHEREAS, the City believes that the purpose of a compensation program is to facilitate recruiting, retention, development and productivity of employees; and WHEREAS, the City desires to utilize standardized policies, procedures and processes, wherever possible, for compensating all employee groups, both represented and non - represented; and WHEREAS, the City recognizes that current economic conditions and forecasts, long-range City budget forecasts, position rates for comparable jurisdictions, as well as internal equity considerations should assist in guiding in the compensation of employees; and WHEREAS, the City has made a determination to, when economic conditions allow, review and adjust non-represented employee salaries via a market analysis to that of the average of comparable jurisdictions in even-numbered years, and to provide a cost-of-living (COLA) allowance in odd-numbered years; and . WHEREAS, the City has made a determination to, when economic conditions and negotiations allow, provide represented employees with salaries that reflect the average of comparable jurisdictions; and WHEREAS, the City has made a determination to, when economic conditions allow, provide benefits to represented and non-represented employees that are slightly above the average of comparable jurisdictions; and WHEREAS, the City Council will participate in setting negotiation expectations and reviewing and approving represented employee group contracts; WAWord Processing\Resolutions\Compensation policy for City employees 5-29-1.3 final SB:bjs Page I of 3 -19M NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The following statements and processes are adopted for the purpose of guiding compensation programs for employees of the City of Tukwila. A. Information to be provided to the City Council. 1. For Represented Employees. A written presentation of current internal and local external public agency salary and benefit trends, including a salary and benefits market survey of comparable jurisdictions, as defined herein, will be provided to the City Council. This presentation must be made to the Council prior to the commencement of negotiations with the bargaining units regarding salary and benefits. The City Council and Administration will discuss represented employee group negotiation expectations, negotiating points, salary and benefit change floors and/or ceilings prior to the beginning and at appropriate points during negotiation sessions. 2. For Non-Represented Employees. A written presentation of current internal and local external public agency salary and benefit trends, including a salary and benefits market survey of comparable jurisdictions, as defined herein, will be provided to the City Council every year that a non-represented salary increase is due. Relevant Association of Washington Cities (AWC) data from the previous year's Washington City and County Employee Salary and Benefit Survey, for the comparable jurisdictions, will be used in the salary market survey. B. Compensation Policy. 1. All Puget Sound jurisdictions with +/-50% of Tukwila's annual assessed valuation, based upon the Department of Revenue data, will be used to create the list of comparable jurisdictions for evaluation of salary information. It is desirable to use the same comparable jurisdictions for both represented and non-represented employee groups. 2. For non-represented employees, the City desires to pay the average salary for the particular pay scale, as derived from the comparable jurisdiction data described in Section B.1. If the City's pay scale for any classification does not represent the average of comparable salary ranges (+/-5%), written justification must be provided to the City Council. For represented employees, the City desires to pay salaries that are competitive to the City's comparable jurisdictions. 3. The cost-of-living adjustment (COLA) in odd-numbered years for non- represented employees shall be based upon 90% of the Seattle- Tacoma- Bremerton Consumer Price Index (CPI-W) Average (June to June). It is desirable to calculate represented cost-of-living adjustments the same way, unless a different method is authorized by the Council. WAWord Processing\Resolutions\Compensation policy for City employees 5-29-13 strike-thru SB:bjs Page 2 of 3 M1 4. The goal of the City is to establish parity between represented and non- represented employees' benefits. The City desires to provide employee benefits that are competitive to the comparable cities described herein. The City will endeavor to keep increases to annual health care costs under market averages. If costs exceed market averages, adjustments will be made to reduce benefit costs. 5. The goal of the City is to mitigate or avoid salary compression issues where possible. An example of salary compression would be when a non-represented supervisor earns less, or is projected to earn less than those that he/she supervises due to contracted wage increases. 6. If the Administration determines that a deviation from the above process (in its entirety or for individual positions) is necessary, it will provide justification to the City Council for review and approval prior to the adoption of any process change. Section 2. Resolution No. 1387 is hereby repealed. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this 3 J day of :=LA,�Q_ 2013. ATTEST/AUTH ENT[ CATE D: C,L-k (9 Easb Christy O'Flah6fty, MMC, City ClerV APPROVED AS TO FORM BY: �w Filed with the City Clerk- _,5 Passed by the City Council: Resolution Number:— O'Llb WAWord Processing\Resolutions\Compensation policy for City employees 5-29-13 final SB:bjs Page 3 of 3 We,