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Home My WebLink AboutFIN 2017-02-22 Item 2B - Discussion - City Council Compensation PolicyCity of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance Committee FROM: Stephanie Brown, Human Resources Director CC: Mayor Ekberg DATE: February 13, 2017 SUBJECT: Review and Discussion of City Council Compensation Policy -Resolution No. 1796 ISSUE The City Council has requested to meet with Administration to review and discuss Resolution No. 1796, which sets the policy for Compensation and Benefits for City employees. BACKGROUND In 2013, Resolution No. 1796 was adopted establishing a compensation policy for City of Tukwila Employees. The purpose of the compensation program defined by this Resolution is to facilitate recruiting, retention, development and productivity of its employees. Resolution No. 1796, also considers the City's desire to utilize standard policies, procedures and processes, whenever possible, for compensating all employee groups. Since the adoption of this policy in 2013, it has been used as a guide and serves to establish criteria for Administration to use when conducting analysis for salary and benefits. The criteria used for salary and benefit analysis is 1. All Puget Sound Jurisdictions with +/-50% of Tukwila's annual assessed valuation, based upon the Department of Revenue data. 2. For non-represented employees, the City desires to pay the average salary derived from comparable jurisdictions data that is +/-50% of Tukwila annual assessed valuation. 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). 4. The City desires to provide employee benefits that are competitive to the comparable jurisdictions providing benefits that are above average, when economic conditions allow. Other provisions of the Resolution seek to mitigate or avoid salary compression issues where possible, and that any deviations from the process noted above will be reviewed with the City Council prior to any adoption of any process change. ipt INFORMATIONAL MEMO Page 2 DISCUSSION The Administration has heard from the City Council a desire to re-examine Resolution No. 1796, and agrees that there is an opportunity to ensure the policy is meeting its goals. In collaboration with the Finance Committee, Administration would like to examine the various compensation policies as stated above. The review could include an overview of current compensation (both financial and non-financial) trends; a review of the policy regarding comparable cities; review the timing and process of non-represented compensation (market versus COLA); review benefits structure for competitiveness and other issues deemed appropriate by Administration and the Committee. We look forward to this discussion with you on February 22, and our recommendation is that this review and discussion be held over for an additional Finance Committee meeting before it is forwarded to the City Council for review. ATTACHMENT Resolution No. 1796 20 WA2017 Info Mernos\Compensation Policy 2-13-17.doc City of T ukwila Washington Resolution No. )93/0 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; W:\Word Processing\Resolutions\Compensation policy for City employees 5-29-1.3 final SB:bjs Page 1 of 3 21 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. W:\Word Processing\Resolutions\Compensation policy for City employees 5-29-13 strike-thru SB:bjs Page 2 of 3 22 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 e ' xample 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 day of :=,kAA) 0 12013. ATTEST /AUTHENTICATED: Christy O'FlahMy, MMC, City ClerV A • Filed with the City Clerk: Passed by the City Council: Lo Resolution Number: WAWord Processing\Resolutions\Compensation policy for City employees 5-29-13 final SB:bjs Page 3 of 3 23