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HomeMy WebLinkAboutCOW 2017-11-27 Item 4G - Resolution - 2018 Non-Represented Employees Salary CompensationCOUNCIL AGENDA SYNOPSIS 1 nidal, Meeting Date Prepared by 114a or's review Council re'iew 11/27/17 SB 11/27/17 12/04/17 SB ❑ BiaAward Mtg Date E Public Hearing Mtg Date E Other Mtg Date CATLGORY ►1 Discussion 11 Resolution Mtg Date Mtg Date 12/4/17 SPONSOR ❑ Council ❑Mayor ® HR ■ DCD ❑.Finance E Fire CTS ❑P&R ❑Police [PW/ ❑ Court SPONSOR'S A Resolution updating and clarifying the 2018 Non -Represented employees salary SUMMARY schedule. Administration is recommending that the non -represented employees receive the same increase provided to the Teamsters represented employees of 2.7% (90% of CPI -W) effective January 1, 2018. REvilAvI':D BY C C.O.W. Mtg. ❑ CDN Comm ❑ Trans &Infrastructure E Arts Comm. DATE: 11/21/17 ITEM INFORMATION ITEM No. 4.G. 99 STAFF SPONSOR: STEPHANIE BROWN ORIGINAL AGENDA DATE: 11/27/17 AGI'.NDA ITEM Trrl.I; 2018 Non -Represented Wages 11/27/17 C Motion Mtg Date E Ordinance Mtg Date ❑ BiaAward Mtg Date E Public Hearing Mtg Date E Other Mtg Date CATLGORY ►1 Discussion 11 Resolution Mtg Date Mtg Date 12/4/17 SPONSOR ❑ Council ❑Mayor ® HR ■ DCD ❑.Finance E Fire CTS ❑P&R ❑Police [PW/ ❑ Court SPONSOR'S A Resolution updating and clarifying the 2018 Non -Represented employees salary SUMMARY schedule. Administration is recommending that the non -represented employees receive the same increase provided to the Teamsters represented employees of 2.7% (90% of CPI -W) effective January 1, 2018. REvilAvI':D BY C C.O.W. Mtg. ❑ CDN Comm ❑ Trans &Infrastructure E Arts Comm. DATE: 11/21/17 11 Finance Comm. ❑ Public Safety Comm. Comm. C Planning Comm. CHAIR: SEAL ❑ Parks COMMITTEE RECOMMENDATIONS: SPONsoR/ADMIN. commn-riE Human Resources Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURJ: REQUIRED D AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/27/17 MTG. DATE ATTACHMENTS 11/27/17 Informational Memorandum dated 11/15/17 Resolution #1796 Resolution Draft Form with Attachments A -C Minutes from the Finance Committee Meeting of 11/21/17 12/4/17 99 100 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance Committee FROM: Stephanie Brown, Human Resources Director CC: Mayor Ekberg DATE: November 15, 2017 SUBJECT: Non -Represented Employee Wages for 2018 ISSUE Non -Represented Employee Wage Adjustment for 2018. BACKGROUND Resolution No. 1796 (Attachment A) adopted in 2013 establishes a compensation policy for City of Tukwila Employees. Per this resolution, it outlines the process to "adjust non -represented employee salaries via market analysis to that of comparable jurisdictions in even -numbered years, and to provide a cost -of -living (COLA) allowance in odd -numbered years" In 2017 the market analysis was put on hold to allow Administration and the City Council to discuss Council Resolution No. 1796, which establishes the City's compensation policy. This item was on the Finance Committee Workplan and an initial discussion was held on April 4. The review was not completed this year mostly due to the fact that the collective bargaining agreements were still being negotiated. The recommendation is to move this review to the 2018 workplan. Per the request of the Finance Committee Chair, staff was asked to provide a recommendation on moving forward with a non -represented compensation plan in 2017 that would be equitable for these 37 employees (roughly 10% of the City's workforce) which include positions such as Office Technicians, Administrative Assistants, Coordinators, Administrators, Managers and Directors. Resolution No. 1796 provides a mechanism for deviations from this process. For internal equity considerations and to mitigate salary compression, Administration is recommending that the non - represented employees receive the same increase provided to the Teamsters of 2.7% (90% of CPI -W) effective January 1, 2018. This includes implementing the self-funded health benefit design changes recommended in 2017. In addition, discussion of the City's compensation policy would commence 1st quarter of 2018. RECOMMENDATION The Finance Committee is being asked to forward this item for discussion to the Committee of the Whole meeting on November 27, 2017 and subsequent December 4 Regular Meeting for approval. ATTACHMENTS - Attachment A: Resolution No. 1796 Employee Compensation Policy -Attachment B: Resolution Updating and Clarifying Non -Represented Employees Compensation - Attachment C: 2018 Benefits and Salary Schedule 101 102 City of Tukwila Washington Resolution No. Jr) qk7 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 5-29-13 final SB:bjs Page 1 of 3 103 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 g roups. 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 104 Page 2 of 3 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 pF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this 3 rev day of ti,,k) , 2013. ATTEST/AUTHENTICATED: Christy O'Flah APPROVED AS TO FORM BY: Shell rney Kathy HoL gard C it Presi Filed with the City Clerk: S' —9-L Passed by the City Council: 13 Resolution Number: qb W:\Word Processing\Resolutions\Compensation policy for City employees 5-29-13 final SB:bjs Page 3 of 3 105 106 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, UPDATING AND CLARIFYING NON -REPRESENTED EMPLOYEES' COMPENSATION, AND ADOPTING THE NON -REPRESENTED SALARY SCHEDULE AND BENEFITS SUMMARY, EFFECTIVE JANUARY 1, 2018. WHEREAS, the goal of the City is to mitigate or avoid salary compression issues where possible; and WHEREAS, City Administration recommends non -represented employees receive the wage adjustment that Teamsters' represented positions will receive of 2.7% to base wages effective January 1, 2018; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Non -Represented Wage Plan. A. The 2018 wage schedule for non -represented employees shall be increased by a rate of 2.7%. 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. Section 2. Non -Represented Salary Schedule, Benefits Summary and Longevity Pay Plan. A. The non -represented salary schedule, "Attachment A" hereto, is hereby approved, effective January 1, 2018. B. The non -represented benefits summary, "Attachment B" hereto, is hereby approved, effective January 1, 2018. W:\Word Processing\Resolutions\Non-Represented Employees Compensation -2018 10-9-17 SB:bjs Page 1 of 2 107 C. The non -represented longevity pay plan, "Attachment C" hereto, is hereby approved, effective January 1, 2018. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2017. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Dennis Robertson, Council President APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Resolution Number: Rachel B. Turpin, City Attorney Attachments: - Attachment A, Non -Represented Salary Schedule — 2018 - Attachment B, Non -Represented Employee Benefits Summary — 2018 - Attachment C, Longevity Pay Plan for Non -Represented Employees — 2018 W:\Word Processing\Resolutions\Non-Represented Employees Compensation -2018 10-9-17 SB:bjs 108 Page 2 of 2 Attachment A (Page 1 of 3) City of Tukwila Non -Represented Salary Schedule - 2018 Classification Title Job Title Range Office Technician Human Resources Technician B21 Office Specialist Assistant to the Chief B22 Administrative Assistant Deputy City Clerk Assistant to the Director B23 Executive Coordinator Executive Coordinator C41 Program Coordinator Information Technology Systems Administrator C41 Management Coordinator C42 Management Analyst Council Analyst Human Resources Analyst Parks & Recreation Analyst Public Works Analyst C42 Program Administrator Economic Development Liaison C43 Project Manager Community Engagement Manager C51 Program Manager Building Official Communications/Government Relations Manager Senior Manager Police Support Operations Technology Integration Manager Records Governance Manager/City Clerk D61 Administrative Manager Maintenance Operations Manager D62 Assistant Director Deputy Community Development Director Deputy Finance Director Municipal Court Administrator D63 Department Manager Assistant Fire Chief City Engineer D72 Department Administrator Economic Development & Strategic Planning Manager E81 Deputy Police Chief Deputy Police Chief E82 109 Attachment A (Page 2 of 3) City of Tukwila Non -Represented Salary Schedule - 2018 Classification Title Job Title Range Department Head Human Resources Director DCD Director Finance Director IT Director Parks & Recreation Director E83 Department Director Fire Chief Police Chief Public Works Director E91 City Administrator City Administrator F102 Title Table Revised: 08/25/17 110 Attachment A (Page 3 of 3) Non -Represented Salary Structure (Monthly) - 2018* *2.7% COLA applied. Payroll to review and provide finalized wage schedule. DBM Rating (Minimum) Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 All 4,178 4,309 4,442 4,571 4,702 Al2 4,510 4,653 4,797 4,938 5,077 A13 4,853 5,001 5,153 5,305 5,455 B21 5,068 5,258 5,450 5,638 5,833 B22 5,398 5,600 5,804 6,006 6,210 B23 5,723 5,938 6,154 6,368 6,587 B31 6,008 6,271 6,533 6,796 7,060 B32 6,487 6,770 7,055 7,340 7,625 C41 6,682 6,948 7,215 7,484 7,751 8,019 C42 7,057 7,341 7,623 7,906 8,188 8,474 C43 7,372 7,667 7,963 8,258 8,552 8,851 C51 7,611 7,952 8,294 8,637 8,977 9,324 C52 8,136 8,500 8,867 9,234 9,601 9,890 D61 8,049 8,451 8,854 9,258 9,660 10,060 D62 8,193 8,601 9,011 9,420 9,830 10,238 D63 8,480 8,904 9,328 9,753 10,178 10,600 D71 8,675 9,150 9,626 10,102 10,576 11,054 D72 9,104 9,600 10,100 10,596 11,096 11,593 E81 9,200 9,659 10,121 10,578 11,072 11,568 12,043 E82 9,538 10,017 10,495 10,972 11,452 11,931 12,407 E83 9,818 10,311 10,800 11,293 11,783 12,275 12,767 E91 10,160 10,668 11,178 11,687 12,195 12,705 13,213 E92 10,579 11,111 11,642 12,170 12,701 13,232 13,762 F101 11,005 11,555 12,105 12,658 13,210 13,758 14,309 F102 11,151 11,708 12,266 12,826 13,384 13,943 14,500 111 112 Attachment B (Page 1 of 2) Non -Represented Employee Benefits - 2018 Social Security (FICA1: Social Security benefits shall be provided as contained in Section 2.52.010 of the Tukwila Municipal Code (TMC). State -Wide Employee Retirement System (PERS1: 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 2018 premium for regular full-time employees and their dependents under the City of Tukwila self-insured medical 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 Kaiser Permanente plan shall pay the difference between the City of Tukwila plan full -family rate and the rate charged to them by Kaiser Permanente. Dental Insurance: The City shall provide 100% of the 2018 premium for the regular full-time employees and all dependents under the City of Tukwila self-insured 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 are provided to all non -represented regular full-time employees and their dependents at the rate of $250 per person, to a maximum of $500 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. 113 Attachment B (Page 2 of 2) Non -Represented Employee Benefits - 2018 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 $650 shall be granted to the following employees: Fire Chief, Assistant Fire Chief, Police Chief, Deputy Police Chief, and Senior Manager Police Support Operations. 114 Attachment C Longevity Pay Plan for Non -Represented Employees - 2018 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 Completion of 25 years 175 Completion of 30 years 200 115 116 Finance Committee Minutes November2l, 2017 more opportunities for staff and residents to access GIS capabilities, primarily through the new Tukwila iMap application. The two-year agreement total is below the allocation of $90,000 in the adopted budget. UNANIMOUS APPROVAL. FORWARD TO DECEMBER 4, 2017 REGULAR CONSENT AGENDA. G. Resolution: Non -Represented Employees 2018 Compensation Staff is seeking Council approval of a resolution that would grant an increase of 2.7% to non- *represented employees' compensation effective January 1, 2018. The Council's intent to review the overall compensation policy as adopted in Resolution 1796 is postponed to 1st Quarter 2018 due to the ongoing collective bargaining negotiations occurring this year. Staff is proposing the 2.7% increase because it matches the increase that was negotiated for the Teamsters, which is the group that represents the largest number of City employees. The resolution also adopts the benefits and longevity pay plan. Councilmember Hougardy asked how this percentage increase relates to the overall City budget and revenue picture. Staff replied that the third quarter report shows sales tax revenues are under budget, but property tax is at budget and gambling tax is over budget. Overall revenues increased by about $570k. The City can pay for this salary increase if authorized by Council because departmental expenditures continue to be under budget. Councilmember Hougardy also asked what the dollar amount of the proposed increase for the 37 employees amounts to, and staff will follow up with that information. While acknowledging the market study has not been performed this year, Committee members requested general information about salary increases in other jurisdictions. This information will be provided when the compensation policy will be reviewed in early 2018. Councilmember McLeod expressed concern about granting a salary increase to employees who may already be above market, and stated he intends to focus on this next year. Staff noted that the Teamsters contract that will be before the Council includes language specifically addressing that, which will help inform the Council's policy discussion with regard to non -represented employees as well. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 27, 2017 COMMITTEE OF THE WHOLE. III. MISCELLANEOUS Adjourned at 7:53 p.m. Committee Chair Approval Minutes by LH 117