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HomeMy WebLinkAboutCOW 2019-11-12 Item 4E - Resolution - 2020 Non-Represented Employees CompensationCOUNCIL AGENDA SYNOPSIS --- hlilialv --------------------------------- I ITEMNO. Aleolilrg Dale Prepared by Ala; r,s nvi 1v Council revien, 11/12/19 JP 11/18/19 JP 4. E. ;)1()NS()R: JUAN PADILA ORIGINAL, A(iI,'NI).\ Dxn;': 11/12/19 A (,, I 'N I M PYFN I TYI] . 1:1 Non -Represented Employees' Compensation Cx1,I:c,()1tY Z Discussion Altghate ill]2119 Z Motion Al(gbate 11118119 E] Resolution Al,t,Date 0 Ordinance Aft Dale Ej Bid�,Jward All Dale El Public I-Iearing Mtn ❑ 0112e All9 Dalo 1 SPONSO]t [:]Council E],Mqyor Z 14R E]DCD 01,-inance 017in, E]TS' OP&R ElPolice EIPIF ElCourl t 's Discussion and consideration of Non -represented wages and benefits for 2020. Seeking SC1NIbLAItY Council approval for a 1.53% across the board wage adjustment; longevity change for Police Chief and Deputy Police Chief to eliminate internal wage compression; and funding to conduct a Request for Proposals (RFP) for a new market -based classification and compensation system for non -represented positions. Rj:vii,wim BY El C.O.W. mtg. [:] CI)N Corrim Z 1,inancc Comm. ❑ Public Safety COM11-1. RTrans &1n fras truCt Lire Ej Arts Comm. R Parks Comm. EJ Planning Comm. DATE: 10/28/19 commirrFE CHAIR: MCLEOD RECOMMENDATIONS: SPONSOR/Al),"JIN. Human Resources COININIVI'IFIUanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE AMOUNT BUDGETED APPROPRIATION REQUIRED $0 $0 $0 Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/12/19 11/18/19 MTG. DATE ATTACHMENTS 11/12/19 Informational Memorandum updated 10/23/19 with attachments Draft Resolution Minutes from the 10128 Finance Committee Meeting 11/18/19 Final Resolution EW Ila TO: Finance Committee CC: Mayor Ekberg FROM: Juan Padilla, Human Resources Director DATE: Updated October 23, 2019_-_New content appears on pages 7-10 SUBJECT: Non -Represented Employee Compensation ISSUE City Council adopted Resolution 1951 in November of 2018, which provides policy direction to the Administration regarding employee compensation. This is the first year this revised policy is being implemented and is also a "market" year for non -represented employees. The purpose of this item is to share the implementation steps to date with the Committee, seek additional guidance from the Committee on some areas of implementation and meet the timelines detailed in the policy. DISCUSSION Before going into the specifics of implementing Resolution 1951, below is a quick discussion of the changes made from the previous resolution, 1796. The biggest changes are found in the following categories: 1. Specific timelines and information due to the council for non -represented employees with data specifically to come from the AWC Washington City and County Employee Salary and Benefit Survey. 2. Expanded the number of comparable cities by increasing the comparable cities' annual assessed valuation from +50/-50% to +75/-50% and that comparable cities must have their own police departments. 3. Strict guidelines on how to deal with positions that are either more than 5% below the market and 10% above the market. 4. Simplified the language describing compression. 5. Review of the policy on an annual basis. Resolution 1951 is broken down in two main areas: "Information to be provided to the City Council" and "Compensation Policy." A copy of the policy is attached for reference. Below is a discussion of the implementation of the different areas to date. UPDATE: October 9, 2019 Staff has completed the analysis of the non -represented employee compensation, except for the Fire Chief and Assistant Fire Chief. Because the City is still bargaining with the IAFF 2088, staff is unable to complete a compression analysis of these two positions until that bargaining is complete. It is recommended that those two positions are reviewed once that contract is settled in order to address any potential internal compression issues, which may be a likely outcome. Below in underline is a discussion of any changes from the previous memo relative to the Council's adopted non -represented compensation policy, Resolution 1951. Also included are staff's recommendations on how to move forward, consistent with industry best practice. In INFORMATIONAL MEMO Page 2 Al — "For Represented Employees": The information laid out in this section has been shared with the City Council during executive session by bargaining group throughout the process of negotiating the latest collective bargaining agreements. During this calendar year Human Resources has successfully negotiated new contracts with six bargaining groups. Of the two remaining, one achieved a tentative agreement this week and the other continues to bargain and the current contract does not expire until the end of this year. Al. No Change 2. A2 — "For Non -Represented Employees": Current internal salary trends show that represented employees are receiving an increase in 2020 and 2021 ranging from 1.53% to 1.7% (90% - 100% of CPI). Externally, while staff knows of no cities that have yet made a final decision on 2020 compensation, conversations with their staff indicate most are contemplating an increase for non -represented staff between 1.5% and 3%. The adopted City of Tukwila budget included a 2.5% increase from 2019 to 2020 for non - represented employees. Staff is seeking guidance from the Council to finalize the information based on challenges that have arisen in the implementation of this new policy. There are 39 non - represented employees that hold 36 different positions in 15 different bands. Previously the City had benchmarked approximately 12 positions. Staff has attempted to expand benchmarked positions to over 20 positions in order to provide a more complete analysis. The AWC Employee Salary and Benefit Survey is not comprehensive, leaving many positions unable to be benchmarked (benchmarked positions require finding at least five other comparable positions within our comparable cities). Staff can and has reached out to the other comparable cities to achieve a higher number of benchmarked positions, but such activity is outside of the policy direction given in the resolution. Going outside the AWC survey allows the City to better track total compensation, as the benefit information provided by AWC is incomplete. o Question for the Committee — Should staff go beyond the AWC survey in order to gather as much information as possible, which would include polling our comparable cities for information on each non -represented position? o Question for the Committee — Alternately, should the City contract with an outside firm for a full market study? A2 There was a change from the previous meeting where staff thought it could benchmark more than 20 positions. However, after further analysis and using the industry standard of five comparable cities to constitute a match only 19 positions were able to be benchmarked. Recommended courses of action for future market system: 1. Contract for a new market -based non -represented compensation system to replace the current DBM system. To initiate this action the City would conduct an RFP process. Staff would seek additional budget authority to be granted in the 2020 budget to develop the new market -based non - represented compensation system. 3. B1 — This section changed the jurisdictions defined as comparable cities from +50/-50% of Tukwila's annual assessed value to +75/-50% AV with a police department. This has resulted in the City now having 15 comparable cities, seven under Tukwila's AN and eight above. The comparable cities with their AV are attached. 112 Z:1Council Agenda Items\Human Resources12019 NonRep FC Oct 28\2019 Non Rep Memo Final —Oct 28.docx INFORMATIONAL MEMO Page 3 o Question for the Committee - the policy does not address Fire as only three of our comparable cities have stand-alone fire departments (Snoqualmie, Mukilteo and Bothell). This affects two employees, the Fire Chief, and Assistant Fire Chief. Staff believes there are two options: 1) the City can choose to not benchmark these positions, or 2) the City can use comparable fire districts/authorities with the same AN direction given in section B1 of Resolution 1951. Neither of these are perfect options. B1 The table in B2 shows the repression results from the analysis not including the Fire Chief and Assistant Chief, as there were not enough comparable jurisdictions within the City's comps (there are only three) for those positions. As the table shows, there are some positions that are over market more than 10% and some positions that are under market in salary only by 4 44% This does not consider internal compression that will be addressed in B6 nor does it consider non -salary compensation common in higher ranking positions in the City's comparable cities. However, the regression analysis shows an average difference across the benchmarked positions as 5.57% above market which puts the whole of the non - represented employees as considered competitive with the market. 4. B2 - Staff is currently analyzing the salaries with comparable jurisdictions and will present the information to the Committee on October 14, 2019. DBM° Market Median Market Median Hourly Current Max Max Based on Regression Results % Diff B21 NA NA $34.74 $28.31 -18.50% B22 NA NA $36.99 $30.72 -16.96/0 B23 6511 37.56 $39.24 $33.12 -15.60% C41 6866 39.61 $47.76 $42.74 -10.52% C42 7374 42.54 $50.47 $45.14 -10.57% C43 8108 46.78 $52.72 $47.54 -9.83% C51 NA NA $55.54 $50.55 -8.99% C52 NA NA $58.91 $54.15 -8.08% D61 8734 50.39 $59.92 $57.16 -4.61% D62 NA NA $60.98 $59.56 -2.33% D63 9940 57.35 $63.14 $61.96 -1.87% D71 NA NA $65.84 $64.97 -1.33% D72 12686 73.19 $69.05 $68.57 -0.69% E81 NA NA $71.73 $71.58 -0.21% E82 13049 75.28 $73.90 $73.98 0.11% E83 13108 75.62 $76.04 $76.38 0.45% E91 13153 75.88 $78.70 $79.39 0.88% E92 NA NA $81.97 $82.99 1.25% F101 NA NA $85.23 1 $86.60 1.61% F102 15364 88.64 $86.37 $90.21 1 4.44% Average % Difference -5.57% Z:ICouncil Agenda Items\Human Resources12019 NonRep FC Oct 28\2019 Non Rep Memo Final -Oct 28.docx 113 INFORMATIONAL MEMO Page 4 5. B3 — Staff is currently analyzing the data per the item above. At the October 14, 2019 Finance Committee staff will provide all documentation defined in this section of the resolution. B3 As staff analyzed the data we found several issues in using our current DBM system. One of the most important is that it is difficult when there is only one benchmark for several different positions: For example at the C42 Band there are four Analyst positions (Council Analyst Human Resources Analyst Parks & Recreation Analyst, Public Works Analyst) but only one Human Resources Analyst is a market benchmark with the AWC Survey. This causes the other three positions to be shown as overmarket more than 10%, as the City lacks true benchmarks with the other positions to determine whether this is an accurate reflection of the market In other words four employees in the band are being impacted by only having on benchmark out of 4 different jobs in the C42 band; this issue would be resolved with the market -based system. Staff recognizes that the lower banded positions in the current DBM system are over market whereas the higher banded positions are under market. This can be related to the obscurity of the AWC survey, in that the higher end bands are more common job descriptions across agencies within the market Another reason behind the disparity between the lower and upper bands is a result of over time the bands not moving together throughout the years, not maintaining the chart over time to show a true repression. As noted in the meeting on September 23 2019 without a significant refresh of our system, the City is not able to provide a true market analysis for non -represented positions. When the City moves to the market -based system in 2020 and a new analysis is complete, positions that are found to be under market will be retroactively adjusted to January 1, 2020. Option 1 Due to the high value that the City places on the employees as well as consideration of equity and parity with our represented staff, all non -represented employees receive 90% CPI-W (June to June 2019) 1 53% in 2020 in order to maintain the current market and allow time for the City to convert to the new market -based non -represented compensation system. Option 2: Freeze the positions that are over 10% and apply the 2020, 90% CPI-W 1,53% for the positions between -5% to +10%. Recommendation• Option 1 and conduct an RFP in the 1st quarter of 2020, to develop the new market -based non -represented compensation system. 6. B4 — This section, non -represented COLA for odd years, was implemented in November of 2018 for the 2019 Fiscal Year as a part of the biennial budget process. B4. No Change 7. B5 — Staff is not suggesting any changes to employee benefits at this time. The Administration expects there will be a discussion on health care costs during the 2021 /2022 budget process. B5. No Change 8. B6 — Analysis to date shows that there is salary compression within the organization. Specifically, recent contract changes have resulted in compression between the Police 114 Z;1Council Agenda Items\Human Resources12019 NonRep FC Oct 28\2019 Non Rep Memo Final —Oct 28.docx INFORMATIONAL MEMO Page 5 Commanders and Deputy Chief. Compression at this level has a cascading effect impacting other leadership positions. The full compression analysis will be presented to the Committee on October 14, 2019. B6 Recent successful negotiated contracts with the Police Commanders, which brought them to market has created significant compression with the Deputy Police Chief and Police Chief. Currently a Commander with 25 years of service makes more than the Deputy Police Chief. Even though our Deputy is close to market the policy allows for the compression to be mitigated which is standard best practice in the industry. Recommendation: Courses of action for Police Compression 1 . The Police Chief and the Deputy Police Chief should receive the same longevity as the Commanders in order to mitigate current compression in the department. Internal compression not only affects the Police Department; it also impacts the Deputy City Administrator and the City Administrator: which we recommend to be reviewed during the Option 1 of B3 new market based non -represented compensation system implementation. 9. B7 — Staff strongly agrees that the compensation policy should be reviewed on a regular basis. In fact, implementing this policy has brought to light deficiencies in the City's Decision Band Method (DBM) compensation system. Like any major system, without a significant refresh on a regular basis, a static DBM system can become obsolete. In addition, after a review of comparable and neighboring cities, it is has become clear that most have moved away from a DBM system to market -based ones. While any employer needs to have a system — and the DBM one did work for the City for a number of years — it is clear that either the DBM needs to be updated or the City should move to a different system. Staff believes the City should explore moving to a market -based system and will be bringing a proposal to the Finance Committee in the fourth quarter of this year for a process exploring this option. Moving to a new compensation system — and even simply updating the existing DBM one so that can function as requested by Resolution 1951 — will require a budget amendment. 67: Staff strongly suggests that the City moves forward with researching and implementing a new classification and compensation system. Staff's recommendation is to move to a market -based system in 2020 that better allows for this policy to be implemented with transparency with the non -represented employees as well as our labor partners. RECOMMENDATION Staff is seeking answers to the questions raised above and will return to the next Finance Committee meeting with the full analysis discussed above. Recommendation• Implement the new market -based non -represented compensation system that will identify more accurate lob classifications and compensation levels. ATTACHMENTS Resolution 1951 Resolution 1796 (repealed by Resolution 1951) DCouncil Agenda ItemslHuman Resources12019 NonRep FC Oct 28\2019 Non Rep Memo Final —Oct 28.docx 115 INFORMATIONAL MEMO Page 6 Comparable Cities per Resolution 1951 AV per Billion % of Tukwila's AV Snoqualmie 3469 51 % Mill Creek 4128 62% Lake Stevens 4335 65% Des Moines 4356 65% Mukilteo 5129 77% Puyallup 6261 94% Tukwila 6685 100% Lakewood 6929 104% Lynnwood 7015 105% Marysville 7986 119% Edmonds 10223 153% Federal Way 11393 170% Bothell 11415 171 % Auburn 11435 171% Issaquah 11567 173% Non -Represented Position Benchmarks Position Title Assistant to the Chief Assistant to the Director Deputy City Clerk DBM Band/Grade B22 B23 B23 Executive Coordinator IT Systems Administrator C41 C41 Human Resources Analyst C42 IT Systems Engineer C43 Records Governance Manager/City Clerk D61 Building Official Municipal Court Administrator D61 D63 Deputy Public Works Director/City Engineer D72 Deputy Police Chief E82 DCD Director E83 Finance Director E83 Parks & Recreation Director E83 Human Resources Director E83 Police Chief E91 Public Works Director E91 City Administrator F102 116 ZACouncil Agenda Items\Human Resources12019 NonRep FC Oct 28\2019 Non Rep Memo Final —Oct 28.docx INFORMATIONAL MEMO Page 7 UPDATE: October 23, 2019 After the meeting on October 14 2019 the Finance Committee wanted a historical look back as to why the DMB system and potentially the AWC survey are no longer valid solutions for classification and compensation. The DBM system is a good system for internal equity with our labor partners, as well as, in determining iob specifications in relation to other iob classes i.e. in the case of reclassifications, it maintains equity amongst the other bands and generally maintains stability within the non - represented staff, based on decision authority and responsibility. However, there is also the negative approach to external equity and performing a true market analysis. As discussed in the previous committee meeting the DBM pay scale is determined using a proprietary regression analysis which determines the band average top wage to market on a linear line. If the whole of the non -represented staff were at market, the analysis would show an average at +/- 0.00%. Obviously not all of are lobs are the same within market, so the regression analysis has variations that try and determine market. Resolution #1951 addresses the changes to salary in a market year, but I want to point out that the regression analysis and market has a distinct variation: • The B23 band market based on the regression, has that band over market by 15.60%, however in a true market the Deputy City Clerk is only 1 % over market based on our comparators within our AV. • On the other end of the spectrum the F102 band (City Administrator position) according to the regression analysis is under market by 4.44%, but according to our AV comps the position is under market 6.60%. To further exemplify this side of the analysis, the Police Chief position according to regression is 0.88% under market in the E91 Band, but in comparison with AV is 5.27% under market. Since 2009 there have been changes made to the DBM non -represented pay table that has not kept the regression analysis moving together. As discussed on October 14, 2019, the DBM system bands should move in conjunction with each other based on the market. If the system is changed from the recommended number increases it can and has changed the repression analysis with no regard for market. The difference in regression can first be linked back to the market survey staff conducted in 2009 for application in even numbered year 2010. Below is an excerpt from resolution #1700 which was ultimately adopted for 2010 Non -represented compensation: 11/16/09 Regular Council Action: MOTION CARRIED 7 0 TO ADOPT RESOLUTION NUMBER 1700. • Ranges A11 -D61 wages for 2010 are based on the outcome of the trendline analysis. Wage increases for these Decision Bands shall be as shown on the attached Salary Schedule, Attachment A, pages 1 and 8. • Ranges D62 -F102 wages for 2010 will be on a "Cost -of- Living Holiday" (COLA Holiday) meaning there will be no wage increases on January 1, 2010 for positions in these Decision Bands. Any consideration for wage increases during 2010 for positions in these Decision Bands will be based on the ability of the City of Tukwila to pay such increases through improved budget and economic factors. The Finance Department, Z:1Council Agenda ItemslHuman Resources12019 NonRep FC Oct 28\2019 Non Rep Memo Final —Oct 28.docx 117 INFORMATIONAL MEMO Page 8 working in conjunction with the Human Resources Department will, from time to time, review the ability of the City of Tukwila to provide wage increases to employees at these Decision Band levels during 2010. This is the first time that it was noted that the Non -represented salary table had wages frozen at the higher bands and a market adjustment applied to the lower bands resulting in the entire pay table not moving in unison to the regression line. This began to influence future internal compression and misalignment with market. The next major alignment issues occurred in 2012 below is the summary from resolution #1769 adopted by Council for 2012 Non -represented wages: • Positions within Decision Bands A11-C42 and D62-E91 will receive a 3% wage adjustment effective January 1 2012. Positions within Decision Band C41 will receive a 2% wage adjustment effective January 1 2012. D61 and F102 no wage adjustment. • A COLA increase will be given to positions within Decision Bands A11— F102 = 3.3% • Item B resolution 1769 — "The City Council will evaluate City Administration's recommendations regarding continued use of the DBM method in 2013." During this time frame multiple changes occurred. However, there was still a freeze at the top level and the mid -level of the DBM. These changes affect total market and the regression analysis. This is the second time that the top of the scale was frozen in a wage adjustment, however COLA was adjusted by 3.3%. Understanding that the more one side or the other gets an increase affects the overall regression analysis and can make one side or the other appear to be over market. In 2015 for 2016 Market here is the excerpt summary: Resolution 1879: • 1.5% adjustment across the board to Non -represented employees. • F102 additional increase of 2.5% to bring it into alignment with the market (below market by average of 4%). • In addition during the 3rd quarter of 2016, City Administration will meet with the City Council to review and discuss City Council Resolution No. 1796, specific to comparability related to non -represented employees' compensation and benefits. • No benefit changes. This change was specific to only the F102 band and did not keep up with previous increases across the DBM which continues to have an effect on Market with the repression analysis as explained earlier. Specifically, for the 2016 market Year the information memo to the Finance and Safety Committee stated that staff: • "noticed there was compression within specific bands and that a new line of regression especially for the upper bands would be necessary to correct this issue. Administration recommending that compression and other issues be addressed at a later date when the Council reviews Resolution 1796. Recommendation to review the resolution in 3rd uarter 2016." There have been no changes to date. 118 Z:1Council Agenda IlemslHuman Resources12019 NonRep FC Oct 28\2019 Non Rep Memo Final —Oct 28.docx INFORMATIONAL MEMO Page 9 Below are the wage increases for the Non -Represented staff since 2010: Non -Represented (NR) Wages Summary 2010 to Present: 2010 (from 2009 market survey) Bands A11-D61 receive 4.14% market increase based on market regression data. D62-F102 wages frozen. 2011 Wages frozen (economic conditions poor). 2012 Market regression showed D62-F102 below market and A11-D61 at market. Council engaged an outside consultant to validate the market data. Final outcome: Bands All-C42 and D62-E91 receive 3% market adjustment. C41 receives 2% market adjustment. D61-F102 wages frozen, no adjustment. 2013 COLA adjustment based on 90% CPI-W First Half = 2.61 % 2014 wages were frozen for all NR (Regression line did not recommend a wage increase based on the data). 2015 wages received a 2% flat increase. (90% CPI-W June = 1.98%, but 2% given to all NR for internal equity with represented groups.) 2016 Market adjustment of 1.5% provided across the board; Band F102 received additional increase of 2.5% to align it with market — (total of 4% to F102). 2017 COLA adjustment based on 90% of CPI-W June = 1.8% 2018 COLA adjustment based on 90% of CPI-W June = 2.70% 2019 COLA adjustment based on 90% of CPI-W June = 3.24% Throughout the years there have been discussions in committee and full Council in reference to non -represented wages. However, we are still in discussion on market and this is due to the fact that the DBM system no longer supports the City's needs in accordance with the Policy about market studies be completed every other year. The Combination of the market not being reflected by the regression analysis, and the inability to have multiple benchmark positions as described in previous committee meetings, is proof that the City needs to move away from the DBM system to a market based system. Market Based System Approach A market based compensation system will allow for benchmark matching for each Non - represented lob's specific duties and required knowledge and skills for an apples to apples comparison where that currently does not exist within the AWC salary survey data for many of our positions. A broader source of information will allow us to find benchmarks for unique Non - represented roles like the various analyst roles and the other technical and supervisory roles that make up the bulk of the middle of the DBM salary table. Market benchmarks can be sourced from existing salary survey data sources such as the comprehensive data gathered by Milliman which includes a public sector focus and provides a weighted average of the market for a more accurate market rate for each position being benchmarked. Staff is not making a recommendation on using Milliman at this time it is only provided here as an example. To move to a market based compensation system initial steps would involve a review of all Non -represented mob descriptions to establish iob classifications to match to market then a suitable market data source(s) would need to be identified and positions then priced in the market A compensation pay structure is then developed from the market data and positions are placed in the pay structure It is noted that internal equity does not always align with market and Z:ICouncil Agenda Itemsftman Resources12019 NonRep FC Oct 28\2019 Non Rep Memo Final —Oct 28.docx 119 INFORMATIONAL MEMO Page 10 non -benchmark positions should be slotted into grades with positions of similar worth to the organization. Staff has reached out to get some quotes on the cost to change to a true market -based system and is waiting to receive that information to propose a schedule and budget. It is anticipated this work could begin the first quarter of 2020, upon Committee and Council approval. In summary, the 2019 (for 2020) market data and analysis shows the average market for the Non -represented positions as a group to be above market, with noted anomalies as related in the discussion about the DBM system and market misalignment over the years. Staff's recommendation is to provide a 90% COLA to the Non -represented group of 1.53% to keep pace with the market and maintain internal equity with the increases the represented groups will receive in 2020. Regarding performance evaluation reviews, over the past five years the majority of non - represented employees have received their evaluation timely. In the past two years, since the implementation of the on-line Lanteria system all non -represented employees have received evaluations and are currently in the final stapes of timely review for 2019. Approval of the Finance Committee is being sought to forward these recommendations on to the November 12 2019 COW. ATTACHMENTS Resolution 1951 Resolution 1796 (repealed by Resolution 1951) 120 Z.ICouncil Agenda IlemslHuman Resources12019 NonRep FC Oct 28\2019 Non Rep Memo Final —Oct 28.docx City of Tukwila Washington Resolution No. c1.5 i 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. 1796. 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, and position rates for comparable jurisdictions, as well as internal equity considerations, should assist in guiding 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; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: WAWord Processing\Resolutions\Compensation policy for City employees 11-14-18 Page 1 of 3 121 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 of, 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 by Administration every year by the end of the third quarter 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 +75/-50% of Tukwila's annual assessed valuation, using the most current data from County Assessors, will be used to create the list of comparable jurisdictions for evaluation of salary information. A second criteria to be used to refine comparable jurisdictions is to only include cities with their own police department. 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. Positions that are 5% below the market and up to 10% above the market are considered competitive with the market and will receive a market adjustment the year the survey is to occur. Those positions more than 10% above the market will not receive an adjustment during the year the market adjustment is to occur and will warrant further evaluation. Documented justification of potential reclassification will be provided to the City Council for review and approval. If the documented justification results in reclassification, any adjustments will be made in alignment with City policy. WAWord Processin g\Resolutions\Compensation policy for City employees 11-14.18 Page 2 of 3 122 4. The cost -of -living adjustment (COLA) in odd -numbered years for non - represented employees shall be based upon 90% of the Seattle -Tacoma -Bellevue Consumer Price Index (CPI-VV) 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. Considerations for cost -of -living adjustment for odd - numbered years will be based upon internal equity with represented groups to determine if an adjustment is warranted. Administration will provide a written justification documenting that an adjustment is warranted for the City Council's review and approval prior to implementation. 5. 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. 6. The goal of the City is to where possible. An example of salary difference in pay between employees experience. Administration will provide adjustment is warranted for the City implementation. mitigate or avoid salary compression issues compression is when there is only a small regardless of their skills, level, seniority or a written justification documenting that an Council's review and approval prior to 7. The City Council shall review the compensation policy described herein on an annual basis to assess efficacy and make adjustments if warranted. 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. 1796 is hereby repealed. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKVVILA, WASHINGTON, at a Regular Meeting thereof this day of 2018. ATTEST/AUTHENTICATED: Christy O'Flahe-hy, MMC, City Clerk APPROVED AS TO FORM BY: Rachel B. Turpin, City Attorney Verna Seal, Council President Filed with the City Clerk: / H4J_? Passed by the City Council: , Resolution Number: WAWord Processing\Resolutions\Comperis a tion policy for City employees 11-14-18 Page 3 of 3 123 124 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 cast -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\ResolutionslCompensation policy for City employees 5-29-13 final SB:bjs Page 1 of 3 125 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.I. 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:1Word Processing\ResolutionslCompensation policy for City employees 5-29-13 strike-thru SB:bis Page 2 of 3 126 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,QF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of — ttAni Q _ , 2013. ATTEST/AUTHENTICATED: Christy O'Flah , MMC, City Cler APPROVED AS TO FORM BY: <��o Shell ersla , C orney Kathy Ho g rd Co 4§1 Presi ent Filed with the City Clerk: -15,- 9 Passed by the City Council: to- — Resolution Number: . 112Hb W:\Word Processing\Resolutions\Compensation policy for City employees 5-29-13 final SB:bjs Page 3 of 3 127 ffign. I F-0101 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, 2020. WHEREAS, per Resolution No. 1951, the City Council made a determination to review the non -represented compensation for even -numbered years and provide cost -of - living adjustments (COLAs) in odd -numbered years, and a market study was conducted in 2019; and WHEREAS, the market data and subsequent Decision Band Method (DBM) regression analysis revealed that the positions banded between B21 and C42 were over market by more than 10% and that position F102 was under market by 4.44%; and WHEREAS, City Administration recommends a 1.53% across the board increase to the Non -Represented Salary Structure effective January 1, 2020 to maintain internal equity with represented groups, authorization for funding to pursue and procure a market based non -represented compensation system and authorization for longevity increases for the Police Chief and Deputy Police Chief to eliminate internal compression; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Non -Represented Wage Plan. A. The 2020 wage schedule for non -represented employees shall increase by 1.53% across the board, and the Police Chief and Deputy Police Chief shall adopt the same longevity scale as the Police Commanders to eliminate internal compression. B. In addition, during the first quarter of 2020, City Administration will conduct a Request for Proposal (RFP) for a new market -based classification and compensation system for non -represented staff. W:\Legislative Development\Non-Represented Employees Compensation-2020 11-1-19 JCP:bjs Review and analysis by Barbara Saxton Page 1 of 2 129 Section 2. Non -represented Salary Schedule, Benefits Summary and Longevity Pay Plans. A. The "Non -Represented Salary Schedule — 2020," Attachment A hereto, is approved, effective January 1, 2020. B. The "Non -Represented Employee Benefits — 2020," Attachment B hereto, is approved, effective January 1, 2020. C. The "Longevity Pay Plan for Non -Represented Employees — 2020," Attachment C hereto, is approved, effective January 1, 2020. D. The "Longevity Pay Plan for Police Management Positions (Police Chief and Deputy Police Chief)," Attachment D hereto, is approved and effective January 1, 2020. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2019. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Rachel B. Turpin, City Attorney Attachments: Kathy Hougardy, Council President Filed with the City Clerk: Passed by the City Council: Resolution Number: - Attachment A, Non -Represented Salary Schedule — 2020 - Attachment B, Non -Represented Employee Benefits — 2020 - Attachment C, Longevity Pay Plan for Non -Represented Employees — 2020 - Attachment D, Longevity Pay Plan for Police Management Positions (Police Chief and Deputy Police Chief) W:\Legislative Development\Non-Re presented Employees Compensation-2020 11-1-19 JCP:bjs Review and analysis by Barbara Saxton Page 2 of 2 130 Attachment A (Page 1 of 3) City of Tukwila Non -Represented Salary Schedule - 2020 Classification Title I Job Title an e Office Technician Human Resources Technician B21 Office Specialist IF Assistant to the Chief B22 Administrative Assistant Deputy City Clerk B23 11 Assistant to the Director Executive Coordinator I I Executive Coordinator C41 Program Coordinator Information Technology Systems Administrator C41 Management Coordinator C42 Management Analyst Council Analyst C42 Human Resources Analyst Parks & Recreation Analyst Public Works Analyst Public Safety Analyst Program Administrator Economic Development Liaison C43 ITS stems Engineer Project Manager 17 Community Engagement Mana er C51 Program Manager Building Official D61 Communications/Government Relations Manager Senior Manager Police Support Operations Technology Integration Manager Records Governance Manager/CityManager/City Clerk Administrative Manager Development Manager D62 Maintenance Operations Manager Assistant Director Deputy Community Development Director D63 Deputy Finance Director Municipal Court Administrator Department Manager Assistant Fire Chief D72 Deputy Public Works Director/Ci Engineer Department Administrator Economic Development & Strategic Planning E81 Manager Deputy Police Chief Deputy Police Chief E82 131 Attachment A (Page 2 of 3) City of Tukwila Non -Represented Salary Schedule - 2020 Classification Title Job Title an e Department Human Resources Director E83 DCD Director Finance Director Technology Services Director Parks & Recreation Director Department for Fire Chief E91 Police Chief Public Works Director Deputy City Administrator Ci Administrator City Administrator F102 1. Title Table Revised: 09/23/2019 132 Attachment A (Page 3 of 3) Non -Represented Salary Structure (Monthly) - 2020 2020 Nan -Represented Salary Structure (Monthly) DBM (Minimum) Rating Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 All 1 4,380 4,517 4,656 4,792 4,928 Al2 4,727 4,878 5,028 5,176 5,323 A13 5,086 5,242 5,402 5,561 5,718 B21 5,312 5,511 5,713 5,910 6,114 B22 5,658 5,870 6,083 6,296 6,510 B23 5,999 6,225 6,451 6,675 6,905 B31 1 6,297 6,573 6,848 7,124 7,399 B32 6,799 7,097 7,396 7,694 7,993 C41 7,004 7,282 7,562 7,844 8,125 8,405 C42 7,397 7,695 7,991 8,287 8,583 8,883 C43 7,727 8,036 8,347 8,656 8,964 9,277 C51 7,978 8,335 8,694 9,0541 9,410 9,773 C52 1 8,528 8,911 9,295 9,6791 10,064 10,367 D61 8,437 8,858 9,281 9,7051 10,126 10,545 D62 8,588 9,015 9,445 9,873 10,304 10,731 D63 8,888 9,333 9,778 10,224 10,668 11,111 D71 9,093 9,590 10,090 10,588 11,085 11,586 D72 9,543 10,063 10,586 11,106 11,630 12,152 E81 9,643 10,125 10,609 11,088 11,606 12,126 12,623 E82 9,998 10,500 11,000 11,501 12,004 12,506 13,005 E83 10,291 10,808 11,320 11,8371 12,351 12,866 13,382 E91 10,650 11,183 11,716 12,251 12,783 13,317 13,850 E92 11,089 11,646 12,203 12,757 13,313 13,870 14,425 F1O1 11,536 12,112 12,688 13,268 13,847 14,421 14,999 F1O2 1 11,688 12,272 12,858 13,445 14,029 14,614 15,199 2020 salaries reflect 1.53%COLA. 133 134 Attachment B (Page 1 of 2) Non -Represented Employee Benefits - 2020 Social Security (FIC& Social Security benefits shall be provided as contained in Section 2.52.010 of the Tukwila Municipal Code (TMC). State -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. 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 2020 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 2020 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. Vision/Optical: The City shall provide 100% of the 2020 premium for the regular full-time employees and all dependents under the City of Tukwila self -insured vision plan for vision benefits. 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. 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). 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 (HRANEBA): VEBA benefits shall be provided as contained in Resolution No. 1445 and as amended. 135 Attachment B (Page 2 of 2) Non -Represented Employee Benefits - 2020 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. Annual leave shall accrue on the employee's anniversary date in accordance with the following schedule: NON -REP YEAR PAY PERIOD ACCRUAL ANNUAL ACCRUAL 0-6 MONTHS 0.00 48 7-24 MONTHS 4.00 96 3 5.00 120 4 5.00 120 5 5.00 120 6 5.34 128 7 5.34 128 8 5.67 136 9 5.00 144 10 6.34 152 11 6.67 160 12 7.00 168 13 7.34 176 14 7.67 184 15 8.00 192 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. 136 Attachment C Longevity Pay Plan for Non -Represented Employees - 2020 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 $ 200 137 Attachment D Longevity Pay Plan for Police Management Positions (Police Chief, Deputy Police Chief ) The monthly longevity percentage rates shall be as follows for the Police Chief and the Deputy Police Chief. Completion of 10 years 3 % Completion of 15 years 5 % Completion of 20 years 7% Completion of 25 years 10% . r - 1 . City Council Finance Committee FINANCE COMMITTEE Meeting Minutes October 28, 2019 - 5:30 p.m. - Hazelnut Conference Room, City Hall Councilmembers: Thomas McLeod, Chair; Verna Seal, De'Sean Quinn Staff: David Cline, Vicky Carlsen, Jay Wittwer, Eric Drever, Juan Padilla, Wynetta Bivens, Gail Labanara, Tony Cullerton, Aaron Williams, Laurel Humphrey CALL TO ORDER: Chair McLeod called the meeting to order at 5:30 p.m. I. PRESENTATIONS II. BUSINESSAGENDA A. Tax Levy Legislation Staff is seeking Council approval of two annual ordinances relating to property tax: one that would increase the City's Regular PropertyTax Levy from 2019, and one that would levy general and excess property taxes. Accordingto the King County Assessor, the projected assessed value for Tukwila is $7,329,542,191. The ordinance to set the general tax levy also includes the excess levy related to the Public Safety Plan, which will be assessed as long as the bonds are outstanding. The total excess levy requirement for 2020 is $3,450,000 with an approximate levy rate of $0.47 per thousand. The maximum allowable levy is estimated to be $3.50180, but due to the 1% limitation, the preliminary levy rate is estimated to be $2.23978. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 12, 2019 COMMITTEE OF THE WHOLE. B. Non-Rearesented Emalovees' Comaensation Staff is seeking Council approval of a 20201.53% cost of living increase for the non -represented employee group to keep pace with the market and maintain internal equity with the represented employee group. Staff also recommends movingto a market -based compensation system as the decision band methodology (DBM) no longer supports the Council's policy and is inadequate with regard to regression analysis and its inability to have multiple benchmark positions. Committee members asked clarifying questions and expressed support for the proposal. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 12, 2019 COMMITTEE OF THE WHOLE. ��