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HomeMy WebLinkAbout2012-03-20 Finance and Safety MinutesCity of Tukwila Finance and Safety Committee FINANCE AND SAFETY COMMITTEE Meeting Minutes March 20, 2012 5:15j). m C'on ferenee Roon7 PRESENT Councilmembers: De' Sean Quinn, Chair; Dennis Robertson and Kate Kruller Staff: Mayor Haggerton, David Cline, Jennifer Ferrer -Santa Ines, Christy O'Flahertv, Joyce Trantina, Maio Miotke, Gail Labanara, Bob Giberson and Kimberly Mattj CALL TO ORDER: Chair Quinn called the meeting to order at 5:16 p.m. *Committee Chair Quinn amended the agenda, and the Committee concurred, to reflect the addition of Item C: Non- Relnresentecl Ernhlovees Cornl)ensation Discussion as listed beloAv. I. PRESENTATIONS No presentations. II. BUSINESS AGENDA A. Sales Tai and Miscellaneous Revenue Reaort: 2011 Fiscal Year Staff presented the ftill rear sales tai and miscellaneous revenue report for 2011. Overall, revenues came in slightly over 8% for the year as compared to budget. This increase includes various sales tai revenue mitigation payments. Gambling tai revenue is down by_ =40% due to non payment by casino, and admissions tax is down by 19 Committee Member Robertson requested that a column be added to Schedule L Sales Tai (included in the agenda packet) that reflects the 2010 sales tai revenue from construction in order to attempt to identify where the decline in sales tai revenue is as compared to 2010. Committee Member Robertson is interested in looking at long -term trends. Staff stated they were planning to include this information for 2011 and 2012 to see such comparisons; however they provide construction numbers for 2010 per the request. INFORMATION ONLY. B. Proaosed Consent Agenda Process Staff presented a proposed consent agenda process for improving meeting efficiency based on a discussion regarding consent agendas at the Council Retreat in Febnuai The proposed process outlines options for placing items on a consent agenda, and lists items that could be placed on the agenda as well as items that would not be eligible for consent agenda consideration. After discussion, the Committee Members suggested a combination of Option 1 and Option 2 which are outlined in the informational memo included in the Committee agenda packet. Option 1 would be utilized for non controversially items that are purely administrative in nature. Based on this suggestion, the Committee recommends implementing a consent agenda by using the following process: An iten7 that is non contr'over'sial aml strictly aA lninistrative in nature can be hlaeeAl &reetly on the consent agemla of a Regular meeting by recorrrrnenAI(Ition of staff arul hr`ior ahhroval of the Council Pres0ent. An item that rnav be of greater° interest to the Council, but is still non controversial, can be hlacecl on the consent (gencla of a Regular meeting With the uhhrohr °iate Cornrnittee reeonwwmlation an4l subsequent Council Presi4lent al)hroval. Committee Members expressed the importance of understanding that in this proposed process, any Councilmember can request an item be removed from the consent agenda at a Regular meeting, and that item will then be discussed under nevv business later in the meeting. UNANIMOUS APPROVAL. FORWARD TO MARCH 26 COW FOR DISCUSSION. Finance Safety Committee Minutes March 20, 2012 Paae 2 C. Non Represented EmploN "ees Compensation Discussion At the Council Work Session on Monday, March 19, 2012, there vvas Council consensus to send the discussion of the 2012 Wage and Benefit Package for Non Represented Employees and appropriate policy considerations for City- -ivide compensation to today's Finance Safety Committee meeting. Committee Chair Quinn began the discussion by proposing a timeline for the Committee to review and make a recommendation to the full Council regarding this item. He suggested the follolving: March 20 Today's Committee Meeting Discussion of ideas that could lead to potential proposals the Committee will consider and discuss at the next Committee meeting for ultimate recommendation to the fiill Council. April 3 Finance do Sgfety Committee Meeting Reviesy and discuss proposals and make a recommendation to full Council for consideration. April 9 COW Full Council discussion of Finance Safety recommended action. Recognizing the timeliness of continuing discussion and review of this item, Committee Members agreed to adhere to this timeline. Additionally, Committee Chair Quinn requested this item be the only agenda item on the April 3 Finance Safety Committee meeting with the exception of any contract that may be forthcoming relative to the Strategic Plan. Committee Chair Quinn requested that, as a result of tonight's meeting, each Committee Member provide him with a suggested proposal /recommendation, via e -mail, for addressing this item by Tuesday_ March 27, 2012, so that he can work with Council staff in preparation of an informational memo to be included in the April 3 Committee agenda packet. Committee Chair Quinn then set the criteria and parameters for what each recommendation should, at a minimum, include: A proposal reeon7n7endation should be based on a strong policy eon7ponent that draws fron7 the report and findings presented by Mr. Ardrey at yesterday's Council Work Session. It should also address policy related to the ongoing discussion surrounding City-wide en7ployee eon7pensation. A discussion followed w herein Committee Members offered suggestions for policy considerations and objectives that could be included in a potential recommendation to address this item. Belovv is a summaiN of the ideas offered for discussion by each Connnittee Member. Robertson Use a market -based method to calculate wage and benefit packages. The decision band methodology can cause problems because it compares positions that are not thought to be common. In order to stay within a competitive salai range, only use the decision band when there is no market -rate comparison for a position. As offered in Mr. Ardrey's report, likes the use of selecting comparable cities based on assessed valuation. Comparable cities should be a fixed set of cities and the highest and losyest compensation samples should not be included in the average calculations for each position. Positions syith salaries falling belosy comparables should be brought up to the comparable market immediately. Although compensation would not be reduced, positions above the comparables should not receive additional compensation increases until the position is in line syith the comparable market. Do not treat non represented employees as a v, instead look at each position and how it compares to the market. Once the market survey establishes a "top" salary for each position, apply a 90% CPI increase. This is because the swi ey data is one year old. Finance Safety Committee Minutes Robertson (contina ed) March 20, 2012 Paae 3 In consideration that not evei situation is the same, if Administration feels that there is a case for a position being above or below the market, then written justification should be provided. Consider medical benefits (if they are above comparables) to be used as an additional compensation benefit. Kruller Be consistent in treatment of employees City_ -wide with the emphasis on presenting a proposal that is fair, equitable and defensible. Agrees with Committee Member Robertson's comments, except with how to proportion the decision band /market surrey ratio in identifying the proper wages for Tukwila employees. Perhaps utilize a hybrid of compensation methodology by decision banding first and then applying market rates to fine tune. Review /study Citv offered benefits, including medical, and adjust as necessai Consider use of performance factors in determining salaiN increases (i.e.: part COLA part bonus wage process look at City of Seattle Compensation Plan). Quinn Consistency is key. Utilizing the decision -band methodology makes sense as well as providing an opportunity for the justification of unique positions. In the short-term, utilize the information provided in Mr. Ardrey's report to bring salaries up to where they need to be. Look for and identify employee incentives. Create a policy that clearly articulates how the City respond to and resolve decisions related to wage and benefit packages in a good economy and in a bad economy One of the values of Mr. Ardrey's report is that it indicates that the Citv's current salary structure is not significant1v out of range. In summaiv, Committee Chair Quinn would like the Committee to consider a total of four potential proposals/recommendations to address the 2(_)12 Wage and Benefit Package for Non Represented Employees and appropriate policy considerations for City -wide compensation at the April 3 Committee meeting. Two of these recommendations are outlined below, and the remaining two will be submitted to Chair Quinn by Committee Members Robertson and Kruller. Proposal 1: Mayor's Recommendation Based on the statements of Resolution No. 1567, approve a resolution regarding the 2(_)12 Wage and Benefit Package for Non Represented Employees. Includes a 3% increase to non represented positions A, B, C and D61 level employees, a market adjustment for D62- F102 level employees and a benefit reduction of City medical contributions from 1l_)% to Proposal 2: 2% Increase across the Board With the understanding that this proposal will include more details for discussion at the April 3 Committee meeting, this proposal will essentially be the same as Proposal 1, with the exception that a 2% increase and market adjustment would be given to all positions /levels in the non represented employee group. Council would then take the next year to engage in a wage and benefit policy discussion including responding to and resoling decisions related to wage and benefit packages in a good economy and in a bad economy. Finance Safety Committee Minutes March 20, 2012 Paae 4 The Committee agreed that the Council has an issue that needs to be addressed and resoled in a timely manner. They also agree that any recommendation forthcoming from the Finance Safety Committee to the full Council must be acceptable to a majority of Councihmmbers. III. MISCELLANEOUS Meeting adjourned at 6:44 p.m. Next meeting: Tuesday April 2012 5:15 p.m. Conference Room 4' r Committee Chair Approval Minutes by KAM.