HomeMy WebLinkAboutCOW 2022-11-14 Item 5J - Discussion - 2023-2024 Non-Represented Employees Market and Compression StudyCOUNCIL AGENDA SYNOPSIS
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ITEM INFORMATION
STAFF SPONSOR: RACHEL BIANCHI
ORIGINAL AGENDA DATE: 11/14/22
AGENDA ITEM TITLE Non -Represented Employees Market & Compression Study
CATEGORY
11
Mtg
Discussion
Date 11/14/22
❑ Motion
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❑ Resolution
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❑ Ordinance
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❑ Bid Award
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❑ Public Hearing
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❑ Other
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SPONSOR ❑ Council ❑ Mayor
11
Admin Svcs ❑ DCD ❑ Finance ❑ Fire ❑ P&R ❑ Police ❑ PW
SPONSOR'S In 2019, Council approved a market study for non -represented staff per Resolution 1951,
SUMMARY however the study did not proceed as planned in 2020 due to pandemic -related budget
reductions. The proposed 2023-2024 budget includes funding for the non -represented
staff market and compression study to maintain alignment with Resolution 1951.
REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety
❑ LTAC ❑ Arts Comm.
DATE: 11/14/22 COMMITTEE
LI
❑
Finance & Governance ❑ Planning & Community Dev.
Parks Comm. ❑ Planning Comm.
CHAIR: QUINN
RECOMMENDATIONS:
SPONSOR/ADMIN. Administrative Services
COMMITTEE Discussion only
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$ $
Fund Source:
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
11/14/22
MTG. DATE
ATTACHMENTS
11/14/22
Informational Memorandum dated November 7, 2022
Informational Memorandum dated October 23, 2019
Resolution 1951 (Compensation Policy)
209
210
W
i City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance and Governance Committee
FROM: Rachel Bianchi, Deputy City Administrator
CC: Mayor Ekberg
DATE: November 7, 2022
SUBJECT: Non -Represented Market and Compression Study
ISSUE
Included in the proposed 2022-2023 budget is a market and compression study to address non -
represented staff compensation.
BACKGROUND
In 2019 the City Council approved a market study for non -represented staff in line with the
Council's adopted Compensation Policy, Resolution 1951. The study was to be conducted in
2020. Due to pandemic -related budget reductions, this study was not conducted and the
funding for the study removed from the budget. Since that time, contractual agreements have
also led to compression with the Police Department and other positions.
DISCUSSION
Non -represented staff compensation has not been systematically studied in at least ten years in
the City of Tukwila. In 2019 the City Council indicated a desire to move non -represented salary
from the Decision Band Method (DBM) to a market-based system, as well as to
comprehensively look at all non -represented salary and specifically not take an incremental
approach. Over the years, tweaks to the DBM system have "broken" the system, resulting in
very different jobs and responsibilities located within the same band. This has made traditional
methods of benchmarking based on the AWC not possible for many non -represented positions,
particularly those currently in the lower bands of the DBM system. In fact, partially due to the
problematic nature of the band system, the 2019 benchmark analysis showed — as a group. —
the lower bands of the DBM system were over market and the highest bands under market.
Because of the problematic nature of the DBM system, the Administration has been unable to
provide the Council with a benchmark or market study as outlined in Resolution 1951.
This analysis in 2019, the problematic nature of the current system and the Council policy to
have non -represented positions at market, led to the Council's decision to move forward with a
market study in 2020, which, as stated above, was cut due to the pandemic -related budget cuts.
Without a significant refresh of our non -represented compensation system, the City is not able
to provide a true market-based analysis of non -represented compensation. The study was
contemplated to be completed in the first quarter of 2020 and applied to 2020 salaries for non -
represented positions found to be under market.
Since that time, staff represented by the Teamsters Local 763 have undergone a market study
and, where shown to be below market, those positions' compensation was increased and
applied retroactively. Human Resources is currently finishing the study for the
Professional/Supervisory and Maintenance and Trades units and the contractually obligated
retroactive payments to 2021 will be included in the 2023 budget amendment. The other two
units — Admin/Tech and Senior Program Managers — were addressed in 2021 with retroactive
payments to 2019.
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212
INFORMATIONAL MEMO
Page 2
As a part of the proposed 2023/2024 budget, included is funding for the non -represented market
and compression study that was supposed to be complete in 2020. In order to maintain
alignment with the Council's adopted Compensation Policy, Resolution 1951, which includes
"internal equity considerations," the proposed budget ordinance contains a retroactive payment
to 2020 to any non -represented position found to be below market and/or compressed due to
recent contractual obligations and still employed at the City when the study is complete.
RECOMMENDATION
For information and discussion
ATTACHMENTS
Non -Represented Employee Compensation memo dated October 23, 2019
Compensation Policy, Resolution 1951
https://tukwilawa-my.sharepoint.com/personal/rachel_bianchi_tukwilawa_gov/Documents/nonrep comp memo 111422.docx
z City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
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 AWG 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.
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INFORMATIONAL MEMO
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1. 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.
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INFORMATIONAL MEMO
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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 regression 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.
Average %
Difference -5.57%
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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%
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
$86.60
1.61%
F102
15364
88.64
$86.37
$90.21
4.44%
Average %
Difference -5.57%
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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 regression.
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
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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.
B7: 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 job classifications and compensation levels.
ATTACHMENTS
Resolution 1951
Resolution 1796 (repealed by Resolution 1951)
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INFORMATIONAL MEMO
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Comparable Cities per Resolution 1951
Non -Represented Position Benchmarks
Position Title DBM Band/Grade
Assistant to the Chief B22
Assistant to the Director B23
Deputy City Clerk B23
Executive Coordinator C41
IT Systems Administrator C41
Human Resources Analyst C42
IT Systems Engineer C43
Records Governance Manager/City Clerk D61
Building Official D61
Municipal Court Administrator 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
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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 DBM Band/Grade
Assistant to the Chief B22
Assistant to the Director B23
Deputy City Clerk B23
Executive Coordinator C41
IT Systems Administrator C41
Human Resources Analyst C42
IT Systems Engineer C43
Records Governance Manager/City Clerk D61
Building Official D61
Municipal Court Administrator 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
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INFORMATIONAL MEMO
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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 job specifications in relation to other job 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 jobs 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 regression
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 All -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,
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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 Al 1-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 All— 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 regression 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
quarter 2016."
There have been no changes to date.
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INFORMATIONAL MEMO
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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 A11 -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 stili 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 job'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 job descriptions to establish job 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
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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 stages 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)
Z:\Council Agenda Items\Human Resources12019 NonRep FC Oct 28\2019 Non Rep Memo Final_Oct 28.docx
City of Tukwila
Washington
Resolution No. / 957
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:
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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.
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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 -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. 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 mitigate or avoid salary compression issues
where possible. An example of salary compression is when there is only a small
difference in pay between employees regardless of their skills, level, seniority or
experience. Administration will provide a written justification documenting that an
adjustment is warranted for the City Council's review and approval prior to
implementation.
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 TUKWILA, WASHINGTON,
at a Regular Meeting thereof this .7N day of y 1o'p�,,, bi ,-- , 2018.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk Verna Seal, Council President
APPROVED AS TO FORM BY:
Rachel B. Turpin, City Attorney
Filed with the City Clerk: /
Passed by the City Council: I
Resolution Number: n.51
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