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Home My WebLink AboutFS 2013-05-21 Item 2B - Resolution - Compensation PolicyCity of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance & Safety Committee FROM: Stephanie Brown, Human Resources Director DATE: May 21, 2013 SUBJECT: City Compensation Policy ISSUE To repeal Resolution No. 1387, the City's existing policy on compensation for represented and non - represented employees. BACKGROUND It is the City Council and City Administrations' desire to repeal Resolution No. 1387, and to establish a new compensation policy to guide the development and application of the City's overall compensation programs for employees of the City of Tukwila. DISCUSSION Discussion of the attached Compensation Policy resolution. RECOMMENDATION The Council is being asked to consider this item at the May 28, 2013 Committee of the Whole meeting and approve at the subsequent June 3, 2013 Regular Meeting. ATTACHMENTS Draft Policy Resolution Resolution No. 1387 37 38 RAFT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ESTABLISHING A COMPENSATION POLICY FOR CITY OF TUKWILA EMPLOYEES AND REPEALING RESOLUTION NO. 1387. WHEREAS, the City believes that the purpose of a compensation program is to facilitate recruiting, retention, development and productivity of employees; and WHEREAS, the City desires to utilize standardized policies, procedures and processes, wherever possible, for compensating all employee groups, both represented and non - represented; and WHEREAS, the City recognizes that current economic conditions and forecasts, long -range City budget forecasts, position rates for comparable jurisdictions, as well as internal equity considerations should assist in guiding in the compensation of employees; and WHEREAS, the City has made a determination to, when economic conditions allow, review and adjust non - represented employee salaries via a market analysis to that of the average of comparable jurisdictions in even - numbered years, and to provide a cost -of- living (COLA) allowance in odd - numbered years; and WHEREAS, the City has made a determination to, when economic conditions and negotiations allow, provide represented employees with salaries that reflect the average of comparable jurisdictions; and WHEREAS, the City has made a determination to, when economic conditions allow, provide benefits to represented and non - represented employees that are slightly above the average of comparable jurisdictions; and WHEREAS, the City Council will participate in setting negotiation expectations and reviewing and approving represented employee group contracts; W: \Word Processing \Resolutions \Compensation policy for City employees 5 -9 -13 SB:bjs Page 1 of 3 39 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The following statements and processes are adopted for the purpose of guiding compensation programs for employees of the City of Tukwila. A. Information to be provided to the City Council. 1. For Represented Employees. A written presentation of current internal and local external public agency salary and benefit trends, including a salary and benefits market survey of comparable jurisdictions, as defined herein, will be provided to the City Council. This presentation must be made to the Council prior to the commencement of negotiations with the bargaining units regarding salary and benefits. The City Council and Administration will discuss represented employee group negotiation expectations, negotiating points, salary and benefit change floors and /or ceilings prior to the beginning and at appropriate points during negotiation sessions. 2. For Non - Represented Employees. A written presentation of current internal and local external public agency salary and benefit trends, including a salary and benefits market survey of comparable jurisdictions, as defined herein, will be provided to the City Council every year that a non - represented salary increase is due. Relevant Association of Washington Cities (AWC) data from the previous year's Washington City and County Employee Salary and Benefit Survey, for the comparable jurisdictions, will be used in the salary market survey. B. Compensation Policy. 1. All Puget Sound jurisdictions with +/ -50% of Tukwila's annual assessed valuation, based upon the Department of Revenue data, will be used to create the list of comparable jurisdictions for evaluation of salary information. It is desirable to use the same comparable jurisdictions for both represented and non - represented employee groups. 2. For non - represented employees, the City desires to pay the average salary for the particular pay scale, as derived from the comparable jurisdiction data described in Section B.1. If the City's pay scale for any classification does not represent the average of comparable salary ranges ( +1 -5 %), written justification must be provided to the City Council. For represented employees, the City desires to pay salaries that are competitive to the City's comparable jurisdictions. 3. The cost -of- living adjustment (COLA) in odd - numbered years for non - represented employees shall be based upon 90% of the Seattle- Tacoma - Bremerton Consumer Price Index (CPI -W) Average (June to June). It is desirable to calculate represented cost -of- living adjustments the same way, unless a different method is authorized by the Council. W: \Word Processing \Resolutions \Compensation policy for City employees 5 -9 -13 SB:bjs 40 Page 2 of 3 4. The goal of the City is to establish parity between represented and non - represented employees' salaries and 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. If the Administration determines that a deviation from the above process (in its entirety or for individual positions) is necessary, it will provide justification to the City Council for review and approval prior to the adoption of any process change. Section 2. Resolution No. 1387 is hereby repealed. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2013. ATTEST /AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Kathy Hougardy, Council President APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Resolution Number: Shelley M. Kerslake, City Attorney W: \Word Processing \Resolutions \Compensation policy for City employees 5 -9 -13 SB:bjs Page 3 of 3 41 42 City of Tukwila Washington Resolution No. 1387 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. 1271. WHEREAS, the Tukwila City Council finds it necessary and desirable to establish a compensation policy to guide the development and application of the City's overall compensation and benefit philosophy; and WHEREAS, the City Council has reviewed its compensation philosophy and reached a determination with regards to its application; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The following policy statements are adopted for the purpose of establishing and administering compensation programs for employees of the City of Tukwila: A. Intent of the System. The classification and compensation system of the City should encourage the selection and reasonable retention of qualified and productive employees in order to best serve the City. B. Competitive Position. The City should maintain a competitive position and ability to select and retain a competent, qualified and productive work force. The City's compensation system should reflect average compensation among the various employment markets in which the City competes for qualified labor. C. Employment. Salary ranges shall be periodically compared and established based on the geographic area from which each position is recruited. Positions shall be recruited from the local to the national base, depending on the level of position being recruited and on the availability and caliber of potential recruits in the local, regional or national area. D. Classifications. Classifications shall be based on the Decision Band method for the non - represented employees. Comparative analysis for all other positions shall be as determined by the Administrative Services Director based on internal and external factors inherent to the specific classifications. E. Salary. Market wages will be determined in relationship to similarly valued jobs in competitive employment markets. F. Salary and Benefit Mix. A mix of wages and benefits shall be provided based on a value equal to that of the average of the defined market. 43 G. Optional Benefits. Where feasible, optional cafeteria -style benefit options, above and beyond a base core of standard benefits, shall be developed which address the unique needs of the various types of employee classifications. Total benefits shall not exceed the average of the defined market. Section 2. Resolution No. 1271 is hereby repealed. PASSED BY THE CITY COUNCII92F THE CI�Y OF TUKWILA, WASHINGTON, at a regular meeting thereof this /6- day of 1997. ATTEST /AUTHENTICATED: g. det,a4x- ine E. Cantu, City Clerk APPROVED AS TO FORM: •SCE •F T • ITY ATTORNEY Filed with the City Clerk: Passed by the City Council: Resolution Number: X337 44 ouncil President