Req. # SUBSTITUTE Manager; thereof. for. issues, and. compression. issues, Section -1- Police Officer Police Sergeant Police Detective 1
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1 Req. # SUBSTITUTE ORDINANCE NO AN ORDINANCE relating to the Compensation Plan; amending Chapter 1.12 of the Tacoma Municipal Code to implement rates off pay and compensation for employees represented by Tacoma Police Union, Local 6, IUPA; provide for a salary adjustment for the classification of City Manager; and provide for the effective dates thereof. WHEREAS, in 2011, the Tacoma Policee Union, Local 6, agreed to a wage reduction of 1 percent for a VEBA program under the terms of a Memorandumm of Agreement which expired December 31, 2014, requiring a wage adjustment retroactive to January 1, 2015, to estore the 1 percent wage reduction, and WHEREAS Ordinance No , passed on December 9, 2014, provided for market and compression-based wage adjustments for non-represented classificationss that were determinedd to be below market or determined to have compression issues, and WHEREAS the salary range for the classification of City Manager (CSC 0747) has been identified as below market, with compression issues, requiring a wage adjustment up to a cap of 100 percent retroactive to February 13, 2015; Now, Therefore, BE IT ORDAINED D BY THE CITY OF TACOMA: Section 1. That Section of thee Tacoma Municipal Code is hereby amended retroactive to January 1, 2015, to read as follows: Code A Job Title Police Officer Police Sergeant Police Detective Ord sub.doc-CAC/bn -1-
2 1 Code A Job Title 4202 Police Officer Police Sergeant Police Detective Section 2. That Section of thee Tacoma Municipal Code is hereby amended, effective retroactive to February 13, 2015, to read as follows: Code 0747 A A Job Title City Manager 1A A 1B B 1C C 1D D 2A A 2B B A 5B 5C 5D 6A Code 0747 A A Job Title City Manager 1A B C D A B A 3B 3C 3D 4A 4B A 5B 5C 5D 6A C 2D C 4D C 2D C 4D Section 3. That Section 1 of this ordinance shall become effective retroactive to January 1, That Section 2 of this ordinance shall become effective retroactive to February 13, Passed Attest: City Clerk Approved as to form: Deputy City Attorney Mayor Ord sub.doc-CAC/bn -2-
3 City of Tacoma City Council Action Memorandum TO: FROM: COPY: T.C. Broadnax, City Manager Joy St. Germain, Director, Human Resources Karen Short, Human Resources Senior Analyst City Council and City Clerk SUBJECT: Pay & Compensation Ordinance March 17, 2015 DATE: March 16, 2015 SUMMARY: An ordinance amending Chapter 1.12 of the Tacoma Municipal Code, Compensation Plan, to implement rates of pay and compensation for employees represented by the Tacoma Police Union, Local 6, IUPA, retroactive to January 1, 2015, and for the non-represented executive classification of City Manager, retroactive to February 13, STRATEGIC POLICY PRIORITY: The requested ordinance aligns with the City Council s Strategic Policy Priority to encourage and promote an open, effective, results-oriented organization by providing for wages and working conditions for non-represented classifications, and represented employees as negotiated in good faith with the Tacoma Police Union, Local 6, IUPA. BACKGROUND: The ordinance will provide for the implementation of a Letter of Agreement (LOA) as negotiated between the City of Tacoma and the Tacoma Police Union, Local 6, IUPA, on behalf of the employees represented by said union. In 2011, the Tacoma Police Union, Local 6, agreed to a wage reduction of 1 percent for a VEBA program. Per the terms of the Memorandum of Agreement, each active LEOFF 2 bargaining unit member would therefore, receive 99 percent of the base wage rate. The ordinance provides for the restoration of the 1 percent wage reduction for the VEBA program retroactively to January 1, The ordinance will also address the salary range for the classification of City Manager (CSC 0747), which was been identified as below the market, with compression issues, and will be given a wage adjustment up to a cap of 10 percent. The City Manager classification was not included in Ordinance 28263, passed on December 9, 2014, which provided for market and compression based wage adjustments for non-represented classifications that were determined to be below the market, or determined to have compression issues. Ordinance addressed non-representative compensation in the following manner: 1. Non-represented classifications identified as below the market with no compression issues received a market-based wage adjustment, up to a cap of 6 percent. 2. Non-represented classifications identified as below the market with compression issues received a market-based adjustment, up to a cap of 10 percent. 3. Non-represented classifications identified as above the market did not receive an increase in ISSUE: Authorization is required to implement rates of pay and compensation for represented and nonrepresented employees. Revised: 03/18/2014 1
4 City of Tacoma City Council Action Memorandum RECOMMENDATION: It is recommended that the City Council take the necessary action to approve this legislation. FISCAL IMPACT: Fiscal impact information is as provided by the Management and Budget Office. Revised: 03/18/2014 2
5 ., am 'Ia< :OIllCl City of Tacoma Memorandum To: From: Joy St. Germain, Human Resources Director f',jradd Wille, Budget Director Date: March 3, 2015 Subject: Fiscal Impact of Local 6 Tacoma Police Union 1% VEBA Restoration & Market~ based Wage Adjustment for City Manager Classification Local 6 Tacoma Police Union 1% VEBA Restoration Overview In 2011, the Local 6 Tacoma Police Union agreed to forego 1% of their salary effective January 1, 2013 as part of a VEBA Retirement Incentive program, per a Memorandum of Agreement. Each LEOFF 2 member of the bargaining unit would, therefore, receive 99% of the base wage rate. Effective January 1, 2015 the 1% wage reduction will be restored allowing each active member of the bargaining unit to receive 100% of their base wage rate. Financial Impact Below is a financial impact of the restoration of the 1% VEBA wage reduction retroactive to January 1, Fund/Department FTE Incremental Expense General Fund $596,267 General Government Utilities Other General Government Funds ,855 Tacoma Public Utilities Total $644,123 Funding for 2015~2016 The total estimated cost in for salaries and benefits for Local 6 Tacoma Police Union including the 1% restoration of the VEBA wage reduction discussed above is $644,123 ($596,267 General Fund, $47,855 other general government funds). Prepared by the Office of Management & Budget
6 City of Tacoma Memorandum Cost for the restoration of the 1% VEBA reduction to base wages is budgeted in , though wage negotiations continue. A comprehensive fiscal impact memo will be forthcoming upon ratification of the successor bargaining agreement. Market-based Wage Adjustment for City Manager Classification Overview On December 9, 2014 Ordinance passed which provided for market and compression based wage adjustments for classification determined to be below the market, or determined to have compression issues. The classification City Manager (CSC 07470) has been identified as below the market with compression issues and will be adjusted 10%. Financial Impact Effective February 13, 2015 the City Manager's base salary will be $243,318, or Step 40, resulting in a $7,945, or 3.38%, increase to t he employee's current base salary over the life of the new employment contract. Future base salary costs will be dependent on a future negotiated employment contract. Funding for The increased cost of the wage adjustment over the life of the new employment contract is included in the Biennial Budget. Prepared by the Office of Management & Budget
7 Memorandum TO: T.C. Broadnax, City Manager FROM: Joy St. Germain, Human Resources Director SUBJECT: Ordinance Disclosure DATE: March 16, 2015 On the agenda for City Council action on March 17, 2015, will be an ordinance to amend the Compensation Plan. This memorandum discloses the contents of the ordinance pursuant to Section of the Tacoma Municipal Code. Section 1: Amends Section to implement the provisions of a Letter of Agreement negotiated with the Tacoma Police Union, Local 6, I.U.P.A. This section provides for a wage increase for the LEOFF 2 bargaining unit members of 1 percent effective retroactive to January 1, In 2011, the Tacoma Police Union, Local 6, agreed to a wage reduction of 1 percent for a VEBA program. Per the terms of the Memorandum of Agreement, each active LEOFF 2 bargaining unit member received 99 percent of the base wage rate. The ordinance provides for the restoration of the 1 percent wage reduction for the VEBA program retroactively to January 1, 2015, per the terms of the Letter of Agreement. Section 2: Amends Section to implement a market-based wage adjustment for the classification of City Manager effective retroactive to February 13, The classification has been identified as below the market, with compression issues, and will be given a wage adjustment up to a cap of 10 percent. This classification was not previously included in Ordinance 28263, passed on December 9, 2014, which provided for market and compression based wage adjustment for classifications that were determined to be below the market, or determined to have compression issues. Ordinance addressed non-represented compensation in the following manner: 1. Non-represented classifications identified as below the market with no compression issues received a market-based wage adjustment, up to a cap of 6 percent. 2. Non-represented classifications identified as below the market with compression issues received a market-based adjustment, up to a cap of 10 percent. 3. Non-represented classifications identified as above the market did not receive an increase in Section 3: Provides for the effective dates. I would be happy to answer any questions you may have.
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