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HomeMy WebLinkAbout1994-083 Compensation and Benefits Plan for Management ORDINANCE NO 94- 83 AN ORDINANCE relating to City personnel, and amending the compensation and benefits plans for management, supervisory, and union - exempt personnel. WHEREAS, under Article II, Section 14 of the Yakima City Charter, City employees shall receive such salary or compensation as the City Council shall fix by ordinance to be payable at such times as the City Council shall determine, and WHEREAS, the City Council has determined that adjustments to Management Employee compensation will be made based upon the City's fiscal condition, and subject to the City's ability to pay together with satisfactory employee performance under the employee merit plan, and WHEREAS, the City Council desires to establish a standardized formula for Management Pay and Compensation Adjustments based upon the average of City Bargaining Unit compensation settlements, said Management Pay and Compensation Adjustment to be effective on January 1 of each calendar year unless rescinded or changed by action of the City Council, and WHEREAS, City Bargaining Unit compensation settlements are sometimes not resolved until after January 1 of the year to which the compensation adjustment applies, and WHEREAS, the City Council recognizes that due to delayed Bargaining Unit negotiations, the final average of all City Bargaining Unit compensation adjustments for a particular calendar year may not be precisely known until after January 1 of that year; and WHEREAS, the City Council recognizes that Management Employees will not be paid the full compensation for services provided to the City during certain periods of the year when Bargaining Unit compensation adjustments are unresolved due to delayed negotiations, and WHEREAS, the City Council of the City of Yakima desires to provide for retroactive payment of management employee compensation for such time periods when Management Employees are paid less than the full amount of compensation, and the Council recognizes that the incremental earnings of Management Employees to be paid retroactively once the final Bargaining Unit negotiations have been concluded shall be considered and deemed to be deferred earnings, and IP WHEREAS, the City Council desires to codify the minimum five percent salary s eparation between management and subordinate employee positions within the City workforce, and Page 1 (1s)ordimgmt comp2 rp December 15 1994 . WHEREAS, the City Council desires to establish a voluntary, employee -paid disability insurance program for Management Employees to be operated through • payroll deductions; and WHEREAS, the City Council desires to establish an additional step to the longevity plan for employees with twenty -four years of service, consistent with the provision currently in effect for the Police and Fire Bargaining Units, now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA. Section 1 A new section, Section 2 20 115 shall be codified in the City of Yakima Municipal Code as follows: "2.20.115 Management Pay and Compensation Definitions. The following definitions are established for computing Management Pay and Compensation Adjustments using the formula set forth in Section 2 20 116 of the City of Yakima Municipal Code. 1. 'Pay and Compensation Adjustment (PACA)' means the total annualized percentage change in the economic value of employee compensation and benefits, including, but not limited to, salary, longevity, paid leave, holidays, deferred compensation, and other forms of employee compensation, said change to be measured from one calendar year to the next succeeding calendar year 2. 'Management Employees' means all nontemporary employees in the following positions. • (a) Executive series, as listed in Section 2 20 100(B), (b) Management series, as listed in Section 2 20 100(B), (c) Executive support series as listed in Section 2 20 100(B), (d) Public safety management series, as listed in Section 2 20 110(E), excluding Fire Department Battalion Chiefs, (e). Union exempt civil service classes, as listed in Section 2 20 100(D) 3. 'Management PACA' means the Pay and Compensation Adjustment for Management Employees that is computed each calendar year using the formula set forth in Section 2 20 116 of the City of Yakima Municipal Code. 4 'Reference Year' means the current calendar year for which the Management PACA is computed and will become effective on January 1 5. 'Prior Year' means the calendar year immediately preceding the Reference Year 6. 'Bargaining Unit PACA' means the Pay and Compensation Adjustment for a recognized City of Yakima Employee Bargaining Unit, as approved for the Reference Year by formal action of the Yakima City Council. 7 'Average Bargaining Unit PACA' means the average of all Bargaining Unit PACAs that become effective during a particular Reference Year 8. 'Balancing Adjustment' means the positive or negative change in the Average Bargaining Unit PACA for the Prior Year, which change has occurred after computation of the Management PACA for the Prior Year due to delayed resolution of Bargaining Unit Page 2 11s)ord /mgmc comp2 rp December 15 1994 negotiations. This change must be incorporated into the computation of • the Management PACA for the Reference Year in order to achieve equality between the Management PACA and the Average Bargaining Unit PACA." Section 2 A new section, Section 2 20 116 shall be codified in the City of Yakima Municipal Code as follows. "2.20.116 Management Pay and Compensation Adjustments. A. Notice of Anticipated Management PACA. The City Manager or designee shall provide the City Council with written notice at least 30 days before the implementation date of the anticipated Management PACA based on the latest available projections using the Management PACA formula in subsection B below B Pay and Compensation Adjustment Formula. A Management Pay and Compensation Adjustment shall be computed as of January 1 of each successive Reference Year based upon the following formula. Management PACA = Average Bargaining Unit PACA + Balancing Adjustment The computed Management PACA shall be converted into dollars for each respective Management Employee Classification, and the amounts thereby derived shall be added to each respective Management 1111 Employee Salary Schedule effective on January 1 of the Reference Year, subject to change pursuant to subsection C below The Management Employee Salary Schedules as modified shall be annually codified in Section 2 20 110 of the City of Yakima Municipal Code. If the Balancing Adjustment is positive as of January 1 in a particular Reference Year, then Management Employees shall receive a lump sum payment as deferred earnings from the Prior Year equal to the incremental amount that would have otherwise been paid if Bargaining Unit negotiations had been resolved at the beginning of the Prior Year Effectiveness of Pay and Compensation Adjustments Management Pay and Compensation Adjustments, as computed in subsection B above, shall be effective on January 1 of each successive Reference Year, subject to the City Council's authority to cancel, decrease, increase, or otherwise change the Management PACA by adopting amendatory legislation at least 15 days before the Management PACA implementation date. D. Retroactive Payment of Deferred Earnings. In the event that there are no known Bargaining Unit PACAs as of January 1 of the Reference Year, due to unresolved Bargaining Unit negotiations, thereby yielding an Average Bargaining Unit PACA equal to zero, then computation of the Management PACA for that Reference Year shall be postponed and computed on June 30 of the Reference Year and paid retroactively to January 1 of the Reference Year The formula set forth in subsection B above shall be used for this June 30 computation. Under this circumstance, the City Council and Management Employees agree • that payment of the Management PACA is deferred until the June 30 computation During such six month deferral period, Management Employees shall be paid in accordance with the preceding year's Salary Schedule, but such compensation shall be deemed to be less than the Page 3 (1sord,mam[ comp2 rp December 15 1994 total compensation to be paid for the services provided during said deferral period. E. Satisfactory Performance Condition. A Management Employee shall receive the PACA provided for in this Section, conditioned upon satisfactory performance under the employee merit pay plan, and subject to change pursuant to subsection C above. F Agreement for Deferred Earnings. Whenever there are any unresolved Bargaining Unit negotiations as of January 1 of the Reference Year, then it shall be understood and agreed between the City Council and the Management Employees that Management Employees will be paid an amount less than their total compensation for the Reference Year until such time as all Bargaining Unit negotiations have been resolved and the incremental Management PACA can be precisely computed and paid retroactively as deferred earnings. G. Nonexclusive Adjustment Process. The Management Pay and Compensation Adjustments provided for in this section shall not be deemed to be an exclusive process for adjusting management pay and compensation, and the City Council may wish to consider Pay and Compensation Adjustments based upon comparative studies conducted pursuant to Section 2 20 030 of the City of Yakima Municipal Code. H. Examples of Management PACA Computations The following hypothetical examples illustrate how the Management PACA formula operates: Example 1 Bargaining Unit Negotiations Completed in First Half of Reference Year As of January 1 of particular year, the • average of all known Bargaining Unit PACAs to be effective during that year is 2 2% There were no delayed Bargaining Unit negotiations during the Prior Year so the Balancing Adjustment is zero Therefore, the Management PACA to be effective on January 1 of the Reference Year is 2 2 %. Assuming that delayed Bargaining Unit negotiations for the Reference Year are resolved before June 30, resulting in a revised Average Bargaining Unit PACA for the Reference Year equal to 3 0 %, then the revised Management PACA is also 3 0 %. This means that Management Employees have deferred earnings for January through June of the Reference Year in the differential amount of 0 8% of base salary over the six month period. This percentage amount will be converted into dollars and added to the next Management Employee paycheck as lump sum deferred earnings. The Management Employee Salary Schedules will also be adjusted to reflect the 0 8% positive adjustment. 0 Page 4 December 1, comp2 rp December 1E 1594 Example 2 Bargaining Unit Negotiations Completed in Second Half of Reference Year With Positive Balancing Adjustment. As of January 1 of a particular year, the average of all Bargaining Unit PACAs to be effective during that year is 2 0% Unresolved Bargaining Unit negotiations during the Prior Year were settled in the second half of the Prior Year, resulting in a positive Balancing Adjustment of + 0 5 %. ,f Reference Year Management PACA equal 2 0% + 0 5 %, for a total Management PACA of 2 5 %. The Management Employee Salary Schedules will be adjusted to reflect a total 2 5% positive adjustment. In addition, the _ 0 5% positive Balancing Adjustment will be converted into dollars and added as a lump i sum payment into the next Management Employee paycheck as deferred earnings. Example 3 Bargaining Unit Negotiations Completed in Second Half of Reference Year With Negative Balancing Adjustment. The same facts arise in this example as in • Example 2 above, with the exception that there is a negative Balancing Adjustment equal to minus 0 5% Reference Year Management PACA equal 2 0% minus 0 5% for a total Management PACA of 1 5% The Management Employee Salary Schedules will be adjusted to reflect this total 1 5% positive adjustment. There is no retroactive pay adjustment for the Prior Year " Section 3 A new section, Section 2 20 117 shall be codified in the City of Yakima Municipal Code as follows: "2 20.117 Management Salary Schedule Separation. It is the policy of the City of Yakima that managers and supervisors shall receive salaries that are a minimum of five percent higher than subordinate employees. Whenever Management Employee Group Salary Schedules are changed or adjusted, a minimum positive five percent separation above Bargaining Unit Salary Schedules shall be maintained. Within the Management Employee Group, Salary Schedules for Management Employees with supervisory responsibility shall be maintained at a minimum positive five percent separation above subordinate employee Salary Schedules. As used in this section, the term, 'Management Employee' means those positions identified in Section 2 20 115(2) " Page 5 (1so_d /mamt comp2 rp December 15 1995 .. Y Section 4 A new section, Section 2 20 118 shall be codified in the City of Yakima Municipal Code as follows: "2.20.118 Management Employee Disability Insurance. There is hereby established a voluntary, employee -paid disability insurance program utilizing the payroll deduction process for participating Management Employees, as defined in Section 2 20 115 of the City of Yakima Municipal Code. The City Director of Finance and Budget is hereby authorized to implement and operate this disability insurance program using the City's payroll deduction system." Section' 5 Effective July 1, 1995, Section 2 24 010 of the City of Yakima Municipal Code is hereby amended to read as follows. "2.24.010 Longevity plan -- Eligibility -- Restrictions. A. Effective January 1, 1979, those employees of the city of Yakima who are within the bargaining unit of the American Federation of State, County and Municipal Employees who are regularly and continuously employed full time, and permanent seasonal employees, who have completed periods of service as hereinafter set forth, shall receive compensation, called longevity pay, in addition to their regular salary, according to the following schedule to be paid on the first applicable day following the thirty -first day of December and the thirtieth day of June of each year; provided, that seasonal employees shall be paid any longevity pay to which they may be entitled upon the termination of any season worked. • T Years Service Longevity Compensation At least 60 months and less than 120 months $ 20 00 per month -- - At least 120 months and less than 180 months 30 00 per month At least 180 months and less than 240 months 40 00 per month 240 months or more 50 00 per month B Effective October 24, 1991, all employees of the fire department and all management employees as defined in subsection 2 04 030(D) of this code and the chief, captains and lieutenants of the Yakima police department who are regularly and continuously employed full time and who have completed periods of service as hereinafter set forth, and effective January 1, 1980, police officers and sergeants of the Yakima police department who are continuously employed full time, and permanent seasonal employees who have completed periods of service as hereinafter set forth, shall receive compensation, called longevity pay, in addition to their regular salary, according to the following schedule, to be paid on the first applicable day following the thirty -first day of December and the thirtieth day of June of each year; provided, that permanent seasonal employees of the Yakima Police department shall be paid any longevity pay to which they may be entitled upon the termination of any season worked. IP Notwithstanding any other provision in this section, Fire Department Page 6 (lslord /mom: omp2 rp December 15 1994 Battalion Chiefs shall not receive more than 6% of Base Pay as longevity pay Years of Service Percent of Base Pay 5 11/2 F 10. .3 15 41/2 20. 6 24 8 Upon termination of employment of anyone entitled to longevity pay, except upon the seasonal termination of seasonal employees, such person shall receive a longevity payment, according to the above schedule, for the number of months of eligibility served by such employee from the date on which the immediately previous longevity payment was made Such payment shall not be made for, fractions of a month, and if termination of employment occurs on or before the fifteenth day of any month, that month shall not be counted as one for which longevity pay is to be made, and if termination of employment occurs after the fifteenth day of any month, that month shall be counted as one full month for which longevitypay is to be made. D. No longevity pay shall be paid to any employee who is . discharged from employment for disciplinary reasons, or who terminates his employment without giving at least two weeks' notice in': writing of such termination. • E. Employees covered by the Washington State Law Enforcement Officers' and Firefighters' Retirement System who terminate their employment after disability leave and are placed on disability retirement shall receive longevity pay for the period of disability leave as provided in Chapter 41 26 of the Revised Code of Washington." Section 6 This ordinance shall be in full force and effect 30 days after its passage, approval, and publication as provided by law and by the City Charter PASSED BY THE CITY COUNCIL, signed and approved this 22nd day of December 1994 Q-01 ATTEST G✓� . Mayor City Clerk Publication Date: 12/23/94 Effective Date. 1/22/95 Page 7 (lslc1d,mgmt comp rp Decemher 15 1994