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Home My WebLink About10/04/2022 13. Ordinance amending the City of Yakima Municipal Code Chapter 2.20.130 Tax deferred compensation plan (non-represented employees) 1 s F` ,1„11„4\ 4.. igikiiiiii),.... \L):.... ) BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 13. For Meeting of: October 4, 2022 ITEM TITLE: Ordinance amending the City of Yakima Municipal Code Chapter 2.20.130 Tax deferred compensation plan (non-represented employees) SUBMITTED BY: Robert Harrison, City Manager SUMMARY EXPLANATION: Reestablishment of longevity pay benefits and 3% deferred compensation for non-represented employees has been recognized as a competitive necessity to increase the City's ability to attract and retain experienced management employees. This recognition has been coming slowly over the last decade, but has accelerated dramatically since 2020 with global changes in workforce availability. The recruitment and retention of qualified employees has become increasingly difficult across all fields and employers, and it has been especially challenging to attract and retain highly specialized, experienced employees. Many of these technical, professional, supervisory and/or management positions are not covered by collective bargaining groups; and therefore, fall into the "non-represented" employee group within the City of Yakima. The City's wage and compensation packages have progressively fallen behind compared to other comparable agencies, resulting now in substantial hiring challenges. Many advanced recruitments have been unsuccessful or produced extremely limited candidates. This combined with employers offering opportunities for 100% remote work, has increased our competition and further harming the City's recruitment and retention efforts. Compression issues between the non- represented group and those they supervise have also become significant, negatively impacting employee morale and retention. Currently, employees hired after 2012 are not provided the same benefit package as their peers who were hired prior to 2012 causing a contentious split within the same group. This causes both discontent and conflicts with the Yakima City Charter, which outlines the tenets of"equal work for equal pay." Also, due to the compression issues created by PACA (pay and adjustment compensation) being cancelled over the years, some of the management team receive total compensation packages that values less than those of their subordinates who are in represented groups. Realigning the benefit packages to ensure all members of the non-represented group receive equivalent benefits will not only improve employee equity, moral and most importantly, retention; but, it will also enable the City to be far more competitive with other employers when 2 trying to attract experienced candidates to accept hard-to-fill positions. This change will currently impact twenty-two individuals with an associated cost of approximately$75,000 in 2023. ITEM BUDGETED: Yes STRATEGIC PRIORITY: APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: Pass ordinance ATTACHMENTS: Description Upload Date Type D ord redline 9/16/2022 Cotter Memo D ord clean 9/16/2022 Cotter Memo 3 ORDINANCE NO. 2022- AN ORDINANCE amending the City of Yakima Municipal Code Chapter 2.20.130 Management group tax deferred compensation plan WHEREAS, the City Council of the City of Yakima finds it is in the best interests of the City and its residents to amend Chapter 2.20.130 regarding the tax deferred compensation plan for management group employees; now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Chapter 2.20.130 of the City of Yakima Municipal Code is hereby amended to read as follows: 2.20.130 Management group tax deferred compensation plan. Each management employee shall participate in a tax deferred compensation plan adopted or approved by the city and shall be paid, in addition to that employee's monthly salary as established by the compensation plan, deferred earned compensation each month in an amount equal to three percent of said monthly salary. Effective December 9, 2012 (or as individually negotiated between the city and prospoctivo omployoos prior to tho offoctivo dato of this amondmont), nowly hirod omployoos of tho managomont group will not bo oligiblo, nor shall participate, in the tax deferred compensation plan. (Ord. 2014-023 § 2 (part), 2014: Ord. 2012-42 § 1, 2012: Ord. 95-18 § 1, 1995: Ord. 3504 § 2, 1992: Ord. 3500 § 1, 1992: Ord. 2873 § 1, 1985: Ord. 2689 § 1, 1983). Section 2. This ordinance shall be in full force and effect January 1, 2023, after its passage, approval, and publication as provided by law and by the City Charter. PASSED BY THE CITY COUNCIL, signed and approved this day of , 2022. ATTEST: Janice Deccio, Mayor Sonya Claar Tee, City Clerk Publication Date: Effective Date: 4 ORDINANCE NO. 2022- AN ORDINANCE amending the City of Yakima Municipal Code Chapter 2.20.130 Management group tax deferred compensation plan WHEREAS, the City Council of the City of Yakima finds it is in the best interests of the City and its residents to amend Chapter 2.20.130 regarding the tax deferred compensation plan for management group employees; now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Chapter 2.20.130 of the City of Yakima Municipal Code is hereby amended to read as follows: 2.20.130 Management group tax deferred compensation plan. Each management employee shall participate in a tax deferred compensation plan adopted or approved by the city and shall be paid, in addition to that employee's monthly salary as established by the compensation plan, deferred earned compensation each month in an amount equal to three percent of said monthly salary. (Ord. 2014-023 § 2 (part), 2014: Ord. 2012-42 § 1, 2012: Ord. 95-18§ 1, 1995: Ord. 3504 § 2, 1992: Ord. 3500 § 1, 1992: Ord. 2873 § 1, 1985: Ord. 2689 § 1, 1983). Section 2. This ordinance shall be in full force and effect January 1 , 2023, after its passage, approval, and publication as provided by law and by the City Charter. PASSED BY THE CITY COUNCIL, signed and approved this_ day of_, 2022. ATTEST: Janice Deccio, Mayor Sonya Clear Tee, City Clerk Publication Date: Effective Date: