Req. # 11463
ORDINANCE NO. 2 7 6 3 6
1 AN ORDINANCE relating to pay and compensation; providing for additional forms
of compensation and benefits, removing certain limits on compensation and
2 benefits, authorizing additional severance benefits, authorizing additional
incentives for the commute trip reduction program, adding reporting
3 requirements; and amending Sections 1.12.110, 1.12.115, 1.12.116,
4 1.12.250, and 1.12.640 of the Tacoma Municipal Code.
5 WHEREAS the City's Pay and Compensation Plan ("Plan") is intended to
6 provide a flexible, well-understood set of compensation tools that will facilitate
7 successful recruitment and retention of employees, and
8 WHEREAS City staff has recommended that a set of additional tools that
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have become common in the marketplace for the recruitment and retention of
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I 1 key qualified employees with specialized skills should be added to the Plan and
12 certain restrictions on adjusting wages within established salary limits be
13 removed from the Plan to facilitate successful recruitment and retention of
14 employees on an as-needed basis, and
15 WHEREAS, in order to achieve the goals of the Program, the City's and
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state's Commute Trip Reduction Programs recommend the use of incentives in
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addition to the jurisdiction's reimbursement of certain costs, and
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19 WHEREAS an increased level of reporting to the City Council will assist
20 in providing accountability for the use of these additional compensation tools,
21 and
22 WHEREAS, on June 13, 2007, the Government Performance and Finance
23 Committee reviewed and provided a do pass recommendation for changes to
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Chapter 1. 1 2 of the Tacoma Municipal Code proposed by City staff to facilitate
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26 successful recruitment and retention of employees; Now, Therefore,
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BE IT ORDAINED BY THE CITY OF TACOMA:
2 Section 1. That Sections 1.1 2.110,1.12.115,1.12.116,1.12.250, and
3 1. 1 2.640 of the Tacoma Municipal Code be amended as set forth in Exhibit "A."
4 Passed JUL 3 1 2007
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6 Mayor
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Attest:
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10 City Clerk
1 1 Approved as to form:
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Assistant City Attorney
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EXHIBIT "A"
2 1.12.110 Other official expenditures.
3 In addition to the prescribed rates of pay and other allowances provided for in this chapter, officers,
employees, and volunteers of the City shall be entitled to the payment of or reimbursement for the
4 following classes of official expenditures:
A. Transportation, lodging, meals, and other related expenditures which may lawfully be incurred by
5 officers, employees, and volunteers of the City when approved by the City Manager or the Director of
Utilities, as applicable, within or without the City:
6 1. For purposes which generally promote, develop, or publicize the City's best interests, including sales
7 promotional and institutional activities of its municipal utilities;
2. For incurred expenditures associated with attendance at sessions of the Washington State Legislature
8 or in connection with appearing before or conferring with any individual, group, or committee of state
legislators or other persons at Olympia or elsewhere for the purpose of presenting data, exchanging
9 information, and otherwise consulting on matters of mutual concern in the development of
intergovernmental understanding and cooperation, for the proper evaluation of legislative programs
10 affecting the municipalities, and for such other purposes as may promote or tend to promote the best
interests and general welfare of the City;
1 1 3. For coffee, nonalcoholic beverages, and refreshments of de rninimis value at City meetings attended by
1 2 City officials, employees, and/or the public, at which City business matters are the primary matters of
discussion, consistent with the written policies adopted by the City Manager or Director of Utilities, as
1 3 applicable.
B. The cost of meals lawfully incurred on behalf of or by City personnel within the City or at other
1 4 normal areas of employment while they are conferring, consulting, or otherwise meeting with non-City
specialists, technicians, executives, or others for purposes generally associated with the routine official
1 5 duties of such personnel where not otherwise covered by other provisions of this chapter.
1 6 C. The City shall pay the cost of premiums or fees for:
1. Trip Travel Life insurance covering each employee, officer, and official of the City for an amount not
1 7 to exceed $ 1 00,000 each, payable to the beneficiary named by the insured, while traveling on City
business authorized by competent authority. All benefits are subject to the ternis and conditions of the
1 8 applicable policy.
2. Policies of insurance or self-insurance retention insuring the Police Chief and all duly commissioned
1 9 police officers of the City of Tacoma against false arrest.
20 3. Policies of insurance or self-insurance retention insuring City employees while driving City vehicles
operated in any municipal capacity against liability for bodily injury and property damage resulting from
2 1 said operation.
4. Policies of insurance or self-insurance retention insuring Fireboat Pilots and relief pilots while
22 operating the City's fireboat against liability for bodily injury and property damage resulting from said
operation.
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5. The cost of such additional driver's license endorsement and examination fees as may be required for
24 City employee drivers of certain types of heavier motor vehicle equipment, as may be specified by the
Director, Washington State Department of Motor Vehicles, pursuant to Chapter 20, Laws of 1967,
25 Extraordinary Session.
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6. Policies of insurance or self-insurance retention insuring the City against claims arising out of the
1 ownership, maintenance, or use of City-owned facilities and property and including coverage for City
employees for claims arising out of their employment by the City.
2 D. Whenever the qualified appointing authority of the City of Tacoma may determine that in order to
secure the services of any person not residing within the Tacoma area as an employee of the City of
3 Tacoma, it is necessary to pay the cost of moving the household goods and personal effects of such person
from his or her place of residence to the City of Tacoma upon his or her appointment to City service,
4 and/or to provide temporM lodging enenses not to exceed six months for such person until such person
can move his or her place of residence to the Cily of Tacoma ppon his or her Appointment to City service,
5 and/or to provide a temporaKy housing cost supplement to mitigate a significant increase in the cost of
co arable housing for such person who moves his or her place of residence to the City of Tacoma upon
6 his or her appointment to Ci1y service, such supplement not to exceed 80 percent of the increase in median
housing cost and not to exceed threg_y@ar_sthen payment of reasonable and necessary moving costs-
7 lodging costs, or housing cost supplement may be made from appropriate available maintenance and
operation ftinds in the City's annual budget, upon the recommendation of the appointing authority and the
8 approval of such an expenditure by the City Manager,:@ Director of Utilities, or Public Utilfty Board. An
annual report showing the recipients of all benefits granted under this provision shall be submitted to the
9 Ci1y Council in the month of December of each year.
I 0 E. Whenever the Council finds that in selecting personnel to fill positions in the City of Tacoma requiring
special experience and training to qualify for such positions it becomes necessary, in order to insure
I I selection of the most qualified applicant, that applicants for such positions be personally interviewed, and
that in certain cases the expense to the City of sending members of boards, commissions, and other
1 2 officers of the City to various localities for the purpose of conducting such interviews exceeds the cost to
the City government of providing that the interviews be had in the City of Tacoma at the City's expense
1 3 and that the payment by the City of the necessary travel and subsistence expenses for a limited number of
applicants to be brought to the City will result in a saving or expense to the City in the outlay of travel and
1 4 subsistence expenses or in the time which would be lost by reason of regular officers or employees of the
City conducting the interviews elsewhere. The Council further finds that in such cases the payment by the
1 5 City of the travel and subsistence expense of applicants requested to come to the City of Tacoma for
interview is a proper municipal expense and for a proper municipal purpose.
1 6 In order to make a proper determination of the facts in cases where authority is requested to bring in
applicants for any position in the City of Tacoma at the City's expense, the City Manager as to the filling
1 7 of all positions in the general City government, and the Director of Utilities as to the filling of all positions
under the jurisdiction of the Department of Public Utilities, be and are hereby authorized to deteriiiine the
1 8 facts, and upon approval by the City Manager or the Director of Utilities, as the case may be, based upon
a determination that the payment by the City of the expenses of bringing a limited number of applicants to
1 9 the City of Tacoma for interview is necessary to make possible the selection of the best available
applicant for a position involving special skill and experience to properly discharge the duties thereof, and
20 that the payment of the expense of bringing said applicants to the City is less than the expense and loss to
the City in sending its officers, commissions, or boards to conduct said interview elsewhere, and that
2 1 funds for the payment of such expenses are lawfully available, payment therefor shall be considered as
approved by the City Council and shall be paid from the fund to which said expenses are properly
22 chargeable.
F. In addition to the City paying the cost of premiums or fees for general liability insurance as otherwise
23 set forth in this chapter, where the City has acquired insurance coverage on a self-insurance retention
basis, in lieu of paying ftill coverage, premiums, or fees, for policies of general liability insurance insuring
24 the City against claims arising out of the ownership, maintenance, or use of City-owned facilities and
property, and including coverage for City employees for claims arising out of their employment by the
25 City, the City may upon timely notice and in appropriate factual situations, subject to the approval of the
City Attorney, pay the cost of such claims incurred, and for claims settlement service, as do not exceed the
26 self-insurance coverage limits required in conjunction with the overriding provisions of such policies.
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G. In order to encourage a greater number of City employees to use public transportation and, therefore,
I benefit the City by conserving fuel resources, roads, and parking spaces, the proper officials of the City
are authorized to subsidize permanent, project, appointive, temporary pending exam, and temporary City
2 employees' and volunteers' monthly public transportation tokens, passes, and authorized van pools, by
paying per month up to the full price of said monthly public transportation or the IRS tax exempt benefit
3 limit (whichever is less); provided, however, that this shall not apply to commissioned Police Department
and Fire Department personnel. -.The proper City officials are authorized to provide passes or
4 appropriately reimburse said City employees in order to implement this City employee public
transportation subsidy program. Additionally, the proper officials of the Ci!y are authorized to provide
5 cash and other in-kind incentives as part of an adopted Commute Trip Program.
H. Whenever the City Manager, or-the Director of Utilities, or the Public Utili1y Boar determines that, in
6 order to secure or retain key qualified personnel possessing specialized technical or professional skills for
unrepresented positions, it is necessary to offer said individuals additional compensation, benefits, or
7 both, then the City Manager, or-the Director of Utilities, and the Public Utilfty Board shall each have
discretion to authorize the payment of up to an annual total of $ 1 00,000 in additional compensation,
8 benefits, or both. Such compensation, benefits, or both under this provision of this paragrgph shall be
limited to a maximum of $15,000 per employee per year; provided, that payment can lawfully be made
9 from funds appropriated in the current biennial budget of the employing department. In addition, the City
Manager, Ci1y Council, the-Director of Utilities, and the-Public Utili!y Board shall each have discretion to
I 0 authorize the payment of severance benefits associated with an employment agreement in the event of
termination without cause, in order to secure or retain key qualified personnel possessing specialized
I I technical or professional skills for unrepresented positions Lip to the limits of their delegated contracting
authority in the case of the City Manager and Director of Utilities, and Lip to an amount corresponding to
1 2 one year of salM in the case of the Ci1y Council and the Public Utili!y Board. An annual report showing
the recipients of all severance, compensation, and benefits, OF both, granted under this provision shall be
1 3 submitted to the City Council in the month of December of each year.
1 4 I. Whenever the Ci1y Manager or the Director of Utilities identifies positions for elimination as part of
departmental reorganization, streamlining, elimination of dolication, or other such efforts, the Cily
1 5 Manager or the Director of Utilities also shall each have discretion to authorize the payment of severance
benefits up to the limits of their delegated contracting authority; provided, that payment can lawfully be
I I made from ftinds appropriated in the current biennial budget of the employing department. An annual
report showing the recipients of all severance benefits granted under this provision shall be submitted to
I I the Ci1y Council in the month of December of each year.
J. The Ci1y Council may, as part of an employment agreement, authorize payment of a car allowance for
1 8 the City Manager.
1 9 1.12.115 Deferred compensation.
A. The City will match the deferred compensation contribution of police personnel in the classes of
20 Police Officer, Police Detective, and Police Sergeant to a maximum City contribution of $192 per pay
period.
21 B. The City will match the deferred compensation contribution of fire personnel represented by
Firefighters' Union, Local 3 1, up to a maximum of $192 per pay period.
22 C. The City will match the deferred compensation of fire and police personnel in the classifications of
23 Assistant Fire Chief, Deputy Fire Chief, and Assistant Police Chief, up to a maximum contribution of
$217 per pay period.
24 D. The City will match the deferred compensation of police personnel in the classifications of Police
Captain and Police Lieutenant up to a maximum contribution of $204.50 per pay period.
25 E. In order to provide financial incentive to secure or retain key management personnel in unrepresented
26 positions, the City may contribute amounts as employer contributions to the City's Internal Revenue
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Code ("IRC") Section 457(f)(1) Deferred Compensation Plan, or, thfaugh June 1, 2000, may contribute
I amounts to the City's IRC Section 457 Deferred Compensation Plan, except as otherwise provided in
TMC 1. 12.115(E) or 1. 12.640. Any such contributions to the IRC Section 457 Plan will comply with all
2 applicable provisions of IRC Section 457. The terms and conditions applicable to contributions to the
Section 457(f)(1) Deferred Compensation Plan shall be as set forth in the Plan and the applicable deferral
3 agreement with the employee. All IRC Section 457 or Section 457(f)(1) contributions benefiting the City
Manager or the Director of Utilities shall be approved by the City Council or the Public Utilities Board,
4 respectively, and shall be subject to applicable IRC limits; provided, however-, that any eepAfibufions
befiefiting the DiFe6tEff Of PtthliG Utilities shall be sttbj eet te prior- Feeonunendation by the Public Utility
5 Bear-d. Any IRC Section 457 or IRC Section 457(f)(1) contributions benefiting any other unrepresented
key management personnel of the City of Tacoma shall be at the discretion of the City Manager or the
6 Director of Utilities, subject to their delegated contracting limits and applicable IRC limits. An annual
report showing the contributions granted under this provision shall be submitted to the Ci1y Council in the
7 month of December of each year.
F. The City will match the deferred compensation contribution of Belt Line personnel covered by the
8 Federal Railroad Retirement Act in the classifications of Administrative Secretary (CSC 0023) to a
maximum City contribution of 7.38 percent; of Utilities Director, Deputy, Belt Line Superintendent
9 (CSC 0830) to a maximum City contribution of 9.0 percent; and Railway Roadmaster (CSC 7126) to a
maximum City contribution of 7.26 percent of the base salary; provided, however, that as to any personnel
I 0 hired after the effective date of the ordinance codified in this section, the City will match the deferred
compensation contribution of Belt Line personnel in the classifications of Administrative Secretary
I I (CSC 0023); Utilities Director, Deputy, Belt Line Superintendent (CSC 0830); Railway Roadmaster
(CSC 7126); Belt Line Rail Superintendent, Assistant (CSC 7152); and Belt Line Supervisor of
1 2 Operations (CSC 7127) to a maximum contribution of 3 percent; and, provided further, that all
contributions are subject to the limitations of the IRC maximum contribution requirements for Section 457
1 3 plans.
1 4 1.12.116 Supplemental benefit plans.
A. Union Sponsored Plans. The City of Tacoma may contribute ftmds to benefit and supplemental
1 5 pension plans, if otherwise permitted under the law, including, but not limited to, union-sponsored
pension plans, in accordance with the ternis of any duly signed and authorized collective bargaining
1 6 agreement or addendum thereto between the City of Tacoma and the recognized bargaining
representatives of any City employees, or in accordance with the ternis of any pay and compensation
1 7 ordinance approved by the City Council on behalf of unrepresented employees.
1 8 B. Defined Contribution Plan. In order to provide a financial incentive to secure or retain key
management personnel in unrepresented positions, the City may establish and contribute amounts as
1 9 employer contributions to an Internal Revenue Code Section 401 defined contribution plan on behalf of
said employees. Any such defined contribution plan will comply with all applicable provisions of the
20 Internal Revenue Code. The ternis and conditions of the defined contribution plan shall be approved by
the City Council. Defined contribution plan contributions benefiting the City Manager or the Director of
21 Public Utilities shall be approved by the City Council or the Public Utilities Board, respectively, and shall
be subject to applicable IRC limi _; Provided, however-, that any eeRtFibutiens benefiting the Dir-eetor of
22 Publie Utilities shall be subject to pr4of r-econnnendation by the Publie Utility Board. Defined
contribution plan contributions benefiting any other unrepresented key management personnel of the City
23 of Tacoma shall be at the discretion of the City Manager or the Director of Public Utilities, subject to their
delegated contracting limits and Applicable IRC limits. An annual report showing the contributions
24 granted under this provision shall be submitted to the City Council in the month of December of each
y.@Lar.
25 C. Post-Employment Health Savings. The City of Tacoma may establish a plan, to the extent permitted
by law, to provide a means for employees to establish a savings plan to ftuid eligible post-employment
26 health expenses. Said plan may provide for funding by employer contributions when pursuant to a duly
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signed and authorized collective bargaining agreement, or by employee elected contributions. Any
established post-employment health savings plan shall comply with applicable rules and/or provisions of
the Internal Revenue Service. The tenus and conditions of the post-employment health savings plan shall
2 be approved by the City Council.
3 ...
1.12.250 Leave with pay.
4 A. Military leave with pay. Every officer and employee of the City who is a member of the Washington
National Guard or of the Army, Navy, Air Force, Coast Guard, or Marine Corps Reserve of the United
5 States, or of any organized reserve or armed forces of the United States, shall be entitled to and shall be
granted military leave of absence from such employment for a period not exceeding 15 work days
6 (regardless of length of scheduled shift) during each year beginning October I and ending the following
September 30. Such leave shall be granted in order that the person may take part in active duty or active
7 training duty in such manner and at such time as he or she may be ordered to active duty or active training
duty. Such military leave of absence shall be in addition to any vacation or sick leave to which the officer
8 or employee might otherwise be entitled, and shall not involve any loss of efficiency rating, privileges, or
pay except as provided herein. During the period of military leave, with the exception of emergency and
9 temporary employees, the officer or employee shall receive from the City his or her normal pay.
I 0 Where the number of days of active duty or active training duty exceeds 15 work days, the period granted
as leave with pay will in each case be the first 15 work days of such active duty or active training duty
period. The additional time needed for completion of active duty or active training duty and for travel
I I time must be accounted for as vacation time, compensatory time off or leave without pay.
1 2 Upon receipt of his or her written orders for active duty or active training duty, the employee must
inunediately submit a copy of such orders to his or her department head. A copy of said orders will then
1 3 be forwarded to the Human Resources Department. The employee, upon his or her return to City
employment, must submit to his or her department head a certified true copy of his or her military orders
1 4 showing the date he or she reported for, and the date of his or her release from active duty or active
training duty. The employee's normal regular salary as provided herein shall continue during the
1 5 approved period of absence subject to receipt of this certified true copy upon his or her return.
B. Jury Duty. A regularly employed full time employee of the City shall be granted leave of absence at
1 6 his or her nonnal regular pay if called for jury duty. Any compensation derived from such jury duty shall
be deducted ftom the gross pay due the employee for that period; provided however, in the event the daily
1 7 payment for jury duty exceeds the amount of compensation an employee would have received from the
City during his or her required absence on said day, there shall be no such deduction for compensation
1 8 from jury duty and the employee shall be compensated at his or her normal hourly rate of pay for the time
1 9 worked on said day.
C. Administrative Leave.
20 1. In extraordinary circumstances, where the appointing authority finds that an employee's continued
presence at the work site could have detrimental consequences or cause public harm, such employee may,
2 1 at the direction of the appointing authority and with the approval of the Human Resources Director, be
placed on administrative leave with his or her normal regular pay. The appointing authority shall notify
22 the employee of the reason(s) for the administrative leave and any related restriction(s) while on leave.
Additionally, the appointing authority shall follow up with a written notification to the employee within
23 the next two business days and forward the same to the Human Resources Director.
24 2. At the discretion of a department head, the Cily Manager, the-Director of Utilities, or #w-Public Utilijy
Board, an employee in overtime Category D or E (overtime exempt) may be granted administrative leave
25 in full day increments at his or her normal regular pay. An annual report showing the administrative leave
granted by the City Manager, Director of Utilities, and Public Utilfty Board shall be submitted to the Cily
26 Council no later than December 31 of each year.
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D. In reference to subsections A and B above, an employee shall be paid at the rate for the classification
1 in which he or she was working on the day before the leave.
E. Active Duty Differential Payment. Every eligible perinarient, appointive, temporary pending exarn,
2 and project officer and employee of the City who is now or may hereafter become a member of the
Washington National Guard or of the Army, Navy, Air Force, Coast Guard, Marine Corps Reserves of the
3 United States, or of any organized reserves or anned forces of the United States who receives, or as of the
effective date of this subsection has received, written orders for active duty for a period exceeding 15 days
4 in any calendar year, shall be eligible to receive a payment equal to that portion of his or her City pay for
the classification held at the time such military service commenced that, in combination with such
5 compensation he or she receives for such military service on and after January 1, 2004, will equal his or
her regular duty City pay until such time as the employee returns from active military service.
6
To receive the active duty differential payment authorized by this subsection, the employee must
7 immediately submit to his or her department head a copy of such orders and a certificate as to, whether
subject to income tax or not, that the employee will receive from the military prior to actual deployment in
8 a manner and form as may be prescribed by the Director of Human Resources, and monthly thereafter. A
copy of said orders and certification as to compensation will then be forwarded to the Human Resources
9 Department. If an employee is unable to submit a copy of his or her orders for military or national
security purposes, evidence of all active military service compensation must be submitted as provided
I 0 herein.
In addition, medical, dental, and vision coverage provided for an eligible permanent, appointive,
I I temporary pending exam, or project officer and employee and his or her dependents shall continue,
subject to the same terms and conditions applicable to such coverage, for up to fifteen months following
1 2 the date the eligible employee is placed on an approved military leave of absence from his or her City
position when the employee is a member of the Washington National Guard or of the Army, Navy, Air
1 3 Force, Coast Guard, or Marine Corps Reserve of the United States, or of any organized reserve or armed
forces of the United States, and is ordered to active duty by the United States government.
1 4 The military differential payment authorized by this subsection shall not grant any right, benefit or interest
1 5 in employment or reemployment save that granted to employees under Chapter 43 of Title 38 of the
United States Code, and subsection A of this section, nor shall it be considered compensation to which
1 6 any employer or employee pension or deferred compensation rights or obligations shall attach.
1.12.640 Application of additional rates.
1 7 NRE Classifications within the executive salary plan are not eligible for longevity pay and are comprised
of all non-automatic steps, with progression based on market and/or an executive performance appraisal
1 8 conducted by the appropriate hiring authority. The executive salary plan includes the classifications of
Information Technology Director (CSC 0835); City Attorney (CSC 0715); City Manager (CSC 0747);
1 9 City Manager, Assistant (CSC 0746); Customer Services Manager (CSC 0616); Cornrnunity and
Economic Development Director (CSC 0750); Energy Services Manager (CSC 0619); Finance Director
20 (CSC 0712); Fire Chief (CSC 0767); Generation Manager (CSC 2080); Hearing Examiner (CSC 0717);
Human Resources Director (CSC 0735); Human Rights/Human Services Director (CSC 0752); PAF
2 1 Director (CSC 0730); Police Chief (CSC 0772); Power Division Superintendent, Deputy (CSC 2081);
Power Manager (CSC 2075); Public Works Director (CSC 0757); Retirement Systems Director
22 (CSC 0560); Telecommunications Manager (CSC 5500); Transmission & Distribution Manager
(CSC 2079); Utilities Director (CSC 0822); Utilities Director, Deputy (CSC 0819); Utilities Director,
23 Deputy Power Superintendent (CSC 0825); Utilities Director, Deputy Rail Superintendent (CSC 0830);
and Utilities Director, Deputy Water Superintendent (CSC 0823).
24 For- the classifications of Customer- Sen4ces Manager-; Ener-gy Services Manager-; Generation Manager-;
25 Power- Division Super-ipAeadent, Deputy; Pewef Manager-; Teleeonmitmieafiens Manager-; T-r-ansmission-&
DistFibution Manager-; Utilities DiFeeter-, Deputy; Utilities DiFeeter-, Deputy Rail Superintendent; Utili ies
Dir-eeter-, and Deputy Water- Super-intendei#: Pufing the 2005 2006 bie --es will be hmited to
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no ere than one pay step. TheFeafter, step increases are lifr4ted to no more than one step per year and
I A411 not exoeed the eerrespending market based salary detennined in the most feeent supve@.
F-of the--, ed-nissifioations of Deputy Utilities Pir-eetor, Power- Superintendent, and Utilities Dife6k)F:
2 Effeetive januafy 1, 2006, incumbents in these twe elassifieations shall enter- the salary range at the step-
elOSeSt tO WS OF her etffrent Fate of pay. No step adjustments may OOGUF fOF either- pesition upAil the
3 2007 2008 biefmium at which t4ne step increases are limited to no more than one step peF year,
Thereafter-, ste. i limited to HO HIOFe than one step per- year- and will not exeeed the
4 market based salary detemiined in the most r-eeepA sui=vey.
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LEG 004 (11/89)
CITY CLERK USE ONLY
Tacoma REQUEST FOR Request #:I I tt_@, -3
Z ORDINANCE [7 RESOLUTION Ord./Res. 27636
1. DATE: July 19, 2007
2. SPONSORED BY: COUNCIL MEMBER(s) N/A
3a. REQUESTING 4a. CONTACT (for questions): PHONE: 591-2500
DEPARTMENT/DIVISION/PROGRAM Rey Arellano
City Manager's Office 4b. Person Presenting: PHONE: 591-2500
3b. Do PASS FROM GPFC Rey Arellano
Z Yes (related to a majority)
F@ No 4c. ATTORNEY: Anne Spangler PHONE: 502-8218
F-1 Did not go before a Committee
I Budget Officer/Finance Director
5. REQUESTED EFFECTIVE DATE: July 24, 2007
6. SUMMARY AGENDA TITLE:
Amendments to Municipal Code Sections 1. 1 2.110, 1.12.115, 1.12.116, 1.12.250, and 1. 1 2.640 to clarify
and expand tools available to the City Council, City Manager, and Director of Public Utilities for effective
recruitment and retention of key personnel and to provide tools consistent to that of other appointing
authorities for the Public Utilities Board in their recruitment and retention of the Director of Public Utilities;
removing certain limits on compensation and benefits, authorizing additional severance benefits,
authorizing additional incentives for the commute trip reduction program; and adding reporting
requirements.
7. BACKGROUND INFORMATION/GENERAL DISCUSSION:
The goal of the changes proposed is to provide a flexible, well understood set of compensation tools that
will facilitate successful recruitment and retention of employees. These changes were discussed
conceptually with the Government Performance and Finance Committee on December 6, 2006 and
specific recommendations were submitted to the Committee on June 13, 2007. After requesting several
changes that are reflected in the current recommendation, the Government Performance and Finance
Committee provided the request with a do pass. Specifically, the changes:
* Provide the Utilities Board with tools for the recruitment and retention of the Director of Utilities that are
consistent with the City Council, City Manager and Director of Utilities for their respective appointments.
9 Provide tools to the Director of Utilities and City Manager that had been previously reserved for
department directors.
Describe conditions under which severance could be awarded.
Articulate clearly what is permissive under each of the tools as well as limits in authority and
corresponding reporting requirements.
The difficulty that has been experienced by both TPU and General Government in recruiting and
retaining key personnel in today's tight job market has caused staff to seek these changes prior to the
completion of the Classification and Compensation Study.
In addition to the changes requested by the Government Performance and Finance Committee, there
are two changes proposed by the Legal Department:
e To provide clarity to the authority of the City Council regarding the City Manager's compensation:
severance and car allowance.
e Adding a provision so that cash and in-kind incentives may be provided to employees as part of a
recognized Commute Trip Reduction Program. 1,36
\gensvcs\c,ffsys\web page documents\RequestResolutionOrdinance.doc Office of the City Clffk (05107)
8. LIST ALL MATERIAL AVAILABLE AS BACKUP INFORMATION FOR THE REQUEST AND INDICATE WHERE FILED:
Source Documents/Backup Material Location of Document II 1+ 0
Compensation Tool Change Table (City Mgr, Council Packet 27636
Director of Utilities, and Utility Board authority)
9. FINANCIAL IMPACT: A. Z No IMPACT (NO FISCAL NOTE)
B. 0 YES, OVER$ 1 00,000, Fiscal Note Attached
C. [-@ YES, UNDER $100,000, (NO FISCAL NOTE) Provide funding source
information below:
The Financial Impact of the ordinance is unknown at this time, but future application of these tools will be absorbed
into existing departmental funding.
FUNDING SOURCE: (Enter amount of funding from each source)
Fund Number & Name: State $ city s Other $ Total Amount
If an expenditure, is it budgeted? F-1 Yes F@ No Where? Cost Center:
Acct
Gensw,@,ityelkRequ-1f., Ordjname-M@2005.dm Office of t1w City Clffk
(4105)
Utility Board
City Manager/Utilities (for Utilities Reporting
Item Dept. Directors Director As proposed Director) As proposed Requirement
1 Additional No $15,000 per year, capped at No change No $15,000 per year Yes
Compensation* $100,000 (1.12.1 10.1-1)
2 Moving expenses No Reasonable & necessary No change No Reasonable & Necessary Yes
(I. 1 2.1 1 0. D)
3 Temporary lodging No Within "addi tional compensation" Up to 3 months reasonable & No Up to 3 months reasonable & necessary Yes
caps under 1. 1 2.1 1 0. H necessary
4 Temp. Housing No Within "additional compensation' 80% of increase in comparable No 80% of increase in comparable housing, up to 3 Yes
Supplement caps under 1.12.1 10.1-1 housing, up to 3 years years
5 Severance per No No Up to contracting limits ($50,000) No Up to I year Yes
Employment
Agreement*
6 Severance for No No Discretionary up to contracting limits No No change Yes
layoffs under a ($50,000)
reorganization plan
7 Administrative To exempt Within "additional compensation" To exempt employees with no limit No To Utilities Director with no limit Yes
leave* employees - no caps under 1. 1 2.1 1 0. H
limit 1.12.250.C.2
(no reporting
requirement to
Council)
8 401- Defined No Up to contracting limits No change OnlyonCouncil Yes,subjecttoiRClimit(currently$45,000) Yes
contribution* ($50,000) (1.12.116) (but also approval
subject to I RC of $45, 000)
9 457 Deferred No No Up to contracting limits ($50,000), No Yes, subject to IRC limit (currently $15,500) Yes
Comp** also subject to IRC limit of $15,500
1 0 457f - Special No Up to contracting limits No change Only on Council Yes, subject to applicable IRC limits Yes
deferred comp* ($50,000) (1.12.115), subject to approval
applicable IRC limits
11 Step Limit on Utility N/A Utilities Director authority limited Limitation removed, with increases Authority limited Limitation removed, with increases governed by No
Executive Positions to 1 step/year increase (N/A for governed by same criteria as all to I steplyear same criteria as all other executive positions:
City Manager) other executive positions: non- increase non-automatic step increases, with progression
automatic step increases, with based on market and/or an executive
progression based on market and/or performance appraisal conducted by the
an executive performance appraisal appropriate hiring authority
conducted by the appropriate hiring
authority
Limited to unrepresented positions only, in order to secure or retain key management personnel
This amount is considered "compensation" for purposes of TERS contributions
IND
27636
City of Tacoma
T""Q Office of the CIO
Memorandum
DATE: July 5, 2007
TO: Eric Anderson, City Manager
Mark Crisson, Director of Utilities
FROM: Rey Arellano, Assistant City Manager & CIO
SUBJECT: Proposed Ordinance to Clarify and Expand Compensation Tools
Background
At the Government Performance and Finance Committee (GPFC) meeting on June 13,
2007, members of the GPFC reviewed and provided a "do pass" for staff
recommendations regarding modifications to Sections 1.12.110, 1.12.115, 1.12.116,
1.12.250, and 1.12.640 of the Tacoma Municipal Code. The members of the committee
requested several changes and for additional description of the changes to be
submitted to the City Council along with the ordinance. This memo provides a complete
description of the proposed ordinance changes that incorporates the requests of the
GPFC.
Overview
One of the goals of the City of Tacoma's Pay and Compensation Plan ("Plan") is to
provide a flexible, well-understood set of compensation tools that will facilitate
successful recruitment and retention of employees. Currently, the Plan does not
adequately accomplish this goal.
Some of the problems that have been identified and for which recommendations are
presented include: the lack of specific authority to grant severance benefit; the lack of
specific authority to authorize temporary housing expenses; the need for clarification of
authority to grant contributions to Internal Revenue Code ("IRC") Section 457, 457(0(1),
and 401 Plans; unclear provisions for reporting requirements to the City Council;
inconsistent authority between department heads and the City Manager and Director of
Utilities to grant administrative leave; a provision that restricts the ability to meet market
rate compensation within Tacoma Public Utilities in adjusting wages within established
salary ranges; and insufficient authority for the Public Utility Board as compared to the
City Council, Director of Utilities, and City Manager for its appointment of the Director of
Utilities.
Specific authority for several additional tools that have become common and expected
in the marketplace for the recruitment and retention of key qualified employees with
specialized skills, are proposed to be added to the Plan to facilitate successful
recruitment and retention of employees on an as-needed basis. In addition, the
Subj: Proposed Ordinance to Clarify and Expand Compensation Tools
July 5, 2007
Page 2
proposed ordinance would increase the level of reporting to the City Council to provide
accountability for the use of these tools.
Proposed Amendments
The proposed ordinance changes are designed to amend certain sections of
Chapter 1.12 of the Tacoma Municipal Code (TMC) to address the problems identified
above, and to increase the level of reporting to the City Council to provide
accountability. The proposed ordinance is summarized below.
1. Administrative Leave. An amendment to TIVIC 1.12.250 would allow the City
Manager, Director of Utilities and Public Utility Board to exercise the same authority
as Department Directors to grant administrative leave.
2. Public Utility Board Authority. Amendments to TIVIC 1. 1 2.110, 1.12.115 and
1. 1 2.116 would allow the Public Utility Board to exercise the same authority as the
Director of Utilities and City Manager to grant additional compensation or benefits,
and contributions to Deferred Compensation and Defined Contribution Plans in order
to secure or retain the Director of Utilities.
Under the amendments to TIVIC 1. 1 2.1 1 0. H, the Public Utility Board could authorize
up to $15,000 in additional compensation, benefits, or both to the Director of Utilities.
Under the amendments to TIVIC 1.12.115 and 1.1 2.116, the Public Utility Board
could authorize employer contributions to the City's Internal Revenue Code ("IRC")
Section 457 Deferred Compensation Plan, its Section 457(f)(1) Deferred
Compensation Plan, and its Section 401 Defined Contribution Plan, subject to
applicable limits imposed by the IRC. Currently those limits are approximately
$45,000 for the 401 Plan and $15,500 for the 457 Plan. IRC limits applicable to the
457(f)(1) Plan would depend upon the circumstances of the recipient and the Plan.
3. Temporary Housing Costs. An amendment to TIVIC 1.1 2.1 1 O.D wouid allow
authorization of temporary lodging and housing cost expenses when the City
appointing authority determines that it is necessary in order to secure the services of
a person not residing within the Tacoma area. If that person moves his or her place
of residence to Tacoma upon appointment to City service, the proposed
amendments authorize temporary lodging expenses, not to exceed six months,
and/or a temporary housing cost supplement designed to mitigate a significant
increase in the cost of comparable housing, such supplement not to exceed
80 percent of the increase in median housing cost, and not to exceed three years,
Note that the Plan already authorizes the payment of moving expenses when the
City appointing authority determines that it is necessary to secure the services of a
person not residing in the Tacoma area.
4. Severance as RecruitinglRetention Too/. An amendment to TMC 1.12.1 10.1-1
would allow the City Manager, Director of Utilities and Public Utility Board discretion
Subj: Proposed Ordinance to Clarify and Expand Compensation Tools
July 5, 2007
Page 3
to authorize the payment of a severance benefit in the event of termination without
cause, if it is contained in a written employment agreement. This benefit could only
be used to secure or retain key qualified personnel with specialized technical or
professional skills in an unrepresented position, and would be appropriately
conditioned in the context of an employment agreement. The amount of this benefit
would be limited to the delegated contracting authority of the City Manager or the
Director of Utilities, which is currently $50,000, or an amount corresponding to one
year of salary in the case of the Public Utility Board.
Staff believes that this benefit can be a very significant factor in successfully
recruiting a key candidate for a senior position as an incentive to leave an existing
secure position.
5. Severance for Reorganization or Restructuring. A proposed new section "I" to
TIVIC 1. 1 2.1 1 0 would allow the City Manager and the Director of Utilities the
discretion to authorize a different type of severance benefit in the event they
undertake a reorganization or streamlining effort that eliminates a position. The
amount of this benefit would be limited to the delegated contracting authority of the
City Manager or the Director of Utilities, which is currently $50,000.
6. Section 457 Deferred Compensation. A proposed amendment to 1.12.115.E
would remove a limitation on providing employer contributions under the City's IRC
Section 457 Deferred Compensation Plan. This incentive benefit would only be
available to secure or retain key management personnel in unrepresented positions.
The amount of the benefit is limited by the delegated contracting authority of the City
Manager or Director of Utilities, and the applicable IRC limit, which currently is less
than the delegated contracting authority.
7. Removal of One Step Per Year Limit on Utility Executive Positions. An
amendment to TIVIC 1. 1 2.640 would remove the one step per year limitation on the
Utilities executive positions identified below. The one step per year limitation on
these positions was enacted when salary ranges for these positions were modified
to reflect a market study completed in 2005. The limitation was designed to phase in
the increases needed to correct the significant disparity between prior salaries and
the market survey. Because the top of the modified salary ranges reflect the market
average, however, the limits have acted to delay or prevent the incumbents in these
positions from reaching the market average. The removal of this limit will eliminate a
barrier to retaining and recruiting key qualified employees in these positions. With
the removal of this limit, increases for these positions will be governed by the same
criteria as all other executive positions: non-automatic step increases, with
progression based on market and/or an executive performance appraisal conducted
by the appropriate hiring authority.
Subj: Proposed Ordinance to Clarify and Expand Compensation Tools
July 5, 2007
Page 4
Below are the positions for which this limitation will be removed:
Customer Services Manager Telecommunications Manager
Energy Services Manager Transmission & Distribution Manager
Generation Manager Deputy Utilities Director
Power Superintendent Rail Superintendent
Deputy Power Superintendent Water Superintendent
Power Manager Utilities Director
8. Increased Reporting to the City Council. Currently, the Plan requires the City
Manager and Public Utilities Director to submit annual reports to the City Council
identifying additional compensation or benefits authorized specifically by
Sectionl.12.110.H ($15,000 peremployee, with a $100,000 cap). The proposed
amendments would expand the reporting requirement to moving expenses and
temporary housing costs, severance benefits associated with employment
agreements, severance benefits associated with reorganizations, and contributions
to IRC Section 457, Section 457(f)(1) or Section 401 Plans.
By this Memorandum, staff requests your authority to seek City Council approval of the
proposed ordinance. Please do not hesitate to contact me (x2500) if there are any
questions.
cc: Mark Cassidy, Interim Human Resources Director
Elizabeth Pauli, City Attorney
Attach.
Utility Board
City Manager/Utilities (for Utilities Reporting
Item Dept. Directors Director As proposed Director) As Drooosed Requirement
-i---Ad-ditional No $15,000 per year, capped at No change No $1 5, 000 per year Yes
Compensation* $100,000 (1.12.1 1 0. H)
Reasonable & Necessary Yes
-Wo
2 ving expenses No Reasonable & necessary No change No
(1.12.110.D)
3 Temporary lodging No Within "additional compensation" Up to 3 months reasonable & No Up to 3 months reasonable & necessary Yes
caps under 1. 1 2.1 1 0. H necessary
4 Temp. Housing No Within "additional compensation" 80% of increase in comparable No 80% of increase in comparable housing, up to 3 Yes
Supplement caps under 1. 1 2.1 1 0. H housing, up to 3 years years
5 Severance per No No Up to contracting limits ($50,000) No Up to 1 year Yes
Employment
Agreement*
Severance for No No Discretionary up to contracting limits No No change Yes
layoffs under a ($50,000)
reorganization plan
-f--M-ministrative To exempt Within 'additional compensation" To exempt employees with no limit No To Utilities Director with no limit Yes
leave* employees - no caps under 1. 1 2.1 1 0. H
limit 1.12.250.C.2
(no reporting
requirement to
Council)
8 401- Defined No Up to contracting limits No change Only on Council Yes, subject to ]RC limit (currently $45,000) Yes
contribution* ($50,000) (1.12.116) (but also approval
subject to IRC of $45,000)
9 457 Deferred No No Up to contracting limits ($50,000), No Yes, subject to IRC limit (currently $15,500) Yes
Comp** also subject to I RC limit of $15,500
457f - Special No Up to contracting limits No change Only on Council Yes, subject to applicable IRC limits
deferred comp* ($50,000) (1.12.115), subject to approval
applicable [RC limits
11 Step Limit on Utility N/A Utilities Director authority limited Limitation removed, with increases Authority limited Limitation removed, with increases governed by No
Executive Positions to I step/year increase (NIA for governed by same criteria as all to 1 step/year same criteria as all other executive positions:
City Manager) other executive positions: non- increase non-automatic step increases, with progression
automatic step increases, with based on market and/or an executive
progression based on market and/or performance appraisal conducted by the
an executive performance appraisal appropriate hiring authority
conducted by the appropriate hiring
authority
Limited to unrepresented positions only, in order to secure or retain key management personnel
This amount is considered "compensation" for purposes of TERS contributions
Ordinance No. 27636
First Reading of Ordinance: JUL 2 4 2007
Final Reading of Ordinance:IJUL 3 1 Z007
Passed: JUL 3 1 2007
Roll Call Vote:
MEMBERS AYES NAYS ABSTAIN ABSENT
Ms. Anderson
Mr.Evans
Mr. Fey
Ms. Ladenburg
Mr. Lonergan
Mr. Manthou
Mr. Stenger
Mr. Talbert
-Mayor aarsma
MEMBERS AYES NAYS ABSTAIN ABSENT
Ms. Anderson
Mr.Evans
Mr. Fey
Ms. Ladenburg
Mr. Lonergan
Mr. Manthou
Mr. Stenger
Mr. Talbert
Mayor Baarsma
i.,Icityclk@cityclk\formslord-roll. doc