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Home My WebLink About09-20-2011 * cmoF -� * - COUNCIL OPERATIONS COMMITTEE "` WASHINGTON September 20, 2011 4:30 PM CONFERENCE ROOM 3 ' CITY HALL,2ND FL AGENDA I. CALL TO ORDER—4:30 PM II. APPROVAL OF MINUTES A. August 9, 2017 III. COUNCIL COMPENSATION VI. ADJOURNMENT Page 1 . * QITYOF -=-�'"�%s'�' * COUNCIL OPERATIONS '� COMMITTEE '� WASHINGTON August 9, 2011 5:00 PM , . CONFERENCE ROOM NO. 3 CITY HALL,2ND FLOOR MINUTES 1. CALL TO ORDER Chair Rich Wagner calied the meeting to order at 5:00 p.m. in Conference Room No. 3 located on the second floor of Aubum City Hall located at 25 West Main Street in Aubum. - Members in attendance induded Chair Wagner, Vice Chair Sue Singer, and Member Nancy Backus. Also in attendance were City Attomey Daniel B. Heid and Deputy City Clerk Cathy Richardson. 11_. APPROVAL OF MINUTES A. August 4, 2071 �ce Chair Singer moved and Member Backus seconded to approve the August 4, 2011 minutes of the Council Operations Committee. MOTION CARRIED UNANIMOUSLY. 3-0. III. ORDINANCE NO. 6373 _ An Ortlinance of the City Council of the City of Aubum, Washington, amending Section 2.51.020 of the Aubum City Code relaUng to compensation of Council me.mbers and the Deputy Mayor Chair Wagner displayed a chart comparing employee and City Council compensations. The chart indicated that employee benefits have increased by approximately 147% over that last twenty years while City Council benefits have increased by approximately 86% over the last twenty years. The chart also included comparisons of compensation offered by other local jurisdicfions of comparable population to the City of Auburn. The comparisons indicated that Aubum City Councif compensation was on the low side. Page 1 Council Oaerations Committee Minutes Aus�ust 4. 2011 Committee members reviewed employee, Mayor and Councilmember compensations over the last ten years. Committee members also discussed various altematives with regard to an increase in Councilmember compensation including options tied to the Consumer Price Index (CPI) and sales tax revenues. Committee members considered the option of an increase in Councilmember compensation°which would occur when 4he City's annual financial report indicates an increase in sales tax revenues of at least 2% over the previous years annual sales tax receipts, at which time 90% of the CPI would apply to an increase of that years Councilmember salaries. Increases to Councilmembe� compensation would thereafter be based on the CPI unless changed by further action of the Council. Committee memb.ers reguested that staff provide information on what type of eventswould triggera 2% increase in sales tax revenues. Member Backus stressed that Committee members are endeavoring to be sensitive to all of the parties involved while still being attentive to the needs of present and future Councilmembers. Committee members considered implementing payments of $50.00 per meeting for, attendance at appointed regional and county meetings aftended by Councilmembers• excluding City Council, standing Councif committees, C.ity boards and commissions, and other social meetings. Committee members also considered implementing a cap of $200.00 per month for attendance by Councilmembers at such meetings. Committee members also requested that staff provide information with regard to options for non-cash compensation such as health insurance payments, deferced compensation contri6utions, retirement contributions, and payment for city-related county and regional meetings outside of the regular City Council and- standing committee meetings with such information to be presented at the next Council Operations Committee. Page 2 Council Ooerations Committee-Minutes Auaust 4. 2011 VI. ADJOURNMENT There 6eing ho furtlier business to come before the Committee, the meeting adjoumed at 5:35 p.m. Rich Wagner, Catfiy Richardson, Chair Deputy City Clerk Page 3 Aubum Cfty Councilmembers'Salary Growth Over 20 Years Compared To Total City of Aubum Employees Also Councilmember Salarles of Various CIUes Are Compared Based On Population 'Averape eataries are anaym0�ere even Mough there is a witle 2nge of salaries artrong the various empioyee Uassifications.e.8�Gerks as compare0 lo supervisors. "Tlie mix of employee classlfiatlons is similar in 1991 and in 2071,so Ne averape salary increase percenfages can be reesonably derived from butlpet proxMi. 1991 1991 '1941 Y017 2011 2D11 °Percent Employees �IaHes 8 Average Employees �laries 8 Average Salary (FUII Time Wages Salary per (Fuli Time Wages Salary per Inerease Equivalents gud et Em 1 0 evuiva�ents) Bud t E l0 1991 to 2011 w�o Flre> 9 P%� 9e mP Y� Total City Employees 266.4 $8,639,700 $32,431 394.5 $31,652,660 $80,235 147% (eawel increase) City Coundimembers $6,300 $11,700 86°/a (aelual Increase) _ � �_.._.�.__......_ __._._...._..._.._._. ......._._...._......_....... ._....___.�._..._...... . City Coundlmembers (II yrey nad,ece6,eC sa,,,e inae,s, $15.588 147% as tomt emWoyees) Salary per morrth r------- -� It would reqWre a 33%salary inveasa frn i, oo TreM Line of Cily CourrcOmembe�s W make the'v salary 1 POpUlat10�14 VS 1 Feda'al way St.825 growlh equ21 M Ihe totai Cily employees' Ei,eoo Coundl Sala►I@S 747°,6 salary growth over 2D years. ..— ———— —� � � ($15,586-E11,700)I$11.700=33%} y1,400 p�yy�up 31,285 s,,soo � Ke�ca,,,as �aceya�.o�s � Burien 51,000 $1,000 MnUk Trc 5800 � � Aubum 5875 Renton$968 $800 Bothe18800 Kenmore$650 i Lekevrood$700 $800 � Lake Stevena E500 8400 � Walla Walla$400 $200 Mpl Vly 8 Pullman E300 Dota M1om NowmOar Mfcf I51§200 Tamme Nave Tribuna gp Population a�aaon�,Fio�urer o zo,000 ao,000 so,000 eo,aoo ioo,000 w.m�owmzu„ww J�e��n.m yv„ 6:w mn i.a� Ci annual sala o ulation moMhl sala Bothell ......._.... _._..$10.800_...._ .__.....33,436. .........._$800............ ._..__..__..___.__...._.._.......____. . . ......... . Burien $12,000 31,730 $1,000 ....._..................................................._.....__.. ..._...._.._....._.._._. _._._...._._._..._...._.. ._._...._._..._.............. Kenmore $7,800 20,650 $650 ....................................................................... _.........................._._.. .._.._.....__...._._..._... .._._............................ ._LaceY.............................. _._._$12.900......... ........._40;130 ........_$1;075.......... .._._................._. ........... . Leke Stevens $6,000 26,870 $500 ....................................................................... ................_._._.._....... .._.........._.._....._...... ................................... .............._......MaPIe.VelleY....................... ........._52;400 ........_23:130 ......._5200 ........... . .. ........... ._. ............ Mercer Island $2,400 22,890 $200 .................._...._...._....................................... .........._...._...._........... .........._._.................... ................................... Mountlake Terrace $9,600 20,960 $800 ....................................................................... ................._.............._ ...._......._......_._...... _................................. ........................._PUliman E3.600 ........?��:9p_..._. ._$300_......... .......................... ................................... . . .._.__. PuyalluP_........._..._......... _....._815_537 ___. ...._.. 38;900........ ........._$7,295 ......._...._.__......._. .. . ........... Walla Walls $4,800 31,770 $400 ......................................................._..._..._.... _...._...._._._._..�.. ._._._._.__._...__.. ._...._.......................... Aubum $11,700 67,�00 $975 ............................................................ ................................ .........______._._ .__._........................... ......................Federal WaY_...__.__._.. 519,500 88.760 $1,625 .__._..__._._._... __.__.__._....__._ .__._......._....._........... Kent $13,752 88,760 $1.146 .._._...._.._._._._.___._._._._...._._....._... ....._._._....._............... ..._....._._......._._._. _...._._._................. Renton $71.628 86,230 $969 ............................................._........_.._._....... ...._._._._...._.._.__ _..._..__._.__.....__ ................................... Lakewood $8,400 58,840 $70D crnroF �* * ` WASHINGTON MEIV�ORANDUM To: Council Operations Committee From: Administration Date: Septembgr 16, 2001 RE: Council Gompensation and Benefits Attached are the materials you requested for the September 19, 2011 committee meeting: • • A summary of Aubum Council compensation increases over the past 15 years, both when they were authorized and when they took effect • Survey of options for non-cash compensation beyond salary, e.g. health insurance payments, deferred compensation, 401 k contributions, PERS contributions, payment for City-related meetings outside of the regular CounciUCommittee meetings, and anything else. • A list of benefits currently adailable to non-rep�esented, regular FTE The City Council makes the decision on its salary/compensation. The Administration recommends that the Council consider adopUng some or all of the following benefits for all electeds: • Participation in deferred compensation (no cost fo 4he City) . Heatthcare (medical, dental antl vision) at the same cost as the non-affiliated, regular FTE_(requires a re-write of the City_Code; in.addition, 50% of elected officials must join medical plan; 75% in dental, and 100%o in vision to meet AWC undervuriting rules) , • Participation in VEBA (with o�without City-matoh); IRS requires the entire group to participate and contribute the same amount/percent • Participation in Aflac (individual choice) — no cost to the City . PERS - City contribution to back service credit and interest, if fully matched by electeds L'1CLERK�COUNCIL�EIeUedBenefilsMamo091611.doc a�i a� tWDURN * MORE THAN YOU IMAGINED COUNCIC INCREASES' Effective Date New Sala Prevfous Sala Comments � I Janua 1, 1988 $475:00 � $425.00 Fonthose eli ible i Janua 1, 1990 $525:00 ' $475.00 For;those eli ible � I ilanua 1, 1992 $600:00 i $525:00 ' For those.eli ible. Janua 1; 1994 • _ $675:00 I $600.00 Forthose eli ible' Janau 1;2002 � $800.00 $675.00 For those eli ible Janua 1, 2006 $975:00 $800.00 For3hose eli ible Councfl members may only receive increased pay following re-elelction date after the incease is effective. Council member election dates: Wagner February 5, 1990;January 1, 1994; January 1, 1998; January 1, 2002; January 1, 2006; January 1, 2010 Partridge January.l, 2010 � Singer January 1; 1996; January 1, 2000; January 1, 2004, January 1, 2008 Norman January 1,2004; January 1, 2008 - Peloza January 1, 2004; January 1,2008 8ackus July;T, 2003; January 1,2006; January 1, 2010 Haugen December 6, 1993; January 1,2008 C:�Documents and SettingslddaskamlLocal SettingslTemporaryJntemetFiies10LK43\CoundlSalades0908.xis Council Increases0911 9/16/2011 - 2011 Council Survev ; ��-�:_Sr:�; Mo Com Comments addiNonal Items not In saia � i I Lynnwood" $1,650 Medicare(1.45%); SS(6:2�0}; eligible for PERS; City pays.100°h for member healthcare, 6 of 7 participate; City pays 85°�for dependent j coverage; $100,00 Accidental Death or Dismemberment policy premiums paid by City; recent ordinance allows reduction in s6pend for ' meetin s noCattended did not receive a c O m ia $1,387 Medicare 1.45�0 ; SS 6.2�0 ; eli ible for PERS but none enrolled� no other benefits rovided � SeaTac' $1,200 C' contributes$103/mo to HRA EBA in lieu of heafthcare benefits; PERS eli ible, but none enrolled i Federal Way` $1,150 PERS eligibie, but none enrolled; $450/mo city conVibution to VEBA; Medicare(1.45°k); SS or deferred comp(6:2°�)-member's choice � KenY $1,148 Medicare(1.45%), SS(8.2°k); eligible for PERS, 6 of 7 council members belong; no contribution to deferred comp; eligible for Flex Plan �; w/member contribudon onty; Self-insured healthcare-City pays$618/mo toward member and/or.dependent medical, mem6er:pays remainin Puyaliup $1,142 Medicare(1.45�0)', SS(6.2%); City is self insured pays 100% health care full famfly(medical$1677/mo, $287/mo dental;$79/mo vision); Life insurance-$9.98/mo; Employee Assisfance Program (EAP); PERS eligible; $750/yr budgeted for mileage and misc expenses Kirkland $1,063 $300/mo in lieu of;medical and"other'benefits; City pays life insurance premium for 2x annual salary; members can pay into Flexible Spending Account fiealthcare.and/or day.care); member can join PERS or MEBT 2 Plan-no Ciiy contribution'into MEBT 2 � Brerrierton $1,000 Medicare 1.45°� ' SS 6:2% ; eli ible for PERS,,3 of 9 members artici ate; no other benefits Aubum $975 Medicare(1.45�0); SS(6:2%); City does not contribute to any deferred comp; eligible for medical, but none enrolled(must pay 100%of premium per City Code); eligible for Long-Term Care; eligible for PERS-one member enrolled; additional PERS credit for meeting attendance rf enou h hours to quali ; Redmond $950 Medicare(1.45°�); MEBT(SS replacement-6.2%, includes Long Tertn Disability and Survivor Life); no life or Accidental Death & Dismemberment(ADBD); eligible for PERS but none enrolled; eligible for deferred comp (no City match), but none enrolled; eligible for medical.-pay part time rate-(50°/a premfum for sel�-member pays$304.69 and City pays$304.70 per month -70°�for dependants $643:72-$1;067.37 de ndin on number of dependants, Ci a s remainin $530.71 -$813.15 Renton $950 Renton is self-insured; City pays for healthcare coverage.for members only(medicai incl vision $545.12/mo, denNal$51:52/mo); members pay 100%dependanfs; City paysfior life insurance policy for member equai to annual salary($1.37/mo)and$1,000($.4?Jmo) for each eligible dependant; City contributes 2°�to member's deferred comp choice; members are eligibie for RERS,4 of 8 are enrolled; members are eligible for flex acxount at own expense; unlimited free rides on various bus systems and well as various carpool and ride share o tions; C' a tor member enrollment in Ci Em lo ee Assistance Pro ram Bothell $900 Medicare 1.45% ; SS 6:2% ; eli ible for PERS but none enrolled; no other benefits rovided Des Moines' $833 Medicare(1.45%); SS(62%); $250/each regular and special council meeting attended-credit for 40 per year; eligible for PERS-no artici ants Edmonds'"' $600 $50/meeting w/max 8 meetingslmo(incl CC); City contributes to MEBT(SS replacement-6.2°� incl$75,000 life ins); City pays 90% i : medical remium for member $586.76/mo member a s 100°k for de ndants� eli ible for PER& Total 13,971 ' Avera e 1,075 ! Aub % of Ave 90.7% •Federal Way, Kent, 8 Des;Moines, SeaTac not normally incl in comparable cities list, however, we"look"at them since they are in our geographic region. "Edmonds-included the 2 monthly council meetings in the council figure C:1Documentsand Settings\ddaskamlLocal SettingslTemporary Intemet Files\OLK43\CouncilSalaries0908.xIs0911 8/i6/20119:06 AM CURRENTLY AVAICABLE BENEFITS Betow is a list of benefits currently available to City employees " 1 Section 457 Deferred Compensation Like 401 k wlslightly different distribution rules-5 providers, tax deferred savings(pre-tax payroll deductlon- reduced'income tax); employee contribu6on only 2 Volunteer Employee Benefits Association Known as"VEBA"; for qualified out-of-pocket medical expenses; all members mustjoimand confribute the same amounUpercentage (IRS rule); currentiy City conUibutes'a.match to non-affliated employees; contributions a�e pre-tax payroll deductions and are tax free upon conVibution,growth, and distribufion, no"use or lose"clause 3 Public Employee Retirement System** "PERS"-fivo program options PERS 2 or PERS 3; individual choice to 1) notjoin, 2)join.starting current term of service, 3)join including past service; if inember does not join upon elecGon, he/she and City must pay back contributions and interest(PERS is pre-tax payroll deduction) 4 Flexible Spending Account Qualified out of pocket medical expenses.(up to$3600/yr)and/or day care expenses(up to$5000lyear); individuai'choice on amount; employee canVibution only; "use of.lose"clause 141/2 monUis; pre-tax payroll 5 Healthcare Through AWG!Benefits Trust-50°�of ttie elected officials must participate in medical;75% in dental and 100% in vision;conflict between City Code(requiresmembers to pay 100°�of premiums);and AWGundervvriters;(50�0 of' medical premiums, 75%of dental,,and'100% of vision premiums to be paid'by the City-does not include dependents) 6 Long Term Care City pays employee's$1,000 basic plan, empioyee can "buy up"-payroll pre-tax deduction 7 Aflac Supplementary insurance-pays individual for certain medical incidents(not medical insurance)-premiums paid by member through pre-tax payroll deduction 8 Life:lnsurance $10,000 death benefit;-premiums paid by City 9 Short 8:long Term Disabilitqinsurance Premium paid by City(does notappear to be available to council mem,bers) '"'?U't"' 4 . . h; , r -�e- , � � = i . ry - , ,� . ,. . z,- -�'�`z4`" �'.3°..j� � ru `.'�r w�t i�_� Mx..i'"'Y r�a3w S� st��C� 1�'r3 { ? �a:'n` ;tj_.� !," 'p.�., �..�v t',. <� _ +..�i`� �� Jti�: • .Yi....... ,6 . 2� +4.�_ -. �„ ,� � "' Public Employee Retirement System If a memberjoins anytime duirng his/her initial term of election- member and City both pay contributions, plus interest if any If a member wants to claim previous service credit, he/she must go back to first election-can not go back part way-member is billed for all member and all employer conrtibutions, as well as all member and all employer interest C:\Documents and SettingslddaskamlLocal SettingslTemporary Intemet Files\OLK431CouncilSalaries0908.x1s AvailProgFams 9/16/2011