HomeMy WebLinkAboutOrdinance No. 3419-2024Sponsored by: Administration
CITY OF KENAI
ORDINANCE NO. 3419-2024
AN ORDINANCE AMENDING SECTIONS OF KENAI MUNICIPAL CODE TITLE 23 - PERSONNEL
REGULATIONS, SECTIONS 23.05.070 - DEFINITIONS, 23.25.070 - ACTING POSITIONS, 23.30.030 -
PROBATIONARY PERIOD FOR EMPLOYEES IN THE CLASSIFIED SERVICE, 23.30.110 — TRAVEL
EXPENSE, 23.40.040 - TERMINAL LEAVE, 23.55.020 - COMPENSATION STRUCTURE BY GRADE
FOR EMPLOYEES IN THE CLASSIFIED SERVICE, 23.55.030 - QUALIFICATION PAY, AND 23.55.080
- LONGEVITY PAY FOR EMPLOYEES IN THE CLASSIFIED SERVICE, TO ENSURE APPROPRIATE
COMPENSATION AND BENEFITS TO CITY EMPLOYEES COMPARABLE TO OTHER PLACES OF
PUBLIC EMPLOYMENT IMPROVING RECRUITMENT AND RETENTION OF QUALIFIED
EMPLOYEES.
WHEREAS, pursuant to KMC 23.15.010, the City Manager prepares and recommends revisions and
amendments to the personnel regulations as deemed necessary; and,
WHEREAS, the City and other comparable government employers have experienced workforce
challenges in recent years, which have made additional efforts necessary to recruit and retain qualified
employees to meet the needs and expectations of the community; and,
WHEREAS, the City contracted with McGrath Human Resources Group to perform a Classification Study
and work with the Administration and an internal personnel working group to develop an overall
compensation and classification recommendation for the City; and,
WHEREAS, McGrath Human Resources Group presented its Classification, Compensation, and Benefits
Study results to the City Council at the April 3, 2024 Kenai City Council Meeting; and,
WHEREAS, the recommendations include an update to the City's salary structure to add two steps (DD-
EE) to the end of the schedule, adjustments to qualification pay, acting pay, longevity pay, probationary
period, part-time employee compensation structure, and travel reimbursement; and,
WHEREAS to ensure compensation is competitive for comparable positions in other places of public
employment and uniform in application, the City Manager recommends amendments to the personnel
regulations necessary to provide an appropriate compensation structure to recruit and retain qualified
employees.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS
FOLLOWS:
Section 1. Amendment of Section 23.05.070 of Kenai Municipal Code: That Kenai Municipal Code,
Section 23.05.070 — Definitions, is hereby amended as follows:
23.05.070 Definitions.
Probationary Period. An employee appointed to a position in the classified service must serve a
Probationary period, [NORMALLY SIX (6) MONTHS, EXCEPT FOR POLICE, COMMUNICATIONS AND FIRE,]
which is normally twelve (12) months. This period can be extended up to, but no longer than [, TWELVE
(12) MONTHS AND] eighteen (18) months[, RESPECTIVELY].
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Section 2. Amendment of Section 23.25.070 of Kenai Municipal Code: That Kenai Municipal Code,
Section 23.25.070 — Acting positions, is hereby amended as follows:
23.26.070 Acting Positions.
Compensation During Temporary Assignment. An employee who is temporarily assigned to and
performs duties of a position with a higher pay range for a period of forty (40) or more consecutive
regular work hours for employees not performing fire protection activities and fifty-six (56) or more
consecutive regular work hours for employees performing fire protection activities shall be paid [AT
THE FIRST STEP OF THE HIGHER PAY RANGE, OR, THE EMPLOYEE SHALL BE GRANTED A ONE (1) STEP PAY
INCREASE, WHICHEVER IS HIGHER]an additional ten percent (10%) of the employee's current range and
step, for the period worked in the temporary assignment. An employee who is temporarily assigned
to a position with a lower pay range, for any period, shall not receive a reduction in pay. No such
temporary assignment shall exceed six (6) months. Such acting appointments shall be in writing and
the employee must perform the duties of the position.
Section 3. Amendment of Section 23.30.030 of Kenai Municipal Code: That Kenai Municipal Code,
Section 23.30.030 — Probationary period for employees in the classified service, is hereby amended as
follows:
23.30.030 Probationary Period for Employees in the Classified Service.
(a) All original appointments for employees in the classified service including those that result from
transfers shall be tentative and subject to a probationary period of not less than [six (6) MONTHS
CONSECUTIVE SERVICE, EXCEPT FOR POLICE, FIRE, AND COMMUNICATIONS, WHICH SHALL BE NORMALLY]
twelve (12) months[, SUBJECT TO MEETING CRITERIA FOR CERTIFICATION WHICH MAY BE ACCOMPLISHED
FOLLOWING SIX (6) MONTHS OF SERVICE AND EXCEPT FOR SEASONAL EMPLOYEES WHOSE PROBATIONARY
PERIOD IS ESTABLISHED BY THE TERM OF THE FIRST SEASON OF EMPLOYMENT]. Promotional appointment
probationary period shall, for all employees in the classified service, be not less than [six (6)] twelve
months.
(b) In cases where the responsibilities of a position in the classified service are such that a longer period
is necessary to demonstrate an employee's qualifications, the probationary period may be extended;
however, no probationary period shall be extended beyond [TWELVE (12) MONTHS, OR] eighteen (18)
months [FOR POLICE, FIRE, AND COMMUNICATIONS, OR ONE (1) ADDITIONAL SEASON FOR SEASONAL
EMPLOYEES]. The employee shall be notified in writing of any extension and the reasons therefor.
(c) Upon completion of the probationary period, employees in the classified service shall be considered
as having satisfactorily demonstrated qualifications for the position, shall gain regular status, one (1)
step in pay raise, and shall be so informed through his or her supervisor. The employee's anniversary
date shall be the first of the month in which the employee's original probation ends. Employees who
have gained regular status at the effective date of the ordinance codified in this section shall have
their anniversary dates changed to the first of the month in which the employee's present anniversary
date falls.
(d) During the probationary period, a new employee hired in the classified service may be terminated at
any time without advance notice, without cause, and without appeal.
(e) In the case of promotional appointments, the promoted employee may be demoted at anytime during
the probationary period without appeal; provided, that the probationary employee be reinstated in
the class designation from which he or she was promoted, even though this necessitates the layoff
of the employee occupying the position.
Section 4. Amendment of Section 23.30.110 of Kenai Municipal Code: That Kenai Municipal Code,
Section 23.30.110 — Travel expense, is hereby amended as follows:
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23.30.110 Travel Expense.
When employees are required to travel outside the City on City business, reimbursement, subject to
advances received, for expenditures incurred shall be determined as follows:
(a) Prior to traveling outside the City, the employee shall obtain permission for the trip and the mode of
travel from the department head.
(b) Travel on official business outside the City by one (1) individual shall be via public carrier or City -
owned vehicle whenever practical. If, for extenuating circumstances, the employee is authorized to
use a private vehicle, total mileage shall be paid at the standard IRS mileage rate. This rate includes
all travel, insurance and fuel.
(c) Classified and department head service employees who often use their privately owned vehicle for
City business shall be reimbursed thirty dollars ($30.00) per month or the standard IRS mileage rate
whichever is greater, subject to authorization by the City Manager.
(d) The authorized per diem rates are [FIFTY DOLLARS ($50.00)] fifty-nine dollars ($59.00) per full twenty-
four (24) hour day, plus lodging expenses. Part days will be reimbursed for actual costs incurred, up
to [FIFTY DOLLARS ($50.00)] fifty-nine dollars $59.00 per day. Claims for lodging expenses will be
supported by receipts.
Section 6. Amendment of Section 23.40.040 of Kenai Municipal Code_ That Kenai Municipal Code,
Section 23.40.040 — Terminal leave, is hereby amended as follows:
23.40.040 Terminal Leave.
Upon separation [DURING INITIAL PROBATION (FIRST SIX (6) MONTHS FOR POLICE, FIRE AND
COMMUNICATION), ACCRUED ANNUAL LEAVE SHALL NOT BE GRANTED NOR PAID TO EMPLOYEES IN THE
CLASSIFIED SERVICE. IN OTHER SEPARATIONS], accrued leave shall be paid in a lump sum, except for
separation during initial probation. in which accrued annual leave shall not be paid in an amount to
exceed eighty (80) hours. The salary or hourly rate to be used in computing the cash payment shall
be the rate which is being received by the employee on the date the resignation/separation is signed
by the employee.
Section 6. Amendment of Section 23.55.020 of Kenai Municipal Code: That Kenai Municipal Code,
Section 23.55.020 — Compensation structure by grade for employees in the classified service, is hereby
amended as follows:
23.66.020 Compensation Structure by Grade for Employees in the Classified Service.
(a) Compensation structure by grade for employees in the classified service is hereby established in
accordance with the most recent salary schedule effective upon enactment by City Council of the
ordinance adopting a budget for the following fiscal year or by resolution.
(b) On completion of the probationary period, each [PERMANENT FULL-TIME] employee in the classified
service [, EXCEPT SEASONAL EMPLOYEES,] shall be advanced one (1) step. At succeeding anniversary
dates, subject to an evaluation of "Meets Expectations" or better," the employee [S IN THE CLASSIFIED
SERVICE] may be advanced a step increment subject to City Manager approval. The time period
normally between steps B to C to D to E to F is one (1) year. The time normally between Steps F to
AA to BB to CC to DID to EE is two (2) years.
[(C) ON COMPLETION OF THE PROBATIONARY PERIOD, EACH PERMANENT PART-TIME EMPLOYEE IN THE
CLASSIFIED SERVICE AND SEASONAL EMPLOYEE SHALL BE ADVANCED ONE (1) STEP. AT APPROPRIATE
BIENNIAL OR QUADRENNIAL ANNIVERSARY DATES THEREAFTER, SUBJECT TO THE EMPLOYEE'S MOST
RECENT ANNUAL EVALUATION BEING "MEETS EXPECTATIONS" OR BETTER, THE EMPLOYEE, INCLUDING
SEASONAL EMPLOYEES, MAY BE ADVANCED A STEP INCREMENT. THE TIME PERIOD NORMALLY BETWEEN
STEPS B TO C TO D TO E TO F IS TWO (2) YEARS. THE TIME PERIOD NORMALLY BETWEEN STEPS F TO AA TO
BB TO CC IS FOUR (4) YEARS.]
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Section 7. Amendment of Section 23.55.030 of Kenai Municipal Code: That Kenai Municipal Code,
Section 23.55.030 — Qualification pay, is hereby amended as follows:
23.55.030 Qualification Pay.
(a) In recognition of professional development, personal time, and effort of the individual to achieve
same, the following annual recognition entitlement is authorized, payable on a pro rata monthly
basis.
(b) This recognition entitlement, except senior officer pay, investigator pay, certified municipal clerk pay,
and driver/operator pay, is not considered when calculating hourly rates for annual leave or holiday
pay.
(1) Police Department.
(i) Certification in accordance with State of Alaska Certification Standards as follows:
[POLICE OFFICER]
Intermediate Certification
Advanced Certification
[POLICE SERGEANT
INTERMEDIATE CERTIFICATION
ADVANCED CERTIFICATION
POLICE LIEUTENANT
ADVANCED CERTIFICATION
POLICE CHIEF
ADVANCED CERTIFICATION
[$1,800/YEAR] An additional 2.25% of step A of the Police
Officer range. Eligible grades are Police Officer and
Police Sergeant.
[$3,000/YEAR] An additional 3.75% of step A of the Police
Officer range. Eligible grades are Police Officer, Police
Sergeant. Police Lieutenant. and Police Chief.
$1, 800/YEAR
$3, 000/YEAR
$3, 000/YEAR
$3, 000/YEAR]
(ii) Recognition Pay for Qualified Senior Officers. Senior officer pay is for police officers who
have completed [STEP 21 E] five years of service with the City of Kenai subject to an overall
evaluation rating of "Meets Expectations" or better, as follows:
[ADVANCE ONE (1) PAY GRADE FROM 21E TO 22E] An additional 5% of the employee's
current range and step.
(iii) Recognition pay for qualified field training officer personnel for officers temporarily assigned
field training officer duties for eligible shifts only as follows:
Five percent (5%) increase of the employee's current range and step.
iv Recognition pay for qualified "investigator" personnel for temporary assignment as an
investigator when the assignment is the employee's primary assignment and the
assignment has been approved by the City Manager or designee as follows:
Five percent (5%) increase of the employee's current range and step.
(v) Recognition pay for qualified Public Safety Dispatcher personnel for employees temporarily
assigned dispatcher training duties for eligible shifts only as follows:
An additional five percent f5% of the employee's current range and step.
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(2) Fire Department.
(i) Recognition entitlement for an associate degree in fire science is four hundred eighty
dollars ($480.00) per year. Eligible grades are fire fighter, engineer, and captain.
(ii) Recognition entitlements for EMT certification for eligible grades of fire fighter, engineer,
[AND] captain, Fire Marshal, Deputy Fire Chief. and Fire Chief are as follows:
EMT / EMS [I INSTRUCTOR] [$250/YEAR] An additional one-half percent (.5%) of step A of
the Firefighter range.
[EMT II $500/YEAR]
EMT III / Advanced Emergency Medical Technician (AEMT)
[$1,000/YEAR (INCLUDES EMT li PAY)] An additional two and
one -quarter percent (2.25%) of step A of the Firefighter
range.
[EMT -]Paramedic [$1,500/YEAR (INCLUDES EMT II AND III PAY)] An additional five
percent (5%) the employee's current range and step
(Included AEMT Pay.
(iii) Recognition entitlements for driver/operator qualified personnel for eligible grades of fire
fighter are as follows:
Driver/Operator Qualified [ONE (1) PAY RANGE INCREASE (PAY RANGE 18 TO PAY RANGE
19)] An additional 5% of the employee's current range and
step
(3) Water and Sewer Utility. Certification in accordance with the State of Alaska Certification
Standards.
W & S II $300/year
W & S III $480/year
(4) City Clerk's Office. Certification in accordance with International Institute of Municipal Clerks.
Certified Municipal Clerk 2.5% of the employee's base pay
(5) Building Plans Examiner.
Recognition Pay for certification in accordance with the International Code Council as a Building
Plans Examiner beyond the basic requirements of the employee's position. which provides
substantial cost savings or additional benefit to the City, upon recommendation by the Department
Head and approval of the City Manager as follows:
An additional 2.25% of step A of the employee's current range and step.
Section 8. Amendment of Section 23.55.080 of Kenai Municipal Code: That Kenai Municipal Code,
Section 23.55.080 — Longevity pay for employees in the classified service, is hereby amended as follows:
23.55.080 Longevity Pay for Employees in the Classified Service.
All regular employees who have received an overall rating of "Meets Expectations" or better in their
last performance evaluation and who have been at Step [CC]EE for a period of at least two (2) years
as of July 31 st shall be paid a longevity bonus of two percent (2%) of his or her annual pay rate (i.e.,
excluding overtime). The longevity pay shall be paid just once a year on the August payroll, except
that the longevity bonus in 2008 shall be paid after the effective date of the ordinance codified in this
section but prior to the end of the calendar year 2008. Notwithstanding the above, any employee in
the classified service who has received a range increase or a non -cost of living pay increase within
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their current pay range within the twelve (12) months prior to July 31st is not eligible for a longevity
pay bonus.
Section 9. Severability: That if any part or provision of this ordinance or application thereof to any
person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall
be confined in its operation to the part, provision, or application directly involved in all controversy in
which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder
of this title or application thereof to other persons or circumstances. The City Council hereby declares
that it would have enacted the remainder of this ordinance even without such part, provision, or
application.
Section 10. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days
after enactment.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, f
ATTEST:
Michelle . S er, M C, City Clerk
Introduced:
May 15, 2024
Enacted:
June 5, 2024
Effective:
July 5, 2024
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KFNAI
City of Kenai 1210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 www.kenaixity
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Terry Eubank, City Manager
Scott Bloom, City Attorney
FROM: Stephanie Randall, Human Resources Director
DATE: April 11, 2024
SUBJECT: Ordinance No. 3419-2024 — Amending Kenai Municipal Code Title 23
Personnel Regulations
The City contracted with McGrath Human Resources Group (McGrath) to conduct a Classification
Study. Working with an internal personnel working group of City employees, McGrath developed
an overall compensation and classification recommendation for the City. McGrath and Human
Resources Director Stephanie Randall presented the recommendations to the City Council on
April 3, 2024. The recommendations encompass several key updates to the City's salary
structure. These include adding two steps (DD-EE) to the end of the schedule, adjustments to
qualification/certification pay, acting pay, longevity pay, probationary period, part-time employee
compensation structure, and travel reimbursement. These changes, designed to enhance the
City's personnel regulations, are necessary to provide an appropriate compensation structure to
recruit and retain qualified employees.
Below is a sectional analysis for the proposed code changes included in the Ordinance.
Section 1. This section amends 23.05.070, which defines the probationary period for employees
in the classified service, except for public safety positions, as six months and public safety
positions as 12 months, to change the probationary period to 12 months for all positions. City
employees are eligible for a one-step pay raise upon satisfactory completion of probation.
McGrath recommended extending the City's pay schedule with the intention that employees
would be eligible for step A-F on an annual basis, subject to a satisfactory evaluation. Based on
the recommendation of McGrath, to ensure consistency across positions and to align the City with
industry standards, an amendment to Section 23.05.070 to make the probationary period 12
months for all positions is recommended.
Section 2. This section amends 23.25.070, which provides acting pay to an employee temporarily
assigned to and performing the duties of a position with a higher pay range for 40 or more
consecutive regular work hours (56 hours for employees performing fire protection activities).
Depending on an employee's current step placement and whether the employee is acting in the
Department Head Service or in the capacity of a position appointed by the City Council, which do
not have a "first step," acting pay ranges from an additional 2% to, in some cases 40% and, in
one case, an almost 96% pay increase. This amendment changes acting pay from the first step
of the higher range or a one-step pay increase to a fixed increase to 10% of the employee's
current range and step, providing a fairer compensation approach. Based on the recommendation
of McGrath and to ensure a fair and equitable approach to acting pay, the amendment to change
acting pay to 10% is recommended.
Section 3. This section amends 23.30.030, which provides for a 6- or 12-month probationary
period for employees in the classified service. As described above, an amendment to Section
23.30.030 to make the probationary period 12 months for all positions is recommended to ensure
consistency across positions.
Section 4. This section amends 23.30.110, which provides a $50 per diem rate per day for
employees traveling on City business outside of the City. The City's authorized per diem rate was
established in 1977 at $20 per day plus lodging expenses and increased to $50 in 2005 to adjust
for inflation and has not been adjusted since. Per diem is an allowance paid to employees, City
Council members, and Commissioners for meals and incidental expenses incurred when
traveling. This allowance is in lieu of paying actual travel expenses, is not part of an employee's
wages, and is not taxable to the employee unless the rate is more than the federal per diem rate,
which is set each year. Per diem typically covers lodging, meals, and incidentals, and the standard
non -specified rate is $59 for Meals & Incidentals (M&IE). The reimbursement for employees who
habitually use their privately -owned vehicle for City business was set at $30 per month in 1981
and has not increased since then. Employees who use their privately -owned vehicle more than
the set amount have been reimbursed at the standard IRS mileage rate. To ensure employees
are adequately reimbursed for travel expenses, an amendment to Section 23.30.110 to increase
the per diem from $50 to $59 and provide a mileage reimbursement is recommended.
Section 5. This section amends 23.40.040, which prohibits the City from paying an employee
accrued annual leave if the employee is terminated before completing probation. Employees are
allowed to take leave during the probationary period and may terminate for various reasons
beyond the employee's control. Based on the City's former policy that employees could not take
leave during the probationary period, which has since been abolished, an amendment 23.40.040
to allow employees to be paid up to 80 hours of accrued leave upon separation during the
probationary period and reflecting the extended probationary period, is recommended.
Section 6. This section amends 23.55.020, which sets the period when full-time and part-time
employees are eligible for step increases. The City's compensation structure by grade differs for
full-time and part-time employees. This is true even when employees hold the same position as
a full-time employee but work part-time. While full-time employees are eligible to advance one
step annually for steps B-F and every two years for steps AA -CC, part-time employees are only
eligible to advance every two years for steps B-F and every four years for steps AA -CC. Based
on McGrath's recommendation to extend the City's pay schedule additional steps (DID and EE)
and recommendation that all positions be paid the same pay range and afforded the same step
adjustments at the same time intervals regardless of employment status (part-time or full-time) to
ensure fairness and internal equity, an amendment to 23.55.020 to align the eligibility criteria for
step increases between full-time and part-time employees is recommended.
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Section 7. This section amends 23.55.030, which establishes qualification pay for employees in
recognition of professional development, personal time, and effort for Police Department, Fire
Department, Water and Sewer Utility, and Clerk's Office employees.
Police Department. Qualification pay for Police positions was established in 1978 and
increased to the current amounts in 2020 to address the recruitment and retention of
qualified officers. This increase included recognition pay for qualified senior officers, field
training officers, and investigators. The pay for Senior Officers was modeled after a one -
pay range increase for qualified Driver/Operator positions established in the Fire
Department and is based on the employee's step placement. The certification pays for
comparable positions in other places of public employment are calculated on an hourly
basis or as a percentage of the base or regular hourly rate, which allows the pay to adjust
annually based on adjustments to the salary schedule or pay plan. To ensure
compensation is competitive for comparable positions in other places of public
employment and apply qualification pay uniformly to promote efficiency and economy, an
amendment to 23.55.030 to calculate certification pay as a percent instead of a flat rate is
recommended. This change to Recognition Pay for Qualified Senior Officers would
account for the pay more correctly as Certification Pay rather than change an employee's
base pay and classification. There is no additional cost associated with amending
Recognition Pay for Qualified Senior Officers because the cost to advance an employee
one pay grade from 21 E to 22E is the same as an additional 5% of the employee's current
range and step. Qualified Senior Officer pay is considered when calculating hourly rates
for annual leave and holiday pay. Overtime would also be calculated to include this
recognition pay.
Fire Department. Qualification pay for Firefighters was established in 1978 and increased
to the current amounts in 1981. In 1981, $1,000 represented 3% of a firefiighter's annual
pay. Today, EMT I I I pay represents 1 % of the base hourly rate. In 2013, a one -pay range
increase for qualified Driver/Operator was adopted based on a compensation comparison
with Engineer positions in neighboring fire departments. The Fire Marshal, Deputy Fire
Chief, and Fire Chief positions are not listed in the Code as positions eligible for EMT III
pay; however, employees in these positions have received this pay at the recommendation
of the Department Head and previous City Administration based on the benefit provided
to the City, as these positions are required to participate in fire suppression and other
emergency situations. No employees are receiving EMT II pay, as most Fire Department
employees are receiving EMT III Pay or have not yet achieved minimum certification
requirements. The change to Recognition Pay for Driver/Operator positions would account
for the pay more correctly as Certification Pay rather than change an employee's base
pay and classification. There is no additional cost associated with amending
Driver/Operator pay because the cost to advance an employee one pay grade is the same
as an additional 5% of the employee's current range and step. To reflect the increase in
compensation since 1981, ensure compensation is competitive for comparable positions
in other places of public employment, and apply qualification pay uniformly to promote
efficiency and economy, an amendment to 23.55.030 to remove EMT II pay, increase
certification pay and calculate pay as a percent instead of a flat rate is recommended,
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The City of Kenai I wwwkenaixity
include all positions required to participate in fire suppression 'and other emergency
situations is recommended.
Building Plans Examiner. To ensure the City meets the terms of its agreement for
exemption of plan review and deferral of life safety inspections with the State of Alaska,
to encourage employees to pursue certification beyond the basic requirements of their
position, and to provide additional benefit to the City, an amendment to 23.55.030 to add
a new type of certification pay as an additional 2.25% of step A of the employee's current
range and step for employees who obtain certification in accordance with the International
Code Council as a Building Plans Examiner, which provides substantial cost savings or
additional benefit to the City, upon recommendation by the Department Head and approval
of the City Manager is recommended.
Section 8. This section amends 23.55.080, which establishes longevity pay as a lump sum
payment of 2% of an employee's base pay for employees who have been at the last step (Step
CC) of the City's pay schedule for two years. Longevity Pay was adopted in 2008 to reward
employees for their long-term service with the City based on its short pay model, which allowed
employees to reach the maximum step in 10-10.5 years. McGrath recommended extending the
compensation system to an 11-step model, which allows employees to reach the maximum step
in 15 years. Longevity Pay for comparable public employers ranges from lump sum payments of
2-2.5%, with some employers either not having longevity pay or providing an annual bonus to all
employees with at least one year's service. Based on the recommendations of McGrath and to
ensure compensation is competitive for comparable positions in other places of public
employment, an amendment to 23.55.080 to change the last step from CC to EE is recommended.
As part of the Administration's proposed implementation of the updated pay schedule to an 11-
step model, employees currently eligible for a longevity bonus who would see a non -cost of living
pay increase would no longer be eligible for the longevity bonus under the City's Code. To ensure
that no employees receive a decrease in annual pay, the longevity bonus amount is considered
part of the total annual pay for employees in longevity when placing employees in the new
schedule to ensure that the employee moves to the step closest to what they are earning without
taking a decrease in pay.
These amendments aim to enhance the City's compensation and classification structure, ensuring
fairness, competitiveness, and alignment with industry standards.
Thank you for your consideration.
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