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HomeMy WebLinkAbout2008-02-20 Council Packet - Work Sessionu -~~:~I N ., WEDNESDAY, FEBRUARY 0, 200 :0 P.M. KENAI CITY COUNCIL CRAM E E. COLA A~11D POLICE SALAI~t T UCTURE *A LI HT MEAL ILL B ID. ~~~\ tl~eu~of KENA1~ SKA "Village wit~i a Past, Gc~ wit~i a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 aii~ Telephone: 907-283-7535 /FAX: 907-283-3014 ,~ Ir 7992 MEMO: /~ TO: City Council (~~FROM: Rick Koch ((~88°6° DATE: February 15; 2008 SUBJECT: FY 2009 Budgeting, Employee Salary Cost of Living Adjustment (COLA) The purpose of this memorandum is to inform the Council of the intention of the administration regarding a COLA in the administration's proposed FY 2009 budget. hl FY 2005 a 7.0% COLA was included in the adopted budget. The Anchorage Consumer Price Index (CPI) increased by 3.1 % during the 2003 Calendar year. It is my understanding the 7% COLA was an adjushnent not only for the what was then the .,urrent increase in CPI, but tc , e::ect a.. adjnst:::ent ~r years m t e past when a COLA was not included in the budget or the COLA was below the actual CPI. Based on the above, my calculations assume in FY 2005 employee salaries were fully adjusted for increases to the CPI. The following is the history of COLA's since FY 2005 Anchorage City of Kenai Fiscal Year CPI COLA Difference 2006 2.4% 2.0% -0.4% 2007 3.8% 3.0% -0.8% 2008 2.2% 2.0% -0.2% Cumulative Difference -1.4% The CY 2008 increase in the CPI for Anchorage is 2.9%. To fully adjust the COLA to accomlt for non-budgeted fractional CPI increases over the previous three years, and for the CY 2008 increase, a COLA of 43% is recommended by the administration. Absent opposition on the pact of the Council the administration will prepare a budget based on that COLA. For your information, each 1% COLA increases persom2el costs by roughly $ 70,000. If you have any questions, please contact me at your earliest convenience. ~\ ~~~, ~ ~,_, __ tyre c~~ o f KENA~ S((11 "!/ilfa~e witiLt a Past, Gc wit~t a Fi~tu~e ~~ 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 ~ II ~„ Telephone: 907-283-7535 /FAX: 907-283-3014 i~ I.~ 7992 MEMO: TO: City Council FROM: Rick Koch DATE: February 17, 2007 SUBJECT: Proposal to Re-Structure Kenai Police Department (KPD) Salary Schedule The purpose of this correspondence is to propose a re-structure of the salary schedule as it applies to Police Officers, Patrol Sergeants, the Lieutenant, and the Police Chief. Summary of the Issue or Problem Since the Alaska Legislature modified the Public Employees Retirement System (PERS) from a Defined Benefits Program to a Defined Contribntior. Program, law en ~rcement agencies throughout Alaska have faced increased challenges in recruiting law enforcement officers. Smaller departments have faced additional challenges in trying to recruit officers because of the higher salaries and other incentives being offered by the Anchorage Police Department (APD). While there are salary/hlcentive differences across the entire salary schedule between the KPD and APD, this proposal attempts to address the problem we currently are facing with the recruitment of new officers, both for new recruits, and for lateral transfer of certificated officers. We presently have a patrol officer position that has been vacant since October, and we have no qualified applicants for the position. This problem is unique to the recruitment of law enforcement officers. We have not had difficulties in recruiting qualified persomlel for other city positions at the current salary schedules. Background, Assumptions, and Other Important Information All the law enforcement agencies we researched in this analysis share a common problem, it is difficult to recruit adequate numbers of qualified individuals to maintain staffing of law enforcement officers. I wish to emphasize, the problems appear to be in recruiting, not retaining officers (other than retirement). Both APD and the Fairbanks Police Department (FPD) have recently begun offering advanced placement within the salary schedules for both recruits and lateral transfers to address this problem. A memorandum of agreement (MOA) between the Municipality of Anchorage and the Anchorage Police Department Employees Association, dated August 28, 2006, increases the base hourly compensation for a recruit from $ 21.20 per hour to $ 26.49 per hour (24.95% incease}, and increases the base hourly compensation for a lateral entry program officer from $ 26.49 per hour to $ 27.89 per hour (5.29% increase). While the majority of my analysis is between the APD and KPD it is not my intent to mirror APD's salary schedule. h has been stated by those with historica11a1owledge of the KPD, that we can be competitive with APD in recruitment if our salary structure is within 20% of theirs. In preparing this proposal, I accept The assumption that working in Kenai at KPD provides other quality of life benefits which make us competitive at a lower salary schedule. I have excluded some items of compensation from my analysis. These are overtime, special assignment pay, court appearance pay, and call-in/call-back pay. APD Officers are provided the opportunity to work a significant amount of overtime while KPD Officers are not, and I was unable to quantify the other compensation items, so they were not included. If these items were included, the difference in compensation between similar pay grades at APD and KPD, would be greater. Attempting to solve this problem requires taking atwo-step approach. Step one, is to determine the appropriate placement of KPD law enforcement officers on the salary schedule to provide sufficient monetary incentives to successfully recruit new officers. Step two (if step one modifies the existing schedule) is where to place the present employees on the new salary schedule. STEP ONE -MODIFY EXISTING SALARY SCHEDULE Option Number One - Do Nothing, Retain Current Salary Schedule for KPD Officers Description -Maintain the current salary schedule. PROS - 1. Lowest cost. By maintaining the current salary schedule there will be no increase in payroll/compensation costs to the City. 2. Other city employees do not feel "under appreciated" as a result of the police deparhnent being "singled out" for salary re-structuring. CONS - 1. Recruitment of new officers, both for recruits, and for lateral transfers of certified officers will become increasing more difficult as Alaskan law enforcement agencies more aggressively compete for recruits and lateral transfers. The APD has shown it will aggressively attempt to recruit officers from other law enforcement agencies throughout Alaska, and will come to our community to do so. 2. KPD maybe forced to reduce the qualifications presently required of it's recruits/officers in order to fill vacant positions. Option Number Two - Modify the City of Kenai Salary Schedule for Police Officers, Patrol Sergeants, the Lieutenant, and the Police Chief. Description -Modify the Classification Plan as follows: Class Present Proposed Code Class Title Grade Grade 314 Police Trainee 13 16(A) 305 Police Officer 14 16(B) 304 Police Sergeant 16 18 303 Lieutenant 18 20(exempt) 106 Police Chief 22 23 The following summarizes the compensation comparison between KPD Police Trainees (recruits), Patrol Officers and Patrol Sergeants: Present Compensation Proposed Compensation Classification Difference (%1 from APD Difference (%) from APD Recruit -25% -8% Patrol Officer -20% to -29% -6% to -15% Patrol Sergeant -19% to -30% -8% to -18% The detailed analysis of the above information is shown on the attached Exhibit "A". The Lieutenants position will be re-classified from grange 18 to a range 20 and made exempt. The Police Chief position will be reclassified from a range 22 to a range 23 and made eligible for qualification pay. PROS - 1. Provides sufficient compensation to compete with other Alaskan law enforcement agencies to re: ruit new officers. Recniit eomper_sation is within 8% of APD, and lateral transfer compensation is within 7% if hired at 16C range/step. 2. It is not necessary to lower standards for KPD Officers. 3. While not a problem at present, this will assist in retaining existing Officers. CONS - 1. Most expensive alternative. Budget impacts are discussed in Step Two 2. Other city employees may feel "under appreciated" because of increase in compensation for a single department. Administration Recommendation - ®ption Number Two STEP TWO -PLACEMENT OF PRESENT RE-CLASSIFIED OFFICERS SERGEANTS LIEUTENANT & POLICE CHIEF WITHIN SALARY SCHEDULE If Council is ui agreement with the administration's re-classification proposal under step one, then the administration proposes decreasing by two steps the present step placement for all Officers, Sergeants, and the Lieutenant. The administration also proposes to decrease by one step the present step placement for the Police Chief. The fiscal impact of the administrations proposal is to increase personnel costs by $ 88,775.82. The following table represents the above referenced classifications in the department. This analysis is specific to the existing structure: Increase In Position Compensation Police Chief $ 4,059.00 Lieutenant 480.48 Sergeant # 1 4,616.58 Sergeant# 2 4,313.03 Sergeant # 3 4;616.58 Patrol Officer # 1 4,426.51 Patrol Officer # 2 3,773.92 Patrol Officer # 3 3,638.53 Patrol Officer # 4 3,503.15 Patrol Officer # 5 3,638.56 Patrol Officer # 6 4,181.12 Patrol Officer # 7 3,909.30 Patrol Officer # 8 3,773.92 Patrol Officer # 9 3,638.53 Patrol Officer # 10 3,638.53 Patrol Officer # 11 3,909.30 Patrol Officer # 12 (vacant) 6,051.13 A detailed al9aiysis of the above info~~nation is shown on the attached Exhihit "B". Also attached please find Exhibit "C" summarizing the increased cost of implementing the proposed re-classification. Thank you for your attention in this matter. 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E d m W s w It ~ W ~ W O U m U ~ W 0 0 0 W Q m a M o m m m c. ,c co u~ ~o ~ co ~n ~o co m co y O Ol N N a c p `° E _ ~ d U d ~ N M a C O G O ^ _ '~ ~ C C C it # # # # # # # # # iL # C V C V '~- ' O ~. a a a a U a U a U a U a U d U d U d U a U d U d U d L] C h a c m m d '•C `.C `C ~ ~ `~ `~ ~ `•E `.E ~ w d _ o ~ m m w 0 0 0 0 0 0 0 0 0 0 0 0 a U ~ ~ a o 0 0 0 0 0 0 0 0 0 0 0 0 o a L d N N N N N N N N N N N N N N N J U ~ a a a a a d d d a a a a a a d m a N m_ O rn m U O O m N O a. Administration Proposal Present Increase Two Grades Condition Decrease Two Steps Base Salaries $ 1,034,744.00 $ 1,091,094.00 Total Monetary Compensation $ 1,187,510.00 $ 1,253,678.15 Cost of Total Compensation Package Less Health care $ 1,553,492.73 $ 1,642,268.55 Amount Greater Than Current Compensation Package Less Health care $ - $ 88,775.82 Percent Increase over Present Compensation Package 0% 5.71 o9S 2/18/2008 PUBLIC NOTICE NENG~ SNN Public Notice is hereby given members of the Kenai City Council and administration will meet in a work session on February 20, 2008 to discuss FY09 budget issues, including acity-wide COLA increase and Kenai Police Department salary structure. The work session wilt be held in the Kenai City Council Chambers, located at 210 Fidalgo Avenue, Kenai and begin at 5:30 p.m. Contact the Kenai City Clerk's office at 210 Fidalgo Avenue, Kenai, 283- 7535, extension 231 with questions. Carol L Freas, City Clerk D/