City Proposal and Evidence for Impasse with LPOA

July 2009

 

ISSUE:  COMPENSATION

 

City

LPOA

Approximately 1% ($81,115) available for compensation adjustments for 2010.  This amount would fund the full merit step program ($54,491) with $26,624 available for other adjustments.  Other compensation opportunities as outlined below.

 

City will fully fund the competency (skill incentive) program for 2010.

 

Total Cost:  $81,115

 

Difference * from LPOA cost assuming 2% general wage adjustment in 2010: $135,606; assuming 1% general wage adjustment in 2010:  $81,115(*see note below)

For Two Year Agreement (2010 and 2011):  LPOA desires 4% general wage adjustment over the two year period in any combination of increases, in addition to the full merit step program.

 

Assuming a 2% General Wage Adjustment ($162,230) plus full merit step program ($54,491) in 2010.  Total Cost:  $216,721

 

 

Total Cost:  Unknown/Dependent upon scenarios

 

City Justification:

·         The City’s compensation and benefit package is within the market. 

§ A salary and benefit survey jointly conducted in May 2009 indicated that the City of Lawrence was over in both the median range minimums and maximums for the detective rank, and over survey median minimum range for the police officer position. (See the salary survey summary and detail salary survey and benefit survey sheets.) The survey indicated that the City of Lawrence was under approximately 2% of the survey range maximum for police officer.  The City believes that its compensation ranges are within market for the LPOA-covered positions and that the City is a competitive and desirable employer.

§ There are a number of compensation elements that are not included in the base pay.  The 2008 actual median gross salary, including overtime, longevity, etc., is the following:

·         Police Officer:         $64,866.32

·         Detective:              $89,006.41

§ The City has a very generous benefit package.

§ The City is aware that a number of our peer cities are making no pay adjustments for 2010. These include the cities of Overland Park, Lenexa and Shawnee.

§ The City believes that we should continue to monitor base pay annually. 

·         The City’s proposal will enable full funding of the step merit system for 2010 and provide some modest upward movement for those who are at top of scale.

§ The City’s proposal will enable the full funding of steps on anniversary date for MOU-covered employees.  The step system offers a 2.5% or 5% adjustment, based upon performance, on anniversary date for those individuals who are not yet at the top of the pay range.  Police officers are eligible for additional competency (skill incentive) adjustments of up to 2.5% each.

§ Additionally, $26,624 would be available for adjustments for individuals who are at the top of scale.  The City proposes these bonuses be allocated based on a flat amount that does not accrue to base.  The bonuses would be provided to each topped out individual on the first full pay period of 2010.  The dollar amount would be determined based upon the number of topped out individuals on December 31, 2009 and dividing the funds available by that number.  Based upon the projected number of individuals who will be at the top of the scale, this would provide approximately $500 for each individual at the top of the pay scale.

·         Longevity pay is budgeted at the full rate for 2010. 

§ Longevity pay is a benefit that very few peer communities offer. 

§ The City’s 2010 budget includes full funding of longevity pay, a pay item which is determined annually at the City Commission’s discretion, and which recognizes our tenured employees by providing employees with over five (5) years of service with a payment commensurate with service. 

§ At the rate of $4 per month of service, this equates to $480 for a 10-year employee and $960 for a 20-year employee.  The total estimated 2010 longevity compensation for the police bargaining group is approximately $60,000.

·         Police Officers will continue to have opportunities for a variety of skill based incentives (competencies) which enable additional compensation opportunities on top of base pay.  

§ These skill based incentives provide opportunities to add 2.5% on to base pay per competency.

§ The City is budgeting an additional approximately $50,000 for new Police Officer competency opportunities in 2010.

·         Recruitment and retention rates indicate that the City is a desirable employer.

§ During the most recent recruitment for police officer, the City received over 100 applications. 

§ Over the past one (1) year period (July 2008-June 2009), there have been ten (10) MOU-covered individuals leave City employment.  Based upon the total number of MOU covered employees of 122, this equates to a low 8% turnover rate.  Of the ten (10) individuals who left City employment, two (2) left due to retirement and two (2) left due to disability, so the turnover rate would be 4% if those individuals were excluded from the calculation.

·         The City’s revenues are not growing at the same pace as previous years.

§ Sales tax and property tax are a main source of general fund revenues.  While assessed valuation has typically grown at a rate of over 5% annually, assessed valuation is expected to decrease 0.8% for 2010.  Sales tax is also not growing at historic rates.  Sales tax is anticipated to grown 2% in 2010.  The attached chart shows historic compensation growth trends compared to key revenue trends.

·         The City’s proposal is fair to all employees of the City.

§ The City Manager’s recommended budget includes an approximate 1% of salary allocation for salary adjustments in 2010 for all employees.  To allocate more to the adjustments to the MOU groups would not be fair to other City employees.  The City’s proposal utilizes the same 1% allocation available to other City employees. 

·         *Note:  City’s estimate of cost differences between the City and LPOA proposals differs from the LPOA estimate due to LPOA utilizing tighter projections.  Cost projections of the proposals can be thought of as a range with the LPOA projections representing the low end of the range and the City’s projections representing the high end of the range.  The City believes its projections are more appropriate for budgeting purposes.

 

 

ISSUE:  LONGEVITY

 

City

LPOA

City language proposes emphasizing the discretionary nature of longevity and indicates that the City Commission has several options related to the longevity issue, including funding it at the rate of $4 monthly, $2 monthly, or any other such amount as the Commission determines appropriate. 

 

The City Manager’s Recommended 2010 Budget includes full funding of longevity at the $4 monthly rate for 2010. 

 

The approximately cost of longevity for the LPOA is $60,000 for 2010.

LPOA language proposes emphasizing the discretionary nature of longevity and indicates that longevity shall be credited at the $4 monthly rate.

 

 

 

 

 

 

 

City Justification:

·         The City’s proposed language provides the maximum flexibility for the City Commission. 

§ The LPOA language seemingly limits the City Commission’s options to funding at the $4 rate, or nothing.  The City’s proposed language offers the City Commission several options for funding longevity.  However, both language proposals emphasize the discretionary nature of the longevity payments. 

 

ISSUE:  WELLNESS LEAVE

 

City

LPOA

City willing to reduce the sick leave accumulation threshold from 850 hours to 240 hours provided the City and LPOA can agree to the other terms.

Desires reduction of the sick leave accumulation threshold from 850 hours to 240 hours at which point wellness leave may be earned and wants to be able to carry over wellness days over two years. 

 

City Justification:

·         Wellness leave proposal from LPOA is appropriate if the other elements of the City’s proposal is accepted.

 

ISSUE:  COMPETENCIES

 

City

LPOA

City willing to increase the number of non-perishable competencies as desired by the LPOA, provided that the City and LPOA can agree to other terms. 

Desires an increase in the number of certain non-perishable competencies from three (3) to four (4), while maintaining the maximum at six (6).   

 

City Justification:

·         Competency increase proposal from LPOA is appropriate if the other elements of the City’s proposal is accepted.

 

ISSUE:  TERM OF AGREEMENT

 

City

LPOA

The City desires a two (2) year agreement.   The City proposes a wage opener during 2010 to discuss 2011 wages.  The City proposes that the agreement only be extended to 2011 upon mutual agreement between the City Commission and the LPOA.

Proposes a two (2) year agreement.  Desires a firm commitment from the City on wages for both years. 

 

 

 

City Justification:

·         A two (2) year agreement would allow for the continuation of agreement language for 2010 and 2011, while still providing flexibility to address 2011 wages. 

§ The City’s proposal of opening discussions for 2011 wages during 2010 would ensure that wages are discussed for 2011.  Also, other agreement language would continue for a two (2) year period.

§ The City’s language indicates that the agreement would only be extended to 2011 upon mutual agreement between the City Commission and the LPOA.