Memorandum

City of Lawrence

City Manager’s Office

 

TO:

David L. Corliss, City Manager

 

FROM:

Diane Stoddard, Assistant City Manager

 

CC:

Cynthia Wagner, Assistant City Manager

 

Date:

 

July 26, 2010

RE:

Amendments to Memorandum of Understanding Agreements with IAFF Local 1596 and the Lawrence Police Officers Association regarding Compensation for 2011

 

Please place the following item on the City Commission agenda for August 3, 2010:

 

Approve Amendments to Memorandum of Understanding Agreements between the City of Lawrence and the IAFF Local 1596 and the Lawrence Police Officers Association regarding Compensation for 2011, if appropriate. 

 

Background:

In 2009, the City Commission authorized separate Memorandum of Understanding Agreements between the City and the IAFF Local 1596 and the Lawrence Police Officers Association (LPOA).  These agreements cover the years 2010 and 2011, except they provided a provision to discuss compensation for 2011 during the 2010 year. 

 

City staff and both employee groups have been in separate discussions regarding the compensation issues since late April.  An agreement has tentatively been reached between the parties, and now requires approval from the City Commission.

 

The City Manager’s recommended budget for 2011 includes full funding of step/merit increases for 2011 for both police and fire employee groups. These programs provide for increases of 2.5% or 5% on anniversary date for those not topped out within covered employee pay grades.  The estimated cost of this program for the IAFF Local 1596 group is $50,000 in 2011. The estimated cost of the merit/step program, along with the competency program, which awards pay in relation to achievement of specific training, educational achievement, special assignment, etc., for the LPOA is $107,000 in 2011. 

 

Amendment Details:

The amendments have different provisions for each employee group.  Below is a summary of the major provisions of each amendment for 2011. 

 

          IAFF Local 1596:

·         Addition of one step at the top of all covered employee pay grades within the fire pay plan, enabling employees currently at the top of range to be eligible for one additional step of 2.5% in 2011- estimated cost $65,000

 

LPOA:

·         1.5% general wage adjustment for police officers only with no adjustment for detectives – estimated cost $106,500

 

Amendment Justification:

It has been an important goal of the City to remain competitive regarding salary and benefits with other peer communities in order to enable the City to recruit and retain quality employees.  This year, the peer city salary surveys, which compare the City of Lawrence to the general market cities of Lenexa, Olathe, Overland Park, Shawnee, Topeka and the Unified Government of Wyandotte County, demonstrated a need to make slight adjustments as reflected in the recommended amendments for 2011. This is further explained below.

 

Additionally, city employees will be required to absorb a 5% increase in health care costs in 2011, either through increases in premiums, plan design changes, coinsurance, deductibles or a combination of these items.  The increase in health care costs further justifies the upward movement in compensation for 2011 that is recommended in the amendments. 

 

          Fire/Medical:

The survey comparing the City of Lawrence to the peer communities showed that with the three positions for which matches were identified, the City’s positions were generally appropriately positioned related to the minimums of the salary range.  However, the maximums of the salary ranges were falling slightly behind the market median.  The addition of a step (2.5%) at the top of each of the ranges for 2011 will assist with this issue and is justified related to Lawrence’s market position.

 

Below is information related to 2009 base and gross total salaries for MOU-covered Fire/Medical staff.

 

 

Police:

The survey comparing the City of Lawrence to the peer communities was not agreed to during the negotiation discussions.  However, the salary information collected indicated that the detective ranges were above the peer cities in both the minimum and maximum salaries of the range.  However, it was agreed that the maximum of the salary range for police officer at Step 19 was below the market median.  The provision of a 1.5% general wage adjustment for the police officer position, along with a range adjustment of 1.5% will assist with this situation. The survey also justifies no change in detective salary at this time, related to the market comparisons.   

 

Below is information related to 2009 base and gross total salaries for MOU-covered Police Department staff.

 

 

 

 

Requested Action:

Authorize the Mayor to sign the amendments to the Memorandum of Understanding agreements with the IAFF Local 1596 and the Lawrence Police Officers Association providing for compensation adjustments for 2011.