PORT OF SEATTLE

MEMORANDUM

SUBJECT: Resolution No. 3633, Second Reading and Final Passage.

2010 Salary and Benefit Resolution

BACKGROUND

The Salary and Benefit Resolution delegates authority from the Commission to the Chief

Executive Officer to direct the administration of compensation and benefits for non-represented

employees. The purpose of these programs is to ensure that the Port’s pay and benefit programs

are competitive with the labor market and support retention and attraction of capable staff

committed to achieving the Port’s mission.

This section has been amended to stipulate that changes to the Chief Executive Officer’s pay or

salary range adopted by Commissioners in open session would prevail over any similar and

contradicting terms or conditions contained in the Resolution.

Section VI.B.

This section is updated to give Commissioners discretion in determining the salary range for the

Chief Executive Officer. The resolution previously granted discretion to the Commission in

determining pay for the Chief Executive Officer.

Section IX.

COMMISSION AGENDA

Tay Yoshitani, Chief Executive Officer

November 13, 2009

Page 2 of 3

Exhibit A

The Exhibit is updated to reflect increases to the ranges for Police and Fire Chiefs, Deputy

Chiefs and Assistant Chiefs. The increases to these ranges maintain an established differential

between the ranges for chiefs and represented employees in the Police and Fire Departments.

III.A. Salary Ranges: We recommend no increase to salary ranges for 2010. At the

beginning of the Port’s 2010 budget cycle, we recommended a 1.5% salary range increase.

However, due to budget constraints and the current economic environment no increase is

recommended at this time. Maintaining the current range structure through 2010 could present

retention and hiring challenges if hiring activities in the local labor market increase substantially

before the end of 2010 as increases in hiring activities are often accompanied by an upward

pressure on actual pay levels.

Salaries of the Port’s non-represented employees fall within a graded salary range structure.

employees at the Port earn performance-based pay increases and rarely receive automatic

increases.

Each year, the compensation staff reviews and analyzes data from various salary surveys to

determine how our pay ranges compare to average market pay rates. This analysis is the basis

for adjustments to the Port’s ranges. This is different than the CPI change approach most public

employers use. This year, our analysis of the labor market indicates the Port’s salary ranges are

an average of 1.2% below market.

In addition to the customary annual market pricing analysis that market prices all non-

COMMISSION AGENDA

Tay Yoshitani, Chief Executive Officer

November 13, 2009

Page 3 of 3

the market and the Port’s pay for non-exempt jobs. We will again evaluate the comparisons to

market next year using the processes developed this year and may recommend changes in 2011.

X. ADMINISTRATION OF RETIREE MEDICAL AND RETIREE LIFE BENEFIT

PROGRAMS

This new section is being added to document the existing practice of providing medical and life

plans. Because retirees will be paying the full cost of their coverage, the Port’s OPEB liability

related to retiree medical benefits will be eliminated.

II.A. Salary Ranges: Exhibit A is attached to the Salary and Benefit Resolution and is a

schedule of authorized non-represented job titles. Though Salary Ranges require the approval of

Commission or the Chief Executive Officer; amendments to Exhibit A do not require this level

of approval. Exhibit A is amended and published quarterly by Human Resources and

Development to reflect the outcomes of on-going job evaluation work.

REQUESTED ACTION