Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
10c
ACTION ITEM
Date of Meeting
November 10, 2020
DATE: October 22, 2020
TO: Stephen P. Metruck, Executive Director
FROM: Tammy Woodard, Director Human Resources – Total Rewards
Ann McClellan, Total Rewards Manager
Sandra Spellmeyer, Total Rewards Manager
SUBJECT: 2021 Salary and Benefits Program
ACTION REQUESTED
Request introduction of Resolution 3781: A resolution of the Port of Seattle Commission
establishing pay ranges for non-represented jobs and authorizing benefits that comprise the
overall benefits package offered to non-represented Port employees and amending the Salary
and Benefits Policy Directive established by Resolution No. 3739.
EXECUTIVE SUMMARY
The Salary and Benefits Resolution is the Port Commission’s authorization to revise the program
that provides pay and benefits to the Port’s non-represented employees. The Resolution
establishes the pay ranges for non-represented jobs and authorizes updates to benefit plans
that comprise the overall benefit package offered to non-represented Port employees. This
presentation will include a briefing to highlight recommended updates and changes to the
Policy Directive and an adjustment to non-represented pay ranges for 2021 and request a
motion on the introduction.
Following this briefing and introduction, staff will return to request the adoption of the Salary
and Benefits Resolution on November 17, 2020.
JUSTIFICATION
The Salary and Benefits program specifies the pay and benefit programs authorized by the Port
Commission, while administrative details of these programs are maintained in Port policies.
The program also includes benefits offered to Port of Seattle retirees and to Port
Commissioners, as well as the administrative details of these benefits. Updates to the program
are designed to keep the authorized pay and benefit plans current and to ensure the Total
Rewards package they are part of continues to support the attraction and retention of
COMMISSION AGENDA – Action Item No. 10c Page 2 of 3
Meeting Date: November 10, 2020
Template revised June 27, 2019 (Diversity in Contracting).
employees with the talents and abilities necessary for the Port to achieve its mission, vision,
and objectives.
DETAILS
Recommended changes to the Salary and Benefits Resolution
Adjustments to Pay Grades and Ranges for 2021
The Port’s goal is to have the pay ranges for non-represented jobs reflect the market pay rates
for Port jobs in these ranges. Annually, Human Resources staff analyze data from published
salary surveys for both public sector and private industry employers to determine how well our
existing pay ranges align with current market pay rates. The annual analysis also includes
analyzing data from salary planning surveys to determine what pay increases local employers
are anticipating for the coming year. Combining the data on how current ranges compare to
market with data on anticipated pay increases provides the basis for determining any
recommended range adjustment for the coming year.
This year, our analysis indicates that the Port’s current pay ranges for non-represented
employees are 1% above market. Additionally, Puget Sound area employers are reporting an
expected 2021 overall average pay increase of about 2.8%. Based on this analysis, we are
recommending a 2.0% pay range adjustment to ensure that we maintain the Port’s non-
represented pay ranges at market competitive levels through 2021.
While not directly relevant to our pay range analysis, we also surveyed public employers in the
Puget Sound area to determine what they are projecting for their range adjustments. The pay
programs at most local public employers are based on changes to the Consumer Price Index
and include cost-of-living increases for employees equal to their range adjustments. The cost-
of-living adjustments are in addition to possible step and/or merit increases. At the time of our
survey this year only five of the 14 employers we surveyed were able to provide a projected
range adjustment amount. The available projected 2021 range adjustments range from 0% to
3.0% and average at 1.4%.
With the recommended 2021 pay range adjustment, we estimate that approximately 11
employees will have pay rates that fall below the 2021 range minimum and the estimated
annual cost of increasing these employees’ pay to the new range minimum will be about
$13,000.
As part of the analysis that leads to the pay range adjustment recommendation, we also
consider the City of Seattle minimum wage. In 2021, the City of Seattle minimum wage will be
$16.69/hour for large employers (with 501 or more employees) and the Port’s high school
intern rate will be $17.56/hour. With the recommended 2.0% salary range adjustment for
2021, all non-represented pay ranges will have range minimums above the City of Seattle
minimum wage.
COMMISSION AGENDA – Action Item No. 10c Page 3 of 3
Meeting Date: November 10, 2020
Template revised June 27, 2019 (Diversity in Contracting).
Holidays
We recommend adding June 19
th
as an additional Port-paid holiday in observance of
Juneteenth. Juneteenth, otherwise known as Black Independence Day, commemorates the
day in 1865 when enslaved people in Galveston, Texas heard the news of their freedom, two
years after President Lincoln issued the Emancipation Proclamation. It is currently observed in
all but three states in the U.S. This year, a bill was introduced in the Washington State House of
Representatives to propose making Juneteenth an official state paid holiday and would also
formally recognize February as Black History Month. There is also a possibility that it may
become a nationally recognized official paid holiday at the federal level.
Definitions
We recommend adding a new definition for “Project-related Temporary Assignment” to
address utilization of these types of temporary assignments. A Project-related Temporary
Assignment is an assignment for a full-time or part-time employee that is generally expected to
last no longer than four years. Extensions to these types of assignments are only allowed in
special circumstances with approval from Human Resources management.
Policy Establishing Jobs, Pay Grades, Pay Ranges, and Pay Rates
In follow-up to the recent Commission-directed change to the description of Internal Audit
Director contained in the salaries and benefits policy directive, based on previous action taken
at the October 27, 2020, meeting to amend the Commission’s Bylaws and Rules of Procedure to
reflect dual reporting of the position functionally to the Commission, delegated to the Audit
Committee, and administratively to the Executive Director -- Section 5.1(A)(3) Internal Audit
Director is amended.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
No alternatives were considered; the process necessary to update the Salary and Benefits
Resolution is governed by Port Commission processes and RCW 53.08.170.
ATTACHMENTS TO THIS REQUEST
(1) Draft Resolution No. 3781 and Attachment A
(2) Exhibit A to original Policy Directive: Schedule of Authorized Non-Represented Jobs
(3) 2020 Pay Ranges for Non-Represented Jobs (for information only)
(4) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None
