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H2. Resolution 5924 - Non-Union Salary AdjustmentMONTANA City of Kalispell Post Office Box 1997 - Kalispell, Montana. 59903 Telephone: (406) 758-7701 Fax: (406) 758-7758 MEMORANDUM To: Mayor Johnson and City Council From: Doug Russell, City Manager Re: Non -union salary adjustment Meeting Date: June 17, 2019 BACKGROUND: Each year the Council reviews the recommendation to adjust the wages of employees not represented by one of the three collective bargaining units. As identified in the budget transmittal letter, and discussed during budget sessions, a total compensation adjustment of approximately 3.18% was included in the budget for non -union employees. This amount is consistent with the anticipated increase that has been, or is being, negotiated with our three labor unions in order to maintain an equal compensation across all employees. The increase includes a 1.3% step increase on the market based pay matrix and a 1.88% base adjustment. The attached matrix also identifies several new classifications to account for updated job descriptions, organizational design components, and shifting market landscapes. These classifications do not represent new personnel. The classifications include a new classification for IT Director (renaming the previous classification as IT manager), Assistant Director of Human Resources, Police Lieutenant, and GIS Manager. FISCAL IMPACT: The increase for the recommended implementation is approximately $105,464. This amount has been included in the preliminary FY2019 budget and is spread across numerous funds (general, enterprise, special revenue, etc.). RECOMMENDATION: It is recommended that the City Council approve Resolution 5924, adopting a 1.3% step increase and a 1.88% base adjustment to the adopted pay matrix. RESOLUTION NO. 5924 A RESOLUTION ADJUSTING THE SALARY AND COMPENSATION OF THE CITY OFFICIALS, SUPERVISORS, AND ALL OTHER NONUNION EMPLOYEES PURSUANT TO TITLE 7, CHAPTER 4, PART 42, M.C.A. COMMENCING ON THE DATE INDICATED HEREIN. WHEREAS, the City of Kalispell is a general powers city of the state of Montana and is authorized by MCA. 7-4-4201 to set the compensation and salaries of its elected and appointed city officers by resolution of its City Council; and WHEREAS, by Ordinance No. 1623, the Kalispell City Council determined that it is in the best interests of the city and the efficient governance of the city that the compensation and salaries of the city employees be set from time to time by resolution of the Kalispell City Council; and WHEREAS, the City of Kalispell employs elected officials, appointed city officers as well as other nonunion employees who are not otherwise represented under a collective bargaining agreement; and WHEREAS, the City of Kalispell regularly collects data of the salaries paid by Montana cities to their employees to determine the salary market rate for each of the nonunion positions within the city and has thereby developed and adopted a market based wage and salary matrix; and WHEREAS, the City Council finds that it is fair and equitable based upon the average contractual increases received by those city employees represented by collective bargaining units to increase the salaries and compensation of the city appointed officers and nonunion employees for FY2020 in the amount of 1.88% in addition to the 1.3% step increase implemented pursuant to the market based wage and salary matrix effected in the prior year. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS: SECTION 1. The salaries and compensation of city appointed officers and nonunion employees for the period of FY2020, beginning July 1, 2019, shall be paid consistent with the wage and salary matrix attached hereto as Exhibit "A" along with an additional 1.3% increase. Appropriations shall be made to pay same when due. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS 17TH DAY OF JUNE, 2019. Mark Johnson Mayor ATTEST: Aimee Brunckhorst, CMC City Clerk