HomeMy WebLinkAboutRes2018-034Sponsored by: Hunt
CITY OF SEWARD, ALASKA
RESOLUTION 2018-034
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING A COST OF LIVING INCREASE OF 2.1% FOR
2018 AND A SEPARATE 2.1% FOR 2019 FOR ALL NON-IBEW
EMPLOYEES WITH THE EXCEPTION OF THE CITY MANAGER AND
THE CITY CLERK, AND APPROPRIATING FUNDS
WHEREAS, during the 2018/2019 Budget process, the preliminary budget proposed to
eliminate five positions from the General Fund to address the adverse impacts to Seward of recent
state budget cuts amounting to more than $650,000, plus the addition over the past few years of
$440,000 in new annual debt associated with the acquisition of a 330-ton boat lift at SMIC and a
road improvement general obligation bond, and while employees received no cost of living increase,
the City's merit increases and progressive increases were restored; and
WHEREAS, to avoid layoffs in 2018/2019, one position went unfilled in Finance, one
position is to be eliminated in the City Shop mid -way through 2018 with another Shop position
slated to be cut in 2019, nearly all overtime was eliminated from the General Fund, a vacancy factor
of I110,000 was built into the budget necessitating equivalent personnel savings from hiring delays
in order to meet the budget, and two custodial positions were added back to the budget through a
combination of short-term savings from one-time grant administrative fees paying for SMIC debt in
2018/2019; and
WHEREAS, the City Council agreed to consider reinstating some level of cost of living
increase upon determining the City's financial performance results from 2017, and the estimated
2017 surplus is expected to be at least $220,000, after having transferred $254,544 to the capital
acquisition fund in 2017; and
WHEREAS, the City Council desires to authorize a cost of living increase in the amount of
2.1 % for 2018 for all non-IBEW employees, excluding the city manager and the city clerk, and 2.1 %
for 2019 for all non-IBEW employees, excluding the city manager and the city clerk, with the
understanding that budget resources are becoming more and more constrained as cities throughout
Alaska feel the downstream impacts of State budget cuts, and it becomes more and more difficult to
sustain status quo services and employment levels, given these budgetary constraints.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. A cost of living increase in the amount of 2.1% is hereby authorized for all non-
IBEW employees, not including contract personnel, in regular employment status as of July 23, 2018,
retroactive to their date of hire or January 1, 2018, whichever is later.
CITY OF SEWARD, ALASKA
RESOLUTION 2018-034
Section 2. A cost of living increase in the amount of 2.1 % is hereby authorized for all non-
IBEW employees, not including contract personnel, in regular employment status as of January 1, 2019
and is effective the first day of the first full pay period beginning January, 2019.
Section 3. In the event a new union is formed before the effective date of either of the
authorized cost of living increases proposed by this resolution, all non-IBEW-union employees, other
than the city manager and the city clerk, shall also be eligible to receive these cost of living increases,
subject to the rights of the union to negotiate a labor contract.
Section 4. The 2018 personnel budget is hereby amended and funds are appropriated as
follows: 1) General Fund personnel budget increased $109,894 from the General Fund reserves account
no. 01000-0000-3400; 2) Harbor Fund personnel budget increased $18,697 from the Harbor Fund
reserves account no. 11000-0000-3400; 3) Parking Fund personnel budget increased $2,812 from the
Parking Fund reserves account no. 13000-0000-3400; 4) Electric Fund personnel budget increased
$7,954 from the Electric Fund reserves account no.15000-0000-3400; 5) Water Fund personnel budget
increased $5,791 from the Water Fund reserves account no. 17000-0000-3400; and 6) Sewer Fund
personnel budget increased $4,446 from the Sewer Fund reserves account no. 18000-0000-3400.
Section 5. The 2019 personnel budget is hereby amended and funds are appropriated as
follows: 1) General Fund personnel budget increased $113,793 from the General Fund reserves account
no. 01000-0000-3400; 2) Harbor Fund personnel budget increased $19,196 from the Harbor Fund
reserves account no. 11000-0000-3400; 3) Parking Fund personnel budget increased $2,873 from the
Parking Fund reserves account no. 13000-0000-3400; 4) Electric Fund personnel budget increased
$7,876 from the Electric Fund reserves account no. 15000-0000-3400; 5) Water Fund personnel budget
increased $5,910 from the Water Fund reserves account no. 17000-0000-3400; and 6) Sewer Fund
personnel budget increased $4,546 from the Sewer Fund reserves account no. 18000-0000-3400.
Section 6. This resolution shall take affect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 23rd
day of July, 2018.
THE CITY OF SEWARD, ALASKA
'Z4qq�u`ires.
DaMayor
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CITY OF SEWARD, ALASKA
RESOLUTION 2018-034
AYES:
Seese, Towsley, McClure, Casagranda, Keil, Squires
NOES:
None
ABSENT:
Horn
ABSTAIN:
None
ATTEST:
9--e—��, �'
Brenda J. Ballou, MMC
City Clerk f^ 9 y C e !�
(City Seal)
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Os lG.=+♦. n '.4
L�� G
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74n..
F�
Meeting Diate": April dap 20 1 8
C"Ay, Council
': 1, 1
"I'luou Jim Hunt, & Cty Mariager I I
From,: Kristm-Erchinger, Hnance Director
Agendia Itierri: Jkuttiorize 2.1 % cost, of living aiqjtitst�niertt for, 2018, and, 20,119for all employees exclud.ing the
IBE
10 W un-ion, =24ojees, city mana&rre,i ,an,,,d, citj, clerk,
I INN
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BACKGROUND & JIUSTIFICAT110N.1
Early 'in the process of pr,diget, the ("'Ity, Couticil and adin;,i,ni,stration sliaTed, t "he goal, of'
fundiin iner 'I ,g a cost of ng ease f,*or Cltv, employees. A serl",eS of signiffican't State budget cuts flow* g throug
City2015 to 2,018, have constrainedt,he City bludgiet, making "it difficult to maintai,n existing service and,
staf-fing levels let alone, oft"'erf 1 11 raises, to Cit C'Mr.)Ioy,ees. Fol.r example, fttndtng�foir co-nimun,i,t)r 'ails has, deefined,
P Y 00 f.11 I
$3,210,0010,,th.le Statie'Chas Nraceited, a, riumber of'offices in City fill all Flredticln,g lease revs ties 'by $15,000, Stae revienue
sharing has declined more than $2,00,000, ditspi'atch contracts h,av,e declined,$12150101, zuid other routine Sta,te, ffindiiig
sources, have declined.
During, the preparation of the,20116/2,017 Budget, to, balatice t,li.e'b,,u,d,geiid,,avol"d, layo.ff�, eniployee menl increases
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and cost of living increases, we're, ft-ozen, i,n, 1,1011-6 and, 2017 aii,d,sti,,,b,s,eque�i,,,it'l,y - baseld, on, piosi:t�ive 22,1015 financw]
perl'brmai.l lee - Council reinstaled a one, percent one-time bonu,s to emip'loyees on, August 6, 20161. Duringthe
2018/12019, budget proicess, reveillule prq , jections, fell short io'fmeeting expenditure reqsir ements and to avoui, layoiff�,
one, plosition, was, delayed in Finance, ofne pos'i , it , on, was identified -for, eliminatilion, 'in the City Shop mid -way through
I 'denti-fied for elimuiat' - "), 0 19 nearly all overtime was eliminated fromthie
2O 1, 8, canotheil, Shop, poisition was j. ton in.;-
Generalbtid.get, a vaciancy flactor of $1150,000 was built 1',titio, the budget requi.rtnIg an, equtvalerit level of
I cost smr*ng, from h f`ng delay,s,, and, two eus,tod*al po&ft, i.ons were eltm,tnated ia.nd tli,en added back, to the personnie, I S I 1 1, *t
budget tli-rough, a com.bi,,nation of shorti-term savings genieratied from one-tanegxrwiit 'f��es to pay, annual,
SMIC debt prat, per tli�,,an 'the, General Futid, "in 2018/210 19,
# I h When passnig 'the 'budget, 'for 2018/2019,Cou.nic."111 and w:eu sared thi1we des re to review the City's 2017
insitaing, son-lef meas, ure o,,'f' cost of' I s, a, er),rear-
finzanctal perfbntnance to detlem-l''ne t1w I,`eas,tb'l.'t, o' r6' tx,,mg increase ft
end. Based on prellmttiary figures, from,�rezar-end close, '"it appeail,s, the Gienera'll Fund, will close the yearwitha,
sLu,- lusof at "[east $,22,0.,(1)010 a,fter the Cit,�,ir tra,n&l'�:rred, S254,544 to, �the Capital Acquisition Fund during the year. The
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co,s,to,fa2,.I%cos,tofl'l�v'i,',n eaclio,f")01"1,8,ian,d,20�1,9jses,ti�nc ia, 1, g 1,, n iated 1 t $109,894 atid $11,31,7931, respecfively t"6r the
General Fund.
T'I'le, Cost of living of 2.1, %1 each year Is available to, a,ll, employees, of the City, except tli,ose in the IIBEW unlim the
cily managierand the cit�r clerk as the pay forthose, etiipl,q yejes is, neg,"Ot'lated by separate contract.
INT E N I
IBEW
I I" t,,, n
T"o, atahori ze a, 2. 1 ON) cota �in .2.01,8 and a 2. 1 1% ad.d * t, oiria col,a,,,� . 2,019 1- )r all employees, of Iffie, City exice
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union, etnp,lo)irees, the ci*tv, a,nager and, the c*ty clerk. 'hi, the eve'nt a separatem "on 's formed, eniployees of that ., M I II 'I
be entitled to, rece've th's cola for both. 2018 d 20119', sul�ject to, the uni,on"s right, to negot'ate a labor, lion i. I 1 1,
contract.
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CONSISTENCY CHECKLISTIP,
...........
Comprehenswe Plan X
I Strategi , c Pla,,ii, x
I Other, (Itsio.
FISCAL NOIE:
The,impact of the 2.1 ,,/6 Main, 2,018 Is $1,491,594 for all 15und,s, andl:'or'2019 i's $154,194 t"bir all. funds,
Approved by Ftname De� artment
p ....... . . .............................
i
VIEW" Yes O E ".E.Ar No
RECOMMENDATION*
t1i, the
Cily CoUlleflap rove Resolution 210,18,Z uthoriznig a cost of hv,iing in,cire,as ei,-,or non,-IBEW eni,plmives, wt
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c
exception of the ciity manager a,nd,, city clerk, in theatnount of 2.1'%ft)r 2,0118 and another 2.1% 2019, and
appropriatt,ng tunds.
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