ITEM NO: 7b supp
DATE OF 
MEETING: November 1, 2011_

Agenda 
Purpose of the Salary and Benefits Resolution 
Updates since last year 
Answers to last year's Commission questions 
Information on Educational Reimbursement program 
Salary Range update 
Benefit plan updates 
Recommended changes for 2012 
Standard changes 
Salary range changes 

2

Salary and Benefits Resolution Background 
Delegates authority from the Commission to the CEO to
direct administration of pay and benefits for nonrepresented
employees 
Pay and benefits are major components of the Port's total
rewards package 
Covers approximately 867 (56%) Port employees 
Contains provisions similar to collective bargaining
agreements 
Benefits, basis for pay increases, holidays 
Does not set actual salaries for non-represented
employees 
3

Salary and Benefits Resolution Background 
Authorizes the Port to provide medical and dental
insurance benefits 
Establishes Pay for Performance (PfP) as the manner for
granting pay increases 
Merit-based increases tied to employees' performance
plans and appraisals 
Stipulates that PfP will be administered within guidelines of
the Salary Administration Policy 
Funding for PfP established by the Port budget 
PfP, unlike other public employers' plans, are not
guaranteed increases 
4

Salary and Benefits Resolution Background 
Resolution contains the salary range structure for non-
union jobs 
Ranges are "open" ranges, they do not include specific pay
steps 
Changes informed by 
New or changing laws governing pay or benefits 
Updates to Port pay or benefit policies 
Current Market pay levels 
Anticipated pay increases at local and regional, public and
private , employers 
Input, and questions, from Port staff 
5

Salary and Benefits Resolution Background 
Commission questions from last year 
What portion of employees receive a PTO cash out? 
2010      2011 
Percentage of non-union employees receiving a cash out        33%       26% 
Portion of cash outs due to termination                                                         13% 
Portion of cash outs due to hour limit                                                          14% 
Portion of cash outs due to employee request                         73% 
Total hours cashed out                                            34,805     17,252 
Value of cashed out hours                        $1.6 million    $819,650 
What portion of employees receive overtime? 
2010        2011 
Portion of non-exempt employees receiving overtime          18%         18% 
Number of overtime hours                                         5,193        5,885 
Overtime pay                              $223,493      $295,397 

6

Salary and Benefits Resolution Background 
Tuition Reimbursement Program 
not addressed in the Resolution 
component of the Learning and Development category of total
rewards 
Activity since 2007 
91 employees, mostly non-union 
$630,544 in tuition reimbursed 
Reimbursement ~ 64% of tuition 
Books, fees and other costs not reimbursed 
Educational programs must be pre-approved 
Individual classes must also be pre-approved 
7

Salary and Benefits Resolution Background 
Tuition Reimbursement Program 
Not a major impact on recruiting, focus more on non-
degree classes, seminars, conferences, etc. 
Supports employee contributions to the Port 
Survey results support positive impacts of employees
with degrees 
greater job satisfaction,
Greater sense of being appreciated, and 
belief that the Port will be a desirable employer in the
long-run 
8

Salary and Benefits Resolution Background 
Salary Ranges 
Last year ranges were about 1% below market 
Anticipated 2.9% average market pay increase for 2011 
2.8% reported actual average market pay increase for 2011 
Ranges were adjusted by 2% for 2011 



9

Salary and Benefits Resolution Background 
Benefits 
Self-funding implemented in 2011 
Slower cost increases attributable to self-funding 
3% instead of 8% for 2012 
Premium sharing formula changed slightly for 2011 
Employees paying ~ 9% of the premium 
Continue managing Port cost for non-union benefits 
Slight increases to premium, copays, and deductible for 2012 
Reviewing potential plan design changes for 2013-2014 

10

2012 Salary & Benefit Resolution Changes 
Considerations for 2012 
Upward Trend of the Consumer Price Index 
Minor changes to Port-sponsored health care plans 




11

2012 Salary & Benefit Resolution Changes 
Standard Changes 
Updated holiday schedule 
Minor wording changes to clarify sections 
Reducing PTO balance limit from 800 hours to 700 hours 



12

2012 Salary & Benefit Resolution Changes 
Jobs market priced to determine how ranges compare to
market 
14 published surveys utilized, 12 are all industry, 1 is local
public sector, 1 is airport specific 
About half the non-union jobs market priced 
These jobs represent about 60% of non-union employees 
Port range midpoints compared to market average actual
rates 
Ranges currently 0.3% below market 
Planned 2012 market pay increases average 3.1% 
13

2012 Salary & Benefit Resolution Changes 
Planned pay changes of local public employers also
informs range adjustment recommendation 
12 local public employers contacted 
COLA increases planned to be zero to 2% 
Step increases expected between zero and 8.8% 
Total increases expected to range from zero to 8.8% 


14

2012 Salary & Benefit Resolution Changes 
Pay for union jobs also considered 
Port COLA increases expected to be at least 2% based on
CPI increase trends and collective bargaining agreements 
Local CPI-U most commonly used 
Annual increases to this index has ranged from 0.2% to
3.2%, most recent annual increase was 2.7%. 


15

2012 Salary & Benefit Resolution Changes 
2% range adjustment recommended for 2012 
Recommendation is somewhat conservative 
Some skill sets remain in high demand 
If hiring activities increase before 2012 year-end, ranges
could lead to recruiting challenges 


16

Conclusion 
Recommended 2012 Resolution changes 
Changes are minimal 
Consistent with past years 
Range adjustment is conservative 



17

Questions? 


18