Item No. __7c_supp__
Date of
Meeting November 2 2010


Commission Briefing
Salary and Benefit Resolution

Salary and Benefit Resolution 
What is it?
Delegates authority from the Commission to the CEO to
direct administration of pay and benefits for non-
represented employees
Covers approximately 830 (55%) Port employees
Contains provisions similar to collective bargaining
agreements
Benefits, basis for pay increases
Does not set actual salaries for non-represented
employees
2

Salary and Benefit Resolution 
What is it?
Authorizes the Port to provide medical and dental
benefits
Establishes Pay for Performance (PfP) as the basis for
most pay increases
Merit-based increases tied to employees'
performance plans and appraisals
Stipulates that PfP will be administered under the
Salary Administration Policy
Funding for PfP established by the Port budget
3

Salary and Benefit Resolution 
What is it?
Reviewed annually, updated as necessary
Changes informed by
New or changing laws governing pay or benefits
Updates to Port pay or benefit policies
Market pay levels
Known or estimated pay increases for the coming
year
Local public employers
Private sector employers
The Port's collective bargaining agreements
4

Unique Aspects of the Port
Operates and oversees major transportation hubs and
industrial facilities
Manages large construction programs
Is an economic engine for the region
In addition to being a government, is also a business
Skilled, motivated and engaged employees are the most
valuable asset

5

Unique Aspects of the Port
Many non-represented employees perform technical,
often specialized work
Engineers specializing in runway pavements and
designing piers
Environmental specialists collaborating with other
agencies on major remediation projects
ICT staff working on the airport's flight information
displays
Staff working with Passenger Facility Charges and
overseeing various grants
6

Unique Aspects of the Port
The Port's pay                        Typical
Port of
program is different                       Public
Seattle
Employer
from typical public
employer programs     Pay for
Performance    YES      NO
Cost of Living
Adjustments    NO      YES
(COLAs)
Step      NO      YES
Increases
7

Port Salary Ranges vs.
Typical Public Employer Ranges
Ranges without Steps       Ranges with Steps
85,000                                          85,000

75,000                                          75,000

65,000                                          65,000

55,000                                          55,000

45,000                                          45,000

35,000                                          35,000

25,000                                          25,000

15,000                                          15,000

8

Unique Aspects of the Port
Comparison of 2010 Pay Increases
Port of Seattle        King County        City of Seattle
YTD PfP = 3.8%
2.0% COLA        2.0% COLA
average
2.4 to 7.2% step
4.0% step increase
increase
4.4% - 9.2% total
6.0% total increase
Increase


9

Considerations for 2011
Employees will pay more for their benefits again in 2011
10% co-insurance added in 2009
Medical insurance premium sharing implemented in 2010
Medical insurance premium sharing increasing in 2011
Employee cost increases kept 2010 medical costs at 2009
levels
This change moved the Port sponsored medical plan
closer to those of other employers
Employee cost increases in 2011 will again keep Port
sponsored medical costs flat
10

Recommendations for 2011
A few minor wording changes
An updated holiday schedule for 2010
A reduction to Paid Time Off (PTO) accumulation limits
2% adjustment to salary ranges


11

2011 Minor Wording Changes
Will add clarity and understanding to sections with
revisions
Will help ensure that state retirement plan eligibility is
properly monitored and administered
Will remove redundancies in the health insurance
sections


12

Holidays and PTO
2010 Port holidays specified
Reduced PTO accumulation limits
Reduction is consistent with the 1999 PTO program
implementation plan
Reduction from 900 hours to 800 hours


13

Non-Represented Ranges
2% adjustment recommended for non-represented
salary ranges
272 jobs, or 49%, are market priced
20 published salary surveys utilized
Middle point of Port salary ranges compared to
market average actual pay
Market analysis indicates ranges are currently 1.0%
below market

14

Non-Represented Ranges
2011 market projected pay increases
4 salary planning surveys utilized
Data from local public employers gathered as well
Port collective bargaining agreements reviewed
Projected 2011 general industry pay increases of 2.9%
to 3.0%
Port union employees' pay expected to increase 2% to
6% based on current labor agreements

15

Non-represented Ranges
Planned or estimated pay changes are not finalized at many
local public employers
Few reporting planned or proposed COLA increases 
Pierce County 2.5%; City of Redmond 1.0%
Most, not all, expecting step increases to remain
Some still uncertain of COLA and Step increases
Range (COLA) increases result in equivalent increases to
employee pay
Step increases result in increases to employee pay, up to
range maximum
16

Non-Represented Ranges
Maintaining ranges for non-represented jobs could result
in retention or hiring challenges
Hiring activities could increase before the end of 2011
Some skill sets remain in high demand
2011 Port sponsored benefit program expected to no
longer be a competitive advantage


17

Non-Represented Ranges
Data on projected pay changes also informs the average
Pay for Performance (PfP) increase
2.5% average PfP increase included in 2010 budget
Estimated cost is $1.9 million
2.5% average is
Similar amount to step increases at many local public
employers
Less than projected general industry pay increases
Appropriate compared to both public employer and
general industry merit projections
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Conclusion
Salary and Benefit Resolution changes will be minimal
Related programmatic changes will again have much
greater impact on employees
All changes continue to reflect a conservative approach
to pay and benefits for non-represented employees in
2011


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