Posted: May 09, 2024
Rapid City
Agenda Item Summary

Agenda Item Ref. #: LF051524-08

Agenda Item Title:

Authorize Mayor and Finance Director to Sign Second Amendment to the Agreement between the City of Rapid City and Local 1031, Council 65, American Federation of State, County, and Municipal Employees AFL-CIO for the period from January 1, 2023 through December 31, 2024 Amending Wage Ranges and Employee Placements and Applying the Same Retroactively

Origination Group:
Legal & Finance Committee
Origination Meeting Date:
05/15/2024
City Council Hearing Date:
05/20/2024
Staff Contact:
Daniel Ainslie
Location:
Council Chambers
Agenda Item Summary:
The current AFSCME Contract obligated the City to complete a wage study. The request was made because the existing scale coupled various positions within the organization. These ties were made for various historical reasons and were no longer based on market conditions for the positions. The Union and City Council have approved the wage ranges.

The previous pay ranges expired on December 31, 2023. Due to the extended length required to complete the wage study, the new wages were not adopted until May of 2024. As such, there is a five-month difference between when the wages should have gone into effect and when they actually became effective. To be fair to the employees, it is recommended that the employees would be reimbursed for the five months of increased wages that they did not receive.

Traditionally, the City has provided a Cost of Living Adjustment each July. The AFSCME wage ranges were based off of information from November 2023. As such the wages should be adjusted for seven months. The Midwest Urban CPI indicated an increase of 1.11% for the past seven months. It is recommended that the wage ranges and employee placements be increased by 1.11% on July 1, 2024.

The total cost of the wage range adjustments and inflationary increases were not included in the adopted 2024 budget as the wage study was not completed at the time of the budget adoption. The total cost across all funds is approximately $925,000. Should the Council approve this resolution, a supplemental appropriation for this and the inflationary adjustment for non-Union employees will be presented to the Council in the near future.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center
General Fund $550,000
Various Funds $375,000
Is Funding Budgeted?:
Not Budgeted
Funding Source & Fiscal Impact Notes:
The total cost of the wage range adjustments and inflationary increases were not included in the adopted 2024 budget as the wage study was not completed at the time of the budget adoption.

Recommendations:

Origination Recommendation Action:
Approve

Attachments & Links to Download:

pdf LF051524-08 AFSCME Amendment Wage Adjustments

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