City of Kent public works and parks employees will receive pay increases next year of 2.5 percent in January and 2 percent in July as part of a new three-year contract agreement.

Employees under the Teamsters Local 117 contract also will get raises of 2.5 and 0.5 percent in 2018 and a 2.1 percent jump in 2019. The City Council approved the new 2017-2019 contract on Dec. 13 after an executive session to discuss the agreement.

The current three-year contract that expires Dec. 31 tied pay increases to the Consumer Price Index (CPI) in the Seattle area with a minimum of 1 percent and a maximum of 4 percent in each year.

“Set percentage increases make it easier for both the city and the employee to budget pay,” said Marty Fisher, city human resources director, in an email. “It also allows the city to pay employees based on competitive market conditions instead of simply the Consumer Price Index.”

Annual base salaries for the 117 public works and parks employees who do maintenance and field supervisor jobs range from about $41,000 to $76,000, according to city Finance Department staff.

The new agreement also changes how the city funds the Health Savings Account (HSA) medical plan for Teamsters employees. Rather than set contributions by the city, employees earn contributions based on their participation in the City Wellness Program.

“Employee health/wellness is very important to the city,” Fisher said. “Research has shown that the more a person is engaged in his or her overall wellness, the healthier he or she will be. The more an employee participates in the Wellness Program, the higher the city contribution becomes, in turn lowering the employee’s out-of-pocket expenses and raising the overall awareness of his or her health.”

The current contract states that the city will contribute a percentage of the total deductible amount for employees who choose the HSA as their medical insurance option. In 2014, it was a 100 percent contribution; in 2015, it was a 90 percent; in 2016, it was an 80 percent.

In 2017, the city will contribute towards employees’ HSA without regard to the employee’s 2016 Wellness Program participation. In 2018 and 2019, the amount of the city’s contribution will be based on the employee’s Wellness Program participation in the preceding year. The city’s contribution is a flat dollar amount, not a percentage and is based on the level employees achieve.

Employees earn points from getting an annual physical, joining Weight Watchers, tracking steps and other options. The points can earn them contributions of up to $1,500.

Council approves second contract

The council also approved a new three-year contract with Local 2617 of the American Federation of State, County and Municipal Employees (AFSCME) that represents administrative staff, corrections workers, accountants, custodians and other employees. A total of 132 employees are under the contract.

The pay increases are similar to the Teamsters contract, with 2.5 percent on Jan. 1, 2017; 0.5 percent on July 1, 2017; 2.5 percent on Jan. 1, 2018; 1 percent on July 1, 2018; and 2.1 percent on Jan. 1, 2019. Employees previously had pay increases based on the Consumer Price Index.

Employees also will receive the same Health Savings Account medical plan as the Teamsters union based on participation in the city’s Wellness Program.