Title
Adoption of Resolution Approving a Revised Executive Management Compensation Plan for the Period Commencing July 1, 2025 and Ending June 30, 2027. (Human Resources 10025060)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The prior Compensation Plan for Executive Management Employees (EXME), representing 14 employees, expired on June 30, 2025. The revised Compensation Plan encompasses a twenty-four month period, commencing July 1, 2025 and ending June 30, 2027.
Recommendations for equity adjustments base salary increases for miscellaneous employees, one time healthcare premium offset payment, revision of holiday language, and expansion of the funeral leave provision are the same as provided to other miscellaneous labor groups and are effective the first full pay period following July 1, 2025. Additionally, miscellaneous employees will transition to a standard forty (40) hour work week effective the first full pay period following July 1, 2025.
Public Safety Chiefs will receive the same increases as their associated management association, and any base salary adjustments to maintain the agreed upon 6.5% differential of their highest paid subordinate.
It is also recommended to provide compensation outside of their normal working hours for the Fire Chief when assigned to provide mutual aid and when the compensation rate is 100 percent reimbursable.
Additionally, staff are recommending that EXME members receive an increase in administrative leave of an additional two (2) days which will not be eligible for cash out and must be used by the last pay date of the fiscal year.
Lastly, effective July 1, 2025, EXME members elected into State Disability Insurance (SDI).
BACKGROUND
The City of Alameda (City) has nine labor groups and administers two compensation plans. This includes four Public Safety groups and five miscellaneous groups.
The agreements with the five miscellaneous groups and the two Compensation Plans expired in June of 2025. The City has now reached agreement with the Alameda Police Officers Association (APOA), Alameda Police Officers Association: Non-Sworn (PANS), Management and Confidential Employees Association (MCEA), the Alameda City Employees Association (ACEA), and the Electrical Utility Professionals Association (EUPA). The City is currently meeting with the Alameda Police Managers Association (APMA), and the International Brotherhood of Electrical Workers, Local 1245 (IBEW) groups.
DISCUSSION
The recommendations in the Compensation Plan for base salary increases for miscellaneous employees, the revision to holiday language and expansion of funeral leaves are the same as provided to other miscellaneous labor groups.
The proposed Compensation Plan provides wage increases for miscellaneous employees based on the Base Revenue Index (BRI), defined as one-half (i.e., 50%) of the year-over-year growth measured between successive fiscal years of the combined dollar amount of the following four (4) Alameda taxes: Property tax, 1% Bradley-Burns Sales Tax, Utility Users Tax, and Transient Occupancy Tax. The minimum base wage increases will be 1% and the maximum will be 5%. The proposed Compensation Plan provides base wage increases as follows:
• Wage increase for 2025 will be based on BRI from fiscal year 2023-2024 and 2024-2025, with the minimum increase of 1% to base wages taking effect the first full pay period following July 1, 2025. Upon finalization of the BRI calculation, any additional increase to base wages will be implemented retroactively to the first full pay period following July 1, 2025.
• Wage increase for 2026 will be based on BRI from fiscal year 2024-2025 and 2025-2026, with the minimum increase of 1% to base wages taking effect the first full pay period following July 1, 2026. Upon finalization of the BRI calculation, any additional increase to base wages will be implemented retroactively to the first full pay period following July 1, 2026.
Additionally, five (5) miscellaneous classifications will receive equity adjustments ranging from 1.75% to 8.75%. Chief Assistant City Attorney classification will receive a one-time equity adjustment of 1.75% effective the first full pay period following July 1, 2025. The Communications and Legislative Affairs Officer classification will receive a one-time equity adjustment of 2.50% effective the first full pay period following July 1, 2025. The Finance Director classification will receive a one-time equity adjustment of 3.0% effective the first full pay period following July 1, 2025. The Recreation and Park Director classification will receive a one-time equity adjustment of 5.50% effective the first full pay period following July 1, 2025.
It is also recommended to transition EXME miscellaneous employees to a forty (40) hour standard workweek effective the first full pay period following July 1, 2025.
The proposed Compensation Plan also provides compensation to the Fire Chief when providing mutual aid outside of normal working hours. Compensation will be at the straight time rate and 100 percent reimbursable by the requesting agency.
It is also recommended to provide EXME members with two (2) days of Administrative Leave, for a total of two (2) weeks. The additional two (2) days of Administrative Leave cannot be cashed out or rolled over to the next fiscal year and must be used within the fiscal year in which it is granted.
The recommended Compensation Plan also reflects language for State Disability Insurance (SDI), which members elected into effective July 1, 2025.
For parity with other miscellaneous groups and to recognize rising medical costs, the proposed Compensation Plan provides one-time lump sum non-PERSable payments to EXME members of $1,000 in July 2025 and $1,000 in July 2026 and to offset medical premium cost increases.
The general cost of living increases established above will be applied to the City Manager and the City Attorney consistent with their existing contracts. The two additional days of Administrative Leave will not be applied to the City Manager, unless City Council specifically directs so separately.
A draft compensation Plan is attached.
ALTERNATIVES
City Council may consider a number of alternatives, including:
• Approve the resolution as recommended.
• Adjust the resolution.
• Deny the resolution.
FINANCIAL IMPACT
The financial impact of implementing salary changes of the recommended Compensation Plan as shown in Table 1 below.
Table 1
The cost of the one-time lump sum payments to offset rising medical costs is approximately $14,000 annually, for a total of $28,000 over the term of the Compensation Plan. It is anticipated that additional fiscal year costs will be included in future fiscal year budgets.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is in conformance with the Alameda Municipal Code and all policy documents.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Adopt a resolution approving a revised EXME Compensation Plan for the period commencing July 1, 2025 and ending June 30, 2027.
Respectfully submitted,
Noelle White, Acting Human Resources Director
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibits:
1. Executive Management Employees Compensation Plan, July 1, 2025 through June 30, 2027 - Redline
2. Executive Management Employees Compensation Plan, July 1, 2025 through June 30, 2027 - Clean
3. EXME Salary Schedule, Effective July 13, 2025