Title
Adoption of Resolution Approving a Revised Executive Management Compensation Plan for the Period Commencing December 27, 2018 and Ending June 30, 2022; and
Adoption of Resolution Amending the Executive Management Employees Salary Schedule to Establish the Classification of Planning, Building and Transportation Director and to Delete the Director of Base Reuse Classification. (Human Resources 2510)
Body
To: Honorable Mayor and Members of the City Council
From: Eric Levitt, City Manager
EXECUTIVE SUMMARY
The prior Compensation Plan for Executive Management Employees (EXME), representing 14 employees, expired on December 26, 2018. The revised Compensation Plan falls within the parameters authorized by the City Council and encompasses a forty-two month period, commencing December 27, 2018, and ending June 30, 2022.
Recommendations for base salary increases, deferred compensation, vacation sell back and floating holidays are the same as provided to other miscellaneous labor groups and are effective February 3, 2019.
There is also a recommendation to align Department Heads salaries and create the classification of Planning, Building and Transportation Director.
Finally, there is a recommendation to amend the retiree medical benefit provision to include Public Safety Chiefs hired from other agencies.
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 December 2018. City Council has approved new 42-month agreements with four of the five labor groups and the compensation plan for the Alameda Municipal Power Unrepresented Management Employees (AMPU). The City is currently meeting with the International Brotherhood of Electrical Workers (IBEW) group.
Labor agreements with the four Public Safety groups expire in December 2021.
The City Manager and Human Resources Director met in Closed Session with City Council on April 16, 2019 to discuss changes to the EXME compensation plan.
DISCUSSION
The recommendations in the Compensation Plan for base salary increases, deferred compensation, vacation sell back and floating holidays are the same as provided to other miscellaneous labor groups.
The proposed Compensation Plan provides salary increases as follows: three percent (3.0%) effective February 3, 2019; three percent (3.0%) effective the first full pay period following January 1, 2020; two percent (2.0%) effective the first full pay period following January 1, 2021; and one percent (1.0%) effective the first full pay period following January 1, 2022. These increases are the same as provided to all other miscellaneous labor groups.
In recognition of dedication and loyalty to the City and to retain valued employees, the City will also provide employees with fifteen or more years of service the opportunity to sell two weeks of vacation back each year, subject to the IRS rules.
The City will also contribute a maximum of 1% of an employee’s base salary for employees who have completed one year of service and who contribute at least 0.5% of their base salary to a deferred compensation account.
The number of floating holidays for EXME will also increase from three and a half (3.5) floating holidays to five and a half (5.5). Additionally, the City will provide a half day for employees on the day before Thanksgiving and a half day for employees on either Christmas Eve or New Year’s Eve.
It is also recommended to align the salaries of the Directors of Community Development, Recreation and Parks, Library and Human Resources with the Finance Director and Information Technology Director. The salary of the Planning, Building and Transportation Director should be established at this annual wage rate as well to create equity amongst these Department Heads.
It is further recommended to provide Public Safety Chiefs hired from outside the organization with up to five years of service credit based on time served as a Fire/Police Chief in other agencies. This time will count toward the ten years required to be eligible for Public Safety retiree medical benefits. Qualified employees would receive employee only, single party medical insurance. The implementation of this provision is subject to an actuarial study as required by Government Code 7507.
Unless otherwise noted, all provisions are effective February 3, 2019. A draft compensation Plan is attached.
FINANCIAL IMPACT
The financial impact of the Compensation Plan for EXME in Fiscal Year (FY) 2018-19 is approximately $44,000 for salary increases including internal alignment. If all eligible employees participate in deferred compensation and the vacation sell back there could be additional cost of up to $46,000. The financial impact on the FY 2019-20, FY 2020-21, and FY 2021-22 will be approximately $185,000, $172,000, and $138,000 respectively. The total cost for the forty-two month plan is estimated at $585,000.
Departments have sufficient funds in their budgets to absorb the additional cost related to this compensation plan in the current Fiscal Year. The full cost will be included in the upcoming Biennial Budget.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
This action is not a project under Public Resources Code Section 21065 or California Environmental Quality Act Guidelines section 15378 because it does not have potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.
RECOMMENDATION
Adopt a Resolution approving a revised Executive Management Compensation Plan for the period commencing December 27, 2018 and ending June 30, 2022; and
Adopt a Resolution amending the Executive Management Employees salary schedule to establish the classification of Planning, Building and Transportation Director and to delete the Director of Base Reuse classification.
Respectfully submitted,
Nancy Bronstein, Human Resources Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Compensation Plan
2. Compensation Plan - Redlined Version
3. Draft Salary Schedule