Title
Adoption of Resolution Amending the Alameda Municipal Power Unrepresented Salary Schedule Effective April 6, 2025, to Reflect an Approximately 20% Increase to the Assistant General Manager - Administration, an Approximately 13% Increase to the Assistant General Manager - Customer & Energy Resources, and an Approximately 25% to the Assistant General Manager - Engineering & Operations Classifications. (Human Resources 10025060)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The Alameda Municipal Power (AMP) Assistant General Manager - Engineering & Operations (AGM - E&O) position was recently vacated as the incumbent accepted a role with a competitor agency. In preparation for recruitment, Human Resources (HR) reviewed the salary for this role along with the Assistant General Manager - Customer & Energy Resources (AGM - C&E) and Assistant General Manager - Administration (AGM - Admin) classifications.
A total compensation survey of comparable cities with electric utilities found all three classifications significantly below the market median. To remain competitive and attract qualified candidates, it is recommended to increase the AGM - E&O salary by approximately 25%, the AGM - C&E salary by approximately 13%, and the AGM - Admin salary by approximately 20%. These adjustments for all three positions result in a total annual increase of $146,000. The estimated impact on the AMP FY2024-25 budget is 0.04% of the total operating budget and 0.2% of the total labor budget, with minimal overall impact.
The updated Unrepresented Employees Salary Schedule is provided in Exhibit 1, and the compensation survey summary is attached as Exhibit 2.
BACKGROUND
A critical function of Human Resources is to regularly collect compensation data, analyze classification compensation against internal and external factors, and assess competitive standing with comparable organizations. The total compensation review process ensures that the City of Alameda (City) maintains internal equity and market alignment, both of which greatly impact the recruitment process, and the ability to attract and retain high performing, diverse individuals. This process is particularly significant for management classifications, which serve as second line leaders within the City, and require knowledgeable and experienced individuals to effectively lead their units within City departments as well as occasionally serve as department heads when required.
The AGM - E&O position was recently vacated with the incumbent accepting a new role with a government agency in the local area. In preparation for a management recruitment, Human Resources evaluated the current salary of the classification and initiated a total compensation review for the AGM classifications at AMP. This review looked at comparable classifications at four comparator agencies with an electric utility department, and considered factors such as base salary, CalPERS contributions, employer contributions to health plans, and fringe benefits such as flex dollars or deferred compensation match by the employer. Human Resources used the following cities in the survey as they are previously identified comparator agencies with a municipal electric utility department: City of Lodi, City of Roseville, City of Palo Alto, and City of Santa Clara. The results of the survey showed that the City of Alameda fell well below the median requiring significant increases to bring the classifications to median and remain competitive.
DISCUSSION
In preparation for the AGM - E&O recruitment, Human Resources conducted a comprehensive compensation review for the AGM classifications at AMP. The City of Lodi, City of Roseville, City of Palo Alto and City of Santa Clara were selected as comparator agencies, as each operates a municipal electric utility and has comparable classifications to AGM - Admin, AGM - C&E, and AGM - E&O.
The total compensation survey considered factors such as base salary, CalPERS contributions, employer health contributions, and compensable fringe benefits. The results indicated that all three classifications were below the market median, with some positions falling further behind than others.
Due to the results of the total compensation survey, Human Resources is recommending an approximately 20% increase to the AGM - Admin classification salary range, resulting in a $44,910 increase, an approximately 13% increase to the AGM - C&E classification salary range, resulting in a $29,191 increase, and approximately 25% increase to the AGM - E&O classification salary range, resulting in a $56,137 increase. The increases reflect the very specialized knowledge and skill required to perform in the classification of AGM at AMP. This increase in salary would ensure the City remains competitive and desirable to highly qualified candidates with the special skill and knowledge needed to lead a department at an electric utility, as well as match current rates of comparable classifications. If adopted the increase would be effective April 6, 2025 and the salary range be as follows:
|
Weekly Hours |
Classification FLSA Exempt |
Annual Salary |
|
|
|
Step 1 |
Step 2 |
Step 3 |
Step 4 |
Step 5 |
|
36 |
Assistant General Manager - Administration (Recommended) |
$221,684 |
$232,769 |
$244,405 |
$256,625 |
$269,458 |
|
36 |
Assistant General Manager - Customer & Energy Resources (Recommended) |
$208,753 |
$219,191 |
$230,148 |
$241,655 |
$253,739 |
|
36 |
Assistant General Manager - Engineering & Operations (Recommended) |
$230,921 |
$242,468 |
$254,589 |
$267,318 |
$280,685 |
AMP finance was consulted on the fiscal impacts the salary increase would have on FY2024-25 and FY2025-26 budget. It was determined that there are sufficient funds within the budget to absorb the impact. As such, the salary increases would not result in a rate increase for AMP customers.
When salary ranges are adjusted or increased, the Human Resources practice is to analyze internal equity against other classifications and/or differential between subordinate classifications. Human Resources reviewed the salary range of the General Manager - AMP classification, which is the supervisory class to that of the AGMs and itis sufficient within the market and maintains an appropriate differential to the AGM classifications.
ALTERNATIVES
• Approve the resolution as recommended. This action would align salaries to the median, enhancing future recruitment efforts and the City’s ability to attract and retain high quality candidates.
• Do not approve the resolution to increase these position salary ranges. Staff does not recommend this alternative as the compensation for management level classification is significantly below the median which will impact a high-quality candidate pool, increase the difficulty of retaining high performing staff, and would make the City less competitive.
FINANCIAL IMPACT
There are sufficient funds in AMP’s budget for the approximate 20% increase to the AGM - Admin classification salary range, resulting in a $44,910, an approximate 2% increase to the AGM - C&E classification salary range, resulting in a $29,191, and an approximate 25% increase to the AGM - E&O classification salary range, resulting in a $56,137 increase. The impact of these increases on AMP’s FY2024-25 budget will be 0.04% of total operating budget, and 0.2% of total labor budget. AMP’s FY2025-26 budget is not yet finalized; however, it is estimated that the impact of this increase to the FY 2026 budget will be 0.2% of total operating budget, and 1.0% of total labor budget. As there are sufficient funds within AMP’s budget, the salary increase will not result in an increase in rates for AMP customers.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the City’s Strategic Plan, Project No. GOV7 to review and update employee classification specifications.
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 amending the Alameda Municipal Power Unrepresented Salary Schedule effective April 6, 2025, to reflect an approximately 20% increase to the Assistant General Manager - Administration, an approximately 13% increase to the Assistant General Manager - Customer & Energy Resources, and an approximately 25% to the Assistant General Manager - Engineering & Operations classifications.
Respectfully submitted,
Jessica Romeo, Human Resources Director
By,
Noelle White, Senior Human Resources Analyst
Financial Impact section reviewed,
Ross McCarthy, Acting Finance Director
Exhibits:
1. Alameda Municipal Power Unrepresented Salary Schedule
2. Total Compensation Survey, March 2025