Title
Adoption of Resolution Approving a Compensation Plan Between Alameda Municipal Power Unrepresented Management (AMPU) Employees and the City of Alameda for the Period Commencing December 27, 2018 through June 30, 2022. (Human Resources 2510)
Body
To: Honorable Mayor and Members of the City Council
From: David L. Rudat, Interim City Manager
EXECUTIVE SUMMARY
The City of Alameda (the City) has nine labor groups and administers two compensation plans. This includes four Public Safety groups and five miscellaneous groups. Labor agreements with the four Public Safety groups expire in December 2021. The agreements with the five miscellaneous groups and the two Compensation Plans expired in December 2018. The City has been actively negotiating with the five miscellaneous groups for successor agreements. These groups are:
• Alameda City Employees Association (ACEA)
• Management and Confidential Employees Association (MCEA)
• Electrical Utility Professionals of Alameda Association (EUPA)
• International Brotherhood of Electrical Workers (IBEW)
• Police Association Non-Sworn (PANS)
The two compensation plans provide for salary and benefits for the Executive Management Team (EXME) and the Alameda Municipal Power Unrepresented Management Employees (AMPU) at Alameda Municipal Power (AMP), the City’s Electric Utility.
New agreements with ACEA, MCEA, and PANS were approved by the City Council on January 15, 2019, and the City has also reached agreement on a forty-two month Memorandum of Understanding (MOU) with EUPA.
City of Alameda labor representatives met in Closed Session with the Public Utilities Board (PUB) on January 28, 2019, to discuss the AMPU Compensation Plan. Revisions to the AMPU Compensation Plan are consistent with other miscellaneous MOUs that the City and labor groups have reached agreement on to date.
BACKGROUND
The prior Compensation Plan for AMPU, representing four employees, expired on December 26, 2018. Negotiations between the City and its five miscellaneous groups commenced in July 2018.
The revised Compensation Plan falls within the parameters authorized by the City Council and represents a forty-two month period, commencing December 27, 2018, and ending June 30, 2022.
DISCUSSION
The proposed Compensation Plan provides salary increases as follows: three percent (3.0%) effective January 6, 2019, upon City Council approval; 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.
Additionally, in recognition of dedication and loyalty to the City and to retain valued employees, the City will 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. Additionally, the City will 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 City has also agreed to increase the number of hours AMPU employees receive for the ten authorized City holidays and three and one half floating holidays from 7.5 hours per holiday to 9 hours per holiday in order to recognize the 9 hour-days worked by the employees in this group. Additionally, the City will provide a half day off for employees on the day before Thanksgiving and a half day off for employees on either Christmas Eve or New Year’s Eve.
The City will continue to make a monthly contribution for employee medical insurance for eligible employees through a contribution to the Flexible Benefit Amount. The AMPU medical contribution amount will remain consistent with the limits implemented in the 2018 plan year. In the 2019 plan year, employees were able to choose from ten health plans, six of which are fully covered by the City’s medical contribution amount. Additionally, the City agreed to cover AMPU members’ vision insurance premiums. However, the City’s maximum contribution toward medical and vision insurance premiums cannot exceed the City’s maximum contribution for Plan B participants. This benefit will go into effect in January 2020.
Unless otherwise noted, all provisions are effective January 6, 2019. A draft Compensation Plan is attached.
FINANCIAL IMPACT
Labor costs for the AMPU group is paid out of the AMP Budget. The financial impact of the Compensation Plan for AMPU in Fiscal Year 2018-19 is approximately $18,600 for the implementation of salary and other benefit changes. This includes $12,000 for six months of salary increases and up to $6,600 if all eligible employees participate in the deferred compensation program, enroll with vision insurance, and apply for an education reimbursement. The financial impact on the FY 2019-20, FY 2020-21, and FY 2021-22 labor costs will be approximately $35,000, $33,000, and $33,000, respectively. The total cost for the forty-two month plan is estimated at $120,000. These costs will be incorporated into future AMP Budgets.
If AMP staff determines that budget adjustments for Fiscal Year 2018-19 related to this Compensation Plan are necessary, they will be presented to the Public Utilities Board as part of the Mid-Year Budget review.
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 (CEQA) 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 Compensation Plan between Alameda Municipal Power Unrepresented Management (AMPU) Employees and the City of Alameda for a forty-two month term commencing December 27, 2018, and ending June 30, 2022.
Respectfully submitted,
Nancy Bronstein, Human Resources Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Compensation Plan (Redline)
2. Compensation Plan
3. Public Utilities Board Resolution 5157