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HomeMy WebLinkAbout12 2022 Salary Schedules and Updated PositionsAGENDA ITEM #12 Page 1 of 4 MEETING DATE:March 2, 2022 TO:Board of Directors FROM:Jillian Steward, Human Resource Manager SUBJECT:Consideration for Approval of the 2022 Salary Schedule and Benefits Package for Unrepresented Employees APPROVED BY______________________________ Brian C. Wright General Manager RECOMMENDATION: a) Receive and direct staff to file the 2021 Koff & Associates Compensation Study b) Approve the 2022 Unrepresented and Salary Schedule as presented c) Approve revisions to District Code Title 4, Section 4.07.090 Administrative Leave as presented DISCUSSION: Background District Code 4.06.101 Compensation Plan establishes the responsibility of the General Manager to maintain a compensation plan for all classes of positions. The plan shall establish a salary range or rate of pay, showing minimum and maximum rates for each class. The General Manager shall submit the compensation plan to the Board of Directors for approval. Historically, the District has maintained two salary schedules, one for the classifications represented by the International Brotherhood of Electrical Workers (IBEW), Union Local 1245 and a second schedule for classifications not represented by a union (management, technical, engineering). In March of 2020, the District and IBEW Local 1245 negotiated an updated Memorandum of Understanding (MOU) establishing a compensation and benefits plan effective January 1, 2020 through December 31, 2024. Additionally, in March 2020, the District approved a terms and conditions of the unrepresented staff’s salary and benefits package. The terms of this agreement included the following: Page 2 of 4  FY20 includes a 2.5% salary schedule adjustment and 5% general wage increase.  FY21 includes a general wage increase based upon October annual change CPI-W (San Francisco-Oakland-Hayward) with a 5% maximum and a 2% minimum.  Compensation study to be performed in FY21 Effective January 1, 2021, based on the terms and conditions stated above, unrepresented staff received a 2% wage adjustment. Compensation Study In June 2021, a request for proposal for a compensation study was advertised and awarded by the Board to Koff & Associates in July 2021. The results of this study have been included in this staff report as Attachment 1. Following a review of the compensation study conducted by Koff & Associates with staff and with the Board of Directors during the negotiation process, the District has identified several challenges in establishing clear parameters for competitive employment markets and comparable job classifications with similar agencies to accurately and effectively establish competitive salary ranges for many of the unrepresented employment classifications within the District. Further complicating this process has been the recent job market instability generated by, what is assumed by many to be, the relatively transient economic impacts of COVID-19. To remedy this, the District will undertake a more comprehensive compensation plan update, to include the following:  Review of job classifications and descriptions  Establish Board adopted policy for competitive salary metrics  Identify employer market profile for future compensation studies  Healthcare benefits market analysis  Retirement benefits program review  Proposed updated compensation and benefits maintenance plan Updating the compensation plan will further refine the process in the future by more accurately defining the District’s competitive employment markets, enhance the effective recruitment and retention of highly skilled employees, and establish policy in maintaining consistency and transparency. Negotiations At the meeting held on January 5, 2022, the Board of Directors designated General Manager Brian Wright as District labor negotiator for negotiations with the unrepresented exempt employee group. The General Manager and unrepresented staff held several negotiation discussions to review current local and regional economic data, competitive employment opportunities and markets, and recent changes in the public water and electric utility sector. Following these negotiations, staff have arrived at the following proposal for adjustments in FY2022:  FY22 includes a 5% general wage increase based upon October 2021 CPI-W (San Francisco-Oakland-Hayward) of 5.2% and in alignment with the IBEW Local 1245 represented employee wage adjustments approved January 5, 2022.  Increase in administrative days from 9 to 10 Page 3 of 4 New Positions During the review process for the Board approved FY2022-23 Budget, 8 new positions were included for consideration and approval. At the time of approval, staff informed the Board that once the new positions were fully developed, there would be an opportunity to review the role and salary classifications of each of the positions during the approval of the FY2022 salary schedule adjustments. The proposed FY2022 unrepresented salary schedule has been updated to include the new positions approved in the FY 22/23 budget. The unrepresented salary schedule is provided as Attachment 2. The new positions approved in the FY2022-23 Budget and added to the FY2022 unrepresented salary schedule include: 1.Human Resources and Risk Management Director – This position reports directly to the General Manager and will be charged with the responsibility of managing and directing all aspects of the District’s human resources, risk management and compliance. This position has recently been classified as a manager level position and is being re-classified as a Director level position in order to facilitate the appropriate autonomy for various human resource and risk compliance requirements. 2.General Services Manager – This position will report directly to the Chief Financial Officer (CFO) and be charged with the responsibility of leading and managing the District’s general services departments, including facilities maintenance, utility fleet, and warehouse. 3.Senior Electric Engineer – This position will report directly to the Electric Engineering Manager and be responsible for assisting in the development, design and execution of a wide range of electric utility operational and capital improvement plan engineering projects. This position will also serve as personnel development and professional growth opportunity within the District’s electric utility succession planning. 4.Communications Specialist – This position will report directly to the Public Information and Strategic Affairs Director and be tasked with the development, implementation and management of the District’s external and internal communications platforms, including customer relations, websites, social media, events and education. 5.Risk and Compliance Specialist– Reports directly to the Human Resources and Risk Management Director, and is responsible for assisting in the development, implementation and management of the District’s various safety programs, risk management programs and organizational compliance initiatives. This item is in support of the following objectives and goals identified by the District. Goals: 1. Manage for Financial Stability & Resiliency 5. Developing an inclusive culture drives organizational integration and success 1.05.020 Objectives: 5. Manage the District in an effective, efficient and fiscally responsible manner Page 4 of 4 FISCAL IMPACT: The FY22 budget included a 4.5% increase for 2022, and also included an $83k compensation study contingency for unrepresented employees. The contingency more than covers the +5.0% Actual versus 4.5% Budget gap for unrepresented salaries of ~$19k. The additional cost of increasing 1 additional Admin day annually was unbudgeted for FY 2022 and results in an increase in wages listed below:  $15,952 – gross wages  $21,902 - Including applicable burdens ~37.3% (payroll taxes, pension/opeb, workcomp) The $83k contingency for the compensation study more than covers this additional benefit as well. +5.0% Actual versus 4.5% Budget gap for unrepresented salaries of ~$19K + $21,902 - Including applicable burdens = ~$40,902, leaving a remaining balance of $42,098 in the $83k compensation study contingency. ATTACHMENTS: Attachment 1: Koff & Associates Compensation Study Attachment 2: FY2022 Unrepresented Employees Salary Schedule Attachment 3: District Code Title 4 Personnel, Section 4.07.090 Administrative Leave with proposed redline revisions Attachment 4: 2022 Organization Chart