HomeMy WebLinkAbout11 Employee Wage Ranges 2023 Represented and UnrepresentedTRUCKEE DONNER
Public Utility District
'400 A
MEETING DATE: January 18, 2023
TO: Board of Directors
AGENDA ITEM 11
FROM: Michael Salmon, Chief Financial Officer
Jillian Steward, Director of Human Resources & Risk
Management
SUBJECT: Consideration for Approval of the 2023 Wage Range
Schedule for Represented & Unrepresented Employees
APPROVED BY
Brian C. Wright, General Manager
RECOMMENDATION:
Approve of the 2023 Wage Range Schedules for the District's IBEW 1245 represented
staff and unrepresented managements, engineering and technical staff.
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. The MOU specifically stipulates the Wage Range
change from 2021 to 2023 methodology per Title 20.4: "2021 through 2023 — Effective
January 1, of each year, a GWI of CPI-W (San Francisco -Oakland -Hayward) based on
the October to October change as calculated by the Bureau of Labor Statistics with a cap
of 5% and a minimum of 2%."
For the represented employee wage range 2023 adjustments, the October 2021 to
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October 2022 CPI-W (San Francisco -Oakland -Hayward) was 6.4%; accordingly the
represented wage range increase for 2023 is 5.0%. The 2023 wage range schedule for
represented employees is provided for approval as Attachment 1.
At the March 2, 2022 Board meeting the 2022 Unrepresented Salary Schedule was
approved by the Board which included a 5% general wage increase based on October
2021 CPI-W (San Francisco -Oakland -Hayward) of 5.2% and in alignment with the IBEW
Local 1245 represented employee wage adjustments for FY 22.
During this meeting staff also agreed to undertake a more comprehensive compensation
plan which is currently in progress with an expected draft for Board review and
consideration in the second half of 2023.
The unrepresented employee wage ranges for 2023 has been reviewed and a alignment
with MOU/represented of a 5.0% adjustment is recommended based on current local and
regional economic data and to maintain our competitive position in the labor market,
especially within the utility sector.
There are currently no additional positions anticipated for FY2023, however, there are
two noted exceptions to budget, as follows:
a. Electric Operations — The retirement of one electrician position was budgeted to
become effective mid -year 2022. Following further evaluation of workload and
available staffing resources for FY2022 and FY2023, the retirement of this position
has been postponed for reconsideration at a later date.
b. Conservation & Customer Service Senior Analyst staff promotion to Special
Projects Administrator, effective 1/1/2023. The scope of work and responsibility of
the District's current Conservation & Customer Service Senior Analyst has
expanded over the last year in response to the District's clean energy and
sustainability goals. Historically, both positions have been included on the Board
approved Unrepresented Wage Range Schedule, however the Special Projects
Administrator has been vacant over the course of the recent budget cycles. The
updated Special Projects Administrator position job description includes some
overlapping responsibilities with the current Conservation & Customer Service
Senior Analyst position. As the District's clean energy, water conservation and
sustainability programs continue to expand, staff will further evaluate staffing
resources for future budget cycles.
GOALS:
1. Manage for financial stability and resiliency
5. Developing and inclusive culture drives organizational integration and success
FISCAL IMPACT:
The FY22 and FY23 Budget assumed compensation increases of 4.5% in FY22 and 3.0%
in FY23 respectively, for both Represented and Unrepresented employee groups.
The represented 2023 pay increases of 5.0% equate to a $331,000 labor cost (including
overtime) impact and is $133,000 greater than the budgeted amount which anticipated
an increase of 3.0%. The unrepresented 2023 pay increases of 5.0% equate to a
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$207,000 labor cost impact and is $83,000 greater than the budgeted amount which
anticipated an increase of 3.0%.
Excluding capital charged labor, the rate increases combined variance to operating
expense for FY23 is approximately $457,000, with cost distribution estimate as follows:
- Electric Utility - $251,000 or 1.8% of operating expense budget (excluding purchased
power) and equates to $1.42 per customer per month
- Water Utility - $206,000 or 1.8% of operating expense budget and equates to $1.26 per
customer per month
Conservatively, the above $457,000 variance to budget will decrease operating reserves,
which are approximately 50% of operating expenses; sufficient to fund the variance. The
FY23 budget includes a compensation contingency of $61,000 and position vacancies
(as they naturally occur) will partially mitigate the variance impacts noted above.
All of the above amounts are presented before overhead impacts for simplicity of analysis.
The variance of $457,000 is estimated including overhead impacts to be $750,000.
Regarding the noted exceptions to FY23 Budget, variances to budget FY23:
a. Electrician position - $138,000 excluding overhead, $226,000 including overhead
b. Promotion - $16,500 excluding overhead, $27,000 including overhead
As noted above, there are sufficient operating reserves to fund these two noted variances
as well.
ATTACHMENTS:
Attachment 1 - Exhibit A: MOU Wage Range Schedule 2023
Attachment 2 - Unrepresented Wage Range Schedule 2023
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