REPORT TO COUNCIL
SUBJECT
Title
Action to Adjust Compensation Ranges for Electric Utility Management Positions to Align with the Strategic Plan Implementation
Report
BACKGROUND
During the development of the City's 2018 Silicon Valley Power (SVP) Strategic Plan (Strategic Plan), considered and approved by Council at its December 4, 2018 meeting, a key initiative was to review the Department's organizational design to ensure it aligns with a high level of service delivery, resource optimization, and staff development. As part of that process, compensation ranges were also reviewed and compaction between some critical classifications was noted. To fully implement the Strategic Plan's goals, these areas of salary compaction should be addressed and alleviated with revised ranges.
City Council approves the City's compensation plan pursuant to the City's Personnel & Salary Resolution, Section 9.
DISCUSSION
As part of the Strategic Plan, Council approved adding two Assistant Director positions and an organizational restructure to achieve maximum performance, ensure excellent cross-divisional coordination, and sound succession planning. Council also received information related to salaries and compaction between the department's classified and unclassified staff, and authorized staff to study salary compaction, meet and confer with the appropriate bargaining unit and return to Council with an adjusted salary schedule for Unit 9.
Salaries and Compaction
Recruitment and retention is challenging in this industry, which is largely influenced by quasi- or private sector businesses that are able to compensate their employees much higher. It is not uncommon for staff to begin their work at SVP and be recruited into other agencies where compensation is higher. Market pressures from investor and publicly owned utilities and consumer choice aggregators have led to compensation adjustments for certain bargaining units, which have created compaction of salaries of classified pos...
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