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Report ID: 24-096a   
Type: Regular - Finance & Audit
Meeting Body: Board of Directors - Regular Meeting
Meeting Date: 12/11/2024 Final action:
Recommended Action: Consider the adoption of Resolution No. 24-029 approving the new classification of Deputy Executive Officer Retirement Plan. [Previously considered by the Board of Directors on April 24, 2024.] Staff Contact: Michael Hursh, General Manager/Chief Executive Officer
Attachments: 1. STAFF REPORT, 2. Att. 1 - Resolution No. 24-029, 3. Exh. A. - Deputy Executive Officer Retirement Plan, 4. Att. 2. - Career Ladder Retirement Plan Series
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TO:                     AC Transit Board of Directors                                          

FROM:                                             Michael A. Hursh, General Manager/Chief Executive Officer

SUBJECT:                     New Classification                     

 

ACTION ITEM

AGENDA PLANNING REQUEST:   


RECOMMENDED ACTION(S):

 

Title

Consider the adoption of Resolution No. 24-029 approving the new classification of Deputy Executive Officer Retirement Plan. [Previously considered by the Board of Directors on April 24, 2024.]

 

Staff Contact:

Michael Hursh, General Manager/Chief Executive Officer

Body                                          

STRATEGIC IMPORTANCE:

 

Goal - High-Performing Workforce

Initiative - Employee Recruitment, Training and Retention

 

Current classification specifications serve as a foundation for a variety of human resources functions that include recruitment and retention strategies, workforce development, compensation determination, and retirement system administration.

 

BUDGETARY/FISCAL IMPACT:

 

There is no budgetary or fiscal impact. This staff report request is for the Board to approve the classification (job description) only and not authorize budget for this position.

 

BACKGROUND/RATIONALE:

 

On April 24, 2024, staff presented Staff Report 24-096 which requested the Board adopt Resolution No. 24-007 approving a new classification series for the Retirement Plan. The proposed retirement classification series included revisions to the Executive Officer Retirement Plan, Principal Retirement Plan Analyst, Retirement Plan Analyst, and Retirement Plan Assistant Analyst classifications, and the approval to three new classifications: Deputy Executive Officer Retirement Plan; Senior Retirement Plan Analyst; and Retirement Plan Associate Analyst.  After discussion, the Board approved amended Resolution 24-007, approving a new classification series for the Retirement Plan, including the revised classifications of Executive Officer Retirement Plan, Principal Retirement Plan Analyst, Retirement Plan Analyst, Retirement Plan Assistant Analyst, the new classifications of Senior Retirement Plan Analyst and Retirement Plan Associate Analyst. The approved amended Resolution 24-007 did not include approval of the new classification Deputy Executive Officer Retirement Plan. Instead, the Board continued the consideration of the Deputy Executive Officer Retirement Plan classification until either the budget is considered or sooner, at the discretion of the AC Transit Board President.  At the request of the Board President this matter was placed back on the agenda for the December 11, 2024, Board meeting. 

 

The proposed Deputy Executive Officer Retirement Plan classification would complete the Retirement Plan series as revised by the District’s Board of Directors in April 2024. The proposal to add this classification results from a proactive planning process in which the Human Resources Classification and Compensation Unit collaborated with the Executive Officer Retirement Plan to modernize and expand the scope of the entire Retirement Plan classification series. With Board approval, the series will consist of seven classifications, ranging from entry-level to executive officer level, as visually depicted in the attached Career Ladder Retirement Plan Series.

 

The Retirement Plan classification series furthers a vision for managing retirement benefits and assets by the Retirement Board and associated retirement staff, while emphasizing extensive outreach and customer service for future and existing District retirees. Implementing this vision will require a Deputy Executive who will serve as a second-in-command in the absence of the Executive Officer and assisting in the day to day oversight of the department. Currently there is no management-level classification capable of assuming the Executive Officer’s responsibilities. Adopting this classification level is the next step in supporting the Retirement Plan’s vision of ensuring smooth operational continuity in the Executive Officer’s absence, ensuring the fiduciary responsibilities of the retirement plan are fulfilled by dedicated Retirement staff, and  establishing a succession plan.

 

The new Deputy Executive Officer job classification reads as follows:

 

Deputy Executive Officer Retirement Plan

This new senior management classification assists the Executive Officer in directing the functions, activities, and staff within the Retirement Department, and acts as the Executive Officer in the Executive Officer’s absence. This classification completes the Retirement Department’s classification series contributing to the department's strategic objectives of career progression and succession planning. Currently, there is no budgeted position assigned to this classification, as it is reserved for future use when the next phase of the department’s vision necessitates adding an approved budgeted position. This classification is assigned to Unrepresented Salary Plan Grade 13 and reports directly to the Executive Officer Retirement Plan.

 

When this classification was previously presented to the Board in April 2024, questions regarding this classification being designated unrepresented were raised. This classification has been designated Unrepresented through the District’s standard guidelines for determining union status. Section 1.2 of the American Federation of State, County, and Municipal Employees (AFSCME) Collective Bargaining Agreement (CBA) establishes the criteria for determining whether this classification should be represented.  Section 1.2(B) states as follows:

 

The determination of whether a new or modified classification/position is within the Unit shall be based on:

 

1.                     The criteria/standards established as a result of the management team findings in accordance with Resolution No. 838 (Appendix A), i.e.:

 

                     Whether a particular classification/position is crucial to the negotiation, grievance and/or disciplinary processes involving the Unit;

 

or (emphasis added)

 

                     Whether a particular classification/position is in a support position for one of these classifications and handles materials related to negotiations/grievances and/or the disciplinary process involving the Unit.

 

2.                     Comparing the duties and responsibilities of each new or modified classification with the duties and responsibilities of classifications in the Unit and those out of the Unit to determine whether the new or modified classification is essentially more similar in character, function, and scope to classifications in the Unit or to those out of the Unit.

 

While this classification is not involved in the negotiation, grievance or disciplinary process, it does support the Executive Officer position that is involved in negotiations, grievances, and the disciplinary process, and the position will also handle materials related to negotiations, grievances, and/or the disciplinary process within the unit, satisfying the second bullet point under section 1.2(B)(1).  Additionally, the level of authority, characteristics, duties and pay grade of the Deputy Executive Officer are most similar to other director level classifications at the District, all of which are unrepresented.  Since the Deputy Executive Officer classification does not currently exist, work that would be assigned to this classification is currently being performed by Executive Officer Retirement Plan, an unrepresented classification.  Overall, the Deputy Executive Officer classification is most like classifications that are unrepresented, satisfying the requirements of section 1.2(B)(2).

 

ADVANTAGES/DISADVANTAGES:

 

Approving the Deputy Executive Officer classification will ensure the Retirement department’s classification specifications are aligned with business needs, create consistency with industry standards, facilitate clear paths for career development, internal promotional opportunities, and establish a succession plan. 

 

There are no identified disadvantages to creating this new classification.

 

ALTERNATIVES ANALYSIS:

 

The Board could choose not to approve the Deputy Executive Officer classification, which is not recommended. Not including a Deputy Executive Officer classification as part of the classification series will  will negatively impact the department’s ability to meet its business needs while developing  functional career paths.

 

PRIOR RELEVANT BOARD ACTION/POLICIES:

 

SR 24-096 - New and Revised Classifications (Retirement)

 

ATTACHMENTS:

 

1.                     Resolution No. 24-029 and related Exhibit.

2.                     Exhibit A - Deputy Executive Officer Retirement Plan

3.                     Att. 2 - Career Ladder Retirement Plan Series

 

Prepared by:

Emily Cruz, Human Resources Manager

 

In Collaboration with:

James Arcellana, Senior Attorney

Anne Kennedy Hayes, Acting Senior Management Analyst

 

Approved/Reviewed by:

Michael A. Hursh, General Manager/Chief Executive Officer

Chris Andrichak, Chief Financial Officer

Aimee L. Steele, General Counsel/Chief Legal Officer