Report No:

Meeting Date:

Alameda-Contra Costa Transit District

STAFF REPORT

TO: AC Transit Board of Directors

FROM: Michael A. Hursh, General Manager

SUBJECT: Board Workshop: Wage, Salary and Fringe Benefit Trends

BRIEFING ITEM

RECOMMENDED ACTION(S) :

16-003

January 13, 2016

Consider receiving informational report on Wage, Salary and Fringe Benefit Trends.

EXECUTIVE SUMMARY:

This report provides the Board with an overview of historical wage, salary and fringe benefit trends over the previous 10 year period.

BUDGETARY /FISCAL IMPACT:

There is no fiscal impact associated with this report. The report is informational only.

BACKGROUND/RATIONALE:

As outlined in the presentation attached to this report, staff w ill provide an overview of AC Transit's historical wage, salary and benefit trends. This overview will include a comparison of salaries and wages to fringe benefits, budgetary impacts, and more specifically, premiums for

healthcare costs and how these benefits compare with other transit agencies. The presentation

will also cover pension contributions, workers' compensation, paid time off, and other fringe

benefits

ADVANTAGES/DISADVANTAGES:

This report does not recommend a course of action with notable advantages or disadvantages.

ALTERNATIVES ANALYSIS:

This report is informational only. There is no alternative analysis associated with this report.

PRIOR RELEVANT BOARD ACTIONS/POLICIES:

None

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Report No. 16-003

Page 2 of 2

ATTACHMENTS: 1: Presentation on Wages, Salary and Fringe Benefits

Executive Staff Approval:

Reviewed by:

Prepared by:

Michael A. Hursh, General Manager

Denise C. Standridge, General Counsel James Pachan, Acting Chief Financial Officer

Donald Eckert, Director of Management & Budget

Elisabeth West, Human Resources Manager

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Staff Report 16-003 Attachment 1

cT~N~~ - ·- - - ---

Salaries & Wages and Benefits Trends

Presentation to the Board of Directors January 13, 2016

Presented by Michael A. Hursh, General Manager

Elisabeth West, Human Resources Manager Donald Eckert, Director of Management & Budget

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2,500

2,000

1,500

1,000

500

2,276

Employee Numbers

2,284 - --------2,181

2,130 2,014

FY15 has 321 fewer employees than the peak in F~

1 912 1,963 1,817 1,825

1·878 ,

FY06 FY07 FYOS FY09 FY10 FY11 FY12 FY13 FY14 FY15

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Salaries & Wages Compared to Fringe Benefits

t/) $160 s::::: 0

;.... $140 ::!:

$120

$100

$80

$60

$40

$20

$0 FY06 FY07 FYOB FY09 FY10 FY11 FY12 FY13 FY14 FY15

• Salaries & Wages • Fringe Benefits

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FY15

FY14

FY13

FY12

FY11

FY10

FY09

FY08

FY07

FY06

S&W and Fringe Benefits Percentage of Total Revenues

32% 38%

30% 37%

30% 33%

32% 35%

33% 35%

36% 36%

37% 33%

39% 34%

36% 31%

36% 32%

0% 10% 20% 30% 40% 50% 60% 70%

• Salaries & Wages • Fringe Benefits

80%

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Components of Benefits Costs

o HEALTH 11 PENSION • PTO

30%

iii OPEB • WORKERS COMP

OTHER

• Health includes Medical, Dental and Vision

• PTO = Paid Time Off

• Other includes FICA, Life Ins., Unemployment Ins., Work Clothing, Misc.

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Ill $60 c: 0

~

$50

$40

$30

$20

$10

$0 -FY10 FY11

Health Care Costs

- - - -FY12 FY13 FY14 FY15

• Vision • Dental • Health

Health Premiums projected to increase 6% per year

- - - -FY16 FY17 FY18 FY19

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How Do We Compare? As of FY 2015 - 16

Unrep'd - AFSCME ATU- SEIU

District Location Employer Premium Portion Employer Premium Portion

Comments Single Family Single Family

Coverage Coverage Coverage Coverage

**District pays up to Bay Area Basic Premium

BART San Francisco, CA 81% 92.7% 81% 92.7% Rates for the PERS HMO Blue Shield Access+ ori

PERS HMO Kaiser Plan, less 2015 employee

contribution of ~134.86Lmonth .

Utah Tra nsit Authority Salt Lake City, UT 83% 82% ATU pays the same as Non-rep'd

Hampton Roads Transit Hampton, VA 100% 85% HRT pays 100"/o/85% for Dental but pays 0% for

Vision. (Employee pays 100"/o for vision.)

SMART Petaluma, CA 85% 85% SMART pays 80% fo r Dental and 100% for

Vision

Sacra mento Regional Sacremento, CA 90% 90%

Transit

San M ateo County Transit !

San Carlos, CA 90% 90% District

SFMTA San Francisco, CA 92.5% 83% 92.5% 83% The Di strict pays 100% of premium for Dental

and Vision coverage.

Santa Cruz Metropolitan Santa Cruz, CA 100% 95%

Transi t

*District pays up to t he Kaiser Bay Area family

rat e for employ ees. Employees pay the excess

Valley Transit Authority San Jose, CA 100%* 80.8% 93.2%** above the Kaiser Bay Area family rate.

**SEIU/TAEA pay $50 per month contribution

plus any premium in excess of Ka iser HMO

fami ly premium.

AC Trans it Oakland, CA 90% 84.6%* 94.6%* *ATU pay a flat rate contribution of $120 per

month.

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Kaiser Family Rate History % Change from Previous Year

40%

35%

30%

25%

20%

15%

10%

5%

0%

-5%

-10%

-15%

1966 $24.60 2015 $2,208

~~~~~~ ~ !~~~~~~~~~~~~~~~~~~~~# ~ ~ ~ ~~~~~~~~~~~~~~~~~~ ~~~~~~ ~~·~~~~~~~~~~~~~~~~~~~~~-~~~~~~~~~~~~~~~~~~~~

36 of 49 Years, Cost Increased by 5% or more

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FY16 Budget Benefit Health Plans Kaiser ATU AFSCME/Unrepresentative IBEW Total

Health Net ATU AFSCME/Unrepresentative IBEW Total

Metropolitan Life Dental Employee premiums

Administrative Fee Total

Vision Service Plan (Vision) Active employees Total

Benefit Plan Total

2015 Annual Total

$25,618,605.24 $2,784,125.68

$193,130.04 $28,595,860.96

$7,753,734.95 $2,896 ,669.88

$239,890.08 $10,890,294.91

$3,693,699.12 $95.880.00

$3,789,579.12

$568,781.28

$43,844,516.27 10

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0 $50 c: 0 :: $45 :E

$40

$35

$30

$25

$20

$15

$10

$5

$0

PENSION CONTRIBUTIONS {Cash)

Life expectancy tables were modified /

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Budget

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Ill $16 s:::: 0 ·-~ $14

$12

$10

$8

$6

$4

$2

$0 FY06

Workers Compensation Recently, the District has been working to reduce the backlog of claims. Costs should decrease in the future.

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15

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"' $25 c: 0

~

$20

$15

$10

$5

$0 FY06

PAID TIME OFF

FY07 FY08 FY09 FY10 FY1 1 FY12 FY13 FY14 FY15

• Sick • Vacation • Holiday Other Paid Absences

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C/) $5.0 c

.Q

~ $4.5

$4.0

$3.5

$3.0

$2.5

$2.0

$1.5

$1.0

$0.5

$0.0 FY06

• Life Ins.

Other Fringe Benefits EXCLUDES FICA COSTS

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15

• Unemployment Ins. • Clothing Allowance • Misc. Fringe Benefits

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