Title
Discussion and Possible Approval of the Revised FY27 Salary Plan with Positions Re-Graded and Possible Approval of Two Additional FTE Positions in the Transit Division
Recommended Action
I move that Council approve the revised FY2027 Salary Plan Job Class Order schedule as shown in Attachment A and I further move that Council approve the addition of two new Full Time Equivalent positions for the Transit Division.
County Manager's Recommendation
The County Manager recommends that Council approve the revised FY2027 Salary Plan Job Class Order as requested.
Body
Atomic City Transit (ACT) is an essential public service connecting Los Alamos and White Rock residents to employment, medical appointments, education, shopping, and other daily necessities. However, the County’s ability to provide reliable and consistent transit service depends on its ability to recruit and retain qualified drivers. The current driver compensation structure must be reevaluated to address significant retention challenges, workforce instability, and the long-term sustainability of the transit system.
One of the strongest indicators that the current compensation structure needs to change is ACT’s driver retention history. Out of the last 103 new hires, only 12% of drivers hired have been retained, which means 88% of newly hired drivers have left their positions. This level of turnover demonstrates a serious workforce stability problem. Although recruitment is important, continually hiring and training replacement drivers without addressing the reasons employees leave is not a sustainable solution. The County must recognize that compensation is a critical component of attracting qualified applicants and encouraging experienced drivers to remain with ACT. When wages and benefits are not competitive with other employment opportunities, the transit system risks losing drivers and repeating the costly cycle of recruitment, onboarding, and training.
This issue extends beyond employee wages. When ACT cannot retain enough qualified drivers, the consequences are experienced throughout the community.Staffing shortages can result in: reduced or canceled transit trips, limited operating hours and service availability, reduced opportunities to restore or expand routes, less dependable transportation between Los Alamos and White Rock, reduced access to employment, healthcare, education, and essential services and greater pressure on remaining drivers. These impacts are particularly significant for seniors, individuals with disabilities, students, employees, and residents who depend on public transportation. Reliable transit is not simply a convenience. It is an important community service that supports independence, economic opportunity, accessibility, and quality of life.
Revising Atomic City Transit's driver compensation structure is an investment in the long-term stability and success of the County's public transportation system, below is a staff proposal to Council to address these concerns in the Transit Division of Public Works.
The FY2027 Salary Plan Job Class Order document represents the County's job titles and salary grades arranged by Job Classes/Families, to include the minimum, midpoint and maximum of the grade, and the Fair Labor Standard Act (FLSA) designation of Exempt (EX) or Non-Exempt (NE) for each position (Attachment A).
The County Charter, County Code, and the Personnel Rules and Regulations provide the basic framework through which the job classification and compensation system is maintained and administered. The establishment of new job classes and the archive of existing classes are subject to approval by Council.
One of the Strategic Goals of Council is Employee Recruitment and Retention. To that end, staff is requesting Council approval of the revised FY2027 Salary Plan Job Class Order to assist with recruitment and retention of County employees. Changes include the following:
Grade Changes:
To address Council’s Initiatives Quality Excellence of Recruitment and Retention of staff, as well as Effective, Efficient, and Reliable Services, these changes will improve recruitment and retention of qualified drivers. Atomic City Transit must maintain competitive wages in an increasingly competitive labor market. Driver vacancies have led to service disruptions, including reduced routes, canceled trips, and limited operating hours. Investing in competitive compensation supports workforce stability, reduces turnover and training costs, and helps ensure reliable transit service for residents who depend on transportation for work, health care, education, and other essential needs. Adequate staffing is also critical to maintaining current service levels and supporting future service enhancements.
PUBLIC WORKS:
TRANSIT OPERATOR 1 - Increase from Grade 119 to Grade 121
TRANSIT OPERATOR 2 - Increase from Grade 121 to Grade 123
TRANSIT CUSTOMER SERVICE REPRESENTATIVE/ DISPATCHER - Increase from Grade 121 to Grade 123
SR. TRANSIT CUSTOMER SERVICE REPRESENTATIVE/ DISPATCHER - Increase from Grade 123 to Grade 125
TRANSIT OPERATOR LEAD - Increase from Grade 123 to Grade 125
TRANSIT MANAGER - Increase from Grade 210 to Grade 212
Under County Manager Authority:
The following Step and Retention pay increases will be made under the County Manager New Hire and Retention Policy no. 1170:
Utilizing the CMO New Hire and Retention Policy No. 1170 in conjunction with the proposed grade increases will help address compensation gaps within the Transit Division and improve competitiveness with other employers in the region.
TRANSIT OPERATOR 1 - New Employees will start at Step 20 minimum and receive the $4/hr. Retention Pay. Existing Employees will increase by 10 Steps and receive the $4/hr. Retention Pay.
TRANSIT OPERATOR 2 - New Employees will start at Step 20 minimum and receive $4/hr. Retention Pay. Existing Employees will increase by 10 Steps and receive $4/hr. Retention Pay.
TRANSIT CUSTOMER SERVICE REPRESENTATIVE/ DISPATCHER - New Employees will start at Step 20 minimum and receive $4/hr. Retention Pay. Existing Employees will increase by 10 Steps and receive $4/hr. Retention Pay.
Sr. TRANSIT CUSTOMER SERVICE REPRESENTATIVE/ DISPATCHER - New Employees will start at Step 20 minimum and receive $4/hr. Retention Pay. Existing Employees will increase by 10 Steps and receive $4/hr. Retention Pay.
TRANSIT OPERATOR LEAD - New Employees will start at Step 20 minimum and receive $4/hr. Retention Pay. Existing Employees will increase by 10 Steps and receive $4/hr. Retention Pay.
TRANSIT SUPERVISOR - New Employees will receive the $4/hr. Retention Pay. Existing Employees will receive $4/hr. Retention Pay.
The following positions will not receive any steps or retention pay:
Sr. OFFICE SPECIALIST position will be re-classed to an OFFICE MANAGER Position with Safety Sensitive and Dispatch duties will be added to job description. This position will supervise the Dispatchers.
Sr. MANAGEMENT ANALYST
TRANSIT MANAGER
FTE Additions:
Reduce the current 4.55 Limited Term FTE’s to 2.55 Limited Term FTE’s
Add 3 New Transit Operator 1 FTE’s
Add 1 New Transit Supervisor FTE
This increases the Total FTE Count for Transit from 37.97 to 39.97 (includes the Limited Term positions)
Attachment A is the revised Salary Plan Job Class Order, with the recommended changes to the Transit positions.
Attachment B is the Transit Manager justification for these proposed changes.
Attachment C provides regarding the vacancy rate of the Transit operator positions, illustrating an 88% turnover rate.
Attachment D is the Budget forecast for FY2027 and FY2028
Alternatives
Council could choose not to approve the changes to the FY2027 Salary Plan Job Class Order.
Fiscal and Staff Impact/Planned Item
There will be no fiscal impact to the FY2027 Budget with implementation of the full Transit Division Compensation Plan that includes the grade changes and the FTE changes. The overall fiscal impact, assuming implementation of these changes on January 1, 2027, with every position is filled through June 30, 2027, an additional $412,000 would be expended from Salaries and Benefits. This would be offset by the salary and benefit savings due to vacancies in the amount of $566,000 incurred for the period July 1 through October 31, 2026. The current year budget is adequate to accommodate these changes. Additionally, the New Mexico Department of Transportation (NMDOT) has committed to provide up to an additional $262,000 in Federal Funding to cover 50% of operating costs through September 30, 2027.
A budget analysis was completed projecting ahead to the FY2028 budget that projects this plan would add an additional $890,000 for Salary and Benefits. Up to $350,000 with a 50% match could potentially be covered by additional federal funding from NMDOT. The FY208 budget will be address during the FY2028 budget process.
Attachments
A - FY27 REVISED Salary Plan Job Class Order
B - Justification
C - New Hire and Attrition
D - Budget Forecast Worksheet