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Home My WebLink AboutItem 10c - Minimum Wage Adjustments STAFF REPORT Administrative Services Department DATE: December 7, 2021 TO: Honorable Mayor and City Council FROM: Hue Quach, Administrative Services Director By: Shama P. Curian, Human Resources Administrator SUBJECT: RESOLUTION NO. 7396 APPROVING WAGE ADJUSTMENTS FOR UNREPRESENTED, NON-BENEFITED PART-TIME EMPLOYEES IN ACCORDANCE WITH CALIFORNIA’S MINIMUM WAGE INCREASE EFFECTIVE JANUARY 1, 2022 Recommendation: Adopt SUMMARY On April 4, 2016, Governor Jerry Brown signed Senate Bill 3 (“SB 3”), incrementally increasing California’s minimum wage to reach $15.00 per hour by January 1, 2022. In order to continue to comply with SB 3, it is recommended that the City Council adopt Resolution No. 7396 approving wage adjustments for unrepresented, non-benefited part-time employees to meet the expected minimum wage increase of $15.00 per hour effective January 1, 2022. The recommended adjustments are projected to increase the City’s Operating Budget by approximately $25,105 for the remainder of Fiscal Year 2021-22. BACKGROUND Governor Jerry Brown signed SB 3 on April 4, 2016, increasing California’s minimum wage in increments of $1.00 per hour annually to reach $15.00 per hour on January 1, 2022. The minimum wage was set as follows: Effective Date Minimum Hourly Wage January 1, 2017 $10.50 January 1, 2018 $11.00 January 1, 2019 $12.00 January 1, 2020 $13.00 January 1, 2021 $14.00 January 1, 2022 $15.00 Resolution No. 7396 Approving Minimum Wage Adjustments December 7, 2021 Page 2 of 3 Additionally, after the state minimum wage reaches the $15.00 per hour threshold for all employees, potential increases will be adjusted annually by the State’s Department of Finance for inflation based on the national consumer price index for urban wage earners and clerical workers (“CPI-W”). The most this increase could be in any one year is 3.5%. In previous years, the City Council had adopted resolutions establishing wage adjustments for part-time (unrepresented) employees to comply with the State’s established minimum wage. Over time, the implementation of the new part-time schedules had created compaction to classifications within the same job family of the full-time positions’ pay ranges. With the adoption of the 2021-24 Memoranda of Understanding, those positions with compaction concerns have, in part, been addressed. The expected Cost of Living Adjustments of 3% for the full-time miscellaneous bargaining group employees on July 1, 2022, will create a greater gap between the part-time and full-time positions. The lone exception to this may be growing compaction between various part-time and entry-level full-time positions in the Recreation & Community Services Department. Staff from Human Resources will work with that Department to review those specific positions to ensure staff within these ranges have reasonable separation to allow for growth while also remaining competitive within the industry. This work will be completed in the next few months and recommendations for modification, if any, will be brought to the City Council for consideration at that time. DISCUSSION A comprehensive review of the City’s part-time wage schedule was completed and presented to the Executive Team to determine which of three potential options could be implemented for the 2022 minimum wage increase. The option chosen would adjust the start of the range to the minimum of $15.00 per hour to preserve the City’s ability to hire part-time personnel at a lower step. This recommended approach will also maintain the appropriate differential of 2.5% along the range levels to emphasize the distinguishing characteristics of skillset, experience, and knowledge needed. Updating the part-time wage schedules as such will continue to ensure the City’s ability to attract, recruit, and retain entry level personnel. The proposed unrepresented, part-time wage schedules are attached as Exhibit “A” and Exhibit “B” within Resolution No. 7396. Exhibit “A” illustrates part-time positions with Non-CalPERS Retirement, while Exhibit “B” represents the part-time positions enrolled in CalPERS due to mandatory guidelines based on hours worked or having been vested in CalPERS from prior employment. Exhibit “A” reflects the same wage adjustments made to Exhibit “B”; however, Exhibit “B” includes a 7% increase that is currently in place to offset the employee pension contributions. Resolution No. 7396 Approving Minimum Wage Adjustments December 7, 2021 Page 3 of 3 ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the environment. As such, this matter is exempt under CEQA. FISCAL IMPACT The recommended adjustments are projected to increase the City’s Operating Budget cost by approximately $25,105 for the remainder of Fiscal Year 2021-22. The anticipated increase is a conservative projection as it is based on actual hours worked during the summer season of the affected part-time employees. At this time, no additional budget appropriation is requested as the projected increase can be absorbed in the Fiscal Year 2021-22 General Fund Operating Budget. RECOMMENDATION It is recommended that the City Council determine that this action does not constitute a project and is therefore, exempt under the California Environmental Quality Act; and adopt Resolution No. 7396 approving wage adjustments for unrepresented, non- benefited part-time employees in accordance with California’s minimum wage increase effective January 1, 2022. Attachments: Resolution No. 7396 Exhibit “A” – Part-Time Wage Schedule Exhibit “B” – CalPERS Part-Time Wage Schedule Range Number Title Step A Step B Step C Step D Step E PT12 Activity Leader I Library Aide Laborer Police Cadet $15.00 $15.38 $15.76 $16.15 $16.56 PT13 Administrative Intern $15.38 $15.76 $16.15 $16.56 $16.97 PT14 Activity Leader II $15.76 $16.15 $16.55 $16.97 $17.39 PT15 $16.15 $16.55 $16.96 $17.39 $17.82 PT16 Fire Prevention Aide $16.55 $16.96 $17.38 $17.82 $18.27 PT17 $16.96 $17.38 $17.81 $18.27 $18.73 PT18 Camp Manager Library Clerk $17.38 $17.81 $18.26 $18.73 $19.20 PT19 $17.81 $18.26 $18.72 $19.20 $19.68 PT20 Tram Driver $18.26 $18.72 $19.19 $19.68 $20.17 PT21 $18.72 $19.19 $19.67 $20.17 $20.67 PT22 $19.19 $19.67 $20.16 $20.67 $21.19 Communications & Marketing Specialist I $26.63 $27.30 $27.98 $28.69 $29.40 Communications & Marketing Specialist II $30.88 $31.66 $32.45 $33.26 $34.09 $21.43 per hr $23.64 per hr Reserve Police Officer (Level I): Step A of Police Officer salary $38.46 per hr (as of 7/1/21) Police Investigation Technician: Step I of Police Officer salary $46.86 per hr (as of 7/1/21) Volunteers paid a stipend include: Reserve Firefighter $25.00 per shift Reserve Police Officer (Level III) $300.00 annually EXHIBIT "A" City of Arcadia Part-Time Hourly Wage Schedule Non- CalPERS Retirement Effective January 1, 2022 VolunteerServicesCoordinator: ReservePoliceOfficer(LevelII): Range Number Title Step A Step B Step C Step D Step E PTP12 Activity Leader I Library Aide Laborer Police Cadet $16.05 $16.45 $16.86 $17.28 $17.72 PTP13 Administrative Intern $16.46 $16.86 $17.28 $17.72 $18.16 PTP14 Activity Leader II $16.86 $17.28 $17.71 $18.16 $18.61 PTP15 $17.28 $17.71 $18.15 $18.61 $19.07 PTP16 Fire Prevention Aide $17.71 $18.15 $18.60 $19.07 $19.55 PTP17 $18.15 $18.60 $19.06 $19.55 $20.04 PTP18 Camp Manager Library Clerk $18.60 $19.06 $19.54 $20.04 $20.54 PTP19 $19.06 $19.54 $20.03 $20.54 $21.06 PTP20 Tram Driver $19.54 $20.03 $20.53 $21.06 $21.58 PTP21 $20.03 $20.53 $21.05 $21.58 $22.12 PTP22 $20.53 $21.05 $21.57 $22.12 $22.67 Communications & Marketing Specialist I $28.49 $29.22 $29.94 $30.70 $31.45 Communications & Marketing Specialist II $33.04 $33.87 $34.72 $35.59 $36.48 VolunteerServicesCoordinator:$22.93 per hr ReservePoliceOfficer(LevelII):$25.30 per hr Law Enforcement Recruit: Step A of Police Officer salary $38.46 Law Enforcement Recruit/ Pre-Service: Step A of Police Officer salary $38.46 per hr (as of 7/1/21) EXHIBIT "B" City of Arcadia Part-Time Hourly Wage Schedule CalPERS Retirement Effective January 1, 2022 per hr (as of 7/1/21)