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Adoption of Resolution Amending the Salary Schedule for Part-Time Classifications Effective June 9, 2019 to Reflect Changes to the City of Alameda Minimum Wage and to Maintain Adequate Differentials Between Part-Time Job Categories. (Human Resources 2510)
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To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
On October 16, 2018, the City Council approved a citywide minimum wage beginning July 1, 2019. The minimum wage for the City of Alameda (City) will now increase to $13.50 an hour on July 1, 2019, and to $15.00 an hour on July 1, 2020. Currently, the State minimum wage is $12.00 an hour. The State Minimum wage will reach $15.00 an hour January 1, 2023. Staff is recommending that the City Council approve a resolution amending the City’s Part-Time Salary Schedule to implement the $13.50 an hour minimum wage effective June 9, 2019. The estimated fiscal impact to the City is $173,000 in annual salary costs, primarily in the Recreation and Parks and Library Departments.
BACKGROUND
Under the City Charter, it is the responsibility of the City Council to establish and abolish offices and positions of employment and to fix the compensation and duties thereof (City of Alameda Charter Section 3-7(G)). The City Council has approved, by Resolution, an increase to the citywide minimum wage to $13.50 per hour by July 1, 2019. The Salary Schedule, as reflected in Exhibit 1, will ensure the City’s compliance with the new City minimum wage and ensure adequate differentials between part-time job categories. (Exhibit 1)
DISCUSSION
The classifications currently below the $13.50 per hour minimum wage include: Recreation Leader, Recreation Specialist I, Aquatics Lifeguard, Aquatics Instructor, Tiny Tot Aide, Tiny Tot Instructor, Scorekeeper, Library Aide, Senior Library Aide, Administrative Clerk, Maintenance Assistant I, and Maintenance Assistant II. Staff is proposing to increase the salaries for these classifications up to or above $13.50 per hour. In addition, several classifications that are not currently below the new minimum wage are being adjusted as well to avoid salary compaction with lower classifications. These classifications include: Park Monitor, Lead Park Monitor, Library Specialist I, Library Specialist II, and Police Assistant I.
The only classification that would be an exception to the new minimum wage is the Recreation Learner, which is exempt from minimum wage requirements. This classification provides work opportunities for individuals with limited or no experience as a trainee and must conform to the State Learner and Federal Youth Opportunity program. The Recreation Learner staff are generally high school students with approved work permits.
The City hires a number of part-time staff for the summer on June 9, 2019. This date is also the start of a pay period. As a result it is recommended to make the change effective June 9, 2019. This will ensure the City is compliant with the $13.50 an hour requirement on July 1, 2019.
ALTERNATIVES
An alternative available to the City Council is to adopt a resolution amending only the part-time classifications that will be below the new $13.50 per hour minimum wage (highlighted in blue on the attached salary schedule). Implementing this alternative would minimize the City’s financial impact but result in salary compaction between lower and higher classifications.
Another alternative is to adopt a resolution amending the part-time classification schedule to start July 1, 2019. There is a minimal financial savings from implementing the increase three weeks later. However, the full-time staff who process timesheets and payroll would be required to process summer staff twice - once when hired to start training and programs and again for July 1st. It also takes a significant amount of staff time to implement a salary change in the middle of a pay period since all have to be processed manually. It is anticipated that these additional staff costs exceed any part-time salary savings.
FINANCIAL IMPACT
Salary increases related to the minimum wage, as well as compaction and merit increases, have been incorporated into departmental biennial budget requests. The estimated fiscal impact by department for Fiscal Year 2019-20 will be approximately $135,000 for Recreation and Parks and $38,000 for Library, for a total anticipated increase of $173,000. This amount also includes other associated costs including increased PARS and Medicare contributions.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is in conformance with the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
Adoption of a revised salary schedule is not subject to environmental review in that it is not a “project” as defined by California Environmental Quality Act (CEQA). A “project” does not include the creation of governmental funding mechanisms or other governmental fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. CEQA Guidelines, section 15378(b)(4).
CLIMATE IMPACTS
There are no climate impacts associated with this resolution.
RECOMMENDATION
Adopt a resolution amending the Salary Schedule for part-time classifications effective June 9, 2019 to reflect changes to the City of Alameda minimum wage and to maintain adequate differentials between part-time job categories.
CITY MANAGER RECOMMENDATION
The City Manager concurs with Human Resources Director recommendation. The recommendation meets the intent of the City Council approved minimum wage Ordinance and maintains appropriate differentials between the job categories.
Respectfully submitted,
Nancy Bronstein, Human Resources Director
By,
Steve Woo, Human Resources Analyst
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibit:
1. Part-Time Salary Schedule