Title
Adoption of a Resolution Amending the Part-Time Classifications Salary Schedule Effective December 25, 2016, to Reflect Changes to the California State Minimum Wage, to Maintain Adequate Differentials Between Part-Time Job Families, and to Eliminate the Classifications of Crossing Guard and Lead Crossing Guard. (Human Resources 2510)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Adoption of a Resolution Amending the Part-Time Classifications Salary Schedule Effective December 25, 2016, to Reflect Changes to the California State Minimum Wage, to Maintain Adequate Differentials Between Part-Time Job Families, and to Eliminate the Classifications of Crossing Guard and Lead Crossing Guard
BACKGROUND
On April 4, 2016, California State Senate Bill 3 was signed into law to incrementally increase the State minimum wage to $15.00 per hour over a gradual period of time. Under this legislation, California's $10.00-an-hour minimum wage will increase to $10.50 on January 1, 2017, then to $11.00 on January 1, 2018. The minimum wage will then go up by a dollar in each of the following years until it reaches $15.00 in 2022, after which it will continue to rise each year by up to 3.5 percent to account for inflation. This legislation also gives the governor the ability to temporarily halt the raises if there is a forecasted budget deficit of more than 1 percent of annual revenue, or due to poor economic conditions such as declines in jobs and retail sales.
While the City of Alameda as an employer is exempt from compliance with the State minimum wage because we are a Charter City, in order to remain competitive with neighboring municipalities and non-municipal employers, it is recommended that the City adopt a Resolution amending the Part-Time Classifications Salary Schedule to reflect the changes to the California State Minimum Wage as well as to maintain adequate differentials between part-time job families.
It is also recommended that the classifications of Crossing Guard (4061) and Lead Crossing Guard (4060) be eliminated from the Part-Time Classifications Salary Schedule in light of the City’s decision, in partnership with the Alameda Unified School District, to enter into an agreement to provide Crossing Guard Services by a third party.
The recommended action incorporates these changes into the City’s Part-Time Classifications Salary Schedule (Exhibit 1).
DISCUSSION
Under the City of Alameda 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)). This responsibility is unaffected by Senate Bill 3 since the City of Alameda’s Charter supersedes state law (Cal. Const. Art. XI, §5(a)). The City of Alameda as an employer is therefore exempt from compliance with the State minimum wage.
However, in order to remain competitive with neighboring municipalities and non-municipal employers and in line with the goal to assist with competitiveness of the City for attraction and retention of qualified staff, it is recommended that the City amend the Part-Time Classifications Salary Schedule to reflect the California State Minimum Wage. This will ensure that all part-time classifications, with the exception of the classification of Recreation Learner, are paid an hourly rate of at least $10.50 per hour.
The only part-time classification that would be an exception and not have an hourly wage of at least $10.50, is the Recreation Learner or Counselor-in-Training classification. This classification is exempt from the minimum wage requirements. Work in this classification provides an opportunity for individuals with limited or no experience to enter the City’s workforce as a trainee, in conformance with the State Learner and Federal Youth Opportunity programs. The employees hired at this level are in a training program for approximately four weeks and, contingent upon successfully completing all of the requirements, transition into a Recreation Leader I position.
In line with this recommendation, the Human Resources Department has revised the Part-Time Classifications Salary Schedule to raise the minimum wage of seven part-time classifications, to a level consistent with the State minimum wage. The affected classifications include: Recreation Leader I, Aquatics Lifeguard, Tiny Tot Aide, Scorekeeper, Library Aide, Administrative Clerk, and Maintenance Assistant I. It is further recommended that the salaries for the following two classifications also be adjusted to in order to maintain adequate salary differential and avoid compaction between part-time job families: Aquatic Instructor and Senior Library Aide.
In addition, on September 20, 2016, the City Council authorized the City Manager or her designee to enter into an agreement with the Alameda Unified School District and All City Management Services Incorporated to provide crossing guard services. As such, it is recommended that the classifications of Crossing Guard (4061) and Lead Crossing Guard (4060) be eliminated from the Part-Time Classifications Salary Schedule since they are no longer needed.
The Part-Time Classifications Salary Schedule will be effective December 25, 2016, and has been updated with input from Recreation and Parks, Library, Finance, Police, and the City Attorney’s Office, which are the primary departments employing part-time workers in the affected classifications.
FINANCIAL IMPACT
These salary changes are expected to be incorporated in the existing departmental budgets. The estimated fiscal impact by department between Fiscal Year 2015-2016 and Fiscal Year 2016-17 will be approximately: $4,600 for Recreation and Parks; $600 for Library; $50 for City Attorney’s Office; and $100 for Finance for a total anticipated net increase of $5,350.
Although the wage increases per legislation go into effect on January 1, 2017, the City will implement the increases effective December 25, 2016 to coincide with the beginning of the pay period. Staff does not anticipate that implementing the wage increases early will have a significant financial impact. In addition, the beginning of the pay period implementation will reduce the administrative burden on Human Resources and Finance Departments.
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 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).
RECOMMENDATION
Adopt a Resolution amending the Part-Time Classifications Salary Schedule effective December 25, 2016, to reflect changes to the California State Minimum Wage, to maintain adequate differentials between part-time job families, and to eliminate the classifications of Crossing Guard and Lead Crossing Guard.
Respectfully submitted,
Nancy Bronstein, Human Resources Director
By,
Robin Young, Senior Human Resources Analyst
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibit:
1. Revised Part-Time Classifications Salary Schedule