Title
Adoption of Resolution Amending the Salary Schedule for Part-Time Classifications Effective December 24, 2017, to Reflect Changes to the California State Minimum Wage and to Maintain Adequate Differentials Between Part-Time Job Categories. (Human Resources 2510)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Adoption of Resolution Amending the Salary Schedule for Part-Time Classifications Effective December 24, 2017, to Reflect Changes to the California State Minimum Wage and to Maintain Adequate Differentials Between Part-Time Job Categories
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-an-hour minimum wage increased to $10.50 in January 2017 and will continue increasing to $11 on January 1, 2018. The minimum wage will then go up by a dollar in each of the following years until it reaches $15 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.
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 and ensure that all part-time classifications with the exception of the classification of Recreation Learner are paid an hourly rate of at least $11.00 per hour.
The only part-time classification that would be an exception and not have an hourly wage of at least $11.00, 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 nine part-time classifications, to a level consistent with the State minimum wage. The affected classifications include: Recreation Learner, Recreation Leader I, Aquatics Lifeguard, Tiny Tot Aide, Scorekeeper, Library Aide, Senior Library Aide, Administrative Clerk, and Maintenance Assistant I. It is further recommended that the salary for the Aquatic Instructor classification also be adjusted in order to maintain adequate salary differential and avoid compaction between part-time job families.
The Part-Time Classifications Salary Schedule will be effective December 24, 2017, 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 related to the increase in minimum wage as well as those addressing compaction and merit increases have been incorporated in the existing departmental budgets. The estimated fiscal impact by department between Fiscal Year 2017-18 and Fiscal Year 2018-19 will be approximately: $4,700 for Recreation and Parks and $2,500 for Library for a total anticipated net increase of $7,200. This amount represents increase associated with an actual wage increase due to minimum wage adjustment.
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 Salary Schedule for Part-Time Classifications effective December 24, 2017, to reflect changes to the California State Minimum Wage and to maintain adequate differentials between part-time job families.
Respectfully submitted,
Nancy Bronstein, Human Resources Director
By,
Steve Woo, Human Resources Analyst
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibit:
1. Revised Part-Time Classifications Salary Schedule