Title
Adoption of a Resolution Amending the Part-Time Classifications Salary Schedule Effective December 23, 2018, 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: David L. Rudat, Interim City Manager
EXECUTIVE SUMMARY
Staff is recommending that the City Council approve a resolution amending the Salary Schedule for part-time employees to reflect an increase to the California Minimum Wage. The minimum wage is set to increase on January 1, 2019, from $11.00 to $12.00 per hour. This resolution would adopt revisions to the City’s Part-Time Classifications Salary Schedule such that all classifications currently below $12.00 per hour are increased. The estimated fiscal impact to the city is $25,000 in salary costs, primarily in the Recreation and Parks and Library Departments. The City Council has also approved an accelerated minimum wage increase citywide beginning July 1, 2019, which will increase Alameda’s minimum wage to $13.50 per hour.
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, $11 in January 2018, and will increase to $12 per hour on January 1, 2019. The California minimum wage will continue to rise by a dollar in each of the following years until it reaches $15 in 2022, after which it will increase 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 categories.
Additionally, on October 2, 2018, the Alameda City Council approved an accelerated minimum wage increase that will eventually surpass the State of California. This change will bring Alameda’s minimum wage to $13.50 per hour effective July 1, 2019, $15.00 per hour effective July 1, 2020, and then subsequently increase by up to 5 percent based on the Consumer Price Index (CPI) each year thereafter. The Part-Time Classifications Salary Schedule will need to be amended and approved by the City Council again prior to each minimum wage increase implementation.
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 $12.00 per hour.
The only part-time classification that would be an exception and not have an hourly wage of at least $12.00 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 position. During the training program the Recreation Learner position is compensated at 85% of the required minimum wage.
In line with this recommendation, the Human Resources Department has revised the Part-Time Classifications Salary Schedule to consolidate the Recreation Leader I and II classifications into a single Recreation Leader classification with a starting salary of $12.00 per hour and to also raise the minimum wage of nine other part-time classifications to a level consistent with the State minimum wage. The affected classifications include: Recreation Leader, Aquatics Lifeguard, Aquatic Instructor, Tiny Tot Aide, Scorekeeper, Library Aide, Senior Library Aide, Administrative Clerk, and Maintenance Assistant I.
The Part-Time Classifications Salary Schedule will be effective December 23, 2018, and has been updated with input from Recreation and Parks and Library Departments, 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 2018-19 and Fiscal Year 2019-20 will be approximately $19,000 for Recreation and Parks and $6,000 for Library, for a total anticipated net increase of $25,000. This amount represents the increased cost associated with an actual wage increase due to the minimum wage adjustment, including increased City PARS and Medicare contributions. Impact from changes due to salary compaction is not calculated into the estimated increase.
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 23, 2018, to reflect changes to the California State Minimum Wage and to maintain adequate differentials between part-time 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. Revised Part-Time Classifications Salary Schedule