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02-18-2020 - AGENDA ITEM 09 CONSIDERATION OF INCREASE IN HOURLY RATE SALARY SCHEDULE TO REELECT RECENT INCREASE IN STATE HOURLY MINIMUM WAGE11/16/2020 Print Staff Report AGENDA ITEM NO. 9 DATE: February 18, 2020 TO: Mayor and City Council FROM: David Carmany City Manager AGENDA STAFF REPORT City of West Covina I Office of the City Manager SUBJECT: CONSIDERATION OF INCREASE IN HOURLY RATE SALARY SCHEDULE TO REELECT RECENT INCREASE IN STATE HOURLY MINIMUM WAGE RECOMMENDATION: It is recommended that the City Council: 1. Approve wage adjustments to limited service positions to bring them into compliance with the State's minimum wage requirement as of January 1, 2020; 2. Approve wage adjustments to limited service positions to address adverse pay compaction created by the State's minimum wage increase as of January 1, 2020; 3. Approve deletion of Engineering Aide, Engineering Trainee, Fire Protection Engineering Intern, Information Systems Intern, Recycling Specialist and Social Services Specialist from the Limited Services Pay Schedule due to the position being operationally obsolete or redundant to other similar existing positions; and 4. Adopt Resolution 2020-11: RESOLUTION NO.2020-11 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADJUSTING THE HOURLY PAY RATES OF CLASSIFICATIONS WITHIN THE LIMITED SERVICES PAY SCHEDULE BACKGROUND: On April 4, 2016, Governor Jerry Brown signed SB 3 (Zeno, Chapter 4) which gradually raises the State minimum wage to $15.00 per hour by January 1, 2022. Starting in 2023, the state minimum wage will be increased annually for inflation based on the national consumer price index (CPI). The annual inflationary increases scheduled to start in 2023 will be capped at 3.5% regardless of the CPI in any given year. The schedule for minimum wage increases is as follows: • Effective January 1, 2020.... $13.00 per hour https:/Idestinyhosted.com/print_ag_memo.cfm?seq=676&rev_num=0&mode=Extemal&reloaded=true&id=93762 1/2 11/16/2020 Print Staff Report • Effective January 1, 2021.... $14.00 per hour • Effective January 1, 2022.... $15.00 per hour DISCUSSION: Effective January 1, 2020, the State minimum wage increased from $12.00 per hour to $13.00 per hour. Due to this increase, the first pay step for eight positions within the City's Limited Services Pay Schedule (i.e., part- time position schedule) now fall below the State's $13.00 minimum wage requirement and must be adjusted accordingly. The mandated wage increase also causes a compaction issue (i.e. inadequate pay separation) with two closely related part-time positions (Lifeguard and Lifeguard Instructor), necessitating one additional pay adjustment within the schedule. Although the City does not currently provide lifeguard services, staff finds it prudent to retain the Lifeguard and Lifeguard Instructor positions contingent upon the need to provide these services in the future. Staff further finds that it is administratively prudent to delete several positions from the Limited Services Pay Schedule as follows: Engineering Aide, Engineering Trainee, Fire Protection Engineering Intern, Information Systems Intern, Recycling Specialist and Social Services Specialist due to the positions either being operationally obsolete or redundant to other similar existing positions. OPTIONS: The following options are available to the Council: 1. Approve staffs recommendation; or 2. Provide alternative direction. Prepared by: Helen Tran, Human Resources/Risk Management Director Fiscal Impact FISCAL IMPACT: The Fiscal Year 2019-2020 cost to cover the mid -year minimum wage adjustments is approximately $63,000. This addresses the impacts made by the State's minimum wage increase and wage compaction. It is important to also note that the State minimum wage is scheduled to gradually increase to $15.00 per hour by January 1, 2022. These annual increases will impact the City's limited services staffing costs in future budgets. Attachments Attachment No. 1 - Resolution 2020-11 ATTACHMENT NO. 1 - APPENDIX A.LIMITED SERVICES SALARY SCHEDULE CITY Achieve Fiscal Sustainability and Financial Stability COUNCIL Respond to the Global COVID-19 Pandemic GOALS & OBJECTIVES: https://destinyhosted.com/print_ag_memo.cfm?seq=676&rev_num=0&mode=Extemal&reloaded=true&id=93762 2/2 ATTACHMENT NO.1 I .ixY1T 1LIy 11 000rL[M0PTl3F1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADJUSTING THE HOURLY PAY RATES OF CLASSIFICATONS WITHIN THE LIMITED SERVICES PAY SCHEDULE WHEREAS, the State minimum wage has been increased to $13.00 per how effective January 1, 2020; and WHEREAS, the City of West Covina is required to comply with such law by ensuring City employees are paid at the level established; and WHEREAS, the State minimum wage impacts the current starting hourly wage for the classifications of Assistant Cook, Assistant Pool Manager, Cable TV Production Assistant, Crossing Guard, Day Care Director, Day Care Teacher, Food Services Worker, Intern, Lifeguard, Lifeguard Instructor, Maintenance Assistant, Office Aide I, Office Aide II, Office Aide III, Police Cadet, Pool Manager, Recreation Leader and Recreation Site Coordinator; and WHEREAS, staff finds that it is administratively prudent to delete Engineering Aide, Engineering Trainee, Fire Protection Engineering Intern, Information Systems Intern, Recycling Specialist and Social Services Specialist as the positions or either operationally obsolete or redundant to other similar existing positions. NOW, THEREFORE, the City Council of the City of West Covina does resolve as follows: SECTION 1. Resolution Number 2019-01 is hereby repealed. SECTION 2. That the hourly pay range for the Limited Services Position Classifications is hereby established as listed on Appendix A. SECTION 3. The effective date of this lunited service hourly rate adjustment is January 1, 2020. However, any hourly rates above the minimum wage rate of $13.00 win be effective the first available payroll period following approval of this resolution. SECTION 4. The City Clerk shall certify to the adoption of this Resolution. APPROVED and ADOPTED on this 18`' day of February 2020. Tony Wu Mayor ATTEST: Lisa Sherrick Assistant City Clerk I, LISA SHERRICK, ASSISTANT CITY CLERK of the City of West Covina, California, do hereby certify that the foregoing resolution was duly adopted by the City Council of the City of West Covina, California, at a regular meeting thereof held on the 18th day of February 2020, by the following vote of the City Council: YES: NOES: ABSENT: ABSTAIN: Lisa Sherrick Assistant City Clerk APPROVED AS TO FORM: Thomas P. Duarte City Attorney Appendix A CITY OF WEST COVINA LIMITED SERVICE COMPENSATION SCHEDULE Ettective January 1, 2020 HOURLY BASE RATE CLASSIFICATION PAY RANGE STEP 1 STEP 2 STEP 3 Assistant Cook PT 064 �iS.94 $16.44 $16.43 $17.28 $18.12 Assistant Pool Manager PT 195 $i246 $14.16 $i2.77 $14.87 $iBAi $15.58 Cable TV Production Assistant PT 166 $i2.00 $13.00 $i2.28 $13.65 $iB.22 $14.30 Crossing Guard PT 135 $i2.00 $13.00 N/A $i3.20 $14.20 Day Care Director PT 167 $i5.68 $18.68 $36.47 $19.61 $i739 $20.55 Day Care Teacher EngineeFing."iade-* PT 178 PT122 PT 199 $i246 $15.16 $19.62 $i242 $i2.77 $15.94 $28:60 $i2.73 $iBA i $16.72 $21.63 $13.37 o __. o ._...__ e PFeteetien EngineeFiRg inteffi Food Services Worker PT339 PT 185 $iss..77 $i2.00 $i636 N/A $1739 $i3.20 PT 117 $13.00 $1242 $12.73 $14.20 $i337 Intern PT 110 $i2.00 $13.00 N/A $40-00 $41.00 Lifeguard PT 201 $i2.00 $13.50 N/A 33.29 $14.85 Lifeguard Instructor PT 200 14 N/A $17.10 r Maintenance Assistant PT 130 $i2.00 $14.00 N/A $iB.20 $15.40 Office Aide I PT 155 $i2.00 $13.00 N/A 5iB.20 $14.30 Office Aide 11 PT 140 $13.53 $14.66 N/A 5i4.88 $16.12 Office Aide I I I PT 165 $i5.26 $16.53 N/A $i&78 $18.18 Police Cadet PT 022 $i2.00 $13.00 $12.60 $13.65 $13.20 $14.30 Pool Manager PT 190 $is.M $17.50 $i5-97 $18.40 $i6.77 $19.29 Recreation Leader PT 175 $i2.00 $13.50 $12.60 $14.18 33.20 $14.85 Recreation Site Coordinator Reeyeling `.�_._r.'s PT 170 PT 124 P:Fi&1 $i3.07 $16.50 $3649 $1649 $i3.72 $17.33 $37.00 $i7.00 $i441 $18.15 $17.8S $17.85 - Hourly Base Rate change is due to the minimum wage increase effective January 1, 2020 and to address wage compaction. Any rates above the minimum wage rate of $13.00 will be effective the first available payroll period upon approval of the pay schedule. • Classifications deleted due to positions being obsolete or redundant to similar existing positions. - Approved at the February 18, 2020 City Council Meeting via Resolution N0.2020-11 (replacing 2019-01). Limited Service Salary Schedule Effective 01.01.20 Appendix A CITY OF WEST COVINA LIMITED SERVICE COMPENSATION SCHEDULE Effective January 1, 2020 CLASSIFICATION PAY RANGE HOURLY BASE RATE STEP 1 STEP 2 STEP 3 Assistant Cook* PT 064 $16.44 $17.28 $18.12 Assistant Pool Manager* PT 195 $14.16 $14.87 $15.58 Cable TV Production Assistant' PT 166 $13.00 $13.65 $14.30 Crossing Guard' PT 135 $13.00 N/A $14.20 Day Care Director* PT 167 $18.68 $19.61 $20.55 Day Care Teacher* PT 178 $15.16 $15.94 $16.75 Food Services Worker+ PT 185 $13.00 N/A $14.20 Intern+ PT 110 $13.00 N/A $41.00 Lifeguard* PT 201 $13.50 N/A $14.85 Lifeguard Instructor* PT 200 $15.64 N/A $17.10 Maintenance Assistant* PT 130 $14.00 N/A $15.40 Office Aide I+ PT 155 $13.00 N/A $14.30 Office Aide II* PT 140 $14.66 N/A $16.12 Office Aide III* PT 165 $16.53 N/A $18.18 Police Cadet' PT 022 $13.00 $13.65 $14.30 Pool Manager* PT 190 $17.50 $18.40 $19.29 Recreation Leader* PT 175 $13.50 $14.18 $14.85 Recreation Site Coordinator* PT 170 $16.50 $17.33 $18.15 +Hourly Base Rate change is due to the minimum wage increase effective January 1, 2020. * Hourly Base Rate change is above the minimum wage rate of $13.00 and will be effective the first available payroll period upon approval of the pay schedule. - Approved at the February 18, 2020 City Council Meeting via Resolution No.2020-11 (replacing 2019-01). Limited Service Salary Schedule Effective 01.01.20