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01-19-2021 - AGENDA ITEM 22 CONSIDERATION OF INCREASE IN HOURLY RATE LIMITED SERVICES PAY SCHEDULE TO REFLECT RECENT INCREASE IN STATE HOURLY MINIMUM WAGE EFFECTIVE JANUARY 1, 20AGENDA ITEM NO.22 AGENDA STAFF REPORT City of West Covina I Office of the City Manager DATE: January 19, 2021 TO: Mayor and City Council FROM: David Carmany City Manager SUBJECT: CONSIDERATION OF INCREASE IN HOURLY RATE LIMITED SERVICES PAY SCHEDULE TO REFLECT RECENT INCREASE IN STATE HOURLY MINIMUM WAGE EFFECTIVE JANUARY 1, 2021 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, 2021; and 2. Adopt Resolution 2021-03: RESOLUTION NO.2021-03 - 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 AND REPEALING RESOLUTION NO.2020-11 BACKGROUND: On April 4, 2016, Governor Jerry Brown signed SB 3 (Leno, 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, 2021.... $14.00 per hour • Effective January 1, 2022.... $15.00 per hour DISCUSSION: Effective January 1, 2021, the State minimum wage increased from $13.00 per hour to $14.00 per hour. Due to this increase, eight (8) classifications within the City's Limited Services Pay Schedule (i.e., part-time position schedule) now fall below the State's $14.00 minimum wage requirement and must be adjusted accordingly. LEGAL REVIEW: The City Attorney's Office has reviewed the resolution and approved it as to form. 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 2020-2021 cost to cover the mid -year minimum wage adjustments is approximately $8,300. 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 No. 2021-03 Attachment No. 1 - Appendix A CITY COUNCIL GOALS & OBJECTIVES: Achieve Fiscal Sustainability and Financial Stability Respond to the Global COVID-19 Pandemic ATTACHMENT NO.1 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 AND REPEALING RESOLUTION NO. 2020-11 THE CITY COUNCIL OF THE CITY OF WEST COVINA HEREBY FINDS, DETERMINES, AND DECLARES AS FOLLOWS: WHEREAS, the State minimum wage has been increased to $14.00 per hour effective January 1, 2021; 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 Cable TV Production Assistant, Crossing Guard, Food Services Worker, Intern, Lifeguard, Office Aide I, Police Cadet and Recreation Leader; and WHEREAS, the City Council desires to amend the Limited Services Compensation Schedule to comply with State law. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA HEREBY RESOLVES AS FOLLOWS: SECTION 1. Resolution No. 2020-11 is hereby repealed. SECTION 2. The hourly pay range for the Linked Service Compensation Schedule is hereby amended as listed in Appendix A. SECTION 3. The effective date of this limited service hourly rate adjustment to $14.00 per hour for the Cable TV Production Assistant, Crossing Guard, Food Services Worker, Intern, Lifeguard, Office Aide I, Police Cadet and Recreation Leader classifications is January 1, 2021. Any increases to hourly rates above the minimum wage rate of $14.00 will 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 and shag enter the same in the book of original resolutions and it shall become effective imardiately. APPROVED AND ADOPTED this 19th day of January, 2021. Letty Lopez-Viado Mayor APPROVED AS TO FORM ATTEST Thomas P. Duarte Lisa Sherrick City Attorney Assistant City Clerk I, USA 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 19th day of January, 2021, by the following vote of the City Council: AYES: NOES: ABSENT: ABSTAIN: Lisa Sherrick Assistant City Clerk CITY OF WEST COVINA Appendix A LIMITED SERVICE COMPENSATION SCHEDULE Effective January 1. 2021 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 $14.00 $13.65 $14.50 $14.30 $15.00 Crossing Guard PT 135 $13.00 $14.00 N/A $44.20 $15.00 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 $14.00 N/A $14.200 $15.00 Intern PT 110 $13.00 $14.00 N/A $41.00 $20.00 Lifeguard PT 201 $13.50 $14.00 N/A $14.85 $15.00 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 $43.00 $14.00 N/A $1430 $15.00 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 $14.00 $13.65 $14.50 $44.30 $15.00 Pool Manager PT 190 $17.50 $18.40 $19.29 Recreation Leader PT 175 $13.50 $14.00 $14.18 1 $14.50 $14.85 1 $15.00 Recreation Site Coordinator PT 170 $16.50 1 $17.33 1 $18.15 - Hourly Base Rate change is due to the minimum wage increase effective January 1, 2021. - Approved at the January 19, 2021 City Council meeting per Resolution No. 2021-3 (replacing 2020-11). Limited Service Salary Schedule Effective 01.01.21 CITY OF WEST COVINA Appendix A LIMITED SERVICE COMPENSATION SCHEDULE Effective January 1, 2021 CLASSIFICATION PAY RANGE I HOURLY BASE RATE F 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 $14.00 $14.50 $15.00 Crossing Guard PT 135 $14.00 N/A $15.00 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 $14.00 N/A $14.70 Intern PT 110 $14.00 N/A $20.00 Lifeguard PT 201 $14.00 N/A $15.00 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 $14.00 N/A $14.80 Office Aide 11 PT 140 $14.66 N/A $16.12 Office Aide III PT 165 $16.53 N/A $18.18 Police Cadet PT 022 $14.00 $14.50 $15.00 Pool Manager PT 190 $17.50 $18.40 $19.29 Recreation Leader PT 175 $14.00 $14.50 $15.00 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, 2021. - Approved at the January 19, 2021 City Council meeting per Resolution No. 2021-3 (replacing 2020-11). Limited Service Salary Schedule Effective 01.01.21