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01-15-2019 - AGENDA ITEM 08 STATE MINIMUM WAGE SALARY ADJUSTMENTSAGENDA ITEM NO. 8 AGENDA STAFF REPORT City of West Covina I Office of the City Manager DATE: January 15, 2019 TO: Mayor and City Council FROM: Chris Freeland City Manager SUBJECT: STATE MINIMUM WAGE SALARY ADJUSTMENTS RECOMMENDATION: It is recommended that the City Council: 1. Approve wage adjustments to eight limited service positions to bring them into compliance with the State's minimum wage requirement as of January 1, 2019; 2. Approve a wage adjustment to the Lifeguard Instructor position to address adverse pay compaction created by the State's minimum wage increase as of January 1, 2019; 3. Approve the deletion of Reprographics Assistant from the Limited Services Pay Schedule due to the position being operationally obsolete; and 4. Adopt the following resolution: RESOLUTION NO. 2019-01- 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 AMENDING RESOLUTION NO.2018-10. DISCUSSION: 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, 2019.... $12.00 per hour • Effective January 1, 2020.... $13.00 per hour • Effective January 1, 2021.... $14.00 per hour • Effective January 1, 2022.... $15.00 per hour Effective January 1, 2019, the State minimum wage increased from $11.00 per hour to $12.00 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 $12.00 minimum wage requirement and must be adjusted accordingly. The mandated wage increase also results in compaction (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 fmds that it is administratively prudent to delete Reprographics Assistant from the Limited Services Pay Schedule at this time due to the position being operationally obsolete. Resolution No. 2019-01 (Attachment No. 1) addresses the impacts made by the State's minimum wage increase and amends the City's Limited Services Pay Schedule accordingly. Resolution 2019-01 amends the pay ranges of the nine limited service positions impacted by the State's minimum wage increase and deletes the Reprographics Assistant position from the pay schedule due to its operational obsolescence. Table 1 below shows the current pay range and the recommended adjusted pay range for the nine limited service positions impacted by the State's minimum wage increase. TABLE 1 POSITION TITLE 11 CURRENT RANGEI ADJUSTED RANGE Crossing Guard 11 $11.00 - $12.10 $12.00 - $13.20 Food Services Worker $11.00 - $12.10 $12.00 - $13.20 Intern $11.00 - $36.67 $12.00 - $40.00 Lifeguard $11.03 - $13.50 $12.00 - $14.64 Lifeguard Instructor $13.50 - $14.85 $14.64 - $16.10 Maintenance Assistant 11 $11.00 - $12.10 $12.00 - $13.20 Office Aide I 11 $11.00 - $12.10 $12.00 - $13.20 Police Cadet 11 $11.19 - $12.33 $12.00 - $13.20 Recreation Leader 11 $11.03 - $12.16 $12.00 - $13.20 OPTIONS: The following options are available to the Council: 1. Approve staffs recommendation; or 2. Provide alternative direction. Prepared by: Edward M. Macias, Human Resources Director Fiscal Impact FISCAL IMPACT: The Fiscal Year 2018-2019 budget took into consideration the mid -year minimum wage adjustment and is sufficiently funded to cover the additional limited services staffing costs that will be incurred due to the wage increase. 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. 2019-01 ATTACHMENT NO. 1 17�YIT11 ly�(�]�p`[IxiIIDaILI 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 AND AMENDING RESOLUTION NO.2018-10 WHEREAS, the State minimum wage has been increased to $12.00 per hour effective January 1, 2019; 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 Crossing Guard, Food Services Worker, Intern, Lifeguard, Lifeguard Instructor, Maintenance Assistant, Office Aide I, Police Cadet, and Recreation Leader. NOW, THEREFORE, the City Council of the City of West Covina does resolve as follows: SECTION 1. That Resolution Number 2018-10 is hereby amended by this Resolution. 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 limited service hourly rate adjustment is January 1, 2019. SECTION 4. The City Clerk shall certify to the adoption of this Resolution. APPROVED and ADOPTED on this 15' day of January 2019. Lloyd Johnson Mayor ATTEST: Nickolas S. Lewis City Clerk I, NICKOLAS S. LEWIS, 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 15' day of January 2019, by the following vote of the City Council: AYES: NOES: ABSENT: ABSTAIN: Nickolas S. Lewis City Clerk APPROVED AS TO FORM: Scott E. Porter City Attorney Appendix A CITY OF WEST COVINA LIMITED SERVICE COMPENSATION SCHEDULE Effective January 1, 2019 CLASSIFICATION PAY RANGE STEP 1 STEP 2 STEP 3 Assistant Cook PT 064 $15.94 $16.73 $17.57 Assistant Pool Manager PT 195 $12.16 $12.77 $13.41 Cable TV Production Assistant PT 166 $12.00 $12.28 $13.22 Crossing Guard PT 135 $12.00 N/A $13.20 Day Care Director PT 167 $15.68 $16.47 $17.29 Day Care Teacher PT 178 $12.16 $12.77 $13.41 Engineering Aide PT 122 $19.62 $20.60 $21.63 Engineering Trainee PT 100 $12.12 $12.73 $13.37 Fire Protection Engineering Intern PT 330 $15.77 $16.56 $17.39 Food Services Worker PT 185 $12.00 N/A $13.20 Information Systems Intern PT 117 $12.12 $12.73 $13.37 Intern PT 110 $12.00 N/A $40.00 Lifeguard PT 201 $12.00 N/A $14.64 Lifeguard Instructor PT 200 $14.64 N/A $16.10 Maintenance Assistant PT 130 $12.00 N/A $13.20 Office Aide I PT 155 $12.00 N/A $13.20 Office Aide 11 PT 140 $13.53 N/A $14.88 Office Aide III PT 165 $15.26 N/A $16.78 Police Cadet PT 022 $12.00 $12.60 $13.20 Pool Manager PT 190 $15.21 $15.97 $16.77 Recreation Leader PT 175 $12.00 $12.60 $13.20 Recreation Site Coordinator PT 170 $13.07 $13.72 $14.41 Recycling Specialist PT 124 $16.19 $17.00 $17.85 Social Services Specialist PT 101 $16.19 $17.00 $17.85 *Approved at the January 15, 2019 City Council Meeting via Resolution No.2019-01 (replacing 2018-10). Limited Service Salary Schedule Effective 01.01.19