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01/18/2022 - AGENDA ITEM 8 - CONSIDERATION OF INCREASE IN HOURLY RATES FOR LIMITED SERVICES PAY SCHEDULE TO REFLECT RECENT INCREASE IN STATE HOURLY MINIMUM WAGE EFFECTIVE JANUARY 1, 2022AGENDA ITEM NO.8 AGENDA STAFF REPORT City of West Covina I Office of the City Manager DATE: January 18, 2022 TO: Mayor and City Council FROM: David Carmany City Manager SUBJECT: CONSIDERATION OF INCREASE IN HOURLY RATES FOR LIMITED SERVICES PAY SCHEDULE TO REFLECT RECENT INCREASE IN STATE HOURLY MINIMUM WAGE EFFECTIVE JANUARY 1, 2022 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, 2022; and 2. Adopt the following Resolution: RESOLUTION NO.2022-09 - 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. 2021-03 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, 2022.... $15.00 per hour *Effective January 1, 2023..... Based on the national consumer price index (CPI), capped at 3.5% regardless of the CPI in any given year. DISCUSSION: Effective January 1, 2022, the State minimum wage increased from $14.00 per hour to $15.00 per hour. Due to this increase, eleven (11) classifications within the City's Limited Services Pay Schedule (i.e., part-time position schedule) now fall below the State's $15.00 minimum wage requirement and must be adjusted accordingly. Additionally, two (2) classifications also need adjusting due to compaction issues. LEGAL REVIEW: The City Attorney's Office has reviewed the resolution and approved it as to form. Prepared by: Helen Tran, Human Resources/Risk Management Director Fiscal Impact FISCAL IMPACT: The Fiscal Year 2021-2022 cost to cover the mid -year minimum wage adjustments is approximately $36,000. This addresses the impacts made by the State's minimum wage increase and wage compaction. It is important to also note 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. These annual increases will impact the City's limited services staffing costs in future budgets. Attachments Attachment No. 1 - Resolution 2022-09 (Minimum Wage Increase) Attachment No. 2 - Appendix A (Limited Services Schedule) CITY COUNCIL GOALS & OBJECTIVES: Achieve Fiscal Sustainability and Financial Stability ATTACHMENT NO. 1 RESOLUTION NO. 2022-09 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. 2021-03 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 $15.00 per hour effective January 1, 2022; 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 hourly wage for the classifications of Assistant Pool Manager, Cable TV Production Assistant, Crossing Guard, Food Services Worker, Intern, Lifeguard, Lifeguard Instructor, Maintenance Assistant, Office Aide I, Office Aide II, Office Aide III, Police Cadet, and Recreation Leader; and WHEREAS, the City Council desires to amend the Limited Services Compensation Schedule for consistency with State law. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Resolution Number 2021-03 is hereby repealed. SECTION 2. The hourly pay range for the Limited Services Compensation Schedule is hereby amended as set forth in Appendix A. SECTION 3. The effective date of this limited service hourly rate adjustment for the Assistant Pool Manager, Cable TV Production Assistant, Crossing Guard, Food Services Worker, Intern, Lifeguard, Maintenance Assistant, Office Aide I, Office Aide II, Police Cadet, and Recreation Leader classifications is January 1, 2022. The effective date for the limited service hourly rate adjustment for the Lifeguard Instructor and Office Aide III classifications 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 shall enter the same in the book of original resolutions and it shall become effective immediately. APPROVED AND ADOPTED this 18th day of January, 2022. APPROVED AS TO FORM Thomas P. Duarte City Attorney Dario Castellanos 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 No. 2022-09 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 January, 2022, by the following vote of the City Council: AYES: NOES: ABSENT: ABSTAIN: Lisa Sherrick Assistant City Clerk APPENDIX A Appendix A CITY OF WEST COVINA III !tlN9411&1:1 A[y4K91Jd»0&f-"%lip 1&Yd:1411914:4 Effective January 1, 2022* PAY HOURLY BASE RATE CLASSIFICATION STEP 1 STEP 2 STEP 3 RANGE Assistant Cook PT 064 $16.44 $17.28 $18.12 Assistant Pool Manager PT 195 $14 1-6 $14-.87 $is.68 $15.16 $15.54 $15.93 Cable TV Production Assistant PT 166 $14.00 $14.50 $116.00 $15.00 $15.38 $15.75 $14.00 WA $15.00 Crossing Guard PT 135 $15.00 $15.75 Day Care Director PT 167 $18.68 $19.61 $20.55 Day Care Teacher PT 178 $15.16 $15.94 $16.75 $14.00 N/A $14.70 Food Services Worker PT 185 $15.00 $15.75 14 S... 0 N/A $20.00 Intern PT 110 $15.00 $20.00 $14`00 N/A $16.00 Lifeguard PT 201 $15.00 $15.75 $15.64 N/A $17.10 Lifeguard Instructor PT 200 $16.80 $18.48 $14.00 N/A $16.40 Maintenance Assistant PT 130 $15.00 $15.75 $14`00 N/A V 4.80 Office Aide I PT 155 $15.00 $15.75 $14.66 N/A $16.12 Office Aide II PT 140 $16.14 $16.95 $16 53 N/A 8 Office Aide III PT 165 $17.37 $18.24 Police Cadet PT 022 $14.00 $14-50 $1-5:00 $15.00 $15.38 $15.75 Pool Manager PT 190 $17.50 $18.40 $19.29 PT 175 $1-4-.00 $14.50 $1-5.00 Recreation Leader $15.00 $15.38 $15.75 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, 2022. - Approved at the January 18, 2022 City Council meeting per Resolution No. 2022-09 (replacing 2021-03). Any hourly rates above the minimum wage rate of $15.00 will be effective the first available payroll period upon approval by the City Council. Limited Service Salary Schedule Effective 01.01.21 Appendix A CITY OF WEST COVINA 41 �AIN9411F9:1:IV/[y4K9]Jd»0&f-"%1[*] 01&Yd:14Bill o:4 Effective January 1, 2022* 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 $15.16 $15.54 $15.93 Cable TV Production Assistant PT 166 $15.00 $15.38 $15.75 Crossing Guard PT 135 $15.00 $15.75 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 $15.00 $15.75 Intern PT 110 $15.00 $20.00 Lifeguard PT 201 $15.00 $15.75 Lifeguard Instructor PT 200 $16.80 $18.48 Maintenance Assistant PT 130 $15.00 $15.75 Office Aide I PT 155 $15.00 $15.75 Office Aide II PT 140 $16.14 $16.95 Office Aide III PT 165 $17.37 $18.24 Police Cadet PT 022 $15.00 $15.38 $15.75 Pool Manager PT 190 $17.50 $18.40 $19.29 Recreation Leader PT 175 $15.00 $15.38 $15.75 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, 2022. - Approved at the January 18, 2022 City Council meeting per Resolution No. 2022-09 (replacing 2021-03). ' Any hourly rates above the minimum wage rate of $15.00 will be effective the first available payroll period upon approval by the City Council. Limited Service Salary Schedule Effective 01.01.22