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HomeMy WebLinkAboutItem IJ,d. SFA( AGENDA STAFF REPORT i �+^-atrcom�`a DATE: January 22, 2018 TO: Honorable Mayor and City Council THRU: Jill R. Ingram, City Manager FROM: Patrick Gallegos, Assistant City Manager SUBJECT: HOURLY WAGES FOR PART-TIME, SEASONAL, AND TEMPORARY EMPLOYEES SUMMARY OF REQUEST: That the City Council adopt Resolution No. 6784 establishing hourly wages for part-time, seasonal, and temporary employees, and repealing on the effective date specified, all resolutions in conflict therewith. BACKGROUND AND ANALYSIS: On June 27, 2016, the City Council adopted Resolution No. 6655 establishing hourly wages for part-time, seasonal, and temporary employees. This Resolution was adopted in order to remain in compliance with the State of Califomia's Minimum Wage Order. On January 1, 2016, California's minimum wage rose to $10.00 per hour and again rose to $10.50 per hour on January 1, 2017. The last revision to this salary schedule was effective on July 1, 2016. (Attachment "A") On January 1, 2018, California's minimum wage rose to $11.00 per hour and is mandated by State law to continue to increase over the next several years for employers with (26) employees or more, as follows: January 1, 2018 $11.00 per hour January 1, 2019 $12.00 per hour January 1, 2020 $13.00 per hour January 1, 2021 $14.00 per hour January 1, 2022 $15.00 per hour Schedule for CA Minimum Wage 2017-2023 (Attachment "B") In order to remain in compliance with the State of California's Minimum Wage Order, through Resolution No. 6784, the City is requesting adoption of a revised salary schedule for part-time, seasonal, and temporary employees. (Attachment "C'). Agenda Item I The only changes to the salary schedule for part-time, seasonal, and temporary employees will be to adjust Grade 1 to reflect the new California minimum wage of $11.00 per hour and to increase Grade 2, which is (5%) above Grade 1 as part of the current salary schedule which establishes (5%) intervals between grades. For Grade 3, it is recommended that it become obsolete for now, as there are no employees within that grade. For Grades 4-23, it is recommended they remain unchanged. In subsequent years, as the California minimum wage increases, the City's salary schedule for part-time, seasonal, and temporary employees will need to be adjusted accordingly, effective each January 1't through the year 2022. The minimum wage increases will be exclusive of any potential cost -of -living adjustments that the City Council may wish to consider for part-time, seasonal, and temporary employees in future years. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: The City Attorney has reviewed this staff report and approved it as to form. FINANCIAL IMPACT: There are adequate funds in the approved budget to absorb the payroll increases as a result of the minimum wage increase. That the City Council adopt Resolution No. 6764 establishing hourly wages for part-time, seasonal, and temporary employees, and repealing on the effective date specified, all resolutions in conflict therewith. SUBMITTED BY: NOTED AND APPROVED: Patrick Gallegos ill . Ingram, City M n Iger Assistant City Manager Prepared by: Bob Franco, Management Analyst Attachments(s): A. Current Pay Structure B. Schedule for CA Minimum Wage 2017-2023 C. Proposed Pay Structure D. Resolution 6784 Page 2 Attachment "A" Attachment A City of Seal Beach Part -Time Employees Pay Structure July 1, 2016 Resolution No. 6655 Grade Job Classifications Step 1 Stop 2 Stop 3 Stop 4 Stop 5 1 Office Aide $10.12 $10.63 $11.16 $11.72 $12.30 2 Crossing Guard $10.63 $11.16 $11.72 $12.30 $12.92 Maintenance Aide Pool Lifeguard Recreation Facility Leader Beach Lifeguard Trainee 3 $11.16 $11.72 $12.30 $12.92 $13.56 4 L Police Aide $11.72 $12.30 $12.92 $13.56 $14.24 Swim Instructor 5 $12.30 $12.92 $13.56 $14.24 $14.95 6 Assistant Pool Manager $12.92 $13.56 $14.24 $14.95 $15.70 Senior Recreation Facility Leader 7 Intern $13.56 $14.24 $14.95 $15.70 $16.48 8 $14.24 $14.95 $15.70 $16.48 $17.31 9 Recreation Specialist $14.95 $15.70 $16.48 $17.31 $18.17 Pool Manager 10 Recreation Coordinator $15.70 $16.48 $17.31 $18.17 $19.08 11 $16.48 $17.31 $18.17 $19.08 $20.04 12 Account Clerk/Water Meter Reader $17.31 $18.17 $19.08 $20.04 $21.04 Aquatics Coordinator 13 Beach Lifeguard $18.17 $19.08 $20.04 $21.04 $22.09 14 19.08 $20.04 $21.04 $22.09 $23.20 15 Junior Lifeguard Coordinator $20.04 $21.04 22.09 23.20 $24.35 16 Equipment Operator $21.04 $22.09 $23.20 $24.35 $25.57 17 Beach Operations Supervisor $22.09 $23.20 $24.35 $25.57 $26.85 Rescue Boat Operator Mechanic 17A Maintenance Worker PT $22.78 $23.92 $25.11 $26.37 $27.68 18 $23.20 $24.35 $25.57 $26.85 $28.19 19 1 $24.351 $25.571 $26.851 $28.191 $29.60 20 Executive Assistant PT $25.57 $26.85 $28.19 $29.60 $31.08 21 $26.85 $28.19 $29.60 $31.08 $32.64 22 1 $28.191 $29.601 $31.081 $32.641 $34.27 23 1 $29.601 $31.081 $32.641 $34.271 $35.98 Attachment "B" Attachment B State of California Department of Industrial Relations Minimum Wage Although there are some exceptions, almost all employees in California must be paid the minimum wage as required by state law. Effective January 1, 2017, the minimum wage for all industries will be increased yearly. From January 1, 2017, to January 1, 2022, the minimum wage will increase for employers employing 26 or more employees. This increase will be delayed one year for employers employing 25 or fewer employees, from January 1, 2018, to January 1, 2023. The scheduled increases may be temporarily suspended by the Governor, based on certain determinations. (Please see the chart below for the complete schedule of rate increases). For more information and guidance on how to count employees for the purpose of determining whether an employer qualifies as an employer with 25 employees or less please see New Minimum Wage Phase- in Requirements 2017-2023, SB 3 Frequently Asked Questions page. There are some employees who are exempt from the minimum wage law, such as outside salespersons, individuals who are the parent, spouse, or child of the employer, and apprentices regularly indentured under the State Division of Apprenticeship Standards. Minimum Wage Order (MW -2017) There is an exception for learners, regardless of age, who may be paid not less than 85 percent of the minimum wage rounded to the nearest nickel during their first 160 hours of employment in occupations in which they have no previous similar or related experience. There are also exceptions for employees who are mentally or physically disabled, or both, and for nonprofit organizations such as sheltered workshops or rehabilitation facilities that employ disabled workers. Such individuals and organizations may be issued a special license by the Division of Labor Standards Enforcement authorizing employment at a wage less than the legal minimum wage. Labor Code Sections 1191 and 1191.5 Schedule for California Minimum Wage rate 2017-2023. Date Minimum Wage for Employers with 25 Employees or Less Minimum Wage for Employers with 26 Employees or More January 1, 2017 $10.00/hour $10.50/hour January 1, 2018 $10.50/hour $11.00/hour January 1, 2019 $11.00/hour $12.001hour January 1, 2020 $12.00/hour $13.00/hour January 1, 2021 $13.00/hour $14.001hour January 1, 2022 $14.00/hour $15.00/hour January 1, 2023 $15.00/hour Attachment "C" Attachment C City of Seal Beach Part -Time Employees Pay Structure January 1, 2018 Resolution No. XXXX Grade Job Classifications Step 1 Step 2 Stop 3 Step 4 Step 5 1 Office Aide $11.00 $11.55 $12.13 $12.73 $13.37 2 Crossing Guard $11.55 $12.13 $12.73 $13.37 $14.04 Maintenance Aide Pool Lifeguard Recreation Facility Leader Beach Lifeguard Trainee 3 4 Police Aide $11.72 $12.30 $12.92 $13.56 $14.24 Swim Instructor 5 $12.30 $12.92 $13.56 $14.24 $14.95 6 Assistant Pool Manager $12.92 $13.56 $14.24 $14.95 $15.70 Senior Recreation Facility Leader 7 Intern $13.56 $14.24 $14.95 $15.70 $16.48 8 $14.24 $14.95 $15.70 $16.48 $17.31 9 Recreation Specialist $14.95 $15.70 $16.48 $17.31 $18.17 Pool Manager 10 Recreation Coordinator $15.70 $16.48 $17.31 $18.17 $19.08 11 $16.48 $17.31 $18.17 $19.08 $20.04 12 Account Clerk/Water Meter Reader $17.31 $18.17 $19.08 $20.04 $21.04 A uatics Coordinator 13 Beach Lifeguard $18.17 $19.08 $20.04 $21.04 $22.09 14 $19.08 $20.04 $21.04 $22.09 $23.20 15 Junior Lifeguard Coordinator $20.04 $21.04 $22.09 $23.20 $24.36 16 Equipment Operator $21.04 $22.09 $23.20 $24.36 $25.57 17 Beach Operations Supervisor $22.09 $23.20 $24.36 $25.57 $26.85 Rescue Boat Operator Mechanic 17A Maintenance Worker PT $22.78 $23.92 $25.11 $26.37 $27.68 18 $23.20 $24.36 $25.57 $26.85 $28.19 19 $24.36 $25.57 $26.85 $28.19 $29.60 20 Executive Assistant PT $25.57 $26.85 $28.19 $29.60 $31.08 21 $26.85 $28.19 $29.60 $31.08 $32.64 22 $28.19 $29.60 $31.08 $32.64 $34.27 23 $29.60 $31.08 $32.64 $34.27 $35.98 Attachment "D" Attachment D RESOLUTION NUMBER 6784 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL ESTABLISHING HOURLY WAGES FOR PART-TIME, SEASONAL, AND TEMPORARY EMPLOYEES, AND REPEALING ON THE EFFECTIVE DATE SPECIFIED, ALL RESOLUTIONS IN CONFLICT HEREWITH WHEREAS, the Government Code of the State of California prescribes a procedure for resolving matters regarding wages, hours and other terms and conditions of employment; and WHEREAS, part-time salary grades have been updated to provide multiple steps within a range and to provide for a five percent increase in between each step; and WHEREAS, grades for part-time positions have been updated to reflect duties, educational, specialized training, licenses and/or certification and skills needed; and WHEREAS, if an employee is hired on a part-time basis to an existing classification, that employee shall be paid at the hourly equivalent of the assigned step within the assigned grade for that job classification. NOW, THEREFORE, BE IT RESOLVED the Seal Beach City Council hereby: Section 1. Approves the 2018 City of Seal Beach Pay Structure for Part -Time Employees, effective January 1, 2018, attached hereto as Attachment "C and incorporated by this reference. Section 2. Repeals all resolutions regarding hourly wages for part-time, seasonal and temporary employees in conflict with this resolution and Attachment "C' attached hereto. Resolution Number 6784 PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 22nd day of January , 2018 by the following vote: AYES: Council Members: NOES: Council Members: ABSENT: Council Members: ABSTAIN: Council Members: Mike Varipapa, Mayor ATTEST: Robin L. Roberts, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Robin L. Roberts, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution Number 6784 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 22nd day of January , 2018. Robin L. Roberts, City Clerk