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CC SR 20211207 M - 2022 Minimum Wage CITY COUNCIL MEETING DATE: 12/07/2021 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consideration and possible action to approve compensation changes for part-time employees as a result of the state’s minimum wage increase. RECOMMENDED COUNCIL ACTION: (1) Adopt Resolution No. 2021-__, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, STATE OF CALIFORNIA, AMENDING, RESTATING, AND SUPERSEDING RESOLUTION NO. 2021-26 THAT SETS THE SALARY AND HOURLY COMPENSATION SCHEDULE FOR ALL CITY EMPLOYEES TO REFLECT NEW SALARY RANGES FOR PART-TIME EMPLOYEES BASED ON A MINIMUM WAGE INCREASE EFFECTIVE JANUARY 1, 2022. FISCAL IMPACT: Increasing the minimum wage for part-time employees will result in an estimated $9,500 fiscal impact that was included in the FY 2021-22 budget. Amount Budgeted: $1,169,600 Additional Appropriation: N/A Account Number(s): Various part-time accounts ORIGINATED BY: Denise Gonzalez, Human Resources Analyst REVIEWED BY: Julie DeZiel, Human Resources Manager Karina Bañales, Deputy City Manager APPROVED BY: Ara Mihranian, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Draft Resolution No. 2021- ___, Salary and Hourly Compensation Schedule for City Employees (page A-1) B. Resolution No. 2021-26 (page B-1) BACKGROUND: On April 4, 2016, Governor Brown approved Senate Bill No. 3 (SB 3), raising the state’s minimum wage from $10 per hour to $15 per hour incrementally over six year s beginning January 1, 2017. Since 2017, the City has adjusted the minimum wage for certain positions in compliance with state law. 1 CITYOF RANCHO PALOS VERDES At the November 17, 2020 meeting, Staff advised the City Council that the minimum wage increase would eventually result in a compression and compliance issue with City policies as of January 1, 2022. Compression issues develop over time and occurs when there is little difference in pay between employees regardless of differences in their respective knowledge, skills, experience, or abilities. Additionally, compression becomes apparent when classifications begin to overlap in salary wages. As for City policy, the City’s Competitive Service Employee Personnel Rules provides policies and procedures that govern compensation, and inherently compression concerns. Specifically, Rule V of the Competitive Service Employee Personnel Rules states: “compensation shall be determined from a salary schedule of ranges established by Resolution of the City Council. Each range shall be approximately thirty percent (30%) from the bottom of the range to the top of the range.” As a result, Staff also advised the City Council that a salary survey (also known as a compensation study) would be warranted to identify any potential compression issues and to recommend any adjusted wages to ensure internal equity. It is important to note that the City is currently conducting a classification and compensation study that analyzes all job classifications, salaries, and the City's organizational structure. Thus, this staff report addresses the immediate concern of adjusting the minimum wage for certain part-time positions, and that the more comprehensive classification and compensation study currently underway will address, among other things, the compression and City policy concerns at a future meeting. DISCUSSION: On January 1, 2022, the state’s minimum wage will increase to $15 per hour. As a result of the minimum wage increase, the classifications of Administrative/Public Works/Cable Intern and Recreation Leader are identified as having pay steps that fall below the new minimum wage requirement, warranting an increase, as shown in Table 1 below. Table 1. 2021 Part-Time Hourly Rate Schedule Hourly Rates PART-TIME POSITIONS BOTTOM TO TOP Administrative/Public Works/Cable Intern 14.31 -- 32.79 Recreation Leader 14.31 -- 15.27 To address the minimum wage concern shown in the table above, Staff recommends increasing the bottom of the hourly rate range to $15 per hour for the following part-time positions: Table 2. 2022 Part-Time Hourly Rate Schedule Hourly Rates PART-TIME POSITIONS BOTTOM TO TOP Administrative/Public Works/Cable Intern 15.00 -- 32.79 Recreation Leader 15.00 -- 19.50 2 In the table above, staff adjusted the bottom step for both Classifications and increased the top step of the Recreation Leader classification according to Rule V. CONCLUSION: Staff seeks Council approval to increase the minimum wage for the Administrative/Public Works/Cable Intern and Recreation Leader classifications. ALTERNATIVES: In addition to the Staff recommendation, the following alternative actions are available for the City Council’s consideration: 1. Direct Staff to make specific compensation changes to part-time positions in compliance with the minimum wage state laws. 2. Take other action, as deemed appropriate. 3 RESOLUTION NO. 2021- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, STATE OF CALIFORNIA, AMENDING, RESTATING, AND SUPERSEDING RESOLUTION NO. 2021-26 THAT SETS THE SALARY AND HOURLY COMPENSATION SCHEDULE FOR ALL CITY EMPLOYEES TO REFLECT NEW SALARY RANGES FOR PART-TIME EMPLOYEES BASED ON A MINIMUM WAGE INCREASE EFFECTIVE JANUARY 1, 2022 WHEREAS, the City Council adopted Resolution 2021-26 on June 15, 2021, that set the Salary and Hourly Compensation Schedule for Competitive, Confidential, Management and Part-Time classifications; and WHEREAS, the City Council now desires to amend the City’s Salary Schedule to reflect the new salary ranges for part-time classifications based on a minimum wage increase effective January 1, 2022; and WHEREAS, Section 36506 of the California Government Code requires that the City Council fix compensation of all appointive officers and employees by resolution or ordinance; and, WHEREAS, Rule V of the Personnel Rules of the City provides that in order to amend the City’s Salary Schedule that changes must be made via Resolution; and, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: Section 1: The salary and hourly ranges for City job classifications as set forth in Exhibit “A” which are attached hereto and incorporated herein by this reference, are adopted and are effective as of January 1, 2022. Section 2: Resolution No. 2021-26 is hereby amended, restated, and superseded and replaced by this resolution to reflect new salary ranges for part-time classifications based on a state-mandates minimum wage increase effective January 1, 2022. Section 3: This resolution shall be effective on December 7, 2021. The City Clerk shall certify the adoption of this Resolution. A-1 PASSED, APPROVED and ADOPTED this 7th day of December 2021. _____________________________ Mayor Attest: ____________________________ City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss CITY OF RANCHO PALOS VERDES ) I, Teresa Takaoka, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2021-__ was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on December 7, 2021. __________________________ City Clerk A-2 Resolution No. 2021-__ Exhibit A Salary and Hourly Schedule for the Competitive, Confidential, Management and Part-time Positions (Effective January 1, 2022) COMPETITIVE POSITIONS BOTTOM TO TOP BOTTOM TO TOP Account Clerk 52,968 --68,769 4,414 --5,731 25.47 --33.06 Accountant 77,457 --100,601 6,455 --8,383 37.24 --48.37 Accounting Manager 100,494 --130,518 8,375 --10,877 48.31 --62.75 Accounting Technician 59,955 --77,890 4,996 --6,491 28.82 --37.45 Administrative Analyst I 68,549 --89,021 5,712 --7,418 32.96 --42.80 Administrative Analyst II 68,552 --102,983 5,713 --8,582 32.96 --49.51 Administrative Analyst II (Records Management)68,552 --102,983 5,713 --8,582 32.96 --49.51 Administrative Staff Assistant 59,196 --76,869 4,933 --6,406 28.46 --36.96 Assistant Engineer 86,038 --111,733 7,170 --9,311 41.36 --53.72 Assistant Planner 72,123 --93,676 6,010 --7,806 34.67 --45.04 Associate Engineer 95,608 --124,148 7,967 --10,346 45.97 --59.69 Associate Planner 81,956 --106,445 6,830 --8,870 39.40 --51.18 Building Inspector I 69,555 --90,304 5,796 --7,525 33.44 --43.42 Building Inspector II 77,888 --101,157 6,491 --8,430 37.45 --48.63 Cable TV Station Manager 81,956 --106,445 6,830 --8,870 39.40 --51.18 Code Enforcement Officer 69,094 --89,733 5,758 --7,478 33.22 --43.14 Deputy City Clerk 69,928 --90,849 5,827 --7,571 33.62 --43.68 Engineering Technician 65,584 --85,171 5,465 --7,098 31.53 --40.95 Geographic Information Systems Coordinator 86,022 --111,738 7,169 --9,312 41.36 --53.72 Lead Worker 60,746 --78,901 5,062 --6,575 29.20 --37.93 Maintenance Superintendent 100,170 --130,092 8,348 --10,841 48.16 --62.54 Maintenance Supervisor 76,896 --97,428 6,408 --8,119 36.97 --46.84 Maintenance Worker I/II 52,791 --68,627 4,399 --5,719 25.38 --32.99 Open Space & Trails Manager 91,788 --119,216 7,649 --9,935 44.13 --57.32 Park Ranger 45,345 --58,898 3,779 --4,908 21.80 --28.32 Permit Clerk 51,963 --67,485 4,330 --5,624 24.98 --32.44 Permit Technician 59,306 --76,992 4,942 --6,416 28.51 --37.02 Planning Technician 61,729 --80,136 5,144 --6,678 29.68 --38.53 Principal Planner 102,812 --133,516 8,568 --11,126 49.43 --64.19 Project Manager 95,608 --124,148 7,967 --10,346 45.97 --59.69 Recreation Program Supervisor I 59,196 --76,869 4,933 --6,406 28.46 --36.96 Recreation Program Supervisor II 75,021 --97,428 6,252 --8,119 36.07 --46.84 Recreation Services Manager 87,902 --114,121 7,325 --9,510 42.26 --54.87 Senior Account Technician 67,151 --87,235 5,596 --7,270 32.28 --41.94 Senior Accountant 84,531 --110,667 7,044 --9,222 40.64 --53.21 Senior Administrative Analyst 88,805 --115,356 7,400 --9,613 42.69 --55.46 Senior Code Enforcement Officer 77,379 --100,494 6,448 --8,375 37.20 --48.31 Senior Engineer 107,080 --139,052 8,923 --11,588 51.48 --66.85 Senior Information Technician 91,851 --119,261 7,654 --9,938 44.16 --57.34 Senior Park Ranger 51,546 --66,944 4,296 --5,579 24.78 --32.18 Senior Planner 94,294 --122,470 7,858 --10,206 45.33 --58.88 Staff Assistant I 45,345 --58,909 3,779 --4,909 21.80 --28.32 Staff Assistant II 51,546 --66,944 4,296 --5,579 24.78 --32.18 Traffic Engineering Technician 65,584 --85,171 5,465 --7,098 31.53 --40.95 CONFIDENTIAL POSITIONS Accounting Supervisor 97,979 --127,271 8,165 --10,606 47.11 --61.19 Executive Assistant 69,851 --90,738 5,821 --7,562 33.58 --43.62 Human Resources Analyst 68,545 --102,987 5,712 --8,582 32.95 --49.51 MANAGEMENT POSITIONS Assistant to the City Manager 99,466 --129,163 8,289 --10,764 Building Official 99,142 --167,870 8,262 --13,989 City Clerk 99,142 --167,870 8,262 --13,989 City Manager *220,500 --220,500 18,375 --18,375 Deputy City Manager 120,620 --204,934 10,052 --17,078 Deputy Director of Community Development 105,888 --179,289 8,824 --14,941 Deputy Director of Finance 105,888 --179,289 8,824 --14,941 Deputy Director of Public Works 105,888 --179,289 8,824 --14,941 Deputy Director of Recreation & Parks 105,888 --179,289 8,824 --14,941 Director of Community Development 120,620 --204,934 10,052 --17,078 Director of Finance 120,620 --204,934 10,052 --17,078 Director of Parks & Recreation 120,620 --204,934 10,052 --17,078 Director of Public Works 120,620 --204,934 10,052 --17,078 Human Resources Manager 105,888 --179,289 8,824 --14,941 Information Technology Manager 99,142 --167,870 8,262 --13,989 Principal Civil Engineer 99,142 --167,870 8,262 --13,989 OFFICIAL For illustration purposes Annual Salary Monthly Salary Hourly Salary BOTTOM TO TOP Resolution No. 2021-__ Page 1 of 2A-3 Resolution No. 2021-__ Exhibit A Salary and Hourly Schedule for the Competitive, Confidential, Management and Part-time Positions (Effective January 1, 2022) PART-TIME POSITIONS Administrative/Public Works/Cable Intern 15.00 --32.79 Code Enforcement Officer 33.20 --44.19 Park Ranger 18.82 --24.40 Permit Clerk 23.87 --31.01 Recreation Leader 15.00 --19.50 Recreation Leader II 15.23 --18.73 Recreation Specialist 18.82 --24.45 Staff Assistant I 22.32 --29.00 Staff Assistant II 25.40 --32.98 Television Producer 18.14 --36.29 Television Producer (On-Camera)20.52 --41.66 Monthly AUTO ALLOWANCE Amount City Manager 700 Deputy City Manager 150 Director of Community Development 150 Director of Finance 150 Director of Public Works 150 Director of Recreation & Parks 150 * City Manager salary set by contract agreement adopted by the City Council. (contract amended January 19, 2021) OFFICIAL Hourly Rates BOTTOM TO TOP Resolution No. 2021-__ Page 2 of 2A-4 B-1 RESOLUTION NO. 2021-26 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, AMENDING, RESTATING, AND SUPERSEDING RESOLUTION NO. 2020-63 SETTING FORTH THE SALARY AND HOURLY COMPENSATION SCHEDULE FOR ALL EMPLOYEES IN CITY SERVICE WHEREAS, the City Council adopted Resolution 2020 -63 on November 17, 2020, that set the Salary and Hourly Compensation Schedule for Competitive, Confidential and Management classifications; and WHEREAS, the City Council now desires to amend the City's Salary Schedule to reflect new salary ranges for competitive, confidential and management, and part-time classifications based on a 2 .2% wage increase cost-of-living adjustment effective the first full pay period of FY 2021 -22; and WHEREAS, Section 36506 of the California Government Code requires that the City Council fix compensation of all appointive officers and employees by resolution or ordinance; and, WHEREAS, Rule V of the Personnel Rules of the City provides that in order to amend the City's Salary Schedule that changes must be made via Resolution; and, NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: Section 1: The salary and hourly ranges for City job classifications as set forth in Exhibit "A" which are attached hereto and incorporated herein by this reference, are adopted and are effective as of July 3, 2021 . Section 2: Resolution No. 2020-63 is hereby amended, restated, and superseded and replaced by this resolution. PASSED, APPROVED and ADOPTED this 15~¥-Gf. ATTEST: c1~~ STATE OF CALIFORNIA COUNTY OF LOS ANGELES CITY OF RANCHO PALOS VERDES ( ss I, TERESA TAKAOKA, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No . 2021-26 was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on June 15, 2021 . ~.Ma;zL 'tyClerk B-2 Resolution No. 2021-26 Exhibit A Salary and Hourly Schedule for the Competitive, Confidential, Management and Part-time Positions (Effective July 1, 2021) OFFICIAL For illustration purposes Annual Salary Monthly Salary Hourly Salary COMPETITIVE POSITIONS BOTTOM TO TOP BOTTOM TO TOP BOTTOM TO TOP Account Clerk 52,968 --68,769 4,414 --5,731 25.47 --33.06 Accountant 77,457 --100,601 6,455 --8,383 37.24 --48.37 Accounting Manager 100,494 --130,518 8,375 --10,877 48.31 --62.75 Accounting Technician 59,955 --77,890 4,996 --6,491 28.82 --37.45 Administrative Analyst I 68,549 --89,021 5,712 --7,418 32.96 --42.80 Administrative Analyst II 68,552 --102,983 5,713 --8,582 32.96 --49.51 Administrative Analyst II (Records Management) 68,552 --102,983 5,713 --8,582 32.96 --49.51 Administrative Staff Assistant 59,196 --76,869 4,933 --6,406 28.46 --36.96 Assistant Engineer 86,038 --111,733 7,170 --9,311 41.36 --53.72 Assistant Planner 72,123 --93,676 6,010 --7,806 34.67 --45.04 Associate Engineer 95,608 --124,148 7,967 --10,346 45.97 --59.69 Associate Planner 81,956 --106,445 6,830 --8,870 39.40 --51.18 Building Inspector I 69,555 --90,304 5,796 --7,525 33.44 --43.42 Building Inspector II 77,888 --101,157 6,491 --8,430 37.45 --48.63 Cable TV Station Manager 81,956 --106,445 6,830 --8,870 39.40 --51.18 Code Enforcement Officer 69,094 --89,733 5,758 --7,478 33.22 --43.14 Deputy City Clerk 69,928 --90,849 5,827 --7,571 33.62 --43.68 Engineering Technician 65,584 --85,171 5,465 --7,098 31.53 --40.95 Geographic Information Systems Coordinator 86,022 --111,738 7,169 --9,312 41.36 --53.72 Lead Worker 60,746 --78,901 5,062 --6,575 29.20 --37.93 Maintenance Superintendent 100,170 --130,092 8,348 --10,841 48.16 --62.54 Maintenance Supervisor 76,896 --97,428 6,408 --8,119 36.97 --46.84 Maintenance Worker 1/11 52,791 68,627 4,399 --5,719 25.38 --32.99 Open Space & Trails Manager 91,788 --119,216 7,649 --9,935 44.13 --57.32 Park Ranger 45,345 --58,898 3,779 --4,908 21.80 --28.32 Permit Clerk 51,963 --67,485 4,330 --5,624 24.98 --32.44 Permit Technician 59,306 --76,992 4,942 --6,416 28.51 --37.02 Planning Technician 61,729 --80,136 5,144 --6,678 29.68 --38.53 Principal Planner 102,812 --133,516 8,568 --11,126 49.43 --64.19 Project Manager 95,608 --124,148 7,967 --10,346 45.97 --59.69 Recreation Program Supervisor I 59,196 --76,869 4,933 --6,406 28.46 --36.96 Recreation Program Supervisor II 75,021 --97,428 6,252 --8,119 36.07 --46.84 Recreation Services Manager 87,902 --114,121 7,325 --9,510 42.26 --54.87 Senior Account Technician 67,151 --87,235 5,596 --7,270 32.28 --41.94 Senior Accountant 84,531 110,667 7,044 --9,222 40.64 --53.21 Senior Administrative Analyst 88,805 --115,356 7,400 --9,613 42.69 --55.46 Senior Code Enforcement Officer 77,379 --100,494 6,448 --8,375 37.20 --48.31 Senior Engineer 107,080 --139,052 8,923 --11,588 51.48 --66.85 Senior Information Technician 91,851 119,261 7,654 --9,938 44.16 --57.34 Senior Park Ranger 51,546 --66,944 4,296 --5,579 24.78 --32.18 Senior Planner 94,294 --122,470 7,858 --10,206 45.33 --58.88 Staff Assistant I 45,345 --58,909 3,779 --4,909 21.80 --28.32 Staff Assistant II 51,546 --66,944 4,296 --5,579 24.78 --32.18 Traffic Engineering Technician 65,584 --85,171 5,465 --7,098 31.53 --40.95 CONFIDENTIAL POSITIONS Accounting Supervisor 97,979 --127,271 8,165 --10,606 47.11 --61.19 Executive Assistant 69,851 --90,738 5,821 --7,562 33.58 --43.62 Human Resources Analyst 68,545 --102,987 5,712 --8,582 32.95 --49.51 MANAGEMENT POSITIONS Assistant to the City Manager 99,466 --129,163 8,289 --10,764 Building Official 99,142 --167,870 8,262 --13,989 City Clerk 99,142 --167,870 8,262 --13,989 City Manager * 214,620 --214,620 17,885 --17,885 Deputy City Manager 120,620 --204,934 10,052 --17,078 Deputy Director of Community Development 105,888 --179,289 8,824 --14,941 Deputy Director of Finance 105,888 --179,289 8,824 --14,941 Deputy Director of Public Works 105,888 --179,289 8,824 --14,941 Deputy Director of Recreation & Parks 105,888 --179,289 8,824 --14,941 Director of Community Development 120,620 --204,934 10,052 --17,078 Director of Finance 120,620 --204,934 10,052 --17,078 Director of Parks & Recreation 120,620 --204,934 10,052 --17,078 Director of Public Works 120,620 --204,934 10,052 --17,078 Human Resources Manager 105,888 --179,289 8,824 --14,941 Information Technology Manager 99,142 --167,870 8,262 --13,989 Principal Civil Engineer 99,142 --167,870 8,262 --13,989 Resolution No. 2021-26 Exhibit A Page 1 of 2 B-3 PART-TIME POSITIONS Administrative/Public Works/Cable Intern Code Enforcement Officer Park Ranger Permit Clerk Recreation Leader Recreation Leader II Recreation Specialist Staff Assistant I Staff Assistant II Television Producer Television Producer (On-Camera) AUTO ALLOWANCE City Manager Deputy City Manager Director of Community Development Director of Finance Director of Public Works Director of Recreation & Parks Resolution No. 2021-26 Exhibit A Salary and Hourly Schedule for the Competitive, Confidential, Management and Part-time Positions {Effective July 1, 2021) OFFICIAL Hourly Rates BOTTOM TO TOP 14.31 --32.79 33.20 --44.19 18.82 --24.45 23.87 --31.01 14.31 --15.27 15.23 --18.73 18.82 --24.45 22.32 --29.00 25.40 --32.98 18.14 --36.29 20.52 --41.66 Monthly Amount 700 150 150 150 150 150 * City Manager salary set by contract agreement adopted by the City Council. (contract amended February 19, 2020) Resolution No. 2021-26 Exhibit A Page 2 of 2