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CC SR 20251216 G - 2026 CA Minimum WageCITY COUNCIL MEETING DATE: 12/16/2025 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consider setting a new minimum wage for part-time employees to reflect the State of California’s new minimum wage increase for the 2026 calendar year. RECOMMENDED COUNCIL ACTION: 1.Adopt Resolution No. 2025-__, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES AMENDING, RESTATING, AND SUPERSEDING RESOLUTION NO. 2025-58 TO REFLECT AN UPDATED SALARY AND HOURLY COMPENSATION SCHEDULE FOR ALL CITY EMPLOYEES EFFECTIVE JANUARY 1, 2026. FISCAL IMPACT: If the City Council adopts the attached Resolution, the minimum wage will increase from $16.50 to $16.90 per hour effective January 1, 2026. The fiscal impact varies, depending on the number of hours worked by part-time employees who receive minimum wage. Currently, there is only 1 employee, an Intern, who receives minimum wage. The increase is included in the adopted budget for FY 2025-26. VR Amount Budgeted: $2,149,000 (Citywide part-time salaries and benefits) Additional Appropriation: None Account Number(s): 101-400-XXXX-4102 and 42XX (General Fund – various part-time accounts) VR ORIGINATED BY: Vanessa Godinez, Human Resources and Risk Manager VG REVIEWED BY: Catherine Jun, Deputy City Manager CJ APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A.Resolution No. 2025-__ Minimum Wage Increase (page A-1) B.Salary Schedule, effective January 1, 2026 (B-1) C.Resolution No. 2025-58 (C-1) BACKGROUND: 1 In 2016, Senate Bill (SB) 3 was approved to increase the State’s minimum wage annually for all employers with 26 or more employees: Year Minimum Wage Rate January 1, 2017 $10.50 Per Hour 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 January 1, 2023 $15.50 Per Hour January 1, 2024 $16.00 Per Hour January 1, 2025 $16.50 Per Hour SB 3 requires that after January 1, 2023, the minimum wage be increased annually for inflation based on the national Consumer Price Index (CPI) for urban wage earners and clerical workers (CPI-W). However, the minimum wage cannot be lowered, even if there is a negative CPI. By August 1 of each year, the State Director of Finance calculates an adjusted minimum wage effective January 1 in the following year. The minimum wage for 2025 is $16.50 per hour and was incorporated into the City’s Salary Schedule via Resolution No. 2025 - 28 (Attachment C). DISCUSSION: Effective January 1, 2026, the California minimum wage will increase to $16.90 per hour based on the national CPI. To ensure the City is compliant with State law, Staff requests adjusting the City’s listed minimum wage of $16.50 per hour to $16.90 per hour for applicable job positions in the Salary Schedule. To do so, City Council would need to adopt the attached resolution to approve the revised Salary Schedule (Attachments A and B). The only affected classification is Intern, which currently has one incumbent. ADDITIONAL INFORMATION: The proposed Salary Schedule (Attachment B) also includes a potential increase to the City Manager’s base salary that the City Council is considering tonight under a separate Staff Report. Both pay changes were combined into the proposed Salary Schedule to avoid presenting two separate and potentially conflicting Salary Schedules on the same agenda tonight. If the increase to the City Manager’s base salary is not approved, the Salary Schedule will be revised to reflect his current salary. This contingency has been noted in the Salary Schedule and the City Manager Staff Report under the “Additional Information” section. Furthermore, in accordance with CalPERS and California Code of Regulations § 570.5, the revised City Salary and Hourly Schedule for all City employees will be updated and 2 publicly available on the City’s website. The City’s two labor units, Rancho Palos Verdes Employee Association (RPVEA) and American Federation of State, County, and Municipal Employees (AFSCME), have also been notified of this change. CONCLUSION: Staff recommend the City Council adopt the attached Resolution, thereby adopting an updated salary schedule effective January 1, 2026 that will apply a $16.90 per hour minimum wage for the Intern classification. 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 positions in compliance with the minimum wage state laws. 2.Take other action as deemed appropriate. 3 RESOLUTION NO. 2025-__ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES AMENDING, RESTATING, AND SUPERSEDING RESOLUTION NO. 2025-58 TO REFLECT AN UPDATED SALARY AND HOURLY COMPENSATION SCHEDULE FOR ALL CITY EMPLOYEES EFFECTIVE JANUARY 1, 2026 WHEREAS, the City Council adopted Resolution 2025-58 on August 19, 2025, that set the Salary and Hourly Compensation Schedule for all City employees (full and part- time), and, WHEREAS, the City Council now desires to amend the City’s Salary Schedule (Exhibit A) to reflect the new salary ranges based on a California state mandated minimum wage increase and an adjustment to the City Manager’s annual salary effective January 1, 2026; 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 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, 2026; and, Section 2. Resolution No. 2025-58 is hereby amended, restated, and superseded and replaced by this resolution to reflect new salary ranges for classifications based on a state mandated $16.90 per hour minimum wage and an adjustment to the City Manager’s annual salary (contingent upon the City Council approving Amendment No. 7 to the City Manager’s Employment Agreement) effective January 1, 2026; and, Section 3. This Resolution shall be adopted on December 16, 2025. The City Clerk shall certify the adoption of this Resolution. A-1 Resolution No. 2025-__ Page 2 of 2 PASSED, APPROVED AND ADOPTED on this 16th day of December, 2025. ________________________________ Paul Seo, Mayor ATTEST: ________________________________ Teresa Takaoka, 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. 2025-__ was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on December 16, 2025. ________________________________ Teresa Takaoka, City Clerk A-2 COMPETITIVE POSITIONS (RPVEA)MINIMUM ANNUAL SALARY MAXIMUM ANNUAL SALARY Accountant $89,816 $116,761 Accounting Clerk $61,419 $79,845 Accounting Manager $116,529 $151,487 Accounting Technician $69,522 $90,378 Administrative Analyst $87,057 $113,173 Administrative Assistant $72,747 $94,570 Assistant Engineer $99,766 $129,697 Assistant Planner $85,453 $111,089 Associate Engineer $113,744 $147,867 Associate Planner $95,033 $123,543 Building Inspector $82,978 $107,865 Cable TV Station Manager $95,525 $123,750 Code Enforcement Officer $79,833 $104,155 Deputy City Clerk $81,086 $105,411 Engineering Technician $76,445 $99,273 Geographic Information Systems Coordinator $99,748 $129,673 Lead Worker $70,803 $91,966 Maintenance Superintendent $134,287 $174,575 Maintenance Supervisor $87,676 $113,561 Maintenance Worker $63,192 $82,149 Open Space & Trails Coordinator $74,182 $96,435 Open Space & Trails Manager $134,287 $174,575 Open Space & Trails Supervisor $89,017 $115,722 Park Ranger $59,793 $77,730 Permit Clerk $60,254 $78,330 Permit Technician $68,769 $89,399 Planning Technician $71,950 $93,405 Principal Planner $119,835 $155,624 Project Manager $110,863 $144,122 Recreation Program Coordinator $74,182 $96,435 Recreation Program Supervisor $89,017 $115,722 Recreation Services Manager $102,456 $133,016 Senior Accountant $98,019 $127,424 Senior Accounting Technician $81,874 $106,437 Senior Administrative Analyst $102,975 $133,867 Senior Administrative Analyst (Records Management)$89,343 $116,147 Senior Administrative Analyst/Emergency Management Coordinator $102,975 $133,867 Senior Building Inspector $92,974 $120,866 Senior Code Enforcement Officer $90,190 $117,133 Senior Engineer $124,164 $161,413 Senior Information Technician $107,059 $139,008 Senior Maintenance Worker $69,511 $90,363 Senior Park Ranger $65,772 $85,503 Senior Planner $109,340 $142,141 Senior Staff Assistant $59,770 $77,701 Staff Assistant $54,244 $70,517 Traffic Engineering Technician $76,048 $98,865 Effective January 1, 2026 Resolution No. 2025-___ Exhibit A Salary Schedule for Competitive, Confidential and Management positions B-1 CONFIDENTIAL POSITIONS (UNREPRESENTED GROUP)MINIMUM ANNUAL SALARY MAXIMUM ANNUAL SALARY Accounting Supervisor $113,612 $147,696 Executive Assistant $80,996 $105,297 Human Resources Analyst $91,661 $119,159 MANAGEMENT POSITIONS (UNREPRESENTED GROUP)MINIMUM ANNUAL SALARY MAXIMUM ANNUAL SALARY Assistant to the City Manager $120,829 $157,078 Building Official $146,168 $190,019 City Clerk $146,168 $190,019 City Manager * $273,800 ^ Deputy City Manager $195,619 $254,304 Deputy Director of Community Development $156,112 $202,945 Deputy Director of Finance $156,112 $202,945 Deputy Director of Public Works $156,112 $202,945 Deputy Director of Recreation & Parks $156,112 $202,945 Director of Community Development $178,442 $231,976 Director of Finance $178,442 $231,976 Director of Parks & Recreation $178,442 $231,976 Director of Public Works $178,442 $231,976 Information Technology Manager $146,168 $190,019 Human Resources Manager $156,112 $202,945 Principal Civil Engineer $146,168 $190,019 Public Safety Manager $146,168 $190,019 *separate contract B-2 PART-TIME POSITIONS MINIMUM HOURLY RATE MAXIMUM HOURLY RATE Code Enforcement Officer $36.30 $47.14 Human Resources Specialist $36.37 $47.28 Intern *$16.90 $19.50 IT Specialist $33.00 $42.90 Open Space & Trails Crew Lead $22.51 $29.26 Open Space & Trails Worker $19.57 $25.44 Permit Clerk $26.50 $34.42 Public Safety Liaison $23.12 $30.05 Recreation Leader $19.57 $25.44 Recreation Specialist $25.88 $33.65 Senior Recreation Leader $22.51 $29.26 Senior Staff Assistant $27.08 $35.16 Staff Assistant $23.82 $30.95 Television Producer $29.61 $38.50 Television Producer (On-Camera)$33.99 $44.20 * Not represented by AFSCME; position is at-will and unrepresented ^ The City Manager’s annual salary is contingent upon City Council approval of Amendment No. 7 to the City Manager's Employment Agreement on 12/16/25. If Amendment No. 7 is not approved, the Schedule will be revised to reflect the City Manager’s current annual base salary of $267,800. The American Federation of State, County and Municipal Employees, District Council 36 (AFSCME) Memorandum of Understanding (MOU) expired on June 30, 2025. The City and AFSCME representatives are currently in negotiations for a successor MOU. Salary Schedule for part-time positions listed below will remain as-is until negotiations concludes. B-3 RESOLUTION NO. 2025-58 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, STATE OF CALIFORNIA, SUPERSEDING RESOLUTION NO. 2025-49 TO AMEND THE SALARY SCHEDULE FOR THE RANCHO PALOS VERDES EMPLOYEES' ASSOCIATION TO REFLECT A SALARY ADJUSTMENT FOR THE OPEN SPACE AND TRAILS MANAGER POSITION EFFECTIVE JULY 1, 2025. WHEREAS, the City Council adopted Resolution 2025-49 on July 15, 2025, that reflected updated salary ranges for the Public Safety Manager and Intern positions; remove the Open Space and Trails Specialist position and salary range; and add the Open Space and Trails Coordinator position and salary range, as approved by the City Council as part of the adopted FY 2025-26 Operating Budget. This amended Salary Schedule was for all full-time employees represented by the Rancho Palos Verdes Employee Association (RPVEA) and Unrepresented (Management and Confidential) employees, including the City Manager, based on cost of living adjustment (COLA) wage increase of three percent (3%) effective the first full pay period of FY 2025-26; and WHEREAS, the City Council now desires to amend the City's Salary Schedule to adjust the salary range for Open Space and Trails Manager from $106,986—$138,955 to a new range of $134,2874174,575, effective July 1, 2025, and subject to any adjustments as outlined in the FY 2025-2028 MOU with RPVEA; and WHEREAS, Section 36506 of the California Government Code requires that the City Council fix the 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 updates must be made via Resolution. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: Section 1: Resolution No. 2025-49 is hereby superseded and replaced by this resolution to reflect the adjusted salary range for Open Space and Trails Manager effective July 1, 2025. Section 2: This resolution shall be made retroactively effective on July 1, 2025 and applied to the first full pay period of FY 2025-26. The City Clerk shall certify the adoption of this Resolution. Resolution No 2025-58 Page 1 of 2 C-1 PASSED, APPROVED and ADOPTED this 19th day of August, 2025. David L. Bradley, Mayor Attest: a .ice64:1, 4 esa akao. a, 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. 2025-58 was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on August 19, 2025. 014, esa Takaoka, City Clerk I Resolution No 2025-58 Page 2 of 2 C-2 COMPETITIVE POSITIONS (RPVEA)MINIMUM ANNUAL SALARY MAXIMUM ANNUAL SALARY Accountant $89,816 $116,761 Accounting Clerk $61,419 $79,845 Accounting Manager $116,529 $151,487 Accounting Technician $69,522 $90,378 Administrative Analyst $87,057 $113,173 Administrative Assistant $72,747 $94,570 Assistant Engineer $99,766 $129,697 Assistant Planner $85,453 $111,089 Associate Engineer $113,744 $147,867 Associate Planner $95,033 $123,543 Building Inspector $82,978 $107,865 Cable TV Station Manager $95,525 $123,750 Code Enforcement Officer $79,833 $104,155 Deputy City Clerk $81,086 $105,411 Engineering Technician $76,445 $99,273 Geographic Information Systems Coordinator $99,748 $129,673 Lead Worker $70,803 $91,966 Maintenance Superintendent $134,287 $174,575 Maintenance Supervisor $87,676 $113,561 Maintenance Worker $63,192 $82,149 Open Space & Trails Coordinator $74,182 $96,435 Open Space & Trails Manager $134,287 $174,575 Open Space & Trails Supervisor $89,017 $115,722 Park Ranger $59,793 $77,730 Permit Clerk $60,254 $78,330 Permit Technician $68,769 $89,399 Planning Technician $71,950 $93,405 Principal Planner $119,835 $155,624 Project Manager $110,863 $144,122 Recreation Program Coordinator $74,182 $96,435 Recreation Program Supervisor $89,017 $115,722 Recreation Services Manager $102,456 $133,016 Senior Accountant $98,019 $127,424 Senior Accounting Technician $81,874 $106,437 Senior Administrative Analyst $102,975 $133,867 Senior Administrative Analyst (Records Management)$89,343 $116,147 Senior Administrative Analyst/Emergency Management Coordinator $102,975 $133,867 Senior Building Inspector $92,974 $120,866 Senior Code Enforcement Officer $90,190 $117,133 Senior Engineer $124,164 $161,413 Senior Information Technician $107,059 $139,008 Senior Maintenance Worker $69,511 $90,363 Senior Park Ranger $65,772 $85,503 Senior Planner $109,340 $142,141 Senior Staff Assistant $59,770 $77,701 Staff Assistant $54,244 $70,517 Traffic Engineering Technician $76,048 $98,865 Resolution No. 2025-58 Attachment 1 Effective July 1, 2025 (Adoption of 3.0% Cost of Living Adjustment, COLA) - AMENDED Salary Schedule for Competitive, Confidential and Management positions Resolution No. 2025-58 Attachment 1 Page 1 of 3C-3 CONFIDENTIAL POSITIONS (UNREPRESENTED GROUP)MINIMUM ANNUAL SALARY MAXIMUM ANNUAL SALARY Accounting Supervisor $113,612 $147,696 Executive Assistant $80,996 $105,297 Human Resources Analyst $91,661 $119,159 MANAGEMENT POSITIONS (UNREPRESENTED GROUP)MINIMUM ANNUAL SALARY MAXIMUM ANNUAL SALARY Assistant to the City Manager $120,829 $157,078 Building Official $146,168 $190,019 City Clerk $146,168 $190,019 City Manager *$267,800 Deputy City Manager $195,619 $254,304 Deputy Director of Community Development $156,112 $202,945 Deputy Director of Finance $156,112 $202,945 Deputy Director of Public Works $156,112 $202,945 Deputy Director of Recreation & Parks $156,112 $202,945 Director of Community Development $178,442 $231,976 Director of Finance $178,442 $231,976 Director of Parks & Recreation $178,442 $231,976 Director of Public Works $178,442 $231,976 Information Technology Manager $146,168 $190,019 Human Resources Manager $156,112 $202,945 Principal Civil Engineer $146,168 $190,019 Public Safety Manager $146,168 $190,019 separate contract Resolution No. 2025-58 Attachment 1 Page 2 of 3C-4 PART-TIME POSITIONS MINIMUM HOURLY RATE MAXIMUM HOURLY RATE Code Enforcement Officer $36.30 $47.14 Human Resources Specialist $36.37 $47.28 Intern *$16.50 $19.50 IT Specialist $33.00 $42.90 Open Space & Trails Crew Lead $22.51 $29.26 Open Space & Trails Worker $19.57 $25.44 Permit Clerk $26.50 $34.42 Public Safety Liaison $23.12 $30.05 Recreation Leader $19.57 $25.44 Recreation Specialist $25.88 $33.65 Senior Recreation Leader $22.51 $29.26 Senior Staff Assistant $27.08 $35.16 Staff Assistant $23.82 $30.95 Television Producer $29.61 $38.50 Television Producer (On-Camera)$33.99 $44.20 Not represented by AFSCME; position is At-will and unrepresented The American Federation of State, County and Municipal Employees, District Council 36 (AFSCME) Memorandum of Understanding (MOU) is set to expire on June 30, 2025. The City and AFSCME representatives are currently in negotiations for a successor MOU. Salary Schedule for part-time positions listed below will remain as-is until negotiations concludes. Resolution No. 2025-58 Attachment 1 Page 3 of 3C-5