GENDA ITEM
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: CARLO TOMAINO
CITY MANAGER
BY: PATRICIA AHUMADA
HUMAN RESOURCES MANAGER
SUBJECT:
title
RESOLUTION AMENDING THE HOURLY PART-TIME SALARY SCHEDULE TO COMPLY WITH THE CALIFORNIA STATE MINIMUM WAGE LAW
summary
Summary:
The City Council will consider an amendment to the part-time salary resolution that would update the City’s hourly, part-time salary ranges to comply with the California State minimum wage law. The State’s hourly minimum wage will increase effective January 1, 2025, to $16.50 an hour. The City has five existing part-time classifications (Intern, Library Aide, Maintenance Helper, Police Aide, and Recreation Leader) whose wages would need to be updated accordingly to comply with the law. If approved by City Council, the updated salary schedule would be effective January 1, 2025.
Strategic Plan Goal(s):
Goal No. 5: Strengthen internal communication, recruitment, retention, systems, and processes to increase the effectiveness and efficiency of City services.
recommendation
Recommendation:
Adopt a resolution, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA, AMENDING SALARY RANGES FOR HOURLY, PART-TIME EMPLOYEES PREVIOUSLY ADOPTED BY RESOLUTION NO. 2024-06-6819 TO COMPLY WITH THE CALIFORNIA MINIMUM WAGE LAW AND REPEALING ALL PRIOR RESOLUTIONS
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Fiscal Impact:
The proposed hourly rate increases due to minimum wage requirements are projected to have a negligible impact for the remainder of FY 2024-25. Funding has been allocated and approved as part of the FY 2024-25 Operating Budget. Funding for part-time salaries for future years would be considered as part of the annual budget review process.
Background and Analysis:
With the passage of the California Fair Wage Act of 2016, the State’s minimum wage has increased every year for employers of all sizes since 2017 in accordance with legislation signed into law by former Governor Jerry Brown. The law capped the minimum wage at $15 per hour. However, a provision in the law involves an annual review of the United States Consumer Price Index for Urban Wage Earners and Clerical Workers (U.S. CPI-W) by the Department of Finance. After 2023, the minimum wage will increase based on the lesser of 3.5 percent and the rate of change in the averages of the two most recent U.S. CPI-W, unless those averages are negative. If the averages are negative, there shall be no increase or decrease in the minimum wage for the following year.
The Department of Finance calculated that the U.S. CPI-W increased by 6.16 percent for the period from July 1, 2022, to June 30, 2023, compared to the prior 12-month period. Therefore, the State’s minimum wage increased to $16.00 on January 1, 2024.
This year, the Department of Finance calculated the average U.S. CPI-W for the 12-month period from July 1, 2023, to June 30, 2024, increased by 3.18 percent compared to the prior 12-month period. As a result, pursuant to section 1182.12(c), Finance has determined that the minimum wage shall increase by 3.18 percent to $16.50 per hour effective January 1, 2025.
Current Part-time Salary Schedule
Based on the current Part-Time Salary Schedule effective July 1, 2024 (below), the City has five (5) classifications with pay ranges that are below the 2025 minimum wage requirement with a starting hourly rate of $16.25. These are: Intern, Library Aide, Maintenance Helper, Police Aide, and Recreation Leader. Only three (3) of these classifications are currently in use: Library Aide, Recreation Leader, and Police Aide.
Staff recommends implementing the revised hourly part-time salary schedule as proposed in the chart below, effective January 1, 2025, as required by the State of California. The attached Resolution amending the part-time wages is provided for Council approval.
Reviewed for Fiscal Impact:
_________________________
Sharon del Rosario
Attachments:
A. Resolution
B. Exhibit A