TO:
VIA:
FROM:
DATE:
Placentia City Council
CITY COUNCIL
CITY ADMINISTRATOR
DIRECTOR OF HUMAN RESOURCES
DECEMBER 5, 2023
AGENDA REPORT
SUBJECT: RESOLUTION TO AMEND THE PAY SCHEDULE FOR PART-TIME
EMPLOYEES IN COMPLIANCE WITH THE STATE MINIMUM WAGE INCREASE FISCAL
IMPACT: FY 2023-24 $2,000 ($4,000 annually) in account 104071-5005.
SUMMARY:
To comply with state minimum wage increase effective January 1, 2024, it is necessary to amend the pay schedule for part-time employees. It is anticipated that the cost to implement this minimum wage increase will cost the City approximately $4,000 per year in total compensation. Prorated costs in the amount of $2,000 will be funded by the General Fund for the remainder of the fiscal year.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Adopt Resolution No. R-2023-91 amending the pay schedule for part-time employees to reflect state minimum wage requirements; and
2. Adopt Resolution No. R-2023-92, A Resolution of the City Council of the City of Placentia, California authorizing a budget amendment in Fiscal Year 2023-24 in compliance with City Charter of the City of Placentia §§1206 and 1209 pertaining to appropriations for actual expenditures.
STRATEGIC PLAN STATEMENT:
This item is consistent with the City Council approved 5 -Year Strategic Goal #8 to Improve City Governance, under Objective #1, which is update all rules, policies and procedures to be consistent with MOUs and State/Federal regulations.
DISCUSSION:
The City's Pay Schedule for Part -Time Positions consists of non-competitive services positions that are excluded from the civil services system. California employers are governed by federal and state minimum wage laws. For 2023, the California minimum wage was $15.50.
1.j.
Dec. 05, 2023
City Council Agenda
December 5, 2023
Due to cost -of -living increase required by the State's minimum wage law, effective January 1, 2024, California's minimum wage will increase from $15.50 to $16.00 per hour for all employers.
California Labor Code section 1182.12 requires an annual review of the wage rate using the U.S.
Consumer Price Index (CPI) and rate of change over the two most recent CPI rates. The California Department of Finance calculated the CPI increase for Fiscal Year 2021-2022 at
7.9 percent and for Fiscal Year 2022-2023 at 6.16 percent, thus triggering the statewide increase in minimum wage of at least 3.5 percent. For ease of payroll and to include within the first pay period for 2024, the rate increase will go into effect December 24, 2023. This will affect approximately 40 part-time employees, who now earn less than $16.00 per hour in job classifications shown on the proposed resolution and pay schedule. Staff is recommending that the City Council adopt the proposed part-time pay schedule to ensure all employees are paid at least the California minimum wage of $16.00 per hour.
The adoption of this resolution is necessary pursuant to the Personnel Rules and Regulations of the City of Placentia, Rule IV, Section 1, which states proposed compensation schedules must be submitted to the City Council for approval.
FISCAL IMPACT:
This proposal will cost the City approximately $4,000 per year in total compensation. Staff requests approval of a budget amendment in the prorated amount of $2,000 from the General Fund's fund balance for the remainder of the current fiscal year.
Prepared by
Alice Burnett
Director of Human Resources
Reviewed and approved:
Damien R. Arrula
City Administrator
Reviewed and approved:
Rosanna Ramirez
Deputy City Administrator
Attachments:
1. Resolution No. R-2023-91
a. Salary Schedule, Part -Time
2. Resolution No. R-2023-92 — Budget Amendment