FOR THE COUNCIL MEETING OF DECEMBER 17, 2024
COUNCIL AGENDA REPORT
TO: City Council
FROM: City Manager David W. Rowlands
BY: Chief Human Resources Officer Graciela Reynoso
SUBJECT: Adoption of a Resolution Approving an Amendment to the City’s Comprehensive Schematic Pay Schedule and Updates to the Classification of Graphics Technician
Description:
The City Council will c onsider approving the single Comprehensive Schematic Pay Schedule in compliance with the requirements of California Public Employees’ Retirement System, implement a previously approved salary adjustment for Service Employees International Union Local 620, Non-represented Management and Confidential Employees, and Public Safety Managers, implement the Minimum Wage increase for the State of California for 2025, and to incorporate the modifications to the Graphics Technician classification.
RECOMMENDATION:
Adopt a Resolution approving a Comprehensive Schematic Pay Schedule to implement the following salary and classification changes:
A. Implementation of a previously approved salary adjustment for the Service Employees International Union Local 620, Non -represented Management a nd Confidential Employees, and Public Safety Managers, effective December 28, 2024; and B. Implement pay changes to address the new 2025 minimum wage requirements of $16.50 per hour for the State of California; and
C. Approve the reclassification of full-time Graphics Technician classification.
BACKGROUND:
In administering the City’s classification and compensation system, and workforce planning, City Human Resources will periodically present to Council recommended changes and salary adjustments for formal approval. Human Resources seeks approval for the following changes:
Implement Negotiated Salary Adjustments
Implement the negotiated salary adjustments previously approved by the City Council from Successor Memorandum of Understanding for Service Employee’s International Union (SEIU), and resolutions for the Non-represented Management and Confidential 2 Employees (NMAC), and Public Safety Managers (PSM). Employees in these units will receive a cost-of-living adjustment (COLA) of 5%.
Implement the 2025 Minimum Wage for the State of California The State of California’s minimum wage is regularly adjusted per labor code section 118.12(c)(3)(B). California Department of Finance announced on August 1, 2024, that a minimum wage of $16.50 per hour will commence on January 1, 2025.
Increase the Part-Time FTE Graphics Technician Position to Full-Time On June 18, 2024, as part of the 2024 -26 Budget Adoption, City Council approved the reclassification of a Graphics Technician in the Library and Recreation and Parks department from a part -time to a full -time classification. The part -time classification will be abolished.
DISCUSSION:
To implement any salary adjustment for employees, the City is required to submit the proposed adjustments to the City Council in open session for approval. This is mandated by California Code of Regulation Subchapter 1, specifically Employee’s Retirement System Regulations Sections 570.5 and 571.1 (2 CCR §§ 570.5 and 571.1). These regulations dictate that when any salary changes occur, the City Council must officially adopt, during a publicly noticed meeting that adheres to all open meeting laws, a stand - alone, unified pay schedule that encompasses all employee classifications.
This Council Agenda Report, along with its attachments, serves as the official record of the requested salary adjustments, as stipulated by legal requirements.
Human Resources requests City Council approval for the following adjustments to the Comprehensive Salary Schematic Pay (“Schedule”).
Implement Previously Approved Salary Adjustments
The City Council previously approved the current Memorandum of Understanding (MOU) for SEIU. As part of the 2024-2025 SEIU Memorandum of Understanding, City negotiators agreed to a salary adjustment of 5% effective the first full payroll period containing January 1, 2025.
Additionally, City Council previously adopted the current Resolutions for NMAC and PSM and agreed to a salary adjustment of 5% effective the first full payroll period containing January 1, 2025.
Implement the New 2025 Minimum Wage Requirements of $16.50 Per Hour The City has a very limited number of hourly positions that compensate below the 2025 minimum wage requirement of $16.50 per hour. This amount is de minimis due to the limited number of positions affected.
3 Reclassification of Graphics Technician from Part-Time to Full-Time Adjust the Salary Range for the Classification of Graphics Technician from ($1,213.44 - $1,475.84/biweekly) to ($2,156.35-$2,621.06/biweekly).
Staff recommends the proposed salary adjustment to the above classification to full-time status with a pay range designed to ensure the City remains competitive when recruiting.
This adjustment is supported by an external salary survey and an internal equity analysis and is necessary to address the growing demand for graphic services withi n City departments. The reclassification from part -time to full -time will support employee retention in City service.
Alternative(s)
A decision by the City Council to not approve the Comprehensive Schematic Pay Schedule would result in being out of comp liance with the California Public Employees’ Retirement System.
Fiscal Considerations
Implementation of Negotiated Salary Adjustments
The previously negotiated salary adjustments fiscal impact is estimated to be $1,255,000 for the remainder of the Fisca l Year 2024-25. This action has been previously approved by City Council and is included in the adopted budget; therefore, this action will not generate additional expenditures.
Implementation of the 2025 Minimum Wage for the State of California The fiscal impact of implementing the state’s new minimum salary requirements will be minimal, as departments will absorb the cost, and no new allocations will be made for the remainder of Fiscal Year 2024-25.
Increase the Part-time FTE Graphics Technician Position to Full-time The fiscal impact of converting the part-time Graphics Technician to a full-time position is approximately $27,000 annually or $13,730 for the remainder of Fiscal Year 2024-25.
Impact to the Community
Overall, City services will continue to be provided by City employees with no decrease in the level of service to the public. Instead, it is expected that there will be a positive impact and increase to current service levels to the public achieved by attr action and retention of a highly skilled workforce to serve the Santa Maria community; increased employee job satisfaction; and increased performance . T he requested schedule change will enhance service to the community and maintain compliance with the Cal ifornia Public Employees’ Retirement System.
ATTACHMENTS
A: FT_PT_LS_Salary Schematic
B: Graphics Technician Job Specification