CITY OF SIGNAL HILL
STAFF REPORT
2175 Cherry Avenue • Signal
Hill, California 90755-3799
12/12/2023
AGENDA ITEM
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: CARLO TOMAINO
CITY MANAGER
BY: GRISSEL CHAVEZ
DEPUTY CITY MANAGER
PATRICIA AHUMADA
HUMAN RESOURCES MANAGER
SUBJECT:
RESOLUTION AMENDING THE HOURLY PART-TIME SALARY SCHEDULE TO
COMPLY WITH THE CALIFORNIA STATE MINIMUM WAGE LAW
Summary:
The City Council will consider an adjustment to the part-time salary schedule 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, 2024, to $16.00 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. City Council approval of the proposed Resolution is required to update the salary schedule effective January 1, 2024.
Strategic Plan Goal(s):
Goal No. 5 High-Functioning Government: Strengthen internal communication, recruitment, retention, systems, and processes to increase the effectiveness and efficiency of City services.
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. 2023-06-6748 TO COMPLY WITH THE CALIFORNIA MINIMUM WAGE LAW CITY OF SIGNAL HILL Page 1 of 4 Printed on 12/7/2023
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12/12/2023
AND REPEALING ALL PRIOR RESOLUTIONS
Fiscal Impact:
The proposed hourly rate increases due to minimum wage requirements are projected to have a negligible impact for the remainder of Fiscal Year (FY) 2023-24. Funding has been allocated as part of the FY 2023-24 Operating Budget. Funding for part-time salary adjustments 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. That law capped the minimum wage at $15.
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 shall 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.
On July 31, 2023, Governor Newsom certified the minimum wage increase for all employers for 2024.
The State’s hourly minimum wage will increase effective January 1, 2024, to $16.00 an hour (regardless of the number of workers employed by an employer.) Current Part-time Salary Schedule
Based on the current Part-time Salary Schedule effective July 1, 2023, (below), the City has five (5) classifications with pay ranges below the 2024 minimum wage requirement with a starting hourly rate of $15.50 (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.
The schedule on the following page reflects a starting hourly rate of $15.50, which would fall below the California minimum wage on January 1, 2024. Each subsequent grade increase in the salary schedule reflects a 5% increase for all positions; therefore, the next hourly wage amount applicable for these part-time positions is $16.26.
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Staff recommends implementing the revised hourly part-time salary schedule as proposed below, effective January 1, 2024, as required by State law. Approval of the attached Resolution adjusting the part-time wages is required for the new wages to take effect.
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12/12/2023
Reviewed for Fiscal Impact:
_________________________
Sharon del Rosario
Attachments:
A. Resolution
B. Exhibit A
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