TO: ADAM PIRRIE, CITY MANAGER
FROM: JAMIE EARL, ASSISTANT CITY MANAGER
DATE: JUNE 25, 2024
Reviewed by:
City Manager: AP
SUBJECT:
Title
ADOPTION OF A RESOLUTION ADOPTING REVISED SALARY SCHEDULES FOR PART-TIME JOB CLASSIFICATIONS FOR FISCAL YEARS 2024-25, 2025-26, AND 2026-27 (FUNDING SOURCE: VARIOUS FUNDS)
Body
SUMMARY
Effective January 1, 2024, the minimum wage in California became $16.00 per hour for all employers. Additionally, five of the City’s six Employee Bargaining Units have reached tentative agreements with the City to implement a 9 percent negotiated salary increase effective July 1, 2024, and 3 percent negotiated salary increases on July 1, 2025, and July 1, 2026, respectively. To be consistent and equitable with salary increases that were recently negotiated, and to compensate employees at or above minimum wage requirements, staff recommends updating pay ranges for part-time (unrepresented) employees. By adjusting pay ranges for part-time classifications, the City will be able to compete with other industries, hire new employees, improve retention, and continue to provide City services that the community enjoys and expects.
The California Public Employees’ Retirement system (CalPERS) requires the pay rate for each job classification be available on a publicly available pay schedule, duly approved, and adopted by the governing board. Changes to the part-time salary schedule require the City Council to adopt a Resolution (Attachment) that reflects the revised salary schedules for part-time job classifications, effective July 1, 2024; July 1, 2025; and July 1, 2026. It should be noted that the City of Claremont may be required to increase wages again prior to January 1, 2025 if there are additional changes to State minimum wage law.
RECOMMENDATION
Recommended Action
Staff recommends the City Council adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLAREMONT, CALIFORNIA, ADOPTING REVISED SALARY SCHEDULES FOR PART-TIME JOB CLASSIFICATIONS FOR FISCAL YEARS 2024-25, 2025-26, AND 2026-27.
Body
ALTERNATIVES TO RECOMMENDATION
In addition to the recommendation, there are the following alternatives:
A. Take no action.
B. Request additional information.
FINANCIAL REVIEW
The estimated cost associated with the implementation of the proposed Part-Time Salary Schedule for the 2024-26 Operating Budget is approximately $141,400 in 2024-25 and an additional $54,500 in 2025-26, which does not account for the potential $18.00 per hour minimum wage that may take effect in 2025. If the minimum wage increases, there will be additional budgetary impacts to the City. The cost for 2026-27 is proposed to be included in the 2026-28 Operating Budget.
The staff cost to prepare this report is estimated at $600 and is included in the operating budget of the Administrative Services Department.
ANALYSIS
The City of Claremont has implemented mandatory minimum wage increases over the past several years per the State of California’s minimum wage requirement. In 2021, due to difficulties in recruiting and retaining staff in part-time positions, a compensation survey for part-time job classifications was conducted. At that time, the survey indicated that hourly wages for eighteen part-time job classifications were below the market average. On December 14, 2021, the City Council adopted a Part-Time Salary Schedule that complied with the State minimum wage and took into consideration the results of a compensation survey.
Effective January 1, 2024, the minimum wage in California became $16.00 per hour for all employers. Additionally, five of the City’s six Employee Bargaining Units have reached tentative agreements with the City to implement a 9 percent negotiated salary increase effective July 1, 2024, and 3 percent negotiated salary increases on July 1, 2025, and July 1, 2026, respectively. To be consistent and equitable with salary increases that were recently negotiated, and to compensate employees at or above minimum wage requirements, staff recommends updating pay ranges for part-time (unrepresented) employees. Additionally, in today’s job market, local fast-food restaurants and other industries are already subject to a $20.00 per hour minimum wage, which has affected the City’s ability to recruit and retain part-time staff.
Looking ahead, a measure that is eligible for the November 2024 ballot would, if passed by California voters, further accelerate the pace of minimum wage increases. If passed, by January 1, 2025, for employers with 26 or more employees, the Statewide minimum wage would increase to $18.00 per hour. By adjusting pay ranges for part-time classifications, the City will be able to compete with other industries, hire new employees, improve retention, and continue to provide City services that the community enjoys and expects.
Part-time staff turnover is also a drain on City resources and impacts the efficiency of the organization. The constant recruitment and training of new part-time staff, particularly in the Community Services, Human Services and Police Departments, means that full-time staff responsible for supervising and training part-time employees must dedicate a significant portion of their time to training, taking their attention away from other responsibilities.
The California Public Employees’ Retirement system (CalPERS) requires the pay rate for each job classification be available on a publicly available pay schedule, duly approved, and adopted by the governing board. With changes to the part-time salary schedule necessary as a result of increase(s) to the State minimum wage, staff recommends that the City Council adopt a Resolution (Attachment) that reflects the revised salary schedules for part-time job classifications, effective July 1, 2024; July 1, 2025; and July 1, 2026. It should be noted that the City of Claremont has more than 26 employees and therefore may be required to increase wages again prior to January 1, 2025.
LEGAL REVIEW
The resolution being considered by the City Council has been reviewed and approved as to form by the City Attorney.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds that it applies to the following City Planning Documents: Council Priorities, Sustainable City Plan, and the 2024-26 Budget.
CEQA REVIEW
This item is not subject to environmental review under the California Environmental Quality Act (CEQA).
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by: Prepared by:
Jamie Earl Katie Wand
Assistant City Manager Assistant to the City Manager
Attachment:
Resolution Adopting Revised Salary Schedules for Part-Time Job Classifications