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HomeMy WebLinkAbout1997-10-07; City Council; 14364; REVISION OF HOURLY SALARY SCHEDULEfor market adjustments. ITEM EXPLANATION: In August 1996, both federal and state legislatures mandated a series of significant increases in the minimum wage that must be paid by employers. Staff reviewed the hourly salary structure to determine what actions needed to be taken to comply with the new minimum wage laws. Simultaneously, staff conducted a forrnal salary survey of hourly positions in comparable local government agencies to ensure that the City's hourly wage rates were competitive. As a result of these two factors, a revised hourly salary schedule reflecting both the new minimum wage increases and recommended market adjustments is being submitted for Council's consideration and approval. Staff requests $145,600 to be appropriated to implement the proposed salary schedule and fund salary adjustments where appropriate to hourly employees. Reasons for the Proposed Market Adjustment to the Salarv Structure A new hourly salary schedule adjusting all salary ranges is necessary at this time because of the following reasons. 0 The following federal and state minimum wage increases have been enacted covering the period from October 1996 through March 1998. Effective Date Minimum Wage per Hour Net % Increase $4.25 $5.00" +5.3% September 1, 1997 $5.15 +3.0% $5.75* +l 1.7% *CA Wage Order enacted by the passage of Proposition 210 The City is obligated to comply with the federal minimum wage increases. Because cities are not covered under the state wage orders, the state minimum wage increases are I e 0 Page2ofAB# )4, 36y The new minimum wage rates will require the City to increase minimum wages from $4.50 to $5.75 resulting in a 28% increase over a three year period. This increase in the minimum wage will directly affect nearly one half of our hourly workforce. Because the movement of the minimum wage results in a significant impact to entry level salaries, all salary ranges are affected and become compressed. Consequently, all salary ranges need some adjustment to maintain an adequate minimum to maximum spread in each range. Hourly salary ranges have not been adjusted since 1995. Therefore salary range adjustments in all job categories need to reflect current market rates for these jobs. A formal salary survey of the market indicates that the City needs to realign the hourly salary structure to remain competitive in the job market. Hourly salary ranges need adjusting to maintain comparability with similar and like jobs within the City’s full-time workforce and salary structure. Range adjustments for the full-time workforce increased over 3% since 1995. Since the lengths of hourly salary ranges are shorter and begin at a lower pay level, the disparity between hourly pay rates and similar full-time rates will continue to increase without appropriate adjustments. Current problems in recruiting and retaining hourly staff in certain jobs require specific adjustments in the salary ranges in order to pay competitively and to attract qualified applicants and mitigate turnover. e 0 Proposed - Adiustment to the Hourly Salaw Budgets Considering the mandatory minimum wage increases and the need to stay current with competitive wages, staff proposes funding the part-time budgets by an additional $145,600 to implement the new hourly salary schedule. This additional funding will allow departments to provide discretionary increases. These increases will average $.25 to $1 .OO per hour and will be determined on a case by case basis. Departments must determine individual increases for their hourly staff based on the current hourly salary policy. Thus, departments may vary increases based on performance differences among their staff and address any compression of salary problems within their own internal equity system. Only the mandatory minimum wage increases and minimum salary range adjustments will be implemented automatically for those employees affected. Also submitted for Council approval is a revised Hourly Salary Schedule to be effective March 1, 1998 reflecting the last mandatory minimum increase to $5.75 per hour. - -3” 0 0 Page3ofAB# /Y,36 7 FISCAL IMPACT: The mandatory wage increase of 28% moving the minimum hourly rate from $4.50 to $5.75 costs approximately $45,000 and is already funded in the 1997-98 budget. An additional estimated cost of $145,600 is recommended to be appropriated to various gart- time salary accounts to provide funds to adjust individual salaries as necessary to respond to market place demands and performance. The approved FY 1997-98 budget for part- time salaries is $1,625,8 10. Staff requests that the funding for this adjustment is transferred fiom Council’s contingency fund for FY 1997-98 to all departments’ part-time budget accounts according to the attached schedule (Attachment B). EXHIBITS: Resolution NO. 77 - 615 /- 1 2 3 4 5 6 7 8 9 10 I1 12 13 14 15 16 11 18 19 20 21 22 23 24 25 26 27 28 0 0 RESOLUTION NO. 97-615 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE REVISED HOURLY SALARY SCHEDULE FOR HOURLY EMPLOYEES WHEREAS, the City Council has determined to make revisions in the salary schedule for hourly employees to comply with mandatory minimum wage increases and to maintain competitive wage salaries; and, WHEREAS, additional funds to adjust salary ranges to realign the revised salary schedule in accordance with mandatory wage increases and market movement for Fiscal Year 1997-98 are available in the Council’s contingency fund and are necessary to be included in department accounts for Fiscal Year 1997-98. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. 2. That the above recitations are true and correct. That the Hourly Salary Schedules effective October 7, 1997 and March 1,1998 (Attachment A) attached hereto are hereby approved and adopted. // // // // I -c , 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 e 0 3. That $145,600 be transferred from the Council Contingency Fund covering market movement in the salary ranges during Fiscal Year 1997-98 to departments’ part-time budget accounts in accordance with the attached schedule (Attachment B). PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad, California, on the 7th day of October 1997, by the following vote, to wit: AYES: NOES: None ABSENT: None Council Members Lewis, Finnila, Nygaard, Kulchin, and Hall ATTEST: ALETHA L. RAUTENKRANZ, City Clerk (SEAL) 0 0 Attachment A Resolution No. 97-615 e HOURLY SALARY SCHEDULE Effective: October 7,1997 SALARY RANGES CLASSIFTCATION CATEGORIES MINIMUM MAXTMUM Office $ 5.15 $15.00 Aide (5.15 - 10.00) Assistant (10.00 - 14.50) Accounting Assistant (8.50 - 15.00) TechnicaVParaurofessional $ 5.15 $1 7.00 Aide (5.15 - 9.00) Assistant (9.00 - 17.00) Service $ 5.50 $i 5.00 CustodidGrounds Aide (5.50 - 12.00) Maintenance Assistant (9.00 - 15.00) Administrative $ 5.15 $20.00 AideAntern (5.15 - 9.00) Assistant (9.00 - 20.00) Legal intern (15.00 - 20.00) Librarv $ 5.15 $20.00 Page (5.15 - 8.00) Clerk (8.00 - 1 1 .OO) Technician (10.00 - 14.00) Reference Librarian (13.00 - 18.00) Arts Aide (5.15 - 11.00) Arts Assistant (1 1 .OO - 20.00) Recreation $ 5.15 $15.00 Aide (5.15 - 7.25) Leader (7.00 - 9.00) Senior Leader (9.00 - 12.00) Lagoon Specialist (10.00 - 15 .OO) Lifeguard (7.00 - 9.00) Specialty Instructor (9.00 - 14.00) Instructorhifeguard (8.00 - 13.00) Senior Instructorkifeguard (10.00 - 15 .OO) Preschool Instructor (9.00 - 13.00) Van Driver (5.50 - 9.50) Kitchen Aide (5.15 - 8.00) PROFESSIONAL SERVICES : Hourly rate determined by Human Resources and approved by the City Manager’s Office. e e Attachment A Resolution No. 97-615 7 HOUFUY SALARY SCHEDULE Effective: March 1,1998 SALARY RANGES CLASSIFICATION CATEGORIES MINIMUM MAXIMUM Office $ 5.75 $15.00 Aide (5.75 - 10.00) Assistant (10.00 - 14.50) Accounting Assistant (8.50 - 15.00) Technica Warawofessional $ 5.75 $1 7.00 Aide (5.75 - 9.00) Assistant (9.00 - 17.00) Service $ 5.75 $15.00 CustodidGrounds Aide (5.75 - 12.00) Maintenance Assistant (9.00 - 15.00) Administrative $ 5.75 $20.00 Aidefintern (5.75 - 9.00) Legal intern (1 5.00 - 20.00) Assistant (9.00 - 20.00) Librarv $ 5.75 $20.00 Page (5.75 - 8.00) Clerk (8.00 - 11 .OO) Technician (10.00 - 14.00) Reference Librarian (1 3 .OO - 18.00) Arts Aide (5.75 - 1 1 .OO) Arts Assistant (1 1 .OO - 20.00) Recreation $ 5.75 $15.00 Aide (5.75 - 7.25) Leader (7.00 - 9.00) Senior Leader (9.00 - 12.00) Lagoon Specialist (10.00 - 15.00) Lifeguard (7.00 - 9.00) Specialty Instructor (9.00 - 14.00) InstructorLifeguard (8.00 - 13.00) Senior InstructorLifeguard (10.00 - 15.00) Preschool Instructor (9.00 - 13.00) Van Driver (5.75 - 9.50) Kitchen Aide (5.75 - 8.00) PROFESSIONAL SERVICES : Hourly rate determined by Human Resources and approved by the City Manager’s Office. a e Attachment B Schedule to Distribute $145,600 to Departments’ Part-Time Accounts Community Services $ 63,300 Library $ 60,000 Finance $ 4,500 Purchasing $ 1,500 Human Resources $ 2,000 Police $ 1,500 ComDev/GIS $ 1,000 Planning $ 3,200 Building $ 2,600 Information Systems $ 3,000 Risk Management $ 2,000 Housing $ 1,000 Total: $145,600 7- i /