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Report regarding a Resolution to Amend the Salary Schedule for the City of South San Francisco effective January 1, 2022. (Leah Lockhart, Human Resources Director)
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RECOMMENDATION
Recommendation
Staff recommends that the City Council adopt a resolution to amend the Salary Schedule for the City of South San Francisco effective January 1, 2022, in compliance with South San Francisco Municipal Code Section 8.71.030 Minimum Wage.
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BACKGROUND/DISCUSSION
In September, 2019 City Council adopted Ordinance 1587-2019 adding Chapter 8.71 of the South San Francisco Municipal Code relating to a City-wide minimum wage. Section 8.71.030 established the minimum wage of $15.00 per hour effective January 1, 2020. Beginning on January 1, 2021, and each January thereafter, the minimum wage shall increase by a percentage amount equal to the prior year’s increase, if any, in the Consumer Price Index (CPI) for San Francisco-Oakland-San Jose as determined by the United States Department of Labor. The change shall be calculated using the August to August change in the CPI, rounded to the nearest nickel. A decrease in the CPI shall not result in a decrease in the minimum wage.
The minimum wage was increased effective January 1, 2021, from $15.00 to $15.25 per hour (1.6% rounded to nearest nickel). Based on the CPI for the San Francisco Area the increase from August 2020 to August 2021 was 3.7%. Rounded to the nearest nickel, the minimum wage has been set to $15.80 per hour effective January 2022.
In July 2021 all City employment classifications received a 3% cost-of-living adjustment, therefore nearly all classifications have a wage range that exceeds the 2022 local minimum wage. However, five classifications currently have a wage range starting at $15.69 per hour, and require a $0.16 adjustment to reach the minimum wage. The adjusted classifications include Recreation Leader I, Recreation Instructor, Library Page, and two broad-range categories, miscellaneous hourly and consultant.
FISCAL IMPACT
This wage adjustment will have a de minimis fiscal impact due to the small increment and number of employees within the affected wage range. The cost of the adjustment is anticipated to be less than five hundred dollars ($500) for fiscal year 2021-2022. No additional appropriations are required to accommodate this adjustment.
RELATIONSHIP TO STRATEGIC PLAN
Amendments to the City’s salary schedule supports the City Council’s strategic priority of Workforce Development, by ensuring a competitive compensation program to attract and retain a high performing workforce. Further, it serves as a commitment by the City Council to their citywide efforts to help working households achieve economic security and acknowledging the higher relative cost of living on the Peninsula.
CONCLUSION
It is recommended that the City Council adopt a resolution to amend the Salary Schedule for the City of South San Francisco effective January 1, 2022, in compliance with South San Francisco Municipal Code Section 8.71.030 Minimum Wage.