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a minimum differential of ten percent (10%) above subordinate classifications. In <br />October, employees represented by the Redwood City Management Employees <br />Association received a three percent (3%) cost-of-living adjustment, and employees <br />represented by the Chief Officers Association received a two percent (2%) cost-of-living <br />adjustment. These increases impacted the following classifications, which require <br />adjustments to maintain a 10% differential above their subordinates: <br /> <br />Classification Title New Minimum <br />Salary (monthly) <br />New Maximum <br />Salary (monthly) <br />Increase <br />Community Development Manager – <br />Engineering <br /> <br />$12,432 <br /> <br />$16,784 <br /> <br />2% <br />Fire Chief $17,059 $21,324 1% <br />Information Technology Manager $11,298 $15,253 2% <br /> <br />These adjustments will be applied to the salary range only, and will not provide any <br />automatic adjustments to individual salaries. Increases to individual salaries are <br />approved by the City Manager on an annual basis and are based on merit. <br /> <br />Minimum Wage Adjustment <br />Effective January 1, 2018, the State minimum wage increased from $10.50 per hour to <br />$11.00 per hour, requiring an adjustment to the minimum of the range for certain hourly <br />and temporary positions. Currently, all employees in these positions earn wages at or <br />above the new minimum wage; therefore, no individual wage adjustments are <br />necessary. <br /> <br />ALTERNATIVES <br />The minimum wage adjustments are required by State law, and the adjustments for <br />executive management staff are indicated by the Executive Management Benefits <br />Resolution previously approved by Council. Therefore, there are no alternative actions <br />on these items. <br /> <br />Council may direct staff to negotiate alternative changes to the classification and salary <br />plan for classifications in the Water Resources Section, or direct staff to continue with <br />the current classification and salary plan for these positions. <br /> <br />FISCAL IMPACT <br />There is no fiscal impact associated with the changes to the minimum wage. Estimated <br />costs for the Water Resources Section reorganization were included in the Fiscal Year <br />2017-2018 budget. The total cost of salary and benefits of the final proposal is <br />approximately $12,500 above budgeted amounts. This additional amount will be <br />8.A. - Page 3