MEETING DATE:
DECEMBER 9, 2025
SUBJECT:
Title
RESOLUTION NO. 2025-9522 - APPROVAL OF UPDATED PART-TIME CLASSIFICATION AND COMPENSATION SCHEDULE IN RESPONSE TO CALIFORNIA MINIMUM WAGE INCREASE
Body
Recommendation
Recommendation
ADOPT a resolution approving the updated Part-Time Classification and Compensation Schedule to comply with the California minimum wage increase effective January 1, 2026, and to add new classifications for engineering positions.
Body
Executive Summary
To comply with the State of California’s minimum wage increase to $16.90 per hour effective January 1, 2026, it is recommended that the City of San Marcos adjust the Part-Time Classification and Compensation Schedule accordingly. This update moves Step 1 of Grade A to the current Step 2 rate, impacting 12 part-time employees. Additionally, it is recommended that the City addthree engineering classifications-Associate Engineer, Associate Civil Engineer, and Senior Civil Engineer-to expand its ability to attract qualified applicants. Several classifications that are no longer in use have also been removed from the recommended schedule. A full compensation review of part-time classifications is planned for the upcoming fiscal year, with recommendations to be brought forward for Council consideration and potential implementation on July 1, 2026.
Discussion
Effective January 1, 2026, the California minimum wage will increase from $16.50 to $16.90 per hour. The City’s current Part-Time Classification and Compensation Schedule includes Step 1 of Grade A at a rate below this threshold. To ensure compliance, it is recommended that the City remove Step 1 from Grade A and shift the current Step 2 rate as the new minimum. This affects 12 part-time employees who are currently placed at that step.
The updated schedule also includes the addition of three classifications-Associate Engineer, Associate Civil Engineer, and Senior Civil Engineer-which mirror existing full-time titles. These roles provide flexibility to bring on part-time staff at different licensure or experience levels to support engineering project work. This update allows the City to consider strong candidates who may not be available full-time but bring specialized expertise that can benefit operations. Because these classifications are modeled after full-time roles, they have been added to the part-time schedule with 8 salary steps, rather than the 10-step structure used for the other part-time positions. This variation will be reviewed as part of the upcoming compensation study to evaluate overall alignment and ensure internal consistency across job families.
Several previously listed classifications that are no longer in use have been removed from the recommended schedule as part of this cleanup.
Looking ahead, the City will be conducting a broader part-time compensation study to evaluate the entire structure. This will include updated benchmarking and possible restructuring. Recommendations will be brought to City Council in the next fiscal year for changes effective July 1, 2026.
Environmental Review
The proposed action does not constitute a “project” as defined under Section 15378 of the California Environmental Quality Act Guidelines (California Code of Regulations, Title 14, Division 6, Chapter 3, Sections 15000 - 15387), and is therefore not subject to environmental review pursuant to Guidelines Section 15060(c)(3).
Fiscal Impact
The estimated fiscal impact of this update is approximately $6,000 annually to bring 12 part-time employees into compliance with the new minimum wage. This cost can be absorbed within the existing approved Fiscal Year 2025-26 budget.
Attachment(s)
Resolution - Adopting Part-Time Classification and Compensation Schedule
Part-Time Classification and Compensation Schedule, effective 12/20/2025
Prepared by: Stacy Armacost, HR/Risk Manager
Submitted by: Stacy Armacost, HR/Risk Manager
Reviewed by: Janelle Laughlin, Administrative Services Director
Approved by: Michelle Bender, City Manager