REPORT TO COUNCIL
SUBJECT
Title
Adopt a Resolution Amending the City's Salary Resolution to Update Pay Rates for Casual/Temporary Classifications to Reflect the January 1, 2026 City of Sunnyvale Minimum Wage of $19.50 per Hour
Report
BACKGROUND
This report recommends amending the Schedule of Pay in the City’s Salary Resolution to update the pay rates for applicable classifications to reflect the 2026 City of Sunnyvale minimum wage, as required by Sunnyvale Municipal Code section 3.80.040.
EXISTING POLICY
Council Policy 7.3.1 Legislative Management - Goals and Policies - Goal 7.3D: Maintain a quality workforce, consistent with state and federal laws, City Charter, and adopted policies in order to assure that City services are provided in an effective, efficient, and high-quality manner.
Council Policy 7.3.1 Legislative Management - Goals and Policies - Policy 7.3D.1: Maintain a recruitment and selection process that ensures a highly competent workforce.
Sunnyvale Municipal Code Section 3.80.040 (Minimum Wage) requires that the City’s minimum wage be adjusted by the “Bay Area Consumer Price Index (Urban Wage Earners and Clerical Workers, San Francisco-Oakland-Hayward, CA for All Items) or its successor index as published by the U.S. Department of Labor or its successor agency, with the amount of the minimum wage increase rounded to the nearest multiple of five cents” in August of each year and that the adjustment to the City’s minimum wage shall become effective as the new minimum wage on January 1st” of the following year.
ENVIRONMENTAL REVIEW
This action is not a “project” under the California Environmental Quality Act (“CEQA”), pursuant to CEQA Guidelines section 15378(b)(4) in that is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment, and section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
DISCUSSION
This report recommends adopting a resolution amending the City’s Schedule of Pay.
As of January 1, 2026, the City of Sunnyvale's minimum wage will increase by 2.6% using the methodology in the municipal code, from $19.00 to $19.50 per hour. Approximately 140 Casual/Temporary employees will be impacted by this change.
FISCAL IMPACT
Casual classifications are temporary, and the number of hours worked can vary. Therefore, specific departmental and funding source impacts will depend on the number of casual/temporary employees and hours worked.
The FY 2025/26 Adopted Budget includes escalation factors for casual salary increases. The planned escalation is sufficient to cover these increases, and no budget modification is required.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Adopt a Resolution amending the City's Salary Resolution to update Pay Rates for Casual/Temporary Classifications to Reflect the January 1, 2026 Sunnyvale Minimum Wage of $19.50 per hour.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
_X_ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: Kristin Armbruster, Human Resources Manager
Reviewed by: Tina Murphy, Director of Human Resources
Reviewed by: Matthew Paulin, Director of Finance
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Resolution Amending Salary Resolution and Schedule of Pay