1997-0306_ ALL CITY MANAGEMENT SERVICES, INC._Letter from All City Management ALL CITY MANAGEMENT SERVICES, INC.
March 6, 1997
Lieutenant Paul Sullivan
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Dear Lieutenant Sullivan:
We have reached the time of year when many agencies are formulating their budgets for the coming
fiscal year. Unfortunately, recent changes in California's minimum wage laws are having direct and
indirect impact on the wages of our School Crossing Guards and consequently our billing rates.
Federal and State Laws mandate a series of progressive increases in the minimum wages (i.e. $4.75,
$5.00, $5.15, $5.75). These increases began in October of 1996 with minimum wages increasing to
$4.75 and end in March of 1998 with minimum wages leveling off at $5.75. This translates into
approximately a 35% increase in the minimum wages. Our experience has dictated that we pay at
least 20% over the minimum wage level in many areas and up to 75% over the minimum wages in
other areas,to recuit and retain a viable workforce. As such, we are faced with the unenviable task
of attempting to adjust our wages to accommodate the needs of existing and prospective School
Crossing Guards while minimizing the impact of these changes in our billing rates.
While we were able to absorb the first two increases this fiscal year without increasing your billing
rate,the pressure of the next round of increases will force us to adjust our billing rates for the coming
year. More specifically, it will be necessary to increase your hourly billing rate to $11.96 per hour
for the 1997-1998 fiscal year. This represents a 4.1%increase over last years hourly rate. I hope you
will appreciate the fact that we have absorbed the difference between the percentage of the increase
in the new wages and the percentage of the increase in our billing rate.
In spite of these changes we will maintain the consistency of our operations and the professionalism
of our workforce.
Sincerely,
Ronald G. Farwell, General Manager
All City Management Services, Inc. "The Crossing Guard Company"
Southern California Office: 1749 S. La Cienega Blvd. •Los Angeles, CA 90035 • 310-202-8284 FAX 310-202-8325
Northern California Office: 6500 Dublin Blvd., Ste. 216 • Dublin, CA 94568 • 800-540-9290 FAX 510-803-6992