HomeMy WebLinkAboutAgenda Bill 4A 04/19/2010<S p,._L UfL,~
~ "~
4
I85`~
~~•evic~vltevw# 4.,4
DATE: April 19; .2010
TO: Honorable Mayor and Members of the City Council
FROM: John C. Brown, City Manager
SUBJECT: Setting the City of Petaluma. Living., Wage Rate at $12.46 Per Hour With Employer
Contribution. Toward Medical Benefits. and $13..99 Per Hour Without Employer
Contribution. Toward Medical Benefits
RECOMMENDATION: .It is .recommended the City Council. adopt -the attached resolution
"Setting the City ofPetaluma Living Wage Rate. at $12.46 Per Hour With .Employer Contribution
Toward Medical. Benefits and $1.3.99 Per Hour Without:Employer Contribution Toward Medical
Benefits".
BACKGROUND: The, City of Petaluma approved and adopted a Living Wage Ordinance
effective December 20, 200:6. At that`time, the Ordinance established an initial hourly wage at
$11.70 per hour with employer contribution of at leash $1.50 per hour per employee toward
medical benefits and $13.20 per.'hour without said contribution.
The Living Wage Ordinance; Petaluma; Municipal Code Chapter 8.36; Section 836.06O,D,
provides thatthe initial rate "be increased annually on July 1, in accordance with any increase due
to a cost of Living adjustment for City employees,, equal to the average cost of living adjustment
(excluding equity pay increases) for all 'City non-safety,. non-management employees as of the
date of the .roost. recent adjustment of the pay ofnon-safety, non-management employees,. but no
more than the most ,recent December to December Consumer. Price `Index :for San Francisco-
Oakland-.San Jose (CPI-U); published by the Bureau of Labor Statistics. The City Council. may
review the impact of the cost of-living.adjustment (COLA) on an :annual-basis to assess any
poteritia'l adverse, impact and may modify or suspend adoption. of'a COLA otherwise allowed by
this subsection:" Pursuantto the Living Wage Ordinance; any adjustment would be effective on
July 1.
,~~J~oS~i
Agenda Review: De~t:~t7treetor~~City Attorney Finance DirectorCity Mana
The Living Wage Ordinance provides for an annual increase based upon a cost of living
adjustment but, for no more than the most recent December o December Consumer Price Index
(CPI) for SanFraneisco-Oakland-San Jose. The City ofPetaluma's current Living Wage is
$12.14 .per hour with employer contribution toward rnedicaT benefits arid $13.64 per hour without
employer contribution toward medical benefits.
DISCUSSION: The CPI for- the San Francisco-Oakland-San Jose (CPI-U) area increased by
2.6% between December 20.08 and December 2009. At its April 5, 201.0 meeting, the City
Council considered increasing the Tiving wage, and directed staff to prepare a resolution adjusting
the current 1`ving wage by 2.6%. The attached resolution has been prepared for the Council's
approval, to reflect'that direction.
FINANCIAL IMPACT:. The City of Petaluma has positions subject to the Living Wage.
Increasing the Living Wage by2.6%, effective July 1; 2010, will result in a~total estimated
increased cost to the City of $10,038.00. The estimated cost of adjusting the hourly wage. of City
of Petaluma living wage positions is $4,159.00 and $5,879.00 for those Recreation Department
positions benchmarked to the City's living wage positions.
ATTACHMENTS
1. Resolution Setting the. City .of Petaluma Living Wage Rate at $12.4b Per Hour With Employer
Contribution Toward Medical Benefits and $13.99 Per Hour Without Employer Contribution
Toward Medical Benefits
Resolution No. 2010-XXX N.C.S.
of the City of Petaluma, California
SETTING THE CITY OF PETAI,UIVIA LIVING WAGE RATE
AT $12.46 PER DOUR WI~'H EIVIPLOI'ER CONTRIBUTION
TOWARD 1VIEDICAL BENEFITS AND $13:99 PER.I~OUR
WITHOU'T' EIVIPLOYER .CONTRIBUTION TOWARD 1VIEDICAL. BENEFITS
WHEREAS, the City Council of the City of Petaluma established a.Living Wage
Required for Specified Ci"ty-Funded Contracts and City Employees, by adopting Ordinance No.
2256 N.C.S., effective December 20, 2006; ("the Living Wage Ordinance"); and,
WHEREAS, the Living Wage Ordinance was later codified at Chapter 8.36 of the City
of Petaluma Municipal Code; and,
WHEREAS, Petaluma Municipal Code Chapter 8.36, Section 8.36.060.D, provides
that the Living Wage rate shall be increased annually on July 1, in accordance with any increase
due to a cost of living adjustment for City employees, but no more than the most recent
December to December Consumer Price Index for San Francisco-Oakland-San Jose (CPI-U);
and,
WHEREAS, Section 8.36:060.D further provides that the City Council may review the
impact of the cost of living adjustment ("COLA") on an annual basis to assess any potential
adverse impact and may modify or suspend adoption of a COLA .otherwise allowed by the
subsection; and,
WHEREAS, the initial Living Wage rate set by the Living Wage Ordinance was $11.70
per hour with an employer contribution of at least $:1.50 per hour per employee toward medical
benefits and $1.3.20 per hour without said contribution; and,
WHEREAS, the current Living Wage pursuant to Chapter 8.36 is $12.14 per hour if a
contribution of at least $1.50 per hour per employee is paid bythe employer toward the cost of
medical benefits; and $13.64 per hour without said contribution toward medical benefits; and,
Resolution No. 2010-XXX N.C.S. Page
WHEREAS, the December to December Consumer Price Index. for San Francisco-
Oakland-San Jose (CPI-U) indicates an overall increase of 2.6 percent in Bay Area consumer
prices from December 2008 to December 2009.
NOW, THEREFORE, BE IT RESOLVED that pursuant to .Petaluma Municipal Code
Section 8.36.060.D, the City Council hereby adopts a 2.6 percent COLA adjustment to the
Living Wage and effective July 1, 20..10 the Living Wage is $12.46 per hour with an employer
contribution toward medical benefits. of at least $1.50 per hour per employee; and $13.99 per
hour without said contribution.
Resolution No. 2010-XXX N.C.S. Page .~'