HomeMy WebLinkAbout5B-LivingWageCITY OF PETALUMA, CALIFORNIA
AGENDA BILL
Agenda Title:
W
February 23, 2009
Meeting Date: February 23, 2009
RESOLUTION SETTING THE CITY OF PETALUMA LIVING WAGE RATE
AT $12.14 PER HOUR WITH EMPLOYER CONTRIBUTION TOWARD
MEDICAL BENEFITS AND $13.64 PER HOUR WITHOUT EMPLOYER Meeting Time: ❑ 3:00 PM
CONTRIBUTION TOWARD MEDICAL BENEFITS ® 7:00 PM
Category: ❑ Presentation ❑ Consent Calendar ❑ Public Hearing ❑ Unfinished Business M New Business
Department: Director: Contact Person: Phone Number:
City Manager John Brown John Brown/ (707) 778-4345
Pamala Robbins
Cost of Proposal: N/A Name of Fund:
Amount Budgeted: Account Number:
Recommendation: It is recommended that the City Council take the following action:
Approval of the Resolution Setting the City of Petaluma Living Wage Rate for Specified City -Funded Contracts
and City Employees at $12.14 Per Hour With Employer Contribution toward Medical Benefits and $13.64 Per
Hour Without Employer Contribution Toward Medical Benefits.
Summary Statement:
The City of Petaluma Living Wage Ordinance provides for an annual cost of living adjustment in the hourly rate
paid to covered city employees and to employees under specified City -funded private contracts. If a cost of living
adjustment is indicated under the mechanism set forth in the Ordinance, the City Council may review the impact
of the cost of living adjustment on an annual basis to assess any potential adverse impact and may modify or
suspend adoption of a cost of living adjustment. Because the consumer price index used in the ordinance shows
no increase in December -to -December cost of living and given the extraordinarily difficult economic
circumstances impacting the all sectors of the economy, it is recommended that the City not adopt a cost of living
adjustment, and confirm the current hourly Living Wage rate at $12.14 per hour with employer contribution
toward medical benefits and $13.64 per hour without that contribution. This will save the City an estimated
$29,405 for 2009 for city employees subject to the Living Wage Ordinance, based on a 3.0% cost of living
increase.
Attachments to Agenda Packet Item:
Resolution Setting the City of Petaluma Living Wage Rate for Specified City -Funded Contracts and City
Employees at $12.14 Per Hour With Medical Benefits and $13.64 Per Hour Without Medical Benefits.
Reviewed by Admin. Svcs. Dir: Reviewed by City Attorney: Annroved by City Manager:
c i
Date:
Rev. # I Date Last Revved: 09 I File: #1 198352
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CITY OF PETALUMA, CALIFORNIA
FEBRUARY 23, 2009
AGENDA REPORT
FOR
RESOLUTION SETTING THE CITY OF PETALUMA LIVING WAGE RATE AT $12.14 PER HOUR
WITH EMPLOYER CONTRIBUTION TOWARD MEDICAL BENEFITS AND $13.64 PER HOUR
WITHOUT EMPLOYER CONTRIBUTION TOWARD MEDICAL BENEFITS
1. RECOMMENDATION:
Approval of the Resolution Setting the City of Petaluma Living Wage Rate at $12.14 Per Hour With
Employer Contribution Toward Medical Benefits and $13.64 Per Hour Without Employer
Contribution Toward Medical Benefits.
2. BACKGROUND:
The Bureau of Labor Statistics indicates that the December 2008 All Items Consumer Price Index in
the San Francisco -Oakland -San Jose area decreased 3.2 percent over the past two months.
Additionally, the December to December Consumer Price Index for San Francisco -Oakland -San
Jose (CIP-U) indicates that over the past year, Bay Area consumer prices showed no increase.
The City of Petaluma approved and adopted a Living Wage Ordinance effective December 20, 2006.
At that time the Ordinance established an initial hourly wage at $11.70 per hour with employer
contribution of at least $1.50 per hour per employee toward medical benefits and $13.20 per hour
without said contribution.
The Living Wage Ordinance requires that the 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 most recent adjustment of the pay of non -safety, non-
management employees, but no more than the most recent December to December Consumer Price
Index for San Francisco -Oakland -San Jose (CIP-U), published by the Bureau of Labor Statistics.
The City Council may review the impact of the COLA on an annual basis to assess any potential
adverse impact and may modify or suspend adoption of a COLA otherwise allowed by this
subsection." Petaluma Municipal Code Chapter 836, Section 8.36.060.D.
The City of Petaluma's current Living Wage is $13.64 per hour without employer contribution
toward medical benefits. If an employer pays at least $1.50 per hour per employee toward employee
medical benefits the hourly rate is $12.14.
In 2008, the City considered a prior cost of living adjustment for covered city employees in the
month of January rather than July. This was due in part because the Living Wage was implemented
in January. Following this practice, consideration of a cost of living adjustment for the Living Wage
would occur in January 2009. Because the December to December Consumer Price Index for San
Francisco -Oakland -San Jose (CIP-U), published by the Bureau of Labor Statistics shows that there
has been no increase in consumer prices between December 2007 and December 2008 and because
of the extraordinary difficult economic circumstances facing all sectors of the economy, it is
recomrmended that no cost of living increase be approved for the current Living Wage, and that the
Living Wage be maintained at its current level of $12.14 per hour with an employer contribution of
at least $1.50 per hour per employee toward medical benefits and $13.64 per hour without said
employer contribution toward medical benefits.
3. FINANCIAL IMPACTS:
Estimated savings to the City of Petaluma in 2009 from not implementing a cost of living increase
for city employees subject to the Living Wage is $29,405.
1198252.1
J
Resolution No. 2009 -XX N.C.S.
of the City of Petaluma, California
RESOLUTION SETTING THE CITY OF PETALUMA LIVING WAGE RATE AT
$12.14 PER HOUR WITH EMPLOYER CONTRIBUTION TOWARD MEDICAL
BENEFITS AND $13.64 PER HOUR WITHOUT EMPLOYER CONTRIBUTION
TOWARD MEDICAL BENEFITS
WHEREAS, the City Council of the City of Petaluma established a Living Wage
Required for Specified City -Funded Contracts and City Employees, by adopting Ordinance
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 increase 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 (CIP-U), and that the City
Council may review the impact of the COLA on an annual basis to assess any potential adverse
impact and may modify or suspend adoption of a COLA otherwise allowed by this 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 $13.20 per hour without said contribution; and
WHEREAS, the present 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 by the employer toward the cost of
medical benefits; and $13.64 per hour without said contribution toward medical benefits; and
WHEREAS, The Bureau of Labor Statistics indicates that the December 2008 All Items
Consumer Price Index in the San Francisco -Oakland -San Jose area decreased 3.2 percent over
the past two months; and
WHEREAS, the December to December Consumer Price Index for San Francisco-
Oaldand-San Jose (CIP-U) shows no increase in Bay Area consumer prices; from December
2007 to December 2008; and
WHEREAS, the City, State, and nation are in the midst of extraordinary difficult
economic circumstances; and,
NOW, THEREFORE, BE IT RESOLVED that the City Council declines to adopt a
cost of living increase in the City of Petaluma Living Wage rate and sets the Living Wage rate at
$12.14 per hour with an employer contribution toward medical benefits of at least $1.50 per hour
per employee; and $13.64 per hour without said contribution.
1198209.1