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HomeMy WebLinkAboutStaff Report 5.B Late Document 1 06/06/2011I i Y ill„ i �1 From: �11Crump, Katie ull I . Sent: Monday, ,June 06, 2011 8:37 AM' To: - City Clerk Subject: FW Annual COLA for City`Living Wage Rate Attachments: COLA City of Petaluma Living Wage.doc Late,document - - - -- Original Message - - - -- From: martin bennett fmailto:mbennett(@vom.coml Sent: Thursday, June 02, 2011 3:46 PM To: councilman. albertson(@gmail.com councilmemberkearney( Mme .com mike4pet@aol.com mthealy@sbcglobal.net t �� eresa4pe.taluma(@6omcast,.net tiff(@designmotf.com tiff(@tiffan.yrenee.com Cc: Brown, John; Crump., Katie:; edanly(@meyersnave.com Subject: Annual COLA for City Living Wage Rate LIVING WAGE COALITION OF SONOMA COUNTY June 2, 2011 To: Petaluma City Council From: Marty Bennett, Co- chair, Living `.Wage Coalition of Sonoma County City staff recently recommended that there should be no cost of living adjustment to the city living wage rate (currently $12'..46 with medical benefits and, $13.99 without) for the upcoming fiscal year. I am writing on behalf of the Living Wage Coalition of Sonoma County to urge that the council not approve the resolution proposed by city staff. We recommend that the council'approve the 1.5% cost of living adjustment (COLA) to the living wage rate as mandated by 836.060.D of the Living Wage Ordinance (LWO).- There are four compelling reasons for this: 1) All cities should strive to become model employers, and implementation of a LWO is one important step towards this goal. Currently, the California Budget Project calculates that of 'a living wage for Sonoma County in 2010 is $19.11 for each of two parents working full -time to support two children: By'not approving the annual-COLA for the living wage rate, employees of the city and city contractors covered by e' "LWOwil.l not make progress towards a self - sufficiency wage that actually reflects the cost of living in the City of Petaluma-. 2) Section 9 -P - -1 of.the'General Plan states that the city should encourage employers that "pay living wages commensurate with the cost of living" to locate in Petaluma. Further, Section 9 -P -10 of .the General Plan.states that the city will " "encourage' "economic development j opportunities c g s y by providing incentives for fir w enhance firms [to locatein�Petaluma] that r t paywagesthatenableworkersto lve.in Petaluma." By freezing the city living wage..rate fo,r the next year the city - council will move away from compliance with the spirit and intent of the General Plan. 1 3 One of the ,ma 'or problems ) p blems with the California minimum wage,is that it is not adjusted for inflation. According to'the California Budget Project the purchasing power of the California state minimum - wage (currentl,y $.8.00 an hour) has declined approximately 30% since its high point in 1968. Most of the 140 living wage laws implemented by cities and counties require an annual COLA. The states of Washingo wa Ore ining -the COLA for gon., Florida, and V ermont also index their state er minimum wa e rates to inflation. B mainta e.cty living wage rate, the City of Petaluma is sending a message to:Sacramento.'that' the statewide minimum wage rate should be indexed to inflation. 4) The cost to the City for the.COLA is very modest -- about $6 „782 from the City General Fund. If I can provide more information please do not hesitate to contact me at 939 -8933 and mbennett(@vom.com Dept. of Social Science Santa Rosa Junior College 1501 Mendocino Ave. Santa Rosa, Ca. 95401 (707) 527 -4873 Office'��� (707) 522 -2755 Fax (707) 939 -8933 Home Office'�'”' "' 2 L.IVtN`G ° AGE ,. �OAL OF SONO.MIA COUNTY P.O. Box 427, Santa Rosa, CA 95402 ,„ (707) 623 -7395 livingwagesoco @gmaiL com http./ /www.livingwagesonoma.org June 2, 2011 To: Petaluma City Council From: Marty Bennett, Co -chair Living Wage Coal tio'6'o&Sonoma County City staff recently recommended that there should be no cost of living adjustment to the city living wage rate (currently $12.46 "with medical benefits and $13.99 without) for the upcoming fiscal year. I am writing on behalf of the Living Wage Coalition of Sonoma County to urge that the council not approve the resolution proposed by city staff. We recommend that the council approve 1.5 % cost of living °adjustmeent' (COLA) to the living wage rate as mandated by Section 836.060.0 of the Living Wage Ordinance (LWO). There are four compelling reasons for this: 1) All cities should strive to become model employers and implementation of a LWO is one important step towards this Wage goal. Currently, the California . . Budget Project calculates that of a living ge for Sonoma Count y m 2010 is $19.11 for each of.-two parents working ifull-tirme to support two children. I; By not approving the annual COLA for the living wage rate, employees of the city and city contractors covered by the LWO'will not make progress towards a self- sufficiency wage that actually reflects the cost of living in the City of Petaluma. 2) Section ^9 P -1 of the General Plan states that the city should encourage employers that "pay living wages commensurate with the cost of living" to locate in Petaluma. Further, Section 9- P -10,of the Generai Plan states that the city will "encourage economic development thati Will enhance job opportunities for existing city residents by providing incentives for firms [to locate in Petaluma] that pay wages that enable to -live in Petaluma. By freezing the city living wage rate for th'e' next. the city council will move away from compliance with the spirit and'intent of the General Plan. All e. 3) One of the major problems with the California -ih inimum,wage is that it is not adjusted for ,inflation. According to,,the ti Cali r forni ,a,I,Budget,,Project, the purchasing powe' g ( rrently $8:00 y 0 wage cu an hour) has declined approxim'a °4lu r 6f , the state minimum tel., 30 /o since its ' point in 1968. Most ed b Florid unties require an of the 140 living ",wage. lawsl,implement y cities and.co fie sta I a g to Ore , Hb i annual COLA T tes of W shin ton, o, , g " a, a Vermont also index their tate rii nimum wage rd b in f a y Maintaining the COLA for the city living wage rate, the City of Petaluma is- sending a messa ` minimum wage rate should be indexed to inflation. e. that "the statewide .I 4) The cost to the, City for the COLA is very modest -- about $6,782 from the City General Fund. If I can provide more information please do not hesitate to contact me at 939 -8933 and mbennett(a-vom.com