HomeMy WebLinkAboutStaff Report 2.E 06/20/2011A Item# 2.E
DATE: June 20, 2011
TO: Honorable Mayor and Members of the City Council,
FROM: John C. Brown, City Manager
SUBJECT: Resolution Setting the ` e Rate at $12.65 Per Hour 11 City of Petaluma Living Wag
With Employer. Contribution Toward Medical Benefits and $14:20 Per Hour
Without Employer Contribution Toward Medical Benefits
RECOMMENDAT:1 0N
It is recommended the City Council adopt the attached Resolution Setting the City of Petaluma
Living a e Rate at
g r With an Employer Contribution Toward Medical Benefits
g - $12.65' Per Hour
and $14.20 Per Hour Without an
Employer Contribution Toward Medical Benefits, for the 2011 -
12Fiscal Year. '
` BACKGR®UND
The g g wa e of $ 1 70 adop e hour with i� employer tuber 20, 2006. The
pp
Ordinan e> est blishhed in t al
g p p oyes contribution of at
least $1:50 per h6ur'per employee toward medical benefits,. and $,13.20 per hour without
contribution , toward 'benefits.
Petaluma Municipal Code 'Chapter 8 X3'6 (the Living Wage Ordinance); °at Section 836.060(D)
provides 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 m J p y . Y non-management employees, but
no more than s re en
Erancis c t December to December Co
the most re
cent o t
nsumer Price Index for San
' r ' o- Oakland -.Sari Jose (CPI -U), published by the Bureau of Labor Statistics ".
The Ord
most re e t pe e o ber to December Price
ba o f living adjustment but, for no
more than Index (CPI) for San
Francisco- Oaklan&Sran Jose The City of Petalurna's current Living Wage is $12.46 per hour
with employer contribution toward medical benefits and $13.99 per hour without employer
contribuiionf toward medical benefits.
Agenda Review:
City Attorney Finance Director City Manager
Last year, based on the December to December; increase in the Consumer Price Index for the San
Ftanciscd- Oakland -San Jose (CPI -U) area between 2008 and 20,09,, the City Council adopted
Resolution 20:10 -057 which increased the Living Wage rate by 2.6 percent effective July 1, 2010.
- DISCUSSION:
The December 2009 to December 2010 change g m the �CP:I - for the San_Francisco Oakland - San
Jose area is a ;1.5 percent increas'e� At its June 6,11 2011 meeting,,the City Council considered
increasing the living= wage, and directed' staff to prepare axe-solution adjusting. the current living
wage by 1.5 'per6ent. The attached' resolution has been prepared for the Council's approval, to
reflect that direction.
FINANCIAL IMPACTS
The City of Petaluma has positions subject to-the LivingWage Increasing the Living Wage by
1.5 percent, effective July 1, 201 I,Vill result in a total estimated.increased cost to the City in FY
2011 -12 of $5;361. The General Fund 's share' of this cost is $4,623: The estimated cost of
adjusting_ the hourly wage: of Crty.of Petaluma, iving wage positions is $1,822 and $3,539 for
those Recreation "Dep ' ' ` d
positionsbenchmatked to the City's living wage positions.
ATTACHMENTS
1. Resolution
i
ATTACHMENT 1
i
Resolution No. 2011- N. C. S.
Of the City of Petaluma, California
SETTING THE CITY OF PETALUMA LIVING WAGE RATE
AT $112.65- .
PER HOUR'WITH AN EMPLOYER CONTRIBUTION
TOWARD M EDICAL BENEFITS AND $14.20 PER FOUR
WITHOUT AN, EMPLOYER CONTRIBUTION TOWARD MEDICAL
BENEFITS; ^ , FOR THE 2011 -i2 FISCAL YEAR
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 No. ' 2256 N.C.S.,' effective December 20,, 2006; ( "the Living Wage
Ordinance"); and,
WHEREAS, the Living, Wage Ordinance is codified at Chapter 8.36 of the City
of Petaluma Municipal Code; and,
WHEREAS, Municipal Code 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 8.36:060.1) 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,,
g g 2006 was $1 L70 per hour with . an
. WHEREAS, the initial Liven Wage rate in
emp y ibution of at° lea fits
and $13.20
per hour without sai st $1 5 0 per hour per employee toward medical benefits .
to er contr'
p . 'd contribution; and,
WHEREAS, the current Living Wage pursuant' to Chapter 8.36 is $12.46 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' $13.99 per hour without said contribution toward
medical benefits; and,
3
WHEREAS, the December to December Consumer Price Index for San
; Francisco= Oakland -San Jose (CPI -U) indicates an overall increase of 1.5 percent in Bay
Area consumer prices from December 2009 to December 2010.
NOW, THEREFORE, BE IT RESOLVED that pursuant to Petaluma Municipal
Code Section 8.36.060.D, the City Council adopts a 1.5 percent COLA adjustment to the
Living Wage and. effective July 1, 2011 the Living Wage is $12.65 per hour with an
employer contribution toward medical benefits of at least $1.50 per hour per employee;
and $14.20 per hour without said contribution.
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