Living Wage prescription
http://www.ci.santa-cruz.ca.us/cc/archives/03/2-11meeting/2-11rpt/fn736.htm
CITY COUNCIL
AGENDA REPORT
DATE:
January 28, 2002
AGENDA OF:
February 11, 2003
DEPARTMENT:
Finance/Purchasing
SUBJECT:
Living Wage Rate Annual Prescription
RECOMMENDATION: That the City Council adopt a resolution upwardly indexing the prescribed minimum living wage rate by 1.3%, the amount which corresponds to the cost of living increase as measured by the San Francisco-Oakland-San Jose area Consumer Price Index (CPI), for the period ending October 31, 2002, and to become effective July 1, 2003.
BACKGROUND: On October 24, 2000, Council adopted Ordinance No. 2000-25 pertaining to the payment of a living wage, which designates that the City Council consider a recommendation regarding adjustments to minimum wage rates and benefits no later than the first regularly scheduled meeting of the City Council in February of each year.
DISCUSSION: Municipal Code Section 5.10.040 requires the City Council to upwardly index the wage rate each year by an amount which corresponds to the cost of living increase as measured by the San Francisco-Oakland-San Jose area CPI for urban wage earners and clerical workers for the twelve-month period ending on October 31. This report for the period ending October 31, 2002, reflects an increase of 1.3%. Staff recommends that this percentage be used to upwardly index the current living wage rate, effective July 1, 2003. Using this percentage to calculate the new minimum living wages will result in the following:
1. The minimum living wage to be paid to employees when said employees receive the minimum vacation leave, sick leave, and health insurance benefits prescribed in this resolution shall be $11.65 per hour.
2. The minimum living wage to be provided to employees where the employees do not receive the minimum vacation leave, sick leave, and health insurance benefits prescribed in this resolution shall be $12.71 per hour.
3. The minimum vacation leave, sick leave, and health insurance benefits which must be provided to employees in order to qualify for the $11.65 per hour minimum living wage prescribed in this resolution shall be as follows:
A. Compensated sick leave/vacation leave a combined 12 days annually for full-time employees and prorated for employees working less than full time.
B. Uncompensated sick leave/vacation leave a combined 10 days annually for full-time employees and prorated for employees working less than full time.
C. Health insurance benefits the payment of at least $1.06 per hour towards the payment for a heath insurance policy for the employee.
The Living Wage Advisory Committee has reviewed and endorses this recommendation with these additional comments:
The Living Wage Advisory Committee thanks Councilmembers for their continued support of a living wage. The Committee acknowledges that current economic conditions are not conducive to an increase beyond the statutory minimum, and recognizes that even with this recommended increase, the new wage rate will be below what is realistically needed to support a family in the City of Santa Cruz. We hope that a more substantial increase can be achieved under better economic conditions.
FISCAL IMPACT: Unknown at this time. However, the fiscal impact of current and past application of the minimum living wage to service contracts has been minimal.
Submitted by:
David P. Culver
Finance Director
Approved by:
Richard C. Wilson
City Manager
Attachment: Resolution
FN736RPT LW Annual Prescription 03
