CITY COUNCIL STAFF REPORT
MEETING DATE: August 5, 2015
PREPARED BY: Michelle Katsuyoshi, Human Resources Manager and Leslie Jensen, Deputy City Attorney
APPROVED BY: City Manager
Title
CONSIDERATION OF A CITY-WIDE MINIMUM WAGE COMMUNITY ENGAGEMENT PROCESS
END
RECOMMENDATION(S)
RECOMMENDATION
Direct staff to initiate a city-wide minimum wage engagement process.
BODY
COUNCIL PRIORITIES, GOALS & STRATEGIES:
Ongoing Priorities
Supporting youth
Preserving and cultivating public trust
Fostering Positive Organizational Culture
2015 Focus Areas
Community Engagement Effectiveness
REPORT NARRATIVE:
On June 3, 2015, Council directed staff to prepare a resolution tying the City's minimum wage to the State's minimum wage plus CPI with the added amount to catch up, by January of 2017, with the San Jose's increase in minimum wage plus CPI. Additionally, Council was interested in the "Cities Association Subcommittee on Minimum Wage Report/Recommendation" (the "Report") which was released on June 7, 2015.
The Report looked at Santa Clara County municipalities' recent efforts with regard to local minimum wage ordinances and recommends following the goals of the cities of Sunnyvale and Mountain View as both cities' have adopted ordinances which will increase the minimum wage to $15.00 in 2018 with a CPI increase on July 1st of each following year.
At this time, staff feels it is most prudent to wait with a resolution until we conduct a city-wide community engagement effort. The results of the outreach will help the Council assess whether a resolution and/or ordinance is supported by the community and local businesses. Staff recommends public outreach activities to include, but not limited to, the following: community focus groups, community survey, social media, the City's website, email, reaching out to the Chamber of Commerce, Downtown Association, and local businesses. Following is a recommended timeline for community outreach:
|
Community Outreach/Activity |
Month |
|
Community Survey |
August |
|
Focus Groups |
September |
|
Return to Council with Report |
October/November |
Staff has also started to explore a city-wide minimum wage compliance option, which could include an in-house, outsourcing, or a hybrid model. Currently, the City of San Jose is the only jurisdiction with an in-house compliance division, the Office of Equality Assurance ("OEA"). The cities of Mountain View and Sunnyvale are contracting with the OEA.
COMMUNITY ENGAGEMENT: Involve
ALTERNATIVE ACTIONS:
The Council could forego the community engagement process and direct staff to bring forward a resolution and ordinance consistent with San Jose’s efforts or with Mountain View and Sunnyvale’s efforts.
The Council could decide not to discuss or pursue a city-wide minimum wage at this time.
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
On October 15, 2014, Council had a discussion on the California minimum wage and asked staff to study the possibility of tying the minimum wage to the CPI inflation.
On June 3, 2015, staff requested that Council provide direction on initiating a public process for considering a Morgan Hill minimum wage and Council directed staff to prepare a resolution tying the City's minimum wage to the State's minimum wage plus CPI with the added amount to catch up, by January of 2017, with the City of San Jose's increase in minimum wage plus the CPI.
FISCAL AND RESOURCE IMPACT:
If Council decides to implement a community engagement process, staff resources from the City Manager’s Office, City Attorney’s Office, and Community Development Department will be required.
CEQA (California Environmental Quality Act):
Not a Project
LINKS/ATTACHMENTS:
Cities Association Report on the Minimum Wage from June 7, 2015
Bay Area Minimum Wage Chart