AgdaPkt 2018-04-09 Joint SA PFA - Laserfiche WebLink

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The draft ordinance includes language that allows for all or any portion of the minimum wage requirements to be waived in a bona fide collective bargaining agreement if such a waiver is explicitly set forth in an agreement. The San Mateo County Central Labor Council has requested language in the ordinance that would create an exception for “property services workers” such as janitors, landscapers, and security guards. Staff recommends inclusion of this exception to keep this provision uniform with the two other cities in San Mateo County who have adopted local minimum wage ordinances (Belmont and San Mateo). Exemptions The draft ordinance includes an exemption for Federal, State, and County agencies, including school districts. The City cannot impose a minimum wage on these government entities. Each has their own jurisdiction and is not subject to the City’s oversight when it relates to their government function. Government agencies can subject themselves to the City’s ordinance on a voluntary basis. Estimated City Impacts A preliminary review of City employees indicates that the City has 226 hourly employees, representing a full-time employee equivalent (FTE) of 62.25 FTE, which would be affected by an increase in the minimum wage to $15.00 per hour. These employees are concentrated in classifications in three departments: Administrative Services (.25 FTEs), Library (17 FTEs), and Parks, Recreation and Community Services (45 FTEs). A large number of the affected positions in Parks, Recreation and Community Services are in the Youth and Teen Services program. While most of the work is seasonal, some positions work part-time on a year-round basis. An increase in City wages to $15.00 per hour, without any phasing, would cost approximately $122,000. However, the total fiscal impact is higher as wage increases for these classifications would prompt changes to the City’s hourly wage structure beyond employees at the minimum wage level. Staff estimates that the total adjustment of wage ranges for the positions that are directly and indirectly impacted by the minimum wage increase would cost approximately $500,000; this cost would be phased in over a two- year period. Approximately half this cost is anticipated in the preliminary Five Year General Fund Forecast presented February 26, 2018. Should the City Council increase the City’s minimum wage, staff will conduct a comprehensive review and redesign of hourly compensation. An additional fiscal impact is the dedication of staff and fiscal resources towards the ongoing implementation of the ordinance, which includes enforcement costs to track and ensure compliance with a new City minimum wage ordinance. Typical duties of enforcement include community outreach, compliance review, and managing a Attachment 26.3.A. - Page 22