Loading...
HomeMy WebLinkAbout12-17-07_Acknowledge Receipt of the Update on Ordinanc65432_15 Commission Memorandum SUBJECT: Review of Ordinance 1554 - Quality Jobs and Living Wage MEETING DATE: December 17, 2007 RECOMMENDATION: Review as per Ordinance. BACKGROUND: The Living Wage Ordinance (Attachment A) was adopted on December 19, 2001, with the following stated purpose: “to prescribe a living wage for City employees and to prescribe that certain businesses receiving financial assistance from the City pay employees a minimum level of compensation”. The Ordinance requires the Commission to review the Ordinance biannually “to determine whether any modifications to this chapter are necessary or whether the chapter should be repealed.” Applicability: The following were subject to the provisions of the Living Wage Ordinance on December 19, 2001: 1. City of Bozeman employees, except those under a collective bargaining agreement and those employees who are regularly scheduled to work less than 20 hours per week; 2. Recipients of financial assistance under the Community Development Block Grant (CDBG) revolving loan program with more than 15 employees (except employees who are also owners under a Chapter S or C corporation); 3. Recipients of financial assistance under the Tax Abatement Program, except employees who are also owners under a Chapter S or C corporation; In addition any Recipients who, on or after 7/1/02, receive or received financial assistance under the CDBG revolving loan fund, and who had fewer than 15 employees, were required to pay their employees a living wage within three (3) years of receiving this financial assistance. The exception of “owners under a Chapter S or C corporation” would also apply to this category. In the case of items 2 and 3 above, “Financial Assistance” is defined as “financial support from the City of Bozeman for the following City programs”: 1. CDBG Economic Development Revolving Loan fund; and 2. Tax Incentive Program for New Industry or Expanding Industry under MCA §15-24-1401, et. seq. 143 Adjustments to figures established under the 2002 Living Wage Ordinance: 1. Wages: The Ordinance provided for the Living Wage to be adjusted on an annual basis, by an amount equal to the most recent CPI, Class B and C for the Western Region. The first adjustment was to occur January 4, 2004. 2. Benefits: A “per hour medical rate” of $1.00 per hour was established under this Ordinance. The Ordinance required annual adjustments, based on the Consumer Price Index for the Western Region for the “Medical Care” expenditure category, for the twelve month period ending in the previous November. Table 1 shows the per-hour pay and medical rates established under this Ordinance in 2002, and the current rates resulting from the required annual adjustments. TABLE 1: Living Wage Ordinance Adjustments Original Ordinance/ July 2002 Hourly Rates 2007 Adjusted Hourly Rates City of Bozeman Actual Current Rates Employee Category: With Health Benefits: Without Health Benefits With Health Benefits Without Health Benefits With Health Benefits Without Health Benefits Regular, Non union and > 20 hours per week $8.50 $9.50 $9.5015 $10.6914 $13.0972 Probationary $8.07 $8.07 $9.01 $9.01 $9.01 Seasonal $8.0618 $8.0618 $9.01 $9.01 $9.01 Temporary & short term $7.4933 $7.4933 $8.3762 $8.3762 $9.01 Per Hour Medical Rate $1.00 $1.17 $3.87 Compliance with Living Wage Ordinance Requirements: A. Hourly Pay rates: 1. City of Bozeman Compliance - The last two columns of Table 1 show the current rates paid to or on behalf of City of Bozeman employees covered by this Ordinance. Where more than 1 employee is included in a particular classification, the lowest pay rate of that classification is shown. 2. CDBG Recipients - Prospera Business Network administers these programs and has certified that recipients of these funds are complying with this Ordinance as required. (Attachment B) 3. Tax Abatement Program Recipients - Since the enactment of this Ordinance, one agency has been a recipient under the Tax Abatement program. This recipient also received CDBG funds and, as a result, has been certified by Prospera to have met the requirements. (In cases where these Recipients do not also receive CDBG funds, the City will be responsible to insure compliance with the Ordinance.) B. Health Benefits: 1. City of Bozeman Compliance - As the last row of Column 1 demonstrates, the adjusted cost per hour of health benefits under this Ordinance is $1.17 per hour. The City of Bozeman currently contributes $3.87 per hour for eligible employee health care. Therefore, the City 144 of Bozeman complies with the minimum health benefit payment required under the Ordinance. 2. CDBG and Tax Abatement Recipients Compliance - Please refer to Hourly Pay Rates, paragraphs 2 and 3, above. FISCAL EFFECTS: N/A. There would be changes required in current City of Bozeman employee compensation levels due to this Ordinance. ALTERNATIVES: As suggested by the City Commission. Respectfully submitted, Patricia Berg, Human Resources Director Chris A. Kukulski, City Manager Report compiled on December 11, 2007 Attachments: Ordinance 1554 Prospera Business Network dated September 28, 2007 145 ORDINANCE NO 1554 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN MONTANA PROVIDING THAT THE BOZEMAN MUNICIPAL CODE BE AMENDED BY ADDING A NEW CHAPTER TO BE NUMBERED CHAPTER 2 96 PROVIDING FOR A LIVING WAGE TO EMPLOYEES OF THE CITY OF BOZEMAN AND TO EMPLOYEES OF BUSINESSES AND OTHER RECIPIENTS OF FINANCIAL ASSISTANCE FROM THE CITY OF BOZEMAN BE IT ORDAINED by the City Commission of the City of Bozeman Montana Section 1 That the Bozeman Municipal Code be amended by adding a new Chapter 2 96 to read Chapter 2 96 Quality Jobs and Living Wage 2 96 010 Title and PurDose This ordinance shall be known as the City of Bozeman Quality Jobs and Living Wage Ordinance The purpose of this ordinance is to prescribe a living wage for City employees and to prescribe that businesses receiving certain financial assistance from the City pay employees a minimum level of compensation 2 96 020 Definitions As used in this chapter the following terms shall have the meanings A City means the City of Bozeman and all its agencies departments and offices B Covered regular employee shall mean any employee regularly employed for twenty 20 or more hours per week by the City or by a Recipient of financial assistance from the City Covered regular employee does not include part time seasonal temporary short term or probationary employees or an employee who is also an owner under a Chapter S or C corporation C Financial assistance means financial support from the City of Bozeman for any ofthe following City programs 1 Community Development Block Grant Economic Development Revolving Loan Fund CDBG Revolving Loan and 2 Tax Incentive Program for New Industry or Expanding Industry Under M C A 915 24 1401 etseq Tax abatement D Health benefits means an offer by the Recipient orCity to its employees to payatleast 1 00 per hour towards the provision of health care benefits for employees or for employees and their 146 udependents The health benefits described herein shall be increased by an amount equal to the increase in the ConsumerPrice Index CPI U for the Western Region for expenditure category medical care for the twelve month period ending in the previous November E Living wage means a wage calculated on an hourly basis equal to 8 50 with health benefits or 9 50without health benefits paid to a covered regular employee a wage calculated on an hourly basis equal to 8 07 with health or without health benefits paid to a probationary employee a wage calculated on an hourly basis equal to 8 0618 with health benefits or without health benefits paid to a seasonal employee a wage calculated on an hourly basis equal to 74933 with health benefits orwithout health benefits paid to a temporary employee and a wage calculated on an hourly basis equal to 7 4933 with health benefits orwithout health benefits paid to a short term employee Beginning on or after January 1 2004 the living wage described herein shall be increased at the beginning of the fiscal year of the City or Recipient or annually each year thereafter by an amount equal to the change in the most recent Consumer Price Index Class B and C for the Western Region F Part time employee means an employee regularly employed for less than twenty 20 hours per week by the the City or by a Recipient offinancial assistance from the City Part time employee does not include seasonal temporary short term or probationary employees G Probationary employee means a current regular employee designated as probationary and one who has not been employed for a period of more than six 6 months from the most recent date ofhire Neitherthis definition norpayment of probationary employees a living wage is intended to establish a shorter probationary period than established by the City or Recipient receiving financial assistance from the City nor intended to preclude the extension ofa probationary period by the City or Recipient receiving financial assistance from the City H Recipient means any person entity joint venture joint stock company partnership association club company corporation business trust governmental entity or organization I Seasonal employee means a regular employee who isdesignated as seasonal who performs duties interrupted by the seasons and who may be recalled without the loss of rights or benefits accrued during the preceding season J Short term worker means a person who a is hired by an agency for an hourly wage established by the agency 2 147 b may not work for the agency more than 90 days in a continuous 12 month period c is not eligible for regular status d may not be hired into another position by the agency without a competitive selection process and e is not eligible to earn the leave and holiday benefits or group insurance benefits K Temporary employee means an employee who 1 Is designated as a temporary employee for a definite period oftime not to exceed twelve 12 months 2 Performs temporary duties or regular duties on a temporary basis 3 Is not eligible for regular status 4 Is terminated at the end of the employment period and 5 Is not eligible to become a regular employee without a competitive selection process 2 96 030 Livina Waae for City Employees On and after July 1 2002 the City shall pay to employees a living wage except as provided by section 2 96 060 and except for anyemployee that is a member ofa bargaining unitthat has not negotiated a new collective bargaining agreement since the effective date of this Ordinance 2 96 040 Livina Waae for Employees of Recipient of Financial Assistance On and after July 1 2002 any Recipient receiving financial assistance the Tax Abatement Program shall pay its employees a living wage On or after July 1 2002 any Recipient receiving financial assistance under the CDBG Revolving Loan program with less than 15 employees shall payits employees a living wage within three 3 years of receiving financial assistance On orafter July 1 2002 any Recipient receiving financial assistance under the CDBG Revolving Loan program with 15or more employees shall pay its covered employees a living wage This section applies only to Recipients that make application and receive financial assistance after the effective date of this ordinance It does not apply to Recipients receiving financial assistance on or before the effective date of this Ordinance 3 148 2 96 050 Proof of Waaes and Benefits and Other Reauirements A Each Recipient offinancial assistance shall keep full and accurate payroll and benefits records for each covered employee The City may demand and examine and it shall be the duty ofevery recipient and agent thereof to keep and furnish to the City copies of payroll and benefits records which relate to wages paid to employees by recipients receiving financial assistance from the City Annually or upon request by the City the Recipient receiving financial assistance shall provide proof of wages and benefits for employees for the period for which assistance is being provided or five 5 years whichever is longer S Recipients offinancial assistance shall execute an agreement with the City providing for the payment ofliving wages as provided in Section 2 96 040 toemployees The agreement shall contain a notice in substantially the following form The Recipient agrees to pay all workers employed bythe Recipient in the performance of this loan or grant a living wage as provided by Chapter 2 96 of the Bozeman Municipal Code The Recipient agrees to make available for City inspection the recipient s payroll records relating to employees providing services under this loan or grant If any payroll records of Recipient contain any false misleading or fraudulent information or if the Recipient fails to comply with any of the provisions of Bozeman Municipal Code Chapter 2 96 the City may withhold payments on the agreement terminate cancel or suspend the agreement in whole or in part C Failure to pay employees in accordance with this Chapter will constitute a breach of the agreement described in subsection B above and entitles the City to immediate and full repayment ofany financial assistance provided to the Recipient offinancial assistance or other remedies acceptable to the City D Every Recipient of financial assistance shall post a notice of the current living wage posted at the site of the work in a permanent place where it can be easily seen and read by the persons employed The notice shall also provide information ofthe means the reader may use to file a complaint of violation In addition copies of the current living wage requirement shall be supplied to any person employed at the request of such person and within a reasonable period of time after the request E An employee may file a complaint alleging a recipient s violation of this section All complaints shall be filed with the Director ofAdministrative Services for the City ofBozeman The Director 4 u149 of Administrative Services shall investigate the complaint and present his or her findings to the City Commission F At the time ofapplication Recipients receiving financial assistance from the City will be advised that they can apply for a variance in accordance with Section 2 96 090 2 96 060 Collective Baraainina Exemption Except for Recipients covered under Section 2 96 040 all the provisions of this Chapter or any part hereof may be waived in a bona fide collective bargaining agreement but only ifthe waiver is expressly set forth in such an agreement in clear and unambiguous terms 2 96 070 Cuts and Non Waae Benefits Prohibited No Recipient of financial assistance will fund wage increases required by this ordinance or otherwise respond to the provisions of this Chapter by reducing the health benefits insurance pension vacation or other non wage benefits of any its employees 2 96 080 Non Impairment of Existina Contracts Nothing contained herein shall operate to impair anyexisting contracts except that the renewal amendment or modification of such contracts occurring on or after the effectivedate ofthis ordinance shall be subject to this Chapter 2 96 090 Variance The City Commission in its sole discretion may grant a variance from this Chapter if A A Recipient offinancial assistance submits a plan to complywith this Chapter for ninety percent 90 of employees upon receiving City financial assistance for ninety five percent 95 of employees within one 1 year and for all employees within two 2 years ofreceiving financial assistance or B The City Commission determines that it would be in the public interest after a hearing that the Recipient of financial assistance should be granted a variance or a conditional variance from this Chapter 2 96 100 Retaliation and Discrimination Barred A Recipient of financial assistance from the City shall not discharge reduce the compensation or otherwise discriminate against any employee any employee making a complaint or otherwise asserting his or her rights under this Chapter or any employee participating in any investigation or proceedings 5 150 2 96 110 Biennial Review During the month of July 2004 and then every two years thereafter the Commission shall review this chapter to determine whether any modifications to this chapter are necessary or whether this chapter should be repealed Failure to review this chapter does not affect this chapter nor the requirement to pay a living wage Section 2 Repealer All resolutions ordinances and sections ofthe Bozeman Municipal Code and parts thereof in conflict herewith are hereby repealed Section 3 Savinas Provision This ordinance does notaffectthe rights and duties that matured penalties that were incurred or proceedings that were begun before the effective date of this ordinance Section 4 Severabilitv If any portion of this ordinance or the application thereof to any person or circumstance is held invalid such invalidity shall not affect other provisions ofthis ordinance which may be given effect without the inval id provisions or appl ication and to this end the provisions ofthis ordinance are declared to be severable Section 5 Effective Date This ordinance shall be in full forceand effect thirty 30 days after final adoption PASSED by the City Commission of the City of Bozeman Montana on first reading at a regular session thereof held on the 3rd day of December 2001 MARCIA B YOUNGMAN Mayor ATTEST ROBIN L SULLIVAN Clerk of the Commission 6 151 PASSED ADOPTED AND APPROVED by the City Commission of the City of Bozeman Montana on second reading at a special session thereof held on the 19th day of December 2001 MA ayor ATTEST sL Clerk of the Commission 7 152 153