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  Minimum Wage on Agenda Sans Staff Report
March 18, 2014
 
 

On March 11, I shared the results of a poll of E-FORUM readers about raising the minimum wage in Richmond; see Public Favors $11.00 Minimum Wage, March 11, 2014.
I got 58 responses, and all but seven were in favor of Richmond adopting a minimum wage. The most, twenty, favored the $11.00 level. Eleven favored something around $12.30, and seven favored $15.00. Eight thought it was a bad idea, and three were generally in favor but did not express a preference for a specific amount. There was significant sentiment for the Council adopting it without putting it on the ballot.
Since March 11, I have gotten 18 more responses, copied below. Nine favored $11.00. Three favored $12.30, and one favored $15.00. Four were opposed, and one did not express a preference.

However, when the City Council adopted Resolution 5-14, directing staff to draft the ballot items, it also requested a staff report detailing potential consequences.

The matter to adopt a resolution directing staff to draft three ballot measures within 60 days for City Council review and consideration for submission to the voters at the November 4, 2014,general municipal election to establish a minimum wage for employees of employers who maintain a facility within the city or are subject to the City Business License tax (exempting small and new businesses and certain categories) was presented by Vice Mayor Beckles, Myrick, and Mayor McLaughlin. The following individuals gave comments: Lenora Brown, Yvonne Nair, Don Gosney, Joseph Puleo, Jackie Thompson, Dennis Dalton, Paul Larudee, Raymond Landry, Eduardo Martinez, Melvin Willis, Mike Parker, John Garth, Patricia Byers, Marilyn Langlois, and Jeanice Cummings. A motion was made by Vice Mayor Beckles, seconded by Councilmember Myrick to adopt a resolution directing staff to draft three ballot measures within 60 days for City Council review and consideration for submission to the voters at the November 4, 2014, general municipal election or sooner to establish a minimum wage for employees. Councilmember Rogers offered a friendly amendment to direct the city manager to look into the following issues and submit a report to the City Council as soon as possible: (1) In general when minimum wage increases were passed, was there a loss of employment and were jobs lost by younger lesser skilled African American and Hispanic job holders; (2) was the history when a small city like Richmond passed a minimum wage increase as opposed to a larger city like San Francisco; (3) was there a record of businesses relocating elsewhere because they had the option to; (4) how many employees in business were Richmond residents; and (5) request the city manager’s professional opinion regarding what degree of businesses thinking about relocating to Richmond would reconsider due to the minimum wage requirement. The amendments were accepted and Resolution No.5-14 was adopted by the unanimous vote of the City Council.

Possibly due to the tremendous amount of staff time devoted to the RHA issue, the City Manager’s Office has not yet completed the analysis, but the proponents are unwilling to wait. The city manager wrote:

LaShonda White is preparing the analysis, which has not yet been completed.  Prior Council direction was to prepare three ordinances and corresponding ballot measures for an increase in the local minimum wage, and we had planned to have the financial analysis completed to accompany that agenda item.  Until last Wednesday, I was not aware that this was being placed on the agenda, and, to be clear, there is no “staff report” accompanying Tuesday’s agenda item – only what has been written by the Mayor’s office.

We were also promised input from the Chamber of Commerce which has not been forthcoming.

I don’t understand what the hurry is. Even it were to pass in the November 2014 election, it would not take effect until late this year.

The mayor disagrees with postponing it and wrote:

In an effort to create the best policy possible on the issue of minimum wage, my office has been working closely with Paul Sonn, an attorney from the National Employment Law Project, and Ken Jacobs, Chair of the UC Berkeley Labor Center.  Both are experts that have studied both minimum wage law and its effects on employment and economic development.  If you have any specific questions regarding legal issues or local impacts of minimum wage increase, I encourage you to contact them.

Additionally, my office reached out to the community in the following ways to look for input and suggestions:  On Feb 13, we presented the issue both broadly and specifically in terms of the actual proposed ordinance.  The presentation was well received and while there were input and questions, there was no opposition or significant concern.  On Feb 13, we also contacted the Richmond Chamber of Commerce directly, who in turn sent a poll to their membership the following day (see attached email).  They have promised to send us some form of report on the responses by the end of today.  Throughout this process, we have been interviewing community members and business owners.  Though the people who gave input may not overlap much with your e-forum respondents, our results have not been very different from the ones you received on your e-forum poll.

LaShonda White, the staff member assigned to research this issue, began work around March 11.  She has been out and will return to work on March 31.  So, despite the direction from Council to return in 60 days on January 14 (which would have been one of the two council meetings in March) we cannot expect anything from staff until mid-April at the earliest.  Furthermore, in such a limited time, her work could hardly produce different results from what we’ve already gathered.  Indeed, this is an area of research that already been studied extensively.

So in summary, I think we should go forward with the item tomorrow night.

There are also some missing items that I think should go into the measure:

·         Employees 18 years of age and under should be exempt. Including them could have an adverse effect on part-time and summer jobs, including paid internships for young people.
·         Non-profit 501(c)3 organizations should be exempt.

Richmond set to approve ballot measure that would hike minimum wage
By Robert Rogers
Contra Costa Times
Posted:   03/17/2014 03:26:53 PM PDT1 Comment
Updated:   03/17/2014 03:26:53 PM PDT
RICHMOND -- The City Council on Tuesday will decide whether to put one of three potential minimum wage hikes on the Nov. 4 ballot.
The council in January unanimously supported directing staff to develop three options for the minimum wage, of $11, $12.30 or $15 per hour. If the council approves one of the rates Tuesday, it will go before voters in November.
The proposals includes a cost-of-living adjustment annually and exempts businesses with 10 or fewer employees.
The proposed ordinance includes a provision that would peg the minimum wage to the Consumer Price Index for the Bay Area each Jan. 1, beginning in 2018, meaning that it would rise with inflation.
The lowest proposal, $11 per hour, would be a significant increase over the current state rate of $8 per hour, and the highest in the Bay Area. San Francisco's $10.74 minimum wage is the region's highest; San Jose's rate is $10.15.
The state's minimum wage is set to bump to $9 per hour in July and to $10 per hour in January 2016.
Local business leaders have said such an increase could dampen employment in the city, but council leaders say residents have expressed overwhelming support.
Results of poll since March 11, 2014

$11.00
1.       I am very much in favor of raising the minimum wage in our country in hopes that those who work hard could at least earn enough cash to get by.  The $11.00 per hour figure would align Richmond with the thinking of nearby cities and the figure the President has put forth.
2.       If you are still accepting votes, council pass without referendum $11. now – with mandatory annual review as part of the ordinance.  And lobby the State.
3.       I managed to forget to respond to this one, but I’m all for a beginning $11 minimum wage, with it tied to future inflation and automatic COLA adjustments. And yes, let’s just let the City Council do this (if they can…) without taking it to a vote. But if the Council can’t do it, then let’s put it on the ballot.
4.       Please vote to increase the minimum wage in Richmond to $11 per hour. The experience of the cities in Santa Clara county show that this can be done with almost no adverse consequences to businesses. And it materially helps those families with wage earners at the minimum wage.
5.       I hope you will consider supporting the increase in Richmond's minimum wage from $8 to at least $11 per hour.  People can hardly live on $8 an hour let alone support a family; particularly when so many of the jobs these days are only part time.  It's only fair that minimum wage workers benefit from the improving economy, too, and get a raise.  That, in turn, will help the economy more, because people will have more money to spend.  Please support a LIVING wage; thank you!
6.       I am asking you to vote "yes" on raising the minimum wage in Richmond to at least $11.00 per hour. Everyone deserves a living wage. We all know how expensive it is to keep your head above water, especially here in the San Francisco Bay Area. A living wage provides people with hope and security, and it helps the economy. People who earn a decent wage are more likely to buy products at local shops, eat at local restaurants, and use more local services.
7.       Robert Reich, Chancellor Professor of Public Policy at the University of California, and former Secretary of Labor under the Clinton Administration, explains why raising the minimum wage is good for the economy in the following video. While he is advocating for the United States Congress to raise the minimum wage nationally to $9.00 per hour,$9.00 per hour is not enough to live decently in the San Francisco Bay Area, one of the top most expensive areas to live in the United States. This is why I encourage you to raise the minimum wage to at least $11.00 per hour. Here is the two minute video by Robert Reich:  http://robertreich.org/post/45333866908
8.       If ever there was a city that needed this hourly wage increase, it's ours.  There has been no real "cost of living increase" for the workers since the 1970's.  Please vote for a minimum of $11/hour.  Thank you for your consideration, and thank you to those of you who have already voiced support.
9.       I urge you to exercise your prerogative as our elected representatives and adopt and ordinance at the March 18 City Council meeting to raise the minimum wage in Richmond to at least $11 per hour. You know people can hardly live on $8 an hour let alone support a family; particularly when so many of the jobs these days are only part time.  It's only right minimum wage workers benefit from the improving economy, too, and get a raise.  That, in turn, will help the economy more, because people will have more money to spend. Let's show how Richmond can lead the way to push for policy improvements that can and should take place at the state and federal level. Thank you to those of you who have already expressed your support for raising the minimum wage in Richmond.  It would be great to have a unanimous vote on Tuesday.

$12.30

1.       I am writing to encourage you to support Richmond families by voting to raise the minimum wage to $12.30 per hour.  For the past 22 years, as a medical social worker, I've met with Richmond mothers who are trying to provide for their children through low wage jobs. It is impossible pay for housing, food, clothes, without a fair wage that keeps up with inflation. Your vote to increase their minimum wage will add to their housing security and dignity. A liveable wage benefits our local economy as well. Thank you for your support,
2.       On Tuesday when you consider the issue of raising the minimum wage in Richmond, I will not be able to attend the meeting, so I am using this email as an opportunity to voice my support of an increase.  It is something I feel strongly about, as a Richmond resident. My personal preference would be for at least $12.30/hr, across the board. But I believe any of three rates under consideration would be an important step to better the lives of those earning the least.  I am also confident that increasing the spending capabilities of the lowest wage earners will have a ripple effect throughout the Richmond economy, increasing demand for goods and services, and creating jobs as well.
3.       There have been a few times when I've seen you all vote unanimously for something that needed to be done.  I hope Tuesday's action on the minimum wage will be one of them! And Corky, thank you for the subject line phrase.
$15.00

1.       I am writing you today to ask that you please support the minimum wage increase at tomorrow nights City Council meeting.  I urge you to vote for the highest wage possible, $15.00 per hour, given that so many residents are forced to work multiple part-time non-benefitted jobs.  As cost of living expenses continue to rise, families are finding it more difficult to meet their financial obligations. Saving for an emergency, saving for college expenses, taking a vacation, affording safe after school and summer activity programs, etc. is becoming obscure...for many these are impossible dreams to attain.  In addition, families will soon bear the cost of health care or the tax penalty if health care is not procured for their family.  For these reasons and many more, I ask that you support the residents of Richmond.  Everyone deserves to earn a living wage which in turn will improve Richmond's community.

Opposed
1.       I am opposed to raising the minimum wage in Richmond.  I believe that falls under the purview of the state government.
2.       I am extremely disappointed……..disappointed in you.  I have always considered you a Voice of Reason on what can be best described as “Dysfunction Junction” of Richmond’s City Council.   What would you expect the general public say concerning this topic.   As an elected official it is your responsibility to be a “representative” and “guardian” of what is best for the community at whole.   I guess the question is……Do you think it is a good idea for Richmond to set this precedent of going rogue?  By your tactic of backfilling with the public’s responses….I know where you stand.  Richmond is NOT San Francisco!!  Richmond has nowhere near the crisis in our cost of housing and living expenses.  Richmond has stumbled forward with many successes of new businesses relocating to our faire City and has begun to improve our high employment rate.   Artificially raising the minimum wage to rate higher than of not only the State’s mandate, but of her surrounding cities, will increase prices of goods, services and housing at an increased inflationary rate.   Plus it will discourage new businesses to view Richmond as a viable option to start and/or relocate.    Also….I view the exemption of less the ten employees as…..a penalty of being successful.   Seriously!!?  Prices will rise and ultimately it is the Government who will be the only one who will benefit in receiving more taxes in the long run.
3.       I appreciate that you asked your readers to comment about raising the minimum wage. However, it feels important to respond to your followup email that tallied what we said.  First, it is misleading to say that the "Public Favors $11" when there were only 58  respondents and only 20 supported that amount.  In no way is that even remotely close to statistically significant.  Some people will just read the headline and not the text and not know it is really the preference of a very tiny number of people. More important, it has come to my attention that there are two efforts to raise the California minimum wage, one to $12 and one to $13.  Here is a link to the first effort, which is a ballot initiative by Ron Unz for $12: http://www.counterpunch.org/2014/03/10/californias-coming-minimum-wage-restoration/ Here is a link to an article about a state senate bill that would ultimately raise the wage to $13:
4.       http://www.huffingtonpost.com/2014/02/03/california-highest-minimum-wage_n_4719091.html I know that you do not say what your preference is nor how you plan to vote.  But I would be distressed if Richmond raises its minimum wage to $11 and then later the state goes for either the Unz initiative or the Leno bill passes and supercedes the Richmond law.  Besides, as I indicated in the first email I sent, it is extremely difficult for a family to live in Richmond for anything less than $15 an hour.  I wonder how many of the respondents have tried to live on $11 an hour.
Other

1.       Maybe you should send an e-blast asking what minimum wage one would be willing to work for, if that became necessary.  Many folks are only a banana peel away from being laid off or fired now-a-days; so, what would they be willing to work for? And retired folks with hefty pensions: try to imagine what it would be like if the source of those pensions disappeared; what would you work for?

 

 
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