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15.A.
City Council Meeting - FINAL (2)
Meeting Date:
03/21/2017
Co-Submitter:
Sterling Solomon
From:
Stacy Saltzburg, Deputy City Clerk

TITLE:

Consideration and Possible Adoption of Proposed Ordinance No. 2017-08: Amending Title 15, Labor; Chapter 15-01, Minimum Wage, of the Flagstaff City Code.

RECOMMENDED ACTION:

Should Council wish to move forward with adopting this proposed ordinance:

1) Read Ordinance No. 2017-08 by title only for the final time (requiring a 3/4 vote of Council)
2) City Clerk reads Ordinance No. 2017-08 by title only
3) Adopt Ordinance No. 2017-08 (requiring a 3/4 vote of Council)

Executive Summary:

Proposition 414 was approved by the Flagstaff voters on November 8, 2016, was proclaimed law by the Mayor on November 28, 2016, and codified as Title 15 of the Flagstaff City Code. Under the Flagstaff City Charter and Arizona law, a city ordinance that was enacted by initiative may only be amended if the amendment furthers the purposes of the initiative and is approved by a three-fourths vote of City Council. A three-fourths vote of the City Council is six out of seven members (6/7). 

Proposition 414 provides a livable minimum wage for Flagstaff worker, accounts for the higher cost of living in Flagstaff by establishing a minimum wage in Flagstaff that is greater than the state minimum wage and achieves a $15 per hour minimum wage in Flagstaff by 2021 through a gradual, phased implementation.
 
Proposition 206, a state-wide initiative, was approved by the Arizona voters on November 8, 2016 resulting in a state minimum wage of $10.00 an hour, which became effective on January 1, 2017. The compounding effects of Proposition 206 at the state level and Proposition 414 at the local level—which would result in a drastic increase in the minimum wage over a short period of only six months— were not described or analyzed for Flagstaff voters in the Information Pamphlet. Adjusting the incremental rate at which the minimum wage is escalated would further the purposes of Proposition 414 by providing for a gradual increase in the minimum wage to $15.00 an hour by 2021.

Financial Impact:

Adoption of Ordinance 2017-08 would delay the eventual increase in pay under Title 15 for city employees who currently make less than $12 an hour.

Policy Impact:

Connection to Council Goal, Regional Plan and/or TeamFlagstaff Strategic Plan:

1) Invest in our employees and implement retention and attraction strategies.
9) Improve the economic quality of life for Flagstaff through economic diversification, and by fostering jobs and programs that grow wages and revenues.
10) Support and assist the most vulnerable.

 

Has There Been Previous Council Decision on This:

On February 14, 2017, the City Council directed staff to draft an Ordinance for Council Consideration to amend to Title 15 by moving the $2.00 increase in minimum wage from July 1, 2017, to January 1, 2021.

First reading of the ordinance took place at the March 7, 2017, after an amendment was added by Council.

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