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HomeMy WebLinkAboutItem 22 - Resolution Relating to Premium Pay for Grocery Workers City Managers Office www.santa-ana.org/cm Item # 22 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report February 2, 2021 TOPIC: Resolution Relating to Premium Pay for Grocery Workers AGENDA TITLE: Resolution directing the City Manager and City Attorney to report back to City Council prior to March 2, 2021 for a proposed ordinance requiring premium pay for grocery workers RECOMMENDED ACTION Adopt a resolution instructing the City Manager and City Attorney to report back to the City Council prior to the March 2, 2021 Council Meeting with a proposed Urgency Ordinance requiring premium pay (Hero Pay) for front-line Grocery retail employees within the City. DISCUSSION COVID-19 Pandemic Timeline On March 11, 2020, the World Health Organization (WHO) declared the Coronavirus (COVID-19) a pandemic. On March 17 2020, the City Council proclaimed a civil emergency in response to the COVID-19 pandemic, authorizing the City Manager to exercise the emergency powers necessary to take extraordinary measures to prevent death or injury of persons and to protect the public peace, safety and welfare, and alleviate damage, loss, hardship, or suffering. On March 19, 2020, California Governor Gavin Newsom issued a Stay Home order, closing all non-essential workplaces, requiring people to stay home except to participate in essential activities or to provide essential business services, and banning all gatherings for social, spiritual, and recreational purposes. In addition to healthcare, public health, and emergency services, the Stay Home order identified grocery stores, among other businesses/services, as essential business sectors critical to protecting the health and well-being of all Californians and designated their workers as essential critical infrastructure workers. Resolution Relating to Premium Pay for Grocery Workers February 2, 2021 Page 2 4 1 6 COVID-19 Cases and Deaths to Date As of February 1, 2021, the World Health Organization reported a global total of 102,584,580 cases of COVID-19, including 2,222,647 deaths; California reported 3,258,706 cases of COVID-19, including 40,908 deaths; and Santa Ana reported 42,197 cases of COVID-19, including 545 deaths. Grocery Stores as Essential Businesses Grocery stores are essential businesses. As such, grocery workers employed at grocery stores are essential workers who perform services that are fundamental to the economy and health of the community during the COVID-19 crisis. They work in high-risk conditions with inconsistent access to protective equipment and other safety measures, work in public situations with limited ability to engage in physical distancing, and continually expose themselves and the public to the spread of disease. Premium pay, such as a “hazard pay” or “hero pay” as proposed by local governments such as Long Beach, CA, Los Angeles County, CA, Santa Monica, CA, and Seattle, WA, is wages paid to an employee in addition to regular wages. Premium pay is an established type of compensation for employees performing hazardous duty or work involving physical hardship that can cause extreme physical discomfort and distress. Similar ordinances have been proposed or adopted by the Los Angeles County Board of Supervisors and the City of Long Beach, which have resulted in threats of legal action. If the Council adopts the proposed resolution, the City Manager and City Attorney in consultation and collaboration with other relevant Departments, will deliver a written report on, or before, the March 2, 2021 Council Meeting that contains a proposed Urgency Ordinance to include: Requirement that retail stores located within the City which are privately and publicly traded, with at least 300 employees nationwide, and more than 10 employees per store site, pay all their employees an additional four (4) dollars per hour in wages; A sunset clause, occurring 120 days from the effective date of the ordinance; Any other provisions necessary to implement the intent of the motion; Direction to the City Attorney to advise the City Council on its enforceability, in light of the lawsuit filed against the City of Long Beach. FISCAL IMPACT There is no fiscal impact associated with this action. EXHIBIT(S) 1. Resolution Submitted By: Kristine Ridge, City Manager Sonia Carvalho, City Attorney Resolution Relating to Premium Pay for Grocery Workers February 2, 2021 Page 3 4 1 6 Approved By: Kristine Ridge, City Manager RESOLUTION NO. 2021-__ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA INSTRUCTING THE CITY MANAGER AND CITY ATTORNEY IN CONSULTATION WITH OTHER RELEVANT DEPARTMENTS TO REPORT BACK TO THE CITY COUNCIL IN WRITING PRIOR TO THE MARCH 2, 2021 COUNCIL MEETING WITH A PROPOSED URGENCY ORDINANCE REQUIRING “HERO PAY” FOR FRONT-LINE GROCERY RETAIL EMPLOYEES WITHIN THE CITY WHEREAS, the COVID-19 disease is caused by a virus that spreads easily from person to person and may result in serious illness or death, and is classified by the World Health Organization (WHO) as a worldwide pandemic; and WHEREAS, COVID-19 has broadly spread throughout California and remains a significant health risk to the community, especially members of our most vulnerable populations; and WHEREAS, the WHO has declared that COVID-19 is a global pandemic, which is particularly severe in high risk populations such as people with underlying medical conditions and the elderly, and the WHO has raised the health emergency to the highest level, requiring dramatic interventions to disrupt the spread of this disease; and WHEREAS, on March 4, 2020, California Governor Gavin Newsom proclaimed a state of emergency in response to new cases of COVID-19, directing state agencies to use all resources necessary to prepare for and respond to the outbreak; and WHEREAS, in March 2020, the County of Orange Public Health Agency issued orders temporarily shutting down restaurants, bars, and other entertainment and food establishments, except take-out food; and WHEREAS, in March 2020, the City Council of the City of Santa Ana proclaimed a civil emergency in response to new cases of COVID-19, authorizing the City Manager to exercise the emergency powers necessary to take extraordinary measures to prevent death or injury of persons and to protect the public peace, safety and welfare, and alleviate damage, loss, hardship or suffering; and WHEREAS, on March 19, 2020, California Governor Gavin Newsom issued a “Stay Home - Stay Healthy” proclamation (Executive Order N-33-20) closing all non-essential workplaces, requiring people to stay home except to participate in essential activities or to provide essential business services, and banning all gatherings for social, spiritual, and recreational purposes. In addition to healthcare, public health and emergency services, the “Stay Home – Stay Healthy” proclamation identified grocery stores as essential business sectors critical to protecting the health and well-being of all Californians and designated their workers as essential critical infrastructure workers; and WHEREAS, on December 3, 2020, California Governor Gavin Newsom extended the “Stay Home – Stay Healthy” proclamation; and WHEREAS, as of January 22, 2021, the WHO Situation Report reported a global total of 96.2 million cases of COVID-19, including 2.06 million deaths; California reported 3.12 million cases of COVID-19, including 35,701 deaths; and Orange County reported 231,000 cases of COVID-19, including 2,546 deaths; and WHEREAS, grocery stores are essential businesses operating in Santa Ana during the COVID-19 emergency making grocery workers highly vulnerable to economic insecurity and health or safety risks; and WHEREAS, grocery workers working for grocery stores are essential workers who perform services that are fundamental to the economy and health of the community during the COVID-19 crisis. They work in high risk conditions with inconsistent access to protective equipment and other safety measures; work in public situations with limited ability to engage in physical distancing; and continually expose themselves and the public to the spread of disease; and WHEREAS, premium pay, paid in addition to regular wages, is an established type of compensation for employees performing hazardous duty or work involving physical hardship that can cause extreme physical discomfort and distress; and WHEREAS, grocery workers working during the COVID-19 emergency merit additional compensation because they are performing hazardous duty due to the significant risk of exposure to the COVID-19 virus. Grocery workers have been working under these hazardous conditions for months. They are working in these hazardous conditions now and will continue to face safety risks as the virus presents an ongoing threat for an uncertain period, potentially resulting in subsequent waves of infection; and WHEREAS, the availability of grocery stores is fundamental to the health of the community and is made possible during the COVID-19 emergency because grocery workers are on the frontlines of this devastating pandemic supporting public health, safety, and welfare by working in hazardous situations; and WHEREAS, establishing an immediate requirement for grocery stores to provide premium pay to grocery workers protects public health, supports stable incomes, promotes job retention by ensuring that grocery workers are compensated for the substantial risks, efforts, and expenses they are undertaking to provide essential services in a safe and reliable manner during the COVID-19 emergency. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Santa Ana hereby finds, determines and declares as follows Section 1. The City Council directs the City Manager and City Attorney in consultation and collaboration with other relevant Departments, to deliver a written report to the City Council prior to its March 2, 2021meeting that: A. Contains a proposed Urgency Ordinance that, among other things: i. Requires that grocery retail stores located within the City and are private or publicly traded with at least 300 employees nationwide and more than 10 employees per store site pay all their workers an additional four (4) dollars per hour in wages; ii. Sunsets 120 days from the effective date of the ordinance; and iii. Includes any other provisions necessary to implement the intent of the motion. B. Directs the City Attorney to advise the City Council on its enforceability. Section 2. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this 2nd day of February 2021. ________________________ Vicente Sarmiento Mayor APPROVED AS TO FORM ________________________ SONIA R. CARVALHO CITY ATTORNEY AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Daisy Gomez, Clerk of the Council do hereby attest to and certify the attached Resolution No. 2021-__ to be original resolution adopted by the City Council of the City of Santa Ana on _______, 2021. Date: _______________ ________________________ Daisy Gomez Clerk of the Council City of Santa Ana