Deena Winter: No contract, no living wage requirement
Some workers at the Capital Humane Society were surprised to see a photo caption in last week’s Journal Star that said they would “continue” to be paid a living wage since the mayor vetoed an exemption from the wage requirement for nonprofit groups.
They were surprised, because about half of the shelter workers don’t get paid the living wage, as defined by the city.
The living wage ordinance requires companies that contract with the city to pay full-time employees a minimum hourly salary, which is adjusted annually. This year, it’s $9.93 per hour if the employer provides health insurance benefits, $10.92 if it doesn’t. The wage requirement, enacted in 2004, applies to entities with at least 10 employees and contracts worth at least $25,000.
And even though the Humane Society is paid nearly a quarter of a million dollars a year to house stray animals picked up by the city, they’ve been essentially working without a contract since negotiations broke down on a new agreement and their official contract ended in 2006.
The 2004 contract paid the Humane Society $158,000 a year, but the Society requested $253,000 in 2005, citing increased costs due to the living wage requirement. The city offered $168,000. The ensuing contract dispute prompted the Humane Society to re-examine its mission and at one point decide to stop taking in stray animals for the city.
But the Humane Society has continued to accept city animals on a monthly basis for the annual equivalent of $244,000, and has now reached the point where it’s preparing to bid on a new contract for kennel services.
Capital Humane Society Director Bob Downey said the shelter isn’t subject to the living wage requirement because, “We don’t have a contract. We do not even have a month-to-month contract.”
City Attorney Dana Roper agreed. The shelter sends his office a bill every month, which he sends to the Finance Department. He said it’s the only entity whose payments are handled that way.
And even though the Humane Society is now getting paid more than would have been necessary to pay employees a living wage in 2005, Downey said, “That was over three years ago.” He said costs have gone up since then.
If the Humane Society should successfully win a new contract with the city, mayoral aide Rick Hoppe said, they would be expected to begin paying the living wage.
Eschliman slams Beutler veto
Not long after Mayor Chris Beutler announced he would veto a City Council-approved exemption to the city’s living wage for nonprofits, Councilwoman Robin Eschliman fired off a press release decrying his decision as “hypocritical, (a) double standard, flawed logic and symbolism over substance.”
Eschliman said she had first-hand knowledge of the effect of what she calls “the super-minimum wage.” A nonprofit agency that provided services to low-income and elderly people (and employed her mother) closed down shortly after the living wage ordinance went into effect.
Home Services for Independent Living closed in 2004, in part, because of the increased costs brought on by the new living wage requirement, said the group’s former executive director, Donna Burkhardt.
Since 1972, the agency had helped low-income elderly people continue to live in their homes by helping them with cleaning, grocery shopping and personal care. At one time, the agency had 60 employees serving 400 clients. It also had a contract with the city to pay for services for poor elderly people.
However, funding from the city aging department dried up, and near the end, Home Services was down to 20 employees and about 50 clients, Burkhardt said.
The aging department ran out of local funds to pay the company for summer months, she said.
Dee Fullerton, accountant for the aging department, confirmed that it ran out of money for the services in July and August of 2004.
As a contract renewal loomed, Burkhardt was told her agency wouldn’t get a funding increase to deal with the living wage requirement, Burkhardt said. That was the final nail in the coffin.
And not only that...
“To add insult to injury,” Eschliman said, despite an aggressive campaign by the mayor’s office to get city employees to contribute to United Way this year, just 45 percent of city employees, “most of whom are union employees,” did.
“Our city employees expect to receive union wages and benefits, but the majority are not willing to contribute any of their union wages to these nonprofit organizations whose budgets run on shoestrings and who are helping ‘the least of these’ in our city,” Eschliman said in a press statement. “If the city really cared about good wages for nonprofit employees, giving on the part of city employees would be mandated, not pitifully supported.”
Early retirement plan should save a quarter-million
The city is expected to save about a quarter of a million dollars the first year of its early retirement incentive program.
According to figures from the city budget office, the city paid out nearly $879,000 in incentives for people to retire early, which will save the city $1.1 million in annual salaries and benefits, for a net savings of nearly $252,000.
Forty-seven people signed up for the early retirement pilot program, which is aimed at reducing the city’s burgeoning personnel costs.
The incentive: a $15,000 contribution to the employee’s Post-Employment Health Plan (a tax-free investment account employees use for health care costs after they retire) and an additional 15 percent sick leave payout.
Reach Deena Winter at 473-2642 or dwinter@journalstar.com.

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