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Living Wage Ordinance -Page 2 of 4 - July 10,2007 ordinance before Council. Chamber of Commerce/ Shoreline Businesses Input Staff also provided a copy of the draft ordinance to the Chamber and interested businesses and met on July 11, 2007 with the Chamber and Shoreline Area Businesses. All are generally opposed to the Ordinance. Their input includes the following points: Section 7: Living Wage. Employee gratuities (tips) should be explicitly noted as compensation in the ordinance. See Section 10 (new): Exemptions below. Section 7 (b): Time-off. The cost of the living wage for Skates in Berkeley is 1 % of gross sales. Only a few employees' wages are affected. The primary costs comes from the paid days off for all employees (vacation pay is included in each paycheck). On leases based on percent of gross, the City can expect to receive 1 percentage point less. Section 10 (f): Exemptions. The exemption for temporary employees should be extended to businesses and non-profits. Section 10 (new): Exemptions. Horatio's attorney suggests the following addition to clarify gratuities or tips may be counted as wages. Other requirements, including days off would apply. "As to the requirements of Section 7 (a) only, employees of persons or entities required to comply with this Ordinance where the employer can demonstrate to the City that such employees receive compensation, including gratuities (whether received directly or indirectly), in connection with the work they perform for the employer, equal or exceed the Living Wage." Section 11 (b ): Worker Retention. They strongly object to this provision as an undue intrusion on private businesses' ability to staff and run their operation, and believe it is unrelated to providing a living wage. They also stated that there are practical problems in implementing this provision. General: Current contracts must be honored, including extension options or increased charges/revenues noted in the current contracts, without triggering compliance with the Living Wage Ordinance. The Ordinance would discourage investment in the Shoreline area, redevelopment areas, and Transit Oriented District. The Revised Living Wage Ordinance includes the following provisions: Wages: $ 12.40/hour with annual COLA and ability for health benefits to be credited. Paid days off: 12 days with an additional 10 unpaid days. Applicability: City regular and permanent part-time employees, City servIces contractors, businesses and non-profits receiving financial assistance and lessees, concessionaires and franchisees. Waivers: City Council, upon City Managers recommendation, may grant waivers upon a finding that it is in the best interest of the City.