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10A Action 2007 0716
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10A Action 2007 0716
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7/13/2007 12:36:29 PM
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7/13/2007 12:36:15 PM
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CM City Clerk-City Council
CM City Clerk-City Council - Document Type
Staff Report
Document Date (6)
7/16/2007
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_CC Agenda 2007 0716
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<br />Living Wage Ordinance <br /> <br />-Page 2 of 4 - <br /> <br />July 10,2007 <br /> <br />ordinance before Council. <br /> <br />Chamber of Commerce/ Shoreline Businesses Input <br /> <br />Staff also provided a copy of the draft ordinance to the Chamber and interested businesses and <br />met on July 11, 2007 with the Chamber and Shoreline Area Businesses. All are generally <br />opposed to the Ordinance. Their input includes the following points: <br /> <br />Section 7: Living Wage. Employee gratuities (tips) should be explicitly noted as <br />compensation in the ordinance. See Section 10 (new): Exemptions below. <br /> <br />Section 7 (b): Time-off. The cost of the living wage for Skates in Berkeley is 1 % of <br />gross sales. Only a few employees' wages are affected. The primary costs comes from <br />the paid days off for all employees (vacation pay is included in each paycheck). On <br />leases based on percent of gross, the City can expect to receive 1 percentage point less. <br /> <br />Section 10 (f): Exemptions. The exemption for temporary employees should be <br />extended to businesses and non-profits. <br /> <br />Section 10 (new): Exemptions. Horatio's attorney suggests the following addition to <br />clarify gratuities or tips may be counted as wages. Other requirements, including days <br />off would apply. "As to the requirements of Section 7 (a) only, employees of persons or <br />entities required to comply with this Ordinance where the employer can demonstrate to <br />the City that such employees receive compensation, including gratuities (whether <br />received directly or indirectly), in connection with the work they perform for the <br />employer, equal or exceed the Living Wage." <br /> <br />Section 11 (b ): Worker Retention. They strongly object to this provision as an undue <br />intrusion on private businesses' ability to staff and run their operation, and believe it is <br />unrelated to providing a living wage. They also stated that there are practical problems in <br />implementing this provision. <br /> <br />General: Current contracts must be honored, including extension options or increased <br />charges/revenues noted in the current contracts, without triggering compliance with the <br />Living Wage Ordinance. The Ordinance would discourage investment in the Shoreline <br />area, redevelopment areas, and Transit Oriented District. <br /> <br />The Revised Living Wage Ordinance includes the following provisions: <br /> <br />Wages: $ 12.40/hour with annual COLA and ability for health benefits to be credited. <br /> <br />Paid days off: 12 days with an additional 10 unpaid days. <br /> <br />Applicability: City regular and permanent part-time employees, City servIces <br />contractors, businesses and non-profits receiving financial assistance and lessees, <br />concessionaires and franchisees. <br /> <br />Waivers: City Council, upon City Managers recommendation, may grant waivers upon a <br />finding that it is in the best interest of the City. <br />
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