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(a) Living Wage means no less than $12.40 per hour including wages and health benefits. For health benefits to be counted as a part of the living wage, the benefit must be at least $1.50 per hour. If employer contributions for health benefits are not paid on an hourly basis, the employer must demonstrate to the City the hourly value of such benefits in order to receive credit for such payments to covered employees. (b) Time-off: Employees shall be entitled to at least twenty-two (22) days off per year for sick leave, vacation, or personal necessity. At least twelve (12) of the required days off shall be compensated at the same rate as regular compensation for a normal working day. Ten (10) of the required 22 days may be uncompensated days off. Employees who work part-time shall be entitled to accrue compensated days off in increments proportional to that accrued by full-time employees. Employees shall be eligible to use accrued days off after the first six (6) months of satisfactory employment or consistent with employer policy, whichever is sooner. Paid holidays, consistent with established employer policy, may be counted toward provision of the required 12 compensated days off. (c) Additional Compensation Permissible. Nothing in this chapter shall be construed to limit an employer's discretion to provide greater wages to its employees. (d) The initial rates set forth in subsection ( a) of this section shall increase annually on July 151, beginning July 1, 2008, to reflect the 12 month average in the Consumer Price Index for all urban consumers in the San Francisco-Oakland-San Jose Metropolitan Statistical Areas for the preceding year from May through April. (e) If the prevailing wage for services oocupations are posted by the State Department of Industrial Relations (or any successor agency) and exceeds the compensation required by the living wage, then the contractor is required to pay its employees the posted prevailing wage. (f) The City Council may periodically adjust the living wage rate up or down to reflect average living wage rates in effect in other Alameda County cities. Section 8. Waivers - Section 1-6-630 of Title 1 of the San Leandro Municipal Code is hereby added as follows: Following a review and recommendation by the City Manager, the City Council may approve waivers with or without conditions to any of the requirements and regulations set forth in this ordinance, or in any implementing policies, upon a finding that such action is in the best interest of the City. Section 9. Required Contract Provisions - Section 1-6-635 of Title 1 of the San Leandro Municipal Code is hereby added as follows: Every City contract, lease, license, concession agreement, franchise agreement or agreement for financial aid with an employer or amendment thereto affecting financial aid or extending the term shall require compliance with the requirements of this chapter. Such contract 5