Finance Highlights 2007 0925 - Laserfiche WebLink

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Finance Director Baloca explained that the prepayment cost of the new fire ladder truck is $838,235, which includes a Pierce discount of $46,515. Baloca further explained that out of all the options available for purchase, the prepayment discount appeared most advantageous since the return on investment from investing the base price is projected to be less than the discount. The new fire ladder truck will reside at Fire Station 9. Finance Committee recommended forwarding to City Council for approval. 2. Discussion Regarding Recommendations for Implementing the City's Living Wage Ordinance (LWO). The City of San Leandro Council adopted Title 1, Article 6, Chapter 6 of the City Municipal Code LWO, with an effective date of September 1, 2007. Staff was charged with developing guidelines, and documents, and an administrative process for implementing the LWO. City Manager Jermanis discussed the administrative guidelines to the City's LWO and clarified that City Council approval was not required since the Ordinance was already approved by the City Council and was in effect. The Finance Committee was provided the following draft documents for review and approval: Guidelines for Compliance, Frequently Asked Questions, Living Wage Certification Form, and Notice of Employee Rights for City of San Leandro Contractors. Various interest groups (e.g. Rental Housing Owner's Association, Attorney for EBASE) were given the opportunity to review the draft documents and provide feed back prior to the Finance Committee meeting. Assistant City Manager Hollister gave an update to the City's outreach efforts to the community. Hollister relayed that Andy Khan, labor attorney for EBASE was refuting the legality of taxing tips and gratuities. As a result of the feedback received and following Assistant City Attorney Stuart's review, language regarding tips and gratuities as a qualifier for meeting the living wage requirement upon demonstration will be removed from the administrative guidelines. Stuart further explained that the issue regarding tips and gratuities need to be further reviewed and that the City of Berkeley case could not be used as precedent since it resulted in an out-of--court settlement. Hollister clarified the issue brought up by Tom Silva from RHO that subcontractors and sub- leasees having less than 6 employees are exempt from the LWO and that those with more than six employees are not, even if the primary contractor is exempt. Staff will also add clarifying language that subcontractor's and sub-leasees would not be subject to living wage guidelines if they fall under prevailing wage requirements at the State level. City Manager Jermanis stated that restaurants believe that tips and gratuities should be included to meet the ordinance's requirements. Jermanis recommended bringing the guidelines back to the Finance Committee after the follow up research has been conducted and revisions have taken place. 3. Review of Alameda County Fire Department's FY 2006-07 Fourth Quarter Expenditure Report City Manager Jermanis commented that of the overall year end savings of approximately $249k primarily reflects benefit savings. Finance Director Baloca added that the increase in overtime primarily reflects vacancies and retirements that were offset by salary and benefit savings. 2