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Finance Highlights 2007 0925
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Finance Highlights 2007 0925
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10/11/2007 4:23:14 PM
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CM City Clerk-City Council
CM City Clerk-City Council - Document Type
Committee Highlights
Document Date (6)
9/25/2007
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_CC Agenda 2007 1015
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\City Clerk\City Council\Agenda Packets\2007\Packet 2007 1015
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Finance Director Baloca explained that the prepayment cost of the new fire ladder truck is <br />$838,235, which includes a Pierce discount of $46,515. Baloca further explained that out of all <br />the options available for purchase, the prepayment discount appeared most advantageous since <br />the return on investment from investing the base price is projected to be less than the discount. <br />The new fire ladder truck will reside at Fire Station 9. Finance Committee recommended <br />forwarding to City Council for approval. <br />2. Discussion Regarding Recommendations for Implementing the City's Living Wage <br />Ordinance (LWO). <br />The City of San Leandro Council adopted Title 1, Article 6, Chapter 6 of the City Municipal <br />Code LWO, with an effective date of September 1, 2007. Staff was charged with developing <br />guidelines, and documents, and an administrative process for implementing the LWO. <br />City Manager Jermanis discussed the administrative guidelines to the City's LWO and clarified <br />that City Council approval was not required since the Ordinance was already approved by the <br />City Council and was in effect. The Finance Committee was provided the following draft <br />documents for review and approval: Guidelines for Compliance, Frequently Asked Questions, <br />Living Wage Certification Form, and Notice of Employee Rights for City of San Leandro <br />Contractors. Various interest groups (e.g. Rental Housing Owner's Association, Attorney for <br />EBASE) were given the opportunity to review the draft documents and provide feed back prior <br />to the Finance Committee meeting. <br />Assistant City Manager Hollister gave an update to the City's outreach efforts to the community. <br />Hollister relayed that Andy Khan, labor attorney for EBASE was refuting the legality of taxing <br />tips and gratuities. As a result of the feedback received and following Assistant City Attorney <br />Stuart's review, language regarding tips and gratuities as a qualifier for meeting the living wage <br />requirement upon demonstration will be removed from the administrative guidelines. Stuart <br />further explained that the issue regarding tips and gratuities need to be further reviewed and that <br />the City of Berkeley case could not be used as precedent since it resulted in an out-of--court <br />settlement. <br />Hollister clarified the issue brought up by Tom Silva from RHO that subcontractors and sub- <br />leasees having less than 6 employees are exempt from the LWO and that those with more than <br />six employees are not, even if the primary contractor is exempt. Staff will also add clarifying <br />language that subcontractor's and sub-leasees would not be subject to living wage guidelines if <br />they fall under prevailing wage requirements at the State level. <br />City Manager Jermanis stated that restaurants believe that tips and gratuities should be included <br />to meet the ordinance's requirements. Jermanis recommended bringing the guidelines back to <br />the Finance Committee after the follow up research has been conducted and revisions have taken <br />place. <br />3. Review of Alameda County Fire Department's FY 2006-07 Fourth Quarter <br />Expenditure Report <br />City Manager Jermanis commented that of the overall year end savings of approximately $249k <br />primarily reflects benefit savings. Finance Director Baloca added that the increase in overtime <br />primarily reflects vacancies and retirements that were offset by salary and benefit savings. <br />2 <br />
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