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e. Possible exemptions for hiring/working employees who are 18 years old and below. f. Establishing the definition for pay rates and benefits, Earned Income Credit and questions on inclusion of tips earned. g. Resources required for addressing administration and compliance enforcement issues. h. Potential effect on the City's current salary schedule. Mayor Young requested staff to compile a list of contractors including types of service, rates, effective dates, length of contract and project description. Starosciak appreciated the preliminary Living Wage Rate table and requested staff to expand the table by adding waiver clauses, Y/N waiver, CPI % increases, and other comparable information. Starosciak expressed her concern regarding the impact to non-profit organizations who currently provide social services for the City. Starosciak further shared that the definition of non-profit needs clarification when waivers are addressed, particularly for community based-organizations such as Davis Street and the Boys and Girls Club. Jermanis stated that the required need far administrative enforcement of the living wage might be greater, in comparison with existing prevailing wage administration. The Committee will examine the goals and benefits of the living wage compared to the prevailing wage. Human Resources Director Caire spoke about the potential financial impact on the City if the living wage was set at $14.00 per hour. The non-represented group that comprises part-time recreation staff, office assistants and maintenance aides would cost the City approximately $325K per year in additional wages. Some other job classifications may be affected as well, costing the City additional expenses depending on the actual ordinance. Other concerns include where the CPI is set and the inclusion of benefits for part time employees, including but not limited to holiday pay, health and retirement. Caire clarified that a more reliable cost estimate is dependent on the specific criteria that will be proposed by the City. Jermanis clarified that the next steps include developing a position paper (An outline on what the City would and would not like to see in a living wage ordinance, what the City should consider and why). The position paper would ideally be used as a tool for gathering input from others. Young suggested checking with other cities on recent amendments to the ordinances and obtaining any information regarding the pros and cons from having implemented the living wage. 2. Public Comments Dan Walters from the Chamber agreed that the whole process is extremely complex and that the committee needs to identify the social wrong that needs fixing before defining the basic needs. Walters is optimistic that the question "Will the fix be better for the City as a whole" will be answered while the ordinance is being drafted. Liana Molina from the East Bay Alliance for a Sustainable Economy (EBASE) welcomed the Committees' initiative in addressing the complex concerns regarding living wage. Molina indicated that EBASEs' position on a potential living wage ordinance is not intended to include part-time seasonal workers. G:~FINCOMM~2006-b7 Minutes\CITY COUNCIL FINANCE COMMITTEE 12-06-06.doc