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File Number: 16-149 <br />Jenny of United Food and Commercial Workers, supports Pathway to $15. Jenny works with <br />Wal Mart and advised the Committee that when the City of Oakland raised their minimum <br />wage to $12.50, the two Wal Marts in San Leandro also raised their minimum wage to $12.50. <br />Jenny Lin stated that CPI should be added to the Minimum Wage because cost of milk and <br />other items increases so it makes sense to include CPI to wages. She also provided an <br />explanation as to why there should be no exemptions as all employees are deserving of fair <br />wages. <br />Crystal Gonzales of Davis Street Resource Center stated that many of their clients live in the <br />City and are forced to work outside of the City. If the City increased the minimum wage, they <br />would be able to work in the City and would not be forced to use the services that are <br />provided. <br />Statements were also made by Dave Johnson, Augustin Ramirez, Richard Becker, Robin <br />Torello, and Terry Sandoval <br />City Manager Zapata provided a recap of the meeting. The recap is as follows: staff needs <br />direction as far as the start date and amount/step structure, discussion of CPI adjustment, <br />more conversation around exemptions and sick leave, as well as a roll-out plan with <br />community. Mr. Zapata also stated to the public present that the discussions made at the <br />Committee will be taken to the full City Council for decisions. <br />2.B.Potential Local Revenue Measures for November 2016 Ballot <br />City Manager Zapata provided information to the Committee on the Transient Occupancy Tax, <br />Cannabis Tax, and Business License Rates. Finance Director Baum stated that the City of <br />San Leandro currently has a 10% tax and if we were to increase, it may impact future <br />developers. City Manager Zapata stated that we can look into increases in the TOT to a <br />possible 12% and add Cannabis Tax to fund an Art and Culture component. Vice Mayor <br />Prola agrees with the increase as he stated that currently Oakland charges 14% and many <br />people utilize their hotels. Councilmember Lee also agrees with increasing the TOT however <br />he would like to see a report of occupancy rates and cost at the next Finance Committee <br />meeting. <br />Eric Engelbart provided information on the Cannabis (Gross Receipts Tax). Although the City <br />of San Jose has passed an Ordinance to increase the tax to 10%, they are currently charging <br />7%. There must be decision on how the revenue of the future dispensary should be <br />dedicated. If it is a simple gross receipt tax and goes into the General Fund, it is a majority <br />tax; if it is specific to the Arts and Culture programs, it would be a 2/3 required vote. <br />Councilmember Lee would like to know what the impact will be for patients utilizing the <br />dispensary. City Manager Zapata stated that Harborside has a program for reduced or <br />waived pricing for those that qualify. <br />City Manager would like to initiate a new Business License Tax structure. One of the main <br />areas is with Warehouse businesses. Currently the Business License Tax is based on <br />number of employees. Warehouses are typically big buildings with a low number of <br />employees. Business Development Manager Kay would like to change their business license <br />fee structure to pay on a square footage basis. By increasing the warehouse fees, we may be <br />Page 3 City of San Leandro Printed on 3/15/2016