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File Number: 16-194 <br />Dean, Jenny Divish, Fred Pecker <br />1.113. Announcements <br />None <br />2. DISCUSSION ITEMS <br />2.A. Minimum Wage Update <br />Councilmember Lee differentiated between Local and National Businesses and is asking for a <br />recommendation for a policy that will work for all. Local businesses include restaurants, <br />supermarkets and minority owned supermarkets. Local businesses are able to keep costs to <br />a minimum and provide quality goods and services to the community. The employees of <br />these local businesses may earn overtime and benefits however the owners may have a more <br />difficult time in paying higher wages without increasing the cost to the community. National <br />businesses are businesses such as WalMart and McDonalds and have the ability to pay <br />higher wages. Councilmember Lee is recommending to staff to look at a two-tiered approach <br />and have a range that Council will approve. <br />Councilmember Prola stated that studies have been done that prove that many small <br />businesses are not hurt by increasing the minimum wage. Councilmember Prola stated that <br />the two-tier should be decided on firm size. He would also like to determine what a "small <br />business" is. Councilmember Prola would like to increase a minimum wage to $12 to begin <br />with in the first year or 20% increase, and in the 2nd year the large businesses can go up to <br />$15 with the small businesses going up gradually over two years. <br />Mayor Cutter would like for a survey to be sent out to local businesses within the month <br />regarding minimum wage which should include the question on how increasing the minimum <br />wage could possibly impact their business. The survey will serve as a notification to the <br />businesses as well. Mayor Cutter would also like a report on the various types of business <br />licenses classifications that are within the City, e.g. size of employees and category. Mayor <br />Cutter also made it clear that Council should have direct input. <br />City Manager Zapata stated that a survey can be done to determine: when the increase would <br />be implemented, if there should be a Consumer Price Index (CPI) adjustment included in <br />Ordinance, sick leave and other benefits to be included and what if any are the exemptions? <br />City Manager Zapata recommends reviewing current Ordinances from cities such as Oakland, <br />Emeryville or Berkeley and using the Ordinance in which Council feels is best, as the basis to <br />construct the survey questions. The other question Mr. Zapata raised was, who will approve <br />the questions and how many languages should the survey be in? <br />Councilmember Prola stated that other cities implemented a higher minimum wage and were <br />able to adjust with minimal to no impact. They adjust by adjusting prices or other means. <br />Councilmember Prola believes survey is a delay and other cities have not done this. He <br />stated that we cannot answer all questions for all businesses. There are too many people <br />who are suffering in this city and there is a need to increase the minimum wage. <br />Councilmember Prola stated if workers have more to spend they will spend more money in <br />City of San Leandro Page 2 Printed on 4111/2016 <br />