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File Number: 16-231 <br />Councilmember Prola inquired on how the City advises businesses of the increase to the <br />Living Wage rates. <br />Director Baum stated that information of the CPI increase is posted annually on the City's <br />website on July 1st. <br />Budget & Compliance Manager Perini stated that contractors are aware of a possible increase <br />as it is part of the Contractual Services Agreement. <br />City Manager Zapata stated that a notice can be sent to businesses advising of the increase. <br />Councilmember Prola stated the City could do the same with the minimum wage and advise <br />businesses <br />City Manager Zapata assured the Committee that staff would advise all. <br />Councilmember Prola stated by 2017, his hope is that the minimum wage will go up to <br />$12/hour which will bring all up to the federal poverty level. By 2018, for large businesses, <br />using Berkley's firm size rather than establishment size, go up to $15/hour. Small businesses <br />can gradually increase to $15/hour by 2019. City of San Leandro still has to define what is a <br />small business. Prola stated that a report in the LA Times indicated a low wage for the state <br />of California is $13.63/hour. He would like to give people an opportunity to stay in their homes <br />and spend time with their family. <br />Councilmember Lee supports the increase for minimum wage and will support the consensus <br />of the City Council regarding the definition of national franchises. <br />Mayor Cutter indicated a $5 increase over two years is big. What is a large business, <br />businesses over 25 employees? <br />Councilmember Lee stated that the Council must agree as to what a small business is. He <br />also stated there must be segregation between a national franchise business and a local <br />business and we need to increase gradually. <br />Mayor Cutter stated that she has spoken to businesses and would like to know why we are <br />not trying to make any of the businesses happy also. <br />Councilmember Prola stated in metropolitan areas, like ours, the cost of living is much higher <br />with federal poverty level at $12/hour. How do you explain to our people that they have to <br />work two jobs? We need to try and get our residents to at least that level. Smaller local <br />businesses benefit as more money is spent in the community. If we want to have different <br />levels for small and large businesses, he's willing to separate the two but not his preference. <br />Councilmember Lee stated what allows local/small businesses to become a successful <br />business is cost control. <br />Mayor Cutter inquired at what point did the City of Oakland begin to advise the businesses of <br />the minimum wage increase. <br />City of San Leandro Page 6 Printed on 5110/2016 <br />