INTRODUCED BY COUNCILMEMBER DE LA FUENTE

DRAFT
~ ~ N _ ~
CITY ATTORNEY
ORDINANCE NO. C.M.S.
Oakland Livinl: Wal:e Ordinance
Whereas, the City of Oakland awards many contracts to private
firms to provide services to the public and to City Government; and
Whereas, the City of Oakland provides financial assistance and
funding to others for the purpose of economic development or job growth;
and
Whereas, the City of Oakland has a limited amount of taxpayer
resources to expend; and
Whereas, even in promising economic times, far too many working
Oakland residents and their families live below or near the poverty line;
and
Whereas, the use of taxpayer dollars to promote sustenance and
creation of living wage jobs will increase consumer income, decrease levels
of poverty, invigorate neighborhood businesses and reduce the need for
taxpayer-funded social programs in other areas; and
Whereas, the City of Oakland's payment of prevailing wage rates for
public works projects has been tremendously beneficial for working people
in Oakland and their families, Oakland neighborhoods, and the area
economy; and
Whereas, the experience in the City of Oakland indicates that the
procurement by contract of services has all too often resulted in the
payment by service contractors to their employees of wages at or slightly
above the minimum required by federal and state minimum wage laws.
Such minimal compensation tends to inhibit the quantity and quality of
services r e n d e r ~ d by such employees, to the City and to the public.
Underpaying employees in this way fosters high turnover, absenteeism, and
lackluster performance. Conversely, adequate compensation mitigates
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these undesirable conditions and promotes increased productivity,
efficiency and workplace stability; and
Whereas, the inadequate compensation typically paid today also fails
to provide service employees with resources sufficient to afford life in the
City of Oakland. It is unacceptable that contracting decisions involving the
expenditure of City funds should foster conditions placing a burden on
limited social services. The City, , has an interest in promoting an
employment environment that protects such limited resources; and
Whereas, financial assistance recipients of the City are engaged in
manufacturing or some other line of business that is an integral part of the
City of Oakland economy and such entities often pay wages at or slightly
above the minimum required by federal and state minil11Uill wage laws.
The City as a provider of subsidies to these entities has the same interest in
requiring the payment of a higher minimum level of compensation to
employees of financial assistance recipients as it does of service
contractors; and
Whereas, when the City uses contractors or subsidizes businesses
which do not provide health insurance to their employees, this often
imposes the costs of their medical care on the County, State and Federal
governments. The City has an interest in avoiding such impacts, which the
City finds can only be done if the employer provides health insurance in a
reasonable form. The City finds that an employer contribution for health
benefits of at least $1.25 per hour on average is necessary to provide
employee health care sufficient to avoid imposing the public costs described
above. The City also has an interest in ensuring that persons delivering
City services are healthy, as lack of health care can affect performance and
absenteeism. The City finds that employees are far likelier to be healthy if
their employer provides reasonable health insurance to them and their
dependents. In addition, one of the City's reasons for providing financial
assistance is to promote the public health, an interest served by having
employers receiving such assistance spend a reasonable portion of this
money for health purposes.
Whereas, in requiring the payment of a higher minimum level of
compensation, this chapter benefits these interests;
BE IT ORDAINED BY THE CITY COUNCIL FOR THE CITY OF
OAKLAND:
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The Municipal Code of Oakland is hereby amended by inserting a
new Chapter _, as follows:
Section 1. Title and Purpose
(a) Oakland Living Wage Ordinance
This Ordinance shall be known as the "Oakland Living Wage
Ordinance." The purpose of this ordinance is to require that nothing less
than a prescribed minimum level of compensation (a living wage) be paid
to employees of service contractors of the City and employees of CFARs
Section 2. Definitions
The following definitions shall apply throughout this ordinance:
(a) "Agency" means that subordinate or component entity or
person of the City (such as a department, office, or agency) that is
responsible for solicitation of proposals or bids and responsible for the
adnlinistration of service contracts or financial assistance agreements.
(b) "City" means the City of Oakland and all City agencies,
departments and offices.
(c) "City financial assistance recipient" (CFAR) means any person
who receives from the City financial assistance as contrasted with
generalized financial assistance such as through tax legislation, in an
anlount of $100,000 or more in a 12 month period.
Categories of such assistance include, but are not limited to, grants,
rent subsidies, bond fmancing, financial planning, tax increment financing,
land writedowns, and tax credits. City staff assistance shall not be regarded
as financial assistance for purposes of this article. The forgiveness of a loan
shall be regarded as financial assistance, and a loan provided at below
market interest rate shall be regarded as financial assistance to the extent of
any differential between the amount of the loan and the present value of the
payments thereunder, discounted over the life of the loan by the applicable
federal rate as used in 26 U.S.C. 1274(d), 7872(f).
A tenant or leaseholder of a CFAR who occupies property or uses
equipment or property that is improved or developed as a result of the
assistance awarded to the CFAR and who will employ at least twenty
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employees for each working day in each of twenty or more calendar weeks
in the twelve months after occupying or using said property, shall be
considered a "City financial assistance recipient" for the purposes of this
Ordinance and shall be covered for the same period as the CFAR of which
they are a tenant or leaseholder.
(d) "Contractor" means any person that enters into a service
contract with the City in an amount equal to or greater than $25,000.
(e) "Employee" means any person who is employed (1) as a
service employee of a contractor or subcontractor under the authority of
one or more service contracts and who expends any of his or her time
thereon, including but not limited to: hotel employees, restaurant, food
service or banquet employees; janitorial employees; security guards;
parking attendants; health care employees; gardeners; waste management
employees; and clerical employees; or (2) by a CFAR and who expends at
least half of his or her time on the funded project/program or property
which is the subject of city financial assistance, or (3) by a service
contractor of a CFAR and who expends at least half of his or her time on
the premises of the CFAR and is directly involved with the funded
project/program or property which is the subject of city financial
assistance. Any person who is a managerial, supervisory or confidential
employee is not an employee for purposes of this definition.
(f) "Employer" means any person who is a City financial
assistance recipient, contractor, or subcontractor .
(g) "Person" means any individual, proprietorship, partnership,
joint venture, corporation, limited liability company, trust, association, or
other entity that may employ individuals or enter into contracts.
(h) "Service contract" means (1) a contract let to a contractor by
the City for the furnishing of services, to or for the City, except contracts
where services are incidental to the delivery of products, equipment 0 r
commodities, and that involves an expenditure equal to or greater than
twenty-five thousand dollars ($25,000). or (2) a lease or license under
which services contracts are let by the lessee or licensee. A contract for the
purchase or lease of goods, products, equipment, supplies or other
property is not a "service contract" for the purposes of this definition.
(i) "Subcontractor" means any person who enters into a contract
with (1) a contractor to assist the contractor in performing a service
contract or (2) a CFAR to assist the recipient in performing the work for
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which the assistance is being given or to perform services on the property
which is the subject of city financial assistance. Service contractors, of
CFARs shall not be regarded as subcontractors except to the extent
provided in subsection (3).
(j) "Trainee" means a person enrolled in a job training program
which meets the City of Oakland job training standards.
Section 3. Payment of Minimum Compensation to Employees
(a) Wages
Employers shall pay employees a wage to each employee of no
less than the hourly rates set under the authority of this Ordinance. The
initial rate shall be eight dollars ($8.00) per hour worked with health
benefits, as described in this Ordinance, or otherwise nine dollars and
twenty five cents ($9.25) per hour. Such rate shall be upwardly adjusted
annually, no later than April 1 in proportion to the increase immediately
preceding December 31 over the year earlier level of the Bay Region
Consumer Price Index as published by the Bureau of Labor Statistics, U.S.
Department of Labor, applied to $9.25. The City shall publish a bulletin by
April 1 of each year announcing the adjusted rates, which shall take effect
upon such publication. Said bulletin will be distributed to all City agencies,
departnlents and offices, City contractors and CFAR's upon publication.
The contractor shall provide written notification of the rate adjustments to
each of its employees and to its subcontractors, who shall provide written
notices to each of their employees , if any, and make the necessary payroll
adjustments by July 1.
(b) Compensated Days Off
Employers shall provide at least twelve (12) days off per year
for sick leave, vacation, or personal necessity at the employee's request.
Employees shall accrue one compensated day off per month of full time
employment. Part-time employees shall accrue compensated days off in
increments proportional to that accrued by full-time employees. The
employees shall be eligible to use accrued days off after the first six months
of employment or consistent with company policy, whichever is sooner.
Paid holidays, consistent with established employer policy, may be counted
toward provision of the required 12 compensated days off.
Employers. shall also permit employees to take at least an additional
ten (10) days a year of uncompensated time to be used for sick leave for
the illness of the employee or a member of his or her immediate family
where the employee has exhausted his or her compensated days off for that
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year. This Ordinance does not mandate the accrual from year to year of
uncompensated days off.
(c) Health Benefits
Health benefits required by this Ordinance shall consist of the
paYment of at least one dollar and twenty five cents ($1.25) per hour
towards the provision of health care benefits for employees and their
dependents. Proof of the provision of such benefits must be submitted to
the agency not later than 30 days after execution of the contract to qualify
for the wage rate in Section 3 for employees with health benefits.
Section 4. Duration of Requirements
For CFAR' s, assistance given in an amount equal to or greater than
one hundred thousand dollars ($100,000) in any twelve-month period shall
require compliance with this Ordinance for the life of the project or five
years in the case of assistance given to purchase real property, tangible
property or construct facilities, including but not limited to materials,
equipment, fixtures, merchandise, machinery or the like.
A Service Contractor and subcontractor shall be required to comply
with this Ordinance for the term of the contract.
Section 5. Notifying Employees of their Potential Right to the
Federal Earned Income Credit
Employers shall inform employees making less than twelve dollars
($12.00) per hour of their possible right to the federal Earned Income
Credit ("ElC") under 32 of the Internal Revenue Code of 1954, 26 U.S.C.
32, and shall make available to employees forms informing them about
the ElC and forms required to secure advance ElC payments from the
employer. These forms shall be provided to the eligible employees in
English, Spanish and other languages spoken by a significant number of the
employees within 30 days of emplOYment under the terms of this
Ordinance and as required by the Internal Revenue Code.
Section 6. Contract Review Process and City Reporting and
Record Keeping
(a) The City Manager shall promulgate rules and regulations for
the preparation of bid specifications, contracts and preparation for
contract negotiations.
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(b) The City Manager shall submit periodic reports to the City
Council which shall include the following information at minimum:
(1) A listing and the status of all RFP's and RFQ's, service
contracts and lease agreements executed and financial assistance awarded,
to which this Ordinance applies including the term, dollar amount and the
service performed or assistance provided;
(2) A description of every instance where an exemption or
waiver was granted by action of the City Council
(c) The City Manager shall develop an administrative procedure
and appeal process for determining compliance with this Ordinance.
(1) Regarding the appeal process, it shall be available to
every bidder/proposer who has been deemed noncompliant with this
Ordinance, or who disputes the determination of applicability of this
Ordinance to its business operation which will be involved in the proposed
contract. A contract shall not be executed until there is resolution of the
relevant appeal.
(2) Appeals shall be filed with the City Manager within
seven calendar days of the date of the notice of the City's written
determination of noncompliance and reasons therefor, or written
determination of the applicability of this Ordinance.
(3) The City Manager shall maintain records pertaining to
all complaints, hearings, determinations and findings, and shall submit a
regular report on compliance with this Ordinance no less than annually to
the City Council. Special reports and recommendations on significant issues
of interest to the Council will be submitted as deemed appropriate.
Section 7. Noncompliance Review and Appeal
Contractors, subcontractors and CFAR's who fail to submit
documents, declarations or information required to demonstrate
compliance with this Ordinance shall be deemed nonresponsive and subject
to disqualification.
Section 8. Waivers
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(a) A CFAR who contends it is unable to pay all or part of the
living wage must provide a detailed explanation in writing to the City
Manager who may recommend a waiver to the City Council. The
explanation must set forth the reasons for its inability to comply with the
provisions of this ordinance, including a complete cost accounting for the
proposed work to be performed with the financial assistance sought,
including wages and benefits to be paid all employees, as well as an
itemization of the wage and benefits paid to the five highest paid
individuals employed by the CFAR. The CFAR must also demonstrate that
the waiver will further the interests of the City in creating training
positions which will enable employees to advance into permanent living
wage jobs or better and will not be used to replace or displace existing
positions or employees or to lower the wages of current employees.
(b) The City Council will grant a waiver only upon a finding
and determination that the CFAR has demonstrated economic hardship and
that waiver will further the interests of the City in providing training
positions which will enable employees to advance into permanent living
wage jobs or better. However, no waiver will be granted if the effect of
the waiver is to replace or displace existing positions or employees or to
lower the wages of current employees.
(c) Waivers from the Ordinance are disfavored, and will be
granted only where the balance of competing interests weighs clearly in
favor of granting the waiver. If waivers are to be granted, partial waivers
are favored over blanket waivers. Moreover, any waiver shall be granted
for no more than one year. At the end of the year the CFAR may reapply
for a new waiver which may be granted subject to the same criteria for
granting the initial waiver.
(d) The City Council reserves the right to waive the
requirements of this ordinance upon a finding and determination of the
City Council that waiver is in the best interests of the City, e.g. when the
City has declared an emergency due to natural disasters and needs
immediate services.
Section 9. Exemptions
(a) A recipient shall be exempted from application of this article if
(1) it employs fewer than five employees for each working day in each of
twenty or more calendar weeks in the current or preceding calendar year,
or (2) it obtains a waiver as provided herein.
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(b) An employee who is a trainee in a job training program which
meets the City of Oakland job training standards shall be exempt for the
period of training as specified under the City approved training standards;
or,
(c) An employee who is 21 years of age or younger, employed by a
non-profit corporation for after school or summer employment or as a
trainee for a period not longer than 90 days, shall be exempt.
Section 10. RFP, Contract and Financial Assistance Agreement
Language
All RFP's, City contracts and financial assistance agreements subject
to this Ordinance shall contain the following two paragraphs or
substantially equivalent language:
(a) This contract is subject to the Living Wage Ordinance, of the
Oakland Municipal Code. The Ordinance requires that, unless specific
exemptions apply or a waiver is granted, all employers (as defined) under
service contracts and recipients of City financial assistance, (as defined)
shall provide payment of a minimum wage to employees (as defined) of
$8.00 per hour with health benefits of at least $1.25 per hour or otherwise
$9.25 per hour. Such rate shall be adjusted annually pursuant to the terms
of the Oakland Living Wage Ordinance, of the Oakland Municipal Code.
(b) Under the provisions of the Living Wage Ordinance, the City
shall have the authority, under appropriate circumstances, to terminate this
contract and to seek other remedies as et forth therein, for violations of the
Ordinance.
Section 11. Obligations of Contractors and Financial Assistance
Recipients
(a) All proposed contractors and CFAR's subject to the provisions
of this Ordinance shall submit a completed Declaration of Compliance
form, signed by an authorized representative, along with each proposal.
The completed Declaration of Compliance form shall be made a part of the
executed contract.
(b) Contractors and CFAR' s shall require their subcontractors
and tenants/leaseholders to comply with the provisions of this Ordinance.
Language indicating the subcontractor's or tenants/leaseholders agreement
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DRAFT
REDEVELOPMENT AGENCY
OF THE CITY OF OAKLAND
RESOLUTION No. C.M.S.
A RESOLUTION ADOPTING THE CITY OF OAKLAND'S LIVING
WAGE POLICY AS REDEVELOPMENT AGENCY POLICY
WHEREAS, the City of Oakland is adopting an ordinance, known as the "Oakland
Living Wage Ordinance," requiring among other things that nothing less than a prescribed
minimum level of compensation be paid to employees of service contractors of the City and
employees of City financial assistance recipients; and
WHEREAS, Health and Safety Code section 33071 declares that a fundamental
purpose of redevelopment is to expand employment opportunities for jobless, underemployed,
and low income persons, and to provide an environment for the social, economic, and
psychological growth and well-being of all citizens; and
WHEREAS, adoption of a living wage policy by the Redevelopment Agency will
promote several economic development goals, including increasing consumer income, decreasing
poverty, and invigorating neighborhood businesses, and is consistent with the purposes of
redevelopment set forth in the Community Redevelopment Law; now, therefore, be it
RESOLVED: That the Redevelopment Agency hereby adopts the City's living wage
policy as Agency policy, as such City policy is set forth in the Oakland Living Wage Ordinance (the
"Ordinance"), including any subsequent amendments to said Ordinance and any implementing
regulations adopted by the City Manager; and be it further
RESOLVED: That the Agency living wage policy shall apply to service contractors
of the Agency and recipients of Agency financial assistance, as well as other parties, as set forth
in the Ordinance; and be it further
RESOLVED: That categories of Agency financial assistance covered by the policy
shall include, but not be limited to, grants, land writedowns, rent subsidies, bond financing, tax
increment financing, loan forgiveness, and the provision of on-site improvements by the Agency,
to the extent such assistance meets the thresholds and conditions set forth in the Ordinance; and
be it further
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RESOLVED: That loans provided by the Agency shall be considered financial
assistance if the loan is provided at below-market rates or terms, and the below-market subsidy
attached to such loan is valued at $100,000 or more; and be it further
RESOLVED: That the effective date of this policy shall be July 1, 1998, and shall be
contingent on City adoption of the Ordinance.
IN AGENCY, OAKLAND, CALIFORNIA, , 1998
PASSED BY THE FOLLOWING VOTE:
AYES-
NOES-
ABSENT-
ABSTENTION-
204555
BRUNNER, CHANG, DE LA-FUENTE, MILEY, NADEL, REID, RUSSO, SPEES, AND
CHAIRPERSON HARRIS
ATTEST: -=-==-=-=---=:---=:-:=- _
CEDAFLOYD
Secretary of the Redevelopment Agency
of the City of Oakland
to comply shall be included in the contract between the contractor and
subcontractor or any agreement between a CFAR and tenantslleaseholders.
A copy of such subcontracts or other such agreements shall be submitted to
the City.
(c) Contractors, subcontractors and CFAR' s shall maintain a
listing of the name, address, date of hire, occupation classification, rate of
pay and benefits paid for each of its employees, if any, and submit a copy
of the list to the City by March 31, June 30, September 30, and December
31 of each year the contract is in effect. Failure to provide this list within
five days of the due date will result in a penalty of $500 per day.
Contractors, subcontractors and CFAR's shall maintain payrolls for all
employees and basic records relating thereto and shall preserve them for a
period of three years after termination of their contracts.
(d) Contractors, subcontractors and CFAR's shall give written
notification to each current and new employee, at time of hire, of his or
her rights to receive the benefits under the provisions of this Ordinance.
The notification shall be provided in English, Spanish and other languages
spoken by a significant number of the employees, and shall be posted
prominently in communal areas at the work site. A copy of said
notification shall be forwarded to the City which must include the
following:
(1) Minimunl conlpensation - The initial rates of $8.00 with
health benefits or $9.25 without health benefits will be adjusted annually to
correspond to adjustments, if any. The Living Wage shall be upwardly
adjusted each year no later than April 1 in proportion to the increase at the
immediately preceding December 31 over the year earlier level of the Bay
Region Consumer Price Index as published by the Bureau of Labor
Statistics, U.S. Department of Labor, applied to $9.25.
(2) Health benefits - Proof of the provision of such benefits
shall be submitted to the City not later than 30 days after execution of the
contract to qualify for the wage rate in Section 3. Health benefits shall be
provided to part-time employees as well as full-time employees.
(3) Twelve compensated days off per year for sick leave,
vacation or personal necessity at the employee's request, and ten
uncompensated days off per year for sick leave which shall be made
available to all covered employees as provided in this Ordinance.
Employees shall accrue one compensated day off per month of full time
employment. Part-time employees shall accrue compensated days off in
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increments proportional to that accrued by full-time employees. The
employees shall be eligible to use accrued days off after the first six months
of employment or consistent with company policy, whichever is sooner.
Paid holidays, consistent with established employer policy, may be counted
toward provision of the required 12 compensated days off. Ten
uncompensated days off shall be made available, as needed, for personal or
immediate family illness after the employee has exhausted his or her
accrued compensated days off for that year. This Ordinance does not
mandate the accrual from year to year of uncompensated days off.
(4) Federal Earned Income Credit (EIC) - Forms to inform
employees earning less than $12 per hour of their possible right to EIC and
forms to secure advance EIC payments from the employer shall be
provided to the eligible employees in English, Spanish and other languages
spoken by a significant number of the employees within 30 days of
employment under the subject agreement.
(5) Notice that the employers are required to file a
Declaration of Compliance form as part of the contract with the City and
that the City will make said declarations available for public inspection and
copying during its regular business hours.
(e) Contractors, CFAR's and subcontractors shall permit access to
work sites and relevant payroll records for authorized City representatives
for the purpose of monitoring compliance with this Ordinance,
investigating employee complaints of non-compliance and evaluating the
operation and effects of this Ordinance, including the production for
inspection and copying of its payroll records for any or all of its employees
for the term of the contract or for five years whichever period of
compliance is applicable.
Section 12. Retaliation and Discrimination Barred
Contractors, subcontractors and CFAR's shall not discharge, reduce
the compensation of or otherwise discriminate against any employee for
making a complaint to the City, participating in any of its proceedings,
using any civil remedies to enforce his or her rights, or otherwise asserting
his or her rights under this Ordinance. Contractors, subcontractors and
CFAR's shall also be in compliance with federal law proscribing retaliation
for union organizing.
Section 13. Monitoring, Investigation and Compliance
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The provisions of this Ordinance will augment the City's' normal
and customary procedure for administering its contracts. The City shall
administer the requirements of this Ordinance as follows:
(a) The City Manager shall develop rules and regulations to
review contract documents to insure that relevant language and information
are included in City RFP's, agreements and other relevant documents.
(b) The City Manager shall develop rules and regulations for the
monitoring of the operations of the contractors, subcontractors and
financial assistance recipients to insure compliance including the review,
investigation and resolution of specific concerns or complaints about the
employment practices of a contractor, subcontractor or CFAR relative to
this Ordinance. In such cases, the City will attempt to resolve the problem
within 30 days.
(c) Where a violation of any provision of this Ordinance has been
determined, the contractor will be given a written notice by the City per
the rules and regulations promulgated by the City Manager. Should the
violation continue and/or no resolution is imminent, the City, shall pursue
all available legal remedies, including but not limited to any or all of the
following penalties and relief:
(l) Suspension and/or termination of the contract, subcontract
or financial assistance agreement for cause;
(2) Payback of any or all of the contract or financial assistance
awarded by the City of Oakland;
(3) Deem the contractor or CFAR ineligible for future City
contracts and/or financial assistance until all penalties and restitution have
been paid in full;
(4) A fine payable to the City of Oakland in the sum of $500
for each week for each employee found not to have been paid in
accordance with this Ordinance;
(5) Wage restitution for each affected employee.
(e) The City Attorney shall promulgate procedures for legal
enforcement of the requirements of this Ordinance.
Section 14. Employee Complaint Process
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An employee who alleges violation of any provIsIOn of this
Ordinance may report such acts to the City and, at the employee's
discretion, exhaust available employer internal remedies. The complaint to
the City shall be hanelled as follows:
(1) The employee shall submit to the City a completed complaint
form and copies of all documents supporting the allegation. The City shall
provide the complaint forms in English and Spanish.
(2) The City shall notify the agency and the employer of the
complaint and seek resolution within five days from receipt of the
complaint form. If resolution is not accomplished, the City shall initiate an
investigation and seek legal remedies, if appropriate.
(3) An employee claiming retaliation (such as, termination,
reduction in wages or benefits or adverse changes in working conditions)
for alleging non-compliance with this Ordinance may report the alleged
retaliation in the same manner as the initial complaint.
(4) The complainant's or witness' identity will not be divulged to
the employer without the individual employee's written consent.
Section 15. Private Right of Action
(a) An employee claiming violation of this article may bring an
action in the Municipal Court or Superior Court of the State of California,
as appropriate, against an employer and may be awarded:
(1) For failure to pay the living wage, back pay for each
day during which the violation continued.
(2) For any violation of this Ordinance, including
retaliation for exercising rights provided hereunder, the Court may award
any appropriate remedy at law or equity, including but not limited to
reinstatement, compensatory damages and punitive damages.
(b) The Court shall award reasonable attorney's fees and costs to
an employee who prevails in any such enforcement action.
(c) Notwithstanding any provision of this Code or any other
ordinance to the contrary, no criminal penalties shall attach for any
violation of this article.
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(d) No remedy set forth in this Ordinance is intended to be
exclusive or a prerequisite for asserting a claim for relief to enforce any
rights hereunder in a court of law. This Ordinance shall not be construed
to limit an employee's right to bring a common law cause of action for
wrongful tennination.
Section 16. Collective Bargaining Agreement Supersession
All of the provisions of this Ordinance, or any part hereof, may be
waived in a bona fide collective bargaining agreement, but only if the
wavier is explicitly set forth in such agreement in clear and unambiguous
tenns. Unilateral implementation of tenns and conditions of emploYment
by either party to a collective bargaining relationship shall not constitute,
or be pennitted, as a waiver of all or any part of the provisions of this
Ordinance.
Section 17. Expenditures Covered By This Article
This Ordinance shall apply to the expenditure whether through aid to
financial assistance recipients, service contracts let by its financial
assistance recipients of funds entirely within the City's control and to other
funds, such as federal or state grant funds, where the application of this
Ordinance is consonant with the laws authorizing the City to expend such
other funds.
Section 18. Ordinance Applicable to New Contracts and City
Financial Assistance
The provisions of this Ordinance shall apply to (a) a contract entered
into and financial assistance provided after the effective date of this
Ordinance; (b) a contract amendment consummated after the effective date
of this Ordinance which itself meets the financial threshold requirement of
this Ordinance and (c) supplemental financial assistance provided for after
the effective date of this Ordinance which itself meets the requirements of
this Ordinance.
Section 19. Implementing Regulations
All implementing rules, regulations, and procedures promulgated by
the City Manager or his designee shall be presented to the City Council for
approval within sixty (60) days of adoption of this Ordinance.
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Section 20. Severability
In the event any provision of this ordinance shall be held invalid or
unenforceable by any court of competent jurisdiction, such holding shall
not invalidate or render unenforceable any other provisions hereof.
Section 21. Effective Date
The law shall be effective from the date of July 1, 1998.
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CITY OF OAKLAND
DECLARATION OF COMPLIANCE
Living Wage Ordinance
The Oakland Municipal Code Chapter XX provides that all
employers (except where specifically exempted) under contracts for the
furnishing of services to or for the City and that involve an expenditure
equal to or greater than $25,000 and certain recipients of City financial
assistance that involve receipt of financial assistance equal to or greater
than $100,000 shall comply with all provisions of this Ordinance.
The contractor or CFAR further agrees:
(a) To pay employees a wage no less than the minimum initial
compensation of $8.00 per hour with health benefits, as described, or
otherwise $9.25 per hour, and to provide for the annual increase pursuant
to Section 3;
(b) To provide at least twelve compensated days off per year for
sick leave, vacation or personal necessity at the employee's request, and at
least ten additional days per year of uncompensated time off pursuant to
Section 3;
(c) To inform employees making less than $12 per hour of their
possible right to the federal Earned Income Credit (EIC) and make
available the forms required to secure advance EIC payments from the
employer pursuant to Section 5;
(d) To permit access to work sites for authorized City
representatives to review the operation, payroll and related documents, and
to provide certified copies of the relevant records upon request by the City;
and,
(e) Not to retaliate against any employee claiming non-compliance
with the provisions of this Ordinance and to comply with federal law
prohibiting retaliation for union organizing.
The undersigned authorized representative hereby obligates the
proposer to the above stated conditions under penalty of petjury.
16
Company Narne Signature of Officer or Authorized Representative
Company Address and Phone Number Type or Print Name and Title
Date Bid Number Type of Service
FORCITY USE ONLY
Determination: Bidder is Not Exempt__ Bidder is Exempt__ Date_
Department Representative_
IN COUNCIL, OAKLAND, CALIFORNIA, , 19.__
PASSED BY THE FOLLOWING VOTE:
AYES- BRUNNER, CHANG, DE LA FUENTE, MILEY, NADEL, REID, RUSSO, SPEES, AND
PRESIDENT HARRIS
NOES-
ABSENT-
ABSTENTION
ATTEST: --::-=:::-:--=:--::-:-:=- _
CEDA FLOYD
City Clerk and Clerk of the Council
of the City of Oakland, California
204654
17
JURISDICTIONS THAT HAVE PASSED
LIVING WAGE ORDINANCES
:r
j.
1,:-;
Baltiimore, MD
Minneapolis, MN
Milwaukee, WI
P.ortland, OR
Los Angeles, CA
San Jose, CA
Jersey City, NJ
Des Moines, Iowa
I
. Boston, MA
New York City, NY
St. Paul, MN
Duluth, MN I
,.
New Haven, "CT
\
Gary, IN "-
Santa Clara C'ounty, CA ~ 5 '
3'-;2c{-f'7'
A Living Wage Ordinance... :
Increases the standard of living of impacted
individuals, but may not impact economically
disadvantaged individuals or communities.
The UCLA study provides detailed analysis that points out
that most of the low-wage workers that would be covered
by the Los Angeles ordinance are not living in poverty
households because they are not the sale or even principal
wage earner for their household.
A Living Wage Ordinance...
Involves administrative costs to cities at varying
levels to monitor and enforce the ordinance.
City Administrative Costs
Baltimore $84,000
Los Angeles
Boston
$600,000 (estimated)
NA
A Living Wage Ordinance...
May impact welfare recipientsg
A study by the California Budget Project indicated that in
Alameda County, the ratio of unemployed, AFDC & GA
recipients per job was somewhere between 5 and 9 job seekers
per job.
Another study by the Preamble Center for Public Policy which
covered several Midwestern states indicated that there will be 22
former welfare recipients for every job which meets the federal
poverty guideline for a family of four.
A Living Wage Ordinance...
Has not necessarily deterred businesses from
initiating contracts with cities, nor did it create
increased costs to the City of Baltimore as a result
of bidding price i n c r e a s e s ~
Baltimore's Contract Costs Before and After
a Living Wage Ordinance
Pre-Living I Wage '95 I
I
Wa- e'94
I
..._----"---_.. - ---- ----- --- -
Cost Cost
.._-
----
----_._-_.. _-f--
Cost
\
Bids rrent $.} (constant $) Bids
-
---t---
Total Costs
=:19,368,308 18,860,330 19,326,066
Total
- I ----I
I I ,
Number of 93 76
Bids
-
._-
-
The Baltirnore study shO\f\JS a decline in bidding price costs
from 1994 to 1995 after factoring in inflation.
Oakland Living Wage Campaign
Testimony Before the Oakland City Council
March 24, 1998
Brother Owen Marron, Central Labor Council of Alameda County
Carlos Reynoso, Monte Vista Fine Foods
Rev. T. C. Wilson, African-American Economic Justice Project
Shirley Burnell, Oakland ACORN
Opening
Business Perspective
Faith Perspective
Closing