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Minimum Wage II, Sales Tax Increase and much more as Richmond Government ramps up for the election season.

A monthly update from the Richmond Chamber Government Relations Committee. Written by Michelle Blackwell, Chair.

Screen Shot 2014-04-15 at 11.20.46 AMCouncilmember Jim Rogers joined the Chamber at the May Government Relations Committee meeting to give us updates on several issues that are of importance to the business community including the minimum wage, a proposed 1/5 cent sales tax and eminent domain increase.

The minimum wage issues seem to be getting more complicated as the weeks go by.  First the City was considering a ballot measure, then they decided to move forward with an ordinance.  The small business community showed up and expressed their concerns, the ordinance was later pulled and amended.  A first reading of the new amended ordinance is expected in early June.

However, even Rogers has changes to what was agreed on last time around.  Citing pressure from organized labor, Rogers says he wants to change the yet to be read ordinance. In his plan, as of May 20th, the minimum wage would be $13.00 per hour and he would remove the exemptions for minors, tipped employees and non-profits.  Micro businesses with 10 or fewer employees would remain exempt.  Included in the $13 per hour are benefits – so if you provide medical, dental etc. for your employees that will lower the hourly rate.  Stay tuned and plan on going to the Council Meetings in June.

At the City Council retreat in January they all agreed that a 1/5 cent sales tax would go a long way to resolve the longstanding problems with road maintenance.  Trouble is a dedicated tax requires a 2/3 vote – the council is now considering a nonspecific sales tax which only requires a majority vote, with the idea they would use the revenue to fix the roads. The problem is the money would go to the general fund and no council today can predict what a future council will do. This is expected to be on the November ballot and to raise $5 to $6 million a year if passed.  One astute committee member pointed out the City’s deficit is $20 million.  Currently the City sales tax is 9% and this would bring it to 9.5%.  Many other cities in the area are at this rate and others are considering their own sales tax increases for the November ballot.

The eminent domain issue appears to be at a standstill as neither side has enough votes to end it or move it forward.  The election could change this.  Per the City there are about 50 homes in Richmond facing foreclosure.  According to the newspapers the real estate market is on the rebound and the number of underwater mortgages are dropping.  These issues may just make it all moot.

Marin Clean Energy (MCE) also came to the meeting to pitch against Assembly Bill 2145.  Essentially – this bill requires the consumer to opt in if they want to switch to clean energy.  Currently you have to opt out if a municipality adopts clean energy. More on this next month.

While not covered in the committee meeting – I also have heard that Doctors Hospital could close as early as July 25th.  If you currently have them listed as your closest emergency room for employee safety – you may want to revise your safety manual and signage accordingly.

Stay tuned and don’t miss our next committee meeting on June 17th!