reads kwoets "it is the policy of city of san francisco to employers be held accountable and the board of supervisors shall study and review the fees ability with state law to enhance the enforcement tool and the city's to combat wage theft and to promote collaboration between all agencies and departments as well as between the city and state and federal labor standards agencies in the enforcement of this chapter. the second maemd 2nd amendment on page 7, line 10. that all city agencies and departments shall cooperate with revocation or suspension from the agency, the agency being the office of labor and standards enforcement. finally page 10, line 3, change the operative date, that it reads

may 1, 2015 and not january 1, 2015. in order to preserve the cpr increase that will preserve the previous minimum wage passed in 2003 that will take place in january. that was just an oversight from us. we have two presentations from our city agencies. the first is the mayor's office. drew is here to present on behalf of the mayor and we have ted eagan, office of the controllers to present the city's economic report. >> thank you supervisor and good afternoon, supervisors, drew from the mayor's office. on behalf of the mayor i wanted to make a few remarks. at his state of the city address. he wanted to promote the wage increase in san francisco. the mayor met with

representative from businesses, non-profit organizations, labor unions and a number of top economist with a goal of setting a minimum wage which is fair to both workers and businesses. i would like to thank all those who participated in this process especially kim for her leadership and supportive of the amendment that supervisor kim has proposed and propose the committee recommend this to the full board. thank you. >>supervisor jane kim: thank you, ms. drew. mr. eagan? >> good afternoon, supervisors. ted eagan from the office of economic analysis. today our office issued and economic impact report on this item and i would like to walk you through findings and conclusions. it will take me one moment to bring up the powerpoint.

>> thank you. as supervisor kim indicated, the minimum wage increase begins on may 2015, at $12. 25 to july 1, 2019, and thereafter receives an annual increase. just to provide an a little bit of background. the minimum wage in san francisco since 1968.

both the federal minimum wage and state minimum wage and then the city's minimum wage. the city did have a large minimum wage increase in 2003 and has had the highest minimum wage in the country since then. however even today's minimum wage would not be as high as the minimum wage wage would have been had it kept up with inflation since 1968. in addition since the state action the gap between the state and city's minimum wage will shrink. the states minimum wage has risen $1968. in addition since the state action the gap between the state and city's minimum wage will shrink. the states minimum wage has risen to $9 an hour to $15. that inflation is set on a regional bases, metropolitan basis and cost in the city for many workers are rising more rapidly. this is a chart that shows median rent paid by san francisco renters

and since 2005, the earliest year we have data on rents annual data. rents increase twice the minimum wage in the city. we believe in our office about a maximumch 60,000 workers may earn the minimum wage today in san francisco, about 11 percent of the workforce. they are heavily concentrated in five industries. food services, retail trade, manufacturing, percent -- personal services as well as ihs. that's workers who are counted in a different industry. in terms of our economic impact analysis, the effect of raising the minimum wage will increase to the extent that it raises wages of workers. it will increase their earnings and their spending in san francisco and to expand the city's economy.

however to the extent that their wages will go up will extend the labor cost of businesses. the net nick impact am -- economic impact is the relative importance. we did look in detail about the economic after effects of the 2004 minimum wage increase in the city. despite the fact that people predicted there would be widespread job loses in the wake of that, there was actually very little job loss in 2004. however, we also believe there was relatively little increase in actual wages in san francisco. we think that the state minimum wage which we rose from was so far below which people were actually making in san francisco that the net effect on wages increases was fairly small. for example, the highway industries in san francisco saw their wages go

up not withstanding the minimum wage. so while we think it's worth pointing out there's a very small employment effect in 2004, we don't think that's going to be the case in the future. this is how we are projecting the increase in the minimum wage as an annual increase will translate into higher wages for workers. so 2015 on a calendar year average the proposed minimum wage would lead to a 10 percent increase in the minimum wage. that will range anywhere from about a 3 percent to 8.7 percent increase for wages for workers in different industries. if you combine it over five 5-year period, the 28 percent increase in minimum wage will translate anywhere between 13 percent and 26 percent increase in average wages for workers in these industries for san francisco. this is not only the minimum wage wage workers in the industry, this is the average wage will go

up by these industries. what does that mean in terms of how much people will make? we project that the average worker will have an additional $125 a week and about $85 a week and you can see the other industries there. these industries are reflecting both the minimum wage increase and inflation that we naturally expect to happen over the time period. in terms of the employment impact, we do expect that there will be an employment impact associated with raising the minimum wage based on economic motion deling. we believe the city would have more jobs by 2019 compared to the jobs without it. that's about 2 percent of employment in the city. about half of these jobs in food services and retail trade. the employment impact is whether this city's economy will be growing during this period and

whether growth is enough to continue the job expansion into city's economy. to do that we need to look at different projections at the city's employment during that time period. we rely on three sources of employment projections. they are all projecting significant amounts of growth from 27,000 to 59,000 new jobs. what that means even the least optimistic employment projection we have will see the city continue to see 25,000 new jobs even if the effect of the new minimum wage comes into effect. we looked into industry by industry and it's a little less clear. the projections we looked at arrest unanimous -- are unanimous like the restaurant industry which will continue to grow even with the minimum wage impact. the personal services are a little less

clear, some are projecting healthy growth and some are not. the overall story about the employment effect the city's economy will improve. the number of the jobs in the city will still be less than the city will expect to have with natural growth over the last 5 years. the only point of caution we would mention is that none of the projections we have looked at are anticipating a recession in the next 5 years. we may have a recession where the city will naturally lose jobs while the city is raising the minimum wage. the city may consider to add flexibility to this proposal to the economic event.

>> that concludes my presentation. i'm happy to take any questions at this time. >>supervisor jane kim: i just wanted to clarify that i heard correctly. in terms of the employment impact, you are saying the most conservative is that the city would grow 12,000 new jobs per year. on the other hand, about 15,000 of the private sector jobs by 2019, again there may be a reduction by that amount. so essentially, are you saying that the loss in the jobs are not necessarily cutting existing jobs, but it could also come from the projected growth that we anticipate even at the most conservative levels. >> the most conservative projections we have is 27,000 new jobs and we predict 15,000 so that leaves 12,000 new

jobs even with this new creation. >> okay. thank you. >> if there are no further questions, thank you very much. >> thank you. >> so, i just wanted to recognize that supervisor david campos wants to make opening statements as well. >>supervisor david campos: thank you supervisor kim and i want to thank this very broad coalition coming together to support the nation's strongest minimum wage law. and i'm very proud to be a part of that coalition. and i want to thank the mayor's office, supervisor kim and her office and all of my colleagues who have come on board to support this item. i also and more importantly want to thank the workers and the community members who have come together to share their stories to underscore why

this is so important. i don't know what the campaign for this effort will look like. and i don't know to the extent there will be opposition. i see the letter from the california restaurant association that is, i guess, predicting the end of the world if this goes forward. and i really hope that they reconsider their stance. but i guess if there is a place where we will be thrilled to have a discussion about minimum wage and the need to increase it, that will be san francisco. so i look forward to add discussion. i want to provide some context because as much as the restaurant industry is trying to anticipate a parade of

horribles. we have a very successful restaurant industry particularly here in san francisco. there was a report by open table which is the leading provider of online restaurant reservations, they released information last year that actually shows that san francisco leads the way in the country even higher than new york in terms of restaurant visits. and you know, and this is not withstanding the fact that not too long ago when san francisco was talking about increasing minimum wage and increasing protections like the universal health care, at that point, this very industry was sayings that the industry would collapse with those things going forward in fact the industry has not collapsed and it's doing better than any place in the country. i wanted to provide context as to why

this is important and i have been saying this in the last few months that we are the wealthiest city in the country and yet we have the fastest growing inequality in the country. let's provide some context. there was a report issued by the san francisco chronicle. you know it's true if the chronicle reports it. it basically talks about one way of measuring income and equality is to go by, i want to make sure i'm pronouncing it correctly. the guinea coefficient, used by world bank to actually measure national economies throughout the world. and the way that this coefficient works is that it looks at a region and the region scores a zero if one 1 person holds all the wealth.

so if there is complete income inequality and it scores a 1 if there is an even distribution of wealth. so using 2012 figures, which is what the coefficient shows about where we are. so, you have on one end of the spectrum, sweden which scores at 0.25. which has a lot of equality. denmark is better than sweden and it's scoring at 0.24. the united states scores at 0.45. so we are not quite sweden. if you look at san francisco it's at 0.508. which means that san francisco is doing worse than rwanda.

the 1 piece of news certainly for me is having been born in guatemala that we are doing better than guatemala which is at 0.559. the fact that we are doing worse than rwanda tells you there is something happening here and that we as a city have an obligation to make sure that we lift every boat and those who are trying to make enough of a wage to live in san francisco who work very hard, that at least we give them a fighting chance. that's what this is really about. it's about making sure that we address the fact that the inequality puts us in the company of developing countries. and i just think that san francisco, the

wealthiest city in san francisco, has to improve that. thank you. [ applause ] >>supervisor jane kim: chair, seeing no further comments, can we open for public comment? thank you. i do want to recognize that while there are many many folks that were involved in make k minimum wage come before the voters today that of course we want to recognize our fast food workers who helped strike across the country and protest bringing $15 an hour to the forefront. when the mayor announced it, it really began the conversation setting that as a minimum. those that were involved in the discussions and negotiations and i do want to recognize mike casey, the head of local to hotel workers, shas an lieu with coalition for fair economy and from the mayor's office and

steve fields, gail gill man, john sackey and annie chung who represented nonprofit workers. i want to call up jose from workers united and workers alliance to present and i will read a number of comment cards. steve fields, annie chung, samantha higgins, don menendez, amy aguilera, antonio diaz, schiavo and connie ford. >> all right. good afternoon supervisors. first of all thank you for your work on this as well as many of the community today and laborers on the minimum wage. part of the workers alliance and

campaign for fair economy who represents restaurant workers, retail workers and domestic workers and laborers in san francisco. we've all seen that san francisco has had a huge economic increase in the tech industry and real estate development, but that by no means is a measure of economic success. what is a measure of economic success is handout how -- san francisco is going to address the needs of our workers in san francisco. right now we are leading the way in economic inequality. but that's not the legacy we want to lead. the legacy we want is is for san francisco to have the highest minimum wage in the country to give our working families and youth a chance to be able to live and thrive in our diverse city. we are really excited about this minimum wage measure as well as the commitment from supervisors and mayor's office to ensure that this minimum wage is

adequately enforced and we look forward to november leading the way to the highest minimum wage in the country. thank you. >>supervisor jane kim: thank you. >> good afternoon, supervisors. steve fields and director of non-profit provider and speaking on behalf of the human services network, the coalition of 100 nonprofit health and human services provider. we are really pleased to see this measure moving forward. i want to especially acknowledge that this city, this jurisdiction maybe the first jurisdiction in the country that from the beginning acknowledged the necessity to speak to the non-profit partners in developing a fair and equitable minimum wage measure. and it's typical of san francisco that it steps for it in all of these issues. we appreciated being in the conversation. we also appreciated the tone of the conversation with community activist labor and the

non-profits all trying to come together to find something that was going to work and move our city forward. so we are very pleased to encourage the committee to move this out with a positive vote to the full board. the non-profit sector. even though the vast majority of our workers meets beyond the minimum wage wage and there is a sector that this is benefit and we hope with the rising tide raises all boats that will help those that are barely make it to see economic growth in their life so families can stay in this city. i want to thank you for the long meetings we had and i look forward to the campaign. >> thank you, mr. fields. >> good afternoon, supervisors. supervisor yee,

supervisors campos and tanning -- tang and kim. i want to truly let you know how grateful we are that all the time in the mayor's office and some of the supervisors we talked to individually specifically today i'm going to address the cop-out for 55 plus older workers. i think many people do not know that for seniors to be eligible for medicare they have to have a work history of 10 years and a full 40 quarters. many people thought that only if i work one or two 2 years when i grow to be 65 i automatically get medicare. this is not so. almost 30 years ago, the elderly, the older workers who do not get medicare will be in a dire situation

particularly when health care is so costly. first we provide training and we hire people over 55 and provide employers, people like us who house housekeepers and they work for 10 plus years, maybe 12. at 65 they qualify for social security. we are not here to ask for a discounted minimum wage rate because we want to pay the older workers lower. we are just here to make sure that older workers get social security and medicare at age 65. thank you very much for listening and for your compassion for our community and help us maintain these 400 plus jobs for this population. thank you. >> thank you, ms. chung. >> chair yee and members of the rules committee. my name is samantha higgins here to represent the golden restaurant association and

express our thoughts about the minimum wage measure. we are appreciative that the mayor is able to reach the minimum wage ballot. as you know the carve out and total compensation approach for minimum wage. we would welcome the reconsideration of these request. at a minimum wage we hope that you might consider the letter we joined seeking one for employers with fewer than 100 full time equivalent employees the january 1, 2015, rate would be $11 and each july thereafter until july 2019 when the rate would expire and these shall apply. 2, the government supported employee rate should be applicable to all employees for temporary or after school summer or trainee positions with youth or young adults under 25 provided this rate

would not be paid to any individual for more than 120 days for any calendar year. no. 3, on or before any year if the employer finds that of the prior year had increased year to year by more than 50 percent, the required first minimum wage adjustment shall be suspended. as you may know restaurants are a low margin endeavor and we are experiencing a boom in the restaurant industry by restaurants who are experiencing a shortage of labor. we want to go on the record by saying we are not opposed to the minimum wage increase, rather the concern is to keep it best affordable. with this mind we ask you to take into consideration as you deliberate the potential change to the minimum wage ordinance. we to believe the wage workers need a raise. >> thank you. i know that we

are to let you know not to sit on the floor. there are a number of seats on the first three rows. please feel free to take those seats. >> speaking spanish. [ spanish speaker ]

>> good afternoon, my name is canned alar i menendez with the progressive workers alliance. i'm here to give you all my testimony. it's time that we do something for our communities. our people are not currently able to pay for their basic needs with the salaries and the wages that are being paid, not even rent for a single room in our city. the rent has become so expensive and folks are making ends meet are scraping pennies together to pay for rent and transportation and food as well. we already have too many people in san francisco sleeping on the streets without a roof over their heads and we do not need anymore. today i got a call from a volunteer at the tennants clinic, i got a call from a woman desperate

because she had just been evicted because she could not pay for the rent. her ssi was only $500 and on top of that the wages she would earn as a minimum wage worker did not support her being able to pay for the rents in either of places she lived and this is a chronic eviction she had been seeing and didn't have support from her family members because they are not able to also pay their rent. it's time now to ensure that our workers in san francisco are able to meet their needs and our wages need to increase to ensure that they are meeting the price of what living in san francisco is costing now. thank you so much. >> thank you, mr. menendez. >> supervisors, my name is connie ford and i'm one of the vice-president's of the