Council OKs Minimum Wage, Divestment, Check-Cashing Store Limits

Tackling an unusually long agenda Tuesday night, the Berkeley City Council took action on several high-profile issues, including initial approval of a local minimum wage that would match the highest in the nation.

The actions took place at the same meeting where a clash erupted between police and some audience members demanding disclosure of how Berkeley resident Kayla Moore died in police custody on Feb. 12. (A Patch article published Wednesday includes a link to Berkeleyside's coverage with video of the incident.)

Minimum wage

The council approved a proposal by Mayor Tom Bates and Councilmen Jesse Arreguin and Kriss Worthington in favor of establish a citywide minimum wage that matches San Francisco's minimum wage of $10.55, the highest in the United States. It would include an annual cost of living increase subject to review by the labor commission.

The measure directs the City Manager to draft the ordinance and to submit it for review and consideration by the Labor Commission.

Berkeley already has a minimum wage law for businesses that have contracts with the city. It calls for $9.75 plus $1.62 per hour for benefits, or $11.37 without benefits. 

Fossil fuel divestment

The council approved a proposal by Worthington aimed at severing city investments in the fossil fuel industry and urging the state CalPERS retirement fund to do the same. 

The measure asks  the City Manager "to examine the feasibility of divesting all City funds from direct ownership of fossil fuel companies and any commingled funds that include fossil fuel public equities and corporate bonds." It also asks the City Manager to "send a letter to CalPERS requesting they also consider divesting from fossil fuel companies."

The action is tied to the international movement led by 350.org to combat climate change. One of the movement's key campaigns is divestment in fossil fuels by local governments.

Bates had proposed a similar measure on the same agenda. No action was taken on it, according to city spokeswoman Pamela Embry.

Divestment from tobacco and guns

The council also approved another divestment measure, from Bates, directing the City Manager to bring back for council approval a resolution declaring city policy to be "divestment from gun manufacturers and tobacco companies."

The city does not currently have investments tied to tobacco or gun firms. Bates said he wanted such a policy in place for the future to reflect the city's position on socially responsible investing.

Check-cashing store restrictions

Also receiving council approval was a proposal by Councilmen Arreguín, Max Anderson and Darryl Moore asking the city manager to bring back new regulations on check-cashing stores to the council.

Berkeley currently has three check-cashing or "payday loan" businesses that typically charge very high rates of interest for short-term loans.

The measure asks staff to consider either of these two regulatory approaches:

1. prohibiting new check cashing stores in all commercial zones in Berkeley, or
2. increasing the level of discretion required for zoning permits for new check cashing stores to a Use Permit/Public Hearing in all commercial zones.

It also asks staff to consider other regulations recently adopted by San Jose that limit payday-lending enterprises:

1. a distance or separation requirement between payday lending businesses to prevent overconcentration in low-income communities, and
2. a distance requirement separating payday lending businesses from residential areas and other places (i.e., schools, parks, churches, adult uses, or liquor stores). 

Prosecution of George Bush

Failing to secure enough yes votes for passage was a recommendation from the city's Peace & Justice Commission in support of prosecuting former President George Bush and his "co-conspirators" for murder in the deaths of Alameda County residents caused by the Iraq War.

The measure would have asked Alameda County District Attorney Nancy O’Malley to file the charges in state court.

Only three of the nine council members voted to support the item: Anderson, Arreguin and Worthington. The other six abstained, according to Embry.

Maudelle Shirek

A number of audience members came in tribute to former, long-serving City Councilwoman Maudelle Shirek, Berkeleyside reported on its Facebook page. The meeting was adjourned in honor of Shirek, who died at age 101 on April 11.

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