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1997-0306_ ALL CITY MANAGEMENT SERVICES, INC._Letter from All City Management ALL CITY MANAGEMENT SERVICES, INC. March 6, 1997 Lieutenant Paul Sullivan City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Dear Lieutenant Sullivan: We have reached the time of year when many agencies are formulating their budgets for the coming fiscal year. Unfortunately, recent changes in California's minimum wage laws are having direct and indirect impact on the wages of our School Crossing Guards and consequently our billing rates. Federal and State Laws mandate a series of progressive increases in the minimum wages (i.e. $4.75, $5.00, $5.15, $5.75). These increases began in October of 1996 with minimum wages increasing to $4.75 and end in March of 1998 with minimum wages leveling off at $5.75. This translates into approximately a 35% increase in the minimum wages. Our experience has dictated that we pay at least 20% over the minimum wage level in many areas and up to 75% over the minimum wages in other areas,to recuit and retain a viable workforce. As such, we are faced with the unenviable task of attempting to adjust our wages to accommodate the needs of existing and prospective School Crossing Guards while minimizing the impact of these changes in our billing rates. While we were able to absorb the first two increases this fiscal year without increasing your billing rate,the pressure of the next round of increases will force us to adjust our billing rates for the coming year. More specifically, it will be necessary to increase your hourly billing rate to $11.96 per hour for the 1997-1998 fiscal year. This represents a 4.1%increase over last years hourly rate. I hope you will appreciate the fact that we have absorbed the difference between the percentage of the increase in the new wages and the percentage of the increase in our billing rate. In spite of these changes we will maintain the consistency of our operations and the professionalism of our workforce. Sincerely, Ronald G. Farwell, General Manager All City Management Services, Inc. "The Crossing Guard Company" Southern California Office: 1749 S. La Cienega Blvd. •Los Angeles, CA 90035 • 310-202-8284 FAX 310-202-8325 Northern California Office: 6500 Dublin Blvd., Ste. 216 • Dublin, CA 94568 • 800-540-9290 FAX 510-803-6992